BIS: Bank of France Reduce Exposure in Greece
Posted on July 22, 2010 with Comments Off
French banks have reduced their exposure to debts of Greece but still the largest creditor country was saved from bankruptcy two months ago, official data showed on Wednesday.
French banks reduced their exposure to Greece 10 percent between late 2009 and March 2010 – from 75.1 billion dollars to 67.3 billion dollars (52 billion Euros), according to figures from the Bank of International Settlements, known as the central bank from the central bank. March was the lowest level since late 2007, when the global financial crisis began to bite, triggering a credit crisis that brought most of the developed world to its knees.
The loan balance most French banks made to the private sector and not including the purchase of Greek government bonds. According to BIS figures, German banks are the next largest investor in Greece 44.2 billion dollars. In May, the European Union and the International Monetary Fund bailout package to collect (the bailout), 110 billion Euros to Greek beyond the control of financial means it can no longer raise funds in the money market to pay back debt. Under the terms of the deal, which saved Athens from the default, the main French banks agree to prepare their loan commitments during the three years of the rescue program.
Meanwhile, the BIS figures show that French banks are also reducing their exposure to countries other euro zone are weaker, where the public deficit and debt problems similar to the Greek public finances have been put under great pressure. The first quarter of French bank exposures to Portugal fell from 44.7 billion dollars to 42 billion dollars; Spain from 219.6 billion dollars to 201.9 billion dollars, with Italy fell from 511.4 billion dollars to 476.3 billion dollars
Category: Economic News