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By Louise O'Conor Updated Aug 27, 2019
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Warwick MBA Professor Questions IMF Error Admission on Bailout of Greece: MBA News main image

After the International Monetary Fund (IMF) published a recent report concluding that it had made mistakes in its handling of Greece's first international bailout in 2010, a Warwick Business School MBA professor has questioned the timing of the move.

"A public recognition of mistakes by the IMF has positives as it shows willingness to be more transparent about the fund’s processes and could potentially result, in the long-term, in improved collaboration with European institutions," Dr Sotirious Paroutis, associate professor of strategic management at Warwick Business School told 24 hour news channel France24.

Detracting from efforts? asks Warwick Business School professor

Warwick MBA professor Dr Paroutis, Greek himself, questioned whether the timing of the IMF report's publication might thrust the financial woes of the country back into the spotlight, rather than aid in the process of recovery.

"The inevitable question is whether raising these issues at this point in time is detracting from efforts to deal with the issues the Greek economy is still facing. Already, European Union officials have openly questioned parts of the IMF report, while there is an avalanche of criticism by political parties and the media in Greece."

Greece, a member of the eurozone, has been widely reported as being one of the worst hit economies by the global financial crisis of recent years. Many commentators, and some global political leaders have previously gone as far as to openly discuss the possibility of the country's exit from the eurozone, while many people within Greece have participated in large-scale protests and strikes.

Though unemployment is high, there are several encouraging signs within the IMF's report, according to Dr Paroutis, including increased tourism activity and infrastructure projects being restarted.

"This will be welcome news to international investors seeking new growth opportunities, particularly in transport and tourism-related industries; and in relatively stable conditions as Greece has the commitment of its European partners for further economic relief in 2014-2015. If planned carefully, these investments could make a real difference to the Greek economy, as the country now needs more growth-enhancing initiatives rather than one-dimensional deficit reduction efforts."