{ "title": "Transcript Of IMF Press Briefing Thursday, February 23, 2017", "publication": "IMF News, February 23, 2017", "sourceUrl": "https://www.imf.org/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017", "canonical": "https://www.imf.org/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017", "overlayPath": "/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017/index.md", "summary": "Briefing embargoed until 10:30 a.m., Washington, D.C. time.", "publishDate": "2017-02-23", "sections": [ { "heading": "Announcements and logistics", "content": "- Briefing embargoed until 10:30 a.m., Washington, D.C. time.\n- Managing Director Christine Lagarde: was in Berlin (met Chancellor Merkel); today in Vienna.\n- Deputy Managing Director Mitsuhiro Furusawa: will be in Bangladesh, Malaysia, Singapore, and Japan; will speak at a joint seminar in Tokyo and Hitotsubashi University on March 8th.\n- IMF blog highlights:\n - \"The Issue of Inequality\" by Jonathan Ostry and Prakash Loungani (issued yesterday).\n - Upcoming blog \"Dealing with Sovereign Debt: The IMF Perspective\" co-authored by Sean Hagan, Maury Obstfeld, and Poul Thomsen (to be published later today).\n- Spring Meetings: pre-registration open." }, { "heading": "Greece — program status, \"two-leg\" approach, and mission timing", "content": "- IMF position: unchanged \"two-leg\" approach — reforms (policies) and debt relief are both required for IMF participation in a financing arrangement.\n- Requirements for IMF participation:\n - An upfront, credible commitment to specific debt relief measures is needed (implementation can be staged later).\n - Agreement on strong policies to credibly attain fiscal targets and return to sustainable growth.\n - Both discussions (policies and debt relief) and credible commitments on both must occur before IMF staff can recommend participation to the IMF Executive Board.\n- Recent developments:\n - After the Eurogroup meeting (Monday), IMF welcomed progress by Greek authorities and agreed to send the mission back to Athens.\n - Managing Director Lagarde met Chancellor Merkel (Berlin) and reiterated IMF willingness to support the ESM program with a financing arrangement once agreement is reached on a credible package of policies and debt relief.\n - Prime Minister Tsipras and Managing Director Lagarde have been in contact recently about resuming negotiations.\n- Mission timing:\n - Mission is returning to Athens early next week (after the briefing).\n- Media reports and rumors:\n - Reports that the Fund was considering a new loan to Greece of about $5 billion are not confirmed by the IMF; such reports are not correct.\n- On possible delay risks:\n - IMF acknowledges that delays can matter but notes progress and the resumption of mission discussions; stresses need to let discussions play out with urgency to serve Greece’s interests." }, { "heading": "Greece — questions on eurozone membership analysis", "content": "- IMF response on analysis of Greece exiting the euro:\n - IMF asserts a voluminous body of analysis on Greece over the last seven years (staff reports, ex post evaluations) that inform its view of Greece’s best economic interests.\n - IMF notes Greece’s explicit objective to retain eurozone membership, which is taken into account in IMF engagement and support.\n - IMF did not provide a single standalone public analysis debating pros and cons of euro exit at this briefing, but indicated existing material can be pointed to afterwards." }, { "heading": "Ukraine — program review status", "content": "- Progress: \"good progress\" on policies needed to complete the third review under the program; close discussions with authorities are continuing.\n- Timeline: if remaining issues are resolved soon, IMF expects to propose completion of the review to the Board \"in the coming weeks.\"\n- Remaining issues (general areas): pensions, governance, corruption — discussions ongoing.\n- IMF contacts in Ukraine: Finance Ministry, Office of the Prime Minister, National Bank (all key interlocutors)." }, { "heading": "China — renminbi (RMB) assessment and External Sector Report (ESR)", "content": "- Most recent IMF view: in the latest ESR and Article IV consultation with China (last summer), China’s currency was assessed as \"broadly in line with fundamentals.\"\n- Future assessment: an updated assessment of China’s exchange rate will be forthcoming in the summer of this year as part of the next ESR and Article IV consultation with China.\n- Broader context:\n - IMF has been encouraging China’s transformation and rebalancing for many years.\n - The large current account surplus of a decade ago has been much reduced.\n - Remaining reform needs include external trading and capital flow reforms; capital flows \"remain some distance from a sustainable balance.\"\n- On \"currency manipulator\" characterization: IMF will rely on its ESR and Article IV processes; will publish updated, multilateral-consistent assessments in due course." }, { "heading": "U.S. Treasury relations and expectations for frank assessments", "content": "- Managing Director Lagarde had a wide-ranging telephone conversation with U.S. Treasury Secretary Mnuchin; both sides described the discussion as constructive.\n- IMF stance: committed to providing frank, candid, multilateral-consistent assessments of members’ external sectors (Article IV and ESR) and intends to continue doing so.\n- Relationship outlook: IMF expects continued strong, productive relationship with the United States, a major shareholder." }, { "heading": "Brazil — economic outlook", "content": "- Recent conditions:\n - Brazil is coming out of its longest recorded recession.\n - GDP continued to contract in the third quarter of 2016.\n - Activity indicators point to a delayed recovery as private spending remains weak.\n- IMF forecast:\n - January WEO update forecasts real GDP will return to positive growth in 2017.\n - Elevated unemployment and high private sector debt will continue to drag on demand.\n - IMF will update forecasts in the April World Economic Outlook, incorporating Q4 2016 data and factors such as an expected bumper crop in 2017." }, { "heading": "Humanitarian crises and UN appeal", "content": "- IMF reaction: noted developments with concern and will stay in contact with authorities to discuss how IMF can be supportive.