By nature, CFOs are a cautious group — so it’s no surprise many have a plan for what to do if Congress doesn’t raise the debt ceiling.
Almost 50% of finance chiefs plan to take action if government defaults on its debt, according to a recent study by the Association of Finance Professionals (AFP).
On Aug. 2, the U.S. government will run out of funds and default on its debt unless Congress raises the debt ceiling.
So what type of actions will CFOs take? The AFP study found that more than 50% of finance chiefs will take at least one of the following measures: reducing capital expenditures, lengthening payment cycles to vendors, or cutting staff and hiring plan.
Another 28% of CFOs said they wouldn’t buy any more U.S. Treasury securities if the feds default.
Readers, do your company have any contingency plans in the event the debt ceiling doesn’t get raised? Let us know in the Comments section.