UK banks hold a relatively small $3.4bn worth of Greek sovereign debt what does all this mean to the UK?(22-Dec-2011)

 According to figures from the Bank for International Settlements, UK banks hold a relatively small $3.4bn worth of Greek sovereign debt, compared with banks in Germany, which hold $22.6bn, and France, which hold $15bn.

When you add in other forms of Greek debt, such as lending to private banks, those figures rise to $14.6bn for the UK, $34bn for Germany and $56.7bn for France.

The UK government's direct contribution to any Greek bailout is limited to its participation as an IMF member.

However, any knock-on from Greece's troubles would exacerbate the UK's exposure to Irish debt, which is larger.

And if it led to a major financial crisis, as well as a deep recession in the eurozone - the UK's main trading partner - the damage to the UK economy would be substantial.

By

M.Zohaib Gadit

Forex Trading Consultant