June 20, 2011
International markets were betting on Monday night that Greece would default on its debt as the cost of buying insurance against the country missing a payment on its bonds became the most expensive of any nation in the world.
The rising cost of buying insurance through so-called credit default swaps (CDSs) on Greek debt came amid continued prevarication among eurozone finance ministers about releasing bailout funds to the indebted country and a warning that Italy's credit rating might be cut.
According to Gavan Nolan, credit analyst at Markit, to insure €10m (£8.8m) of Greek debt would cost €2m every year for five years. No other country is as expensive to insure. Venezuela is the next most expensive, but even then is almost half the cost.
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