Transcript of a Press Briefing by Caroline Atkinson, Director, External Relations Department, International Monetary Fund

IMF News, May 12, 2011

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Canonical URL: Transcript of a Press Briefing by Caroline Atkinson, Director, External Relations Department, International Monetary Fund

Date and location: May 12, 2011, Washington, DC.
Briefing embargo: embargoed until 10:30 a.m. Washington time or 1430 GMT.
Upcoming travel and events mentioned:
- Managing Director: keynote at the Twelfth Brussels Economic Forum on the 18th; speaking at the Bretton Woods Committee 2011 Annual Meeting on the 19th; remarks to be posted for the Tenth Annual Niarchos Lecture at the Peterson Institute (starts at 5:00 p.m., open to media).
- First Deputy Managing Director, Mr. Lipsky: in Beijing for the International Forum of Sovereign Wealth Funds; will deliver a speech tomorrow morning, May 13 (to be posted in Chinese and English).
- IMF co-hosting with Brazilian authorities: conference in Rio on the 26th and 27th of May on management of capital flows (detailed program and media advisory to be issued later).
- Antonio Borges, Director of the European Department: regional outreach including a press conference in Warsaw at 11:00 a.m. local time (following European Regional Economic Outlook releases).

IMF stance on conversion to an Extended Fund Facility (EFF):
- IMF has been "open to the idea of conversion to an EFF" for some months; an EFF "would give more time to Greece."
- Conversion discussion is distinguished from judgments about debt sustainability: "That has nothing to do with whether or not the debt is sustainable. All of our programs and all of our facilities require a judgment that debts are sustainable."
- EFF purpose emphasized: "to give more time so that if Greece needs more time to get to a position where they are finished with the program, an EFF allows for a longer period of repayment."
Timing and process:
- A mission is "in the field now" in Greece conducting discussions; IMF will not anticipate or pre-judge outcomes while mission is ongoing.
- A Board meeting date would be fixed "once those discussions were concluded."
- Expected mission conclusion: "around the 18th."
Repayment terms and rates:
- Interest rates: "Our interest rates are the same on those two different facilities."
- Repayment term comparison (as stated): "instead of being three to five years, it's six to 10 years or something like that." (Note: IMF spokesperson cautioned she was not announcing anything definitive.)
Position on debt restructuring and Euro exit:
- Program designed on basis of government's "firm commitment to honor its debt obligations and guarantees and that still holds."
- IMF will give space to ongoing in-field discussions rather than commenting on speculative scenarios.

Ireland:
- Ireland has an Extended Fund Facility (EFF).
- Irish program status: "The Irish program is on track."
- IMF Executive Board review scheduled: May 16 (review mission recently in the field).
Portugal:
- Programs are country-specific: "people often group these countries together, but of course they are three different countries with a different focus that their programs seek to address."
- Portugal: "have had an even more worrying growth problem in the past"; fiscal problem "is not quite the same as Greece's" and "they have a lot of banking issues."
- Agreement on program expected to be taken to Executive Board soon.
European Central Bank and monetary policy:
- IMF supportive of ECB operations in financial markets to promote financial stability, including refinancing operations and continued use of the Securities Market Program.
- Monetary policy normalization characterized as gradual.

Egypt financing needs and IMF engagement:
- Egyptian authorities indicated a financing need of "some $10 to $12 billion from now through June 2012" from the international community.
- Egypt has approached bilateral and multilateral partners "including the IMF" and "there has now been an official request" to multilateral partners; an IMF team is expected to visit Cairo "shortly" to begin discussions.
- No specific IMF-only financing number provided.
Pakistan:
- Discussions ongoing between IMF staff and Pakistani staff focused on "recent economic developments and in particular the upcoming budget."
Argentina:
- Second technical assistance mission with Statistics and Western Hemisphere staff occurred on April 4 through 11.
- "There is no request yet for the Article IV."
South Sudan:
- Question about IMF membership consideration and a Program Trust Fund for South Sudan: IMF to provide an update later (no specific answer at the briefing).

Legitimacy and leadership:
- Question on legitimacy if next IMF head is another European: IMF declined to speculate on future leadership.
- Quota reform cited as strengthening legitimacy: quota reform "agreed in the G-20 and then in the IMF Executive Board and by governors last year" will "deliver a big shift in quota to emerging markets" and "put all of the BRIC countries for example in the top 10 shareholders."
- Legitimacy also tied to interactions with member countries and conduct of the Board.

"Restructure" ambiguity:
- IMF does not have a formal or official definition of "restructure"; meaning varies by context and should be examined case by case.
Funding split historical expectation:
- IMF referenced a historical average expectation of a "2-to-1 split" (two-thirds from the EU, one-third from the IMF) but emphasized that "every program is reviewed on a case-by-case basis" and the Executive Board is independent.

Embargo lift time: 10:30 a.m. Washington time or 1430 GMT.
Dates and durations cited:
- Press briefing: May 12, 2011.
- Managing Director engagements: 18th (Brussels Economic Forum), 19th (Bretton Woods Committee), Niarchos Lecture at 5:00 p.m.
- First Deputy Managing Director speech: May 13 (Beijing time; "tomorrow morning").
- Rio conference: 26th and 27th of May.
- Irish program Executive Board discussion: May 16.
- Egypt financing horizon: "from now through June 2012."
- Argentina technical assistance mission: April 4 through 11.
- Expected mission conclusion in Greece: "around the 18th."
Financing figures:
- Egypt: "some $10 to $12 billion from now through June 2012."
Facility repayment terms referenced:
- Stand-By Arrangements: repayment "three to five years" (as contextually referenced).
- Extended Fund Facility example: repayment "six to 10 years" (as described during briefing).

Transcript of a Press Briefing by Caroline Atkinson, Director, External Relations Department, International Monetary Fund — May 12, 2011.