## Transcript of IMF Press Briefing

_IMF News, September 12, 2019_

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## Bibliographic details
- Published: September 12, 2019

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### IMF leadership, calendar, and public engagements
- 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:
  - Board to meet with Kristalina Georgieva starting September 24.
  - Process expected to be completed by October 4, at the latest.
- Acting Managing Director David Lipton engagements:
  - Representing the IMF at the UN General Assembly in New York, September 24 to 26.
  - Participating in high-visibility events including the high level dialogue on financing for development and the Bloomberg Global Business Forum Roundtable.
- Annual Meetings:
  - October 14 to 20 (Washington).
  - World Economic Outlook press briefing scheduled for Tuesday, October 15.

### Argentina — program status, risks, and upcoming discussions
- Upcoming engagement:
  - Minister Hernan Lacunza and his team expected to visit Washington in late September for continuation of discussions.
  - This visit will be an opportunity to take stock of the program and discuss crisis response measures and the overall macroeconomic framework.
- Disbursement questions:
  - Reference to pending disbursement amounts: "5.4 billion" and a following one of "one billion" (as cited in press question).
  - Discussions about these disbursements are part of the late-September visit.
- IMF assessment and contextual summary:
  - IMF role described as lender of last resort, assisting to smooth adjustment, protect the broader economy, and protect the most vulnerable.
  - 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.
  - With IMF support, authorities reduced the current account and the fiscal deficit.
  - Remaining challenges: stubbornly high inflation, pickup in poverty rates, subdued economic activity, and important downside risks (including policy discontinuity and political uncertainty).
- Recent developments:
  - Since mid-August, Argentina experienced a renewed confidence shock that severely affected macroeconomic stability.
  - Authorities announced measures to safeguard reserves, stabilize the exchange rate, and protect deposits.
- On criticisms and rules:
  - 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.
  - The staff reports documented risks and noted that risks of the program could be potentially exacerbated by adverse market reactions and political uncertainties.
- Engagement with opposition:
  - 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.

### Global economy and trade outlook
- 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:
  - Rising trade and geopolitical tensions increase uncertainty and are taking a toll on business confidence, investment, and global trade.
  - 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.
  - Clarification: the "0.8 percent" estimate covers tariffs "implemented and announced."
- Recession outlook:
  - Recession is "not in our baseline" at present.
  - IMF will publish updated forecasts and analysis in the World Economic Outlook in October.

### Zimbabwe — staff-monitored program and prerequisites for IMF financing
- Current engagement:
  - 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.
- Policy advice and reform priorities advised to the Government:
  - Restore macro and financial stability (likely requiring fiscal adjustment).
  - Adopt reforms to allow effective functioning of market-based foreign exchange and debt markets.
  - Implement structural reforms, including reform and privatization of state-owned enterprises.
  - Enhance governance, including in procurement and revenue administration.
  - Improve the business environment.
  - Design safeguards to protect the most vulnerable.
- Preconditions for IMF financing:
  - Zimbabwe is in good standing with the IMF and has cleared arrears with the IMF.
  - For IMF financing to be forthcoming, Zimbabwe would need to clear arrears to other international financial institutions.
  - Financing assurances would be needed from other official bilateral creditors.
  - Agreement on a coherent set of economic policies to restore macro stability and lay a foundation for growth.

### Ukraine — program status and ongoing missions
- Standby arrangement details:
  - 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).
- Current engagement:
  - 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.
- Continued priorities in engagement:
  - Creation of an effective anti-corruption framework remains a critical element of IMF engagement with Ukraine.

### Greece, India, Pakistan, Bahamas — selected country notes
- Greece:
  - IMF Article IV mission in Athens from "September 23".
  - IMF does not have a financial program with Greece.
  - 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.
  - IMF will assess government initiatives in the context of Article IV discussions.
- India:
  - Recent GDP figures reflect slower growth than expected.
  - IMF assessment: slower growth mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-bank financial companies.
  - Risks to the outlook are tilted to the downside; IMF to update assessment in the World Economic Outlook.
- Pakistan:
  - Key element of IMF-supported program: mobilize domestic tax revenue to fund social and development spending while placing debt on a firm downward trend.
  - An IMF team expected to be in Pakistan in the next few days, including Director Jihad Azur.
- Bahamas:
  - Severely affected by Hurricane Dorian.
  - Authorities have not yet requested IMF support.
  - IMF stands ready to help.

### Operational notes and communications
- 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.

*Transcript of IMF Press Briefing — September 12, 2019. IMF Communications Department.*

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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)
- [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)

_Source: https://www.imf.org/en/news/articles/2019/09/12/tr091219-transcript-of-the-com-regular-press-briefing_