Private sector exposure to Greece small

In 2009 the fear inspired by Greek budget problems was European private sector banks holding that country’s bonds would become insolvent as losses on the bonds mounted. This year the concern is not as great as the exposure in the private sector was much smaller. AMP’s chief economist Shane Oliver wrote recently “Greece is such as small part of the global economy, private sector exposure to Greece is small and neighbouring countries such as Spain, Italy and Portugal are in better shape than they were when doubts about Greece’s ability to pay the IMF started.”