The Luxembourg Association of Corporate Treasurers (ATEL) held its second annual conference on 16 September at the Sofitel Hotel in Kirchberg. The event was organised in collaboration with PwC Luxembourg and the European Investment Bank (EIB). More than 200 Luxembourg-based financial-sector professionals attended the conference to find out how the treasury function is evolving and how it fits into the organisation of a company.

During the conference, various speakers addressed the main topics affecting corporate treasurers. Both the treasury function and treasurers’ priorities are constantly changing. The profession is facing many major challenges in technological, regulatory and economic areas. The issues discussed were managing working capital; the new eBAM-type (Electronic Bank Account Management) SWIFT messages; managing powers of delegation; and optimising supply-chain finance.

Two workshops were dedicated to the EIB setting up and launching the activities of the European Fund for Strategic Investments (EFSI), which is part of the Investment Plan for Europe (the “Juncker Plan”). The aim of the Plan is to boost Europe’s economy and strengthen its competitiveness on the global stage, most importantly by reducing the investment deficit that Europe is still experiencing. The aim of the EIB’s idea, which was presented to ATEL’s members, is to offer financing solutions allowing deficiencies on the market to be addressed and putting investors in a stronger position to be able to take risks.

A single structure for centralising capital flows
For many businesses and multinationals, centralising treasury services has proven to be more effective than having a dedicated department in each subsidiary. This approach increases their borrowing capacity by allocating cash assets efficiently. Centralisation strengthens companies’ solvency and helps improve investment conditions when cash flows are positive.

“The treasury function has been at the centre of attention since 2008. Negative interest rates, changes in the banking landscape and volatile markets are just a few examples that strengthen the case for the treasury playing a key role in any business,” says Philippe Förster, Director at PwC Luxembourg.

“Domiciling a single structure in Luxembourg to centralise its capital flows brings with it many advantages: a central location in Europe, renowned expertise, a multilingual environment and access to the stock markets,” concludes François Masquelier, President of ATEL.

This second ATEL conference, whose main partners were PwC and the EIB, was also sponsored by ING, Kyriba, Equity, PrimeRevenue and Thomson Reuters.