(VOVworld) - The International Monetary Fund abolished Wednesday a rule created in 2010 that allowed it to participate in an international bailout of Greece despite doubts about Athen’s debt sustainability.
IMF spokesman Gerry Rice said in a brief statement that the “systemic exemption” amounted to a loophole in the IMF's longstanding policy. It required the crisis lender to judge a member country's public debt to be sustainable with “high probability” before it could provide financial assistance that exceeds a member's contribution to the institution.
According to international analysts, with the elimination of the loophole, the IMF is seeking to close a controversial chapter in its recent history as it decides whether to join the EU and ECB in a third bailout of Greece worth 93.5 billion USD launched last August.