IMF Report Shows it Bent Rules in Greece Bailout

The International Monetary Fund bent its own rules to bail out Greece back in 2010 in order to prevent much more serious damage to the eurozone and world economy.
In a detailed report on its handling of Greece’s first 110 billion euro bailout, the IMF said assumptions about growth were too optimistic, private investors should have suffered a “haircut” much earlier, and the rescue failed to meet one of four criteria — a high probability of Greece having a sustainable debt burden in the medium term.

Looking back, the IMF said the biggest rescue in the fund’s history might also have failed to meet two of the other criteria — a good chance of regaining access to capital markets, and a reasonably strong prospect of success taking into account Greece’s capacity to reform.
The IMF provided 30 billion euros as part of the rescue led by the Troika — the European Commission, European Central Bank and IMF — heading off the threat of a disorderly default and containing contagion within the eurozone.

via CNN

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