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21 July 2012

IMF Economist Accuses Fund of Suppressing Information

A veteran economist at the International Monetary Fund has resigned in protest at what he calls the IMF's failure to head off the global financial meltdown and euro zone crisis, and accused the global lender of suppressing information.

In a resignation letter dated June 18 to the IMF's board and senior staff, Peter Doyle said the IMF's failures to head off both the 2009 global financial crisis and the euro zone crisis was a "failing in the first order" and "are, if anything, becoming more deeply entrenched."

His letter, a copy of which was seen by Reuters, has brought to light simmering tensions within the IMF over the Fund's credibility, which many worry is threatened by its role in the euro zone crisis.

IMF insiders, who asked not to be identified, told Reuters there are concerns within the Fund that it has over-stretched by lending to Europe without exercising the same level of independent judgment it would normally apply in bailouts to emerging economies.