Many private investors--most notably those who invested in equities--have taken substantial losses during recent crises. The provision of large financial-assistance packages has been criticized because of a focus on only two possible outcomes for emerging-market economies facing financial difficulties--either default or no default, with the international official community viewed as often endeavoring to avoid default at all costs.
Developing procedures aimed at facilitating intermediate solutions--namely, some form of debt restructuring with private-sector involvement--might, in this view, help avoid disruptive, corner solution outcomes.