LATIN TRADE GROUP I 2525 PONCE DE LEON BOULEVARD, SUITE 300, CORAL GABLES, FLORIDA 33134 I TEL: 305-749-0880 SERIES SPONSOR: REGIONAL SPONSOR: IN ASSOCIATION WITH: BUENOS AIRES, ARGENTINA SUMMARY: APRIL 12, 2013 Page 1 of 4 The LT CFO Forums are invitation-only events that offer CFOs, finance directors, treasurers and controllers from various industries in Latin America the opportunity to participate in high-level peer group discussions and to interact in a private setting. What We Learned Keynote Address: Economic Perspectives in Argentina: Regaining Opportunities Speakers: Roberto Lavagna, Former Minister of Economy and Production of Argentina (2002-2005), and 2003 BRAVO Innovative Leader of the Year Key Points: » Country and regional economic growth estimates » Key political events and considerations » Internal and external forces impacting market activity Forecasting Results Speakers: Darío Bursztein, Chief Financial Officer, Xerox Luis Emilio Fortou, Global Commercial Expansion Team, Latin America and Caribbean Region, Visa Inc. Key Points: » Practical methods to predict cash flows » Analytical tools and processes » Leveraging information systems for increased reporting & visibility CFO Workshop Speakers: Claudio Di Nunzio, Finance Director, Americas International Region, Avaya Key Points: » Stewardship: Compliance, controls and risk management Lunch Presentation: Argentina: Current Political Situation and Perspectives Speaker: Sergio Berensztein, President, Poliarquía Consultores Event Moderator: Mark Ludwig, LT CFO Contributing Editor, Latin Trade, and Principal, Variant Advisors
Transcript
LATIN TRADE GROUP I 2525 PONCE DE LEON BOULEVARD, SUITE 300, CORAL GABLES, FLORIDA 33134 I TEL: 305-749-0880
SERIES SPONSOR: REGIONAL SPONSOR:IN ASSOCIATION WITH:
BUENOS AIRES, ARGENTINASUMMARY: APRIL 12, 2013
Page 1 of 4
The LT CFO Forums are invitation-only events that offer CFOs, finance directors, treasurers and controllers from various industries in Latin America the opportunity to participate in high-level peer group discussions and to interact in a private setting.
What We LearnedKeynote Address:Economic Perspectives in Argentina: Regaining Opportunities Speakers: Roberto Lavagna, Former Minister of Economy and Production of Argentina (2002-2005), and 2003 BRAVO Innovative Leader of the Year
Key Points:
» Country and regional economic growth estimates» Key political events and considerations» Internal and external forces impacting market
Luis Emilio Fortou, Global Commercial Expansion Team, Latin America and Caribbean Region, Visa Inc.
Key Points:
» Practical methods to predict cash flows» Analytical tools and processes» Leveraging information systems for increased
reporting & visibility
CFO WorkshopSpeakers: Claudio Di Nunzio, Finance Director, Americas International Region, Avaya
Key Points: » Stewardship: Compliance, controls and risk management
Lunch Presentation: Argentina: Current Political Situation and PerspectivesSpeaker: Sergio Berensztein, President, Poliarquía Consultores
Event Moderator: Mark Ludwig, LT CFO Contributing Editor, Latin Trade, and Principal, Variant Advisors
LATIN TRADE GROUP I 2525 PONCE DE LEON BOULEVARD, SUITE 300, CORAL GABLES, FLORIDA 33134 I TEL: 305-749-0880
SERIES SPONSOR: REGIONAL SPONSOR:IN ASSOCIATION WITH:
BUENOS AIRES, ARGENTINASUMMARY: APRIL 12, 2013
Solid commodity prices and ample global liquidity are adding tailwind to Latin American economies, but not all are taking advantage of this situation, Former Argentine Economy Minister Roberto Lavagna told regional corporate leaders who participated in a CFO Forum in April in Buenos Aires.
While countries like Colombia, Peru, Chile, Uruguay, and Paraguay have been profiting from this state of affairs, others such as Venezuela and Argentina have chosen a populist approach that has already failed in the past, he told the meeting. The latter “are implementing wealth redistribution policies, but high inflation is quickly eating up any income improvement.” Market unfriendly policies, including corporate nationalizations and forex and capital repatriation controls, are also scaring off investors, Lavagna said.
Yet, whereas the populist path is putting Argentina and Venezuela on a collision course with the markets, doomsayers who predict a quick implosion could be wrong. “These things tend to last longer than one thinks,” he warned.
Besides, there are risks on the other side of the aisle too—overvalued local currencies, loss of competitiveness, and how to manage an excess of capital inflow, with an additional challenge looming in the future: how to handle the situation when the winds change
direction and capitals take flight leaving behind a financial vacuum that may push up domestic interest rates.
High commodity prices can have their downside as well, leading Latin economies to revert to agriculture-based economics. “Even giant Brazil is going back to agrifood production,” a feature that is raising eyebrows among its industrial community, Lavagna said.
Nations that have adopted a market approach are not immune to inflation either. While countries like Brazil have managed to pull millions of people out of poverty, any spike in the cost of living could throw them right back under the poverty line, he warned. “Brazil’s concern about inflation is not just economic, but socio-political as well.”
And in nations where public spending has grown and there is a strong state presence, crony capitalism tends to play a central role. “We need more transparency and more efficiency in the use of public resources,” Lavagna cautioned.
However, no matter which way a country’s economy has gone, all corporations large and small need to keep costs at bay and hold their guard up in terms of compliance with all legal aspects of their business, CFOs agreed.
Page 2 of 4
LATIN TRADE GROUP I 2525 PONCE DE LEON BOULEVARD, SUITE 300, CORAL GABLES, FLORIDA 33134 I TEL: 305-749-0880
SERIES SPONSOR: REGIONAL SPONSOR:IN ASSOCIATION WITH:
BUENOS AIRES, ARGENTINASUMMARY: APRIL 12, 2013
Xerox Argentina’s CFO Dario Burstein said his company can come to the rescue, helping others by providing document digitalization solutions that have the ability of bringing down the data storage and handling budget by up to 70 percent.
Ignacio Sanz of BBVA sees digitalization going hand in hand with outsourcing to help trim down costs in the always challenging Latin American business environment. In the past, he would think twice about cloud computing. “Now we upload the emails of our 120,000 employees around the world,” he stressed. “Digitalization and outsourcing—this
is the future.”
Claudio di Nunzio, regional finance director at business communications and collaboration systems provider Avaya, put a CFO’s job in soccer terms: he is the one in charge of setting up a solid defense line so that the team can play an aggressive game while their back is well covered. “CFOs must play a key role creating a controlled environment,” making sure that not only their own company but other firms it deals with are in full compliance with all legal aspects of conducting business, he stressed.
Sergio Berensztein, President, Poliarquía Consultores; Mark Ludwig, Contributing Editor, LT CFO Events, Latin Trade Group; Luis Emilio Fortou, Global Commercial
Expansion Team, Latin America and Caribbean Region, Visa Inc.; Claudio Fiorillo, Socio Director Financial Services Industry, Deloitte & Co. SRL
Rubén Ramirez, Director-Representative in Argentina, CAF-Development Bank of Latin
America; Félix El Idd, Presidente, Datarisk GlobalGabriela Rovere,
