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($)
Coupon Payments
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).

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