Greek government's soaring liabilities in 2020
Greek government's soaring liabilities in 2020
  Europe  |  Analysis

Greek government's soaring liabilities in 2020

RE+D magazine

The most common form of contingent liabilities in the EU Member States is government guarantees on liabilities, and occasionally, on assets of third parties.

This information comes from data on contingent liabilities and non-performing loans published by Eurostat 

In 2020, there has been a notable increase of guarantees provided in the EU, due to new government guarantee programmes in the context of the COVID-19 pandemic. 

The highest overall rate of government guarantees was recorded in Finland (27.1% of GDP), ahead of Denmark (19.8%), Austria (19.1%), Germany (17.5%) and France (17.1%). 

Data in Finland also include some guarantees underwritten by a financial public corporation classified outside of government, but only to the extent they are counter-guaranteed by the government. Slovakia was the country with the lowest level of government guarantees (0.1%). Rates of less than 1% of GDP were also recorded in Bulgaria, Ireland and Czechia.