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El Erian - Potential for Greece 'accident' at 55 percent: CNBC interview

(Reuters) - Allianz chief economic adviser Mohamed El Erian told CNBC television on Tuesday that he sees the potential for a Greece debt "accident" at about 55 percent and rising, as the chances of a default continue to grow. El Erian told the business news channel that based on recent discussions with people in Europe, there is more confidence that any contagion arising from a default would be limited, and there is even talk the euro zone would be better off if Greece left the European Union. He also said Europe has built institutions to limit contagion and that the European Central Bank would come in "in a big way" to offset any financial shocks. Greece is set to default on a 1.6 billion euro (1.16 billion pound) debt repayment to the International Monetary Fund on June 30, possibly driving it to leave the euro zone unless it receives fresh funds. (Reporting by David Gaffen in New York; Editing by Jeffrey Benkoe)