IMF admits to mistake in handling Greece’s first bailout

The International Monetary Fund (IMF) has admitted that it made mistakes in handling Greece's first international bailout.  The IMF said it was too optimistic in its growth assumptions and a debt restructuring should have been considered earlier.  Greece was granted a 110 billion euro bailout by the IMF and EU in May 2010.  Another 130 billion euro rescue package was approved in February 2012.  

Modifying the rules Greece's first bailout came amid fears the country would default on its debts and that it could spark debt contagion in the eurozone.