Italy (NYSE:EWI) is in a financial and political rout. Prime minister Silvio Berlusconi said he refused financial aid from the IMF, only to have IMF head Christine Lagarde deny that aid was ever offered.
While his political antics continue, the country has 120% debt-to-GDP ratio and it is $2.2 trillion deep in debt. 10-year government bond yields are up to 6.33%, its manufacturing sector is contracting and its economy is just inching along.
Exasperated, two loyalists from Berlusconi’s conservative party defected this week, and at least six in the lower house of parliament have agreed to defect in future votes. Banks and countries with exposure to Italy are now in panic mode.
- Swiss government
Swiss government debt exposure to Italy totals $5.2 billion
Total lending exposure: $21.4 billion
Source: Bank for International Settlements
- Spanish government
Spanish government debt exposure to Italy totals $10.7 billion
Total lending exposure: $35.8 billion
Source: Bank for International Settlements
- UK government
UK government debt exposure to Italy totals $12.7 billion
Total lending exposure: $68.9 billion
Source: Bank for International Settlements
- U.S. government
U.S. government debt exposure to Italy totals $14.38 billion
Total lending exposure: $44.1 billion
Source: Bank for International Settlements
- Belgian government
Belgian government debt exposure to Italy totals $17.3 billion
Total lending exposure: $24.9 billion
Source: Bank for International Settlements
- Japanese government
Japanese government debt exposure to Italy totals $29.8 billion
Total lending exposure: $41 billion
Source: Bank for International Settlements
- German government
German government debt exposure to Italy totals $51 billion
Total lending exposure: $164.9 billion
Source: Bank for International Settlements
- French government
French government debt exposure to Italy totals $105 billion
Total lending exposure: $410.2 billion
Source: Bank for International Settlements
- Italian debt is domestically owned
More than 50% of Italian debt is domestically owned
Italian government debt is at $2.2 trillion or about 120% of GDP. The government owes almost $37,000 for everyone in its country.
Source: Reuters
- France and Germany Exposure in Greece
While Germany has been cutting its exposure to Greece, France's exposure has surged...
Source: Bank for International Settlements
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