Foreign exposures to Greece, Ireland, Portugal and Spain...

Discussion in 'Wall St. News' started by ASusilovic, Dec 19, 2010.

  1. $2,281bn — Foreign exposures to Greece, Ireland, Portugal and Spain.

    $107bn — Decline in foreign exposure to the above between April and June.

    $81.1bn — German loans to Spanish banks at the end of Q2.

    For perusal on an otherwise quiet Monday — the latest quarterly report from the Bank for International Settlements. It’s chock-full of detail about European exposure to so-called Club Med country debt and banks. Which will probably raise hackles about accuracy/interpretation, but nevertheless be a talking point for markets.

    Check out, for instance, reported German exposure to Spanish banks:


    According to the BIS (and on the “admittedly imperfect” assumption that all foreign claims on Europe’s porcine countries are denominated in euros) the quarter saw a combined decline of $107bn in foreign claims on Club Med. Foreign lending to banks contracted by €43bn, or 7.6 per cent. But claims on the public sector (read: exposure to government bonds) shrank the most — by $44bn, or 14 per cent.

    For context, the ECB has purchased at least $70bn of government debt since it started its bond-buying Securities Markets Programme in the spring.

    Irish sea, UK banks puddle

    As Lloyds Bank shareholders found out on Friday, when the Old Lady finally warns you about eurozone peripheral exposure — you listen.

    So feast your eyes on these Bank of England data on changes in the foreign claims of UK-owned banks during Q3 2010, which were also released on Friday (click chart to enlarge, figures in US$, red highlighting ours):


    UK banks had $131.6bn

    and $104.7bn in foreign claims exposure to Ireland and Spain respectively at the end of Q2 2010, based on the current BIS data. (Data BIS claim are way better than those used in the stress tests.)

    One wonders what Q4 2010 brought.
  2. amazing how much the UK/GB 'gave' Eire
    no wonder the £ has started its next dump towards 1 , and . . .