Transcript of IMF Press Briefing

IMF News, June 27, 2019

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Published: June 27, 2019

Announcements and Upcoming Events

Briefing date: June 27, 2019.
Communications lead: Camilla Andersen, Communications Department.
PRESS OFFICER: Raphael Anspach — Phone: +1 202 623-7100 Email: MEDIA@IMF.org
Embargo: briefing embargoed until 10:30 a.m. Washington Time.
Scheduled visits and events:
- June 28th and 29th: Managing Director Christine Lagarde and First Deputy Managing Director David Lipton to attend G20 Summit in Osaka, Japan.
- July 5th and 6th: Madame Lagarde to attend the Plenary Session at the B7 Business Summit in Aix-en-Provence, France.
- July 2nd: Mr. Lipton to participate in a Panel at the Ukraine Reform Conference in Toronto.
- July 23rd in Santiago, Chile: World Economic Outlook Update and press conference led by Economic Counselor Gita Gopinath (new global forecasts will be presented).

Argentina — Engagement and Program Review

Meetings confirmed:
- Managing Director expected to meet President Mauricio Macri and Economy Minister Nicolás Dujovne at the G20 Summit in Osaka.
- Alejandro Werner (Director, Western Hemisphere Department) and Trevor Alleyne (Resident Representative in Argentina) met with Alberto Fernández and Roberto Lavagna to exchange views on Argentina’s economic outlook and policy priorities.
IMF approach and messaging:
- IMF proactively engages with political stakeholders, especially in program countries, to hear views and understand objectives and policies.
- Strong, sustained and consistent policy implementation and broad ownership of the economic plan are described as crucial for Argentina's economic stabilization and return to growth.
- The current plan is designed to return Argentina's economy to balance at the end of the program and has been effective in addressing major macroeconomic imbalances.
Fourth Review status:
- Conversations regarding the Fourth Review are ongoing and likely to be touched upon in Osaka meetings; no staff agreement announcement was provided in this briefing.

Egypt

Status:
- IMF is not currently negotiating a new IMF-supported program with Egypt; priority is to successfully complete the current program.
- Discussions on future engagement would follow completion of the current program.
IMF readiness:
- IMF stands ready to support Egypt in transforming the economy to achieve high-sustained growth, job creation, and new opportunities.

Sri Lanka

Program and disbursements:
- On May 13th, IMF's Executive Board completed the Fifth Review of Sri Lanka's 1.5 Billion loan under the Extended Fund Facility; so far $164 million has been disbursed.
- Program extended until June 2020 to help anchor macroeconomic stability following the terrorist attacks.
Market developments:
- Market conditions are normalizing; on June 24th, Sri Lanka successfully tapped the international bond market for 2 billion at five- and ten-year maturities, and the issuance was well oversubscribed.
Policy guidance:
- The Central Bank of Sri Lanka should continue to follow an interdependent approach, adjusting policy rates as warranted by evolving macro-economic conditions.

Zimbabwe

Preconditions for IMF financial assistance:
- IMF cannot provide financial assistance before three conditions are met:

1. Clearing existing arrears to international financial institutions (arrears cleared with the IMF but not with other institutions). 2. Obtaining financing assurances from official bilateral creditors. 3. Reaching agreement on a coherent set of macroeconomic policies to restore economic growth and lay the foundation for job creation.

Current IMF engagement:
- IMF Management approved in May a staff monitored program for Zimbabwe that runs until 2020 to help anchor economic policy and support the reform agenda.
- The staff monitored program supports a large fiscal adjustment, elimination of central bank financing of the fiscal deficit, adoption of reforms for effective functioning of market-based foreign exchange and debt markets, and includes safeguards to protect the country's most vulnerable people.

Moldova

Program background:
- IMF approved a three-year support facility in 2016 under the Extended Credit Facility and the Extended Fund Facility.
- Three reviews have been completed; the last review was in June 2018.
- So far $112 million has been made available to Moldova.
Current mission:
- A mission is in Chisinau reviewing the current IMF-supported program, taking stock of recent economic developments, assessing program implementation, updating the macroeconomic outlook, and discussing macroeconomic and financial policies with the new government and the national bank.

Republic of Congo

Program status:
- An IMF team led by Alex Segura visited Congo in early May and reached a preliminary staff-level agreement for a three-year program under the Extended Fund Facility; a press release was issued to that effect.
Program goals:
- The program would seek to stabilize the economy, achieve more sustainable growth, reduce corruption, achieve greater transparency in public resource management, and restore debt sustainability.
Debt and trade finance:
- IMF is not aware of any new oil-backed loans that would impact debt sustainability.
- The government has confirmed it is disclosing loans to the IMF and has sent reports to parliament on the nature and use of these loans.
- The program does not allow for any new external debt to be contracted by the government.

Additional Notes

IMF engagement with political stakeholders cited recent examples of proactive outreach in Portugal, Jamaica, Mexico, Colombia, and Ukraine.
Press briefing concluded with reminder of the 10:30 a.m. Washington Time embargo.

Transcript of IMF Press Briefing, June 27, 2019 — IMF Communications Department