Greece's sovereign debt restructuring is inevitable, PIMCO co-chief investment officer Mohamed El-Erian said on Sunday, warning the nation's problems could contaminate Europe.
It is inevitable that Greece will have to restructure its debt. Europe has been kicking the can down the road, treating Greece's problem not as a solvency issue, but as a liquidity problem, he said on CNN's Fareed Zakaria GPS program.
Greece has too much debt and cannot grow until these problems are solved. More and more of Europe is going to be contaminated.
El-Erian helps oversee $1.1 trillion in assets at PIMCO, the world's largest bond fund manager.
(Reporting by Lucia Mutikani; editing by Jeffrey Benkoe)