El-Erian Says Greek Referendum ‘Is Major Political Gamble’

Pacific Investment Management Co. Chief Executive Officer Mohamed El-Erian said the decision by Greek Prime Minister George Papandreou to call a referendum on the European Union’s latest accord on the nation’s financing “is material and consequential.”

“In addition to constituting a major political gamble, the run-up will put the European Central Bank, EU and International Monetary Fund in a tough position regarding disbursements to Greece,” El-Erian said in an e-mail today.

He also expressed concern that the EU deal “appears to be unraveling from many sides.”

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

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