spaintastic monday, page-75

It's Not Just European Governments That Will Be Crushed By Debt Maturities, Banks Need $1.65 Trillion Very Soon

As investors fret about European banks exposures to Greece and other financially troubled countries, those banks borrowing costs are rising sharply. That wouldnt be a problem if they didnt need to borrow, but as it happens they need to borrow quite a lot: This year and next, some $1.7 trillion in euro-area bank debt will come due, far more than among banks in the U.S., the U.K. or elsewhere.
If banks are forced to renew those borrowings at high interest rates, the resulting debt-service costs will make it still more difficult for them to earn their way out of their troubles. If they choose not to refinance, theyll have to sell assets and cut back on lending anathema to European economies still struggling to recover.


Read more: http://www.businessinsider.com/european-debt-rollover-2010-7#ixzz0tXHH4ker

Read more: http://www.businessinsider.com/european-debt-rollover-2010-7#ixzz0tXH752py