Transcript of IMF Press Briefing
IMF News, November 7, 2019
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- Published: November 7, 2019
Announcements and logistics
- Press briefing held by Gerry Rice of the Communications Department; briefing embargoed until 10:30 a.m., Washington time.
- IMF Communications Department — MEDIA RELATIONS — PRESS OFFICER: Wafa Amr; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson
- Upcoming IMF events mentioned:
- Annual Research Conference (topic: "Debt, the good, the bad and the ugly"); speakers include Kristalina Georgieva and Gita Gopinath.
- Statistical forum on measurement of the informal economy, with opening remarks from Kristalina Georgieva — November 14 and 15.
- Managing Director participation in Berlin on the Compact with Africa — November 19th.
- Managing Director to attend OnePlus 6 Meeting in China, then conclude Article IV Consultation with Japan and meet Prime Minister Abe (dates to be provided).
- Deputy Managing Director Tao Zhang to be in Kosovo on November 18 to mark the 20th Anniversary of the Central Bank of Republic of Kosovo.
Trade tensions and US–China negotiations
- IMF stance:
- Will wait for an actual agreement before making an assessment of impacts.
- "Welcome any step to de-escalate the trade tensions, and to roll back recent trade measures" especially if it provides a path toward a comprehensive and lasting agreement.
- Such a step has "upside potential" for the baseline forecast, contingent on agreement details and durability.
- Reference to World Economic Outlook estimate:
- Tariffs implemented and announced during 2018 and 2019 would likely reduce the level of global GDP by 0.8 percent by 2020.
- This analysis was associated with a "US$700 billion" number referenced by the Managing Director.
Argentina — engagement, elections, and debt questions
- IMF messaging and readiness:
- Managing Director Kristalina Georgieva congratulated President-Elect Fernández and reiterated the Fund's readiness to engage with the new administration to address economic challenges and pave the way for inclusive and sustainable growth.
- The IMF stands ready to engage with President-Elect Fernández and his team during the transition period; no mission dates announced at this stage.
- Engagement is "not contingent on any prior conditions" from the Fund's side.
- Debt restructuring roles and process:
- Decision to restructure debt is "entirely the purview of the member country" in consultation with its legal and financial advisors.
- IMF role is to assess whether debt is sustainable with a high probability in line with the Fund's exceptional access policy; debt sustainability analysis requires information on authorities' policy plans and a consistent macroeconomic outlook.
- IMF internal constraints: capacity to restructure its own (IMF) debt is constrained by legal and policy frameworks.
- Specific operational points:
- No indication from the IMF that it has been formally asked for program modification; the Fund awaits engagement with the new administration to discuss policies.
- No preemption of discussions on debt haircuts or reprofiling; such matters await direct discussions between Argentina and creditors, with IMF assessing sustainability.
- Alejandro Werner and a member of Mr. Fernández's team (Mr. Nielsen) were both scheduled to participate in a University of Miami event; no confirmed bilateral meeting reported.
Ukraine — Article IV and potential IMF-supported program
- Recent activity:
- IMF staff mission to Kiev ended toward the end of September for the 2019 Article IV consultation and started discussions on a new three-year financial arrangement potentially supported by an extended Fund facility.
- Authorities' request and discussions:
- Ukrainian authorities have requested a new IMF-supported program; discussions on that program are ongoing.
- Progress has been made on fiscal and monetary policies, safeguarding central bank independence, financial stability, minimizing fiscal cost of bank resolutions, strengthening rule of law, and tackling corruption.
- Policy priorities highlighted:
- Advance structural reforms to improve governance and tackle corruption.
- Reduce the role of the state and oligarchs while maintaining fiscal and monetary policies to preserve macro stability.
- Objective: faster, more sustainable, inclusive growth to improve living standards and attract investment.
Sudan — roadmap and debt relief prerequisites
- IMF engagement:
- The IMF is in discussion with Sudanese authorities on how the IMF can help with reform efforts and to acquire adequate donor assistance.
- Conditions for debt relief and program progression:
- Sudan remains eligible for debt relief when it meets all requirements, including:
- Receiving financing assurances from creditors for debt relief.
- Establishing a track record of performance.
- Clearing arrears to the IMF.
- Progress on these requirements depends on support from creditor countries.
- Exiting the U.S. state sponsor of terrorism list would be important for facilitating creditor consensus on debt relief.
Equatorial Guinea — staff-level agreement and financing
- Recent developments:
- On October 21st, Equatorial Guinea authorities and an IMF team reached staff-level agreement on a three-year arrangement under the extended Fund facility.
- Authorities are working on an agreed set of measures for IMF Executive Board consideration in December.
- Program size:
- The program under consideration could be supported by approximately $280 million.
Lebanon — Article IV and program request status
- IMF interactions:
- Article IV consultation and Board discussion concluded in September.
- Technical discussions have continued to better understand developments since the Board discussion and the prime minister's resignation.
- Authorities have not asked for, and the IMF is not engaged in, any discussion of a program; no program request from the authorities.
Closing and next steps
- The IMF reiterated readiness to engage with members that seek Fund support and reaffirmed the need for detailed policy plans and information to underpin program and debt sustainability assessments.
- Attendees invited to follow the Annual Research Conference.
Transcript of IMF Press Briefing — November 7, 2019.