ProstoFinance, LLC operations remain steady under present financial crisis

ProstoFinance was established in August, 2005 and is a subsidiary of Societe Generale Group, one of the largest banking groups in the euro-zone.

In order to protect solid positions in the Ukrainian market the company’s management has made decisions to revise the development plans for 2008.

Also the most important company decision is to continue its investment plan and develop new activities.

In spite of the world financial crisis the Société Générale Group shows remarkable resilience. The Group (like the mainstream French banks) has a solid deposit base in France and its dependence on the money markets to fund activities is relatively lower than its fellow players in the USA and the UK.

With the support of the parent company, the Ukrainian company ProstoFinance LLC operates steadily under the present financial crisis and undertakes preventive measures in order to protect solid positions in the Ukrainian market.

The parent company Societe Generale is of the opinion that a “controlled slowdown” would be the best outcome for the company ProstoFinance under political and economic uncertainties in the country. Therefore, in line with the NBU guidelines imposing restrictions on the domestic banking sector, the firm’s management has decided to adjust development plans in order to structure the company’s long term vision.

One of the main solutions is to implement a "temporary halt & go" plan, in particular to reduce current commercial activity temporarily with restoration of normal activity later on.

The key points are reduction of the credit commercial activity, development of additional services and looking-for alternative financial sources.

According to the current view of worldwide and Ukrainian economic situation, all company activity will be managed in order to reduce the risks.

After calm will be bestowed on the international financial scene and stabilization of the Ukrainian market, ProstoFinance company will restart the commercial development. During this period of reduced activity, enhancements across the company will continue to be implemented.

Marc Rey, General Director of ProstoFinance company tells to www.finance.ua about company activity during the financial crisis

How much it was difficult to take decision to implement "temporary halt & go" plan, in particular to reduce current commercial activity?

This can seem a very tough decision, but we have to take into consideration that we are not alone in this situation but the whole market is affected by this global problem.

Moreover, the commercial activity has been reduced temporarily with restoration of normal activity later on.

- How the new development plan will affect company’s strategy?

I would like to underscore that the above decision fully fits with our strategy to combine the two entities ProstoFinance and Ikar-Bank, which we acquired in early 2008 to build our industry share.

When are you planning to realize all new initiatives?

Despite company financial activity depends on worldwide and Ukrainian economic situation, we have started enhancements through the company as well as development of new projects. I am fully confident that with the help of the continued support and cooperation between ProstoFinance and Ikar-Bank, strong corporate spirit and professionalism we will overcome the difficulties and will achieve the goals set by the Societe Generale Group.

How could you allay your clients in such not easy financial situation in Ukraine?

ProstoFinance is a true success story in the Societe Generale Group and thanks to all of our employees we feel confident that we will rebound and pursue our expansion once we have steered clear of the current global market conditions.