THERE are numerous business opportunities for Irish businesses in eastern Minister of State, according to the State at the Department of Finance, Mr Hugh Coveney.

Speaking at an ICC Bank and EU seminar on Investment Opportunities in Eastern Europe, Mr Coveney called on Irish businesses to "grasp all opportunities" for new business initiatives.

"Our economic future and standard of living depend critically on our ability to profitably export both our products and services," he said.

But he warned that Irish firms should get involved in joint ventures to cut down on the risks of a stand alone enterprise.

"Many eastern European companies are moving on a wave of privatisation and commercialisation," he said. "They are typically very large scale enterprises with extensive asset bases but often lacking in the product quality, marketing and distribution skills required to prosper in free markets." Mr Coveney also pointed to the "depth of specialist knowledge and expertise" which Irish firms can benefit from.

These range from joint ventures with the European Bank for Reconstruction and Development (EBRD) to specialist projects funded through the EU.

ICC Bank is the Irish intermediary for the EU in the implementation of joint ventures.

Dr Brian Hillery, executive director at EBRD, told the conference that the weak institutional framework of the region may be a deterrent for potential investors. But he insisted that the opportunities should not be overlooked.

"There are real opportunities for investment and returns can be high," Dr Hillery said.