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IMF admits “fear of Greek debt restructuring in 2010”

For one more time the International Monetary Fund acknowledged that it made mistake sin dealing and handling with the Greek crisis. In its latest report “Crisis Program Review” published on December 16th 2015, the IMF notes with regards to “Restructuring fo the Greek debt” that:

“It should have been restructured in 2010,” but that this did not happen “out of fear that the crisis would spread to other eurozone countries” and “out of fear of the exposure of European banks to the Greek debt.”

“Only after the European Central Bank intervened the eurozone was secure” and thus “after two years of uncertainty,” the report stresses.

According to the IMF, “main goal for the years 2010 and 2012 was the internal devaluation with labor reforms.”

In real life, these reforms ended up in decreasing the minimum wage by 200 euro per month, decreasing wages and cutting social benefits, smashing collective bargains.

Hm… and I though all the time reducing wages in private sector to below poverty levels was aiming to promote competitiveness…. *sigh*

IMF report in pdf here (report dated Nov 9, 2015 but published more than a month later as it needed approval by board of directors).

Juncker Lagarde

I kiss therefore I do not fear…

PS after six years in Greece, we learn that the International Monetary Fund policies are based on Fears and Wrong Multipliers.

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One comment

  1. Giaourti Giaourtaki

    But Greece is getting nothing for that the crisis didn’t spread to other eurozone countries, even worse she gets punished for rescuing it more and more. Weird is that what happened this year, esp the transformation of Syriza was predicted by the organization that attacked the Bank of Greece in April 2014.