In case of multiple creditors a coordination problem can arise when the borrowingfirm runs into financial distress …. Even if the project's value at maturity is enoughto pay all creditors in full, some creditors may be tempted to foreclose … creditors, and analyze the signalling effects of the largecreditor's investment decision on the subsequent behavior of the small …

creditors and that several interventions in sequence may be necessary to avert an impending crisis. Absent of the IMF …