Transcript of International Monetary and Financial Committee (IMFC) Press Briefing

IMF News, October 14, 2023

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Date: October 14, 2023.
Location: IMF World Bank Group Annual Meetings in Marrakech.
Principal speakers: Kristalina Georgieva, Managing Director, IMF; Nadia Calviño, IMFC Chair.
Moderator: Julie Kozack, Director of the Communications Department, IMF.
Chair’s characterization: meetings held in a “very turbulent” geopolitical context with rising geopolitical tensions and conflicts identified as the biggest source of uncertainty for the global economy.

Safeguard financial stability.
Reduce inflation while safeguarding financial stability.
Ensure fiscal sustainability while protecting the most vulnerable.
Boost inclusive and sustainable growth by advancing climate and digital agendas.
Address debt vulnerabilities and accelerate debt restructuring processes.
Maintain strong support for the most vulnerable members through concessional financing.

Commitment to a “meaningful increase of quotas by the end of the year,” with the objective of maintaining the size of the Fund and ensuring a “strong, quota‑based, and adequately resourced IMF.”
Agreement to continue improving voice and representation of sub‑Saharan Africa through the creation of a 25th chair on the IMF Executive Board.
Commitment to effectively increase gender diversity at the Board.
Celebration of the closure of the financing gap of the Poverty Reduction and Growth Trust (PRGT), enabling continued concessional support to vulnerable members.
Recognition of the creation and use of new facilities and tools:
- Food Shock Window (created to address increasing food insecurity).
- Resilience and Sustainability Facility/Trust (designed to address climate change and pandemics in low‑ and middle‑income countries).
- Spain noted as the first country to contribute to the Resilience and Sustainability Facility.
- “11 countries now using this facility and many more in the pipeline.”
Progress on debt relief and debt resolution:
- Creation of the Global Sovereign Debt Roundtable to enhance cooperation between borrowers and creditors.
- Specific country debt restructuring progress cited: completed cases like Chad and Zambia; very well advanced cases like Sri Lanka and Ghana; accelerated processes where needed like Ethiopia.

PRGT fundraising: membership “closed the gap on loans and subsidy resources,” exceeding the 2021 goal.
- “42 countries” contributed to support poorest members.
- Of those 42 countries, “15 are emerging markets and developing economies.”
- Donor examples span “the largest, the United States, the European Commission, on behalf of the European Union, to the smallest, Trinidad and Tobago.”
Emphasis on the need for more subsidy resources for the Poverty Reduction and Growth Trust to provide “zero interest rate loans.”
Highlighted need for more support for longer‑term financing through the Resilience and Sustainability Trust.

Africa representation:
- Agreement to create a “25th chair on the IMF Executive Board for sub‑Saharan Africa.”
- Support for a “third African Chair on our Executive Board,” moving from “two” to “three” voices for sub‑Saharan Africa.
Morocco host engagement:
- Expressions of condolences for recent tragedies (earthquakes in Morocco; flooding in Libya; loss of life in Ukraine, Israel and Gaza, Afghanistan).
- Kristalina Georgieva met with King Mohammed VI; discussions included Morocco’s announced new social policy aligned with IMF meeting themes (well‑targeted social support to build skills and protect vulnerable people).
- IMF presence intended to express solidarity with Morocco after the earthquakes.

Geopolitical tensions and conflicts cited as the principal source of uncertainty.
Short‑to‑medium term growth concern:
- Kristalina Georgieva referenced the slow medium‑term growth rate: “the 3 percent in the medium term,” and the objective to transform economies faster to boost that rate.
Recent escalation in the Middle East:
- Noted immediate market volatility: oil prices “going up and down, markets going up and down.”
- Uncertainty over the duration, spread, and economic impact of the conflict; too early to quantify macroeconomic consequences.

Nadia Calviño reflected on her two years as IMFC Chair:
- Highlighted accomplishments during turbulent times including Food Shock Window, Resilience and Sustainability Facility, PRGT replenishment, progress on debt relief, and advancement toward quota increases.
- Expressed gratitude to IMF staff and members; emphasized multilateral cooperation.
Kristalina Georgieva:
- Praised Chair Calviño’s leadership and communication.
- Emphasized solidarity achieved at the meetings and the membership’s success in meeting four pre‑meeting objectives:
- Foundational reforms to clarify policy priorities.
- Strengthening the Fund’s financial capacity, including completing the Sixteenth Quotas Review “by the end of this year.”
- Mobilizing resources for PRGT and Resilience and Sustainability Trust.
- Making progress on debt resolution.

Questions covered:
- Lessons and decisions for the African continent; IMF engagement with Morocco and King Mohammed VI.
- Assessment of Ms. Calviño’s two years as IMFC Chair (response: overall positive balance, unanimous agreement on core issues despite geopolitical challenges).
- Whether a common IMFC position on the Israel conflict was reached (responses emphasized tragedy, urgent need to prevent civilian loss of life, and that it is too early to judge global economic impact).
- Thailand as host of the 2026 Annual Meetings: expectations to highlight Asia’s growth dynamism and to prioritize building resilience in a “more shock‑prone world.”

Transcript of International Monetary and Financial Committee (IMFC) Press Briefing, October 14, 2023. IMF Communications Department.