FINANCE directors expect Greece to get booted out of the eurozone despite Europe's finance ministers approving a further €130bn (£110bn) bailout package for the country.
Greece's cabinet on Friday approved a €100bn debt write-down as part the eurozone rescue plan. However, a straw poll of delegates at the Economist CFO Summit the previous day revealed that finance directors are almost unanimous in their expectation that Greece is on the way out of the euro. Around two thirds of the room expected that another country will follow Greece out the door some point in the future.
However, a Greek exit from the euro should not precipitate an exodus of business from the country. Luca Zaramella, senior vice-president, finance, at Kraft Foods Europe, told delegates that he looks at Greece's net monetary position every day but that it shouldn't impact long-term strategy.
Businesses should not exit countries "from one day to the other" he said, citing the 1997-99 monetary crisis in Argentina as a reason why FDs should take the long view. "The position in Argentina is very good. It is clear in consumption is going up."
Sign up for Financial Director email alerts
Please enter your email below to receive your profile link
Search by job title, salary, or location - we only list senior financial roles
Accountancy Age has partnered with Home Learning College to offer you and your trainees a personalised learning experience with an all inclusive package
Join Financial Director and Infor to discover how migrating your ERP resource to the cloud can have a beneficial impact on your company’s profitability
Send to a friend