Another important function of the Fund is to provide technical assistance within its areas of competence, and also, in this work to include assistance with respect to the implementation of agreed international codes and standards. Financial assistance should function as a catalyst for other sources of finance, and primarily be short term. The Fund's resources must be revolving, and proper private sector involvement should be a part of Fund packages, and Fund programmes should promote credibility and reliability. To address imbalances related to structural problems, the Fund should also be able to provide medium term financial assistance. Fund conditionality should be effective in order to safeguard the resources of the Fund.
Conditionality is also a means to influence countries to implement sound policies.
The private sector must play its part in preventing and resolving financial crises. The Fund must, therefore, act as a catalyst where access limits are respected. A successful return to a realistic catalytic role for the Fund would allow for smaller Fund packages with shorter duration. Even in emergency situations, where financial involvement by the Fund is appropriate, it must be on a more limited scale than what has recently been the case. Due to moral hazard considerations, the Nordic and Baltic countries are not willing to give the Fund a mandate to perform the role of lender of last resort.