Here
are the amounts of debt that the major Eurozone nations will need to
issue this year. Let's put things in perspective. Spain's
requirement for 2012 is to raise €35.5bn. With the new €100bn
aid to the banking system, Spanish banks will have no trouble
absorbing this debt. Even with higher haircut requirements due to
the downgrades,
Spain's banks will be able to finance a big portion of these bonds
at the ECB.
Italy on the other hand will have a tougher time. At €120bn, the
nation's requirement is the highest in the Eurozone. As Italy
undergoes
a severe recessionand faces more auctions, the markets'
attention will inevitably shift in that direction.
|
Remaining 2012 government
issuance by country (€ bn) |