{ "title": "Transcript of a Press Briefing with Gerry Rice, Director, Communications Department", "publication": "IMF News, May 19, 2016", "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/28/04/54/tr051916", "canonical": "https://www.imf.org/en/news/articles/2015/09/28/04/54/tr051916", "overlayPath": "/en/news/articles/2015/09/28/04/54/tr051916/index.md", "summary": "Briefing date and location: May 19, 2016 — Washington, D.C.", "publishDate": "2016-05-19", "sections": [ { "heading": "Logistics, announcements, and upcoming events", "content": "- Briefing date and location: May 19, 2016 — Washington, D.C.\n- Webcast: briefing was on the record and under embargo until 10:30 a.m. Washington Time.\n- IMF communications contacts provided: Media Relations E-mail: media@imf.org; Phone: 202-623-7100.\n- Senior staff engagements announced:\n - Managing Director Christine Lagarde: attending G7 Finance Ministers and Central Bank Governors meeting in Sendai, Japan (officially May 20 and over the weekend), then G7 Leaders Summit on May 27; visit to Kazakhstan between meetings.\n - First Deputy Managing Director David Lipton: delivering the Peterson Institute Annual Niarchos Lecture on Tuesday, May 24.\n - Deputy Managing Director Min Zhu: speaking at the Third Annual Asian Policy Forum on May 27 in Singapore; keynote at the Bank of Korea International Conference on May 30–31 in Seoul.\n- New IMF briefing room announced (more expanded media room)." }, { "heading": "IMF engagements, missions, and procedures", "content": "- Article IV and program review timing: IMF staff will conduct Article IV mission to Portugal in June 2016.\n- Mozambique: staff visit to Maputo planned for June 2016 (mission originally scheduled for April and May was delayed because of disclosure of previously undisclosed borrowing).\n- Angola: IMF received a formal request to initiate discussions on a three-year extended arrangement; IMF team preparing to visit Luanda in the near future.\n- Ukraine: staff-level agreement reached on the review; Board consideration expected in July 2016; the next IMF disbursement is for one tranche (not bundled), with the amount believed to be around $1.7 billion (to be verified by IMF team).\n- IMF Board: decisions on participation in programs would be taken by the Executive Board; the Board is being kept regularly informed." }, { "heading": "Country-specific updates and policy notes", "content": "- Portugal\n - Article IV mission scheduled in June 2016 to address budget and repayment questions.\n- Mozambique\n - Context: authorities confirmed undisclosed borrowing during the Spring Meetings.\n - IMF stance: undisclosed debt-related transactions must be reported transparently and publicly.\n - Next steps: mission to Maputo in June 2016 to gather facts, conduct due diligence, and assess macroeconomic implications; decisions on program support or conditionality to follow mission assessment.\n - On the question of a bailout: contingent on PSI review and mission discussions.\n- Angola\n - Formal request received for discussions on a three-year extended arrangement; initial discussions held during Spring Meetings; mission to Luanda planned.\n- Iraq\n - A standby agreement announced (amount cited by questioner as $5.4 billion); IMF had no detailed additional information beyond the public communication at the time of the briefing.\n- Brazil\n - IMF view: announcements by Finance Minister Meirelles were viewed positively.\n - Policy advice emphasized: strengthen the macroeconomic framework (inflation targeting, exchange rate flexibility, fiscal responsibility); stabilize debt trajectory; preserve social security through reforms ensuring long-run financial sustainability.\n- Spain\n - Economic outlook and challenges highlighted:\n - Growth reached 3.2 percent in 2015.\n - Growth projected at 2.6 percent in 2016.\n - Concerns: constrained growth potential, sizable public and private debt overhang, weak productivity growth, high structural unemployment.\n - IMF readiness: ready to work with any government emerging from elections.