IMF report admits to mistakes in Greek rescue
An internal report by the International Monetary Fund obtained by Kathimerini admits to a series of mistakes and oversights made by the Fund in the Greek rescue program.
According to the report, the IMF did not adequately monitor the situation in Greece before the crisis. Also, the Fund rushed to praise Greece for its reform effort without determining whether the agreed-to changes had been implemented.
It took IMF staff months to realize that Greece’s capacity for administrative reform was very limited, the report added.
A restructuring of Greece’s debt should have been carried out at the outset of the program, the report said, noting that European officials had been opposed to such a move for political and economic reasons. The report also revealed, however, that there was disagreement within the ranks of the IMF about the extent to which a restructuring of Greek debt was necessary.
The Fund made excessively optimistic forecasts regarding Greece’s prospects, the report said, giving as an example the initial goal of 50 billion euros in privatization revenue.
In its cooperation with European partners, the Fund was “unprepared,” the report added.