European creditors were right to stand up to Greece and should not adjust the terms of its debt until they see a "full, firm commitment" from Athens, BlackRock CEO Larry Fink said Wednesday.
"The contract and prior funding by the creditors to Greece was a contract to the state not to a political party. A new political party came in and said, 'We're going to renegotiate,'" Fink told CNBC's "Squawk Box." "As a creditor you can't go to your bank and say, 'I want you to renegotiate.' It just doesn't happen that way."
"I think it was really important that Europe stood firm. You could not allow that same type of behavior to move to Spain and Portugal," he added. "I think a firm Europe was necessary."
Greece's government votes Wednesday on reforms that creditors have insisted upon for a third bailout.
When the Greeks pass the reforms, a renegotiation of the terms would be in order, Fink said. "The little hidden secret is most people know they'll never be able to pay it back."
Fink made his comments at Delivering Alpha conference, presented by CNBC and Institutional Investor magazine. With $4.77 trillion in assets under management, BlackRock is the world's largest asset manager.
The fundamental problem for Greece is that while one would expect outbound money to return once the dust clears, not all of the wealth that has fled the country will come back, Fink said.
"Since this crisis, most of the wealthy have left. The sad social issue is the people who are in Greece now are the poor and the middle class. They are left with this tremendous noose around their neck. This is a social catastrophe because money is so portable."