## Transcript of the IMFC Press Briefing

_IMF News, October 8, 2016_

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## Bibliographic details
- Published: October 8, 2016

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### Event and contacts
- Date: October 8, 2016
- IMF Communications Department — MEDIA RELATIONS
- PRESS OFFICER: Phone: +1 202 623-7100 Email: MEDIA@IMF.org
- Speakers: Agustín Carstens (Chairman of the IMFC and Governor, Banco de México); Christine Lagarde (Managing Director, IMF); Gerry Rice (Director, Communications Department)

### Opening summary (Chairman’s remarks)
- Discussions at the IMFC were described as "extremely productive" with collective sharing of views and possible solutions to economic and financial challenges.
- Sympathy and support extended to governments of the Caribbean, especially Haiti, regarding Hurricane Matthew.
- Characterization of the global economic message echoed by the Managing Director: "too low for too long and benefiting too few."

### Economic outlook and downside risks
- The economic outlook described as mixed with concerns about global activity and a range of downside risks.
- Signs of recovery noted as slow and principally focused on emerging market economies and a few advanced economies.
- Concern about increasingly inward‑looking policies that may derail benefits of globalization, open trade and markets, and technological change.

### Policy priorities and commitments (from IMFC communiqué)
- Commitments:
  - Strong, sustainable, inclusive job reach and more balanced growth.
  - Use of all policy tools: structural reforms, fiscal and monetary, exploiting synergies among them.
  - Reaffirmed commitment to communicate policies clearly, resist all forms of protectionism, and refrain from competitive devaluations.
  - Ensure that everyone has the opportunity to benefit from globalization and technological change.
- Specific policy priorities underscored:
  - Growth‑friendly fiscal policy.
  - Continue supportive monetary policy in advanced economies.
  - Prioritize structural reforms to raise potential growth.
  - Effective financial sector policies to address legacies from the global financial crisis and head off potential systemic risks.
  - Stronger global cooperation, including a concerted effort to maintain economic openness and reinvigorate global trade.

### IMF institutional issues, lending capacity, and quotas
- IMF to explore further the impact of globalization and technological change, and to help membership understand policy impacts on inequality.
- Endorsed continuing work on challenges facing low‑income countries and fragile states, and capacity‑building.
- Welcomed extension of the zero interest rate on all IMFC concessional loans and contributions to PRGT loan mobilization efforts.
- Membership welcomed steps to maintain current lending capacity and reiterated commitment to a strong quota‑based and adequately‑resourced IMF as important for the Global Financial Safety Net.
- Welcomed strong pledges to extend IMFC access to bilateral borrowing as a backstop for IMF resources.
- Noted a general quota increase was just completed and that concluding the 15th General Review of Quotas and agreeing on a new quota formula will take additional time.

### Country-specific notes and program sequencing
- Egypt:
  - A staff‑level agreement reached about three weeks prior identifying reforms to unleash growth.
  - A proposed program: US$12 billion over a period of three years.
  - Several prior actions (including on the exchange rate and subsidies) need to be completed before Board review and first tranche release; prior actions described as "almost completed, not quite."
  - Sequence for first tranche: complete prior actions → convene Board → Board review and approval → first tranche released.
- Mexico:
  - Acknowledgement that Mexico has undertaken major reforms (education, telecommunications, oil industry, licenses).
  - Fiscal policy continuity expected under new Finance Minister Mr. Jose Antonio Meade.
  - Recognition that spillover effects from decisions made outside Mexico are a concern for growth.
- SDR and renminbi inclusion:
  - Integration of the renminbi into the SDR basket was time‑consuming and required reforms by Chinese authorities to meet inclusion criteria.
  - Confidence expressed that there will be more issuance of SDR‑labeled and ‑quoted bonds; process expected to take time.

### Trade, globalization, and inclusiveness
- Trade performance: volume of trade has been weak since 2009 and not showing stellar performance.
- Protectionist measures: "more than 1,400 restrictive trade measures have been adopted only in G20 countries during the last year."
- Emphasis:
  - Promote growth through trade and technological change.
  - Address those left behind by globalization through targeted government measures.
  - Advocate a comprehensive approach combining monetary policy, fiscal policy, and structural reforms because monetary policy alone is insufficient to raise growth.

### Q&A highlights
- IMF self‑assessment and reforms:
  - The IMF welcomes ex‑post review and Independent Evaluation Office recommendations, has learned and modified practices to remain "fit for purpose."
- Political uncertainty and inclusiveness:
  - Managing Director emphasized respect for all human beings, focus on addressing discrimination and barriers to jobs and finance for women, and the economic uplift from closing gender participation gaps.
- Need for coordinated policy action:
  - Reiteration that central bankers cannot be the only actors; fiscal and structural measures are needed to move the growth needle.

*Transcript of the IMFC Press Briefing, October 8, 2016 — IMF Communications Department*

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## References

- [People's Republic of China and the IMF](http://www.imf.org/external/country/CHN/index.htm)
- [Arab Republic of Egypt and the IMF](http://www.imf.org/external/country/EGY/index.htm)
- [Haiti and the IMF](http://www.imf.org/external/country/HTI/index.htm)
- [Mexico and the IMF](http://www.imf.org/external/country/MEX/index.htm)
- [IMF Quotas -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2022/imf-quotas)
- [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/2016/10/08/am16-tr100816-transcript-of-the-imfc-press-briefing_