{ "title": "Transcript of IMF Press Briefing (May 17, 2018)", "publication": "IMF News, May 17, 2018", "sourceUrl": "https://www.imf.org/en/news/articles/2018/05/17/tr051718-transcript-of-imf-press-briefing", "canonical": "https://www.imf.org/en/news/articles/2018/05/17/tr051718-transcript-of-imf-press-briefing", "overlayPath": "/en/news/articles/2018/05/17/tr051718-transcript-of-imf-press-briefing/index.md", "summary": "Our ultimate goal, of course, is to, again, help support the authorities in their efforts to strengthen the Argentine economy and protect the living standards of the Argentine people, and particularly for the most vulnerable groups in Argentina.", "publishDate": "2018-05-17", "sections": [ { "heading": "Argentina: request, program modality, and process", "content": "- Timeline and status:\n - Argentine authorities requested IMF financial assistance on May 8 th to help strengthen the Argentine government efforts to bolster the Argentine economy in light of renewed and significant financial market volatility.\n - IMF staff and Argentine counterparts have continued to work closely with open channels of communication.\n - An informal IMF Executive Board session to discuss developments in Argentina and the authorities' request for what the IMF has described as a high-access stand-by arrangement will be held tomorrow (relative to the briefing).\n - The informal Board meeting will be followed, after discussion and negotiation, by a formal Board meeting where a decision on the program would be made; no date was provided for the formal Board meeting.\n - IMF staff and the authorities will move to program discussions after the informal Board meeting.\n\n- Instrument and modality:\n - IMF expectation stated: a high-access stand-by arrangement.\n - IMF did not rule out a precautionary SBA; exact modality (precautionary vs. conditional disbursement sequencing) is to be determined in discussions.\n - Details on size, disbursement, sequencing, and precise instrument modalities will be developed in coming days and are part of ongoing negotiations.\n\n- Ownership, objectives, and conditionality:\n - IMF emphasized the program will be owned fully by Argentina and will support Argentina's priorities.\n - The IMF will support efforts to strengthen the Argentine economy and protect living standards, particularly for the most vulnerable groups in Argentina.\n - IMF clarified it has not discussed any specific target for the exchange rate in Argentina and would not attach conditionality to any particular level of the exchange rate.\n - Argentina has a free-floating exchange rate regime; IMF view: the exchange rate should be determined by market forces.\n\n- Fiscal policy and targets:\n - The Argentine government recently announced a new fiscal target for this year, of 2.7 percent of GDP.\n - IMF did not provide confirmation whether 2.7 percent of GDP is the fiscal target that will be included in the program; fiscal targets and policy details are part of program negotiations.\n\n- Exchange rate policy and assessments:\n - IMF does not comment on high-frequency currency movements; exchange rate assessments are based on medium-term fundamentals.\n - IMF reiterated that it would not attach conditionality to a specific exchange rate level.\n\n- Spillovers and regional risks:\n - So far financial spillovers from developments in Argentina to the rest of the region have been limited.\n - Exchange rate movements in other Latin American currencies have been broadly in line with global trends given the stronger U.S. dollar.\n - IMF cited a downside risk to growth in the Regional Economic Outlook (REO): a sudden tightening of financial market conditions (for example, stemming from faster than expected tightening of U.S. monetary policy), which could affect long-term interest rates, capital flows, and financing conditions for the region.\n\n- Context and differences from prior IMF engagement:\n - IMF noted the situation today is \"vastly different\" from 15 or 20 years ago:\n - Argentina now has a market-determined exchange rate, strengthened economic institutions, and an inflation targeting framework.\n - IMF has greater focus on social protection, inequality, and inclusive growth than 15–20 years ago.\n - IMF governance changes (quota reform) placed emerging markets in a stronger position; BRIC countries are now in the IMF's top ten shareholders." }, { "heading": "IMF internal process and timing (as described)", "content": "- Two-step Board process for a major program:\n - Informal Executive Board meeting (staff briefing) — held tomorrow (relative to briefing).\n - Subsequent program negotiations, then formal Executive Board meeting for decision.\n- IMF intends to move quickly and complete discussions \"in short order\" per the Managing Director." }, { "heading": "Greece: debt relief, timing, and IMF participation", "content": "- Current status:\n - IMF approval in principle of a program for Greece is contingent on policies and on sufficient debt relief.\n - IMF has not provided financing support for Greece since 2014; it has remained involved in consultations and monitoring.\n- Remaining issues:\n - Debt relief is the outstanding issue; discussions are ongoing and differences have narrowed but not been fully resolved.\n - IMF view: more debt relief is needed than currently proposed by European partners; current proposals are not yet sufficient by IMF standards.