February 21, 2012
Canadian finance professionals feeling the pain of the Euro crisis
TORONTO--Senior Canadian treasury professionals have spoken out about the impact of the euro crisis on their businesses and their concerns about how prepared their banks are to deal with a country exiting the eurozone.
This was the result of the "Treasury Verdict" session, a live audience poll at EuroFinance's 2nd annual conference on Cash, Treasury and Risk Management in Canada. The session was sponsored by J.P. Morgan Treasury Services.
When asked “Is the euro crisis having a negative impact on your business?” 89% of participants answered that it was either having “some impact”, “considerable impact” or “not yet, but I expect it to”. Only 11% selected “no sign of any impact”.
This compares with other polls taken in the last quarter of 2011. 84% of Brazilians, 94% of Chinese and 83% of Indians all reported that they either were or were about to see the negative effects of the crisis.
The poll then asked those Canadian treasurers that were doing business in Europe, how confident they were that their bank was prepared for a euro exit, 61% were not very confident.
When asked about plans for global growth, only 1% said Europe featured in their strategy. Indeed, of those thinking about exiting any region, 35% said that Europe was the most likely.
Katharine Morton, EuroFinance's Managing Editor, comments: "These results are not surprising with the amount of uncertainty in the eurozone at the moment. However, it does raise questions about Europe’s ability to grow itself out of the debt crisis in the future given the lack of confidence shown in so many key markets around the world.”