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Which Countries Banks Have The Most Exposure To Uk Debt ?

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I see quite a lot in the media about the extent of the UK banking sectors eye watering exposure to Ireland, Spain etc but relatively little about who is currently holding the enormous amounts of public and private debt generated by the UK itself in recent years (nb private debt in the UK is estimated at whopping 215% of GDP and actually is a far bigger problem than the UK governments ongoing liabilities). Now a lot of that debt is owed to British based banks but given the size of the sums involved and the UKs notorious lack of domestic savings compared to some other debtors such as Japan it is not unreasonable to assume that some foreign banks and countries must be holding the bag here

What I would like to know is who are they and what is their exposure so I can avoid sticking any of the little money I possess there.

Edited by realcrookswearsuits

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What I would like to know is who are they and what is their exposure so I can avoid sticking any of the little money I possess there.

America.

'Special Relationship' and all that.

It's not just the bank numbers, it's the number of American owned multinats, employers, blah.

We didn't follow America blindly into wars for the good of the cause.

'Into the valley of death, rode the six hundred' . . . as Tennyson wrote. (That would be an approximate reference to the number of politicians at Westminster. No one at the time spotted him as a satirist. :lol: )

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Not much information out there it seems, found this on the BBC but Overseas is lumped into one, not very illuminating:

http://news.bbc.co.uk/2/hi/business/8530150.stm

"Next on the list comes investors overseas. Unfortunately, nobody keeps records showing in which countries these gilts are held. "

<_<

Edited by madpenguin

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All you have to do is put 2 and 2 together and it equals ROBOPADDY.

I will search for the details but basically any country that had a pulse and some houses and commercial property then ROBOPADDY thought they had found the end of the rainbow, including Bulgaria.

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Here you go this is the whole article.

http://www.safehaven.com/article/16273/ovebanked-underfunded-and-overly-optimistic-the-new-face-of-sovereign-europe

Here are some choice graphs.

Any crap eoconomy that is in trouble the Irish lent at least 10% of thier GDP to that country.

16273_b.png

Here is the amount of BTL buying they did in Romania and Bulgaria

16273_c.png

And the Irish think we should let them default, Ha Ha.

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Here you go this is the whole article.

Here are some choice graphs.

Any crap eoconomy that is in trouble the Irish lent at least 10% of thier GDP to that country.

But that wasn't the question. Plenty of silly Irish lending charts around.

The OP wants to know, 'Who is most exposed to the UK???'

You seem to be the charts guy. Got one of those??

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Thanks for the replies but sadly none give the breakdown I am looking for.

There was thread on this site which discussed a Mckinsey study that estimated UK debt as 449% of GDP

http://www.housepricecrash.co.uk/forum/index.php?showtopic=134716

This figure is remarkably close to the figure for UK External Debt – to GDP published by the ONS (nb - you have to love the way expensive consultancies wrap up other peoples work as their own)

http://www.economicshelp.org/blog/economics/uk-external-foreign-debt/

http://www.statistics.gov.uk/imf/

http://www.statistics.gov.uk/downloads/theme_economy/UKExtdebtQ3_09_Q2_10.xls

The problem is that the figures provided by the Statistics Office show that a lot of these external liabilities lie within the financial sector and presumably include a lot of foreign money that is flowing through the City of London (ie it is the debt of financial institutions based in the UK). Over 3600 billion of the UK approx 6000 billion UK Foreign debt is held by the banking sector with another 2000 billion owed by Companies and Oher Corporate and Non Corporate bodied. Half the debt is short term currency deposits and othermoney market instruments (ie fairly hot money)

Direct UK government borrowing accounts for about 308 billion of the debt of which 277 billion is longer term borrowing. The monetary authorities such as the BOE only clock up 27 billion. As in Ireland the Government debt figure is dwarfed by the liabilities held by private institutions and particularly the banks.

What I would like to know is who are the creditors for some of the longer term debt. Surely it must be possible to get some idea of the counteparties involved at least for the sovereign elemnt of the debt.

Edited by realcrookswearsuits

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But that wasn't the question. Plenty of silly Irish lending charts around.

The OP wants to know, 'Who is most exposed to the UK???'

You seem to be the charts guy. Got one of those??

Yep, here you go it is overseas.

_47356069_gilt_graph_466.gif

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I see quite a lot in the media about the extent of the UK banking sectors eye watering exposure to Ireland, Spain etc but relatively little about who is currently holding the enormous amounts of public and private debt generated by the UK itself in recent years (nb private debt in the UK is estimated at whopping 215% of GDP and actually is a far bigger problem than the UK governments ongoing liabilities). Now a lot of that debt is owed to British based banks but given the size of the sums involved and the UKs notorious lack of domestic savings compared to some other debtors such as Japan it is not unreasonable to assume that some foreign banks and countries must be holding the bag here

What I would like to know is who are they and what is their exposure so I can avoid sticking any of the little money I possess there.

If that is even remotely true we are truly screwed. I thought it was about 90%.

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Nah, don't worry about it.

It's all secured on the best performing real estate in the world.

It's a gold mine this island of ours.

A diamond.

Ask the Chinese and they're clever people.

They invented paper and gambling.

Edited by indirectapproach

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Yep, here you go it is overseas.

_47356069_gilt_graph_466.gif

Thanks for that Ralph.

Reasonably good news - that only about 30%? of gov. gilts is held abroad.

That means that most (70%?) of the interest the UK gov. will pay in the next decades will remain inside the British economy. Not too bad, macro-economically. At some point interest rates will go up, unavoidably, but at least then UK savers will be rewarded, and their expenditure will help the UK economy. We may have a chance after all.

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Thanks for that Ralph.

Reasonably good news - that only about 30%? of gov. gilts is held abroad.

That means that most (70%?) of the interest the UK gov. will pay in the next decades will remain inside the British economy. Not too bad, macro-economically. At some point interest rates will go up, unavoidably, but at least then UK savers will be rewarded, and their expenditure will help the UK economy. We may have a chance after all.

Also its a reminder that the person who gets hit when a country like Ireland or Greece is you and me with our pensions.

That said I don't have a pension, its another mugs game like a mortgage.

I think the OP is looking for this.

16273_a.png

Ireland has the largest claims against the UK as a percentage of the its respective GDP, the largest in the world. In the rush to raise cash to sell assets, expect some fire sales in the UK.

Ireland can also be expected to pull assets our of the ailing PIIGS group as well, since they are, bar none, the biggest lender to that group as a percentage of GDP.

Edited by Peter Hun

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Also its a reminder that the person who gets hit when a country like Ireland or Greece is you and me with our pensions.

That said I don't have a pension, its another mugs game like a mortgage.

I think the OP is looking for this.

16273_a.png

So how are you planning for the future for when you are retired. I'm taking for granted that you do work......

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So how are you planning for the future for when you are retired. I'm taking for granted that you do work......

Sell my business, or depend on its dividend. That and farming.

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