The Latin American Treasury Managers’ Peer Group is gearing up for a day and a half of lively discussion this month at its Winter Meeting in Miami. A recap of 2012 treasury accomplishments and 2013 challenges from each member will introduce the meeting. It will proceed with discussions on topics ranging from the finer points of Latin American banking structures to the ever-changing business environments in Venezuela and Argentina.
After introductory exchanges, our sponsor, HSBC, will outline the 2013 economic outlook for Latin America and give an update on their own strategies, capabilities and service offerings in the region. The outlook will include a discussion of LatAm FX rates vs. USD for the next 12-36 months and special circumstances affecting LatAm treasury. There will also be discussion of structured solutions to support or replace inter-company loans, alternative funding or cross-border structured asset swaps, monetizations, and enhancing yields on global liquidity.
Following lunch, we will have an update on members’ supply-chain finance initiatives in the region. This session will take a closer look at the related technology and feature one member’s initiatives in two areas. The first will focus on using customers’ supply-chain finance structures in Brazil to reduce collection times, and the second will focus on integrating an in-house tool with HSBC and SWIFT utilities. There will be further discussion on using SWIFT in LatAm and how to make the best progress with it given limited payment and cash management capabilities in some areas.
Members will also present their views on and experiences with the continuing deterioration of the business environments in Venezuela and Argentina, especially the increasingly capricious FX regulations and risk of currency devaluation. Collection times, access to USD, import payments, royalties and dividends, in addition to a clarification of rules for offshore accounts will be discussed, and perhaps a more optimistic turn will come from members’ thoughts on short-term investment opportunities.
Day two will begin with a closed (members only, member-led) discussion of LatAm banking structures and relationships. Topics will include the various roles of global, regional and local banks in the region, and the consequences of foreign banks withdrawing.
The final session will be open to topics not covered in previous meetings and are likely to include a general updates on Brazil, Colombia’s VAT, short-term investments and liquidity management.
For more information about the LATMPG, please contact [email protected].