The Spanish government has insisted that it will not follow its Portuguese neighbour in asking the EU for financial assistance, but many in the financial markets disagree. And it is not just public sector debt that has built up. This may add up to 62% of gross domestic product (GDP), but Spain's private sector debt-to-GDP ratio is a more worrying 170%.

According to data from the Bank of International Settlements (BIS), it is exposure to the private sector that may cause Spain's foreign creditors the biggest problem. BIS third-quarter 2010 data reveal that exposure to non-bank, private sector companies in Spain amounts to $405.3bn, versus public sector debt exposure of $123bn.

Foreign exposure to Spain

Germany is Spain's biggest creditor, with a total exposure of $242.3bn. However, France is not far behind, with a total exposure of $224.7bn. The US is owed $187.6bn, and the UK $152.5bn.

Foreign exposure to PIGS

In terms of European peripheral economies, Germany is also the biggest creditor but by a larger margin, with a total exposure of $568.7bn, versus $440bn and $430bn for France and the UK, respectively. Interestingly, 68% of the US's exposure to peripheral eurozone economies (a total of almost $392bn) relates to ‘other exposures’, which include positive market values of derivatives contracts, guarantees extended and credit commitments.

PLEASE ENTER YOUR DETAILS TO WATCH THIS VIDEO

All fields are mandatory

The Banker is a service from the Financial Times. The Financial Times Ltd takes your privacy seriously.

Choose how you want us to contact you.

Invites and Offers from The Banker

Receive exclusive personalised event invitations, carefully curated offers and promotions from The Banker



For more information about how we use your data, please refer to our privacy and cookie policies.

Terms and conditions

Join our community

The Banker on Twitter