Perko: Reducing interest rates is not a solution but a buffer

When will inflation stop – is the 'million dollar' question. In short, at this moment, no one can reliably say, although central banks around the world are seeking models to put an end to inflation. However, many changes in relationships in the global market suggest that even after price increases are halted some significantly increased prices will remain as they are. We are facing a period in which most calculations will need to change. Whether it will be more important to maintain market position or company profit was the topic of the panel 'Export in the circumstances of inflation – what awaits us'.

Boris Popović, from Alarm Automatika, initially stated that it seems to him that the Croatian economy 'is doing well'.

– Competitiveness is increasing, our exports are rising, as well as productivity and investments. Also, costs are rising, but they are rising for everyone. In that sense, we should try to reduce the burden of labor, which will significantly help and make us even more competitive, and it will also help the transition to the euro – said Popović.

Tamara Perko, CEO of HBOR, described the current situation:

– We are going from crisis to crisis. After the pandemic, war came, and the disruptions caused by the pandemic have only deepened at the beginning of the aggression. However, our exports are increasing, and the government is trying to stabilize the situation with its measures – said Perko.

She added that a crisis has arrived in which bankers are not to blame and that the rise in interest rates seems like a minor problem compared to all the others. Regarding the reduction of interest rates, she said that it is not a solution but a buffer.

Ante-Janko Bobetko, from Hamag Bicro, provided several examples of companies they have helped to enter foreign markets. He stated that more than 400 projects worth 500 million kuna have been contracted, concerning export companies.

Srebrenka Saks, from DHL International, said that business in recent years has been challenging and that both cargo air traffic and passenger traffic are still feeling the effects of Covid-19.

– Cargo traffic is limited, but we are investing in our own fleet to protect ourselves from external influences – said Saks, adding that DHL has increased its fleet since the beginning of the pandemic and that the company is turning to new sources of sustainability, primarily sustainable aviation fuel and electric planes that could be used for shorter delivery flights.

Popović reflected on the competitive advantage they have over other companies, which they can thank for the right timing that reflected on warehouse filling but at last year's prices.

– Thanks to good planning, we are now more than 50 percent larger than the next largest in both revenue and profitability – added Popović.

Perko concluded that HBOR has taken on the burden of the crisis on its shoulders and that today, working capital is increasingly in demand, which is growing significantly, so as far as HBOR is concerned, they account for 50 percent of loans while 50 percent are loans for investments.