{ "title": "Transcript of IMF Press Briefing", "publication": "IMF News, September 15, 2022", "sourceUrl": "https://www.imf.org/en/news/articles/2022/09/16/tr091522-com-press-briefing", "canonical": "https://www.imf.org/en/news/articles/2022/09/16/tr091522-com-press-briefing", "overlayPath": "/en/news/articles/2022/09/16/tr091522-com-press-briefing/index.md", "summary": "Transcript of IMF Press Briefing", "publishDate": "2022-09-15", "sections": [ { "heading": "IMF-wide activities, financing, and new instruments", "content": "- Since the beginning of the pandemic, the IMF has lent over $268 billion to 93 countries.\n- That pandemic lending includes $27 billion to low-income countries.\n- Since the beginning of the war in Ukraine (Russia's invasion of Ukraine), 16 member countries have made 20 requests for financing totaling about 87.2 billion.\n- The $650 billion SDR allocation from about a year ago remains part of IMF support efforts.\n- The Resilience and Sustainability Trust (RST) is expected to begin with an initial capital of about $45 billion; the IMF is very close to that and expects to operationalize the RST around the Annual Meetings.\n- The IMF has begun discussions with its Executive Board on a potential new emergency financing instrument, the \"food shock window\"; its use would be contingent on Board approval and, if approved, is intended to provide immediate short-term support in the ballpark of prior emergency support (referenced as similar to the prior $1.4 billion emergency financing for Ukraine)." }, { "heading": "Ukraine: emergency support, pathway to a full program, and administered account", "content": "- Immediate/emergency support:\n - The IMF previously provided $1.4 billion of emergency financing to Ukraine just before the Russian invasion.\n - The proposed food shock window was discussed with President Zelenskyy; if Board-approved it could provide very-short-term additional support \"in the ballpark\" of the prior $1.4 billion.\n- Path to a full-fledged program:\n - Managing Director and President Zelenskyy discussed both short-term emergency support and longer-term potential for building toward a full-fledged IMF program.\n - Fund staff will begin engagement with Ukraine counterparts in the coming weeks; an in-person IMF mission is planned in the near future, likely to be in Vienna, to begin technical discussions on budget, revenues, resource needs, and the pathway to a program.\n- Administered Account for Ukraine:\n - Donor participation to date includes Canada and Germany; the Netherlands has signaled it would make a commitment.\n - Further commitments are expected in the run up to, and during, the Annual Meetings.\n - The IMF did not provide a total amount committed to the Administered Account during the briefing and stated it would provide that information after the meeting." }, { "heading": "Global economic outlook, inflation, and recession risks", "content": "- July World Economic Outlook (as cited):\n - Global growth revised to 3.2 percent in 2022 and 2.9 percent in 2023.\n- Recent developments worsening the outlook:\n - Continued war in Ukraine, supply chain issues, gas supply issues from Russia to Europe, elevated commodity prices, tightening financial market conditions, China's COVID-19 lockdowns and real estate problems, and a strong dollar.\n- Inflation and policy stance:\n - Inflation has risen faster than expected and is described as \"stubborn.\"\n - The IMF emphasizes the importance of remaining \"stubborn\" in addressing inflation even as interest rate increases can slow growth.\n- Recession risk characterization:\n - The IMF expects the slowdown to translate into recession in some countries.\n - Statement paraphrase from the Managing Director: '23 is going to be tougher than '22; some countries will face recession in '23; it is too early to say whether there will be a widespread global recession.\n - Even where growth remains positive, many people will feel like they are in recession.\n- Humanitarian/economic impact example:\n - IMF blog cited an estimate that hunger in Africa has soared by a third in the last two years, affecting 123 million people who cannot meet minimum food consumption needs." }, { "heading": "Country engagement highlights and program/status updates", "content": "- Argentina:\n - Minister Massa met with IMF Managing Director; Fund staff and Argentine authorities have had \"very professional\" and \"productive\" technical discussions.\n - The IMF aims to conclude a Staff-Level Agreement \"very soon in the coming days\"; Board consideration follows staff-level work (no specific dates provided).\n - Kristalina Georgieva commented that she \"came out with the sense that we have a partner that we can work well\" after meeting Minister Massa.\n - No specific payment or disbursement details were provided in the briefing beyond that payments on Argentina’s side were being handled \"in an orderly way\" as far as known.\n- Zambia:\n - IMF Board approved $1.3 billion of support for Zambia’s program of economic reform.\n - Implementation of the program is contingent on securing timely debt restructuring agreements with external creditors.\n - The IMF launched a Governance Diagnostic Assessment for Zambia at the authorities’ request; the final report will be published by the end of the year.\n - Debt sustainability: IMF/World Bank joint Debt Sustainability Analysis indicates a present value of external debt target of 84 percent of exports as a realistic target to restore debt sustainability and absorb shocks; a 140 percent debt-to-exports threshold was also referenced in public discussion. The IMF described the 84 percent present-value-of-exports target as not arbitrary and grounded in the joint DSA framework.\n- Ghana:\n - Ghana has requested a program; an IMF staff team visited Accra in July for initial discussions and the Mission Chief recently visited again.\n - Further visits are planned in the coming weeks; the IMF will conduct an updated Debt Sustainability Analysis as part of program assessment.\n - IMF notes that Ghana has been hit by global shocks (pandemic, war in Ukraine) at a time of limited fiscal space.