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South Africa
Thursday, February 21, 2013 - 15:51
Basel III catch

Senior treasury and finance professionals in South Africa believe they are likely to find access to funding harder than many of their international peers, as the unintended consequences of Basel III draw nearer. This was the key finding of the "Treasury Verdict" session taken by a live audience poll of senior treasury and finance professionals at EuroFinance’s 7th annual conference on Treasury, Risk and Cash Management in Southern Africa, held in Johannesburg late November. The session was sponsored by J.P. Morgan Treasury Services.

Some 41% of those polled revealed that they will have problems accessing term funding at some point in the next two years. Of those expecting problems, 12% predict this will be in the next 3-6 months, 42% in the next 12 months, and 46% in the next 24 months. The total of 41% expecting problems puts South Africa at the top of the peer league table on this issue. In other recent Treasury Verdict sessions, 40% of treasurers in India expected similar problems. Europe (20%) and Brazil (27%) are less concerned with access to term funding.
Comments Katharine Morton, EuroFinance's Managing Editor, "South Africa's finance professionals are preparing themselves for funding to become a serious issue in the near future. With regulations such as Basel III having a major impact on the cost of funding, longer term credit lines may cease to be viable for many organisations. It is certainly time for treasurers to be thinking about the alternative financing options that exist."

The survey

The EuroFinance survey uses an electronic voting system, respondents answered questions on 10 key subjects on the future of the global economy. The results were then discussed by an expert panel, including corporate treasurers’ responsibilities, which include foreign exchange and cash management within their companies. EuroFinance is an Economist Group business, and is the leading global provider of conferences, training and research on cash management, treasury and risk. Running more than 50 events worldwide, EuroFinance enables treasurers and CFOs to exchange innovative strategies, best practice and expert opinion. EuroFinance has a unique insight into the trends and developments in cash management and treasury, and an unrivalled global viewpoint.

Copyright © Insurance Times and Investments® Vol:26.1 1st January, 2013
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