Get Ready: A Dozen Countries on the Brink of Default

By: EW News Desk Team   Date: 6 June 2011

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EW News Desk Team

Always on the look out for the latest news to monitor the state of the world economy.

EconomyWatch, News Desk Team

 

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06 June 2011

Spain’s government party gets trounced in local elections, Fitch cuts Greece’s credit rating and S&P's outlook downgrade of Italian sovereign debt has sent credit markets into a tailspin. Many of Europe's fringe states lacking the growth they need to escape their debt traps - and now the costs of insuring sovereign debt of eurozone states is rising again, as markets begin to be believe in the inevitability of some sort of restructuring event.

Related: A 2008-Scale European Financial Crisis This Year? Niall Ferguson

See the Slide Show >>> Default Danger: 12 Countries On The Brink Of Crisis

Related: What Will Make the Great Financial Crisis Look Like Child's Play? The Next One: Gordon Brown

Business Insider ranked the top countries most likely to default by today's intraday CDS price, or the cost to insure each country's debt. It isn't a perfect ranking of what country is likely to default first, or when, but does show a growing consensus from market participants that the crises in these states is getting worse. (A 5-year CDS price of 1000 bps suggests it costs $1 million to insure $10 million of debt.)

1. Greece

  • Current 5-year Mid CDS (bps): 1393.33
  • Friday 5-year CDS Price (bps): 1334.83

Read Greece Economic Forecast

2. Venezuela

  • Current 5-year CDS Price (bps): 1026.92
  • Friday 5-year CDS Price (bps): 1052.31

Read Venezuela Economic Forecast

3.  Portugal

  • Current 5-year CDS Price (bps): 663.67
  • Friday 5-year CDS Price (bps): 639.47

Find Portugal Economic Statistics

4. Ireland

  • Current 5-year CDS Price (bps): 662.83
  • Friday 5-year CDS Price (bps): 639.82

Read Ireland Economic Forecast

5. Argentina

  • Current 5-year CDS Price (bps): 612.77
  • Friday 5-year CDS Price (bps): 605.52

Read Argentina Economic Forecast

6. Ukraine

  • Current 5-year CDS Price (bps): 450.02
  • Friday 5-year CDS Price (bps): 443.00

Find Ukraine Economic Statistics

7. Lebanon

  • Current 5-year CDS Price (bps): 359.35
  • Friday 5-year CDS Price (bps): 355.00

Read Lebanon Economic Forecast

8. Vietnam

  • Current 5-year CDS Price (bps): 305.45
  • Friday 5-year CDS Price (bps): 300.61

Read Vietnam Economic Forecast

9. Spain

  • Current 5-year CDS Price (bps): 275.67
  • Friday 5-year CDS Price (bps): 261.69

Read Spain Economic Forecast

10. Croatia

  • Current 5-year CDS Price (bps): 264.83
  • Friday 5-year CDS Price (bps): 257.52

Read Croatia Economic Forecast

11. Hungary

  • Current 5-year CDS Price (bps): 260.00
  • Friday 5-year CDS Price (bps): 256.63

Find Hungary Economic Statistics

12. Romania

  • Current 5-year CDS Price (bps): 230.17
  • Friday 5-year CDS Price (bps): 228.87

Read Romania Economic Forecast

Default Danger: 12 Countries On The Brink Of Crisis
View the Slide Show

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