El-Erian Says Pimco Won't Buy EU Peripheral Bonds Until Debt Restructuring
Pimco's Mohamed El-Erian
Jonathan Alcorn/Bloomberg
Mohamed El-Erian, the Egyptian-born chief executive officer of Pacific Investment Management Co.
Mohamed El-Erian, the Egyptian-born chief executive officer of Pacific Investment Management Co. Photographer: Jonathan Alcorn/Bloomberg
Pacific Investment Management Co. Chief Executive Officer Mohamed El-Erian said his funds won’t buy bonds from Greece, Portugal or Ireland until the countries undertake debt restructuring.
“We would rather stay on the sidelines until these countries are both willing and able to confront their problems, and at that stage we will consider buying their bonds,” El- Erian told Andrea Catherwood in Bloomberg Television’s “The Last Word” program.
El-Erian said he would need to see “an orderly, pre- emptive and voluntary restructuring of the debt, something that we’ve seen in other countries like Uruguay.
‘‘The second condition is a set of structural reforms that allow these economies to grow over time,’’ he said. ‘‘So we are waiting, we have a check-list, if you like, and we are waiting to see policy actions that address both the debt overhang and the growth deficit. If we see that, then we will get involved again.’’
To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Mark McCord at mmccord2@bloomberg.net
Rate this Page