A group of developing countries led by Brazil have signalled their rising opposition to the International Monetary Fund’s handling of Greece’s bailout by refusing to back the latest aid payment to Athens this week.
Brazil’s representative to the IMF’s executive board abstained from voting for the fund’s latest €1.8bn contribution to Greece’s bailout and issued a stinging criticism, arguing that Athens might be unable to repay its rescue loans.
Paulo Nogueira Batista, who represents 11 developing countries on the IMF board, said Greece’s political and economic difficulties “confirm some of our worst fears”, adding the fund’s own economists were still making “over-optimistic” assumptions about economic growth and the sustainability of its debt.