The UK's Association of Corporate Treasurers (ACT) has updated its Euro Contingency Planning guidelines, which give a list of actions to consider in the event of Greece defaulting on its debt repayments or, in a worst case scenario, exiting the euro.

The briefing note supplements guidelines written by the ACT and Deloitte in 2011 and this update, on 16 June 2015, is in light of recent developments relating to the Greece goverment's talks with European finance ministers and the IMF.

If Greece does leave the euro, this would present a number of operational and financial risks to corporate treasurers, according to the briefing note. It goes on to state: “Changes in foreign exchange parities arising from Greece ceasing to utilise the euro are likely to lead to increased foreign exchange exposures and strained working capital cycles. For those corporates with businesses in Greece, or who buy and sell goods in Greece, treasury functions will need effective communication with local sales and procurement staff so that mitigation plans are in place on day one.”

The checklist of key actions covers the areas of:

• cash and cash management;
• debt and credit facilities;
• credit risk; and
• foreign exchange and derivatives.

Overall, some of the advice given to corporate treasurers includes being up-to-date on their cash positions held at Greek banks; to identify earnings in Greece that currently service euro debt; to assess the exposure of money market fund investments to Greece; and assess the company's actual euro exposure to Greece. More advice and action plans are included in the ACT's guidelines.