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
Japan3,000 billion117 billion
US3,000 billion212 billion
Italy428 billion72 billion
France367 billion54 billion
Germany285 billion45 billion
Canada221 billion14 billion
Brazil169 billion31 billion
UK165 billion67 billion
China121 billion41 billion
India57 billion39 billion
Russia13 billion9 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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