Eurozone Debt: Who Owes What to Whom?
Europe is struggling to find a way out of the eurozone crisis amid mounting debts, stalling growth and widespread market jitters. After Greece, Ireland, and Portugal were forced to seek bail-outs, Italy - approaching an unaffordable cost of borrowing - has been the latest focus of concern.
But, with global financial systems so interconnected, this is not just a eurozone problem and the repercussions extend beyond its borders.
While lending between nations presents little problem during boom years, when a country can no longer handle its debts, those overseas banks and financial institutions that lent it money are exposed to losses. This could not only unsettle the home country of those banks, but could, in turn, spread the troubles across the world.
Below is a link to an interesting interactive chart that shows the gross external, or foreign, debt of some of the main players in the eurozone as well as other big world economies.