Cash & Working CapitalRegional
July 14, 2020

Obstacle Course: Cash Forecasting Challenges in Latin America 

Treasurers in Latin America are coping with the pandemic, M&A activity and working capital needs. Many of the cash management challenges currently facing treasurers in Latin America are being complicated by a variety of factors, including the omnipresent COVID-19 crisis. But also in the mix is recent M&A activity in the region (think integration and its opposite, divestiture), along with difficult financing conditions affecting working capital management. COVID chaos. Latin America is no exception in regions contending with the difficulties brought on…
FXRegional
June 18, 2020

Pandemic Hits Argentina Hard – With Tighter FX Controls in Its Wake

The pandemic has inflicted serious pain on world economies and it could be extra painful for Argentina.   Argentina has faced recurring fiscal crises, and now the global pandemic-induced economic recession has once again pushed the country to the brink of defaulting on its dollar-denominated sovereign debt. For corporates doing business there, including members of NeuGroup’s Latin America Treasury Peer Group (LatAmTPG), the most visible manifestation of the crisis is in the defensive measures the government is taking to preserve FX reserves, i.e.,…
NeuGroup and Latin America
Cash & Working CapitalRegional
June 11, 2020

Latin America Treasury Peer Group Members Discuss Challenges of Managing Cash Amid Crisis

By Joseph Neu Latin America is being hard hit by the COVID-19 virus and the economic aftershocks, both of which formed the backdrop for NeuGroup’s Latin America Treasury Peer Group 2020 H1 virtual meeting. Members discussed the challenges of intercompany lending, the lack of treasury center capabilities and looming Argentina chaos. Here are few key takeaways I wanted to share. Rethinking intercompany funding. One member noted that in most Latin American countries where her company is located, entities are funded…
Cash & Working CapitalRegionalRisk ManagementTreasury Management
June 2, 2020

Founder’s KTAs from NeuGroup for European Treasury Peer Group 2020 H1 Meeting

By Joseph Neu The European Treasury Peer Group 2020 H1 meeting took place last week, sponsored by HSBC. Here are some takeaways that I wanted to share: COVID-19 validates regional treasury centers. HSBC said the case for regional treasury centers has been further validated by the pandemic. In comments on how clients have shown resilience and are preparing for markets to reopen, the bank noted the importance of real-time global exposure information, including a centralized liquidity and risk management framework; but also critical…
RegionalSenior ExecutiveTreasury Management
January 16, 2020

A High Bar: Lowering Corporate Expectations and Under-delivering Successfully

Slower economic growth and tighter consumer credit put pressure on finance chiefs in Asia. The subdued mood among participants at a recent NeuGroup meeting of CFOs in Asia reflected the difficulty many members say they are facing as China’s economic growth slows and business conditions worsen, while expectations for revenue growth at corporate headquarters remain unrealistically high. Managing expectations. The key challenge, then, for some members is managing the expectations of those in the C-Suite who still want 10% revenue…
ComplianceRegionalSenior ExecutiveTax
January 15, 2020

What China’s Individual Income Tax Changes Mean for Corporates, Expats

CFOs with employees in the country need to plan for new residency rules and ensure compliance. The most significant reform of China’s individual income tax (IIT) laws in 38 years has numerous implications for foreign workers and the multinational corporations that employ them. Michelle Zhou, a partner at KPMG, presented many of the critical elements of the changes to a group of CFOs at a recent NeuGroup meeting in Shanghai. Big picture. CFOs—who are responsible for income reporting—need to proactively…
ComplianceRegionalSenior ExecutiveTaxUncategorized
January 15, 2020

China’s Corporate Social Credit System: What Corporates Need to Know and Do Now

The implications and challenges for corporates facing a new world of ratings. Full implementation of China’s corporate social credit system (SCS) is slated for the end of 2020—a reality with huge implications for multinationals doing business in the country. And that means more work for many CFOs and finance teams. CFOs are often in charge of coordinating the final reporting of data provided by multiple areas of the company and ensuring there is no conflicting information. They’re also responsible for…
BankingCapital AllocationCapital MarketsRegionalTreasury Management
January 23, 2019

The Five Cash Management Initiatives Treasurers Should Consider

When it comes to cash management, treasurers must keep their focus on ways to make it more efficient and cost effective. Editor’s note: This article was originally posted on iTreasurer.com on October 09, 2014. The year 2014 has been one focused on efficiency and innovation as treasurers consider outside-the-box strategies for unlocking working capital and improving the tactical aspects of treasury. Major initiatives including SEPA and the internationalization of the renminbi (RMB) have proven to be catalysts for greater global…