{ "title": "Transcript of IMF Press Briefing", "publication": "IMF News, September 12, 2019", "sourceUrl": "https://www.imf.org/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing", "canonical": "https://www.imf.org/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing", "overlayPath": "/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing/index.md", "summary": "Christine Lagarde's official resignation from the IMF takes effect on September 12, 2019.", "publishDate": "2019-09-12", "sections": [ { "heading": "IMF leadership, calendar, and public engagements", "content": "- Christine Lagarde's official resignation from the IMF takes effect on September 12, 2019.\n- Kristalina Georgieva, Chief Executive Officer of the World Bank, confirmed willingness to be considered as a candidate for IMF Managing Director.\n- Executive Board process timeline:\n - Board to meet with Kristalina Georgieva starting September 24.\n - Process expected to be completed by October 4, at the latest.\n- Acting Managing Director David Lipton engagements:\n - Representing the IMF at the UN General Assembly in New York, September 24 to 26.\n - Participating in high-visibility events including the high level dialogue on financing for development and the Bloomberg Global Business Forum Roundtable.\n- Annual Meetings:\n - October 14 to 20 (Washington).\n - World Economic Outlook press briefing scheduled for Tuesday, October 15." }, { "heading": "Argentina — program status, risks, and upcoming discussions", "content": "- Upcoming engagement:\n - Minister Hernan Lacunza and his team expected to visit Washington in late September for continuation of discussions.\n - This visit will be an opportunity to take stock of the program and discuss crisis response measures and the overall macroeconomic framework.\n- Disbursement questions:\n - Reference to pending disbursement amounts: \"5.4 billion\" and a following one of \"one billion\" (as cited in press question).\n - Discussions about these disbursements are part of the late-September visit.\n- IMF assessment and contextual summary:\n - IMF role described as lender of last resort, assisting to smooth adjustment, protect the broader economy, and protect the most vulnerable.\n - Background: authorities approached the Fund last summer after a destabilizing economic shock triggered by a severe drought and difficult financial conditions, including significant currency volatility.\n - With IMF support, authorities reduced the current account and the fiscal deficit.\n - Remaining challenges: stubbornly high inflation, pickup in poverty rates, subdued economic activity, and important downside risks (including policy discontinuity and political uncertainty).\n- Recent developments:\n - Since mid-August, Argentina experienced a renewed confidence shock that severely affected macroeconomic stability.\n - Authorities announced measures to safeguard reserves, stabilize the exchange rate, and protect deposits.\n- On criticisms and rules:\n - IMF stance: allegations that the IMF broke rules were definitively rejected in the briefing; IMF objective has been to help stabilize the situation and pave the way for growth.\n - The staff reports documented risks and noted that risks of the program could be potentially exacerbated by adverse market reactions and political uncertainties.\n- Engagement with opposition:\n - IMF previously engaged in Buenos Aires with Mr. Alberto Fernandez and his economic team; future engagements will be decided after late-September meetings with the minister." }, { "heading": "Global economy and trade outlook", "content": "- Pace of global economic activity described as subdued, precarious, fragile, and delicate.\n- Manufacturing weakness noted: weakening in manufacturing activity to levels not seen since the global financial crisis.\n- Trade tensions:\n - Rising trade and geopolitical tensions increase uncertainty and are taking a toll on business confidence, investment, and global trade.\n - IMF latest estimate on U.S.–China tariffs (including those implemented and announced): could potentially reduce the level of global GDP by \"0.8 percent\" in 2020 with additional losses in future years.\n - Clarification: the \"0.8 percent\" estimate covers tariffs \"implemented and announced.\"\n- Recession outlook:\n - Recession is \"not in our baseline\" at present.\n - IMF will publish updated forecasts and analysis in the World Economic Outlook in October." }, { "heading": "Zimbabwe — staff-monitored program and prerequisites for IMF financing", "content": "- Current engagement:\n - IMF has a Staff-Monitored Program (SMP) with Zimbabwe; IMF staff in Harare from \"September 5\" and expected to be there until around the \"17th\" for the first review of the SMP.\n- Policy advice and reform priorities advised to the Government:\n - Restore macro and financial stability (likely requiring fiscal adjustment).\n - Adopt reforms to allow effective functioning of market-based foreign exchange and debt markets.\n - Implement structural reforms, including reform and privatization of state-owned enterprises.\n - Enhance governance, including in procurement and revenue administration.\n - Improve the business environment.\n - Design safeguards to protect the most vulnerable.\n- Preconditions for IMF financing:\n - Zimbabwe is in good standing with the IMF and has cleared arrears with the IMF.