Transcript of IMF Press Briefing

IMF News, February 4, 2021

Source details

Canonical URL

Transcript of IMF Press Briefing

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Published: February 4, 2021

IMF communications and recent publications

• Briefing date: February 4, 2021; embargo until 10:30 a.m. (Washington time).
• Recent IMF releases referenced:
  • Update to the World Economic Outlook.
  • Update to the Global Financial Stability Report.
  • Update to the Fiscal Monitor.
  • Update to debt sustainability analysis methodology (announced yesterday).
  • Middle East and Central Asia Regional Economic Outlook Update launched by Jihad Azour earlier today.
  • Upcoming regional update on the Western Hemisphere to be presented by Alejandro Werner on Monday at 8:45 a.m. (Washington time), with a press conference planned.
• Press contact listed: PRESS OFFICER: Raphael Anspach; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson.

Ukraine: staff-level review of stand-by arrangement

• Status:
  • The first review of the stand-by arrangement for Ukraine is ongoing.
  • A virtual IMF staff mission began late last year, was paused over the holiday period, and has resumed.
• Process:
  • Discussions cover the economic development policies and reforms needed to underpin completion of the review.
  • No new timetable or completion date provided.

Ethiopia: debt situation and the G-20 common framework

• Situation:
  • The pandemic is pushing debt levels to new heights, adding to spending needs while revenues fall due to lower growth and trade, raising the debt burden.
  • Ethiopia is described as "struggling with a high debt burden" exacerbated by the crisis.
• IMF role and stance:
  • Debt restructuring negotiations are matters for the government and its creditors; the IMF is not a direct party to negotiations but seeks to be helpful.
  • The IMF is very supportive of the G-20 common framework for debt treatments, which it helped develop and promote.
  • The common framework aims to address unsustainable sovereign debt in low-income countries on a case-by-case basis, ensuring broad participation of creditors, comparability of treatment, and fair burden sharing to establish a level playing field.
• Timing:
  • No date provided for an update on the debt sustainability assessment (DSA) for Ethiopia.

Myanmar: emergency financing, safeguards, and engagement

• Context:
  • IMF emergency financing approved in January (by the IMF Board) provided about $350 million dedicated to urgent humanitarian needs related to the pandemic.
  • Approval followed standard procedures for emergency financing, with safeguards including repayment schedules.
• Safeguards and governance:
  • Emergency financings have safeguard provisions such as audit and transparency of procurement; these apply even when instruments have relatively few conditions.
  • The IMF emphasizes the importance of central bank independence.
• Engagement and recognition:
  • The IMF has had no communication with the new regime as of the briefing.
  • The IMF is guided by the international community and its membership regarding recognition of governments, which informs IMF engagement with countries.
• Use and intent of funds:
  • The IMF’s stated intention is that resources support the people of Myanmar and vulnerable groups; the expectation is that safeguards and governance commitments will be maintained regardless of political developments.
• Broader program usage:
  • The IMF has used these emergency financing instruments in 85 countries so far during the crisis and previously in 84 countries (both figures appear in the briefing in different contexts).

Argentina: negotiations on an Extended Fund Facility and timing

• Status:
  • Talks on a possible IMF-supported program (Extended Fund Facility, EFF) are continuing between Argentine authorities and IMF staff.
  • Minister Guzman has reiterated the authorities’ wish to complete negotiations by May this year.
  • A formal IMF staff mission is expected to take place in the coming weeks; it will be virtual for health reasons.
• Terms and duration:
  • The IMF noted the terms of the EFF are available on the IMF website; questions were raised domestically about talk of a 20-year program, but no confirmation of program length was provided in the briefing.
• Logistics:
  • Missions are virtual due to health-related protocols tied to the pandemic and associated travel/safety considerations.
  • The authorities may visit Washington over the coming weeks, but no precise timing was provided.

United States: MD and Treasury Secretary meeting topics

• Summary of discussions between IMF Managing Director and U.S. Treasury Secretary Janet Yellen:
  • Fight the pandemic.
  • Boost growth.
  • Combat income inequality.
  • Tackle climate change.
  • Importance of global engagement to support low-income countries.

India: reaction to national budget

• Comment on the Modi government budget for the 12 months beginning on April 1st (described as "nearly half trillion dollar budget"):
  • The IMF welcomes the budget’s focus on growth and fiscal policy to facilitate a strong and inclusive recovery.
  • Positive emphasis on health, education, and public infrastructure; full implementation can help increase India’s growth potential.
  • The IMF welcomes improved fiscal transparency measures such as including food subsidies in the budget.
  • The IMF stresses the importance of a medium-term fiscal consolidation strategy to ensure credibility.
  • The IMF agrees on the need to further strengthen the financial sector and looks forward to details of proposed measures.

Transcript of IMF Press Briefing, February 4, 2021 — IMF Communications Department.

References

• https://www.imf.org/sitecore/service/notfound.aspx?item=master%3A%7B8D1E6EAB-2E82-47BE-B9FE-258FFB4CBC4A%7D%40en
• Argentina and the IMF
• India and the IMF
• Myanmar and the IMF
• The Federal Democratic Republic of Ethiopia and the IMF
• Ukraine and the IMF
• Transcripts
• PRESS CENTER
• https://www.imf.org/en/home