IMF admits Greece bailout was handled poorly

6 June 2013

The International Monetary Fund (IMF) has admitted mistakes were made in its handling of Greece's first international bailout.

It said it was too optimistic in its growth assumptions and said a debt restructuring plan should have been considered much earlier.

The bailout in question was the €110 billion ($145 billion) bailout by the IMF and European Union in May 2010.

Greece's first bailout came during fears the nation would be forced to default on its debts, which could have potentially sparked a debt contagion in the eurozone.

The IMF has now released a study looking at the handling of the programme, where it admitted to bending its own rules in order for the programme to go ahead.

Despite the failings, the IMF said there had been notable successes as a result with strong fiscal consolidation being achieved and Greece remaining in the eurozone.

Another €130 billion rescue package was approved in February 2012.

By Asim Shah

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