IMF can end its agony over Greece
The International Monetary Fund fought hard and successfully to join the eurozone governments and the European Central Bank when a rescue for Greece was launched more than two long years ago. It has not been a happy experience. The Greek economy has underperformed growth and debt targets and is now enmeshed in a post-election tangle. Unless there is a sharp reduction in the disarray and denial among the fund’s European co-lenders, it is time the IMF handed the reins over to them.
The IMF’s disquiet about Greece has been evident for more than a year. That in itself was a belated recognition of reality: it should have pushed from the outset for a restructuring of privately-held sovereign debt and insisted on a much more realistic view of how much economic growth a battered and sclerotic economy was likely to produce.
The International Monetary Fund fought hard and successfully to join the eurozone governments and the European Central Bank when a rescue for Greece was launched more than two long years ago. It has not been a happy experience. The Greek economy has underperformed growth and debt targets and is now enmeshed in a post-election tangle. Unless there is a sharp reduction in the disarray and denial among the fund’s European co-lenders, it is time the IMF handed the reins over to them.
The IMF’s disquiet about Greece has been evident for more than a year. That in itself was a belated recognition of reality: it should have pushed from the outset for a restructuring of privately-held sovereign debt and insisted on a much more realistic view of how much economic growth a battered and sclerotic economy was likely to produce.
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