View more on these topics

Pimco warns of “second Greece” in Portugal

Investment manager Pimco has warned that Europe could face a “second Greece” in Portugal as it continues to struggle with the debt crisis.

Pimco chief executive Mohamed El-Erian believes Portugal may need a second rescue package if the original £56bn package fails.

Speaking to Der Spiegel, he said: “Unfortunately, that is how it will be. It will make the financial markets nervous because they are worried about the participation of the private sector.”

The International Monetary Fund has said in its latest report that Greece remains “accident prone” and may need further help and more debt haircuts if the economy “fails to respond rapidly enough to reforms”. It has also warned that a “disorderly exit from the euro would be unavoidable” if the EU cuts off its support.

El-Erian said that EU leaders were deluding themselves if they think they have solved the Greek crisis.

He said: “The Greek package is going to fall apart quickly. Bridges built to go nowhere can collapse at any time.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com