Pimco Continues To Buy, Hold Italy, Spain Government Debt - Report
19 April 2012 - 1:00AM
Dow Jones News
Pimco is no longer buying Greek and Portuguese bonds but is
buying and holding Italian and Spanish sovereign debt, Chief
Executive Mohamed El-Erian tells German weekly newspaper Die Zeit
in an interview to be published in Thursday's edition.
"It is important to make a clear distinction between individual
countries; Spain isn't insolvent! Italy isn't insolvent!," El-Erian
told the newspaper. "If Spain can convince investors that it is
making progress in restructuring its banks, it won't need external
help."
El-Erian also said European governments should boost their
rescue fund prior to asking the international community for
financial support. He noted that loans by the International
Monetary Fund to Portugal, Greece and Ireland already account for
more than 60% of all loans provided by the fund.
He also said the euro zone must take a clear decision on where
it's heading in order to prevent a break-up of the currency
union.
Pimco is a subsidiary of Allianz SE (ALV.XE).
-Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500.