Press Briefing Transcript: Julie Kozack, Director, Communications Department, July 3, 2025

IMF News, July 3, 2025

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Press Briefing Transcript: Julie Kozack, Director, Communications Department, July 3, 2025

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Bibliographic details

• Published: July 3, 2025

Opening announcements and publications

• First Deputy Managing Director Gita Gopinath will participate in the G20 Finance Ministers and Central Bank Governors meetings in Durban, South Africa, on July 17th to 18th.
• Two flagship publications will be released in the coming weeks:
  • External Sector Report
  • World Economic Outlook Update
• Briefing embargoed until 11 A.M. Eastern Time (United States).

Ukraine — program status, reforms, and reviews

• Program progress and disbursements:
  • On June 30th, the IMF Executive Board completed the Eighth Review of the EFF arrangement with Ukraine, enabling a disbursement of U.S. $0.5 billion.
  • Total disbursements under the program now total $10.6 billion.
• Policy priorities and reforms to restore fiscal sustainability:
  • Implement the National Revenue Strategy, including:
  • Modernization of the tax and customs system (including timely appointment of a customs head).
  • Reduction in tax evasion.
  • Harmonization of certain legislation with EU standards.
  • Improvements in public investment management frameworks, medium-term budget preparation, and fiscal risk management.
  • Completion of the remaining elements of the debt restructuring in line with program objectives is essential for full restoration of debt sustainability over the medium term.
• Reviews and timing:
  • The Ninth Review is expected toward the end of the year and will combine the Ninth and the Tenth Reviews under the new schedule.

Senegal — data misreporting and audit

• Background:
  • A Staff Mission visited Dakar in March and April to advance resolution of the misreporting case confirmed by the Court of Auditors, which revealed underreporting of fiscal deficits and public debt over a number of years.
• IMF stance and next steps:
  • IMF team is closely engaged with authorities on corrective measures, root-cause actions, and capacity development.
  • The IMF "strongly welcome[s] the new government's commitment to transparency" in revealing discrepancies.
  • Authorities are conducting their own audit, which is understood to be close to being finalized; IMF will refrain from commenting on numbers until the audit is completed.

Russia — outlook and monetary policy considerations

• Recent assessment:
  • "The Russian economy is now slowing sharply."
  • Inflation is easing but "is still high" and is "above the Central Bank of Russia's target."
• Forecast and revisions:
  • April WEO projected growth to slow to 1.5 percent in 2025.
  • Recent developments since April suggest that growth may be lower; forecasts will be updated in the July WEO update.
  • In April, IMF expected inflation to return to target in the second half of 2027.
• Monetary policy balancing act:
  • Central Bank faces trade-offs: inflation still high and unemployment very low, while the economy is rapidly slowing, oil prices are lower, and tightening sanctions are having effects.

United States — fiscal legislation, trade, and implications for the WEO

• Fiscal legislation:
  • The referenced budget/tax/spending bill is said to increase the U.S. deficit by $3.4 trillion over 10 years.
  • IMF view: U.S. needs to reduce its fiscal deficit over time to put public debt-to-GDP on a decisive downward path; sooner consolidation allows more gradual adjustment.
  • IMF is examining details of the legislation and will account for developments in the July WEO update.
• Trade and tariff developments:
  • IMF will, "to the extent possible and feasible," take into account trade deals or tariff announcements (including potential tariff rate changes around July 9th) in the July WEO update.
  • High global uncertainty and shifts in the trade environment are being incorporated in forecasts where relevant.
• Broader points:
  • IMF emphasizes country-level domestic reforms to build resilience amid weaker trade and constrained official development assistance.
  • Three-pillar approach highlighted: domestic reforms, multilateral/donor financing, and mobilizing private financing.

Argentina — program implementation and reviews

• Program status:
  • A recent IMF Staff Technical Mission visited Buenos Aires and concluded on June 27th as part of the First Review under the new $20 billion EFF program.
  • Discussions for the First Review continue and remain productive.
• Program outcomes noted:
  • Transition to a more robust FX regime has been smooth.
  • Disinflation process has resumed.
  • Economy continues to expand.
  • High-frequency indicators suggest poverty is on a downward trend.
  • Argentina has reaccessed international capital markets for the first time in seven years.
  • These outcomes are supported by appropriately tight fiscal and monetary policies under the program.
• Process and timelines:
  • Completion of discussions requires a Staff-Level Agreement before submission to the Executive Board; no specific Board timing provided.
  • On waivers, targets, reserve accumulation, and specific disbursements (including a referenced next $2 billion disbursement), IMF will not speculate while discussions are ongoing.

