We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

IMF and Greece: admirable honesty Essay Sample

essay
The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 373
  • Category: finance

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

IMF and Greece: admirable honesty Essay Sample

An insider’s chronicle of an enterprise that looked doomed from the start

©AFP

Excuse me while I kick myself. The International Monetary Fund’s report on its role in the 2010 bailout of Greece, published on Thursday, contains some blunt self-criticism. It highlights the IMF’s surprise at how bad things were in Greece, the optimistic assumptions on which the €110bn bailout was structured, and the Fund’s failure to be sceptical enough about what it was being told. All of which is useful. The report’s real value, though, is as an insider’s chronicle of an enterprise that looked doomed from the start. *

Running through the IMF report is the Fund’s intense discomfort at being very much the third party in the “troika” that rescued Greece, alongside the European Commission and the European Central Bank. The Commission’s tart response to the report – “we fundamentally disagree” – suggests that this is how Brussels saw the IMF’s role, too, despite the fact that the Fund provided almost a third of the financing and most of the experience in cleaning up the mess after a national meltdown. One of the report’s key conclusions – that it was a mistake to delay the restructuring of Greek debt – can serve as a metaphor for the bailout and its attempt to deny, or at least to postpone, the inevitable.

A second rescue had to be cobbled together two years later that included debt restructuring and bank resolution. Hindsight suggests that it was also naive in the extreme to assume that Greece would be able to resume market-sourced financing by 2012. Greece’s rescue was, and remains, a political event designed in Europe. It is a disarming and admirable quality of the IMF that it has the self-regard and self-confidence to believe that things might have turned out better if it had acted differently, or more decisively. Perhaps the European Commission will display such modest self-criticism when its own account of the rescue of Greece is written.

Email the Lex team in confidence at [email protected]

Copyright The Financial Times Limited 2013. You may share using our article tools. 
Please don’t cut articles from FT.com and redistribute by email or post to the web.

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Studying accountancy and finance

Studying accountancy and finance in the UK universities is a great opportunity for me as they are recognised for having an international excellence in both teaching and research. On top of that, the UK hosts strong accounting and finance professional bodies, which lead the world in terms of the development of accounting standards and drives me wanting to study in the UK. I have always...

Shareholder wealth maximization

Corporate Goals: shareholder wealth maximization. Explain the assumptions and objectives of the shareholder wealth maximization model. Shareholder wealth maximization is considered as a fundamental model that guides the half of the world’s market and corporations. As stated by Eiteman, The Anglo-American markets are of the view that the firms should follow SMW. As discussed in Chapter 4, Shareholder Wealth Maximization model assumes that in order...

Manage budget and financial plan

A budget is an estimation of revenue and expenses over a specified future period of time. It is compiled and re-evaluated on a periodic basis. The master budget is the aggregation of all lower level budget produced by a company's various functional areas and, also includes budgeted financial statement, a cash forecast, and a financing plan. A master budget is the central planning tool that...

The key elements of the financial plan

One of the fundamental tools used in managing account, profit forecasting and pricing strategies is definitely the “break-even analysis”, that can be defined as “a technique for analysing how revenue, expenses and profit vary with changes in sales volume or simply it is the analysis that enables any professional organisation to determine the break-even point”. The “break-even point” or BEP can be considered as “the...

Standard Costing: Meaning and Objectives

“Standard costing” is a traditional cost accounting method and management tool in which “standard costs are employed to value the overall cost of a production”. A “ Standard cost” can be defined as a “predetermined/estimated future cost of performing an operation, producing a good or offering a service”.  As explained in our workbook, using standard costs enable managers to identify in advance material, labor and...

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

We can't stand spam as much as you do No, thanks. I prefer suffering on my own.
logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?