{ "title": "Transcript of a Press Briefing with Gerry Rice, Director of the IMF Communications Department and IMF Spokesman", "publication": "IMF News, March 9, 2017", "sourceUrl": "https://www.imf.org/en/news/articles/2017/03/09/tr030917-transcript-of-a-press-briefing-with-gerry-rice", "canonical": "https://www.imf.org/en/news/articles/2017/03/09/tr030917-transcript-of-a-press-briefing-with-gerry-rice", "overlayPath": "/en/news/articles/2017/03/09/tr030917-transcript-of-a-press-briefing-with-gerry-rice/index.md", "summary": "Press briefing embargo: until 10:30 a.m. Washington D.C. time (day of briefing).", "publishDate": "2017-03-09", "sections": [ { "heading": "Announcements and upcoming IMF outputs and events", "content": "- Press briefing embargo: until 10:30 a.m. Washington D.C. time (day of briefing).\n- Upcoming IMF releases and appearances:\n - March 14: G20 Surveillance Note release accompanied by a blog by Christine Lagarde, Managing Director; sets stage for G20 Finance Ministers and Central Bank Governors meeting in Baden-Baden, Germany later that week.\n - March 14: Christine Lagarde participating as a member of the UN's high-level panel on women's economic empowerment in New York City.\n - March 16: Christine Lagarde participating in an IIF event in Frankfurt, Germany (discussion with Tim Adams, title: \"the G20 agenda under the German presidency\").\n - March 17 and 18: Christine Lagarde and David Lipton will participate in the G20 meeting in Baden-Baden.\n - March 18 and 20: China Development Forum in Beijing; Deputy Managing Director Tao Zhang to attend.\n - March 20: IMF Board meeting scheduled on Ukraine (confirmed during briefing).\n - Maury (Maurice) Obstfeld, Economic Counselor, to release a paper on labor and product market reforms in advanced economies; presentation at a conference in Berlin at the German Institute for Economic Research (paper title referenced: labor and product market reforms in advanced economies; fiscal costs, gains and support).\n - April: World Economic Outlook update (timing indicated for Brazil forecasts and others).\n - External Sector Report (ESR) update: referenced as upcoming in a few months' time / later this year." }, { "heading": "China: growth outlook and reform priorities", "content": "- Growth assessment:\n - IMF view: \"China's current strong economic momentum is likely to make 6.5 percent growth for 2017 achievable.\"\n - Noted official target cited from questioner: \"GDP gross target over 2017 at around 6.5 percent\", contrasted with \"tax range of 6.5 to 7 percent last year\" (as quoted by questioner).\n- Policy advice and reform priorities (as stated by Mr. Rice):\n - Advise less focus on high GDP growth targets per se; more focus on:\n - Tackling excessive credit growth.\n - Hardening budget constraints on state-owned enterprises.\n - Boosting the social security system.\n - Welcome China's commitment to multilateralism and international trade.\n- Assessment of reform progress:\n - Progress described as \"impressive\" but \"uneven\" on rebalancing and reform.\n - Specific observations: more progress on switching from industry to services and on financial-market liberalization; less progress on tackling credit growth and hardening state-owned-enterprise budget constraints.\n - Consequence: \"vulnerabilities are still rising and buffers are eroding\"; calls for greater urgency in implementation.\n- Capital flows:\n - Capital flows seen as a natural consequence of capital-account liberalization and global financial conditions.\n - Capital outflows become a concern only if they give rise to a \"disorderly adjustment in the exchange rate and the economy more broadly\"; IMF does not see that concern warranted \"right now.\"\n- External sector:\n - \"The large current account surplus of a decade ago has been much reduced\" — work on external sector continues." }, { "heading": "Trade, global imbalances, and the G20 surveillance agenda", "content": "- IMF stance on trade:\n - \"Trade as an engine of growth for the U.S., and the global economy.\"\n - Trade deficits and surpluses are considered in the IMF’s multilateral-consistent assessment of external accounts (referenced vehicle: External Sector Report, ESR).\n - Trade is part of the growth equation but \"not the only part\"; IMF analysis is comprehensive.\n - Position: support for an open trade system conducted \"under fair rules, well enforced.\"\n- On global imbalances:\n - IMF monitors imbalances on an ongoing basis via Article IVs and the External Sector Report; no new specific judgment delivered at briefing beyond continued monitoring.