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Treasury and cash management in the eurozone

Treasury, cashflow and cash management operations need to be fully prepared against instability in the eurozone. On this page you can find a selection of articles, guides and case studies to help you assess and recover from the impact of any further deterioration in the eurozone.

UK Government

The Department for Business, Innovation & Skills and HM Treasury have published guidance for businesses who may be affected by the introduction of capital controls and its impact on contracts, payments and supply chains.

The Government have also announced that HMRC's 'Time to Pay' service will be available to help give breathing space to businesses who are experiencing cash-flow difficulties as a result of events in Greece. HMRC have introduced a Greece Cashflow Helpline for those affected.

Guides and publications

Euro Contingency Update - Greece
Association of Corporate Treasurers, 18 June 2015.
Updated briefing note from the ACT which gives treasury professionals a check list of action points to consider if Greece exits from the Euro.

Greek financial crisis – what next?
Allen & Overy, June 2015
Briefing note from Allen & Overy which includes a section looking at how the imposition of capital controls could affect commercial agreements.

The Eurozone crisis: Corporate briefing
Hogan Lovells, June 2015
Briefing from international law firm Hogan Lovells which highlights the impact on business structure, cash flow and trading operations of potential exits from the Eurozone; in particular, how to identify and deal with redenomination risk. The briefing includes a checklist of key issues to consider when conducting a review of existing contracts and in developing or revising a contract strategy.

Eurozone Bulletin: Capital and Exchange Controls
Linklaters, April 2013.
Bulletin produced by Linklaters in the wake of Cyprus becoming the first eurozone member state to introduce capital controls in March 2013.

Euro contingency planning: Stressed financial markets
Association of Corporate Treasurers (ACT) and Deloitte, December 2011
Briefing paper to help treasurers consider the impact of euro fragmentation on their own organisations. The paper looks at a range of possible outcomes and gives an overview of commercial and business risks, potential treasury impacts and risks to cash management with checkpoints on how to assess your exposures and possible actions.

Eurozone crisis: A treasurer's survival guide
Treasury Today, December 2011
Special report offering practical action points and tactics for treasurers to consider should a country withdraw from the Eurozone. The reports also looks at counterparty risk and bank relationships and managing supply chain exposures.

Online articles

Greek Tragedy
Baltoumas, Christos.
The Treasurer, June 2015. p.34-35
A treasurer in Greece explains the challenges the current situation presents when making decisions on cash and liquidity management inside the country.

The domino effect
Rao, S.
The Treasurer, July/August 2012. p.38-39.
The author discusses how treasurers should prepare themselves for a deepening of the eurozone crisis, including a possible break-up of the currency union. At present, treasurers are in a vulnerable position. However, with an established, prudent risk framework, they can be proactive in identifying and mitigating potential risks.

Grow or groan
Watters, P.
The Treasurer, February 2012
Eurozone risks will weigh on corporates unless they can find global growth. This article looks at the expected impact of a volatile funding environment on corporates and smaller companies.

Weighing FX options
Brace, Rebecca
Treasury & Risk; February 2012, Vol. 22 Issue 2, p.32-35
The article discusses how to anticipate and handle currency volatility in the eurozone. Some treasurers in Europe have adjusted their foreign exchange (FX) hedging activities to suit the economic conditions.

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