IMF re­port ad­mits to mistakes in Greek res­cue

Kathimerini English - - Front Page -

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.

Newspapers in English

Newspapers from Greece

© PressReader. All rights reserved.