Greece will likely need a second debt restructuring, according to a top official at investment fund PIMCO, as the first one that was completed last month may well not be sufficient for the country.

Andrew Bosomworth, head of the PIMCO portfolio in Germany, said on Tuesday that “with the first haircut the problems of Greece have not been resolved,” and that a second one will follow. This is why “we are avoiding Greek bonds.”

He added that the next haircut will hurt the states that lent to Greece as they will then hold about three-quarters of Greek debt.

Meanwhile a Dow Jones report suggested on Tuesday that the credit default swaps (CDS) of the bonds issued under foreign law may be in for a payout should Greece decide against repaying them. It cited a source from the International Swaps and Derivatives Association (ISDA) that issues the CDS.

Back in Athens the outstanding debt that the state has to third parties (suppliers, construction companies etc) climbed to 6.3 billion euros at the end of February, from 5.7 billion at end-December, the Finance Ministry announced on Tuesday.