Greece hasn’t defaulted yet officially, but it seems certain now that it will default. We are wondering who holds the Greek debt. We did a quick research and gathered the following information from reliable sources. Greece has around €270 Billion in sovereign debt. On top of this Greek banks also owe money to mostly European banks. The WSJ chart on the left displays the distribution of “net” Greek debt among European countries. Germany and France are exposed to the Greek crisis the most. Here is the distribution of €270 Billion Greek debt by institutions (source: Reuters):
1. Greek Banks: Greek banks have around €50 Billion in Greek government bonds. When the Greek government defaults, Greek banks will follow.
2. Banks Outside Greece: Banks outside Greece have around 50 Billion euros. These are mostly German and French banks.
3. Insurance Companies: Insurance companies hold around 35 Billion euros in Greek sovereign debt.
4. Pension Firms and Mutual Funds: Pension firms and mutual funds hold around 55 Billion euros in Greek sovereign debt.
There are other small holders of Greek debt as well. U.S. banks have around $2 Billion in Greek debt. Japan, Middle East and peripheral European countries also have small amounts of Greek debt.