PIMCO chief: 50% Greek haircut is not enough

PIMCO chief executive Mohamed El-Erian has said Greek debtholders need to take a greater haircut than planned in order to make the country's economy sustainable over the medium term.

Speaking to a Greek newspaper El-Erian, also co-CIO at the world's biggest bond house, said it is vital Greek debt holders took more of a hit in order to ensure the country is put on a sustainable economic footing. "A 50% haircut would still leave open way too many questions about Greece's economic and financial outlook, which would not simulate growth," said El-Erian. At the end of last week talks between Greece and private sector bondholders collapsed, with the two parties failing to reach agreement over the country's debt restructuring. The talks are set to resume next week, wit...