IMF reforms lending rules to heavily indebted countries

The International Monetary Fund said Friday it had overhauled its lending rules for heavily indebted countries, including a rule created in 2010 to allow it to aid Greece. Last week, the IMF abandoned the “systemic exemption” rule which it used to justify giving Greece a massive bailout despite doubts about the sustainability of the country’s sovereign debt. At the time, the crisis lender decided that a Greek debt restructuring could pose severe negative spillovers on the rest of the eurozone, thus the need for the exemption.

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