Now Here’s Who Gets Crushed If Portugal Goes Bust

portugal youth

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Investors are increasingly worried about Portugal’s debt profile, as its economy contracts and the prospects of a Greek debt restructuring going smoothly shrink.While EU leaders have lauded Portugal’s performance to date at achieving the debt goals outlined in the terms of its bailout last spring, analysts remain sceptical that this progress can continue amid worsening economic conditions.

That’s being reflected in yields on Portuguese bonds today, which are hitting euro-era highs trading in the secondary market.

If Portugal fails to meet its goals and can no longer borrow money from the open market, it could be forced to restructure its debts. Worst case scenario is that this could set off a downward spiral that would spread across the eurozone.

[slideshow]
[slide
permalink=”italian-government-debt-exposure-to-portugal-totals-509-million-1″
title=”Italian government debt exposure to Portugal totals $509 million”
content=”Total lending exposure: $3.93 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/4f0c78996bb3f7790f000015″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”swiss-government-debt-exposure-to-portugal-totals-654-million-2″
title=”Swiss government debt exposure to Portugal totals $654 million”
content=”Total lending exposure: $2.61 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/2c7a6c798e61b94927a76700″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”japanese-government-debt-exposure-to-portugal-totals-106-billion-3″
title=”Japanese government debt exposure to Portugal totals $1.06 billion”
content=”Total lending exposure: $2.22 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/4ea1888e6bb3f7302f000023″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”us-government-debt-exposure-to-portugal-totals-123-billion-4″
title=”US government debt exposure to Portugal totals $1.23 billion”
content=”Total lending exposure: $5.23 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/4ee0f4af69bedd7742000034″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”uk-government-debt-exposure-to-portugal-totals-186-billion-5″
title=”UK government debt exposure to Portugal totals $1.86 billion”
content=”Total lending exposure: $25.44 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/6db9b91400cf1148d9b38300″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”belgian-government-debt-exposure-to-portugal-totals-209-billion-6″
title=”Belgian government debt exposure to Portugal totals $2.09 billion”
content=”Total lending exposure: $3.51 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/4eb1ab70ecad04ca49000026″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”non-european-banks-government-debt-exposure-to-portugal-totals-230-billion-7″
title=”Non-European banks’ government debt exposure to Portugal totals $2.30 billion”
content=”Total lending exposure: $7.78 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/4eb1aaffeab8ea0822000043″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”french-government-debt-exposure-to-portugal-totals-615-billion-8″
title=”French government debt exposure to Portugal totals $6.15 billion”
content=”Total lending exposure: $25.66 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/4ef3527e69bedd2a49000002″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”spanish-government-debt-exposure-to-portugal-totals-714-billion-9″
title=”Spanish government debt exposure to Portugal totals $7.14 billion”
content=”Total lending exposure: $88.48 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/4e147bb3cadcbbd575120000″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”german-government-debt-exposure-to-portugal-totals-898-billion-10″
title=”German government debt exposure to Portugal totals $8.98 billion”
content=”Total lending exposure: $35.85 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/4c2cf5427f8b9a144ea90900″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”european-banks-government-debt-exposure-to-portugal-totals-2990-billion-11″
title=”European banks’ government debt exposure to Portugal totals $29.90 billion”
content=”Total lending exposure: $196.67 billion

Source: Bank for International Settlements
image=”http://static.businessinsider.com/image/4dd67545ccd1d525361a0000″
caption=””
credit=””
credit_href=””
]
[slide
permalink=”portugals-gdp-was-totaled-17270-billion-22818-billion-in-2010-12″
title=”Portugal’s GDP was totaled €172.70 billion ($228.18 billion) in 2010.”
content=”The IMF predicts Portugal’s economy will contract by 3% in 2012, but many economists predict a much sharper decline in growth.

Source: Bloomberg
image=”http://static.businessinsider.com/image/4b955ec97f8b9a5b7dd00000″
caption=””
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]
[slide
permalink=”greece-owes-portuguese-banks-75-billion-99-billion-13″
title=”Greece owes Portuguese banks €7.5 billion ($9.9 billion)”
content=”In September 2011, Portugal had $191.6 billion of debt outstanding.

Source: Bank for International Settlements
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caption=””
credit=””
credit_href=””
]
[slide
permalink=”portugals-debts-are-still-less-unsustainable-than-greeces-14″
title=”Portugal’s debts are still less unsustainable than Greece’s.”
content=”Here’s Who Gets Crushed If Greece Goes Bust >
image=”http://static.businessinsider.com/image/4ede93e0eab8eab25d000000″
caption=””
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[/slideshow]