## Transcript of IMF Press Briefing

_IMF News, February 13, 2020_

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## Bibliographic details
- Published: February 13, 2020

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### Managing Director travel and engagements
- Briefing date: February 13, 2020.
- Embargo: briefing embargoed until 10:30 a.m. Washington time.
- Upcoming engagements:
  - February 14: Munich Security Conference (session on the global trading system; some sessions live/open to the press).
  - A few days after February 14: Travel to Dubai to attend the second global women's forum (some events public and live webcast).
  - February 17 to 20: Visit to Morocco to discuss preparations for the IMF, World Bank Annual Meetings to be held in Marrakech in October 2021 (first visit to Morocco; meetings with head of government, central bank governor, finance minister, civil society, students, and participation in a roundtable on governance).
  - February 21 to 23: G-20 meeting of finance ministers and central bank governors in Riyadh, Saudi Arabia (Managing Director to have a public, televised conversation with Tim Adams on the sidelines).
- Press contact: Lucie Mboto Fouda; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson.

### Lebanon: request and IMF response
- On February 12, Lebanese authorities requested technical assistance from the IMF to help address economic challenges.
- Key clarifications:
  - The Lebanese authorities have not requested financial assistance; the request is for technical assistance and advice.
  - IMF view: a package of economic and structural reforms is needed to address sharp deterioration in confidence, restore stability in financing, trading and payment systems, contain inflation, and resume economic growth.
  - Longstanding structural problems in many sectors need addressing; reforms would improve conditions especially for the poor and the middle class.
  - Debt restructuring decisions are the prerogative of the government and its legal and financial advisors; IMF does not play a role in those negotiations.

### Argentina: dialogue, program review, and IMF stance
- Active IMF staff mission in Buenos Aires from February 12 to 19 to discuss Argentina’s plans, debt strategy, and economic outlook.
  - Mission leadership: Julie Kozack (Deputy Director, Western Hemisphere Department) and Luis Cubeddu (head of IMF mission for Argentina).
- IMF position and clarifications:
  - IMF shares Argentina’s objective of stabilizing the economy, protecting vulnerable groups, and paving the way for sustainable, inclusive growth.
  - IMF assures there was no violation of IMF rules in the prior engagement.
  - The IMF’s capacity to restructure its own debt or postpone repayments is constrained by its legal and policy frameworks.
- Context:
  - Argentine Minister of Economy Martin Guzmán stated Argentina would not achieve a fiscal surplus until 2023 (question referenced; IMF response focused on constructive dialogue rather than endorsing specific dates).

### Ukraine: program conditions and priorities
- IMF program agreed with Ukraine last December for $5.5 billion; agreement subject to Board approval and implementation of a set of prior actions.
- Main focus areas under discussion:
  - Strengthening the rule of law and tackling corruption.
  - Enhancing competition, opening up markets, reducing the role of the state and oligarchs.
  - Continuing prudent fiscal policies to ensure medium term sustainability.
  - Ensuring central bank independence and financial stability.
- Status: discussions are active and constructive; no Board decision date provided.

### Coronavirus (2019-nCoV) — economic uncertainty and scenarios
- Managing Director emphasized high uncertainty; IMF prefers scenario analysis over firm projections at this stage.
- Scenarios discussed:
  - V-shaped recovery scenario: sudden but brief interruption of economic activity followed by a sharp rebound driven by pent-up demand (desired scenario; referenced similarity to the SARS outbreak recovery).
  - Larger-impact scenarios depending on timing, breadth, and containment of the virus.
- Geographic and sectoral impact notes:
  - Immediate impact expected most in China; given China’s economic footprint, other countries—especially neighboring countries in Asia—would be affected.
  - Supply chain effects are possible under more negative scenarios, but definitive assessment pending more data.
- Data and timing:
  - Managing Director expected to have firmer data to release at the G-20 meeting in Riyadh (timing noted as “the weekend after next” from the briefing date).
  - Comparison to SARS: SARS occurred in 2003, 2004; caution that China and the global economy are different today.
  - China’s share in PPP measures cited as “about 19 percent” in the briefing.
- IMF stance:
  - Strong support for China’s containment and mitigation efforts, including health measures and recent fiscal, monetary, and financial actions.
  - IMF stands ready to help and is monitoring the situation daily.

### Other country engagements and assessments
- India:
  - IMF view: given a weaker economic environment, a more accommodative fiscal stance in the budget this year is appropriate.
  - Need remains for more ambitious structural and financial sector reforms and a medium-term fiscal consolidation strategy anchored in tangible revenue and expenditure measures, especially given rising debt levels.
- Somalia:
  - IMF Board met to discuss preliminary assessment of Somalia’s eligibility for debt relief under the Highly Indebted Poor Country (HIPC) Initiative; World Bank Board discussing on the following day.
  - Financing plan involves mobilizing resources from IMF internal funds and member contributions; mechanism includes distributing funds to members and asking voluntary returns to cover IMF’s share of debt relief (mechanism used previously, e.g., Liberia).
  - Current stage is the step before the HIPC “decision point”; decision point timing not set as financing is still being lined up.
- Egypt:
  - Previous IMF financial program effective in stabilizing the economy: growth restored, inflation declined to single digits, fiscal and current account deficits reduced.
  - IMF view: Egypt needs a new wave of reforms to support private sector development and job creation; IMF engagement type to be discussed (no financing program in place; prior program ended in November).
  - Article IV consultation planned later in the year.
- Pakistan:
  - Ongoing IMF mission conducting the second review under the IMF financing program; combined mission also undertaking the Article IV consultation. Discussions ongoing; outcomes to be reported when mission concludes.

### Procedural and operational notes
- The briefing team characterized ongoing country dialogues as “active” and “constructive” for Argentina, Ukraine, and other missions.
- IMF staff missions were highlighted as the vehicle for program reviews, debt sustainability discussions, and Article IV consultations (Argentina mission: February 12–19; Ukraine program agreed last December for $5.5 billion).

*Transcript of IMF Press Briefing, February 13, 2020.*

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## References

- [Arab Republic of Egypt and the IMF](http://www.imf.org/external/country/EGY/index.htm)
- [Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm)
- [India and the IMF](http://www.imf.org/external/country/IND/index.htm)
- [Lebanon and the IMF](http://www.imf.org/external/country/LBN/index.htm)
- [Pakistan and the IMF](http://www.imf.org/external/country/PAK/index.htm)
- [Somalia and the IMF](http://www.imf.org/external/country/SOM/index.htm)
- [Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm)
- [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)
- [Technical Assistance -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-capacity-development)
- [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/2020/02/13/tr021320-transcript-of-imf-press-briefing_