{ "title": "Transcript of IMF Press Briefing", "publication": "IMF News, May 21, 2020", "sourceUrl": "https://www.imf.org/en/news/articles/2020/05/21/tr052120-transcript-of-imf-press-briefing", "canonical": "https://www.imf.org/en/news/articles/2020/05/21/tr052120-transcript-of-imf-press-briefing", "overlayPath": "/en/news/articles/2020/05/21/tr052120-transcript-of-imf-press-briefing/index.md", "summary": "Emergency financing requests received from 102 countries so far.", "publishDate": "2020-05-21", "sections": [ { "heading": "IMF-wide response to the crisis", "content": "- Emergency financing requests received from 102 countries so far.\n- Emergency financing approvals:\n - Approximately 50 approved two weeks prior.\n - 59 countries approved as of yesterday.\n - Consideration of 29 more expected soon.\n- Executive Board approved doubling of access to emergency financing through the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI), enabling emergency financing up to $100 billion.\n- RCF and RFI features:\n - Provide emergency assistance without the need for a full-fledged program.\n - Do not entail program-based conditionality or reviews.\n - Can be dispersed very quickly to support urgent needs (e.g., pay for doctors and nurses; protect the most vulnerable; safeguard livelihoods).\n- Accountability and transparency measures:\n - Reporting and specific commitments in Letters of Intent.\n - Publishing of how expenditures are used.\n - Independent audits of emergency financing encouraged.\n - Managing Director’s exhortation to countries to “keep the receipts”." }, { "heading": "Debt relief, DSSI, and related initiatives", "content": "- G20 Debt Service Suspension Initiative (DSSI):\n - Call led by Kristalina Georgieva and World Bank President David Malpass for suspension of debt service payments by the poorest (IDA eligible) countries from official bilateral sources.\n - Progress reported: over 20 countries have made formal requests for support under the initiative.\n - Of the 73 countries that could be eligible, more than half have indicated interest to participate.\n - Timeline currently set to end-2020; IMF stands ready to support extension if deemed appropriate by the G20.\n- Private sector participation:\n - IMF and World Bank called on private sector to participate on comparable terms to the official sector.\n - Institute for International Finance (IIF) leading efforts on terms of reference with over 100 leading private sector firms.\n - IMF position: private sector participation should be voluntary and on terms that help countries in need; broad participation would add substantial additional debt relief.\n- IMF-specific relief measures:\n - Catastrophe Containment and Relief Trust (CCRT): so far 27 countries have received immediate relief on their IMF payment obligations; the IMF is looking to triple that debt relief from the IMF (these are grants).\n - Aim to triple concessional resources under the Poverty Reduction and Growth Trust (PRGT); PRGT resources given at zero interest rate." }, { "heading": "IMF instruments, terms, and liquidity support", "content": "- Rapid Financing Instrument (RFI) and Rapid Credit Facility (RCF):\n - Designed for rapid emergency support without traditional IMF conditionality.\n - Access doubled to meet elevated demand.\n- Short-term Liquidity Line introduced as part of pandemic response for eligible countries to help stability and confidence.\n- Example RFI terms cited:\n - Egypt’s RFI carries an interest rate of about one percent.\n - Repayment over roughly three and a quarter to five-year period (significant grace period)." }, { "heading": "Fiscal and financial analysis, public communications", "content": "- IMF estimates of direct fiscal support globally: 9 trillion (noted as a new estimate, \"a trillion more\" than two weeks prior).\n- Warnings and analysis published on risks of rising inequality due to the pandemic.\n- Analytical publications and outreach:\n - World Economic Outlook analytical chapters published; WEO update scheduled for June 24th.\n - Global Financial Stability Report chapters being published; chapters and related interviews scheduled (Tobias Adrian interview on CNBC; GFSR update on June 25th).\n - Managing Director published an op-ed in the Financial Times urging banks to consider retaining earnings to strengthen capital and liquidity.\n - Deputy Managing Directors and staff participating in parliamentary and public dialogues (e.g., Tao Zhang participating in a parliamentary web dialogue)." }, { "heading": "Country-specific updates and IMF posture", "content": "- Argentina:\n - Argentine authorities are in active negotiations with private bondholders to restructure sovereign debt; these negotiations are bilateral between Argentina and its creditors and do not involve the IMF directly.\n - The IMF is encouraged by willingness of both sides to continue discussions.\n - Argentine authorities indicated they would first like to conduct an Article IV consultation and then eventually seek a Fund-supported program; IMF has not started discussions on a Fund-supported program and has no timeline on next steps.\n- Egypt:\n - Government and Central Bank responded with a comprehensive package; authorities requested IMF assistance under the RFI and a more traditional standby arrangement (SBA).\n - IMF Board approved emergency financial assistance under the RFI of about $2.8 billion.\n - IMF and Egyptian authorities working on the SBA modalities; length, size, and policy package to be considered with IMF Executive Board.\n - RFI terms: interest rate about one percent; repayment roughly three and a quarter to five-year period.\n- Lebanon:\n - Discussions between IMF staff and Lebanese authorities are constructive and ongoing (virtual).\n - IMF views the government’s economic plan as a good starting point; it diagnoses issues and proposes comprehensive policies.\n- South Africa:\n - South Africa requested an RFI at the end of April; IMF in discussions with authorities.\n - Access limit noted: 100 percent of quota for all countries; for South Africa this would amount to about $4.2 billion U.S. dollars (subject to Executive Board discussion and decision).