Transcript of IMF Press Briefing

IMF News, November 15, 2018

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PRESS OFFICER: Ting Yan; Phone: +1 202 623-7100Email: MEDIA@IMF.org
Transcript date: November 15, 2018
Briefing embargo: until 10:30 a.m. (Washington time)
Christine Lagarde engagements and dates:
- In Singapore for the ASEAN Summit and the Singapore FinTech Festival (speech on central bank digital currency) — speech delivered the day before the briefing.
- November 17 — in Papua New Guinea for the APEC leaders meeting.
- November 26 — deliver opening remarks at the high level conference on Building Resilience in Disasters and Climate Change in the Caribbean (at the IMF); Deputy Managing Director Tao Zhang to moderate closing panel.
- November 29 to December 1 — in Buenos Aires, Argentina to participate in the G20 Summit; speak at a high level investor forum on November 29; expected to hold bilateral meetings including with Argentine authorities.
- December 4 — deliver the eighth Kissinger Lecture at the Library of Congress (evening of December 4, open to press, streamed live).
Other IMF events:
- November 19 to 20 — sixth statistical forum on measuring economic welfare in the digital age; David Lipton to make remarks; Christine Lagarde to have a one-on-one discussion with Jim Baselli.
- December — Deputy Managing Director Carla Grasso to conduct the high level dialogue on IMF capacity development and growth in Fiji marking the 25th anniversary of the Pacific Financial Technical Assistance Center.

IMF issued a staff report on the UK published the day before the briefing (referred to as "staff report on the UK" with detailed Brexit scenarios and numbers).
Key IMF positions and observations:
- The situation is "fluid."
- IMF encourages the UK and the EU to reach a timely agreement accompanied by an implementation period to avoid a cliff edge and to allow firms and workers sufficient time to adjust.
- A disorderly Brexit is described as "the biggest risk to the outlook for the UK."
For detailed analysis, the briefing refers stakeholders to the staff report.

Background:
- Earlier in the year the IMF Executive Board discussed Venezuelan data and issued "a declaration of censure" against Venezuela for failure to implement remedial measures and to comply with data provision obligations.
Current status reported:
- IMF staff have had ongoing discussions with Venezuelan authorities regarding data provision; those contacts have continued in recent days.
- The IMF is "hopeful" discussions will lead to a productive conclusion.
- No specific readout of discussions, dates, or a confirmed deadline (IMF would not confirm a November 30 deadline).
- The IMF expects the Executive Board to meet "in the coming weeks" to consider the issue.

Reference: Staff-level agreement on a new 14-month standby arrangement announced on October 19.
Status and conditions:
- Authorities are implementing prior actions required for Board approval.
- A small IMF team visited Kiev the previous week to assist with preparations.
- Expected Executive Board consideration "later this year" after implementation of prior actions including:
- Parliamentary approval of the 2019 budget.
- An increase in heating tariffs in line with agreements reached.
IMF program focus areas (as described in the October 19 statement): fiscal consolidation, reducing inflation, strengthening tax administration, the financial sector, and the energy sector.

The Argentine Senate approved the 2019 budget.
IMF reaction:
- Passage of the 2019 budget is viewed as "a very positive step."
- It signals "clear commitment" by Argentine authorities and a broader spectrum of political forces to strengthen economic policies.
- Managing Director Christine Lagarde stated that passage into law is "key to restoring confidence and ensuring policy continuity."
Christine Lagarde is expected to meet President Macri during her Buenos Aires trip (no date/time confirmed).

IMF no longer has a financial arrangement with Greece; it conducts "post-program monitoring."
IMF position:
- Does not impose policies on member countries.
- Urges Greece to use all tools to achieve "more growth friendly socially inclusive policies."
- Would support freeing fiscal space for growth-friendly measures if the 2019-2020 prelegislative package allows it.
Monitoring visits to Greece expected "early next year" (exact date to be confirmed).

An IMF mission team is currently in Maputo updating the macroeconomic framework and preparing groundwork for subsequent work, including a joint IMF/World Bank debt sustainability analysis.
IMF aware that Mozambican authorities announced an agreement in principle on debt restructuring with a group of Euro bond holders.
Fund staff will study implications of that agreement for debt sustainability in the upcoming debt sustainability analysis update.

IMF is monitoring political developments and remains in contact with technical counterparts.
The IMF has an ongoing program with Sri Lanka; it is "too early to assess" implications of recent political developments for the program.

A staff team is in Islamabad and expected to remain "at least until next week" for discussions on a possible new program.
A communication is expected at the end of the visit (timing: should be sometime next week).
Press reports quoted Pakistan’s finance minister expecting a program request "on the order of five to six billion dollars"; IMF staff declined to confirm scope or timing pending conclusion of mission discussions.

Transcript of IMF Press Briefing, November 15, 2018