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Nov 18, 2011

PIIGS Refinancing Per Year (-2014) and Per Month (-2013)

When government bonds expire governments have to issue new bonds to keep financing its debt. Normally this is not a problem when interest rates stay about the same rate. For Ireland, Greece and Portugal the interest rates have been rising since last year to unpayable highs. Thats why they are financing its debt through the EFSF and the IMF at the moment. The interest rates for Italy and Spain have been rising lately as well.

Together these five countries (debt redemption, interest payments, primary balance deficits and bank recapitalisations) have to lend 1500 billion euro's in the next three years.

This graph shows the refinancing needs for these countries in the next 14 months.


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