Greece 'boxed in' as EU and IMF fight over nation's debt relief plan

IMF distances itself from policies underpinning bailout as Greek officials worry that war of words may lead to IMF pulling out of rescue programme

The row over how to stabilise the indebted Greek economy has resurfaced with renewed vigour after the European Union on Tuesday angrily rejected charges by the International Monetary Fund (IMF) that its current rescue programme is "not credible".

The spectre of the country's economic crisis flaring up again deepened as the extent of the differences between creditors was laid bare. Caught in the middle, Athens also ratcheted up the rhetoric, as its finance minister told the Guardian that the IMF was "economising with the truth".