## Transcript of the 2020 Spring Meetings IMFC Press Conference

_IMF News, April 17, 2020_

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## Bibliographic details
- Published: April 17, 2020

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### Major takeaways from the IMFC meeting
- IMFC endorsed a forceful, coordinated international response led by the IMF to tackle the COVID-19 pandemic and its economic fallout.
- Emphasis on acting “fast and act big” to deliver lifelines and avoid a protracted recession.
- Recognition that different countries face different vulnerabilities: emerging markets and developing countries, commodity exporters, and economies with weak health systems are particularly at risk.
- Global solidarity highlighted: donor countries pledged resources to bolster IMF capacity so the IMF can deploy support to vulnerable members lacking domestic resources.
- Social cohesion and calibrated social policies were stressed: protect vulnerable people, reduce inequality, and promote access to opportunities.

### IMF crisis-response toolkit and capacity
- IMF has revamped its toolkit and received IMFC support for the package of financial support.
- Key elements of the IMF response:
  - Doubling access levels to emergency facilities.
  - Expanding use of precautionary lines.
  - Establishing a new Short-term Liquidity Line (STLL).
  - Considering other options to help countries meet financing needs.
- Target: deploy the IMF’s $1 trillion lending capacity to help emerging markets and developing economies.
- Emergency financing speed and scale:
  - By the end of this month, some 50 countries will have received help.
  - Total request volume at the time of the press conference: 102 countries.
- Concessional financing and trust replenishments:
  - IMF called for urgent provision of US$17 billion of concessional financing for the Poverty Reduction and Growth Trust (PRGT).
  - Commitments totaling $11.7 billion were announced by Japan, the U.K., France, Australia and Canada.
  - As of the meeting, 70 percent of the PRGT ask had been met by commitments.
  - Catastrophe Containment and Relief Trust (CCRT) capacity boosted to over US$600 million with new pledges from the U.K., Japan, China, the Netherlands, and, as of the meeting, Germany.

### Fiscal and monetary response observed globally
- IMF’s policy tracker figures cited at the meeting:
  - Fiscal measures so far have amounted to about $8 trillion.
  - Liquidity injections by central banks amounting to over $6 trillion.
- Concern remains about exchange rate and liquidity pressures in several countries.

### Debt-relief initiatives and creditor roles
- IMFC welcomed the coordinated G20 and Paris Club approach for a time-bound suspension of debt service payments by bilateral official creditors for the poorest countries that request forbearance.
- IMFC encouraged private creditors to participate on comparable terms.
- IMF and World Bank committed to assess debt sustainability on a country-by-country basis and to engage in private-sector involvement where needed.
- Goal: prevent unnecessary insolvencies and stem capital outflows from emerging markets.

### Special Drawing Rights (SDRs) discussion
- Membership discussed both existing SDRs and proposals for a new SDR allocation; no consensus on a new allocation at that time.
- Practical, immediate consideration: deploying existing SDRs held by advanced economies to support developing countries that need liquidity.
- Precedent: advanced-economy SDRs have been used to boost the PRGT; discussion focused on scaling up such deployments for broader benefit.

### Support for middle-income countries
- STLL intended as a timely, lower-cost liquidity instrument for countries with strong policies—complements precautionary lines and emergency financing.
- Emergency financing is available to all eligible countries, including middle-income countries.
- IMF surveillance and policy signaling seen as important to restore investor confidence and reverse capital outflows (noted historical outflow figure: US$100 billion from emerging markets).

### Africa and mobilization with Africa
- IMF and World Bank treating Africa as a high priority for deploying financing capacity.
- Concern that COVID-19 risks undermining Africa’s pre-crisis growth momentum in countries that had been growing at “six percent and more.”
- Reference to Mobilizing with Africa meeting to follow the IMFC discussions; coordinated engagement with the African Union, President Ramaphosa, and the United Nations.
- External appeals and estimates mentioned:
  - UN Economic Commission for Africa cited an immediate emergency stimulus need of US100 billion.

### Operational and procedural points cited in the discussion
- Speed of delivery emphasized as critical: “speed of action is of essence” in a crisis that moved rapidly.
- Management tasked with continuing to mobilize resources and pursue further steps as needed based on evolving conditions.
- Chair and Managing Director highlighted global unity in endorsing the IMF package and in pledging contributions to concessional funds and relief trusts.

*Transcript of the 2020 Spring Meetings IMFC Press Conference, April 17, 2020, IMF Communications Department*

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## References

- [South Africa and the IMF](http://www.imf.org/external/country/ZAF/index.htm)
- [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)
- [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/2020/04/17/tr041720-transcript-of-the-2020-spring-meetings-imfc-press-conference_