## Transcript of a Press Briefing by Gerry Rice, Director, External Relations, International Monetary Fund

_IMF News, November 1, 2012_

## Source details

**Canonical URL:** [Transcript of a Press Briefing by Gerry Rice, Director, External Relations, International Monetary Fund](https://www.imf.org/en/news/articles/2015/09/28/04/54/tr110112)

## Other formats

- [Markdown version](/en/news/articles/2015/09/28/04/54/tr110112/index.md)
- [Structured JSON version](/en/news/articles/2015/09/28/04/54/tr110112/index.json)
- [Bundle manifest](/en/news/articles/2015/09/28/04/54/tr110112/bundle-manifest.json)

## Bibliographic details
- Published: November 1, 2012

---

### Announcements and schedule
- Briefing date and location: November 1, 2012 — Washington, D.C.; briefing embargoed until 10:30 a.m.
- Upcoming engagements:
  - Managing Director Christine Lagarde and First Deputy Managing Director David Lipton: G-20 meeting of finance ministers and central bank governors in Mexico City on November 4 and 5.
  - Managing Director Lagarde: visits to Malaysia, the Philippines and Cambodia between November 14 and 20; attendance in Phnom Penh at the ASEAN Global Dialogue and the East Asia Summit.
  - First Deputy Managing Director David Lipton: London later this month, including a speech at the London School of Economics focused on transformation in the Middle East.
  - Jacques Polak Research Conference: November 8 and 9 at the Fund; theme “Labor Markets through the Lens of the Great Recession”.
  - Regional Economic Outlook for the Middle East, North Africa and Central Asia launch: Dubai on November 11.

### Greece — negotiations, program review, and debt sustainability
- Status:
  - “Most policy issues between Greece and the European Commission, the European Central Bank and the IMF are being settled and staff level agreement on economic policies could come soon.”
  - Completion of the first review under the Extended Fund Facility (EFF) requires understandings between Greece and its creditors on financing terms consistent with debt sustainability.
- Four components under discussion:
  - Fiscal reforms.
  - Structural reforms (good progress appears to be made).
  - Financing issues.
  - Financing consistent with debt sustainability.
- Financing specifics:
  - IMF will not disclose numbers under discussion.
  - Financing must be consistent with debt sustainability.
  - The IMF is precluded by its mandate from reducing the interest rates on its loans.
  - The existing Extended Fund Facility for Greece is “already at an extremely low interest rate and it's at the lowest that the IMF at the moment is capable of giving.”
- Debt-reduction options:
  - “There are many options to help reduce Greece's debt burden and they should be considered.”
  - Bond buy-backs “could be useful if they were implemented in such a way to deliver a meaningful reduction.”
  - Critical requirement: Greece's debt burden must be sustainable for program credibility.
- Process and timeline:
  - IMF staff completes its report and submits to the Executive Board; publication and review follow staff-level agreement on the review and financing package.
  - No timeline provided; issues are “very complicated, difficult” and expeditious resolution is desired.

### Lagarde List and tax compliance in Greece
- Core issue: equitable sharing of tax burden during adjustment; emphasis that “the better off, the well off, in Greek society pay their fair share.”
- On the specific “Lagarde List” episode: it relates to a period before the current Managing Director’s tenure; IMF refers inquiries to the French finance ministry.

### G-20 message and IMF agenda in Mexico City
- Expected messages:
  - Reiteration of the Tokyo Annual Meetings’ concerns on the global economy and uncertainty weighing on growth and the need for policy action.
  - Further discussion of global outlook, financial regulation, and the Global Financial Safety Net.
  - Follow-up on strengthening IMF surveillance, the integrated surveillance decision, the external sector report, and the global policy agenda discussed in Tokyo and the IMFC.
- IMF firepower:
  - Tokyo outcomes increased IMF firepower from $456 billion to $461 billion.
  - Tokyo also included pledges to strengthen the Poverty Reduction and Growth Trust to put IMF financing for low-income countries on a sustainable footing.

### Egypt — loan discussions and IMF engagement
- IMF technical mission began negotiations with Egyptian authorities in Cairo this week on an economic reform program.
- Details withheld while mission is in the field.
- IMF stance: “The Fund stands ready to support Egypt and looks forward to working closely with the authorities on a program that addresses the country's economic challenges in a way that protects the vulnerable sectors of society.”

### Spain and Italy — banking, reforms, and possible assistance
- Spain:
  - Decision whether to request further assistance is for the Spanish government to decide.
  - IMF completed the first monitoring mission of the banking sector; main finding: “important progress has been made in reforming the financial sector in Spain” and “it’s important to maintain that momentum.”
  - IMF supports Spain’s reforms and emphasizes implementation as key.
- Italy:
  - Measures announced by the Italian government are “headed in the right direction” to overcome difficulties, restore growth and bring back employment; implementation is key.
- IMF participation in any European assistance:
  - IMF involvement requires a formal request; participation modalities would be worked out at the appropriate time.
  - IMF “stands ready to support within our frameworks and again contingent on country requests.”

### Hungary — program negotiations and prerequisites for resumption
- No mission currently planned; no date for resumption of talks.
- Meaningful progress requires:
  - Clear indication from Hungarian authorities that they see the IMF and the E.C. as valuable partners.
  - Clear commitment to policies that ensure balanced fiscal adjustment and promote growth.
- IMF has worked jointly with the E.U. in Hungary, including a joint E.U.-IMF mission in July; IMF maintains independent analysis and advice.

### Ukraine — engagement and program modality
- Authorities have expressed interest in resuming a program relationship with the Fund.
- Specific modalities and conditions have not yet been discussed.
- IMF engagement awaits the new government following the recent election.

### Cyprus — status of talks and follow-up mission
- IMF and the European Commission received counterproposals from Cypriot authorities on several policy issues; these are under analysis and discussion with Cypriot authorities and European partners.
- A follow-up mission to Cyprus is expected soon; dates have not been set.

### Mexico — Flexible Credit Line (FCL)
- IMF has taken note of recent Mexican statements regarding renewal of the FCL.
- Any renewal would be considered by the IMF’s Executive Board should a formal request be made.

### Portugal — recent review
- IMF completed the fifth review of Portugal last week; further details and Q&A are available in the press release and conference call transcript referenced by the Fund.

*Transcript of a Press Briefing by Gerry Rice, Director, External Relations, International Monetary Fund — November 1, 2012*

---


## 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)
- [Spain and the IMF](http://www.imf.org/external/country/ESP/index.htm)
- [Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm)
- [Hungary and the IMF](http://www.imf.org/external/country/HUN/index.htm)
- [Italy and the IMF](http://www.imf.org/external/country/ITA/index.htm)
- [Mexico and the IMF](http://www.imf.org/external/country/MEX/index.htm)
- [Portugal and the IMF](http://www.imf.org/external/country/PRT/index.htm)
- [Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm)
- [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=1939158046001)
- [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/tr110112_