Credit through a bank loan is most appropriate during a crisis

Credit through a bank loan is to finance viable business at the time the high bank interest. It commented on BTA Teodora Georgieva, manager of Bulgaria’s Investment Banking Institute / IBI / – Institute, which organizes business training in America and Europe and now in Bulgaria.

A business can be financed in different ways – with their own funds by selling shares to financial / strategic investor through bank credit and others. The most common way of financing business in Bulgaria remains bank lending to companies which used to. The problems appeared when banks increased interest rates and the business had to seek other ways to INANCING said Georgiev.

Expert in financial modeling predicted to fall by about 1-2 percent interest on deposits over the next few months, while interest on loans will remain unchanged. Banks will change interest rates on deposits more quickly, but will keep interest rates on loans because of high risk business activities of companies, says Georgiev. In the medium term, I think there will be a leveling of interest rates in Bulgaria with those in other European Union countries, he added.

It is difficult to say whether the actions of the Bulgarian companies in the past 12-18 months have adequate background to the crisis – there are different ways to counter depending on the size of the company and sector in which it operates, said Teodor Georgiev. According to him the most appropriate solution for companies in times of crisis is to optimize the costs to customers and courting the company to retain quality employees who generate revenues.

Undoubtedly the global crisis affect the Bulgarian economy and business. In my view, however, we see signs of recovery in the west, which will inevitably be felt and to us, told BTA Georgiev. Another positive signal is the results of parliamentary elections and the actions of the new ministers. I think I already feel positive notes in some sectors of Bulgarian economy, he added.

For the first time this year in Bulgaria is conducted training in financial modeling and valuation of companies, organized by the American Institute of Investment Banking Institute. The program started with training in basic subjects such as fundamentals of investment banking and analysis of financial statements, explained the manager of the IBI for Bulgaria. The course presents an integrated modeling cash flow models for mergers and acquisitions of companies and the use of loan capital to finance the purchase of a business. The training we offer in Sofia, is identical to what is done in New York, Boston, London and our other locations in the world interest rate is quite high by Bulgarian specialists who wish to acquire know-how directly from source told Georgiev.

Now is a very appropriate time to enter the financial industry, told BTA Zachary Cohen, Director for Europe of the IBI. In the U.S. a few months experience stage of growth, while in Europe it is expected to begin soon, he said. Now is the time to acquire the skills necessary to be competitive in the financial industry, said the specialist.

The course of IBI is applicable not only to work for leaders in investment banking but also for positions in private and venture capital, hedge funds, analysis of companies, asset management, corporate finance, commercial banks, private bankers and others, Cohen said . When companies start to re-recruit actively at the beginning of 2010, they will look for candidates who are already trained and have the necessary skills and knowledge for the proposed position, he is confident.

To all who want to start a business or looking for new work from IBI experts recommend investing in training and be prepared for the process of interviewing. The process can take a long time to be exhausting and at times the results can be frustrating. But there is no better way to prepare for the career development of investment in further education, told BTA Zachary Cohen.

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BTA