\n- G20 focus (IMF perspective heading into Baden-Baden):\n - Priority on maintaining growth momentum and making growth more inclusive.\n - Strengthening global integration and addressing international financial architecture, financial regulation, international taxation cited as likely topics.\n - Exchange rates expected to be a topic of discussion; no specific confirmation about \"currency manipulation\" on the agenda.\n - Africa flagged as an important part of the Germany G-20 presidency agenda." }, { "heading": "Ukraine: program status and IMF engagement", "content": "- IMF financial support history (as described):\n - IMF approved \"a $17.5 billion facility for Ukraine in the recent period.\"\n- Recent program progress:\n - IMF staff and Ukrainian authorities agreed on the third review of the program (announced the weekend prior to the briefing).\n - Board meeting on Ukraine scheduled for March 20 (confirmed).\n- Program objective:\n - Assist Ukraine to meet severe challenges and restore \"sustainable and inclusive growth, jobs.\"\n- Governance and use of IMF funds:\n - IMF affirms stringent guidelines and safeguards on use of IMF funds; governance record described as very strong." }, { "heading": "Brazil: recession and fiscal reform priorities", "content": "- Economic context:\n - Q4 2016 data underlines challenging situation.\n - 2016 GDP contraction cited by questioner: \"GDP 2016 decreased at 3.6 percent\" (questioner remark).\n - IMF view: Brazilian economy expected to \"come out of recession this year.\"\n- Fiscal policy priorities:\n - Welcome emphasis on addressing unsustainable debt trajectory and acting on the spending side.\n - Noted policy action: passing of a Constitutional amendment on the federal spending cap described as \"important progress.\"\n - Importance of enacting social security reform to bolster viability of the spending cap and ensure support for future generations.\n - Such measures expected to boost confidence and spur growth.\n- Forecast and timing:\n - April World Economic Outlook will update growth forecasts for Brazil and other countries, incorporating Q4 2016 data." }, { "heading": "Greece: negotiations and IMF stance", "content": "- Discussion posture:\n - IMF mission is in the field and actively discussing with Greek authorities and European partners; Mr. Rice limited comments to avoid interfering with ongoing discussions.\n- Public statements:\n - \"There has been progress in some important areas and we welcome that. However, differences remain in important areas.\"\n - \"It's still too early to speculate on when an agreement might be reached.\"\n- Board-level discussions:\n - Mr. Rice: not aware of any board-level discussions on the specific level of a possible IMF contribution to Greece." }, { "heading": "Mozambique: sovereign debt and IMF engagement", "content": "- Situation summary:\n - Mozambique \"faces a very challenging situation.\"\n - Mozambique defaulted in January on a bond coupon payment (January default referenced).\n- IMF engagement:\n - IMF mission visited Mozambique and the Fund is \"very much engaged\" to assist.\n - IMF has emphasized the importance of an independent audit to account for previously undisclosed spending.\n - Discussions on a possible new IMF-supported program continue, contingent on audit and other factors." }, { "heading": "Cameroon and the CEMAC region", "content": "- Regional context:\n - CEMAC: six Central African Economic nations (Central African Economic and monetary community).\n - Heads-of-state meeting in Yaoundé on December 23 requested IMF assistance to design reforms after severe shocks including sharp decline in oil prices.\n- IMF activity:\n - Missions already sent to Gabon and Republic of Congo; existing programs with Central African Republic and Chad.\n - IMF mission sent to Cameroon; press statement issued (reference to Corrine Deléchat press statement).\n- Security and economic risk:\n - IMF aware of events in the Anglophone regions (Northwest and Southwest Cameroon).\n - Macroeconomic impacts from such events typically felt with a lag; events starting in November likely had limited impact on 2016 production.\n - Risks to 2017 growth outlook include continuation of sociopolitical events in northwest and southwest regions.\n - Medium-term outlook described as \"positive, subject to the implementation of appropriate policies.\"" }, { "heading": "Jordan: fiscal measures and social protection", "content": "- Clarification of IMF role:\n - IMF does not impose programs; partners with members on program design and support.\n- Jordan’s situation:\n - Jordan faced difficult conditions due to external shocks.