## Transcript of IMF Press Briefing

_IMF News, February 4, 2021_

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**Canonical URL:** [Transcript of IMF Press Briefing](https://www.imf.org/en/news/articles/2021/02/04/tr020421-transcript-of-imf-press-briefing)

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## Bibliographic details
- Published: February 4, 2021

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### IMF communications and recent publications
- Briefing date: February 4, 2021; embargo until 10:30 a.m. (Washington time).
- Recent IMF releases referenced:
  - Update to the World Economic Outlook.
  - Update to the Global Financial Stability Report.
  - Update to the Fiscal Monitor.
  - Update to debt sustainability analysis methodology (announced yesterday).
  - Middle East and Central Asia Regional Economic Outlook Update launched by Jihad Azour earlier today.
  - Upcoming regional update on the Western Hemisphere to be presented by Alejandro Werner on Monday at 8:45 a.m. (Washington time), with a press conference planned.
- Press contact listed: PRESS OFFICER: Raphael Anspach; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson.

### Ukraine: staff-level review of stand-by arrangement
- Status:
  - The first review of the stand-by arrangement for Ukraine is ongoing.
  - A virtual IMF staff mission began late last year, was paused over the holiday period, and has resumed.
- Process:
  - Discussions cover the economic development policies and reforms needed to underpin completion of the review.
  - No new timetable or completion date provided.

### Ethiopia: debt situation and the G-20 common framework
- Situation:
  - The pandemic is pushing debt levels to new heights, adding to spending needs while revenues fall due to lower growth and trade, raising the debt burden.
  - Ethiopia is described as "struggling with a high debt burden" exacerbated by the crisis.
- IMF role and stance:
  - Debt restructuring negotiations are matters for the government and its creditors; the IMF is not a direct party to negotiations but seeks to be helpful.
  - The IMF is very supportive of the G-20 common framework for debt treatments, which it helped develop and promote.
  - The common framework aims to address unsustainable sovereign debt in low-income countries on a case-by-case basis, ensuring broad participation of creditors, comparability of treatment, and fair burden sharing to establish a level playing field.
- Timing:
  - No date provided for an update on the debt sustainability assessment (DSA) for Ethiopia.

### Myanmar: emergency financing, safeguards, and engagement
- Context:
  - IMF emergency financing approved in January (by the IMF Board) provided about $350 million dedicated to urgent humanitarian needs related to the pandemic.
  - Approval followed standard procedures for emergency financing, with safeguards including repayment schedules.
- Safeguards and governance:
  - Emergency financings have safeguard provisions such as audit and transparency of procurement; these apply even when instruments have relatively few conditions.
  - The IMF emphasizes the importance of central bank independence.
- Engagement and recognition:
  - The IMF has had no communication with the new regime as of the briefing.
  - The IMF is guided by the international community and its membership regarding recognition of governments, which informs IMF engagement with countries.
- Use and intent of funds:
  - The IMF’s stated intention is that resources support the people of Myanmar and vulnerable groups; the expectation is that safeguards and governance commitments will be maintained regardless of political developments.
- Broader program usage:
  - The IMF has used these emergency financing instruments in 85 countries so far during the crisis and previously in 84 countries (both figures appear in the briefing in different contexts).

### Argentina: negotiations on an Extended Fund Facility and timing
- Status:
  - Talks on a possible IMF-supported program (Extended Fund Facility, EFF) are continuing between Argentine authorities and IMF staff.
  - Minister Guzman has reiterated the authorities’ wish to complete negotiations by May this year.
  - A formal IMF staff mission is expected to take place in the coming weeks; it will be virtual for health reasons.
- Terms and duration:
  - The IMF noted the terms of the EFF are available on the IMF website; questions were raised domestically about talk of a 20-year program, but no confirmation of program length was provided in the briefing.
- Logistics:
  - Missions are virtual due to health-related protocols tied to the pandemic and associated travel/safety considerations.
  - The authorities may visit Washington over the coming weeks, but no precise timing was provided.

### United States: MD and Treasury Secretary meeting topics
- Summary of discussions between IMF Managing Director and U.S. Treasury Secretary Janet Yellen:
  - Fight the pandemic.
  - Boost growth.
  - Combat income inequality.
  - Tackle climate change.
  - Importance of global engagement to support low-income countries.

### India: reaction to national budget
- Comment on the Modi government budget for the 12 months beginning on April 1st (described as "nearly half trillion dollar budget"):
  - The IMF welcomes the budget’s focus on growth and fiscal policy to facilitate a strong and inclusive recovery.
  - Positive emphasis on health, education, and public infrastructure; full implementation can help increase India’s growth potential.
  - The IMF welcomes improved fiscal transparency measures such as including food subsidies in the budget.
  - The IMF stresses the importance of a medium-term fiscal consolidation strategy to ensure credibility.
  - The IMF agrees on the need to further strengthen the financial sector and looks forward to details of proposed measures.

*Transcript of IMF Press Briefing, February 4, 2021 — IMF Communications Department.*

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## References

- [https://www.imf.org/sitecore/service/notfound.aspx?item=master%3A%7B8D1E6EAB-2E82-47BE-B9FE-258FFB4CBC4A%7D%40en](https://www.imf.org/sitecore/service/notfound.aspx?item=master%3A%7B8D1E6EAB-2E82-47BE-B9FE-258FFB4CBC4A%7D%40en)
- [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)
- [Myanmar and the IMF](http://www.imf.org/external/country/MMR/index.htm)
- [The Federal Democratic Republic of Ethiopia and the IMF](http://www.imf.org/external/country/ETH/index.htm)
- [Ukraine and the IMF](http://www.imf.org/external/country/UKR/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/2021/02/04/tr020421-transcript-of-imf-press-briefing_