Riots continue in Egypt this morning, with the threat of even bigger protests tomorrow looming. The country’s CDS prices are blowing out, indicating markets are beginning to wonder whether or not the next administration will have an interest in preserving the status quo when it comes to the country’s sovereign debt.
The banks most exposed to Egyptian debt are to be found in the UK and France, according to Bloomberg.
Digging a little deeper in the Bank for International Settlements data, it’s obvious it’s not just France and the UK exposed.
The six countries with over a billion in banking sector claims on Egypt, from BIS:
- France – $17.6 billion
- UK – $10.7 billion
- Italy – $6.3 billion
- U.S. – $5.4 billion
- Germany – $2.5 billion
- Switzerland – $1.1 billion
- Greece – $1.0 billion
But what banks, in particular, are exposed? Societe Generale seems to have a large chunk of exposure, with $5.6 billion in loans in the country, according to Bloomberg.
BNP Paribas is also assumed to have a large exposure, and it slid today in European trading. HSBC and Standard Chartered are considered to be the British banks with the most exposure, according to the IHT. Barclays also has significant operations in Egypt.