The IMF argues that countries sometimes wait too long to seek its assistance, increasing the amount of money required for a bailout and allowing some private investors to cash out their holdings at public expense. The IMF's first Greek rescue program, for example, allowed investors, including German and French banks, to be paid in full, thus avoiding responsibility for their poor lending decisions. The IMF justified this decision by citing the risk of a systemic meltdown.
To better protect its resources in the next crisis, the IMF is considering abandoning this systemic exception and establishing more rigid rules for the model it uses to assess a country's ability to repay its debt. Under the system being considered, the IMF would establish thresholds for debt sustainability, and if a country breaches those limits, it would be judged on its perceived sustainability and ability to access markets. If both sustainability and market access are found wanting, there would be a presumption of limited costs imposed on creditors, forcing the country to temporarily delay repayments to its bondholders in exchange for IMF support.