How exposed are the world's banks to the Greek Debt
A big part of the Debt, approximately 92 billion euros, is owned by european banks, resulting in a danger of chain reaction inside the EU, in case of a Greek “accident”. Many of the French and German Banks are being exposed to the Debt, while the Greek banks top the list, as their exposure totals approximately 55 billion euros. This exposure, along with the lack of cash funds, are the basic reasons for the continuous downgrades of the european banks, from the International Rating Companies.
Meanwhile, the facts from the BIS, concerning the last three months of 2009, a time in which the, newly elected, Prime Minister G.Papandreou announced the economical “collapse” of the country, show a gradual release of the Greek Debt from the banking system. While, in the middle of 2008, the banks owned 216 billions, they are nowadays left with a sum of 100 billions, which are, on the one hand, extremely risky to be released or, at the other, too expensive to be secured as the insurance prices remain high.