Banking Systems Most Exposed to PIIGS Nations - 3,2 trillion USD
Sunday, 9 May 2010 | 
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The European sovereign debt crisis continues to rattle global markets as uncertainty over austerity measures and a proposed bailout have people questioning whether the Eurozone will be able to survive more financial trauma.
At the center of concerns are the "PIIGS" nations - Portugal, Italy, Ireland Greece and Spain - heavily indebted countries in danger of default that could trigger an economic domino effect around the globe.
In an April 2010 report, the Swiss-based Bank for International Settlements (BIS), a clearinghouse for world’s central banks - reviews central bank data and reveals the countries that are the most exposed to European turmoil, specifically in their banking systems. The numbers presented here take into account foreign claims - investments in the form of loans and bonds that have arisen from PIIGS nations – that are held by international banks headquartered outside the individual countries. If a government defaults on debt, it could carry catastrophic consequences for the country's economy, with the potential to seriously devalue - or potentially wipe out - these assets.
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