Sarah Hewin: Greek Banks More Exposed To Sovereign Debt Crisis (CNBCTV18)

Sarah Hewin (Source: Youtube)
If you want detailed information on the Greek sovereign debt crisis, Sarah Hewin, Head of Research at Standard Chartered Bank in Europe, explained everything on CNBCTV18 yesterday. Read the full transcript or watch the video after the jump. I also provided links to breaking news on the situation. Ahead of the confidence vote, the Greek 2-year government bond yields 28.098% (went from 28.81% to 28.09% this morning) and EUR/USD is trading higher at 1.43433. Good luck Greece!
Greece 2-year Gov Bond Yield (Bloomberg)
"The question is how voluntary a voluntary rollover can be is an interesting one. I think that there is a certain amount of behind the scenes coercion which is going on for large banks, particularly state owned banks in Europe to rollover debt as it falls due. Now, the main thing is that there should not be seen to be any coercion because if that’s the case then the ratings agencies have said that they will class Greek debt as in default, and if that’s the case then the European Central Bank has said that they will no longer accept Greek debt as collateral. So the definitions are quite important. 
The main difference really is that in a truly voluntary situation you frankly don’t know how much debt is going to be rolled over. So it’s a bit of a shot in the dark as to how much you can rely upon the private sector to refinance that debt as it falls due. The overall exposure to Greece, again an interesting question, we have got various parts of the global economy which has exposure to Greece but of course the main holders of Greek debt are the Greek banks themselves, the European banks hold probably 80% of foreign banking exposure to Greece and amongst those European banks its France and Germany that have the major holdings, has major holding in euro size. But if you look at what their holdings are as a share, as a percent of the banking sector assets is relatively small amount. The Greek banks are much more exposed on that measure."

Source CNBCTV18: "Disorderly Greek default may spark loss of trust: StanChart"

Everything you need to know:

Papandreou Confidence Vote May Decide Greece’s Fate (Bloomberg)

Euro gains ahead of Greek confidence vote (Reuters)

"China says willing to help economic growth in Europe" (Reuters)

"SocGen Tries To Make Sense Of The Complete Chaos That Is Europe Ahead Of The Greek Vote Of Confidence, Fails" (Zero Hedge)

"Greek crisis: EU leaders must act decisively or face disaster, says IMF" (

"Euro-zone ministers meeting give Greece two weeks to approve stricter austerity measures in return for another 12bn euros in aid, piling pressure on Athens to get its ragged finances in order." (Business Day)

Greek debt crisis: ratings agency raises default fears over bonds (Guardian)

"Fitch warns any Greek debt rollover would be treated as a default" (

"Fitch's James Longsdon discusses potential impact of a Greek default on European banks" (Bloomberg Video)

Fitch's Andrew Colquhoun sees risk of Greece, U.S. debt defaults (Reuters)

"Treasury plans for Greece to go bust" (

"Europe's sickly banks" - Look at German and French bank leverage (CNN Money)

Euro crisis: Greece will not be allowed to fail (Telegraph)

"Voluntary Greek Debt Restructuring Still Constitutes Default, S&P Says" (Forbes)


"Moody's may downgrade Italy state-controlled groups" (Reuters)

"Danish Opposition to Euro Rises in Poll" (Bloomberg)