{
  "title": "Transcript of IMF Press Briefing (June 24, 2021)",
  "publication": "IMF News, June 24, 2021",
  "sourceUrl": "https://www.imf.org/en/news/articles/2021/06/24/tr062421-transcript-of-imf-press-briefing",
  "canonical": "https://www.imf.org/en/news/articles/2021/06/24/tr062421-transcript-of-imf-press-briefing",
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  "summary": "Managing Director Kristalina Georgieva participation schedule:",
  "publishDate": "2021-06-24",
  "sections": [
    {
      "heading": "Announcements and upcoming public events",
      "content": "- Managing Director Kristalina Georgieva participation schedule:\n  - International Financial Congress (Bank of Russia) on June 30.\n  - Chairing a press briefing on the Article IV Consultation with the United States on July 1.\n  - Participation with EBRD President Odile Renaud-Basso for the 30th anniversary of the EBRD on July 2.\n  - U.N. High-Level Political Forum on July 6.\n  - Three Seas Initiative keynote speech on July 8 focusing on the green digital transition.\n  - G20 Finance Ministers and Central Bank Governors meeting (Italy chair) on July 9-10.\n  - Venice Climate Conference on July 11.\n- Deputy Managing Director Tao Zhang speaking at a roundtable on Financial Choices for Africa in the Face of Climate Change on July 1."
    },
    {
      "heading": "Global inflation assessment and the United States",
      "content": "- IMF view on recent inflationary pressures:\n  - Spike reflects transitory supply–demand mismatches, temporary input shortages and largely one-off shifts, including commodity price increases coming off the very low base of last year.\n  - Risks exist that inflation will prove higher and more persistent, with potential impacts on financial conditions and activity in the US and globally.\n  - Managing Director Kristalina Georgieva’s guidance: \"we need to be watchful.\"\n- On the Federal Reserve:\n  - Actions taken by the Federal Reserve are expected to help support the US economy and more firmly anchor inflation expectations.\n  - Continued clear communication and an orderly, methodical, transparent messaging of policy intentions will help mitigate potential risks from policy normalization."
    },
    {
      "heading": "Special Drawing Rights (SDR) $650 billion allocation and voluntary channeling",
      "content": "- Executive Board process and timing:\n  - Executive Board to discuss a proposal for a new SDR allocation of $650 billion.\n  - Managing Director to prepare a report to the Board of Governors based on the staff's assessment of long-term global reserve needs.\n  - Report to the Board of Governors expected to be approved by the Executive Board around mid-July if the Board concurs.\n  - If approved by the Board of Governors, the allocation would become effective toward the end of August (described as \"late August\").\n- Voluntary channeling options being explored:\n  - Members with strong external positions could voluntarily channel part of their SDRs to scale up lending for low-income countries via the IMF's Poverty Reduction and Growth Trust (PRGT).\n  - Past channeling: through the PRGT to low-income countries at the level of some $15 billion in the past year.\n  - Discussion of channeling SDRs to support greener recoveries, climate issues and structural transformation.\n  - Managing Director has discussed magnifying impact to reach a total global ambition of $100 billion for the poorest and most vulnerable countries (a number indicated by the G7).\n  - Possible instruments: PRGT and a potential new Sustainability and Resilience Trust."
    },
    {
      "heading": "Argentina debt, Paris Club and IMF engagement",
      "content": "- Paris Club and Argentina:\n  - Argentina announced it would pay $430 million in two installments (one in July, the other in February 22) instead of a $2.4 billion payment.\n  - IMF welcomes Argentina's progress toward addressing debt owed to Paris Club creditors.\n- IMF–Argentina program talks:\n  - Argentina has indicated commitment to meeting its obligations to the Fund; IMF staff expect to meet with Minister Martín Maximiliano Guzmán and his team on the sidelines of G20 meetings in early July (Italy).\n  - Talks characterized as constructive and productive; no specific timing provided for a new IMF program.\n  - Objective: support Argentina’s return to sustainable and inclusive growth."
    },
    {
      "heading": "El Salvador and Bitcoin as legal tender",
      "content": "- IMF stance:\n  - Adoption of Bitcoin as legal tender raises macroeconomic, financial and legal issues requiring careful analysis.\n  - IMF consultations with El Salvador authorities are ongoing; discussions on potential IMF support continue and more will be said once they conclude."
