bis-highlights-banks-exposure-greeceUS banks could be far more exposed to a Greek default than was demonstrated in past releases, new data published by the Bank for International Settlements (BIS) on Monday shows.Statistics released in the BIS's Quarterly Review says European banks held $136 billion in foreign claims from Greece at the end of December 2010, led by France and Germany with $56 billion and $40 billion in foreign claims respectively. However, the data on potential foreign exposures, a new feature in this quarter's data series, shows the US may be just as exposed to Greece, with $34 billion in potential exposures to the peripheral country in addition to the $7 billion in foreign claims. The data shows $33 billion of the potential exposures were in guarantees, which includes products such as credit default swaps.The data on American banks also shows significant exposures to Portugal, with $41 billion in potential exposures, compared to just $5 billion of foreign claims. The US may also be exposed to a further $54 billion of claims from Ireland.Foreign claims consists of cross-border claims on entities other than those located in the country of residence of the reporting bank, and include claims on the public, bank and non-bank sector. Meanwhile, potential exposures include off-balance sheet exposures and are only considered potential claims. They consist of derivatives contracts at positive market value, guarantees extended and credit commitments.The BIS extended its statistics on foreign claims to include other potential exposures as part of efforts to provide more comprehensive cross-border data on reporting banking systems. The new section provides detailed bilateral information on other possible foreign exposures and sectoral breakdowns of foreign claims of major reporting banking systems in a wide range of countries in Europe, Asia and North America.The prospect of a Greek default has increased in recent weeks after some European officials openly discussed the possibility of a "soft restructuring" for the country, despite opposition from the ECB. However, Greece's agreement to a second financial rescue package on Friday seemingly draws a line under a restructuring of its debt.

Is the exposure on Public or Private sector?