Transcript of a Press Briefing by William Murray, Deputy Spokesman, Communications Department, International Monetary Fund
IMF News, July 25, 2013
Source details
- Canonical URL
- Transcript of a Press Briefing by William Murray, Deputy Spokesman, Communications Department, International Monetary Fund
Other formats
Bibliographic details
- Published: July 25, 2013
Opening, schedule, and communications
- Briefing embargoed until 10:30 a.m., Washington time, that's 3:30 p.m., GMT.
- Ongoing and upcoming Article IV work:
- "At least a dozen" Article IV consultations are being discussed or will be published between now and early August.
- Euro Area Article IV consultation was published the same day as the briefing.
- Spain report scheduled for release next week.
- Greece review at the board is scheduled for Monday of next week.
- U.S. Article IV Consultation concluded at the Executive Board "yesterday"; the full U.S. staff report is expected to be published with precise timing to be provided by media relations.
- Spillover and external sector reports:
- Latest spillover report and the latest pilot external sector report will be public by August 2.
- Spillover analysis increasingly included in Article IV staff reports (often in annexes).
- Executive Board calendar and meetings:
- Executive Board annual summer recess starts the week of August 5 and will be "in recess for two weeks."
- Next IMF press briefing at headquarters planned for August 15.
- Press registration for the IMF/World Bank annual meetings (including the International Monetary and Financial Committee Meeting on October 11 and 12, and the Board of Governors meeting in mid-October) opens August 12.
Argentina case and amicus curiae brief
- Statement issued after Executive Board consultations on Tuesday, July 23:
- The Managing Director "has withdrawn her recommendation that the IMF Executive Board file an Amicus Curiae brief in the Argentina case, following the U.S. authorities' decision to no longer support the filing at this stage."
- The Managing Director's recommendation "was premised on U.S. support, as it would not be appropriate as a legal and policy matter for the IMF to file this brief without that support."
- IMF management and staff "remain concerned about the broad systemic implications that the lower court decision could have for the debt restricting process."
- Reasons given for not filing without U.S. support:
- Duty of neutrality in disputes involving member governments; filing without U.S. support "could potentially place the fund in the middle of a dispute between two Fund members which would breach this duty of neutrality."
- Lack of U.S. support "could undermine the effectiveness of the fund's filing."
- Core policy concern reiterated:
- "All countries should have flexibility on debt-restructuring. If that flexibility is compromised, that has potential global financial stability and systemic implications."
- Status and next steps:
- No decision has been made on future action; the Managing Director withdrew the recommendation "at this stage."
- IMF will not speculate on U.S. authorities' internal decisions; questions about U.S. rationale should be addressed to the U.S. Treasury.
Argentina data and INDEC
- Executive Board will review Argentina's data situation in November.
- IMF remains "in contact and working with the Argentinean authorities on CPI and GDP, the quality of their CPI and GDP data."
Country-specific updates and staff engagement
- China:
- IMF is conducting a full evaluation and has "ongoing discussions with the Chinese authorities on the quality of Chinese economic output."
- Recent government stimulus measures appear "in line with the government's reform agenda of streamlining—administer procedures and encouraging growth of small and medium enterprises, and also improving the business climate in China."
- Recent interest rate deregulation is "also something we welcome."
- Greece:
- Temporary VAT reduction for restaurants and catering announced by Greek authorities:
- Effective "August 1 to December 31" (temporary reduction).
- Announcement followed "close consultation with the IMF, the ECB and the EC—the staffs."
- Staff "did not object to the reduction because the authorities are taking measures to offset expected revenue losses" and the reduction being temporary "means that the reduction in that proceeds from restaurants and caterers will not affect our fiscal targets in 2013."
- IMF mission recently back in Washington to finish business ahead of the board; no indication IMF is leaving Greece "anytime soon."
- IMF maintains "a strong and effective relationship with the ECB and the European Commission."
- Egypt:
- No contact with the Egyptian government; "technical level contacts with Central Bank and Finance Ministry technicians" only.
- IMF engagement with a government depends on international recognition by members; until members make a decision IMF contacts will remain technical.
- Ukraine:
- Mission to Kiev in April conducted technical-level discussions on policies that could form part of a Fund-supported program.
- "There have been no in-depth discussions of such a program at the policy level since April."
- Staff preparing for the 2013 Article IV Consultation, expected "sometime in the autumn"; Article IV will provide the Executive Board an opportunity to discuss Ukraine's challenges before the end of 2013 (rough timing: "roughly in the November timeframe").
- Cyprus:
- Mission on the ground conducting the first review of the extended fund facility.
- Mission expected to "wrap up fairly soon"; mission will communicate with media and others in Nicosia upon completion.
- Talks focus on financial sector reform, macroeconomic and fiscal performance, economic outlook, and structural reforms.
- Portugal:
- IMF has "active, ongoing relationships" with Portuguese government; no specific comment on personnel moves.
- IMF looks forward to continuing to support Portugal's efforts to create conditions for sustained recovery, sustainable growth, and job creation.
- South Sudan and Sudan:
- Recent firings and non-passage of the petroleum act: IMF views effects as "likely to be quite severe" given reserve buffer rundown since 2011 and "progressive build up of economic and social tensions."
- IMF hopes both countries will implement recent agreements, given their importance for regional peace and economic stability, and to relieve economic pressures since oil was shut down in January of 2012.
- Hungary:
- Plan to close the resident representative office in Budapest: current Resident Representative posting "expires next month" and the office will "probably remain unfilled."
- Hungary remains a member of the IMF and relations with Hungarian officials will continue on a broad basis.
- United States:
- U.S. Article IV Consultation "concluded yesterday at the Executive Board." Media relations to provide timing for the staff report publication.
Procedural and institutional notes
- IMF emphasizes neutrality in disputes between member governments; decisions to file briefs are contingent on member support, particularly when filing could involve placing the IMF between members.
- IMF staff uses spillover analysis and external sector reports to deepen surveillance and communicate systemic findings publicly.
- Press scheduling reminders:
- Next briefing August 15.
- Registration for annual meetings opens August 12.
Transcript of a Press Briefing by William Murray, Deputy Spokesman, Communications Department, International Monetary Fund, July 25, 2013.