It provides European level financing for individual governments – so relieving them of the need to go to private capital markets – for a period of time, subject to conditions. The European Central Bank is undertaking some operations to stabilise dysfunctional bond markets and is ensuring abundant liquidity in money markets.
The IMF has also committed to make funds available and will play a role in ensuring conditionality requirements are met. The final element is that governments are committing to reduce budget deficits and thus control the future rise of debt, though debt will keep increasing for a few years.