IMF review of Greek bailout highlights a series of errors

IMF review of Greek bailout highlights a series of errors

 

An internal review of the Greek bailout program by the International Monetary Fund has found that the organization made serious errors during the last three years and that the European Commission’s decision making was also suspect.

The report is due to be published on Thursday but extracts were leaked by the Wall Street Journal on Wednesday. According to the report, the IMF admitted that it underestimated the recessionary impact of the fiscal policies Greece was asked to implement as part of the bailouts, the first of which was agreed in May 2010. “The fiscal targets became even more ambitious once the downturn exceeded expectations,” the report said.