Latest Cash Management Articles
Greece’s ongoing negotiations with the Troika of the European Union (EU) have renewed political and economic uncertainty across Europe. Corporate treasurers must ask the question – are the PIIGS (Portugal, Ireland, Italy, Greece and Spain) economies simply too risky?
Economies currently suffer from the paradox of having too much liquidity in certain areas, while having too little in others. Banks, awash with cash, are reluctant to accept deposits; larger corporations are stockpiling cash but running out of options of where to place it; while small and medium-sized enterprises (SMEs) are often unable to access funding due to its cost and scarcity.
Financial professionals can take certain common sense steps to make sure that their cash flow forecast not only has the necessary quality, but also can be completed and validated in an acceptable timespan.
The shifting focus of Target2-Securities (T2S), Europe’s new securities settlement engine, for companies and their treasury departments is towards how you connect your cash - answering the dilemma of a direct cash account, or allowing your provider to manage it for you.