Better then to face up to the rescheduling problem first, because that is one sword of Damocles that is hanging over the economy, seriously undermining confidence in it. Take it away and remove it through negotiations. That is what Korea has already done successfully. Then, after rescheduling, the economy can turn around and deal with the moral hazard problem internally, according to its laws. This brings us to the third priority, that of facing up to the internal banking crisis.
Some banks have to be closed, because they are both illiquid and insolvent.
Others may have to be rehabilitated, because they are not insolvent or because they have a special role to play. The catch for many economies is to make the appropriate distinction. This is where clear ground rules are important. This is where internal political power plays need to be kept at bay. It can then perform its crucial function of bringing the rest of the economy back to its feet.