The New Year (2011) may not provide redemption for the indebted nations of the Peripheral Europe. The new year may not turn out to be as forebearing of the problems facing Peripheral Europe as 2010. The chart below provides an overview of the major bond redemptions for the troubled countries.
Though, by no means exhaustive, the list shows some of the major months which will emerge as the pressure points for the global bond markets, unless we have dramatic remedial action by policy makers.
It has been pointed out by Lorenzo Bernaldo de Quirós, economist at consultants Freemarket Corporate Intelligence, Spain needs to borrow about €300billion of debt between the private and the public sector (Central Government, Local Government and the Banks). This comes at a particularly inopportune time as the bonds are increasingly queasy that most of these countries may default. The CDS market seems to indicate that suggest there is a one-in-four chance that Spain will default over the next five years, while in the case of Greece, there is a probability of more than 50 per cent, and for Ireland and Portugal more than 30 per cent, according to credit default swap prices.
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