PIMCO: Expect 'second Greece' in Portugal

Giant bond fund PIMCO warned Europe has not got its debt crisis under control and will soon face a "second Greece" in Portugal.

Mohamed El-Erian, PIMCO's chief executive, said Portugal will need a second rescue as the original package of €78bn (£65bn) falls short. "Unfortunately, that is how it will be. It will make the financial markets nervous because they are worried about a participation of the private sector," he told Der Spiegel over the weekend. His views contradict those of German finance minister Wolfgang Schäuble who insists Greece is a "completely unique case". He has said there will be no further haircuts for banks, insurers and pension funds holding eurozone sovereign bonds. But El-Erian said E...