Greece’s Call to IMF for Help was Decided at Davos, says Former Fin Min



gap_strauss708Greece’s former finance minister Giorgos Papakonstantinou said that the involvement of the International Monetary Fund in Greece’s first bailout was decided at a sideline meeting in Davos in 2010.

Papakonstantinou spoke on Skai television on Tuesday night where he described the circumstances and time frame of Greece’s call for help to the IMF. According to him, then prime minister Giorgos Papandreou and then IMF chief Dominique Strauss-Kahn decided the involvement of the fund in Greece’s bailout in a kitchen at Davos during the 2010 World Economic Forum.

“The meeting was secret, as any public appearance of the three of us would reveal that Greece will borrow from the IMF, and that would destroy us in world markets,” Papakonstantinou said.

According to the former minister, meetings with IMF officials had started as early as 2009, soon after PASOK came to power. Then Bank of Greece governor Giorgos Provopoulos notified the Papandreou administration that there was a serious state deficit. Papandreou had started looking for alternative sources to borrow in case the markets would not lend to Greece.

Papakonstantinou’s book “Game Over: The Truth About the Crisis” will be released on April 23, the anniversary of Papandreou’s announcement of Greece entering the IMF bailout program n 2010.