If Poland is hot, Russia is probably hotter

26 March 2010

2 minute read

If Poland is hot, Russia is probably hotter

Goldman Sachs is opening an office in Poland. And in January Credit Suisse re-established its Polish equity trading business with the aspiration of becoming a, 'leading trader of equities on the Warsaw stock exchange.'

There are definitely jobs to be had in Poland. According to Marek Gul, who heads Credit Suisse's business in Warsaw, the Polish government is in the grips of an 'ambitious plan' to make Warsaw a financial hub. "Investment banks that aren't yet here want to get in," Gul told Bloomberg.

He also revealed that Credit Suisse currently has an empty trading floor in Warsaw, and plans to fill it by June.

Apart from the dreams of becoming a financial hub (Warsaw was noticeably absent from the last ranking of global financial centres), the real draw to Poland appears to be a privatisation programme planned by the Polish government to help finance its $10bn budget deficit.

Nevertheless, emerging markets headhunters are sceptical that there will be vast opportunities to be had in and around Warsaw. "It's a very localised market and most of the appointments are made in London," says one. "Any hiring will be very small."

Instead of Warsaw, the real hive of activity appears to be Moscow. JPMorgan has recently appointed a new head of investment banking, and Credit Suisse's recent extraction of five fixed income professionals from rivals is expected to trigger recriminatory hiring.

However, headhunters caution against getting too excited about Russia either.

"Activity has definitely increased, but we're not seeing a full-fledged expansion. It's more a question of strategic upgrading," says Taru Oksman-Ison at Principal Search

"The market in Russia has warmed up and major international banks are hiring again," says Olga Selivanova of recruiters Morgan Hunt. "But it's really just people moving from one bank to another. Overall, no one's adding headcount," she adds.

AUTHORSarah Butcher

Global Editor

Io
Ionic27
29 March 2010
To Mark,
This all is nothing but a myth. Just as the myth is that borrowes in America are less risky than borrowers anywhere else in the world.
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de
denis_sm
29 March 2010
To Mark
They pay more - simple truth, Plus the tax rate of 13% flat.
While Moscow can be slightly more expensive than london, you're still much better off
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Le
Leo
27 March 2010
To Mark,
Acutally I do not think you are correct. As a 3rd yr associate in a top European IB in London I can tell you that my package is on par, at best, with the package offered by pure Russian players like Renaissance Capital. The Russians are paying it is a fact. I can even tell you that Russian corporates willing to enter the capital markets (ECM and DCM) are recruiting VP level bankers with seven figures package...tax rate is 13% and prices are high but still lower than in London...
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ja
jarema
27 March 2010
this country is alredy bancrupt. it is why poland is hot and easy target to make money.
poland need to in next 5 years at least 300 bln to cover polish pension system.
hot like hell.
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Io
Ionic27
27 March 2010
Well, Britain's external debt is 4 times over its GDP, the US has external debt of nearly 100% of GDP. The total of consumer credit and mortgage outstanding debt is also at staggering level in both countries. As for Russia, the total of its external debt stands at paltry 20%, the total of consumer debt is also lower. So there is still way to go...
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