The creditor recapitalisation option is far from a done deal but we continue to explore the feasibility of adding it to the options for managing a bank crisis. In the bank creditor recapitalisation case, creditors may recover some or all of their haircut from the subsequent sale of the bank.
4  BIS central bankers’ speeches  The separation between monetary and fiscal policy in EMU, which prevents the use of monetary instruments for solving budgetary problems, further tightens the sustainability requirements for the public finances of the Member States. Rising public debt cannot be curbed by keeping interest rates low or through inflation, but only through budget adjustment.