This week Ireland announced that its GDP is growing, and that it has finally come out of its recession, indicating to some that it should be dropped from the PIIGS.
Perhaps, but from the perspective of lenders to sovereigns, there should still be some worries.
This chart form Morgan Stanley breaks down the short-term/long-term components of each country’s sovereign debt. Ironically, Greece is in good shape on this measure, as the vast majority of its debt is long-term. Ireland on the other hand would seem to be the worst, with more of of its debt in frequently-needing-to-be-rolled-over- short term debt.
It’s just one angle, obviously, but something to bear in mind.
Photo: Morgan Stanley