IMF Set to Admit It Underestimated Damage Its Demand For Greek Austerity Would Inflict

  @gmorcroft g.morcroft@ibtimes.com on
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The International Monetary Fund is ready to admit that it made some major mistakes in putting together and executing Greece's recent financial bailout after a debt crisis there rigged economic chaos that continues to rattle Europe.

The Wall Street Journal reported the news on Wednesday, citing an internal IMF document marked "strictly confidential," that it said it has seen.

The paper quoted the report as saying the IMF severely underestimated the damage its prescribed austerity plan would do to the country. The report also said that the IMF fudged its own internal rules to make it appear outwardly that the exploding Greek debt was sustainable, when in reality the nation failed to meet 75% of the fund's qualifications for help.

In fact, the Journal's report quoted the IMF's paper as saying in part that the  doubts about the feasibility of the bailout were, "so significant that staff was unable to vouch that public debt was sustainable with a high probability."

The paper said the IMF document is likely to be released on Thursday.

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