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Slovakia 'offers a low-risk investment'
Foreign investors need to realise that Slovakia offers a low-risk investment compared with some neighbouring states in eastern Europe.
Although growth has fallen in the country, as it has across the rest of Europe, Slovakia is in relatively good financial shape, BusinessWeek reported.
While Germany''s public budget deficit is twice as much as Slovakia''s, BusinessWeek suggested that Slovakia is also faring better than nearby Hungary and Romania.
The pair both relied on mortgages and loans denominated in foreign currencies, which became difficult to pay back when the value of their domestic currency dropped.
Francois Lecavalier, regional director in Bratislava for the European Bank for Reconstruction & Development, told the news provider: "A systemic banking crisis is very unlikely."
However, the report said that Slovakians are concerned that foreign investors will believe that Slovakia is struggling in the wake of the global economic crisis due to the problems seen in the neighbouring state of Latvia.
Government estimates suggest that the growth GDP in Latvia will drop by 18 per cent in 2009.
Figures from the Slovak Statistics Office showed that the Slovakian economy contracted by 5.6 per cent during the first quarter of this year compared with the same period last year.
