## Transcript of IMF Press Briefing

_IMF News, February 7, 2019_

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## Bibliographic details
- Published: February 7, 2019

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### Schedule and senior management travel
- Briefing date: February 7, 2019.
- Remarks embargoed until 10:30 a.m. (Washington time).
- Managing Director Christine Lagarde:
  - In Dubai for the annual World Government Summit; scheduled to deliver a keynote at the Arab Fiscal Forum on February the 9th.
  - Visiting Germany next week for the Munich Security Conference and the Munich European Conference; to give a keynote speech on Thursday the 14th and participate in panels (broadcast and live webcast).
- Deputy Managing Director Tao Zhang:
  - Visiting Dominica and Grenada between February the 11th and the 15th to assess hurricane-affected areas.
- Jihad Azour (Director, Middle East and Central Asia Department):
  - Launching a departmental paper on financial inclusion for small and medium sized enterprises in the Middle East and Central Asia on February the 12th at the American University in Cairo (open event).
- Press registration for the Spring Meetings is open on IMF.org.

### Venezuela: status, contacts, and IMF position
Findings and context:
- The IMF has not had Article IV policy dialogue with Venezuela since 2004.
- The IMF has followed recent statements by First Deputy Managing Director David Lipton highlighting:
  - A devastating humanitarian and economic crisis.
  - Reports of widespread food and medicine shortages, and worsening health and social conditions.
  - Growth projected to contract further in 2019, bringing the cumulative decline since 2013 to over 50 percent.
  - Hyperinflation, outward migration, and anticipation that these will intensify in 2019.
- Recent IMF contacts with Venezuelan authorities have been focused solely on official data provision.
- The IMF has engaged with a broad array of stakeholders as feasible given constraints.

Sequencing, recognition, and program design:
- IMF position on official government recognition remains unchanged: the IMF will be guided by the international community/membership on official recognition.
- Recognition by the membership is the first step required before further IMF action (including program design) could proceed.
- The IMF has a range of instruments (financial instruments, technical assistance, analysis) potentially usable with a member country, but it is premature to discuss specifics for Venezuela until the international community’s guidance on recognition is established.
- The IMF is consulting with its membership and “watching that closely” regarding countries’ positions on recognition.

Contacts and timeline:
- The IMF is not aware of specific discussions with representatives of the interim leadership or envoys after January 23 (no specific contact date provided).
- The IMF has no date for a board discussion on official recognition and will await clarity from membership.

### Argentina: program engagement and upcoming mission
- Roberto Cardarelli and an IMF staff team will be in Buenos Aires on February the 11th for the discussion of the third review of Argentina’s economic plan and IMF support.
- The IMF strives to meet a broad range of stakeholders in member countries (government, private sector, academia, civil society, sometimes opposition).
- Recent meetings: Christine Lagarde met with Minister Dujovne and Central Bank Governor Sandleris; David Lipton also participated.
- Lagarde emphasized that program implementation so far has served Argentina well and that continued implementation will enhance resilience and preserve macroeconomic stability.
- An updated assessment will be communicated after the Cardarelli mission.

### Ukraine: program objectives and political context
- In December the IMF approved a new standby arrangement for Ukraine and a disbursement under that arrangement has occurred.
- Lagarde and David Lipton met with President Poroshenko in Davos; the IMF reiterated support for Ukraine and emphasized urgency to accelerate reform.
- IMF cooperation objective: to get Ukraine on the path of sustainable growth and improve people’s living standards.
- The IMF’s operational stance: it does not engage in politics; it focuses on economics and works with all government political compositions.

### Greece: post-program monitoring and banking sector risks
- The IMF is in post-program monitoring mode with Greece; it has not had a financial program with Greece since 2014.
- A recent mission led by mission chief Peter Dolman conducted a visit; the Board will discuss the report in early March and the concluding statement and staff report will be published later.
Key projection:
- Growth projected for Greece: 2.4 percent.
Banking sector and non-performing loans (NPLs):
- Restoring growth-enhancing bank lending requires swift, comprehensive, and well-coordinated actions to prepare balance sheets.
- Coordinated steps by key stakeholders are needed to support banks’ efforts to achieve a faster reduction of non-performing loans.
- The IMF noted intensified downside risks, including fiscal risks; readers are referred to the recent staff concluding statement for full details.

### Zimbabwe: arrears and access to finance
- Confirmation: Zimbabwe has cleared its arrears to the IMF.
- Arrears remain outstanding to other multilateral creditors, which limits Zimbabwe’s access to international financial support.
- Reported outstanding arrears cited by a questioner (as presented in the briefing):
  - 687 million to the African Development Bank.
  - 1.4 billion to the World Bank.
  - 322 million to the European investment bank.
- The IMF encourages peaceful collaboration among stakeholders and policies to stabilize the economy and promote sustainable and inclusive growth.

### Barbados and Jordan: program status
- Barbados:
  - The IMF Board approved a program for Barbados under the extended fund facility in October (year not restated here).
- Jordan:
  - An IMF team led by mission chief Martin Cerisola is concluding a visit conducting the second review under Jordan’s reform program supported by the IMF; the mission is expected to conclude today and the IMF will communicate the outcome.

### U.S. Federal Reserve and World Bank leadership
- Federal Reserve:
  - The IMF supports the Fed’s recent decision to be patient in determining future changes to the federal funds rate.
  - The IMF views the Fed as adhering to data dependence and clear communication to minimize market disruption and spillovers.
- World Bank presidency process:
  - Selection of the next President of the World Bank is a World Bank membership decision; IMF expects continued strong collaboration with the Bank regardless of outcome.

### Process and procedural clarifications
- IMF engagement depends on membership guidance for matters of official recognition.
- The IMF updates its Board regularly on relevant country cases; no specific board date is available for Venezuela recognition discussions.
- The IMF’s legal department meets regularly with member representatives on technical legal issues; case-by-case guidance is typical for litigation-related opinions.

*Transcript of IMF Press Briefing — February 7, 2019. IMF Communications Department.*

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## References

- [Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm)
- [Barbados and the IMF](http://www.imf.org/external/country/BRB/index.htm)
- [Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm)
- [Jordan and the IMF](http://www.imf.org/external/country/JOR/index.htm)
- [República Bolivariana de Venezuela and the IMF](http://www.imf.org/external/country/VEN/index.htm)
- [Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm)
- [Zimbabwe and the IMF](http://www.imf.org/external/country/ZWE/index.htm)
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_Source: https://www.imf.org/en/news/articles/2019/02/07/tr020719-transcript-of-imf-press-briefing_