CNN: Who stands to lose most from the Greek debt crisis

greek_debtGreece and its international lenders have embarked on a battle over the country’s staggering debt, CNN reports on Thursday. Analysts argue that some sort of restructuring might be necessary. The total government debt stands at 323 billion euros, over 175 pct of the country’s GDP.

But who stands to lose most from a restructuring? Most Greek debt is held by other eurozone countries. Around 53 billion euros was loaned through bilateral agreements, according to researchers at Open Europe. The Greek government would have to renegotiate these with each country individually. Some like France might be more willing to talk; others such as Finland have already said no.

A far bigger chunk, 142 billion euros, came from the eurozone’s bailout fund. Any relief on those loans would have to be agreed by all members. All eurozone countries chipped into the fund but by far the largest contribution – 27 pct – came from Germany, and it will exert huge influence in negotiations with Greece.

Germany’s exposure to the bailouts totals 56 billion euros – equivalent to roughly 700 euros per citizen.

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