Transcript of the 2020 Spring Meetings IMFC Press Conference

IMF News, April 17, 2020

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IMFC endorsed a forceful, coordinated international response led by the IMF to tackle the COVID-19 pandemic and its economic fallout.
Emphasis on acting “fast and act big” to deliver lifelines and avoid a protracted recession.
Recognition that different countries face different vulnerabilities: emerging markets and developing countries, commodity exporters, and economies with weak health systems are particularly at risk.
Global solidarity highlighted: donor countries pledged resources to bolster IMF capacity so the IMF can deploy support to vulnerable members lacking domestic resources.
Social cohesion and calibrated social policies were stressed: protect vulnerable people, reduce inequality, and promote access to opportunities.

IMF has revamped its toolkit and received IMFC support for the package of financial support.
Key elements of the IMF response:
- Doubling access levels to emergency facilities.
- Expanding use of precautionary lines.
- Establishing a new Short-term Liquidity Line (STLL).
- Considering other options to help countries meet financing needs.
Target: deploy the IMF’s $1 trillion lending capacity to help emerging markets and developing economies.
Emergency financing speed and scale:
- By the end of this month, some 50 countries will have received help.
- Total request volume at the time of the press conference: 102 countries.
Concessional financing and trust replenishments:
- IMF called for urgent provision of US$17 billion of concessional financing for the Poverty Reduction and Growth Trust (PRGT).
- Commitments totaling $11.7 billion were announced by Japan, the U.K., France, Australia and Canada.
- As of the meeting, 70 percent of the PRGT ask had been met by commitments.
- Catastrophe Containment and Relief Trust (CCRT) capacity boosted to over US$600 million with new pledges from the U.K., Japan, China, the Netherlands, and, as of the meeting, Germany.

IMF’s policy tracker figures cited at the meeting:
- Fiscal measures so far have amounted to about $8 trillion.
- Liquidity injections by central banks amounting to over $6 trillion.
Concern remains about exchange rate and liquidity pressures in several countries.

IMFC welcomed the coordinated G20 and Paris Club approach for a time-bound suspension of debt service payments by bilateral official creditors for the poorest countries that request forbearance.
IMFC encouraged private creditors to participate on comparable terms.
IMF and World Bank committed to assess debt sustainability on a country-by-country basis and to engage in private-sector involvement where needed.
Goal: prevent unnecessary insolvencies and stem capital outflows from emerging markets.

Membership discussed both existing SDRs and proposals for a new SDR allocation; no consensus on a new allocation at that time.
Practical, immediate consideration: deploying existing SDRs held by advanced economies to support developing countries that need liquidity.
Precedent: advanced-economy SDRs have been used to boost the PRGT; discussion focused on scaling up such deployments for broader benefit.

STLL intended as a timely, lower-cost liquidity instrument for countries with strong policies—complements precautionary lines and emergency financing.
Emergency financing is available to all eligible countries, including middle-income countries.
IMF surveillance and policy signaling seen as important to restore investor confidence and reverse capital outflows (noted historical outflow figure: US$100 billion from emerging markets).

IMF and World Bank treating Africa as a high priority for deploying financing capacity.
Concern that COVID-19 risks undermining Africa’s pre-crisis growth momentum in countries that had been growing at “six percent and more.”
Reference to Mobilizing with Africa meeting to follow the IMFC discussions; coordinated engagement with the African Union, President Ramaphosa, and the United Nations.
External appeals and estimates mentioned:
- UN Economic Commission for Africa cited an immediate emergency stimulus need of US100 billion.

Speed of delivery emphasized as critical: “speed of action is of essence” in a crisis that moved rapidly.
Management tasked with continuing to mobilize resources and pursue further steps as needed based on evolving conditions.
Chair and Managing Director highlighted global unity in endorsing the IMF package and in pledging contributions to concessional funds and relief trusts.

Transcript of the 2020 Spring Meetings IMFC Press Conference, April 17, 2020, IMF Communications Department