\n- Zambia:\n - Zambian authorities have requested emergency assistance from international partners including the IMF; this is in addition to an earlier request for Fund support for an economic reform program.\n - IMF view: Zambia’s public debt is on an unsustainable path under current policies (as indicated in last year’s Article IV consultation).\n - Any IMF financial support, including emergency financing, is contingent on steps to restore debt sustainability.\n - Zambian authorities have expressed intention to restructure debt and to hire debt advisors; IMF continues active discussions on pandemic response and medium-term macroeconomic objectives and policies.\n- China:\n - China took early, strong actions and is among the first to exit the crisis; China’s experience offers lessons (monetary and fiscal measures; electronic payment systems; ecommerce; linking small firms to markets).\n - IMF welcomes China’s support for the CCRT and China’s pledge to support the G20 Debt Relief Initiative for low-income countries.\n- Pakistan:\n - Pakistan’s EFF remains in effect; discussions paused due to pandemic, with focus shifting to the RFI.\n - IMF Executive Board approved $1.4 billion for Pakistan under the RFI (approved almost a month ago).\n - Technical discussions continue with authorities on the EFF second review; IMF hopes to bring it to a positive conclusion as soon as possible.\n- Ukraine:\n - Passage of bank resolution bill in parliament welcomed; bill strengthens bank resolution process and safeguards for public resources; awaiting President’s signature.\n - Virtual IMF staff mission discussing parameters of a new standby arrangement to provide balance of payments and budget support.\n - Policy focus should shift to longer-term structural reforms once recovery is firmly in place.\n- Belarus:\n - IMF has received Belarus’s request for a disbursement under the RFI; IMF staff is in discussions with authorities and evaluating situation and policies.\n- Spain:\n - Spain severely affected: large service sector dominated by SMEs; strong reliance on tourism; widespread use of temporary employment.\n - IMF commends forceful government measures (income and liquidity support); as lockdowns lift economic activity will start to resume.\n - New forecasts to be published in the World Economic Outlook update on June 24th." }, { "heading": "Key statistics and dates (as presented)", "content": "- Emergency financing requests: 102 countries.\n- Emergency financing approved: 59 countries (as of yesterday).\n- Consideration of 29 more countries expected soon.\n- Emergency financing capacity via RCF/RFI up to $100 billion.\n- CCRT immediate relief provided to 27 countries so far.\n- DSSI potential eligible countries: 73 countries.\n - Over 20 countries made formal requests to participate.\n - More than half of the 73 eligible have indicated interest to participate.\n- IMF estimate of direct fiscal support: 9 trillion (a trillion more than two weeks prior).\n- Egypt RFI approved: about $2.8 billion.\n- Pakistan RFI approved: $1.4 billion.\n- South Africa possible RFI access: about $4.2 billion (100 percent of quota, subject to Board decision).\n- RFI example terms: interest rate of about one percent; repayment roughly three and a quarter to five-year period.\n- World Economic Outlook update scheduled: June 24th.\n- Global Financial Stability Report update scheduled: June 25th.\n\nSource: Transcript of IMF Press Briefing, May 21, 2020\n\n---\n\n\n References\n\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2020/05/21/tr052120-transcript-of-imf-press-briefing" } ], "bullets": [ "[Markdown version](/en/news/articles/2020/05/21/tr052120-transcript-of-imf-press-briefing/index.md)", "[Structured JSON version](/en/news/articles/2020/05/21/tr052120-transcript-of-imf-press-briefing/index.json)", "[Bundle manifest](/en/news/articles/2020/05/21/tr052120-transcript-of-imf-press-briefing/bundle-manifest.json)", "Published: May 21, 2020", "Emergency financing requests received from 102 countries so far.", "Emergency financing approvals:", "Executive Board approved doubling of access to emergency financing through the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI), enabling emergency financing up to $100 billion.", "RCF and RFI features:", "Accountability and transparency measures:", "G20 Debt Service Suspension Initiative (DSSI):", "Private sector participation:", "IMF-specific relief measures:", "Rapid Financing Instrument (RFI) and Rapid Credit Facility (RCF):", "Short-term Liquidity Line introduced as part of pandemic response for eligible countries to help stability and confidence.", "Example RFI terms cited:", "IMF estimates of direct fiscal support globally: 9 trillion (noted as a new estimate, \"a trillion more\" than two weeks prior).", "Warnings and analysis published on risks of rising inequality due to the pandemic.", "Analytical publications and outreach:", "Argentina:", "Egypt:", "Lebanon:", "South Africa:", "Zambia:", "China:", "Pakistan:", "Ukraine:", "Belarus:", "Spain:", "Emergency financing requests: 102 countries.", "Emergency financing approved: 59 countries (as of yesterday).", "Consideration of 29 more countries expected soon.", "Emergency financing capacity via RCF/RFI up to $100 billion.", "CCRT immediate relief provided to 27 countries so far.", "DSSI potential eligible countries: 73 countries.", "IMF estimate of direct fiscal support: 9 trillion (a trillion more than two weeks prior).", "Egypt RFI approved: about $2.8 billion.", "Pakistan RFI approved: $1.4 billion.", "South Africa possible RFI access: about $4.2 billion (100 percent of quota, subject to Board decision).", "RFI example terms: interest rate of about one percent; repayment roughly three and a quarter to five-year period.", "World Economic Outlook update scheduled: June 24th.", "Global Financial Stability Report update scheduled: June 25th.", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2020/05/21/tr052120-transcript-of-imf-press-briefing/index.md", "json": "/en/news/articles/2020/05/21/tr052120-transcript-of-imf-press-briefing/index.json", "bundleManifest": "/en/news/articles/2020/05/21/tr052120-transcript-of-imf-press-briefing/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T23:41:58.014Z" }