    },
    {
      "heading": "Cameroon emergency financing and accountability measures",
      "content": "- Context:\n  - IMF Board approved two emergency disbursements last year to Cameroon to help address the Covid-19 pandemic.\n  - Recent investigation by Cameroonian authorities into use of those disbursements.\n- Accountability measures expected or agreed:\n  - Publication of the results of public procurement and beneficial ownership of companies receiving procurement contracts.\n  - Issuance of a report on Covid-19 spending.\n  - Independent audit of the spending and publication of its results.\n- Engagement with civil society:\n  - IMF received a letter from women leaders in Cameroon and responded by reiterating measures aimed at strengthening governance and reducing corruption vulnerability.\n  - IMF looking to meet with representatives of those women leaders."
    },
    {
      "heading": "Pakistan program and sixth review",
      "content": "- Status:\n  - Open, constructive discussions with Pakistani authorities on the next review of the reform program supported by IMF resources.\n  - Key reform areas: sustainable fiscal path, structural reforms particularly on tax and energy sectors, and social spending enhancements.\n  - Recent mission could not complete discussions; IMF aims to resume discussions in the period ahead.\n- Clarification on disbursement reporting:\n  - IMF did not confirm suspension of disbursements; discussions on the next review are ongoing and constructive."
    },
    {
      "heading": "Pandemic response, vaccine finance proposal and the World Economic Outlook (WEO)",
      "content": "- IMF vaccine proposal:\n  - IMF staff proposal for $50 billion to vaccinate 40 percent of people in all countries by the end of 2021 and 60 percent of people in all countries by the middle of 2022.\n  - Proposal elements: dose sharing, closing financing gaps for low and middle income countries, removing barriers to export of raw materials and vaccine inputs, boosting production and distribution capacity.\n  - WHO, WTO, and World Bank joined the IMF in support of this proposal; a “war room” task force formed to push the proposal forward.\n  - Concern highlighted: low vaccination rates in sub-Saharan Africa and low-income nations in general, with \"less than one percent\" of vaccine received so far in those low-income nations.\n- World Economic Outlook Update:\n  - Upcoming WEO Update will incorporate status of vaccination, status of variants (including Delta) and their impact on major economies and the global outlook; led by Gita Gopinath."
    },
    {
      "heading": "Debt distress, Common Framework and low-income countries",
      "content": "- Common Framework uptake and status:\n  - Three countries have requested assistance under the Common Framework: Chad, Ethiopia, Zambia.\n  - Chad recently received financing assurances from its G20 bilateral creditors; IMF calls for speedy commitments on comparable terms by private sector creditors and other official bilateral creditors.\n  - IMF is pushing to make the Common Framework fully operational and encourages countries to seek early action for debt resolution rather than wait.\n- Recent milestones noted:\n  - Somalia received debt relief under the enhanced HIPC decision point and is now benefiting from IMF financing.\n  - Sudan: Executive Board scheduled to meet next week to discuss the decision point on Sudan."
    },
    {
      "heading": "Closing remarks",
      "content": "- IMF remains engaged across crises: pandemic response, debt resolution, climate and digital transitions, and supporting member countries’ sustainable and inclusive growth.\n- Press briefing embargo: remarks embargoed until 10:30 a.m. Washington time.\n\nTranscript of IMF Press Briefing, June 24, 2021 — IMF Communications Department\n\n---\n\n\n References\n\n- https://www.imf.org/sitecore/service/notfound.aspx?item=master%3A%7B8D1E6EAB-2E82-47BE-B9FE-258FFB4CBC4A%7D%40en\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/06/24/tr062421-transcript-of-imf-press-briefing"
    }
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    "Published: June 24, 2021",
    "Managing Director Kristalina Georgieva participation schedule:",
    "Deputy Managing Director Tao Zhang speaking at a roundtable on Financial Choices for Africa in the Face of Climate Change on July 1.",
    "IMF view on recent inflationary pressures:",
    "On the Federal Reserve:",
    "Executive Board process and timing:",
    "Voluntary channeling options being explored:",
    "Paris Club and Argentina:",
    "IMF–Argentina program talks:",
    "IMF stance:",
    "Context:",
    "Accountability measures expected or agreed:",
    "Engagement with civil society:",
    "Status:",
    "Clarification on disbursement reporting:",
    "IMF vaccine proposal:",
    "World Economic Outlook Update:",
    "Common Framework uptake and status:",
    "Recent milestones noted:",
    "IMF remains engaged across crises: pandemic response, debt resolution, climate and digital transitions, and supporting member countries’ sustainable and inclusive growth.",
    "Press briefing embargo: remarks embargoed until 10:30 a.m. Washington time.",
    "[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)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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