## Transcript of IMF Press Briefing

_IMF News, November 1, 2018_

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## Bibliographic details
- Published: November 1, 2018

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### Announcements and upcoming IMF engagements
- Annual Research Conference kicked off; topic: international spillovers and cooperation; led by First Deputy Managing Director David Lipton; final Research Conference led by Maury Obstfeld before retirement; successor: Gita Gopinath joining at the beginning of the New Year.
- Managing Director Christine Lagarde travel and public engagements:
  - November 5: China International Import Expo, Shanghai; speaking at opening ceremony along with President Xi.
  - November 6: 1+6 Roundtable discussions in Beijing; press conference after the discussion.
  - November 7: New Economy Forum in Singapore hosted by Bloomberg.
  - November 11: Peace Forum in Paris to commemorate the 100 year commemoration of the end of World War I; 60 heads of state and 10 heads of international institutions attending.
- Regional and forum events:
  - November 8: Launch of Regional Economic Outlook for Europe in Copenhagen; joint event with the Danish Central Bank; led by Poul Thomsen and Governor Per Callesen.
  - November 19-20: Sixth Global Statistical Forum at the Fund on measuring economic welfare in the digital age; keynote speaker Jim Balsillie.

### Iran sanctions and related financial stability concerns
- Re-imposition of U.S. sanctions on Iran:
  - Expected economic impact: will reduce economic growth by restricting Iran's oil exports.
  - IMF advice to Iran: implement policies to safeguard macro stability and protect the most vulnerable groups.
- Financial integrity and AML-CFT:
  - IMF urged Iranian authorities to strengthen and effectively implement their AML-CFT framework in line with international standards ahead of the February 20, '19 meeting of the FATF deadline.
  - IMF provides technical assistance to many members on AML-CFT matters and is following developments closely.
- Oil market implications: IMF referenced prior discussion in the World Economic Outlook but had no additional assessment in this briefing.

### Sanctions — IMF role and stance
- Institutional stance:
  - IMF focuses on economic implications of sanctions rather than political judgments.
  - The Fund analyzes potential economic impacts and advises on steps countries might take in response to sanctions.
- Monitoring:
  - IMF follows developments closely and provides analysis and technical assistance where relevant.

### Pakistan request for IMF financial assistance
- Timeline and process:
  - October 11: Pakistan's Finance Minister made a formal request for financial assistance during the Annual Meetings in Indonesia.
  - November 7: IMF staff mission expected to begin discussions in Islamabad to initiate the program dialogue.
  - Program objectives (as stated): help stabilize the Pakistan economy, put in place the preconditions for sustained inclusive growth.
  - Next steps: modalities announced once a staff level agreement is reached; Board consideration contingent on staff level agreement and the usual communications (press release, etc.) would follow.

### Argentina — IMF arrangement developments and implementation emphasis
- Program status:
  - IMF completed the first review of Argentina's 36-month standby arrangement; allowed disbursement of about $5.7 billion.
  - Board approved an augmentation increasing the loan amount to a $56.3 billion.
- Policy content and priorities:
  - Program aims to strengthen Argentina's economic plan, bolster confidence, stabilize the economy by reducing the budget deficit, adopting a simpler monetary policy framework, and a freely floating exchange rate.
  - Protection for the most vulnerable groups is central; the augmented arrangement prioritizes social assistance spending and plans for an increase in spending on social assistance programs if social conditions deteriorate.
- Implementation:
  - Next staff mission to Buenos Aires expected in the coming weeks.
  - IMF emphasizes that the key now is steady implementation of agreed policies, supported by the international community.

### Greece — debt, buyback option, and pension measures
- Buyback question:
  - Liability management decisions, including buybacks, are prerogatives of the Greek authorities; IMF does not have detailed commentary on specific discussions.
  - Greece in a stronger position following European Partners' decision on additional debt relief and the buildup of a large cash buffer supported by the final ESM disbursement.
- Post-program and pension reform:
  - IMF no longer has a financial arrangement with Greece but remains involved in surveillance and technical engagement.
  - IMF view: implementation of the 2019-2020 pre-legislative package, including pension measures agreed earlier, is important to free up fiscal space for non-retiree social spending and help reduce the tax burden.
- Managing Director's visit:
  - No confirmed date for a Managing Director visit to Greece; IMF eager to find an appropriate time.

### Central bank independence and recent country examples
- General principle:
  - IMF supports clear lines of responsibility and accountability; international best practice is no government or industry interference that compromises the independence of the central bank and financial supervisor.
- Monitoring:
  - IMF is monitoring developments in India (and other countries) regarding central bank-government relations and emphasizes the importance of central bank independence.

### Egypt — fourth review
- Status:
  - Staff level agreement reached on the fourth review of IMF support for Egypt's economic program; press release issued.
  - No Board date provided at the time of the briefing; IMF will announce Board timing when available.

### Venezuela, Yemen, and Saudi Arabia — humanitarian and economic notes
- Venezuela:
  - IMF not in active discussions with Venezuelan authorities; no specific IMF assessment provided on potential sanctions (such as those related to gold sales).
- Yemen:
  - IMF expressed concern about the humanitarian situation and economic costs of the conflict.
  - IMF working with donors; believes donor grants would be needed.
  - Stressed importance of cooperation within the revamped central bank system to facilitate imports and maintain basic public services.
  - IMF role currently limited given the armed conflict and humanitarian situation; stands ready to reengage to restore macro stability, build institutional capacity, and jumpstart growth once conflict is resolved.
- Saudi Arabia and the Khashoggi matter:
  - Too early to determine economic impact; dependent on effects on confidence, business investment, and decisions.
  - At that time, effects appeared economically relatively modest.

### Sri Lanka — monitoring political developments
- IMF is monitoring reported developments regarding the installation of Mr. Rajapaksa as prime minister and remains in contact with technical counterparts.
- No assessment provided on potential program implications at the time of the briefing.

*Transcript of IMF Press Briefing, November 1, 2018.*

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## References

- [Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm)
- [Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm)
- [India and the IMF](http://www.imf.org/external/country/IND/index.htm)
- [Islamic Republic of Iran and the IMF](http://www.imf.org/external/country/IRN/index.htm)
- [Pakistan and the IMF](http://www.imf.org/external/country/PAK/index.htm)
- [Republic of Yemen and the IMF](http://www.imf.org/external/country/YEM/index.htm)
- [Russian Federation and the IMF](http://www.imf.org/external/country/RUS/index.htm)
- [Saudi Arabia and the IMF](http://www.imf.org/external/country/SAU/index.htm)
- [Sri Lanka and the IMF](http://www.imf.org/external/country/LKA/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)
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_Source: https://www.imf.org/en/news/articles/2018/11/01/tr110118-transcript-of-imf-press-briefing_