To achieve these objectives, we don’t have to reinvent the wheel. We have the model of the IMF to guide us. I would just make three main points in this respect. First, the best way to avoid moral hazard is to attach strong conditionality to any support package.
In addition, any financial support has to be at penalty rates, as it is the case for the IMF. Over time the IMF-style conditionality has led to a sharp reduction of the number of countries resorting to the IMF. No country turns happily to the IMF for financial support.