Thursday, December 2, 2010

Ireland's Exposure to the Other PIIGS

As the sovereign debt crisis continues to expand, the yield on Italy's debt continues to climb, as more investors fear being exposed to the country's debt. This is not a good development for Ireland, since, according to data from the Bank for International Settlements, banks in Ireland are among the most exposed to PIIGS debt.

The BIS data show Irish banks had the 5th largest exposure to Italy, as outstanding credit to Italy totals about $41 billion. Irish banks also ranked 5th, 5th, and 7th in terms of exposure to Portugal, Greece, and Spain, respectively.

Japanese banks are the 6th biggest lenders to Ireland and Italy, and US banks are highly exposed to Ireland and Spain.

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