Transcript of a Press Briefing By Thomas C. Dawson, Director, External Relations Department, IMF

IMF News, October 10, 2002

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Canonical URL: Transcript of a Press Briefing By Thomas C. Dawson, Director, External Relations Department, IMF

Date and setting: October 10, 2002; Washington, D.C.
Speaker: Thomas C. Dawson, Director, External Relations Department, International Monetary Fund.
Procedural notes:
- The briefing was embargoed until approximately 15 minutes after conclusion; embargo lifted at 10:00 a.m.
- The briefing occurred about ten days after the Annual Meetings in Washington.

Purpose:
- First Managing Director trip to the Maghreb region since he became Managing Director in May 2000.
- Opportunity to explore and discuss issues with President Taya of Mauritania, President Bouteflika of Algeria, and President Ben Ali of Tunisia.
- Roles to be discussed include recent developments, issues confronting these countries and the region, and the role and readiness of the Fund to assist with reform and liberalization.
Delegation:
- George Abed, new Director of the Middle East Department, will accompany the Managing Director.
- Mr. Hawley will be representing (role unspecified in transcript).

Dates: 23rd and 24th (month not restated in transcript).
Event: Opening ceremony of the East Africa AfriTAC, one of the first two African Technical Assistance Centers established to assist the region by providing technical assistance from the Fund.
IMF participation:
- Eduardo Aninat, Deputy Managing Director, will give an address at the opening ceremony.
- Lucie Mboto Fouda (External Relations Media Relations office) will attend and serve as a contact for regional colleagues.

Topic: Interaction between major workouts of bad loans in the banking sector and broader policy stance.
Key points:
- Appropriate monetary policy supportive of restructuring is an IMF position that has been restated.
- Reference made to Mr. Rogoff's comments as clarifying the Fund position.

Program context: Completion of the fourth review of Turkey's program is tied to release of the next tranche of around $1.6 billion.
Preconditions: The Turkish Government needs to fulfill all pre-actions; one cited prior action not completed is the tax reform bill.
Timing and engagement:
- IMF is continuing talks with the outgoing government rather than waiting for the new government from the November 3rd elections.
- Rationale: IMF does not always have the luxury to wait for a new government and considers it productive to continue discussions; if talks cannot be concluded prior to November 3rd, they will be continued thereafter.
- Completion of the fourth review “is certainly a possibility” with the new government, but not certain.

Status of discussions:
- Argentine economic team had been in Washington for two weeks; discussions ongoing and progress made but not concluded.
- No numbers have been discussed yet, per First Deputy Managing Director Anne Krueger.
Issues under discussion:
- Overall fiscal stance — some progress achieved.
- Need to develop a monetary anchor and issues related to the emparo program — not completely resolved.
- Legal-side problems.
Multilateral debt/default:
- Recent development noted: Argentina in default on some World Bank debt (specifically a Bank-guaranteed bond), described as unfortunate.
- Date cited in press questions: November 9th mentioned as a drop-dead date related to the grace period of the Bank; Mr. Dawson had “nothing to say” on that specific timing but noted it relates to the Bank’s grace period.
- IMF stance if Argentina misses a grace period: IMF would continue trying to work with authorities to resolve problems; further missed obligations would be “a further unfortunate development” but would not change IMF intention to assist.

Status:
- Authorities are in a pause in negotiations in light of approaching elections on October 20th.
- IMF’s operating presumption: negotiations would go forward with a new government.
- IMF remains in close contact with authorities.

Context:
- Presidential election advanced to a runoff (second round).
- IMF position: looks forward to working with any government committed to policies that have served Brazil well; both runoff candidates made supportive statements.
- IMF will engage with the government that wins in slightly more than two weeks (from the date of the briefing).

Press protocols: Good decorum requested in identifying oneself and institution.
Media: Press briefing made available via Media Player.
Contacts: Lucie Mboto Fouda available for regional liaison regarding AfriTAC opening.

Transcript of a Press Briefing By Thomas C. Dawson, Director, External Relations Department, International Monetary Fund — October 10, 2002