\n- Ukraine\n - IMF statement: Ukraine has made considerable progress restoring macroeconomic stability; continued need for steadfast implementation of structural and institutional reforms, enhanced transparency and rule of law, and reform of large state-owned enterprises.\n - Board consideration of the review expected in July 2016.\n - Tranche: staff indicated the Board consideration involves one tranche.\n - Estimated amount mentioned for IMF disbursement: around $1.7 billion (team to verify).\n- Italy\n - IMF noted the EC decision to grant flexibility under the Stability and Growth Pact; IMF view that flexibility should be used as warranted.\n - 2016 Article IV mission on the ground in Rome; press conference scheduled for Monday afternoon in Rome.\n- Suriname\n - Authorities requested IMF assistance for a comprehensive stabilization and recovery program.\n - IMF supports gradual elimination of electricity subsidies to allow better-targeted social spending and improve the fiscal situation.\n - Board consideration of Surinamese request expected in the coming weeks.\n- Malawi\n - IMF team visited Lilongwe in March 2016 in the context of the seventh and eighth reviews under an Extended Credit Facility (ECF).\n - Program performance: concerted effort to get the program back on track; domestic financing and asset issues addressed; financial-sector reforms and public financial management improvements (including bank reconciliations) progressing but need to be sustained.\n - IMF Board approved an extension of Malawi's arrangement under the ECF until June 30, 2016 to allow more time for structural measures." }, { "heading": "Greece — status of discussions, IMF position, and next steps", "content": "- Context:\n - Discussions ongoing among Greece, its European partners, and the IMF in the context of the first review of Greece's ESM program.\n - Greece is not currently under an IMF program, but the IMF is fully engaged in discussions.\n - No proposal has been submitted to the IMF Executive Board at the time of the briefing.\n - Recent Eurogroup meeting occurred on May 9; next Eurogroup meeting scheduled for May 24.\n- Core IMF position and requirements for IMF financial participation:\n - Program must \"walk on two legs\": (1) credible, strong policies underpinning realistic targets; and (2) comprehensive debt relief.\n - Both credible policies and substantial debt relief are essential for Greece to achieve sustainable public finances and growth.\n - The IMF put the debt relief issue on the table almost a year prior; welcomes the start of discussions on debt relief.\n- Debt relief and DSA (debt sustainability analysis):\n - IMF has not finalized its DSA.\n - IMF exchanged preliminary views with partners on general principles regarding debt relief objectives and modalities.\n - IMF view: restoring debt sustainability may be possible without upfront haircuts by providing very concessional loan terms (including long grace and maturity periods and very low interest rates).\n - IMF highlighted the potential role of exchanging more expensive/expansive debt for less expansive debt to increase concessionality of official financing.\n - IMF not aware of specific discussions on ESM buying out IMF debt or IMF buying Greek debt; not aware of discussions on IMF taking a purely monitoring/advisory role without financial participation.\n- Fiscal targets and reforms:\n - IMF view: achieving a 3.5 percent primary surplus by 2018 is very ambitious and unlikely to be sustainable for decades; such a level would imply excessive austerity and risks falling disproportionately on the poor and vulnerable.\n - To make ambitious ESM fiscal targets credible, IMF sees need for fundamental reforms to:\n - Pensions (addressing very generous benefits).\n - Income taxes (addressing large exemptions that are exceptional by European standards).\n- Timing and process:\n - IMF invited to Eurogroup discussions; Poul Thomsen expected to lead IMF participation in the May 24 meeting.\n - IMF staff indicated readiness to present a program for the Board once the program includes necessary policies and debt relief that make the program realistic and add up.\n - No decision on IMF participation until a program that meets IMF objectives and principles is presented and considered by the Executive Board.