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Greece’s Pre-Crisis Debt Redemption Timeline.

In Debt on April 10, 2011 by CQCA

The chart above is taken from the Greek Ministry of Finance’s December, 2009 Public Debt Bulletin.

The budget for 2009 was €79 billion. The chart above shows that about €30 billion was coming due in 2010. If the amount of debt due (€30 billion) is divided by the total budget for the previous year (€79 billion), the redemption ratio is 37.97% of the government budget. This is considerably higher than Spain’s current redemption ratio. However, in 2009, Greece owed 30% of its total debt in the next three years. Spain, today, owes 45% of its total debt in the next three years.

This indicates that the debt-to-GDP ratio is not as important as the redemption ratio between the government’s budget and debt due in the near future.

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