Transcript of the IMFC Press Briefing
IMF News, April 21, 2022
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Bibliographic details
- Published: April 21, 2022
Meeting overview
- Event: IMFC meeting (45th convening) and press briefing.
- Date: April 21, 2022.
- Chair: Nadia Calviño, Chair, IMFC (First Vice President of Spain and Minister for Economy and Digitalization).
- Managing Director: Kristalina Georgieva, IMF.
- Moderator: Gerry Rice, Director, Communications Department, IMF.
- Core framing: Concurrent global shocks — Russia’s war against Ukraine and the lingering COVID‑19 pandemic — producing a “double crisis” with global spillovers.
Major outcomes and institutional developments
- Chair’s statement:
- Issued by Nadia Calviño with text agreed by an “overwhelming majority” of members; Communiqué unanimity was not reached because one member broke away.
- The Chair’s statement reflects broad agreement on substantive issues and a clear call for multilateral cooperation.
- Resilience and Sustainability Trust (RST):
- The IMFC agreed to establish the Resilience and Sustainability Trust to provide IMF financial support for longer‑run structural challenges, including climate change and pandemic preparedness.
- Twelve countries committed financial support to the RST, and the IMF stated “we now have about $40 billion” to move toward implementation.
- The 12 supporting countries named: China, Japan, South Korea, Italy, France, Germany, Saudi Arabia, the Netherlands, Canada, U.K., Switzerland, Spain.
- IMF financial support for Ukraine:
- Ukraine’s authorities estimate a financing gap of $5 billion a month over the next three months; IMF staff confirmed this is the right order of magnitude for the next couple of months.
- Ukraine’s reported reserves: $29 billion.
- IMF emergency financing provided to date: $1.4 billion (also in Ukraine’s SDR account).
- A Fund‑administered special IMF account was created to receive contributions (including in Special Drawing Rights) to support Ukraine, designed to protect resources and facilitate grants and other support.
- Additional reported pledges referenced in questioning: $24 billion pledged by G7 Finance Ministers (question context—clarification sought on whether these are separate from IMF account pledges).
Major themes and policy messages
- Multilateralism and institutional relevance:
- Strong endorsement of multilateral cooperation; members voiced the need for global cooperation to address shared challenges (climate change, food and energy security, pandemic preparedness).
- The G‑20 and IMFC remain important fora for coordination; India’s upcoming G‑20 Presidency seen as a key opportunity to advance collective priorities including completion of the 16th General Review of Quotas.
- Inflation and monetary policy:
- Inflation pressures (driven by food and fuel price increases) are a central concern.
- Central banks should “appropriately calibrate the pace of monetary policy tightening in a data dependent and clearly communicated manner” to keep inflation expectations anchored while safeguarding recovery and limiting cross‑country spillovers.
- Fiscal policy and sequencing:
- Countries are urged to anchor fiscal policy in medium‑term sustainability frameworks and rebuild buffers when appropriate.
- Retain crisis‑management capacity; target support to the most vulnerable people and sectors.
- Fiscal adjustment is not an “either/or” versus addressing long‑term priorities — short‑term crisis response should be coordinated with medium‑term fiscal sustainability, environmental sustainability, and social sustainability goals.
- Climate and energy policy:
- Rapid expansion of renewable energy where feasible can improve energy security and help mitigate price shocks.
- Certain climate‑friendly policies can also address near‑term challenges.
- Tax policy:
- More equitable tax policies can contribute to both short‑term and long‑term objectives.
Debt resolution and the Common Framework
- Assessment of the Common Framework:
- Conceptually appropriate: brings Paris Club, non‑Paris Club official creditors (including China), and private sector creditors together on a country‑by‑country basis anchored in IMF debt sustainability analysis.
- Identified problems: lack of clear processes and timelines, weak incentives for countries to request treatment, poor track record to date, and limited eligibility (excludes some countries in need, e.g., Sri Lanka and Suriname).
- IMF and World Bank have recommended reforms to address these shortcomings.
- China’s role and Zambia:
- China made a commitment to join the creditor committee on Zambia and to work constructively toward expeditious debt resolution on a case‑by‑case basis.
- IMF sees China’s engagement as important given China is among the largest official creditors.
- Broader actions urged:
- Strengthen Common Framework operations, set clearer timelines and deliverables, improve debt transparency, introduce more contingency measures in debt contracts, and address legal/vulture fund loopholes in jurisdictions such as York and London.
IMF operational priorities and modalities
- Three avenues through which IMF assists members:
- Tailored policy advice (especially when countries face inflation, debt, and potential capital flow volatility).
- Continued financial support for balance of payments needs, including for those facing added stress from energy and food price shocks.
- Targeted capacity development (demand for capacity development has “skyrocketed” owing to complexity of member challenges).
- RST mechanism purpose:
- Provide longer maturities and financing for structural transformation (climate change mitigation/adaptation, pandemic preparedness).
- Intended to be a new part of the IMF’s financial toolkit for both low‑income and some middle‑income countries.
- Ukraine program planning:
- IMF staff are engaged in preliminary discussions for a full‑fledged program for Ukraine once conditions permit, with an emphasis on rebuilding with stronger governance, competitiveness, and European integration.
Notable exact numeric values and figures cited
- IMFC convened for its 45th time.
- IMF membership referenced as 190‑member countries.
- RST initial available resources stated as “about $40 billion.”
- Number of countries that committed to support the RST at announcement: 12 (China, Japan, South Korea, Italy, France, Germany, Saudi Arabia, the Netherlands, Canada, U.K., Switzerland, Spain).
- Ukraine’s estimated monthly financing gap for the next three months: $5 billion a month.
- Ukraine’s reserves: $29 billion.
- IMF emergency financing to Ukraine to date: $1.4 billion.
- Reference to $24 billion pledged by G7 Finance Ministers (question context).
Transcript of the IMFC Press Briefing, April 21, 2022, IMF Communications Department