\n - IMF supports government reform program aimed at inclusive growth while sustaining macroeconomic stability and advancing structural reforms to promote investment and employment.\n- Revenue and social protection:\n - Program emphasized broadening the tax base to curb rising public debt while alleviating impacts on the most vulnerable.\n - IMF has not recommended specific products for higher taxes and has emphasized not raising prices of goods consumed by the poor.\n - Social protection is an important element of the government’s reform program.\n - Support for the government's November decision to increase food subsidies using budgetary savings from other measures; transitioning to a better-targeted subsidy system noted." }, { "heading": "ECB monetary policy reaction", "content": "- ECB decision that morning:\n - ECB kept interest rates and nonstandard monetary policy measures unchanged.\n - IMF view: ECB’s accommodative stance is improving credit conditions, supporting output recovery and a gradual rise in inflation.\n - IMF reassured by ECB’s commitment to use all instruments within its mandate to ensure sustained adjustment in inflation path consistent with medium-term price stability objective." }, { "heading": "Egypt: IMF program implementation and subsidies", "content": "- Program status:\n - IMF program with Egypt described as \"going well.\"\n - IMF team meeting with Egyptian authorities to prepare for the first review mission in April; formal assessment to occur in coming months.\n- Subsidies and social protection:\n - \"There is no plan to reduce food subsidies in the authorities’ programs supported by IMF’s EFF arrangement.\"\n - IMF supports social protection; supports decision to increase food subsidies in November funded by budgetary savings and supports transition to better-targeted subsidies." }, { "heading": "Closing and process remarks", "content": "- Mr. Rice reiterated IMF positions:\n - Continued monitoring of imbalances and exchange rate issues via Article IVs and the External Sector Report.\n - Preference to allow in-field missions and negotiations (e.g., Greece) to proceed without public interference.\n - Commitment to partner with member countries, ensure IMF safeguards and governance of IMF resources.\n- Practical notes:\n - Next substantive IMF public outputs referenced: G20 Surveillance Note (March 14), World Economic Outlook (April), External Sector Report (later in the year).\n - Mr. Rice concluded with plans to re-engage in a couple of weeks and good wishes for G20 attendees.\n\nTranscript of a Press Briefing with Gerry Rice, Washington, D.C., March 9, 2017 — IMF Communications Department.\n\n---\n\n\n References\n\n- Gerry Rice\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2017/03/09/tr030917-transcript-of-a-press-briefing-with-gerry-rice" } ], "bullets": [ "[Markdown version](/en/news/articles/2017/03/09/tr030917-transcript-of-a-press-briefing-with-gerry-rice/index.md)", "[Structured JSON version](/en/news/articles/2017/03/09/tr030917-transcript-of-a-press-briefing-with-gerry-rice/index.json)", "[Bundle manifest](/en/news/articles/2017/03/09/tr030917-transcript-of-a-press-briefing-with-gerry-rice/bundle-manifest.json)", "Published: March 9, 2017", "Press briefing embargo: until 10:30 a.m. Washington D.C. time (day of briefing).", "Upcoming IMF releases and appearances:", "Growth assessment:", "Policy advice and reform priorities (as stated by Mr. Rice):", "Assessment of reform progress:", "Capital flows:", "External sector:", "IMF stance on trade:", "On global imbalances:", "G20 focus (IMF perspective heading into Baden-Baden):", "IMF financial support history (as described):", "Recent program progress:", "Program objective:", "Governance and use of IMF funds:", "Economic context:", "Fiscal policy priorities:", "Forecast and timing:", "Discussion posture:", "Public statements:", "Board-level discussions:", "Situation summary:", "IMF engagement:", "Regional context:", "IMF activity:", "Security and economic risk:", "Clarification of IMF role:", "Jordan’s situation:", "Revenue and social protection:", "ECB decision that morning:", "Program status:", "Subsidies and social protection:", "Mr. Rice reiterated IMF positions:", "Practical notes:", "[Gerry Rice](http://www.imf.org/external/np/bio/eng/gr.htm)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2017/03/09/tr030917-transcript-of-a-press-briefing-with-gerry-rice/index.md", "json": "/en/news/articles/2017/03/09/tr030917-transcript-of-a-press-briefing-with-gerry-rice/index.json", "bundleManifest": "/en/news/articles/2017/03/09/tr030917-transcript-of-a-press-briefing-with-gerry-rice/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T20:39:24.233Z" }