Abstract
The objective of this article is to analyze the impact that the sovereign debt crisis has had in the euro zone. Furthermore, this article examines the effects of sovereign risk on the monetary policy transmission in the euro zone through bank credit. The outbreak of the sovereign debt crisis in 2010 led to growing concerns about sovereign risk, especially in the countries of the European periphery (Spain, Portugal, Ireland, Italy and Greece). Greater sovereign risk has worsened the financing conditions of the banking sector, leading to asymmetries in the monetary transmission process across countries.
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