ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2009
  • © Brno University of Technology, 2002-2009
  • © University of Latvia, 2002-2009
Strategies of the Financial Restructuring of over Regular Hedging against Exchange Risk
Paweł Stępień

ABSTRACT. The paper presents the situation of Polish exporters in the second half of the year 2008 and the first half of 2009. It addresses the problem of “toxic options” which in the micro dimension could have caused serious financial distress (huge losses) for the Polish exporters who hedge themselves, and in the macro dimension show the amounts of cash which have escaped from Poland. The author has presented the background of the problem and made an attempt to provide a solution for the companies which had suffered from that kind of distress, using the methodology of dilution of the liabilities over time thus winning time for the restructuring of their financial situation.

KEYWORDS: hedging, foreign exchange exposure, loan covenants, FX, Poland.

JEL classification: F23, F31, P2.

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Scholarly papers Transformations in Business & Economics
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