Transcript of a Press Briefing by David Hawley, Deputy Director, External Relations, International Monetary Fund

IMF News, August 25, 2011

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Briefing under embargo until 10:30 Washington, that's 1430 GMT.
Press registration for the Annual Meetings of the IMF and World Bank is open.
Next press briefing scheduled for September 8.
Bulk of media events at the Annual Meetings will be during the week beginning September 19.
IMFC (International Monetary and Financial Committee) is at the end of that week, on September 24.
Managing Director Christine Lagarde and First Deputy Managing Director John Lipsky will attend the Jackson Hole Symposium this weekend hosted by the Federal Reserve Bank of Kansas City; the Managing Director will be on a panel on Saturday approximately midday or early afternoon Washington time.
Dominique Strauss-Kahn: as a former Managing Director he would be welcome to visit the Fund; a personal visit is expected and it "could be as early as next week"; such a visit would be personal/private and not open to press or public.

IMF is monitoring developments in Libya and "hope[s] of course that there will be a swift end to the civil conflict."
Future IMF engagement will depend on "the wishes of any internationally recognized government in the country."
The Fund's process of recognition of a new government is guided by the views of the international community—i.e., the Fund follows the wishes of its member countries (187 members).
On frozen assets: "Not that I'm aware of, no."
On crude oil exports: IMF has an assessment that exports have "already entirely stopped" and that the drying up of exports has occurred; a more informed economic assessment will await stabilization of the situation.
Libya may be discussed at the IMF meetings; IMFC agenda not finalized and representation for Libya is unknown.

The fifth review mission is currently in Athens and "it's expected to conclude its work around September 5."
Assuming agreements are in place, the IMF Executive Board "could be in a position to consider approval of the next disbursement toward the end of September."
On PSI (private sector involvement): only "50 percent" of the banks so far have signed up (as cited in the briefing). The PSI is "not contingent -- is not part of the fifth program review."
No request for a new program has been received by the IMF: "We haven't had a request for a new program."
On potential Fund share in past distributions: "in the past it has been approximately two-to-one" (Fund-to-Europe distribution), but "it is not set in stone what the share of a Fund-European distribution of financial support is."
On a two-part agreement between Greece and Finland: IMF notes discussions are ongoing among Euro Area member states and "we don't have a specific comment on that discussion" at this time.
IMF financing and decision-making: "the Fund is very adequately financed at the current time" and "the decision to support a member country is a function of that member country's needs and financing requirements."

Recent discussions took place in Washington.
Earlier mission postponed; "the next mission is now scheduled for October" (no specific date/time provided in the briefing).
The Fund emphasized "the importance of strong policies, and reforms being necessary to overcome delays and complete the second review."

IMF view: "activity has weakened and become more uneven and the outlook has deteriorated since the (June 2011) WEO."
Key IMF flagship publications will be published on:
- "The World Economic Outlook (WEO)" on September 20,
- "Global Financial Stability Report (GFSR)" on September 20,
- "The Fiscal Monitor" on September 21.
On Japan and intervention: IMF "doesn't comment on specific intervention operations."

IMF welcomed the decision to increase the effective size of the EFSF and "expect[s] that the size of this fund would be adjusted should that need arise."
On euro bonds and fiscal integration: Euro Area Article IV report language noted that "the European stability mechanism could evolve into a European Debt Management Agency if the political will were mustered for limited fiscal integration," including "common bonds backed by enhanced Euro Area fiscal capacity." IMF framed common bonds as "one such option" to improve the functioning of a common currency area.

Managing Director made a statement expressing IMF concern about "the human cost of this worst drought in two generations."
IMF is "in contact with two countries" (regarding response); no further operational details provided.
Somalia: IMF does not have an operational relationship "because there hasn't been a recognized government for many years."
Eritrea: no specific timeline of contacts provided.

Recognition of new governments: Fund follows the wishes of its 187 member countries as the basis for recognition decisions.
Press operations: IMF Press Center is a password-protected site for working journalists.
Embargo reminder: briefing under embargo until 10:30 Washington time and that's 1430 GMT.

Transcript of a Press Briefing by David Hawley, Deputy Director, External Relations, International Monetary Fund — August 25, 2011