This NAB like vehicle could borrow as needed from countries, including the United States and China, as well as tap financial markets. It would offer large lines of credit to illiquid countries like Italy, with conditionality intended to help such countries resume borrowing from markets at reasonable cost.

And it has an institution that can channel help the International Monetary Fund. The IMF could set up a special vehicle along the lines of its New Arrangements to Borrow (NAB), which would be capitalized by a first loss layer from the EFSF with the IMF s own capital comprising a second layer.

As things stand now, the G 20 meeting will produce some concrete results the resources of the International Monetary Fund are likely to be effectively doubled, mainly by using the mechanism of the New Arrangement to Borrow (NAB), which can be activated without resolving the vexing question of reapportioning voting rights in the IFIs.