Egypt — reviews, RSF, and reform priorities

• Recent engagement:
  • IMF team visited Cairo May 6th–18th; discussions were productive.
  • Notable improvements cited in inflation and foreign exchange reserves.
• Key reform priorities under the EFF:
  • Deepen reforms to reduce the state footprint, level the playing field, and improve the business environment.
  • Advance the state ownership policy and asset divestment/diversification program in sectors where the state commits to withdraw.
• Reviews and timing:
  • Fifth and Sixth Reviews under the EFF will be combined into a single, combined review for the fall to allow more time to finalize key policy measures.
  • The RSF (recently approved for Egypt) has its First Review aligned with the Sixth Review under the EFF.
• Financing and disbursements:
  • Discussions around combining reviews will include assessment of Egypt's financing needs and possible size/timing of disbursements; IMF will not speculate prematurely.

Syria — first IMF mission since 2009 and sanctions considerations

• IMF engagement:
  • An IMF team visited Syria June 1st–5th, the first visit since 2009, to assess economic and financial conditions and discuss policy and capacity-building priorities.
• Observations:
  • Syria faces "enormous challenges" after years of conflict that reduced the economy to a fraction of its former size.
  • Lifting of sanctions can help facilitate rehabilitation and reintegration into the global economy.
• Next steps:
  • IMF will assess implications of any lifting of sanctions as part of its ongoing work and capacity development planning.

Ethiopia — program progress and disbursement

• Recent actions:
  • IMF Executive Board approved the 2025 Article IV consultation and the Third Review under the ECF on July 2nd, enabling access to about U.S. $260 million.
• Assessment:
  • Completion of the review reflects adherence to the program and confidence in the government's reform agenda.
  • Key indicators—inflation, fiscal balance, and external balance—are showing signs of stabilization.

Kenya — government diagnostics, privatization comments, and next steps

• Diagnostic mission:
  • Technical Diagnostic Mission concluded on June 30th; a short press release was issued.
  • Draft diagnostic assessment report to be shared with Kenyan authorities before the end of the year; publication will follow upon authorities' consent.
• Privatization and governance:
  • IMF engagement on privatization emphasizes establishing frameworks that ensure transparency and good governance to unlock potential benefits such as increased efficiency, improved private investment, reduced fiscal burden, and better service delivery.
  • IMF underscores a broader governance agenda: Government Diagnostic Missions identify governance weaknesses and recommend reforms to reduce corruption and strengthen economic outcomes.

Mozambique and other program queries

• No specific update provided on feasibility of concluding a new program with Mozambique by year-end; IMF will follow up separately.

Citizenship by Investment (CBI) programs — Caribbean

• IMF position:
  • Advocates for common CBI program standards across the region, including transparency, as noted in the 2024 Regional Consultation Report on the ECCU.
  • Country-specific information on Dominica, Grenada, St. Kitts and Nevis, and St. Lucia is available in their respective Article IV reports.
• Visa/Schengen concerns:
  • Visa waiver decisions by the Schengen region are a matter between the Caribbean countries and Schengen countries, not an IMF policy issue.

Process notes and media procedures

• Transcript availability:
  • A transcript will be made available later on IMF.org.
• Media contact:
  • PRESS OFFICER: Rahim Kanani — Phone: +1 202 623-7100 — Email: MEDIA@IMF.org
• Embargo reminder:
  • Briefing embargoed until 11:00 A.M. Eastern Time (United States).

Press Briefing Transcript: Julie Kozack, Director, Communications Department, July 3, 2025 — IMF Communications Department

References

• Arab Republic of Egypt and the IMF
• Argentina and the IMF
• Kenya and the IMF
• Republic of Mozambique and the IMF
• Sri Lanka and the IMF
• St. Kitts and Nevis and the IMF
• Syrian Arab Republic and the IMF
• The Federal Democratic Republic of Ethiopia and the IMF
• United States and the IMF
• IMF Policy Advice -- A Factsheet
• The IMF and Good Governance -- A Factsheet
• Transcripts
• PRESS CENTER
• https://www.imf.org/en/home