\n- Timing constraints:\n - The European Stability Mechanism program under which work is proceeding ends in August of this year, creating a limited time window for IMF financial support to be approved and integrated.\n - The IMF emphasized that time is running out and highlighted the importance of upcoming Eurogroup discussions (noted as May 24 in the briefing).\n- Policy rationale for IMF involvement:\n - IMF participation would signify that the Fund considers debt relief sufficient and would be a boost to Greece, supporting sustainable growth and investment.\n - IMF has argued that debt relief is a prerequisite for growth to be sustainable and has advocated for mechanisms (such as conditional additional debt relief if growth is weaker than expected) — noting the French proposal as \"promising.\"" }, { "heading": "Ukraine program and energy pricing", "content": "- Program status:\n - IMF is looking to complete the fourth review of its program for Ukraine; more progress is needed on several fronts before concluding the fourth review.\n - Key outstanding issues include the energy sector, fiscal policy, and adoption of law setting up a strong and independent anti-corruption court consistent with program commitments and the Venice Commission recommendations.\n- Gas pricing:\n - Gas prices for households in Ukraine have not been adjusted for two years despite international prices rising considerably, leading to implicit subsidies that are regressive.\n - IMF view: gas prices should be determined by the market in line with reforms implemented in 2016.\n - The IMF stressed that low-income and vulnerable households must be fully protected from increases in gas prices by the current household support system.\n - No date was provided for the timing of the next review mission for the fourth review." }, { "heading": "Sri Lanka: fuel pricing mechanism", "content": "- IMF assessment:\n - The automatic fuel pricing mechanism marks a major step toward completing energy pricing reforms and minimizes fiscal risks.\n - If implemented properly, formula-based pricing would eliminate fuel subsidies that benefit the rich rather than the poor.\n - IMF Board is scheduled to discuss Sri Lanka's completion of its fourth review on June 1." }, { "heading": "Somalia: currency reform readiness", "content": "- IMF technical assistance and assessment:\n - Over the past two years, IMF provided extensive technical assistance to support Somalia's currency reform project.\n - IMF staff assessment letter finds the Central Bank of Somalia (CBS) ready to introduce a new national currency under phase one, limited to exchanging counterfeit Somalia shilling notes currently in circulation with a new currency.\n - All proprietary measures agreed between the authorities and IMF staff have been implemented according to the staff assessment; the currency reform assessment letter is posted on the IMF's website." }, { "heading": "IMF Annual Meetings (Bali) and security", "content": "- Context and IMF position:\n - IMF expressed deepest sympathy and condolences for victims of recent terrorist attacks in Indonesia.\n - IMF is monitoring developments, working closely with Indonesian authorities to ensure safety for participants at the 2018 Annual Meetings in Bali in October.\n - IMF stated cooperation with Indonesian authorities is excellent and that it is confident of successful Annual Meetings." }, { "heading": "Other procedural and institutional notes", "content": "- Reaffirmation of IMF priorities:\n - Support Argentina's efforts to strengthen its economy and protect living standards, especially for the most vulnerable.\n - Emphasis on country ownership, social protection, inclusive growth, and protecting vulnerable groups in program design.\n- Institutional changes:\n - IMF governance changes via quota reform have increased emerging markets' voice and representation within the IMF.\n\nTranscript of IMF Press Briefing, May 17, 2018 — IMF Communications Department\n\n---\n\n\n References\n\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2018/05/17/tr051718-transcript-of-imf-press-briefing" } ], "bullets": [ "[Markdown version](/en/news/articles/2018/05/17/tr051718-transcript-of-imf-press-briefing/index.md)", "[Structured JSON version](/en/news/articles/2018/05/17/tr051718-transcript-of-imf-press-briefing/index.json)", "[Bundle manifest](/en/news/articles/2018/05/17/tr051718-transcript-of-imf-press-briefing/bundle-manifest.json)", "Published: May 17, 2018", "Timeline and status:", "Instrument and modality:", "Ownership, objectives, and conditionality:", "Fiscal policy and targets:", "Exchange rate policy and assessments:", "Spillovers and regional risks:", "Context and differences from prior IMF engagement:", "Two-step Board process for a major program:", "IMF intends to move quickly and complete discussions \"in short order\" per the Managing Director.", "Current status:", "Remaining issues:", "Timing constraints:", "Policy rationale for IMF involvement:", "Program status:", "Gas pricing:", "IMF assessment:", "IMF technical assistance and assessment:", "Context and IMF position:", "Reaffirmation of IMF priorities:", "Institutional changes:", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2018/05/17/tr051718-transcript-of-imf-press-briefing/index.md", "json": "/en/news/articles/2018/05/17/tr051718-transcript-of-imf-press-briefing/index.json", "bundleManifest": "/en/news/articles/2018/05/17/tr051718-transcript-of-imf-press-briefing/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T21:49:09.973Z" }