In combination with the FSAP, the ROSC program has greatly increased the pressure on emerging markets to adopt reforms to improve economic and financial stability and limit moral hazard. This surveillance should enhance the effectiveness of lending regardless of which institution provides the emergency liquidity.
A third important challenge, reflecting principle number three for operating as an international lender of last resort, is to bolster the ability to say no to countries and, in cases of insolvency, to facilitate the involvement of governments and the private sector. Several years ago the IMF adopted criteria that countries must meet to receive sizable loans.