Czech exports are undergoing a transformation. Previously dominated by large investment units, today there are more and more smaller, specialized orders. Without smart financing, companies cannot survive abroad. Miroslav Stříbrný, who has over thirty years of experience in banking, now heads the commercial department of the Czech Export Bank. In the interview, he summarises current developments, promising markets and the role of the state in supporting exporters.
Miroslav Stříbrný has worked in the banking sector for over 30 years, currently as Director of Trade and Export Finance at the Czech Export Bank. During his career, he worked in trade and financing at ČSOB, later also at HSBC, worked as Director of Corporate and Structured Banking at SBERBANK CZ and held the position of Senior Vice President at CITIBANK EUROPE, where he gained experience in financing, asset management, market risk, acquisitions and business development.
Czech engineering has traditionally been one of the export drivers. How has the structure of projects financed in this segment changed in recent years? What do companies most often need today and how have their requirements changed compared to the past?
You are right, engineering is a stable and dominant sector of Czech exports. According to data from the Czech Statistical Office, machinery and transport equipment have long accounted for more than 50% of the Czech Republic’s total exports. Before the pandemic, there was a certain slowdown, but today the volume is again at a comparable level. However, its nature has changed and so has the type of projects we finance.
Previously, we often provided so-called “buyer’s credit” – that is, loans to foreign buyers for large-scale investment units such as power plants, cement plants or entire turnkey factories. This model is less common today. Czech companies often lack the capacity or consortium background to compete as EPC contractors in a global market. Instead, they assert themselves as suppliers of individual process units or machines.
We are therefore currently focusing more on investment loans for Czech exporters themselves. Whether it is financing their foreign branches, increasing production capacity or specific project contracts abroad. Typical are deliveries of machines, production lines or complete technologies that have a clearly defined framework and can be efficiently implemented and thus financed and repaid. This model brings greater flexibility and helps companies respond more quickly to market demand.
Which forms of financing are most commonly used for complex technologies and which foreign markets are most projects heading to today?
Foreign partners are interested in complex deliveries, but it is increasingly difficult for Czech companies to succeed in these contracts. There are mainly two reasons. First – we lack strong EPC contractors who would be able to cover the construction of an entire modern factory under one roof. And secondly – competition from abroad, especially from Asia, but also from the USA and Western Europe, is extremely strong today.
For example, Chinese companies offer “soft loans” with interest-free repayments for decades. According to OECD data, Chinese state-backed loans account for up to 31% of all officially supported export credits in developing countries, and are often not bound by transparency rules or environmental standards. Czech or European exporters have almost no chance to face this competition.
For this reason, financing today tends to focus on smaller, specific and feasible supplies. Typically, these are exports of rolling stock, buses, trolleybuses or complete machinery. These are projects that can be efficiently handled contractually and financially.
In terms of territories, we see the greatest potential in Southeast Asia, the Balkans and partly in Africa. For example, Vietnam, Indonesia or the Philippines are among the fastest growing economies in the region, with average GDP growth of over 5% per year. Africa is interesting in terms of demand, but credit complicated. South America is geographically remote and more designed for larger units where it is more difficult to establish a presence. Asia and the Balkans, on the other hand, are markets that are accessible and promising for our exporters and where our bank can help with financing.
In the energy sector, renewable energy and sustainability-oriented solutions are increasingly gaining ground. How much interest do you see in financing these projects and what shift towards green financing are you seeing?
Green financing is a topic that cannot be overlooked today. There is definitely interest in it, but it is often driven more by European regulation than natural demand from companies. If we look at the green bond market, for example, over the last ten years the share of green bonds has risen from 3% to around 10% of all bonds issued. According to the Climate Bonds Initiative, the global volume of green bonds issued will exceed USD 1 trillion in 2023, an all-time high. This is a significant increase.
Green projects that have a clear impact on reducing energy intensity, such as plant upgrades, energy conservation, insulation or water management, continue to be actively financed. In the Czech Republic, green finance accounted for more than 15% of all new lending in industrial investment in 2024.
