Transcript of IMF Press Briefing
IMF News, May 11, 2017
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- Published: May 11, 2017
Events and travel
- Press briefing date: May 11, 2017.
- Press Officer: Bruno Pierre Silvestre. Phone: +1 202 623-7100. Email: MEDIA@IMF.org
- Embargo: briefing embargoed until 10:30 a.m. Washington time.
- Managing Director Christine Lagarde travel:
- May 12 and May 13: Bari, Italy for the G7 Finance Ministers and Central Bank Governors meeting. Three main themes: inclusive growth; security as a global public good; international taxation.
- May 14 and May 15: Beijing for the Belt and Road Forum hosted by Chinese President Xi. Expected remarks at the plenary session on Sunday, May 14th (morning) and at a thematic session on financial connectivity on Sunday afternoon, May 14th. Participation in a leader’s roundtable scheduled for Monday, May 15th. Meetings with Chinese leadership and other senior officials while in Beijing.
- May 20: deliver commencement speech at Washington College in Chestertown, Maryland. Media Relations will provide the speech under embargo.
- First Deputy Managing Director David Lipton accompanying the Managing Director in Bari.
- Deputy Managing Director Tao Zhang travel:
- Tanzania: May 13 through May 18.
- Malawi: May 18 through May 21.
- Deliver a speech at the Central Bank of Tanzania on Wednesday, May 17th (event open to press).
- Regional economic outlooks rollout:
- Released: regional outlook for Central Eastern and Southeastern Europe (this morning).
- Previously released: African regional outlook; Asia-Pacific regional outlook.
- Upcoming: Western Hemisphere Department’s regional outlook (Latin America and the Caribbean) launch in Sao Paulo, Brazil on Friday May 19th at 9:30 a.m. local time. Western Hemisphere Director Alejandro Werner to present; event to be webcast live on IMF.org.
Greece — policy agreement and debt sustainability discussions
- Status summary:
- IMF has come to preliminary agreements on economic policies essential for Greece (announced the prior week).
- Next phase described as the "second leg of the stool": restoring debt sustainability for Greece.
- No change in IMF position since the agreement on policy was achieved last week.
- Debt discussions:
- Paul Thomsen, Director of the European Department, emphasized that restoring debt sustainability must accompany policy reforms.
- Discussions on debt sustainability "are only just getting underway."
- The IMF requires a credible strategy to restore debt sustainability to proceed to the Executive Board with a firm proposal.
- On specific negotiation points and timelines:
- IMF declined to confirm reports of agreement on the primary surplus or on IMF participation in the EU program; stated that discussions are continuing.
- When asked directly whether discussions have started: response was that they "have started in a fashion" but no precise details on locations or timing were provided.
- IMF reiterated it will not go to its Board unless there is a credible debt sustainability component included in the package.
- Consequences and conditionality:
- Completion of the second review and any subsequent disbursement are contingent on a credible debt sustainability strategy being part of the overall package.
- IMF will not comment on detailed domestic political preconditions (e.g., commitments from opposition parties) at this stage.
France — priorities for reform
- Managing Director congratulated Emmanuel Macron and indicated intention to continue collaboration with France.
- IMF identified three main reform priorities from the 2016 Article IV review:
- Reverse the trend of rising public debt by limiting the growth of government spending via various reforms, potentially creating room to alleviate France’s heavy tax burden.
- Strengthen job search incentives under the unemployment and welfare benefits system, and adapt education and training to the French labor market.
- Ease business regulations and open up access to regulated professions to support a job-rich recovery.
- IMF will revisit France in the 2017 Article IV consultation and provide further commentary after the mission.
Sri Lanka — Inland Revenue Act and program review
- Staff-level agreement in Sri Lanka reached on May 3rd (last week).
- Agreement is subject to completion of a prior action: submission of the Inland Revenue Act to Parliament (agreed earlier this year).
- IMF legal experts are analyzing the content of the new draft bill and are in discussions with the Sri Lankan authorities.
- The likelihood and timing of completing the second loan review and authorizing a third disbursement depend on resolution of the prior action and legal analysis.
Press logistics and next briefing
- Next regular briefing scheduled in two weeks.
- Reminder: current briefing embargoed until 10:30 a.m. Washington time.
Transcript of IMF Press Briefing — May 11, 2017. IMF Communications Department.