Here's Who Gets Hurt If Hungary Goes Bust

Following Hungary’s downgrade today by ratings agency Fitch, concerns over exposure to the country have flared higher.

Reuters’ Scott Barber analysed holdings of the country’s debt, using BIS data from June 2011.

Barber found Austria, the largest holder of Hungarian debt, holds claims to more than $41 billion. Yields on its 10-year bonds have surged above 3.4% today, before settling at 3.397%.

Hungary 10YR

Photo: Scott Barber/Reuters

Yields on Hungarian 10-year bonds have declined slightly since yesterday’s peak above 11%, to 10.07%.

The pressure stems from the passage of a hotly disputed law that could limit the independence of the country’s central bank. Recently a number of bond offerings failed to raise much needed capital.

Interestingly, the close intermingling of the European financial system may prove greater trouble for Italy and Germany, which hold a combined $200 billion in Austrian debt. 

SEE ALSO: Your 30-Second Guide To Spiraling Crisis In Hungary >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at