Renewed fears for Greece as it fails to entice a buyer for its biggest gas company. The beleaguered government sorely needs the money.
The IMF says plans to reduce government debt are holding the economy back. It's the most forthright criticism yet of Osborne's austerity.
The Chancellor has defended his recession-busting approach, and his record on taxing the rich, on the sidelines of the IMF meeting in Tokyo.
The IMF's admission on Greece comes from its own review of the conditions it imposed on the first bailout in 2010 and it highlights some key failings.
It said that it underestimated how much damage the austerity it imposed would do to Greece, it expected the economy to shrink by 5% but in fact it shrank by 17% between 2009 and 2012.
Also the IMF said that it lent too much to Greece, sums so vast that it cannot vouch for the fact that they will be repaid and it lowered its own standards in making those loans - essentially buying time to save the rest of the eurozone.
It does defend some of the reforms, including saying that lowering wages is helping to make Greece more competitive but overall I think this is a big admission it went too far, too fast and it has implications for other countries where the IMF doles out its prescriptions.
The International Monetary Fund has admitted to mistakes over its handling of the Greek debt crisis, according to an internal document released today.
The document said the IMF had underestimated the damage austerity measures would cause to the country - which has received two bailouts in the last three years and been in recession for the past six years.
However, it also stressed that financial support from the IMF, the European Central Bank and the European Commission had bought extra time for Greece.
The response to the crisis also gave time to other countries in the European Union, the document added.
The IMF released the document today after its contents were reported by The Wall Street Journal.
French magistrates decided not to place IMF chief Christine Lagarde under formal investigation over her role in a 285 million euro (£244 million) arbitration payment made to a supporter of former president Nicolas Sarkozy.
Lagarde instead was given the status of a "supervised witness" after two full days of questioning on her 2008 decision as Sarkozy's finance minister to use arbitration to settle a legal battle between the state and businessman Bernard Tapie.
The decision removes a headache for Lagarde, the only French national heading a major international institution today, and for the International Monetary Fund (IMF), for which a formal investigation of her would have been highly embarrassing.
George Osborne is braced for the International Monetary Fund's (IMF) verdict on Britain's economic prospects.In its annual healthcheck on UK plc, the IMF is expected to suggest that deficit reduction should be slowed amid weak growth.
The IMF was previously among the strongest backers of the Chancellor's economic strategy, but has gradually changed its tone in response to dwindling growth forecasts.
The organisation's head, Christine Lagarde, has insisted she still supports the Government's policy. But she added that "should growth be particularly low... there should be consideration to adjusting by way of slowing the pace".
Bank reforms and tax evasion will lead the agenda at a meeting of G7 finance ministers, which is being chaired by George Osborne at a country house in Buckinghamshire.
Future Governor of the Bank of England Mark Carney and IMF managing director Christine Lagarde are among those attending the two-day talks.
The IMF, which will soon issue its annual health check of the UK, has already suggested the Chancellor must be more flexible with his deficit-reduction plans.
Mr Osborne conceded prior to this weekend's talks that meetings between the larger G20 group - which includes emerging economic forces like China, India and Brazil - play a greater role in "setting the global rules of the game".
But he insisted the G7 nations - the United States, Germany, Japan, the UK, Italy, France and Canada - still wield "major economic firepower".
The International Monetary Fund (IMF) said British hopes for an export-led economic recovery are being hit as "declining productivity growth and high unit labour costs are holding back much needed external rebalancing".
The IMF suggested alternatives policy responses as it slashed the UK's growth forecasts for this year and the next.
Its report stated:
In the United Kingdom, other forms of monetary easing could be considered, including the purchase of private sector assets and greater transparency on the likely future monetary stance.
Greater near-term flexibility in the path of fiscal adjustment should be considered in the light of lacklustre private demand.
The International Monetary Fund (IMF) has suggested Chancellor George Osborne should consider changing his austerity plans in the light of "lacklustre" private demand.
In its World Economic Outlook report, the IMF also suggested further action should be taken on monetary policy, potentially including the purchase of private sector assets.
"In the United Kingdom, the recovery is progressing slowly, notably in the context of weak external demand and ongoing fiscal consolidation", the report states.
The IMF noted that rebalancing from the public to private sector was "being held back by deleveraging, tight credit conditions and economic uncertainty".
The International Monetary Fund (IMF) has slashed the UK's growth forecasts for 2013 and 2014 and warned that the private sector is being hampered by a lack of credit and economic uncertainty.
The IMF cut this year's forecast growth from one percent to 0.7 percent, while cutting the projection for 2014 from 1.9 percent to 1.5 percent.
The body noted that the UK's financial recovery was "progressing slowly".
Egypt is seeking to increase its previously-requested £3.2m loan from the International Monetary Fund to cover its soaring budget deficit, the planning minister said in comments carried by two local newspapers today.
"Egypt will intensify its efforts in the spring meetings of the IMF in the period from April 16-21 to receive additional funding to cover the financing deficit until mid-2015," Ashraf El-Araby said in the Al Masry Al Youm newspaper.
"There are ongoing discussions to increase the loan, estimated at $4.8 billion but it may rise, especially with the increase in the budget deficit to $20 billion," he was quoted as saying.
The minister told Al-Mal daily financial newspaper that if a deal with the IMF is not reached before May, talks will be postponed until October when parliamentary elections are expected to start. An IMF delegation is currently in Cairo for loan talks.