From my perspective and the reactions of our clients, it is clear that large investment projects in the regulatory environmental area are often postponed. It remains to be seen how the overall situation in Europe will develop and whether the current direction and pace of support for the Green Deal will be maintained. For example, the evolution of emission allowance prices and the availability of EU subsidy titles (e.g. the Modernisation Fund) play a key role in investors’ decision-making.
At the CEB, we can of course support the development of renewable energy sources, including investments by Czech companies in these sources abroad. But we can also support, for example, subcontractors for nuclear power projects.
The Czech Republic has a strong tradition in conventional energy technologies such as turbines or heat exchangers. What is the interest in these products on foreign markets today?
Products such as turbines, heat exchangers or other classical energy technologies still enjoy a good reputation in the world. In many cases, they are used as replacements for older equipment, for example, in refurbishment or technology replacement in Eastern Europe and Asia. Here, Czech manufacturers still have something to offer.
However, the situation is more complicated for completely new projects. Today, our companies do not usually act as main suppliers, but rather as subcontractors in larger international contracts. For example, in the steam turbine sector, the Czech Republic is one of the five largest exporters in the EU, with countries such as India, Turkey and Egypt being the main customers.
Traditional markets such as Russia or Belarus are currently unavailable due to sanctions. And in Asian markets, we face strong Chinese competition, which is pushing prices down and often offering better financing terms. While European companies must comply with OECD rules and ESG standards, Chinese companies often operate with the support of state banks and without these restrictions, allowing them to offer more aggressive pricing.
Nevertheless, Czech companies find opportunities in segments where quality, reliability and long-term service are key – for example, in the modernisation of thermal power plants, cogeneration units or in the nuclear power sector, where the Czech Republic has strong know-how
Rolling stock is one of the top exports of the Czech industry. Which projects have been supported recently and which markets offer the greatest opportunities?
One of the biggest projects in recent years is, for example, an order in Uzbekistan, where over 30 train sets are to be delivered. In addition to rolling stock, there is also great interest in Czech aircraft. For example, the L 410, now manufactured by Aircraft Industries, which is successfully exported to Asia and Africa. Aircraft from Kunovice land in Senegal, for example, where our bank has also supported the construction of airport infrastructure.
Transport equipment, including rolling stock, is a segment that we are very happy to finance. In recent years, we have participated in projects in Latvia, Serbia, Egypt, as well as in Uzbekistan, Kazakhstan and Kyrgyzstan. The markets of particular interest to Czech companies are the Balkans, Central Asia and selected countries in the Middle East.
And we must not forget buses, trolleybuses and trams. For example, Iveco buses from Vysoké Mýto represent a stable export commodity that is commercially strong and therefore does not always require the intervention of the state bank.
In terms of prospective markets, we are seeing a growing demand for environmentally friendly transport – for example, electric units or hybrid vehicles – especially in countries receiving EU funds or development banks. This also creates new opportunities for Czech manufacturers, who can then invest in innovation and digitalisation
Digital solutions such as software, data platforms or production management systems are gaining in importance. How is the approach to financing these often intangible export activities changing?
This is an area of financing that is changing, slowly but inevitably. It is also a challenge for us as a state-owned bank. It is not about traditional tangible supplies that can be easily quantified and priced. Nevertheless, we are already able to finance some of these projects today. It is essential that there is already a specific product or service that has a demonstrable application on the foreign market.
For example, we were also involved in the acquisition financing of a software company operating in Bulgaria, or, as a specific case in point, the financing of Eurowag’s e-platform for European commercial road transport. This company is an example of a successful Czech scale-up that succeeded thanks to a combination of technological innovation and a strong business model.
Openness to these projects is increasing and we are actively monitoring market trends and needs. That is why we also participate in foreign missions. For example, we were recently in the United States for an event focused on research and new technologies. And it was there that we saw where the world is heading. Autonomous logistics, digital infrastructure, electric mobility. We want our exporters and investors to have a chance to succeed in these fields.