\n- Suriname:\n - The IMF has a program with Suriname; further work is required, including securing debt restructuring agreements with external creditors (creditors include China, India, and other creditors referenced in discussions).\n - The IMF continues to work with Suriname to get the program back on track and is mindful of population burdens from high food and energy prices.\n- Malawi:\n - Malawi has requested an Extended Credit Facility Arrangement; discussions have been described as very productive and ongoing, largely remote to date.\n - IMF assesses Malawi’s public debt as unsustainable; authorities have engaged debt advisors to restore debt sustainability. The IMF does not directly participate in detailed creditor negotiations, but monitors and supports where appropriate.\n- Serbia:\n - Serbian authorities have expressed interest in a Stand-By arrangement; IMF discussions to assess needs and appropriate policies will follow staff-level engagement and require Board approval.\n- Lebanon:\n - Progress on critical prior actions agreed under the April Staff Level Agreement has been slow; delayed implementation increases costs to Lebanon and its people.\n - An IMF staff team will visit Beirut from September 19 to discuss recent developments and to help speed up implementation of pending prior actions; a full mission will follow after a new government is formed.\n - Timely implementation of prior actions and reforms is critical to end the crisis and prevent further deterioration of living conditions.\n- Ethiopia:\n - No firm update or mission date was provided; the IMF had hoped for progress under the Common Framework for debt restructuring but had no new details at the briefing.\n- Egypt:\n - Egyptian authorities have requested a program; discussions are ongoing and the IMF is working closely with the authorities to support economic stability and sustainable medium-term growth. No agreement date was provided." }, { "heading": "Debt restructuring, policy conditionality, governance, and transparency", "content": "- IMF role and approach:\n - IMF determines the financing envelope required to restore debt sustainability based on realistic joint Debt Sustainability Analyses (with the World Bank where applicable).\n - Decisions on which debts to restructure and the specifics of creditor negotiations are made by authorities with their legal and financial advisors; the IMF supports and assesses but does not directly negotiate on creditors’ behalf.\n - Strengthening governance, improving public financial management, and reducing corruption risks are priorities in IMF-supported programs (explicit example: Zambia program and Governance Diagnostic Assessment).\n- Transparency and accountability:\n - The IMF supports publication of diagnostic and governance assessments; for Zambia, the Governance Diagnostic final report will be published by the end of the year." }, { "heading": "Timing and upcoming IMF engagement", "content": "- Annual Meetings and forecasts:\n - The IMF will present updated forecasts and country assessments at the Annual Meetings, including the next World Economic Outlook (WEO), Global Financial Stability Report (GFSR), and Fiscal Monitor.\n - The Managing Director will deliver a curtain-raiser speech on October 6 at Georgetown University as part of the lead-up to the Annual Meetings.\n- RST operationalization:\n - The IMF expects to operationalize the RST around the Annual Meetings, with about $45 billion initial capital targeted and approximately $40 billion in pledges reported at the time of the briefing.\n- Missions and near-term travel:\n - IMF in-person mission to Ukraine likely in Vienna (near future) to begin technical program discussions.\n - IMF staff team to visit Beirut from September 19 to discuss Lebanon’s pending prior actions.\n\nTranscript of IMF Press Briefing, September 15, 2022.\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/2022/09/16/tr091522-com-press-briefing" } ], "bullets": [ "[Markdown version](/en/news/articles/2022/09/16/tr091522-com-press-briefing/index.md)", "[Structured JSON version](/en/news/articles/2022/09/16/tr091522-com-press-briefing/index.json)", "[Bundle manifest](/en/news/articles/2022/09/16/tr091522-com-press-briefing/bundle-manifest.json)", "Published: September 15, 2022", "Since the beginning of the pandemic, the IMF has lent over $268 billion to 93 countries.", "That pandemic lending includes $27 billion to low-income countries.", "Since the beginning of the war in Ukraine (Russia's invasion of Ukraine), 16 member countries have made 20 requests for financing totaling about 87.2 billion.", "The $650 billion SDR allocation from about a year ago remains part of IMF support efforts.", "The Resilience and Sustainability Trust (RST) is expected to begin with an initial capital of about $45 billion; the IMF is very close to that and expects to operationalize the RST around the Annual Meetings.", "The IMF has begun discussions with its Executive Board on a potential new emergency financing instrument, the \"food shock window\"; its use would be contingent on Board approval and, if approved, is intended to provide immediate short-term support in the ballpark of prior emergency support (referenced as similar to the prior $1.4 billion emergency financing for Ukraine).", "Immediate/emergency support:", "Path to a full-fledged program:", "Administered Account for Ukraine:", "July World Economic Outlook (as cited):", "Recent developments worsening the outlook:", "Inflation and policy stance:", "Recession risk characterization:", "Humanitarian/economic impact example:", "Argentina:", "Zambia:", "Ghana:", "Suriname:", "Malawi:", "Serbia:", "Lebanon:", "Ethiopia:", "Egypt:", "IMF role and approach:", "Transparency and accountability:", "Annual Meetings and forecasts:", "RST operationalization:", "Missions and near-term travel:", "[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)" ], "alternates": { "markdown": "/en/news/articles/2022/09/16/tr091522-com-press-briefing/index.md", "json": "/en/news/articles/2022/09/16/tr091522-com-press-briefing/index.json", "bundleManifest": "/en/news/articles/2022/09/16/tr091522-com-press-briefing/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T01:30:19.024Z" }