Transcript of IMF Press Briefing

IMF News, May 23, 2019

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Embargoed until 10:30 a.m., that's Washington time.
Managing Director Christine Lagarde schedule:
- May 29 to 30: in Mexico City; meetings with President Lopez Obrador, finance minister, central bank governor and other government officials; major speech at the Mexican Senate; May 30 participation in a conference organized by the Women's Forum for the Economy and Society.
- June 8 to 9: in Fukuoka, Japan for this year's G-20 finance ministers and central bank governors meeting.
- June 8: delivery of a major speech at the G-20 high level seminar on Financial Innovation, Our Future in the Digital Age.
Around the G-20 meeting IMF will issue the G-20 surveillance note, an update on the global economy.

Background:
- In December last year the IMF Executive Board approved a 14 month standby arrangement for Ukraine amounting to U.S. 3.9 billion.
- U.S. 1.4 billion of that was disbursed following board approval.
Current status and stance:
- The mission is currently in Kiev, having constructive discussions with the authorities on recent developments and economic policies.
- Once the new government has been formed after the elections, IMF stands ready to reengage to discuss further cooperation with Ukraine.
- IMF does not comment on political developments; will reengage post-government formation.

Recent mission:
- IMF staff mission in Buenos Aires from May 8th to the 17th in the context of the fourth review of the program supporting Argentina's reform plan.
- Mission returned from Buenos Aires; discussions with the authorities continue.
- IMF characterized discussions as "important progress having been made".
Process and timing:
- No date provided yet for the conclusion of the mission or the Board consideration.
- Usual IMF process: staff-level discussions and agreements followed by Board approval.
Engagement with opposition:
- IMF staff has met with several members of the opposition party in Argentina as part of previous reviews and broader consultative agenda (government officials, Central Bank, civil society, private sector, trade unions, academia).
- As of the briefing, no direct contact with Alberto Fernandez had been reported.

IMF outlook:
- IMF looks forward to working with Prime Minister Modi's new government.
- Broad recommendation: continue focusing on achieving faster and more inclusive growth with low inflation.
- No granular policy prescriptions provided at this time due to ongoing election counting.

IMF position:
- IMF continues to monitor the economic situation in Turkey very closely.
- Recommends a comprehensive, clearly communicated policy package to secure macroeconomic and financial stability.
- IMF has received no indication from Turkish authorities that they are contemplating a request for financial assistance from the IMF.
- IMF will not speculate prematurely on possible impacts of prospective U.S. economic sanctions related to the S400 purchase.

Concluding statement of Article IV mission issued on May 21.
IMF broadly supports the Canadian government's policies and judges them to be on the right course.
Highlighted housing price risks and noted that the government is taking steps to alleviate these concerns.
A Staff Report with further detail will be published in June.

IMF approved a program to support Barbados.
Program design and safeguards:
- Economic reform and transformation plan designed in close consultation with social partners, including unions.
- A monitoring committee including unions oversees implementation to ensure the burden of adjustment is spread widely.
- Program includes a floor on social spending.
- December and March targets for social spending were met with a margin described as "fairly ample".
IMF fully supports these measures and the emphasis on maintaining adequate social spending.

IMF clarification:
- Discussions with the Republic of Congo in respect of possible Fund support have been exclusively between Fund staff and the authorities; no one else.
- Views expressed in a May 15 letter cited by a question do not represent IMF views.
Status:
- On May 9 a preliminary staff agreement was reached with the Congolese authorities on a program.
- Discussions continue on next steps required for Board discussion and a decision on approval.

IMF stance:
- IMF has been in the forefront of calling for strong debt relief for Greece and supported substantial debt relief that was agreed.
- IMF continues staff missions and post-program monitoring; there are no current IMF financial programs with Greece.
- IMF recognizes the economic progress made by Greece and credits the Greek Government and people; IMF considers itself a contributor to that progress.
On criticisms regarding IMF communication:
- IMF disagrees with the characterization that it tried to hide policy mistakes in Greece; IMF asserts it has communicated openly and transparently over the past eight to nine years.
- The referenced document is an IMF Departmental Paper discussing the growing importance of communication as a policy tool (not an official Fund policy document).

Agreement reached:
- Agreement at staff level on a $6-billion three-year extended Fund facility to support Pakistan's economic reform efforts (announced May 12).
Program aims:
- Improve Pakistan's public finances and reduce public debt.
- Help Pakistan get back on the path to sustainable, more inclusive growth.
- Create fiscal space for a substantial increase in social spending to strengthen social protection, infrastructure, and human capital development.
Mission leadership:
- Ernesto Ramirez Rigo is the Mission Chief; he issued a comprehensive statement at the end of the staff visit.

Press Center: password-protected site for working journalists.
Email notification sign-up available for free e-mail notices when new series and/or country items are posted on the IMF website.
Media contacts listed: PRESS OFFICER: Maria Candia Romano; Phone: +1 202 623-7100; Email: MEDIA@IMF.org
Next press briefings and updates: IMF will continue to engage and provide updates in the period ahead.

Transcript of IMF Press Briefing — May 23, 2019 — IMF Communications Department