Portugal Following Greece’s Path?


    Heavily indebted Portugal is at risk of following Greece’s downhill path, says Mohamed El-Erian, CEO of PIMCO. In an interview with German news magazine Der Spiegel, he says Portugal is likely to need a second bailout package which will cast further doubt on the country’s solvency. And, as Portugal comes under increased scrutiny, “financial markets will be nervous because they are worried about a participation of the private sector.” Greece has required a second international multi-billion bailout package and its private creditors took significant losses on their bond holdings to avoid a Greek bankruptcy.