In my view, however, the results of this strategy have not been particularly encouraging in a number of cases. At least three serious drawbacks are apparent: Firstly, the frequent application of this strategy is simply very expensive for the Fund. Secondly, levels of financial assistance that are announced very early on act like a kind of benchmark.
The government committed to a fiscal consolidation process through the Fiscal Responsibility and Budget Management Act in 2003. Notwithstanding the transition in the regime in 2004, the  BIS central bankers’ speeches  3  consolidation path was adhered to. Very significantly, this was not a commitment of the central government alone; the states contributed as well.