What finance chiefs will do if debt ceiling isn't raised
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.
- Share on
Free Training & Resources
Further Reading
Heads up: Accountants will no longer enjoy a 45-day grace period to file financial reports after completing an audit. The Public Company...
The wave of tech fraudsters landing in the slammer rolls on. Elizabeth Holmes of Theranos infamy, crypto hustler Sam Bankman-Fried … ...
Employers located or doing business in the U.S. Virgin Islands may avoid the 2026 FUTA credit reduction flagged earlier this year. The terr...
The Financial Accounting Standards Board (FASB) is taking a scalpel to its still-in-the-works expense reporting standard. If and when the b...
The majority of publicly traded companies say they will continue to voluntarily report greenhouse gas (GHG) emissions that are linked by ma...
A change to U.S. tax policy might save your business hundreds of thousands of dollars — and most companies have no idea it exists.&nb...
