Companies also preparing for Eurozone split –Treasury survey

While investment banks are being urged by regulators to prepare for a re-shaping of the Eurozone, a new report shows companies are also making plans to cope with a collapse of the single currency.

A report from IT2 Treasury Solutions, a treasury management software provider, indicates that 53.5% of treasurers polled expect a Eurozone split within 12 months. However, nearly three quarters (74.2%) are confident their corporate financial policy could shield their companies from the financial consequences.

Nearly 80% say they can accommodate a Euro split with three months’ notice
“The survey shows that treasurers believe, on balance, that the Eurozone will split within the next 12 months,” explained Kevin Grant, CEO of IT2 Treasury Solutions. “They understand the risk, and believe their financial exposures are at present sufficiently managed and understood to enable them to weather the financial consequences of a break-up.”

“The fact that treasurers are so confident in the capacity of existing policy to mitigate such financial exposures is a measure of the strategic insight that corporate treasury can bring in a period of significant uncertainty,” he added.

The survey was conducted anonymously, using a sample of 75 senior treasury professionals at an industry conference in London on the 18th of November. It also addressed the time treasurers felt would be required to accommodate a split in organisational, technological and financial terms, in the event of a ‘disorderly’ exit from the Euro.

IT2 Treasury Solutions, founded in 1982, is located in New York, London and Hong Kong and serves more than 260 financial institutions worldwide, including Bank of China International, LCH.Clearnet, Lloyds/HBOS, Marriott International, Mizuho Trust & Banking Co. and Skandia Insurance Sumitomo Trust & Banking Co. (USA).

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