News Summary: EU rejects IMF criticism on Greece

AP News
Posted: Jun 06, 2013 3:12 PM

CLASH: The European Commission rejected a report from the International Monetary Fund that said there were "notable failures" in the way Greece's 240 billion euro ($310 billion) bailout was handled.

TIME LAG: The IMF criticized the two-year lag between the 2010 bailout and Greece's debt restructuring. The debt was restructured — meaning investors were paid less than they were owed — last year.

BIG PICTURE: A Commission spokesman said the report ignores the interconnected nature of the euro area member states, and if Greece's debt had been restructured before the bailout, there would have been "devastating consequences" that would have destabilized the rest of the euro countries.