## Transcript of Press Briefing by Kristalina Georgieva following a Conference Call of the International Monetary and Financial Committee _IMF News, March 27, 2020_ ## Source details **Canonical URL:** [Transcript of Press Briefing by Kristalina Georgieva following a Conference Call of the International Monetary and Financial Committee](https://www.imf.org/en/news/articles/2020/03/27/tr032720-transcript-press-briefing-kristalina-georgieva-following-imfc-conference-call) ## Other formats - [Markdown version](/en/news/articles/2020/03/27/tr032720-transcript-press-briefing-kristalina-georgieva-following-imfc-conference-call/index.md) - [Structured JSON version](/en/news/articles/2020/03/27/tr032720-transcript-press-briefing-kristalina-georgieva-following-imfc-conference-call/index.json) - [Bundle manifest](/en/news/articles/2020/03/27/tr032720-transcript-press-briefing-kristalina-georgieva-following-imfc-conference-call/bundle-manifest.json) ## Bibliographic details - Published: March 27, 2020 --- ### Global economic outlook and recession - The IMFC represents our 189 members and met virtually to discuss the challenge posed by Covid -19. - The IMF has reassessed prospects for growth for 2020 and 2021 and states: "It is now clear that we have entered a recession as bad or worse than in 2009." - Recovery is projected in 2021, potentially a "sizeable rebound," conditional on: - containing the virus everywhere, and - preventing liquidity problems from becoming a solvency issue. - The G-20 reported fiscal measures totaling some five trillion dollars or over 6 percent of global GDP. - Timeline: the IMF aims to have a concrete package of proposals for IMFC consideration at the spring meetings on April 16. ### IMF demand, operational response, and capacity proposals - Policy tracker: IMF launched a policy actions tracker for 186 countries. - Surge in financing requests: - "Over 80 countries have placed requests." - Executive board approved the first of those requests for the Kyrgyz republic in a record first disbursement. - Later specified as 81 requests received: three-quarters are requests and one quarter are inquiries. - Of the 81 requests: 50 are from low-income countries and 31 from middle-income countries. - Proposed IMF actions: - "Proposing to double our emergency financial capacity, simplify our processes, fill the gap in our concessional financing." - Reviewing lending instruments (expand use of precautionary credit lines; bring forward short term liquidity provisions). - Urgent need to secure the borrowing capacity of the fund through new arrangements to borrow and bilateral borrowing arrangements. - The IMF notes it has a one trillion dollars lending capacity provided by shareholders and seeks to make full use of it. - Encourages countries to approach the Fund early: "The sooner they do it, the sooner they obtain necessary financing, the sooner they implement good policy." ### Emerging markets, financing needs, and debt relief - IMF estimate: "Our current estimate for the overall financial needs of emerging markets is 2.5 trillion dollars." (described as "on the lower end") - Capital flows and commodity shock: - "Some 83 billion dollars had left emerging markets." - Commodity exporters suffer additional price shock and reduced global demand for exports including tourism and manufactured goods. - Debt and concessional financing: - Board approved changes in the application of the Catastrophic Containment and Relief Trust (CCRT) to provide some debt relief to the poorest members. - IMF is seeking support from membership to increase capacity of the CCRT; pledges have been received from UK, Japan and China. - On IDA (World Bank low-income) countries: official annual debt service is "just around $11 billion dollars, slightly less than 11 billion dollars." - Approximately half of this is debt of countries already at high debt distress. - The IMF will coordinate with official creditors, the G-20, and the Paris Club; private creditor involvement has not yet been decided but is anticipated to be part of a comprehensive approach. ### Country-specific actions and G-20 coordination - G-20 role: - G-20 leaders representing 85 percent of the world economy focused on containing the health crisis, mobilizing collective medical capacity, keeping trade in medical supplies unconstrained, and coordinating fiscal and monetary measures. - Finance ministers of the G-20 tasked to develop an action plan rapidly; international organizations (including the IMF) are drawn into the collective response. - Examples of IMF financing decisions: - Approved package for Jordan: 1.3 billion dollars. - Operational modality: - IMF staff have been working virtually for more than 10 days to adjust operations and step up response. ### United States: recession, stimulus, and policy implications - On U.S. economic status: "As Chairman Powell said... The U.S. is in recession, as is the rest of the advanced...economies." - IMF is finalizing projections for 2020 to be released prior to the Spring Meetings; will report unemployment and contraction estimates when data allow. - On the U.S. 2 trillion dollar stimulus package: - Viewed as "very welcome" for cushioning the U.S. economy and for its global importance. - Noted targeted components: - "A hundred and seventeen billion dollars for hospitals." - Measures to help workers and families, protect firms including SMEs, and protect the financial system. - Sufficiency depends on "how long it takes to contain the pandemic." ### Key operational and policy priorities emphasized - Contain the health crisis aggressively to shorten the economic standstill. - Use well-targeted fiscal measures focused on health systems, people, businesses, and the financial system. - Rapidly mobilize IMF financing, simplify access, and expand concessional support for low-income countries. - Coordinate with the World Bank, G-20, Paris Club, and potentially private creditors on debt relief and liquidity provision. - Secure the full borrowing and lending capacity of the IMF (including the one trillion dollars capacity) through completion of domestic procedures and borrowing arrangements. *Transcript of Press Briefing by Kristalina Georgieva following a Conference Call of the International Monetary and Financial Committee, March 27, 2020.* --- ## References - [https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva) - [People's Republic of China and the IMF](http://www.imf.org/external/country/CHN/index.htm) - [United States and the IMF](http://www.imf.org/external/country/USA/index.htm) - [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/2020/03/27/tr032720-transcript-press-briefing-kristalina-georgieva-following-imfc-conference-call_