Forecasts about the impending default of a number of states in Europe and America have recently sounded more and more confident. Experts of the business publication Business Insider carried out research, which resulted in a rating of countries on the threshold of financial insolvency.
The main criterion for evaluation was the level of liability insurance for non-repayment of loans - this is now a popular indicator, denoted by the abbreviation CDS.
The study was conducted in 59 countries, we also bring to your attention Top-5 countries close to the default .
Contents:
- 5. Portugal
- 4. Ukraine
- 3. Cyprus
- 2. Argentina
- 1. Greece
5. Portugal
became a candidate for "departure", thanks to Greek bonds placed in national banks. The total amount of obligations, under which Greece is unlikely to be able to pay with the Portuguese bankers, is 10.1 billion US dollars.
4. Ukraine
scares experts with a significant amount of external debt and slowed economic growth. Not everyone positively looks at the huge expenditure that the state incurred in connection with the preparation for the European Football Championship. At least a third of the 100 billion hryvnia spent on the European Championship is borrowed funds. Also, many analysts note that Ukraine's attempts to achieve a reduction in prices for Russian gas despite all agreements, indicate a clear lack of funds.
3. Cyprus
most recently became the recipient of a soft loan from Russia in the amount of 2.5 billion euros, which is 10% of its GDP.Russian experts already highly appreciate the probability of non-repayment and restructuring of this loan. Not even the close connection of the Cyprus banking system with Greece is encouraging. The credit ratings of Cyprus have been steadily declining over the past year.
2. Argentina
is the only non-European country in our five. High inflation and a not too stable political situation do not allow the country to withdraw from the list of leaders of the instability rating. The external debt of the state is 43% of GDP.
1. Greece
is the leader in terms of external borrowings in comparison with GDP.The external debt of the country is already 167% of GDP, which is an unprecedented indicator. If you cut back on spending to a minimum, the Greeks will have to work out debts for a year and a half. However, it is obvious that the population is not going to meet the authorities, demonstrating their disagreement with the regime of extreme economy. They do not find support among the people and try to take another loan, which will obviously be directed to paying interest on already available loans. Greece today is the closest state to a default.
To avoid the financial crisis and the failure of the economy, many recommend that citizens invest in gold and real estate, the latter has a huge advantage, if we take into account the constantly rising prices for housing. However, in order to successfully purchase an apartment, it is necessary to make a mortgage calculation in Sberbank, and only then to proceed to the conclusion of a transaction for the acquisition of housing.