Cyprus now tops the list of the riskiest sovereign credit

According to findings of the Credit Information Specialist CMA covering the first quarter or 2012, Cyprus is now ranking as the number one nation in the list of countries who might not be able to pay their debts in the next five years. Cyprus, which made it in the list for the first time ever has replaced Greece in the top position of the riskiest sovereign credit in the world and has the highest probability of a default. Cyprus is closely followed by Portugal while Greece is no longer in the top ten as a result of its debt restructuring efforts. According to Sigmalive news, a source at the Ministry of Finance, said that this weakness of the Cypriot economy is a result of the size of the banking sector which if required to be placed under a support mechanism will be a substantial financial burden on the government. The same source also added that the percentages allocated are based on statistical assumptions and that the value given to Cyprus is to cover all possible scenarios in the next five years.