Greek lessons for the IMF

WITH Greece's longer-term adherence to the euro still in doubt, it is a good time for reflection on the lessons of the International Monetary Fund's unfortunate Greek lending programme. Never before has the IMF lent to a single member country on the scale that it has done to Greece. And never before has a significant IMF programme produced such disappointing results.

Under normal circumstances, IMF country lending is supposed to be limited to 200 per cent of a country's quota in a single year, 600 per cent on a cumulative basis. However, the past five years show that, under the IMF's "exceptional access" policy, there are virtua…