A leading fund manager at Pacific Investment Management Co. (Pimco) has warned that countries in the eurozone bogged down by sovereign debts will likely need to restructure or default on their debt, according to Bloomberg. On Friday, Andrew Bosomworth said that in order to create a complete plan for dealing with the problem, senior bondholders and creditors would need to “participate in the solution.” Bosomworth also said, “One way or another, the AAA countries will have to contribute more to make the monetary union work better.”

In his interview, the Pimco manager cautioned that restructuring would only be a short-term solution, and said it was “a long, hard road ahead for these countries to find a way of growing out of the problem.” As concerns intensify over the stability of the region, European Union leaders are considering opening the €440 billion bailout fund to lending money to peripheral countries to facilitate buy-backs of distressed bonds, adds Financial Times. The proposal is one of several overhaul plans for the facility that is currently being considered, and would allow for countries like Greece and Ireland to lower debt burdens.

Click here to read the story on Pimco's forecast from Bloomberg News.

Click here for coverage of bond purchases from Financial Times.