According to the European Commission, the digital sector already accounts for more than 5% of the EU’s GDP, with expected growth in AI, IoT and cloud solutions exceeding 10% per year. This puts pressure on the banking sector to adapt its products to intangible activities that have high added value but a different risk profile.
In terms of financing, models such as venture debt, export guarantees for services or expansion financing in the form of equity participation are being applied here, instruments that are gradually making their way into the portfolios of investment banks.
There is a growing need for a stable base in a volatile geopolitical environment. Which types of companies do you think are best prepared and how can the bank help them?
The best-prepared firms are those that are already operating internationally. They have their own branches, production capacities or service facilities on several continents. The model where the manufacturer produces exclusively in the Czech Republic and only exports the finished product is now facing limits. Times have changed. Rising energy prices, labour shortages and geopolitical uncertainty are forcing companies to diversify.
The change in the state export strategy has also been important. Previously, we mainly supported the export of goods, but today the aim is also to support Czech investment abroad. If a company has the ambition to be an international player, it has our support. It is not just about transporting the product, but about market presence and direct connection to end customers.
This approach is also in line with trends within the EU, where the emphasis is on “strategic autonomy ” – the ability of European companies to operate independently of geopolitical pressures. The European Commission has earmarked more than €3 billion in 2024 to support the internationalisation of SMEs
Among the sectors, I would mention the automotive sector, which remains strong despite expectations. 2023 was a record year. According to the Association of the Automotive Industry, exports of vehicles and components increased by 12% year on year, with more than 85% of production going to foreign markets. The defence industry is also notable. Czech arms factories are expanding, consolidating and acquiring foreign brands. This is an area with huge potential.
In this environment, the role of an export bank is very important – not only as a provider of finance, but also as a partner who understands the risks, knows how to manage them and helps companies navigate the complex world of international trade.
What is the role of the Czech Export Bank in relation to the commercial banking sector?
Our ambition is not to compete, but to cooperate. We function as a complementary partner, entering into projects where it is appropriate for a state-owned bank with a Czech credit rating to stand alongside the commercial banking sector.
We cooperate on club or syndicated financing where we complement commercial banks. Our input strengthens the credibility of the project from the perspective of partners and foreign institutions. The advantage for companies is that with us they do not have to change and crumble the relationship with their home bank, we do not bind them to a complex relationship like a traditional bank. We finance a specific project, sticking to our purpose, our specialization and our mission. Companies appreciate this approach. And commercial banks are counting on us more often today.
In your opinion, what are the main challenges that Czech exporters face when implementing projects abroad? And how do you help them overcome these challenges?
One of the main challenges is the growing international competition. Companies from China and other non-European countries often come with offers that are not bound by OECD rules for export financing. These rules, which are followed by OECD member countries, including EU countries, stipulate, for example, a maximum maturity period, minimum interest rates or a minimum level of the buyer’s own resources. Non-European competitors are not bound by these restrictions and can therefore offer significantly more favourable terms, including long-term interest-free loans. This is practically unrealistic for traditional European banks and makes it much more difficult for Czech companies, even if they offer quality and proven products.
Another problem is the instability in some of the target countries. Markets that Czech companies used to export to, such as Ukraine, Russia or Belarus, are now virtually inaccessible due to conflicts or sanctions. Africa offers many opportunities, but often represents a high risk in terms of return on investment. And because we are not a subsidy agency but a bank with responsibility for public funds, we must be cautious.
We help primarily by securing commercial transactions. We provide guarantees for payments, for the quality of supplies, or when participating in foreign tenders. We also support manufacturers in the preparatory phase of projects, where it is important to have a strong partner who can speak the language of finance and foreign policy.
At the same time, we try to be an active part of the so-called “export support ecosystem”, which includes EGAP, CzechTrade, and embassies with their Economic and Scientific Diplomacy. Together we create an environment where Czech exporters have not only financial, but also informational and diplomatic support.
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