\n- Example cited: ongoing conflict in places like South Sudan with severe impacts on livelihoods; outbreak of famine would exacerbate conditions." }, { "heading": "Nigeria — IMF program stance and Article IV timing", "content": "- Nigerian authorities have stated they will not apply for an IMF program; IMF has no program discussions or negotiations underway with Nigeria.\n- IMF engagement: concluded 2017 Article IV consultation; IMF Board discussion scheduled for later in March.\n- IMF offers technical assistance and productive dialogue and stands ready to help if Nigeria requests financial assistance.\n- IMF view on policy urgency: a coherent and credible package of monetary, fiscal, and structural policies is needed urgently; the window for bold reforms is closing as the 2019 elections approach." }, { "heading": "Forecasts and publication timing", "content": "- No IMF projections or forecasts expected to be updated before the Spring Meetings (no information suggesting earlier publication).\n- April World Economic Outlook will update forecasts (explicitly noted for Brazil)." }, { "heading": "Media reports clarification", "content": "- Reports in the German press suggesting Managing Director Lagarde agreed to provide 5 billion euros as part of IMF participation in a Greek program are not correct.\n\nTranscript Of IMF Press Briefing Thursday, February 23, 2017 — IMF Communications Department\n\n---\n\n\n References\n\n- People's Republic of China and the IMF\n- Brazil and the IMF\n- Greece and the IMF\n- Nigeria and the IMF\n- Ukraine and the IMF\n- United States and the IMF\n- IMF Policy Advice -- A Factsheet\n- Proposals for a Sovereign Debt Restructuring Mechanism (SDRM) -- A Factsheet\n- Transcripts\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017" } ], "bullets": [ "[Markdown version](/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017/index.md)", "[Structured JSON version](/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017/index.json)", "[Bundle manifest](/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017/bundle-manifest.json)", "Published: February 23, 2017", "Briefing embargoed until 10:30 a.m., Washington, D.C. time.", "Managing Director Christine Lagarde: was in Berlin (met Chancellor Merkel); today in Vienna.", "Deputy Managing Director Mitsuhiro Furusawa: will be in Bangladesh, Malaysia, Singapore, and Japan; will speak at a joint seminar in Tokyo and Hitotsubashi University on March 8th.", "IMF blog highlights:", "Spring Meetings: pre-registration open.", "IMF position: unchanged \"two-leg\" approach — reforms (policies) and debt relief are both required for IMF participation in a financing arrangement.", "Requirements for IMF participation:", "Recent developments:", "Mission timing:", "Media reports and rumors:", "On possible delay risks:", "IMF response on analysis of Greece exiting the euro:", "Progress: \"good progress\" on policies needed to complete the third review under the program; close discussions with authorities are continuing.", "Timeline: if remaining issues are resolved soon, IMF expects to propose completion of the review to the Board \"in the coming weeks.\"", "Remaining issues (general areas): pensions, governance, corruption — discussions ongoing.", "IMF contacts in Ukraine: Finance Ministry, Office of the Prime Minister, National Bank (all key interlocutors).", "Most recent IMF view: in the latest ESR and Article IV consultation with China (last summer), China’s currency was assessed as \"broadly in line with fundamentals.\"", "Future assessment: an updated assessment of China’s exchange rate will be forthcoming in the summer of this year as part of the next ESR and Article IV consultation with China.", "Broader context:", "On \"currency manipulator\" characterization: IMF will rely on its ESR and Article IV processes; will publish updated, multilateral-consistent assessments in due course.", "Managing Director Lagarde had a wide-ranging telephone conversation with U.S. Treasury Secretary Mnuchin; both sides described the discussion as constructive.", "IMF stance: committed to providing frank, candid, multilateral-consistent assessments of members’ external sectors (Article IV and ESR) and intends to continue doing so.", "Relationship outlook: IMF expects continued strong, productive relationship with the United States, a major shareholder.", "Recent conditions:", "IMF forecast:", "IMF reaction: noted developments with concern and will stay in contact with authorities to discuss how IMF can be supportive.", "Example cited: ongoing conflict in places like South Sudan with severe impacts on livelihoods; outbreak of famine would exacerbate conditions.", "Nigerian authorities have stated they will not apply for an IMF program; IMF has no program discussions or negotiations underway with Nigeria.", "IMF engagement: concluded 2017 Article IV consultation; IMF Board discussion scheduled for later in March.", "IMF offers technical assistance and productive dialogue and stands ready to help if Nigeria requests financial assistance.", "IMF view on policy urgency: a coherent and credible package of monetary, fiscal, and structural policies is needed urgently; the window for bold reforms is closing as the 2019 elections approach.", "No IMF projections or forecasts expected to be updated before the Spring Meetings (no information suggesting earlier publication).", "April World Economic Outlook will update forecasts (explicitly noted for Brazil).", "Reports in the German press suggesting Managing Director Lagarde agreed to provide 5 billion euros as part of IMF participation in a Greek program are not correct.", "[People's Republic of China and the IMF](http://www.imf.org/external/country/CHN/index.htm)", "[Brazil and the IMF](http://www.imf.org/external/country/BRA/index.htm)", "[Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm)", "[Nigeria and the IMF](http://www.imf.org/external/country/NGA/index.htm)", "[Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm)", "[United States and the IMF](http://www.imf.org/external/country/USA/index.htm)", "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)", "[Proposals for a Sovereign Debt Restructuring Mechanism (SDRM) -- A Factsheet](https://www.imf.org/external/np/exr/facts/sdrm.htm)", "[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)" ], "alternates": { "markdown": "/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017/index.md", "json": "/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017/index.json", "bundleManifest": "/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T20:37:32.975Z" }