As skeletons keep tumbling out of the debt ridden economies in Europe, it is necessary to gauge the risk that they pose to other economies as well. Most importantly, to the foreign banks having exposure to their assets. As today’s chart shows, economies like that of Germany and France have much to fear from a possible default by Greece. German banks alone have a fifth of the total exposure of US$ 1.8 trillion towards Greece, Portugal and Spain.
Data source: Economist
Note: Countries are representative of their respective domestic banks.
Assuming 1 Pound = 1.522 US$