In mid-January; the general meeting of the Czech Treasury Association (ČAT) was held in Tábor. ČAT is a professional organization of Czech experts in the field of corporate treasury and risk management. ČAT was founded in 2001 and its primary mission is to promote and develop professional practice. During its existence; it has become a recognized authority on issues related to the development of corporate treasury in the Czech Republic. ERA Group partner Pavel Sikora gave a presentation to the general meeting participants on effective liquidity management for international groups.
The main topic of the lecture was the replacement of traditional intercompany loans within a group with international off-balance sheet cash pooling; which; in addition to eliminating the cumbersome administration associated with providing intercompany loans; also brings more favourable interest rates on positive and negative balances to all participating entities. A secondary consequence of implementing such a solution is also a reduction in the current number of banks; accounts and credit lines; which further reduces operating costs and the complexity of the group's operational financial management.
