This communication with national audiences is also important given that economic conditions may at times diverge in different parts of the euro area.
According to the IMFC’s Prague communiqué, the official response to capital account crises should distinguish between cases where debt restructuring appears unavoidable and other cases where the debtor country seems to be undergoing a relatively short-term crisis of confidence. Regarding restructuring cases, a consensus exists within the international community on a systematic application of PSI.