## Transcript Of IMF Press Briefing Thursday, February 23, 2017

_IMF News, February 23, 2017_

## Source details

**Canonical URL:** [Transcript Of IMF Press Briefing Thursday, February 23, 2017](https://www.imf.org/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017)

## Other formats

- [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)

## Bibliographic details
- Published: February 23, 2017

---

### Announcements and logistics
- 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:
  - "The Issue of Inequality" by Jonathan Ostry and Prakash Loungani (issued yesterday).
  - Upcoming blog "Dealing with Sovereign Debt: The IMF Perspective" co-authored by Sean Hagan, Maury Obstfeld, and Poul Thomsen (to be published later today).
- Spring Meetings: pre-registration open.

### Greece — program status, "two-leg" approach, and mission timing
- 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:
  - An upfront, credible commitment to specific debt relief measures is needed (implementation can be staged later).
  - Agreement on strong policies to credibly attain fiscal targets and return to sustainable growth.
  - Both discussions (policies and debt relief) and credible commitments on both must occur before IMF staff can recommend participation to the IMF Executive Board.
- Recent developments:
  - After the Eurogroup meeting (Monday), IMF welcomed progress by Greek authorities and agreed to send the mission back to Athens.
  - 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.
  - Prime Minister Tsipras and Managing Director Lagarde have been in contact recently about resuming negotiations.
- Mission timing:
  - Mission is returning to Athens early next week (after the briefing).
- Media reports and rumors:
  - 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.
- On possible delay risks:
  - 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.

### Greece — questions on eurozone membership analysis
- IMF response on analysis of Greece exiting the euro:
  - 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.
  - IMF notes Greece’s explicit objective to retain eurozone membership, which is taken into account in IMF engagement and support.
  - 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.

### Ukraine — program review status
- 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).

### China — renminbi (RMB) assessment and External Sector Report (ESR)
- 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:
  - IMF has been encouraging China’s transformation and rebalancing for many years.
  - The large current account surplus of a decade ago has been much reduced.
  - Remaining reform needs include external trading and capital flow reforms; capital flows "remain some distance from a sustainable balance."
- On "currency manipulator" characterization: IMF will rely on its ESR and Article IV processes; will publish updated, multilateral-consistent assessments in due course.

### U.S. Treasury relations and expectations for frank assessments
- 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.

### Brazil — economic outlook
- Recent conditions:
  - Brazil is coming out of its longest recorded recession.
  - GDP continued to contract in the third quarter of 2016.
  - Activity indicators point to a delayed recovery as private spending remains weak.
- IMF forecast:
  - January WEO update forecasts real GDP will return to positive growth in 2017.
  - Elevated unemployment and high private sector debt will continue to drag on demand.
  - IMF will update forecasts in the April World Economic Outlook, incorporating Q4 2016 data and factors such as an expected bumper crop in 2017.

### Humanitarian crises and UN appeal
- 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.

### Nigeria — IMF program stance and Article IV timing
- 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.

### Forecasts and publication timing
- 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).

### Media reports clarification
- 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.

*Transcript Of IMF Press Briefing Thursday, February 23, 2017 — IMF Communications Department*

---


## References

- [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)

_Source: https://www.imf.org/en/news/articles/2017/02/23/tr02232017-transcript-of-imf-press-briefing-thursday-february-23-2017_