By making an alternative line of funding available, the provision of financial support from EU partners and the IMF under the Programme buys time for Ireland to reduce these two problems. The financing package of the Programme does not itself reduce the risks. For one thing; it is not a bail-out, (which would entail a lowering of the net present value of the debt).
This includes: identifying a set of indicators or risk parameters to trigger the activation of the instrument; analysing their transmission mechanism and impact in order to allow a more precise calibration and; identifying possible loopholes or unintended effects that could undermine their efficacy.