The International Monetary Fund on Wednesday is to publish a study that is highly critical of its own and the EU’s handling of Greece’s first €110 billion (US$144 billion) bailout, saying growth assumptions were too optimistic and a debt restructuring should have occurred earlier.
The study, according to an official familiar with its contents, says that the decision to force losses on private holders of Greek bonds, which was agreed to in October 2011, should have occurred much earlier when it became clear the program was not working.
The report exposes disagreements among international lenders overseeing Greece’s rescue and has generated controversy even within the IMF itself.
Officials within the IMF and some euro zone governments, including Germany, had pushed for such “haircuts” of privately held Greek bonds earlier. But the report argues resistance within Europe hindered efforts to get such a restructuring deal.