Unicredit shuns aside Pekao as it expands East

"Initially, we are planning to open offices in Montenegro, Belarus, and Kazakhstan. The new divisions will strengthen our position in the region and allow to take opportunity of new markets," said UC deputy president responsible for the development in CEE, Erich Hampel. According to earlier plans of the financial group, Pekao was supposed to be responsible for the markets in the region. However, due to the prolonged merger with BPH, this plan might not be accomplished. The Banking Supervisory Commission will most probably fail to issue a permit for the merger of the companies in June, and therefore the process of consolidation will further be postponed until the autumn. In total, the group is present in 16 countries in the region and its main competitor remains Raiffeisen, which has currently 15 banks in the region and plans further expansion. (Puls Biznesu, p. 12) A.K.