Transcript of IMF Press Briefing
IMF News, September 28, 2017
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- Published: September 28, 2017
Opening remarks and Media Relations logistics
- Speaker: William Murray, IMF Deputy Spokesman.
- Date: September 28, 2017.
- Embargo: embargoed until 10:30 a.m. Washington time.
- Contact: IMF Communications Department, MEDIA RELATIONS, Phone: +1 202 623-7100, Email: MEDIA@IMF.org.
- Personal note: Announcement of impending retirement of Bruno Silvestre, a member of the Communications Department; Bruno is noted as the only two-time Emmy Award Winning member of the department.
Upcoming events and Managing Director engagements
- September 29th: Managing Director Christine Lagarde to deliver a keynote speech at a conference commemorating 20 years of independence of the Bank of England on the impact of technology on central banking.
- October 2nd: Citi Tech for Integrity Challenge award ceremony at IMF Headquarters; Managing Director Lagarde to speak on the social and economic impact of corruption and the Fund's role in fighting corruption at 3:30 p.m.
- October 5th: Managing Director Lagarde to deliver a Curtain Raiser Speech for the IMF/World Bank Annual Meetings at the Harvard Kennedy School of Government in Cambridge, Massachusetts, followed by a conversation moderated by Professors Larry Summers and Nicholas Burns.
- Week of October 9th: IMF/World Bank Annual Meetings at IMF Headquarters and the adjoining World Bank Headquarters complex.
- Annual Meetings events include seminars on inequality, fintech, global imbalances, corruption, and two conferences:
- Conference on the future of globalization featuring Angus Deaton and Paul Krugman.
- "Toward 2030" conference with keynote addresses by Dani Rodrik and Ricardo Hausmann.
- Surveillance publications timeline during Annual Meetings:
- Main chapters of the World Economic Outlook to be released publicly on Tuesday, October 10th; presentation by IMF Economic Counsellor and Research Department Director Maury Obstfeld at 9:00 on October 10th.
- Main chapter of the Global Financial Stability Report to be presented by Financial Counselor and Director of Monetary and Capital Markets Department Tobias Adrian at 8:00 a.m. on October 11th.
- Latest Fiscal Monitor to be released on October 11th and presented by Fiscal Affairs Department Director Vitor Gaspar at 9:30 a.m.
- The full lineup includes details of the 36th Meeting of the International Monetary and Financial Committee; Agustin Carstens of the Central Bank of Mexico is chairman of the Committee.
Greece — banking sector, nonperforming loans (NPLs), and program status
- IMF position reiterated:
- Need for Greece to have a medium-term strategy to deal with its exceptionally high level of nonperforming loans over the medium term.
- The ECB has suggested bringing forward already-scheduled stress tests and undertaking targeted asset reviews (AQR) to assess whether the current strategy for ensuring the soundness of the banking system is adequate.
- The IMF regards the ECB proposal as a constructive approach that achieves the same broad objectives; exact modalities are being discussed with ECB colleagues.
- References to prior IMF statements:
- July staff report is detailed and referenced for context on the IMF’s position; the need to deal with NPLs is emphasized.
- IMF financing remains subject to reviews under the program and precautionary arrangement; IMF financing is tied to implementation of economic policies.
- Key objective: ensure Greece is in a sustainable debt position and back on a path to sustainable and productive economic growth.
- Operational notes:
- Limited additional comment available from Mr. Murray; discussions ongoing with ECB and Greek authorities.
- Managing Director Lagarde planned to have private meetings in London that include a meeting with Greek bankers.
Ukraine — pension reform and anti-corruption court
- IMF emphasis:
- Pension reform implementation remains a critical condition for the fourth review of the IMF program with Ukraine.
- The IMF urges authorities and parliament to ensure the adopted pension law achieves the objective of the reform, which was worked out in liaison with the IMF and the World Bank.
- IMF staff stand ready to cooperate on any revisions the draft pension law may require to meet reform objectives.
- Anti-corruption court:
- Question raised about conditionality on establishing an anti-corruption court; Mr. Murray did not provide additional detail in this briefing beyond reiterating pension reform importance and recent IMF engagement (First Deputy Managing Director David Lipton’s recent visit).
Zimbabwe — arrears, policy advice, and financial sector focus
- Current constraints:
- Zimbabwe has been in arrears to the Fund and to other institutions for some time.
- IMF assistance in absence of financing:
- IMF staff are providing policy advice and capacity development.
- Financial sector is a particular focus due to difficulties in securing access to dollars.
- IMF recommendations and diagnostic points:
- Underlying causes identified include the need for financial consolidation so that the government does not persistently spend more money than it has.
- Structural reforms are needed to improve competitiveness and facilitate capital inflows.
- IMF encourages timely economic adjustment and reforms to help Zimbabwe realize its potential.
Republic of Congo (Congo, Brazzaville) — debt assessment and mission
- Status update:
- At the request of the Republic of Congo authorities, an IMF staff team is currently in Brazzaville.
- Series of contacts since February on a possible IMF program; this mission is likely the third such mission.
- Mission objectives: take stock of recent economic developments, finalize the assessment of Congo's debt, and update current macroeconomic projections.
- No comment provided on reports involving Lucien Ebata.
Pakistan — reported removal of restrictions
- Question noted about reported IMF comment that Pakistani authorities said restrictions would be removed within a year, followed by reporting that the government planned to impose more restrictions.
- IMF response: Mr. Murray deferred and indicated Media Relations would follow up; no substantive clarification provided during this briefing.
United States — tax reform proposal assessment
- IMF activity:
- IMF staff in the Western Hemisphere and Fiscal Affairs Departments are analyzing the U.S. tax reform proposals; analysis is a work in progress.
- Reference to recent U.S. staff report: IMF agrees tax reforms are important and necessary.
- Policy perspective highlighted:
- The IMF report stresses supporting low- and middle-income households and promoting investments in human and physical capital formation to achieve broader-based improvements in living standards over the medium term.
- General principle: tax reform is needed; IMF will examine details before drawing firm conclusions.
Research and thematic work referenced
- Recent IMF work referenced includes:
- A report on slow wage growth as part of the World Economic Outlook and related surveillance activity; Mr. Murray noted Deputy Managing Director Tao Zhang addressed related puzzles (slow wage growth, productivity puzzle) at the National Association of Business Economics annual meeting.
- IMF view on monetary policy:
- On Fed policy: IMF view is that removal of accommodation by the Fed should be gradual and data dependent; current developments appear consistent with that characterization.
Transcript of IMF Press Briefing, William Murray, IMF Deputy Spokesman, September 28, 2017.