\n - For IMF financing to be forthcoming, Zimbabwe would need to clear arrears to other international financial institutions.\n - Financing assurances would be needed from other official bilateral creditors.\n - Agreement on a coherent set of economic policies to restore macro stability and lay a foundation for growth." }, { "heading": "Ukraine — program status and ongoing missions", "content": "- Standby arrangement details:\n - Board approved a standby arrangement for Ukraine of \"about 4 billion\", \"3.9 billion\", and \"about 1.4 billion of that has already been disbursed\" (statement as given).\n- Current engagement:\n - IMF mission currently in Kiev for Article IV Consultation discussions and to take stock of the new government's policy intentions; mission expected to conclude around the \"26th\" of the month.\n- Continued priorities in engagement:\n - Creation of an effective anti-corruption framework remains a critical element of IMF engagement with Ukraine." }, { "heading": "Greece, India, Pakistan, Bahamas — selected country notes", "content": "- Greece:\n - IMF Article IV mission in Athens from \"September 23\".\n - IMF does not have a financial program with Greece.\n - IMF has consistently argued that a \"3.5 percent\" primary surplus target was ambitious and has acted as a drag on recovery; IMF previously argued for a lower primary fiscal balance.\n - IMF will assess government initiatives in the context of Article IV discussions.\n- India:\n - Recent GDP figures reflect slower growth than expected.\n - IMF assessment: slower growth mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-bank financial companies.\n - Risks to the outlook are tilted to the downside; IMF to update assessment in the World Economic Outlook.\n- Pakistan:\n - Key element of IMF-supported program: mobilize domestic tax revenue to fund social and development spending while placing debt on a firm downward trend.\n - An IMF team expected to be in Pakistan in the next few days, including Director Jihad Azur.\n- Bahamas:\n - Severely affected by Hurricane Dorian.\n - Authorities have not yet requested IMF support.\n - IMF stands ready to help." }, { "heading": "Operational notes and communications", "content": "- Press briefings are embargoed until \"10:30 a.m.\" Washington time (as noted in opening).\n- IMF public communications include forthcoming World Economic Outlook and other flagship publications (Global Financial Stability Report, Fiscal Monitor) around the Annual Meetings.\n- Staff reports and published analyses are referenced as documenting program risks and informing public assessment.\n\nTranscript of IMF Press Briefing — September 12, 2019. IMF Communications Department.\n\n---\n\n\n References\n\n- Argentina and the IMF\n- Greece and the IMF\n- India and the IMF\n- Pakistan and the IMF\n- The Bahamas and the IMF\n- Ukraine and the IMF\n- Zimbabwe and the IMF\n- IMF Policy Advice -- A Factsheet\n- Transcripts\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing" } ], "bullets": [ "[Markdown version](/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing/index.md)", "[Structured JSON version](/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing/index.json)", "[Bundle manifest](/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing/bundle-manifest.json)", "Published: September 12, 2019", "Christine Lagarde's official resignation from the IMF takes effect on September 12, 2019.", "Kristalina Georgieva, Chief Executive Officer of the World Bank, confirmed willingness to be considered as a candidate for IMF Managing Director.", "Executive Board process timeline:", "Acting Managing Director David Lipton engagements:", "Annual Meetings:", "Upcoming engagement:", "Disbursement questions:", "IMF assessment and contextual summary:", "Recent developments:", "On criticisms and rules:", "Engagement with opposition:", "Pace of global economic activity described as subdued, precarious, fragile, and delicate.", "Manufacturing weakness noted: weakening in manufacturing activity to levels not seen since the global financial crisis.", "Trade tensions:", "Recession outlook:", "Current engagement:", "Policy advice and reform priorities advised to the Government:", "Preconditions for IMF financing:", "Standby arrangement details:", "Current engagement:", "Continued priorities in engagement:", "Greece:", "India:", "Pakistan:", "Bahamas:", "Press briefings are embargoed until \"10:30 a.m.\" Washington time (as noted in opening).", "IMF public communications include forthcoming World Economic Outlook and other flagship publications (Global Financial Stability Report, Fiscal Monitor) around the Annual Meetings.", "Staff reports and published analyses are referenced as documenting program risks and informing public assessment.", "[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)", "[Pakistan and the IMF](http://www.imf.org/external/country/PAK/index.htm)", "[The Bahamas and the IMF](http://www.imf.org/external/country/BHS/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)", "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)", "[Transcripts](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing/index.md", "json": "/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing/index.json", "bundleManifest": "/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T23:04:27.566Z" }