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

_IMF News, July 23, 2015_

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## Bibliographic details
- Published: July 23, 2015

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### Announcements and logistics
- Managing Director Christine Lagarde to hold a virtual press conference via the Online Media Briefing Center on Wednesday, July 29 at 9:15 a.m. D.C. Time.
- External Sector Report to be released on Tuesday, July 28; First Deputy Managing Director David Lipton to hold a conference call on that release.
- Several Article IV reports forthcoming, including Japan (already released that morning), China (early next week), and the Euro Area (dates/timing to be circulated by Media Relations).
- Management travel: Deputy Managing Director Mitsuhiro Furusawa in El Salvador for a Central America / Panama / Dominican Republic conference.
- IMF resident representative (resrep) office maintains a small presence in Athens.

### Greece — mission timing, IMF role, and program conditions
- Timing, modalities, and process for an IMF mission to Greece remain to be decided; IMF has not been on the ground in Greece for some time and will undertake essential technical due diligence before updates.
- Staff rotation: Delia Velculescu will succeed Rishi (Mr. Goyal) as part of a standard professional rotation.
- Preconditions for IMF participation or a new IMF program:
  - Sufficient progress to assess policy reforms (commitment and implementation); and
  - Financing with a high probability that debt will be sustainable over the medium term.
- IMF stance and procedures:
  - IMF stands ready to support Greece and partners but would need a formal request from the Greek authorities to negotiate a new program.
  - IMF participation would be contingent on a “balanced approach” — reforms plus financing/debt relief.
  - IMF did not support the proposed temporary exit option.
- Repayment extensions and arrears:
  - Greece repaid outstanding amounts and is current with the IMF; therefore requests for extension of repayment are “probably moot” because Greece is not in arrears.
- Clarifications:
  - No confirmation that IMF will or will not participate in the first review of the European program; modalities to be decided.
  - The ESM three-year program figure of “86 billion euros over three years” was mentioned in discussion; IMF has no present allocation breakdown or commitment figures.

### Debt relief and sustainability
- IMF position: debt relief is required for an effective support program for Greece — IMF has laid out options in the DSA but has not recommended a specific approach; a specific concrete commitment on debt relief would be needed from European partners.
- IMF participation would depend on concrete commitments on debt relief as part of the financing package.
- Any new or additional IMF financing commitment would require approval by the IMF Board.

### SDR review and the renminbi (China)
- The SDR review (Chinese request for the renminbi to be included in the SDR basket) is progressing:
  - Informal board discussion toward the end of July.
  - Formal board discussion expected toward the end of the year, “probably in November.”
- Key assessment elements include financial market reforms in China, renminbi internationalization, capital market development, and market liquidity considerations; short-term market volatility is not the deciding factor for the SDR decision.

### Ukraine
- IMF Board meeting tentatively scheduled for July 31, subject to verification of the last prior action and avoidance of policy reversals.
- IMF expects Ukraine and its creditors to make significant progress toward an agreement in line with the memorandum of understanding before the review; ad hoc creditor committee and authorities showed progress in joint statements on July 1 and July 15.
- Ukraine currently current on payments; the Fund declined to speculate on specific upcoming payment events prior to July 31.
- IMF notes the distinct circumstances of Ukraine and Greece and that debt sustainability and restructuring considerations differ by country.

### Pakistan, Brazil, Jamaica, Cyprus (other country updates)
- Pakistan: Mission for the 8th review scheduled to start work on July 29 and run until August 7.
- Brazil: Government cut its 2015 fiscal target from “1.2 percent” to “0.15 percent”; IMF frames this against a deeper recession affecting tax revenue and emphasizes continued measures to strengthen the primary fiscal balance and restore fiscal sustainability.
- Jamaica: IMF “welcomes” Jamaica’s proactive debt management and supports the buyback; Jamaica recently completed the 8th review and the transaction supports a downward trajectory for public debt.
- Cyprus: IMF team in Nicosia discussing policies to complete the 8th review; team expected to end its visit on Friday, July 24. Recent return to growth in Cyprus noted as positive evidence that reforms are bearing fruit.

### Process, governance, and decision points
- Any new IMF financing would require a formal request from the member country and Board approval.
- The External Sector Report (release July 28) will update IMF assessments on exchange rates and current account imbalances, including previous IMF assessments regarding German competitiveness.
- Staff reports and Board discussions will be the vehicle for formal IMF assessments and decisions (e.g., Ukraine staff report to be published following Board consideration).

### Exact dates and figures referenced in the briefing
- July 23, 2015 — date of the briefing.
- Embargo lifted at 10:30 a.m. Washington, D.C. Time.
- Managing Director virtual press conference: Wednesday, July 29 at 9:15 a.m. D.C. Time.
- External Sector Report release: Tuesday, July 28.
- Pakistan 8th review mission: July 29–August 7.
- Cyprus IMF team visit end date: Friday, July 24.
- Ukraine tentative Board meeting: July 31.
- SDR formal board discussion: toward the end of the year, “probably in November.”
- Brazil 2015 fiscal target revised from “1.2 percent” to “0.15 percent.”
- ESM program size referenced in discussion: “86 billion euros over three years.”

*Transcript of a Press Briefing by Gerry Rice, Director, Communications Department — July 23, 2015*

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## References

- [People's Republic of China and the IMF](http://www.imf.org/external/country/CHN/index.htm)
- [Cyprus and the IMF](http://www.imf.org/external/country/CYP/index.htm)
- [Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm)
- [Jamaica and the IMF](http://www.imf.org/external/country/JAM/index.htm)
- [Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm)
- [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)
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- [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/tr072315_