## Transcript of IMF Press Briefing (September 16, 2021)

_IMF News, September 16, 2021_

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**Canonical URL:** [Transcript of IMF Press Briefing (September 16, 2021)](https://www.imf.org/en/news/articles/2021/09/16/tr091621-transcript-of-imf-press-briefing)

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## Bibliographic details
- Published: September 16, 2021

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### Organizational announcements and upcoming events
- General allocation of Special Drawing Rights in the amount of $650 billion was completed in the month of August; SDRs have been distributed to IMF membership.
- Upcoming remarks and events involving the Managing Director and senior IMF staff:
  - Kristalina Georgieva: panel on investment funds and financial stability (tomorrow, at 8:00).
  - Kristalina Georgieva: Columbia University Earth Institute Conference on Sustainable Development (September 21, at 8:15 a.m., with Jeff Sachs).
  - Kristalina Georgieva: Global COVID-19 Summit hosted by the United States, "Ending the Pandemic: Building Back Better" (September 22).
  - Kristalina Georgieva: High-Level Dialogue on Energy (September 24).
  - Kristalina Georgieva: International Conference on Enhancing Digital and Global Infrastructure in Cross Border Payments (September 27).
  - Kristalina Georgieva: Opening remarks at Financing for Development Event on Jobs, Social Protection, and Poverty Eradication (September 28).
  - Geoffrey Okamoto: Forum on National Affairs, State Council of China (September 23).
  - Bo Li: Official Monetary and Financial Institutions Forum symposium, "Revolutionizing Finance for Net Zero" (September 29).
  - Antoinette Sayeh: Panel on Post-Pandemic Assessment of the Sustainable Development Goals (September 29); High-Level Policy Dialogue on Embedding Climate Change into Asia’s Recovery Strategy (September 30).
- Annual Meetings: Curtain Raiser Speech on October 5 at Bocconi University, Milan; Annual Meetings will be in hybrid format with small numbers of official country delegates at IMF Headquarters and all public events virtual.

### Special Drawing Rights (SDRs) — use, channeling, and mechanisms under consideration
- Key fact: allocation amount was $650 billion (completed August 23 referenced elsewhere).
- IMF encourages responsible and transparent use of SDRs to help replenish depleted central bank reserves and support macroeconomic adjustment and reforms.
- Channeling options discussed by IMF staff and Executive Directors (informal Board discussion held):
  - Use of the Poverty Reduction and Growth Trust (PRGT) to channel SDRs to low-income countries (noted as "probably the easiest, the most well-established option").
  - Creation of a new Resilience and Sustainability Trust to support poorer and vulnerable countries for greener, more sustainable recoveries (modalities and objectives still under discussion).
  - Channeling SDRs through other multilateral development banks (noted as a third option with less preliminary support).
- Past precedent cited: a recent mobilization freed up some $24 billion of resources for low-income countries based on a $15 billion SDR channeling to the PRGT.
- Next steps: IMF will take Executive Directors’ feedback on board and revert with an updated proposal "in the coming weeks"; hoped for further progress by the time of the Annual Meetings.

