Press Briefing Transcript: Julie Kozack, Director, Communications Department, June 12, 2025
IMF News, June 12, 2025
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- Published: June 12, 2025
Announcements and Management Travel
- Managing Director travel:
- June 18th: Brussels for bilateral meetings.
- June 19th: Luxembourg to present the Euro Area Annual Consultation at the Eurogroup meeting.
- June 20th: Rome to speak at the Mattei Plan for Africa and the Global Gateway event (co-chaired by Italian Prime Minister Giorgia Meloni and European Commission President Ursula von der Leyen).
- June 22nd to 24th: Japan — meetings with Japanese officials, private sector, and other stakeholders.
- Other management travel:
- First Deputy Managing Director Gita Gopinath: Sri Lanka, Singapore, and Indonesia. On June 16th, participate in the Sri Lanka Road to Recovery Conference and deliver opening remarks.
- Deputy Managing Director Bo Li: June 24th through 26th, World Economic Forum Annual Meeting of the New Champions in Tianjin, China (sessions on safeguarding growth engines and the role of digital assets in global payment systems).
- Deputy Managing Director Nigel Clarke: June 30th, Finance for Development Conference in Sevilla, Spain.
Ukraine: Program Status and Debt Questions
- Staff–Level Agreement:
- May 28th: IMF staff and Ukrainian authorities reached Staff–Level Agreement for the Eighth Review of the EFF program.
- Subject to Executive Board approval, Ukraine will have access to about U.S. $500 million.
- That disbursement would bring total disbursements under the program to U.S. $10.6 billion.
- Board scheduled to meet in the coming weeks; more details to be provided as available.
- Performance and expectations:
- Ukraine's economy described as resilient; authorities met all quantitative performance criteria and indicative targets; progress continues on the structural agenda.
- The 2026–2028 budget declaration is expected to provide a strategic framework for fiscal policy for the remainder of the program, focus debate on key expenditure priorities (recovery, reconstruction, defense, social spending), and form the basis for discussion of the 2026 budget.
- Debt and arrears:
- IMF encourages authorities and creditors to progress toward agreement in line with debt sustainability targets under the IMF program and the authority's announced strategy.
- If arrears to private creditors exist, staff will assess whether requirements under the Fund’s lending into arrears policy are met.
- Payments reporting:
- IMF does not comment on specific transactions of individual members publicly; monthly and daily transaction and outstanding obligation information is available on IMF website pages for members.
Senegal and Rwanda: Engagement and Reforms
- Senegal:
- IMF remains actively engaged with Senegalese authorities; visits to Dakar in March and April and discussions during Spring Meetings in Washington in April.
- IMF is working with authorities on a complex misreporting case; process is rigorous and time-intensive.
- IMF providing technical assistance: debt sustainability analysis tailored to low-income countries, government financial statistics (led by Statistics Department), energy sector reform, public investment management, revenue mobilization.
- No fixed timeline for a new program; IMF awaiting final audit outcome.
- Rwanda:
- June 4th: IMF Executive Board concluded the Fifth Review of Rwanda's Policy Coordination Instrument.
- Rwanda’s growth remains among the strongest in Sub-Saharan Africa despite rising fiscal and external pressures.
- Rwanda completed its Resilience and Sustainability Fund (RSF) program in December of 2024, six months ahead of initial timetable.
- Institutional reforms completed under RSF (focused areas):
- Green public financial management.
- Climate public investment management.
- Climate-related risk management for financial institutions.
- Disaster risk reduction.
- Additional measures: green taxonomy and adoption of best practices in climate risk reporting by financial institutions to close information gaps, improve transparency, and boost private sector engagement.
Syria: First IMF Visit Since 2009 and Next Steps
- Mission:
- June 1st through 5th: IMF staff visited Syria — first IMF visit to Syria since 2009.
- Purpose: assess economic and financial conditions; discuss economic policy and capacity-building priorities with authorities; ascertain capacity-building needs to support recovery.
- Findings and follow-up:
- Syria faces enormous challenges after years of conflict; economy reduced to a fraction of its former size.
- IMF staff, in coordination with partners, are developing a detailed roadmap for policy and capacity development priorities focused on the Finance Ministry, the Central Bank, and the Statistics Agency.
- Syria will need substantial international assistance; no precise estimate yet.
- Assistance will require concessional financial support and substantial capacity development support.
Argentina: EFF Program and First Review Engagement
- Program details:
- April 11th: IMF Executive Board approved a new four-year EFF arrangement worth $20 billion for Argentina.
- Initial disbursement under the program was $12 billion.
- Program aims to support Argentina's transition to stabilization and reform.
- Recent measures and IMF reaction:
- IMF welcomes recent Central Bank and Ministry of Finance measures to consolidate disinflation, support government financing strategy, rebuild reserves, strengthen monetary framework, and improve liquidity management.
- Treasury’s reentry into capital markets and other financing actions expected to boost reserves.
- Review mission and timing:
- Technical mission will visit Buenos Aires in late June to assess progress on program targets and objectives and discuss the authorities' forward-looking reform agenda.
- Reserve targets and operational concerns:
- Discussions centered on reserve targets for the First Review; market measures and debt payments (including July 9th dollar debt payments) are relevant to reserve calculus.
