Transcript of a Press Briefing by Gerry Rice, Director, Communications Department, International Monetary Fund
IMF News, June 6, 2014
Source details
- Canonical URL
- Transcript of a Press Briefing by Gerry Rice, Director, Communications Department, International Monetary Fund
Other formats
Bibliographic details
- Published: June 6, 2014
Announcements and logistics
- Briefing date/location: Washington, D.C., June 5, 2014; transcript dated June 6, 2014.
- Embargo: Briefing embargoed until 10:30 a.m. (Washington time).
- Managing Director Christine Lagarde engagements:
- June 6: In London for a press conference at the conclusion of the Article IV mission for the United Kingdom; deliver the 2014 Amartya Sen lecture at the London School of Economics.
- June 9: In Montreal to speak at the Conference of Montreal, the International Economic Forum of the Americas.
- Article IV mission season: Major Article IV concluding missions and statements ongoing; recent missions mentioned include Japan and China, and upcoming U.S. press conference on June the 16th.
Greece — report publication, meetings, and program status
- Publication timing:
- IMF expects the package of documents related to Greece “very soon, in the next few days.” Delay attributed to “an internal processing issue.”
- Rationale for timing: IMF wants to “put it out in a way that's convenient to you” and provide embargoed advance time to digest the “big package.”
- Meeting confirmation:
- Meeting took place in Paris on Tuesday (week of briefing) between Managing Director Lagarde, Greek Finance Minister Mr. Stournaras, and Paul Thomsen (mission chief).
- Purpose described as discussions “on the way forward for Greece and on issues of common interest.”
- IMF did not provide readout or details of meeting content.
- Program status:
- IMF approved the fifth review and the disbursement “last Friday” and those actions are “going ahead.”
- Current IMF program runs “until early 2016.” The program remains the “main focus” of the Fund’s work; regular reviews and conditionality will continue.
- IMF expects a team to “briefly visit Athens in July” and “the mission to conclude after the summer.” Final confirmation of Mr. Thomsen’s July travel to be provided later.
- Debt restructuring and future programs:
- IMF acknowledged Greece’s recent return to the market as “an important milestone” and a “first step to full market access.”
- On the question of a possible third program, IMF reiterated the existing program runs until early 2016 and remains the operative framework; programme reviews allow adjustments as agreed with authorities.
- Banking sector and non-performing loans:
- Deputy Managing Director had said “Addressing the very high level of non-performing loans remains an important priority” and emphasized banks should be “adequately capitalized up front to recognize losses on the basis of realistic expectations about loan recovery.”
- IMF noted no acute stability risk detected but stressed ongoing risks and indicated the forthcoming package of documents should provide more detail on bank capital needs and related assessments.
Communication practices and transparency
- IMF practice: Management routinely has private meetings with member government officials; not all private meetings are proactively communicated. The Paris meeting was confirmed in response to a media question.
European Central Bank (ECB)
- IMF reaction to ECB action: IMF “strongly welcome[d] the very proactive stance taken by the ECB” after the ECB “decided to slightly cut rates.” IMF noted encouragement that President Draghi “indicated that the ECB would be willing to do more if necessary.”
Egypt
- Engagement status:
- IMF “broadly stand[s] ready to support Egypt” and looks forward to policy dialogue on “policy actions and wide ranging structural reforms.”
- Ongoing technical assistance focus: tax and VAT issues.
- Technical team visit: April 27th to May the 2nd.
- Article IV timing: During April spring meetings IMF and Egyptian authorities agreed to hold the Article IV consultation “sometime after the presidential election.” With the election completed, “no mission dates set as yet.”
Ukraine
- Presidential assurances:
- Mr. Poroshenko “published and shared with our board an open letter supporting the program.” IMF will work with him and colleagues to restore macroeconomic stability.
- IMF stated the letter “has been published.”
Sri Lanka
- Program status:
- Sri Lanka “successfully completed its standby arrangement with the IMF in April 2012 and does not currently have a program with the Fund.”
- Terms and conditions of that standby were “clearly outlined in the government's letter of intent” and staff reports; these were “published as usual on the IMF's website.”
- IMF statement: “There are no further side agreements.”
Portugal
- Constitutional court ruling implications:
- IMF is “discussing the implications of the constitutional court ruling with the Portuguese authorities” and will “explore the options” after assessing implications.
- IMF will not speculate further on program conclusion timing; question raised about whether the board could conclude the last program evaluation by the end of June was not definitively answered.
Ghana
- Program interest and assessment:
- Ghanaian authorities “have not requested a new program from the IMF.”
- IMF board discussed Ghana’s Article IV review in “early May”; the staff report was “published last week” and is available on the IMF website.
- IMF advice: Whether or not financial assistance is sought, IMF “encourage[s] the authorities to embark on a faster and a more ambitious consolidation path” to reduce financing needs and preserve spending in health and education, and to expand targeted cash transfer programs.
Italy
- Article IV timing:
- The Article IV mission team is in Rome; mission expected to conclude “the middle of this month, couple of weeks.” Concluding statement to follow in the usual way.
Argentina and sovereign debt restructuring
- U.S. Supreme Court case and systemic implications:
- IMF remains “deeply concerned about the broad systemic implications that the lower court decision could have for the debt restructuring process in general.”
- Whether the U.S. Supreme Court will take up the holdouts’ case is a matter for the U.S. Judiciary.
Transcript of a Press Briefing by Gerry Rice, Director, Communications Department, International Monetary Fund