Transcript of IMF Press Briefing
IMF News, February 27, 2020
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- Published: February 27, 2020
Announcements and contact details
- Date: February 27, 2020
- IMF Communications Department — MEDIA RELATIONS
- PRESS OFFICER: Brian Walker
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- Twitter: @IMFSpokesperson
- Managing Director Kristalina Georgieva will be in Bogotá, Colombia on March 5th to participate in the Forum on Why Women's Economic Empowerment is Crucial and to meet with the President and Government officials.
- Deputy Managing Director Tao Zhang will be in Greece at the Delphi Forum to speak and meet with Prime Minister Mitsotakis and other authorities.
Pakistan: Staff-level agreement and financing
- A Staff-level agreement was reached for the Second Review of the IMF-supported program in Pakistan.
- The Staff-level agreement is subject to approval by IMF Management and Executive Directors.
- Expected timing of approval: early April.
- Expected disbursement, if approved by the Executive Board: around $450 million to Pakistan.
Somalia: Debt relief pledges and decision point timing
- The IMF secured sufficient financing pledges to allow the Fund to provide comprehensive debt relief to Somalia.
- Over 100 IMF-member countries have pledged to provide somewhere around 334 million in financing.
- Expected timing for Somalia to reach the decision point for debt relief: by the end of March.
Coronavirus (COVID-19) — assessment, scenarios, and IMF role
- IMF framing: due to high uncertainty the IMF is assessing the situation in terms of scenarios rather than specific projections; planning is shaped around those scenarios.
- World Economic Outlook (WEO) outlook:
- The IMF is likely to downgrade global growth projections in the World Economic Outlook in April.
- No specific numeric downgrade provided at this briefing.
- Coordination and policy response:
- The IMF emphasizes coordinated and synchronized international action (health measures plus carefully targeted macro support) if the outbreak worsens.
- The IMF is in daily contact with the World Health Organization, The World Bank, regional development banks, and other partners.
- Examples of country-level policy responses observed: fiscal measures and monetary measures already being taken by some countries, including China.
- IMF financial instruments and assistance options highlighted:
- Rapid Financing Instrument (RFI) and Rapid Credit Facility (RCF) — quick disbursing facilities to support countries with balance of payments problems arising from epidemics or natural disasters.
- Catastrophe Containment and Relief Trust (CCRT) — can provide upfront grants for immediate debt relief so countries’ resources are not diverted from emergency response.
- Augmentation of existing IMF programs — add resources to ongoing programs where countries with existing programs are affected by the health emergency.
- IMF staff travel and missions:
- Mission travel by IMF staff has been suspended to China, including Hong Kong and Macau.
- Health and safety advice currently indicates no evidence to restrict travel to other parts of the world at this time.
- Travel decisions are being made on a case-by-case basis with attention to continuity of IMF advice and service to member countries.
- Requests for IMF financing related to coronavirus:
- As of this briefing, there have been no requests for IMF financing related to the outbreak.
Spring Meetings (mid-April) — contingency planning
- Spring Meetings scheduled for mid-April are under active review.
- Priorities: health and safety of staff and participants; maintaining dialogue and policy exchange.
- No decision on format provided at this briefing; institutions have contingency plans and expect to communicate decisions soon.
Argentina: engagement status and Article IV
- Ongoing active dialogue between Argentine authorities and the IMF, including a meeting in Riyadh between Minister Martín Guzmán and Managing Director Georgieva.
- The meeting in Riyadh was followed by staff discussions in Washington on Monday (prior to this briefing).
- The authorities indicated the Article IV consultation is a step to deepen mutual understanding with a view to discussing an eventual new Fund-supported program.
- Current discussions are not formal negotiations; the Argentine government has not formally requested a new program.
Lebanon: technical assistance and sovereign financing context
- Lebanon requested technical assistance; an IMF staff team conducted technical discussions in-country and has returned.
- The Lebanese authorities have not requested IMF financial assistance as of this briefing.
- IMF view communicated to Lebanese authorities: a comprehensive macroeconomic and structural reform effort is needed to address sharp deterioration in confidence, stabilize financing and payments systems, contain inflation, and resume growth.
- No IMF comment or speculation provided regarding potential sovereign default or the March 9 Eurobond maturity decision.
Mozambique: program request and mission timing
- The IMF has received a formal request to begin program discussions with Mozambique.
- Planned IMF staff mission to Maputo: second half of March.
- Key IMF priorities in discussions with Mozambique include:
- Addressing public debt sustainability through strong commitment to fiscal consolidation over the medium term while preserving critical social and infrastructure spending.
- Strengthening governance to ensure scarce public resources are used effectively for the benefit of the Mozambique people.
Sri Lanka: program review and future engagement
- The seventh and final review of the current Fund-supported program for Sri Lanka is scheduled to take place after mid-April.
- During a recent staff visit, Sri Lankan authorities expressed interest in a range of options for future engagement; specifics to be discussed after the mid-April review.
Transcript of IMF Press Briefing — IMF Communications Department, February 27, 2020.