The Fund could facilitate these negotiations by offering its good offices to promote a timely, orderly restructuring of private claims. The Fund's effectiveness in this capacity depends critically, however, on its perceived independence. It will not be viewed as a disinterested adjudicator if it is also a major creditor.
The Fund can reduce some of the uncertainty that impedes debt restructurings by providing independent analysis of the future growth prospects of the country concerned, advice on possible adjustment measures, and an assessment of the global economic and financial outlook. With this information at hand, creditors and debtors can then seek market-based solutions. The fourth and final characteristic is transparency and accountability.