Transcript of the COM Regular Press Briefing

IMF News, September 27, 2019

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The IMF Executive Board selected Kristalina Georgieva as the new IMF Managing Director and Chair of the Board for a five year term beginning October 1.
Noted historical point: Georgieva is the first person from an emerging market country to head the IMF since its inception 75 years ago in 1944.
Quote from Kristalina Georgieva on meeting Minister Lacunza: "I look forward to working with the Argentine authorities as I take up my duties on October 1. Argentina is an important member of the IMF and we want Argentina to succeed."
Incoming Managing Director’s public engagements:
- October 1: Georgieva begins duties; First Deputy Managing Director David Lipton to be in Berlin with Chancellor Merkel for the annual heads of international financial institutions meeting.
- October 9: Georgieva to give the IMF/World Bank Annual Meetings curtain raiser speech (roughly a week ahead of the Annual Meetings).
- Week of October 14: Annual Meetings begin.
- October 15: World Economic Outlook (WEO) release date; thereafter GFSR and Fiscal Monitor analytical chapters will follow.

Analytical chapters of flagship documents (World Economic Outlook, Global Financial Stability Report, Fiscal Monitor) begin to be released starting October 9 under embargo, with the World Economic Outlook scheduled for October the 15th.
Fiscal Monitor analytical chapter this year focused on climate change.

IMF joined the Paris-based Network for Greening the Financial System (NGFS) on the day of the briefing, noting the network brings together central banks and supervisors to understand and manage financial risks and opportunities associated with climate change.

Recent high-level engagements:
- Kristalina Georgieva met Minister Lacunza at the IMF (her first bilateral meeting with any country).
- First Deputy Managing Director David Lipton met President Macri, Minister Lacunza, and Governor Sandleris in New York; Lipton described the meeting as constructive and said recent Argentine measures helped calm markets.
- IMF staff meetings in Washington involved Alejandro Werner (Director, Western Hemisphere Department), Roberto Cardarelli (Mission Chief for Argentina), Minister Lacunza and his team; characterized as productive for taking stock and discussing macroeconomic framework.
Ongoing dialogue and next steps:
- Another Argentine team expected in Washington on October the 14th (start of the Annual Meetings) for continued discussions.
- IMF statement: it is incorrect to say the IMF has put the relationship with Argentina on hold; discussions continue and the IMF remains fully engaged and committed to helping Argentina achieve long-term stability and sustainable growth.
On disbursements and program conditions:
- IMF declined to characterize specific conditions or timing for future disbursements; noted it will be the outcome of ongoing discussions between IMF management/staff and Argentine authorities.
- It is not uncommon for delays in program disbursements; no firm date or deadline for a disbursement was provided.
- A referenced figure: the $5.4 billion that Argentina is expecting to get from the IMF (question raised in briefing).

IMF engagement norms:
- Primary engagement is with the government and authorities; IMF also meets a wide range of stakeholders (private sector, political parties, academia, think tanks) as part of surveillance and program dialogue.
- IMF confirmed it has engaged with opposition parties in Argentina during staff missions and has observed cross-spectrum support for policies that aim for greater stability and growth.
- On working with president-elects or candidates: IMF did not provide a specific precedent beyond standard practice of engaging with a country’s authorities and a range of stakeholders.

Sri Lanka:
- IMF staff reached a staff-level agreement with Sri Lankan authorities on the sixth review of the program (statement dated September 25 referenced).
- Agreement welcomes Sri Lanka’s commitment to provide fiscal support for recovery from the April terrorist attacks, to protect the most vulnerable, and to reduce high public debt.
Türkiye:
- IMF conducted routine Article IV surveillance mission, concluding on September 23.
- Mission met a range of stakeholders in line with usual practice.
- IMF received no indication from Turkish authorities of a request for IMF financial assistance or a program request.
Mexico:
- Mexico’s flexible credit line (FCL) arrangement amount referenced as 86 billion (86 billion).
- The current FCL expires at the end of November this year.
- Mexican authorities have expressed interest in a successor arrangement prior to the end-November expiration; no discussion of the level or size of access for a successor arrangement was provided.

Incoming Managing Director Georgieva warned of "flashing warning signs" in the global economic outlook and emphasized preparedness; more detailed commentary and numbers to be provided in the curtain raiser speech and the World Economic Outlook led by Gita Gopinath.
IMF indicated factors contributing to downside risks include trade tensions, geopolitical tensions, and Brexit; the WEO release will provide detailed forecasts and any revisions.

Transcript of the COM Regular Press Briefing — IMF Communications Department, September 27, 2019.