## Transcript of a Press Briefing by Gerry Rice, Director, Communications Department, International Monetary Fund

_IMF News, June 6, 2013_

## Source details

**Canonical URL:** [Transcript of a Press Briefing by Gerry Rice, Director, Communications Department, International Monetary Fund](https://www.imf.org/en/news/articles/2015/09/28/04/54/tr060613)

## Other formats

- [Markdown version](/en/news/articles/2015/09/28/04/54/tr060613/index.md)
- [Structured JSON version](/en/news/articles/2015/09/28/04/54/tr060613/index.json)
- [Bundle manifest](/en/news/articles/2015/09/28/04/54/tr060613/bundle-manifest.json)

## Bibliographic details
- Published: June 6, 2013

---

### Announcements and Schedule
- Transcript date and location: June 6, 2013 — Washington, D.C.
- Briefing embargo: embargoed until 10:30 a.m., Washington time.
- Managing Director Christine Lagarde:
  - Attending the G-8 summit on June 17 and 18 in Northern Ireland.
  - Participating in the press conference for the Concluding Statement of the Article IV Consultation with the United States on June 14th at 11 a.m. at the Fund.
- First Deputy Managing Director David Lipton:
  - Attending the St. Petersburg International Economic Forum starting June 20th.
- IMF publication:
  - IMF's Biannual Work Program published today at 10:30 a.m.
- Press Center: reference to IMF Press Center (password-protected) and e-mail notification sign-up.

### Evaluation Report on the First Greek Program (2010) — Context and Overall Message
- Scope and timing:
  - Evaluation refers to the previous Greek program which began in 2010, not the current program which began in 2012.
- Purpose:
  - The evaluation is presented as a rigorous self-assessment intended to learn and integrate lessons into future operations.
- Context emphasized by IMF:
  - The 2010 crisis was described as "in many ways unprecedented" and required quick response.
  - Subsequent factors affecting outcomes included the depth of the global recession, the depth of the European recession, political uncertainties in Greece, and implementation problems.
- IMF position on decision-making hindsight:
  - "The evaluation report ... concludes ... that, in the same situation, with the same information, we would probably have made the same decision today."
- Current program status:
  - The current program "has already internalized the core lessons from the previous program."
  - Article IV Consultation and program review reports indicate Greece "has made major strides in the fiscal area, in the financial area, in some areas of structural reform."

### Troika and Institutional Relations
- Troika composition and assessment:
  - Troika = European Commission, European Central Bank, and the IMF.
  - The report noted areas for improvement but concluded "the Troika has worked well, and the Troika is working well."
- Differences with European Commission:
  - The European Commission "fundamentally disagreed with the key findings of the report."
  - IMF response: reiteration of contextual points and that "there is broad agreement" on some issues; IMF defers to each institution to make its own assessment.

### Debt Relief, Projections, and Timing
- IMF stance on new debt relief discussions:
  - "We do not envision any new debt relief discussions on Greece at this juncture."
- Projections and programmed debt targets:
  - Further debt relief will be needed for Europe to meet its commitment to reduce Greek debt to:
    - "124 percent of GDP by 2020"
    - "substantially below 110 percent of GDP by 2022"
- European partners' timetable:
  - They "expect to review the country's case by the beginning of 2014 and 2015" and decide once fiscal outcomes are known.

### Specific Country Program Updates and Timelines
- Egypt:
  - Technical discussions making "good progress."
  - IMF receiving data and information "all the time"; awaiting resolution of remaining technical issues to conclude negotiations successfully.
- Ukraine:
  - Mission to Kiev ended in mid-April to discuss policies for a Stand-By Arrangement; technical discussions continue; no specific dates for next negotiating mission provided.
- Democratic Republic of Congo:
  - Reviews completed under the Extended Credit Facility: three reviews completed, three did not take place owing to lack of progress on governance and transparency.
  - Further update to be provided later.
- Portugal:
  - Expectation: Board discussion of the 7th Review "around mid-June."
- Cyprus:
  - First review mission scheduled for late July; mission chief will participate in the mission.
  - IMF view on Cyprus program:
    - Macroeconomic assumptions take account of factors expected to affect growth in the short and medium run, including fiscal adjustment and recent policy actions in the financial sector.
    - Expectation: "growth to resume in 2015" — conditional on "a favorable international tax regime, progress on structural reforms, institutional reforms, etc."
    - Risks: "macroeconomic uncertainties and risks ... remain significant" and will be monitored closely.

### Data Quality, Misreporting, and Conditionality
- Importance of data:
  - "The accuracy of data is a fundamental aspect of an effective program."
  - IMF makes extensive efforts to ensure data accuracy; outcomes depend on what authorities can provide.
- Misreporting case in Greece:
  - Board reviewed a case of misreporting by Greece related to a prior action for the first and second reviews last January.
  - The Board "granted a waiver, given that there was prompt corrective action taken by the authorities" (area: tax administration).
- Implementation and ownership:
  - Noted evolution between first and second Greek programs: greater "ownership of the program and the implementation of the program" by Greek authorities.

### Lessons Learned — Working in a Monetary Union and Program Design
- Lessons documented in the report highlighted by IMF:
  - Importance of the "right pace and the right mix on the fiscal side."
  - Importance of "ownership and the importance of implementation by the respective authorities."
- Application to other euro-area programs:
  - IMF declined to draw direct parallels between Greek lessons and specific cases such as Cyprus to avoid confusion, but indicated these general lessons are relevant when working in a monetary union.

*Transcript of a press briefing by Gerry Rice, Director, Communications Department, International Monetary Fund — June 6, 2013.*

---


## References

- [Cyprus and the IMF](http://www.imf.org/external/country/CYP/index.htm)
- [Arab Republic of Egypt and the IMF](http://www.imf.org/external/country/EGY/index.htm)
- [Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm)
- [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)
- [Transcripts](https://www.imf.org/en/news/searchnews)
- [Gerry Rice](https://www.imf.org/external/np/bio/eng/gr.htm)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Webcast](https://www.imf.org/external/mmedia/view.aspx?vid=2439283435001)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/28/04/54/tr060613_