IMF admits to mistakes over handling of Greek debt crisis

The International Monetary Fund has admitted to mistakes over its handling of the Greek debt crisis, according to an internal document released today.

Protesters hold a banner in front of the Greek parliament in 2012. Credit: AA/ABACA

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.