Lagarde admits to IMF mistakes, urges Greek gov’t to do more

11 April 2016
784 Views

International Monetary Fund Managing Director Christine Lagarde admitted that the Washington-based organization has made mistakes in its handling of Greece’s debt crisis, however urging the nation’s leftist-led government to “take more ownership” of reform measures.

“We have acknowledged one mistake, which had to do with the fiscal multipliers,” Lagarde told Bloomberg Markets in an interview made public Monday, adding that the IMF and the Europeans had both underestimated the contracting impact of some of the recommended measures.

“We overestimated the ability of Greece to actually endorse and take ownership of measures that were needed, because we moved from one government to another to another to another, and it was always, ‘It’s not really our program, it’s not really our reforms, it’s not really our measures. It’s imposed by the Troika putting all members in the same bag.’ So I think that was overestimated,” Lagarde said.

Lagarde, who is about to start her second five-year term as head of the Fund, said that it was the responsibility of the IMF to assess the gauge the potential impact of economic reforms and to reestablish the credibility and the economic sovereignty of the country under the program.

“Greece cannot just continuously tag along and expect that things will be sorted out. The Greek leaders will need to take more ownership of reestablishing their country,” Lagarde said adding that she saw no risk of Greece leaving the euro area.

“We’re not out of the Greek situation yet. And I think the present circumstances with the migration and the refugees are going to strengthen the critical role Greece is playing in the EU,” she said.

Greece has depended on rescue loans since 2010. It signed a third, 86-billion-euro bailout deal last summer.

You may be interested

Coronavirus Greece: 2,215 new cases, 451 intubated, 32 deaths
GREECE
shares37 views
GREECE
shares37 views

Coronavirus Greece: 2,215 new cases, 451 intubated, 32 deaths

makis - Mar 05, 2021

Greece announced that the new laboratory-confirmed cases of coronavirus recorded in the last 24 hours are 2,215, of which 15…

Great city routes to explore on foot in Athens
ART
shares41 views
ART
shares41 views

Great city routes to explore on foot in Athens

Panos - Mar 05, 2021

Athens reveals its best charms to those who put one foot in front of the other! Whether you’re looking to…

Jerusalem Post: Turkey tries insulting Egypt, Greece in imaginary maritime deal – Analysis
DEFENCE
shares52 views
DEFENCE
shares52 views

Jerusalem Post: Turkey tries insulting Egypt, Greece in imaginary maritime deal – Analysis

Panos - Mar 05, 2021

Turkey has invented a new “reconciliation,” after attempts to spread propaganda stories of “reconciliation” with Israel failed last year. In…

Leave a Comment

Your email address will not be published.