January 3, 2012
Here’s an alarming statistic – $7.6 trillion of debt issued by the world’s largest economies will mature this year, putting a major strain on the financial markets.
2012 Bond/Bill Redemptions($)
|Japan||3,000 billion||117 billion|
|US||3,000 billion||212 billion|
|Italy||428 billion||72 billion|
|France||367 billion||54 billion|
|Germany||285 billion||45 billion|
|Canada||221 billion||14 billion|
|Brazil||169 billion||31 billion|
|UK||165 billion||67 billion|
|China||121 billion||41 billion|
|India||57 billion||39 billion|
|Russia||13 billion||9 billion|
Bloomberg has crunched the numbers and worked out the amount of debt that the G7 nations plus Brazil, Russia, India and China must refinance in the next 12 months. It’s an increase on the $7.4 trillion that matured during 2011.
As Bloomberg points out, many of these countries face higher borrowing costs than a year ago – making it more expensive to roll the debt over (by issuing new securities to pay off debt as they mature).
The table on the left shows which countries owe the most (redemptions = total debt that matures in 2012; coupon payments = interest payments on the national debt).