The interdependence of financial institutions, markets and payments systems, and the overall dependence by firms on the readiness of the public infrastructure, make it very important for firms and countries to share information on the status of plans and preparations. The Year 2000 problem could potentially lead to a cross-border reassessment of counterparty and country risks similar to that occurring now.
Unless we continue to make steady progress in preparing for the century change and communicate clearly how we are doing, we may experience what I call the “Year 2000 shadow” in the financial markets.