\n- Specific numeric and timing references in the Greece discussion:\n - Target primary surplus cited in IMF commentary: 3.5 percent by 2018 (described as ambitious).\n - Historical reference to alternative target: 1.5 percent of GDP mentioned in questions; IMF reiterated view without endorsing sticking to that number for decades.\n - Possible long grace and maturity periods discussed in general terms; a 2040 date was raised by questioners as an example but IMF did not endorse specific dates.\n- Equity and institutional considerations:\n - IMF emphasized uniformity of treatment among member states and the importance of credible reforms and credible financing for program integrity across the IMF’s 189 members." }, { "heading": "Key numeric values and dates cited in the briefing (preserved exactly)", "content": "- Briefing date: May 19, 2016.\n- Embargo lift time: 10:30 a.m. Washington Time.\n- Senior staff events:\n - David Lipton lecture: May 24.\n - Min Zhu speaking: May 27; Bank of Korea keynote: May 30, 31.\n- Spain growth figures:\n - 3.2 percent in 2015.\n - Projected at 2.6 percent in 2016.\n- Greece fiscal target cited:\n - 3.5 percent primary surplus by 2018.\n- Ukraine IMF tranche estimate:\n - around $1.7 billion.\n- Iraq standby agreement amount referenced by questioner:\n - $5.4 billion.\n- Malawi ECF arrangement extension:\n - until June 30, 2016.\n\nSource: Transcript of a Press Briefing with Gerry Rice, Director, Communications Department, May 19, 2016.\n\n---\n\n\n References\n\n- PRESS CENTER\n- Webcast\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/28/04/54/tr051916" } ], "bullets": [ "[Markdown version](/en/news/articles/2015/09/28/04/54/tr051916/index.md)", "[Structured JSON version](/en/news/articles/2015/09/28/04/54/tr051916/index.json)", "[Bundle manifest](/en/news/articles/2015/09/28/04/54/tr051916/bundle-manifest.json)", "Published: May 19, 2016", "Briefing date and location: May 19, 2016 — Washington, D.C.", "Webcast: briefing was on the record and under embargo until 10:30 a.m. Washington Time.", "IMF communications contacts provided: Media Relations E-mail: media@imf.org; Phone: 202-623-7100.", "Senior staff engagements announced:", "New IMF briefing room announced (more expanded media room).", "Article IV and program review timing: IMF staff will conduct Article IV mission to Portugal in June 2016.", "Mozambique: staff visit to Maputo planned for June 2016 (mission originally scheduled for April and May was delayed because of disclosure of previously undisclosed borrowing).", "Angola: IMF received a formal request to initiate discussions on a three-year extended arrangement; IMF team preparing to visit Luanda in the near future.", "Ukraine: staff-level agreement reached on the review; Board consideration expected in July 2016; the next IMF disbursement is for one tranche (not bundled), with the amount believed to be around $1.7 billion (to be verified by IMF team).", "IMF Board: decisions on participation in programs would be taken by the Executive Board; the Board is being kept regularly informed.", "Portugal", "Mozambique", "Angola", "Iraq", "Brazil", "Spain", "Ukraine", "Italy", "Suriname", "Malawi", "Context:", "Core IMF position and requirements for IMF financial participation:", "Debt relief and DSA (debt sustainability analysis):", "Fiscal targets and reforms:", "Timing and process:", "Specific numeric and timing references in the Greece discussion:", "Equity and institutional considerations:", "Briefing date: May 19, 2016.", "Embargo lift time: 10:30 a.m. Washington Time.", "Senior staff events:", "Spain growth figures:", "Greece fiscal target cited:", "Ukraine IMF tranche estimate:", "Iraq standby agreement amount referenced by questioner:", "Malawi ECF arrangement extension:", "[PRESS CENTER](http://presscenter.imf.org/)", "[Webcast](https://www.imf.org/external/mmedia/view.aspx?vid=4901977989001)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2015/09/28/04/54/tr051916/index.md", "json": "/en/news/articles/2015/09/28/04/54/tr051916/index.json", "bundleManifest": "/en/news/articles/2015/09/28/04/54/tr051916/bundle-manifest.json" }, "generatedAtUtc": "2026-09-27T12:22:47.105Z" }