IMF chief Christine lagarde hopes the new Greek Government “will hold” and that “one day” the Fund’s action in Europe, currently the target of criticism, will be appreciated, she said.
In a climate of fierce opposition to austerity measures in Europe, lagarde said that only time will allow the merits of the International Monetary Fund’s role in the region, where it is engaged in four state bailouts, to be understood.
“It’s natural that the IMF is perceived during its intervention as negative, prescriptive and controlling because it always intervenes in a crisis situation,” she said. She acknowledged there are certain “painful” remedies, but that the results of IMF financial programs should be judged over the long term, noting the IMF’s work during the Asian crisis in the late 1990s.
“In Asia, the countries which bitterly criticized the IMF are grateful to have been pushed to enact reforms. I hope that one day the IMF action in Europe will be appreciated” in the same way, she said. She voiced hopes that the recently weakened government in Greece, the epicenter of the eurozone crisis, would be able to hold up, as international creditors continue to press for reforms.
“It’s a thinner majority in parliament than they had before. I hope it will hold,” she said.