International business from
Slovakia will be made easier by the country’s adoption of the euro
on 1 January 2009, although lessors are struggling to cope with
software pressures that will occur as a result of the change.
The introduction of the euro will ease
exchange rate difficulties for international business, according to
Alzbeta Riganova, CEO of Leasing Slovenskej Sporitelne.
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To illustrate, she pointed to the fact
that Slovakia began the year with a SKK33,607 per €1, but at the
time of going to press it stood at SKK30,195 per €1.
Lessors have also had to put in place
appropriate software to handle data conversions required once
Slovakia adopts the euro.
“The most important task,” said
Riganova, “will be the data conversion required on the edge of
2008-2009.
“Of course, the bigger a company is in
terms of portfolio and the variety of financial products offered,
the riskier it will be to transfer data correctly when the time
comes.”
Leasing companies have had to adjust
client documentation and contracts to reflect the changes.
However, lessors said the rewards of
entering the euro outweigh the difficulties.
“The advantage of introducing the
euro, for leasing companies and also for lessees, will be the
possibility of real price comparisons within the eurozone,” said
Riganova.
A further benefit will be the use of
only one European inter-bank base (EURIBOR) instead of today’s
combination of EURIBOR and local inter-bank base rate, BRIBOR.
Due to fears of price rises as a
result of the transition from Slovaks crowns to euros, leasing
companies have introduced dual display requirements started in
August 2008.
From 1 January, all instalment
calendars will be in euros, with additional information in SKK,
until the end of 2009.
