A focus on creating an easier environment in which to do business, a sound banking system with high levels of liquidity, and a further round of privitisations show that Kosovo's star is on the rise, its president tells The Banker.

In his spacious office high above Tbilisi, Georgia’s newly elected prime minister – and wealthiest citizen – Bidzina Ivanishvili talks about his plans to boost investment, to mend the relationship with Russia and to manage a difficult political cohabitation.

As the political stand-off in Georgia between the new prime minister and president shows no sign of abating, the country’s economy is showing resilience and its banks are eyeing opportunities to strengthen growth by tapping into the country's unbanked population.

The European Central Bank has helped assuage fears of an imminent eurozone breakup, but sovereign, supranational and agency debt management officials must still contend with ratings downgrades and difficult political and fiscal situations in a number of countries. The Banker hears from a range of EU issuers both inside and outside the eurozone.

Although foreign banks may be reining in finance for their subsidiaries in central and eastern Europe, any transition to local currency bond financing looks likely to be gradual.

As Basel III regulations come into play, banks looking for a quick fix to bulky balance sheets are divesting their trade finance assets, creating a gap in the market that investor groups and other alternative financiers are keen to fill.