- IMF engagement ongoing and frequent with Argentine authorities as part of the First Review.
Global Outlook and Emerging Markets
- World Economic Outlook (WEO) projections cited (April forecasts):
- Emerging and developing countries growth: 4.3 percent in 2024, 3.7 percent in 2025, and 3.9 percent in 2026.
- Recent developments affecting outlook:
- Some positive surprises to growth in Q1 for emerging/developing countries, including China.
- Recent reductions in some tariffs present upside risk to forecasts.
- Trade announcements (U.S.-China, U.S.-UK tariff adjustments) and tariff increases on steel and aluminum by the U.S. create mixed effects.
- IMF will update projections in the July WEO update (release toward the end of July).
- Policy recommendations for countries facing external pressures:
- Carefully calibrate monetary policy and macroprudential/prudential policies to maintain stability.
- Rebuild fiscal buffers to restore policy space for future shocks.
- Use targeted foreign exchange interventions when markets are disruptive.
- Pursue reforms to boost productivity and long-term growth to address the low growth, high debt environment.
Egypt: Fifth Review and State Ownership Reforms
- Mission and discussions:
- May 6th to May 18th: IMF team visited Cairo and held productive discussions on economic and financial policies.
- Virtual discussions continue to finalize remaining policies and reforms for completion of the Fifth Review under the EFF.
- Progress and priorities:
- Egypt has made clear progress on its macroeconomic reform program: notable improvements in inflation and international reserves.
- Focus now on accelerating and deepening reforms: reducing the footprint of the state, leveling the playing field, and improving the business environment.
- Implementation of the state ownership policy and asset divestment program is critical to strengthen private sector contribution to growth.
- Sukuk issuance:
- Specific query on sukuk and the Minister of Finance’s right to issue was noted; IMF will respond bilaterally.
Ghana: Fourth Review and Energy Levy
- Staff–Level Agreement:
- April 15th: IMF staff and Ghanaian authorities reached Staff–Level Agreement on the Fourth Review of Ghana's Extended Credit Facility.
- Upon Executive Board approval, Ghana would receive about U.S. $370 million.
- Total support under the ECF would reach $2.4 billion since May of 2023.
- IMF anticipates bringing the review to its Board in early July.
- Exchange rate and program targets:
- Sharp appreciation of the cedi affects variables influencing program targets; future program reviews will assess evolving macroeconomic and financial conditions, including exchange rate movements, to ensure targets remain appropriate.
- Energy Sector Levy:
- New measure: amended Energy Sector Levy Act adds GH₵1 per liter on petroleum products to defray fuel purchase costs for thermal plants.
- IMF views the measure as generating additional resources to tackle energy sector challenges and bolster fiscal objectives under the program.
Sri Lanka: Fourth Review, Tariffs, and Governance Reforms
- Staff–Level Agreement:
- April 25th: IMF staff and Sri Lankan authorities reached Staff–Level Agreement on the Fourth Review.
- Completion of the review pending Executive Board approval and contingent on completion of prior actions.
- Upon Board completion, Sri Lanka would have access to about $344 million in financing; Board date to be announced in due course.
- Recent measures and prior actions:
- IMF team assessing regulator measures announced on June 11th, including a 15 percent electricity tariff increase and publication of revised bulk supply transaction account guidelines.
- Governance and reform momentum:
- End-February: government published an updated government action plan on governance reforms including commitments to enact a public procurement law and an asset recovery law, aligned with recommendations in IMF Governance Diagnostic Report.
- IMF emphasizes importance of sustaining reform momentum to safeguard stabilization and growth.
- President’s remarks about final program:
- IMF noted Sri Lanka has made commendable progress (rebound in growth, low inflation, growing international reserves, improving revenue, nearly complete debt restructuring) and remains focused on completing the current EFF program.
Russia: Growth, Inflation, and Monetary Policy
- Growth and inflation:
- IMF April forecast: growth in Russia expected to slow to 1.5 percent in 2025 from 4.3 percent in 2024.
- Inflation was just under 10 percent in May.
- IMF forecast expects inflation to ease to 8.2 percent by the end of this year.
- IMF expects inflation to reach the 4 percent target in the first half of 2027.
- Monetary policy action:
- Central Bank cut key policy rate from 21 percent to 20 percent — the first easing since September of 2022.
- Cut aimed at responding to slowing growth and easing inflation pressures; monetary policy remains tight despite the reduction.
Crypto and Digital Assets: IMF Position
- Observations:
- Crypto assets have gained popularity; underlying distributed ledger technology is viewed as valuable with potential broader societal benefits.
- Crypto assets are considered a speculative asset class.
- Policy stance:
- IMF generally does not recommend cryptocurrencies be adopted as legal tender.
- Risks identified: financial stability, consumer and investor protection, and market integrity.
- Recommendation: establish a robust policy framework to mitigate risks while allowing benefits from the underlying technology.
Closing and Media Logistics
- Transcript availability:
- Briefing embargoed until 11:00 a.m. Eastern Time (United States); transcript to be made available later on IMF.org.
- Media contact:
- MEDIA RELATIONS PRESS OFFICER: Brian Walker
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
Press Briefing Transcript: Julie Kozack, Director, Communications Department, June 12, 2025