Funding risk

August 2012

Q and A

What might be the funding risk?

A member state exit is likely to result in increased liquidity problems and less available funding as financial institutions manage their exposure to the Eurozone. Businesses may find that traditional sources of finance (loans, bonds etc) are less easy to obtain or raise.

Intra group funding may also be problematic if there are intra-company loans to subsidiaries located in risk member states and those subsidiaries are having difficulty meeting their payment obligations under such loans.

Businesses may need to give some thought as to how to manage possible funding shortfalls. Those businesses with large cash reserves and assets will obviously be better placed to manage any funding shortfall in the short to medium term.

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  • Publications

    Eurozone risk matrix and Q&A

    We have identified seventeen areas of potential risk which may arise should a weaker economy exit the Eurozone.

    April 2013

    Scenario risk

    The scenario risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Legislation risk

    The legislation risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Redenomination risk

    What is the lex monetae principle? What is the problem with applying the lex monetae principle to euro denominated contracts?

    August 2012

    Contracts risk

    The contracts risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Counter-party risk

    The counter-party risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Sovereign state risk

    The sovereign state risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    March 2013

    Currency mismatch risk

    The currency mismatch risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Asset and property risk

    The asset and property risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    April 2013

    Exchange and capital control risk

    The exchange and capital control risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    April 2013

    Revenue risk

    The revenue risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Share capital risk

    The share capital risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Employee risk

    The employee risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Group company/subsidiary risk

    The group company/subsidiary risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Enforcement risk

    The enforcement risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Litigation risk

    The litigation risk section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

    Risk management

    The risk management  section is part of a Eurozone risk matrix and Q&A which looks at potential risks for businesses on a member state exit.

    August 2012

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