As stories about a Greek sovereign debt restructuring gather pace, expect to read lots more stories like this one in which some guy claims that a Greek restructuring would “severely damage the banking systems of Ireland and Portugal.”
Let’s be clear. It won’t. We’ve been here before with people quoting figures from the BIS on Irish exposure to Greek debt that stemmed from holdings of foreign-owned banks in the IFSC. However, even the BIS figures now show “Irish” bank exposure to Greek debt has collapsed to below $1 billion (you can find a time series in here if you look hard enough.) God knows there’s enough to worry about in relation to the Irish economy and its banks, so let’s at least try to put this one to rest.