Euro area funding requirement for 2012 by country

By Walter Kurtz, Sober Look

Here are the amounts of debt that the major Eurozone nations will need to issue this year. Let’s put things in perspective. Spain’s requirement for 2012 is to raise €35.5bn. With the new €100bn aid to the banking system, Spanish banks will have no trouble absorbing this debt. Even with higher haircut requirements due to the downgrades, Spain’s banks will be able to finance a big portion of these bonds at the ECB.

Italy on the other hand will have a tougher time. At €120bn, the nation’s requirement is the highest in the Eurozone. As Italy undergoes a severe recession and faces more auctions, the markets’ attention will inevitably shift in that direction.

Remaining 2012 government issuance by country (€ bn)

This post first appeared here: 2012 Eurozone funding requirement by country

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About Walter Kurtz

Sober Look is a no-hype financial markets/macro blog that typically relies on data analysis, primary sources, and original materials. We keep it concise, to the point, with no self-promoting nonsense, and no long-winded opinions. If you are looking for Armageddon predictions or conspiracy theories, you will be thoroughly disappointed. Topics include financial markets, banking, asset management, risk management, derivatives, global economy, policy, and regulation, with the emphasis on finance education.