COMPLEXCOUNTRIES
The Global Treasury Intelligence Network
Banking in Russia
Banking in Russia
Nov 5th 2020
Participants, comprising senior treasurers from European and US Multinationals give their perspectives on their banking arrangements in Russia.
Banks mentioned in this report include: BNP Paribas, Citi, Commerzbank, DTB, HSBC, ING, Raiffeisen, RosBank (Soc Gen), Sberbank, UniCredit.
Below are the key findings in expert moderator Damian Glendinning’s commentary. If you would like a copy of the full report, please contact us.
Premium members can and subscribers can download the full report here.
using Fintech to solve a real problem
Rethink Treasury III
In the third part of our rethink treasury series, Damian Glendinning interviewed Matt Wreford, CEO of Demica to demonstrate practical examples of how his company has used APIs, workflow management and several other new technologies to help customers change how they work, while still using the existing IT systems.
The session was recorded, but followed by a confidential Q&A with our senior treasurer panel who then gave their reactions after Matt had ‘left the room’.
Banking in India
Banking in India
Oct 15th 2020
The peer groups comprised 8 senior treasurers from Asia, Europe and the Middle East comparing their experiences with banking in the country.
Banks mentioned in this report are: Citi, HSBC, JP Morgan.
If you would like a copy of the full report, please get in touch.
Premium members can download the full report here
Here is expert chair Damian Glendinning’s commentary
Approaches to BANK RELATIONSHIP MANAGEMENT (BRM)
Approaches to BRM
Oct 1st 2020
This report combines two sessions with of peer discussion with participation from 18 senior treasurers from Asia, Europe and USA comparing their approaches to Bank Relationship Management.
The sessions were expert chaired by Damian Glendinning’s whose commentary appears below.
If you would like a copy of the full report, please get in touch.
Premium members can and subscribers can download the full report here.
FX Global Code of Conduct -why should a corporate sign?
This session explored the benefits of a corporate signing the FX Global Code of Conduct. It took place on 14th May 2019. The session was chaired by Damian Glendinning.
- A presentation from T Julian Gladwyn and Nick Downes of Axiom Global Advisors to a panel of senior corporate treasurers
- A Q&A between the panel and the Axiom team
- A peer group discussion (held under the Chatham House Rule, Axiom not included)
Post M&A Treasury Integration
Post M&A Treasury Integration
Call date: 3rd Mar 2020
This call was requested by a member whose company was in the midst of a significant acquisition. They wished to benchmark their approach with a selected panel of peers. The participants in this call all had significant experience which they shared generously.
The call was chaired by Damian Glendinning, whose commentary appears below.
If you would like a copy of this report, please get in touch.
Measuring Treasury Performance – Key KPIs
Measuring Treasury Performance
Call date: 2nd Jul 2020
We invited a panel of senior members to discuss how treasury performance is measured.
- How do you judge Treasury performance?
- Which processes benefit from measurement?
- How do you communicate uncertainty?
The call was expert chaired by Damian Glendinning, whose commentary appears below.
Please contact us if you would like a copy of the full report (8 pages)
Premium members can and subscribers can download the full report here.
Cash repatriation from Turkey
Participants described their company’s current approach and recent experiences in repatriating cash to HQ from TURKEY and answered each others’ questions.
Cash Repatriation from Turkey
Call date: 17th Jun 2020
The call was chaired by Arnaud Francq, the key discussion details are below.
If you would like a copy of this report, please get in touch.
Key areas of discussion
With the recent depreciation of TRY, accessing hard currency in Turkey is getting much more difficult. Regulations can change arbitrarily and are often unclear. Participants reported conflicting opinions from different banks and the same banks give different opinions to different people. It pays to get multiple opinions before making a decision. Participants rely on their local teams. In this discussion the topics covered included:
- Accessing hard currency
- Cross border pooling
- Offshore accounts
- Dividends
- Cross border invoices
- Cashless Netting
- Servicing Turkey via offshore payment factory
- Funding
Cash Repatriation from Russia
Cash Repatriation from Russia
Call date: 16th Jun 2020
Participants described their company’s current approach and recent experiences with repatriating cash from RUSSIA and answered each others’ questions.
The call was chaired by Damian Glendinning, whose commentary appears below.
If you would like a copy of this report, please get in touch.
Chair’s commentary
A good and lively session – Russia remains a place where doing business is seldom boring.The main themes:Russia has many complex regulations, which keep changing.
- Most participants have excellent local finance teams who keep on top of the regulatory issues – things work well if you do this.
- The FX rate is highly volatile. Most participants hedge, with a general preference for offshore, though onshore also works, if you have the local team.
- Hedging policies vary, especially for items such as intercompany loans and dividends.
- Sanctions compliance drives a significant extra workload and adds yet more complexity – and the situation around Crimea is even more challenging.
- The tax authorities are very aggressive, but things get resolved quickly, provided all the documentation is in order. Getting approval to pay royalties and some cross border intercompany services can prove difficult, though
- .Intercompany loans can be made into and out of Russia, including cash pooling – though, as usual, there is bureaucracy attached. Most of the participants use one form or other of intercompany loan, in both directions, for cash management.
- Most participants use dividends as a way of repatriating cash: there is a cost in terms of withholding tax, but it gets away from the bureaucracy attached to intercompany loans.
Bottom line: most, if not all, participants have healthy businesses in Russia. It is a challenging environment, and one which keeps changing – but, if you make the effort and have a good local team, these challenges can be managed.
Cash Repatriation from Nigeria
Cash Repatriation from Nigeria
Call date: 23rd Jun 2020
Treasurers describe their company’s
current approach and recent experiences in repatriating cash to HQ from NIGERIA and answered each others’ questions.
The call was chaired by Arnaud Francq, the key discussion details are below.
If you would like a copy of this report, please get in touch.
Key take aways
- It’s important to have a good local team to process regulatory documentation etc.
- Local investment options are limited, most participants use their international relationship banks
- for cash deposits even if they can get higher rates from local banks.
- FX shortage is experienced by all players, but limited amounts can be found from currency
- brokers at increased spread
- Further depreciation of the NGN is expected even if the oil price recovers.
- Preparation for dividends is onerous and it can take a year or more to prepare and original paper
- documents are required
- Preparing royalty fees takes 6 – 9 months and is less onerous provided all the underlying
- agreements are in place
