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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 [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza