Transcript of IMF Press Briefing

IMF News, July 25, 2019

Source details

Briefing date: July 25, 2019.
Embargo: briefing embargoed until 10:30 a.m., Washington time.
Next press briefings: this was the last press briefing before the Executive Board recess in August; resume likely in the latter part of August.
Annual Meetings press registration begins Thursday August 1st.
Regional Economic Outlook (REO) for the Western Hemisphere to be released Monday July 29, 9:30am, led by Alejandro Werner.
Recent release: World Economic Outlook (WEO) update issued in Santiago, Chile earlier that week.

Selection determined by the IMF Executive Board, representing the Fund’s membership.
July 16th press release: Board indicated it would move the selection process for the managing director forward expeditiously.
Board expected to meet “very soon” to discuss the selection process and to communicate details including the timeline.
Process described as open, transparent, and merit based; member countries or groups of countries propose and nominate candidates, and the Board makes the decision.

IMF reaffirmed a “strong and positive relationship” with Mexico following Managing Director Christine Lagarde’s visit to Mexico City.
WEO update revised Mexico’s growth forecast down somewhat since April; IMF noted the Mexican economy “continues to demonstrate resilience” and highlighted Mexican authorities’ commitment to prudent policies including fiscal consolidation.

Board completed the fourth review of Argentina’s program on July 12th; Acting Managing Director David Lipton said authorities continue to show strong commitment and meet applicable targets.
IMF view: Argentina “beginning a gradual recovery from last year's recession,” with improvements in financial markets and fiscal and external positions.
IMF supports the Central Bank of Argentina’s monetary policy framework and recent technical adjustments aimed at declining inflation and smooth financial system functioning.
Growth forecast revisions:
- 2019 forecast revised down slightly from the April WEO.
- Recovery in 2020 projected to be more modest.
- Revisions reflect weak outturns in Q1, especially domestic demand and imports, and downward revisions to regional trading partners (Brazil).
- Recovery supported by agricultural production rebound and gradual rebuilding of real salaries’ purchasing power.

IMF staff support the ECB’s commitment “to maintain strong accommodation in its monetary policy for a prolonged period of time” and its willingness to consider further accommodative steps if necessary.

IMF expressed sympathy for lives lost due to the Ebola epidemic in DRC.
IMF monitoring and assessing the situation closely; staff in contact with DRC authorities.
Economic impact not yet clear; Fund has “ample scope within the Fund's lending facilities to provide financial support, if needed,” and stands ready to take action.

Context: 1.6 billion precautionary standby arrangement with the IMF comes to an end.
IMF office (ResRep) to remain in Jamaica for two years after program expiration to support post-program transition, Article IV process, and capacity building.
Since 2013, Jamaica has had consecutive IMF-supported programs and an “exemplary track record of economic reform.”
Such post-program offices are “not an unusual arrangement” and are not unique to Jamaica.

IMF supports reform of the Monetary Law Act as a key milestone toward a flexible inflation targeting regime.
Establishing price stability as the Central Bank’s primary objective and phasing out Central Bank financing of the fiscal deficit are seen as important to strengthen macroeconomic fundamentals, improve resilience, and foster stronger and more inclusive growth.

IMF staff concluding statement to Lebanon: rebalancing the economy under an exchange rate peg requires strong implementation of a large and credible fiscal adjustment and ambitious structural reforms.

Recent approved arrangement: standby arrangement “in the order of about $3.9 billion”; a disbursement was made following Board approval.
IMF mission visited Kiev toward the end of May to discuss developments and policies, including with the new government.
IMF team “stands ready to return to Kiev” to continue discussions after Parliamentary Elections and once the new government clarifies policy intentions.
Reference in question to a possible $2 billion loan in the year; IMF response focused on the existing ~$3.9 billion arrangement and mission readiness.

IMF Board approved a $12.3 million financial support program to Comoros to help with cyclone aftermath.
Support intended to help authorities and people of Comoros overcome difficulties; part of broader IMF disaster-response support (example cited: Mozambique).

Transcript of IMF Press Briefing. July 25, 2019. IMF Communications Department.