Brexit has the potential to unleash centrifugal forces, leading perhaps to a breakup of the euro, especially if such a referendum were to be held this time in a major eurozone country. Perhaps such a referendum is more likely in a southern eurozone country.
An important initiative to reposition the Fund once again as a crisis manager came to be known as the private sector involvement (PSI) initiative. PSI encapsulates the official sector’s attempt to engage the private sector in crisis resolution more effectively. The private sector has to assume responsibility for its investment decisions.