## Transcript of a Press Briefing with Gerry Rice, Director of the IMF Communications Department and IMF Spokesman _IMF News, September 1, 2016_ ## Source details **Canonical URL:** [Transcript of a Press Briefing with Gerry Rice, Director of the IMF Communications Department and IMF Spokesman](https://www.imf.org/en/news/articles/2016/09/06/tr01092016-transcript-of-a-press-briefing-with-gerry-rice-director-of-the-imf-communications) ## Other formats - [Markdown version](/en/news/articles/2016/09/06/tr01092016-transcript-of-a-press-briefing-with-gerry-rice-director-of-the-imf-communications/index.md) - [Structured JSON version](/en/news/articles/2016/09/06/tr01092016-transcript-of-a-press-briefing-with-gerry-rice-director-of-the-imf-communications/index.json) - [Bundle manifest](/en/news/articles/2016/09/06/tr01092016-transcript-of-a-press-briefing-with-gerry-rice-director-of-the-imf-communications/bundle-manifest.json) ## Bibliographic details - Published: September 1, 2016 --- ### Global outlook and G-20 note (Helge Berger) - Main messages - Concern about low growth and low growth persisting for a long time. - Current policies appear insufficient to change the low-growth trajectory. - Combination of low growth and inequality increases policy challenges. - Call for an ambitious growth strategy that lifts growth and makes it more widely shared. - Short- and long-term drivers of weak growth - Short-term: continued weakness in a number of countries (notably advanced economies); U.S. first-half growth much lower than expected leading to a planned downgrade of the U.S. outlook. - Long-term: negative dynamics including weak investment ↔ slower trade ↔ lower productivity; high corporate debt and impaired bank balance sheets reduce investment incentives; aging populations and low productivity growth (especially in advanced economies). - Political risks: concern that political climate and inward-looking policies could stall reforms and worsen growth. - Policy strategy recommended - Short-term support where demand is lacking, with fiscal policy playing a more prominent role where there is fiscal space (monetary policy stretched thin in many countries). - Fast implementation of G-20 commitments on structural reforms and infrastructure investment; additional measures in many countries needed to meet the G-20 commitment to increase GDP in 2018 by 2 percent. - Policies to ensure inclusive growth: skill building, fostering mobility, well-designed tax-benefit systems, and promotion of trade with attention to distributional outcomes. - Forecast process and timing - IMF preparing new forecasts for the October World Economic Outlook (WEO). - For the U.S., given first two quarters’ developments, a downgrade of the outlook is expected. - Global forecast adjustments remain contingent on mixed data across countries; formal updates planned in October. ### Country-specific updates, missions, and operational matters - Ukraine - Existing IMF program approved last year in the amount of about 17.5 billion. - Second review discussions are very close to being finalized; Board meeting expected to be announced shortly once technical timing issues are resolved. - Staff welcomed contacts between Ukraine and Russia on Eurobond issue but is not party to those negotiations; Board will assess good-faith requirements under the Fund’s lending-into-arrears policy when it meets. - Greece - IMF will conduct a regular Article IV consultation with Greece in the second half of September. - Last Article IV concluded in June 2013. - Article IV mission typically lasts a couple of weeks; staff concluding statement expected at mission end. - Article IV findings and data feed into sequencing of any IMF participation in programs and the DSA; timing will be sequenced with program discussions. - IMF has implemented changes since the 2010 program and continues to incorporate lessons from the Independent Evaluation Office (IEO) assessment; IMF stance remains that future IMF participation requires both reforms and debt relief. - On ELSTAT and allegations regarding Mr. Georgiou: IMF does not comment on individual legal proceedings; Mr. Georgiou is a former IMF staff member; IMF will engage Greek authorities to ascertain the accuracy of reported data. - Egypt - Staff-level agreement reached on August 11 for a program in the amount of $12 billion, pending IMF Board approval. - IMF financing portion noted as $4 billion; Egyptian authorities seeking to mobilize five to six billion from others to complete the financing plan. - Board date expected in the coming weeks. - Mongolia - Mission on the ground August 16 -19 met with newly elected government officials; discussions productive; IMF monitoring and stands ready to support. - Mozambique - One IMF staff member has been appointed Governor of the Central Bank of Mozambique; status regarding IMF resignation not specified in briefing. - IMF staff team scheduled to be in Maputo on September 22 to review economic developments, the 2016 budget, monetary policy measures, and to take into account the fact-finding linked to previously undisclosed borrowing; visit expected to last about one week. - Zimbabwe - No financing program under discussion at this point. - Authorities announced plans to clear arrears with the Fund and other institutions as part of reengagement; IMF financial support could only begin after arrears are cleared and the Board meets to approve normalization. - Venezuela - No change reported; no new contacts to announce. ### Financial markets, Brexit, and commodities - Brexit - Financial markets have largely taken the UK vote in stride; much of the initial slowdown in affected sectors has been undone. - IMF’s July update incorporated some short- and medium-term impacts of the UK vote; longer-term UK trajectory depends on exit terms and tradeoffs to be negotiated. - Commodities and risk management - IMF continues bilateral surveillance and country-level work on commodity shocks and related vulnerabilities. - No specific new IMF policy product for the annual meetings was announced in this briefing. ### Operational notes and timing - Embargo and publications - The G-20 note and a blog from the Managing Director were embargoed until 10:00 a.m. (Washington time) and scheduled for release that morning. - SDR and RNB inclusion - IMF noted that inclusion of the RNB in the SDR basket is on track; Gerry Rice subsequently noted October 1st is the date of inclusion of the RNB in the SDR basket. - Personnel and travel - Christine Lagarde and David Lipton to attend the G-20 Leader Summit in Hangzhou, with related travel to Laos for ASEAN and a visit to Canada the week of September 12 for meetings and lectures. ### Key dates and numeric figures (as stated in the briefing) - Embargo lift: 10:00 a.m. (Washington time). - IMF program amounts and financing - Ukraine program amount: about 17.5 billion. - Egypt staff-level agreement: $12 billion. - IMF financing portion for Egypt: $4 billion. - Additional financing sought by Egyptian authorities: five to six billion. - Missions and meetings - Mongolia mission: August 16 -19. - Mozambique IMF staff visit to Maputo: September 22 (expected to last about one week). - Greece Article IV consultation: second half of September. - Ukraine Board date: expected in the second half of September (targeted). - Forecasts and shares - U.S. share of global output noted as about 15 percent. - G-20 commitment referenced to increase GDP in 2018 by 2 percent. - SDR inclusion - RNB inclusion in the SDR basket: October 1st (noted by MR. Rice following the briefing). - Historical references - Last Greece Article IV concluded: June 2013. - First review of Ukraine program concluded: end of July, 2015. - Staff-level agreement with Egypt reached: August 11. *Italicized attribution line provided by the pipeline.* --- ## References - [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) - [Republic of Mozambique and the IMF](http://www.imf.org/external/country/MOZ/index.htm) - [Russian Federation and the IMF](http://www.imf.org/external/country/RUS/index.htm) - [Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm) - [Zimbabwe and the IMF](http://www.imf.org/external/country/ZWE/index.htm) - [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance) - [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr) - [Transcripts](https://www.imf.org/en/news/searchnews) - [PRESS CENTER](http://presscenter.imf.org/) - [https://www.imf.org/en/home](https://www.imf.org/en/home) _Source: https://www.imf.org/en/news/articles/2016/09/06/tr01092016-transcript-of-a-press-briefing-with-gerry-rice-director-of-the-imf-communications_