Transcript of IMF Press Briefing (May 9, 2019)

IMF News, May 9, 2019

Source details

Embargo: briefing embargoed until 10:30 a.m., Washington Time.
Press officer: Maria Candia; Phone: +1 202 623-7100; Email: MEDIA@IMF.org
Managing Director Christine Lagarde visits:
- Dates: May 16 until the 22nd.
- Locations and engagements:
- Kazakhstan (May 16): participate in the Astana Economic Forum; Regional Roundtable on Inclusive Growth and Regional Integration.
- Uzbekistan (Tashkent and Samarkand): series of public and bilateral engagements; deliver a Keynote Speech; meet with the President and authorities.
- Georgia (Tbilisi): deliver a Keynote Speech on May 21; series of other engagements.
Deputy Managing Director Tao Zhang visits:
- Dates: May 12 to 17.
- Locations: The Gambia and Cape Verde; meetings with authorities and public engagements.

Staff announcement: discussions concluded; a staff-level agreement reached on a program under the Extended Credit Facility.
Conditions before Board review:
- Authorities must implement pending actions agreed during the mission; these actions relate to ensuring more transparency in the management and accounting of oil revenues.
- Once implemented, the IMF Team will submit a report in support of the three-year arrangement for Executive Board consideration and approval.
Program objectives:
- Restore macroeconomic stability.
- Achieve higher, more inclusive growth.
- Restore debt sustainability.
- Improve governance.
- Reduce corruption.
- Protect vulnerable groups.
- Achieve greater transparency and efficiency in the management of public resources, especially in the oil sector.
Debt context:
- Recent agreement to restructure the Republic of Congo's bilateral debt with China is described as a decisive step to restore debt sustainability.
- IMF staff recommend finalization of authorities' strategy to seek restructuring of external debt owed to commercial creditors, especially that accumulated with oil traders.

Current status:
- IMF Team is in Buenos Aires to discuss the Fourth Review of Argentina's IMF-supported program.
- IMF position: focused on implementation of the current program and current repayment schedule; no discussions of changing the repayment schedule.
Program rationale:
- Program designed to address Argentina's main underlying challenges and ensure the country can meet its obligations.
- Key aims include reducing Argentina's external and fiscal imbalances and laying the ground for economic stability and sustainable growth.
IMF stance on criticism and flexibility:
- IMF acknowledges major challenges facing Argentina and that transition toward a more open and resilient economy has proven more complex than anticipated.
- IMF notes important progress has been made and that it has tried to be flexible and pragmatic in making adjustments to strengthen implementation.

Recent development: President Trump announced an increase of tariffs on $200 billion dollars of Chinese products from 10 percent to 25 percent (reported context in questions).
IMF outlook:
- IMF views a protracted trade conflict as harmful: "everybody loses in a protracted trade conflict."
- Trade tensions cited as a risk to global growth in the World Economic Outlook update and Spring Meetings.
- IMF encourages all parties to seek a speedy resolution that supports and strengthens the international trading system.

Contacts:
- Managing Director Christine Lagarde has been in touch with President-elect Volodymyr Zelensky to underscore IMF readiness to support Ukraine.
- Lagarde also contacted outgoing President Poroshenko to thank him for cooperation and express expectation that progress under the economic program would continue.
Mission expectations:
- No specific dates provided at the time of the briefing for the first review mission; IMF expects a mission to return to Kiev sometime in the coming weeks to assess progress and discuss policies for the remainder of the year.

Condolences: IMF expressed deep sadness at the terrorist attacks and offered condolences.
Program status:
- Executive Board scheduled to consider the request to complete the 5th review under the IMF program and to extend the program by one additional year (which would mean until June 2020).
Extension details:
- Purpose: provide additional time to anchor macroeconomic stability and complete the reform agenda.
- Outstanding access: about $500 million under the arrangement will be rephased evenly in three tranches over three semiannual reviews under that extension.

Growth assessment:
- IMF believes Trinidad and Tobago started showing signs of improvement from the second half of 2017 and is estimated to have returned to positive growth in 2018.
Forecasts and updates:
- Projections published in the April World Economic Outlook (WEO) were based on information available as of early March, including data provided by authorities and official institutions.
- IMF will update estimates in the July WEO update using information available through early June, including actual GDP growth figures for full-year 2018 expected to be released in the coming weeks.

Surveillance and consultations:
- IMF staff completed a short visit to Greece in parallel to the European partners' third enhanced surveillance mission.
- Full assessment of government policies will be provided during the Article IV consultation cycle scheduled for mid-2019.
Debt management / prepayment:
- Greek authorities informed IMF they hope to prepay the part of the outstanding IMF loan that is subject to surcharge rates, "that's about 40 percent of the outstanding loan."
- IMF view: agrees this makes good sense from a liability management perspective.
- Prepayment caveat: understanding that Greece would need agreement from European partners before advancing.

Transcript of IMF Press Briefing — May 9, 2019 (IMF Communications Department)