### Country engagements, program status, and access to IMF resources
- General principle: IMF engagement with countries is guided by international community recognition of governments; lack of clarity on recognition prevents access to IMF resources (including SDRs).
- Guinea:
  - IMF is closely monitoring unfolding events and urging a peaceful resolution.
  - Fifth and sixth reviews under the program were completed last December.
  - Rapid Credit Facility was provided during the pandemic.
- Ukraine:
  - A virtual review mission is planned for later this month (specific dates to be announced closer to the mission).
  - IMF focus areas with Ukrainian authorities include: strengthening governance and autonomy of the National Bank of Ukraine, judicial reform, restoring and strengthening the anti-corruption framework, and ensuring a sustainable fiscal position.
  - No specific timeline for disbursements or program extension given; discussions are ongoing.
- El Salvador:
  - IMF has publicly expressed views on the adoption of bitcoin as legal tender.
  - Article IV discussions are ongoing and are expected to conclude "in the period ahead, in the coming months"; these would serve as the basis for discussions on a potential IMF program aimed at inclusive growth, financial stability, and fiscal sustainability.
  - Economic governance issues, fiscal transparency, and anti-corruption measures remain key in Article IV and program discussions.
- Venezuela:
  - IMF welcomes dialogue aimed at resolving the political stalemate and addressing the humanitarian crisis.
  - Due to lack of clarity within the international community regarding recognition of a government in Venezuela, Venezuela cannot access IMF resources at this point, including the SDR allocation.
- Afghanistan:
  - IMF engagement is suspended until there is clarity within the international community on recognition of a government; accordingly, the IMF program is on hold and Afghanistan cannot access IMF resources, including SDRs.
  - IMF stands ready to work with the international community to advocate urgent actions to address the humanitarian crisis, allow remittances and small-scale transfers, and provide assistance to hosting countries.
- Ethiopia:
  - The IMF program consists of two arrangements: an Extended Credit Facility (ECF, concessional) and an Extended Fund Facility (EFF, non-concessional).
  - The ECF is set to expire in September; the EFF arrangement remains operational.
  - Authorities have performed and staff-level agreements have been reached during the program; the IMF is in regular contact and continuing policy dialogue, but it is "too soon to precisely map out staff engagement" on any new program.
- Lebanon:
  - IMF has had courtesy calls with members of the new government and stands ready to engage; no timeline provided.
  - Countries decide how to use their SDR allocations; IMF guidance recommends using SDRs to replenish depleted reserves and to support macroeconomic adjustment and reforms in a transparent and responsible manner.
- Myanmar:
  - IMF is not engaging with the new regime; lack of international recognition prevents access to SDR allocation and IMF resources.
  - IMF cannot ascertain whether funds are being used as intended and is concerned about implications for addressing COVID-19 in Myanmar.
- Argentina:
  - Technical discussions toward an IMF-supported program are ongoing to address macroeconomic imbalances and support sustainable and inclusive growth; no update on timing of a new program or mission dates.
  - IMF does not comment on political developments.

### Pandemic response, vaccine targets, and related coordination
- Joint statement issued with WHO, World Bank, and WTO (issued at 9:00 the day of the briefing) urging redoubled efforts on vaccine equity.
- Vaccination status cited:
  - World reached 40 percent vaccination rate (at least one dose) "this week" (as of the briefing).
  - Only 2 percent vaccination rate in low-income countries.
- IMF/WHO/World Bank/WTO targets communicated earlier in the summer:
  - Vaccinate at least 40 percent of the population in every country by the end of this year.
  - Vaccinate at least 60 percent in all countries by the first half of 2022.
- WHO additional global target referenced: vaccinate 70 percent of the world’s population by the middle of next year (noted as compatible with IMF targets but the IMF emphasizes country-level targets).
- IMF staff and partners are meeting regularly to monitor and accelerate progress on vaccine equity.

### Policy commentary and other IMF internal policy processes
- U.S. debt ceiling:
  - IMF view: important to find a solution that avoids counterproductive brinkmanship.
  - IMF has previously suggested considering replacing the ceiling with a clear, simple medium-term fiscal objective or automatically adjusting the debt ceiling consistent with taxes and appropriations agreements.
- Review of access and surcharge policies:
  - G-20 Finance Ministers and Central Bank Governors called on the Fund to complete outreach on access and surcharge policies.
  - Managing Director has initiated the process; staff characterize next steps likely starting with an informal Board meeting to gather preliminary views before formal Board consideration. No date provided.
- Leadership appointments:
  - Elan Goldfajn returning as head of the Western Hemisphere Department noted as an asset given his experience (former IMF staff member and former Governor of the Central Bank of Brazil).

*Italic: Transcript of IMF Press Briefing, September 16, 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)
- [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/2021/09/16/tr091621-transcript-of-imf-press-briefing_