{ "title": "Transcript of IMF Press Briefing", "publication": "IMF News, July 13, 2023", "sourceUrl": "https://www.imf.org/en/news/articles/2023/07/13/tr071323-transcript-of-imf-press-briefing", "canonical": "https://www.imf.org/en/news/articles/2023/07/13/tr071323-transcript-of-imf-press-briefing", "overlayPath": "/en/news/articles/2023/07/13/tr071323-transcript-of-imf-press-briefing/index.md", "summary": "Press Briefing by Julie Kozack, Director, Communications Department – July 13, 2023 at 9:30 a.m.", "publishDate": "2023-07-13", "sections": [ { "heading": "Announcements and upcoming IMF releases", "content": "- Press briefing by Julie Kozack, Director, Communications Department – July 13, 2023 at 9:30 a.m. (briefing embargoed until 11am eastern time).\n- Travel: Managing Director and the first Managing Director to travel to India on July 17 th and 18th to attend the G20 Finance Ministers and Central Bank Governors meeting.\n- Documents and releases:\n - Managing Director’s blog on the G20 and the G20 surveillance note released the morning of the briefing.\n - External Sector Report (ESR) to be released on Wednesday, July 19th.\n - World Economic Outlook Update to be published on Tuesday, July 25th at 9AM local time, eastern time; IMF Chief Economist and Economic Counsellor, Pierre Olivier Goren Shaw, to hold a hybrid press briefing.\n- 2023 Annual Meetings: October 9-15 in Marrakesh Morocco; journalist registration open at IMFconnect.org with advised registration before September 28th.\n- IMF Executive Board recess: July 31st until August 11th.\n\nPress officer: Ting Yan — Phone: +1 202 623-7100 — Email: MEDIA@IMF.org — @IMFSpokesperson" }, { "heading": "Global trade fragmentation and U.S.–China export controls", "content": "- IMF view:\n - Welcomes recent meetings between Secretary Yellen and top Chinese officials.\n - Urges major trading partners to work together to address core issues that risk fragmenting the global trade and investment system.\n- Estimated cost of full or runaway trade fragmentation:\n - Could cost the global economy, seven percent of GDP.\n- Policy implication:\n - Continued bilateral and multilateral engagement to forge ties, build common ground, and foster cooperation is vital to global investment and growth." }, { "heading": "Argentina — negotiations, RMB payments, and fifth review", "content": "- Status of negotiations:\n - IMF teams are working intensively with Argentine authorities to make progress toward completion of the fifth review.\n - Focus: alternatives to strengthen the authorities' program, enhance reserve accumulation, improve fiscal sustainability, and protect the most vulnerable.\n - Discussions are frequent; details withheld while teams continue to negotiate.\n- Letter allegation:\n - IMF understanding is that there is no such letter from Director Zhang to the Board or Managing Director regarding China-Central Bank swaps to pay the IMF.\n- Payments in RMB:\n - IMF general practice is not to comment on specific transactions of a member country.\n - Argentine authorities remain current on their financial obligations to the IMF.\n - The RMB is one of the five freely usable currencies that members can and have used to settle obligations with the IMF.\n- Timing:\n - Teams aim to make progress and complete the fifth review with a view to advancing the program; feasibility of completing before Board recess reiterated but no firm timing commitment provided." }, { "heading": "Inflation outlook and monetary policy guidance", "content": "- United States observations:\n - Headline inflation is declining but remains above target.\n - Core inflation has remained sticky and above target.\n - Goods price inflation moderating; shelter price inflation expected to decline in coming months; non-shelter services inflation not yet on a clear downward trajectory.\n- Global pattern:\n - Declines in energy prices are helping reduce headline inflation globally, but core inflation remains sticky in many countries.\n- IMF policy advice:\n - Central banks should stay the course on monetary policy until a durable reduction in inflation is achieved." }, { "heading": "Ukraine — EFF review, disbursement, and asset-declaration benchmark", "content": "- Recent Board action and funding:\n - On June 29 th, IMF Executive Board completed the first review of the EFF for Ukraine, allowing draw of the equivalent of 890 million U.S. dollars for budget support.\n - EFF approved in March 2023 as part of a total package of support for Ukraine of 115 billion U.S dollars.\n- Program performance:\n - All quantitative and structural benchmarks through end-April and June were met, enabling first review completion.\n - Ukrainian economy showing remarkable resilience; gradual economic recovery expected in 2023, but outlook highly uncertain due to war-related uncertainty.\n- Asset declaration law:\n - IMF staff consulted with the Ministry of Justice and stakeholders to develop an asset declaration draft law consistent with memorandum commitments.\n - Any enhancements during martial law must not reduce overall effectiveness or deviate from obligations to submit truthful, complete, and accurate declarations.\n - Timely enactment will help mitigate risks and promote public trust and donor confidence.\n- Next review:\n - IMF expects the next review later this year; further draw arrangements timing/amount not specified in the briefing." }, { "heading": "Russia — outlook and medium-term impact of the war", "content": "- 2023 projection referenced:\n - Last IMF forecast had growth in the positive range of 0.7 percent for 2023.\n- Medium-term expectations:\n - Over the medium term, output in Russia expected to be 7 percent lower than the pre-war forecast due to departure of multinationals, loss of human capital, disconnection from global financial markets, and reduced policy buffers.\n- Upcoming update:\n - Update of Russian growth forecast to be published in the context of the WEO update later in the month." }, { "heading": "Global debt landscape and policy guidance", "content": "- Global trend:\n - Increase in debt levels globally since the pandemic; many low-income and vulnerable countries at or near debt distress.\n- IMF policy guidance:\n - Fiscal policy should prudently support the fight against inflation while rebuilding buffers and ensuring sustainability.\n- Debt restructuring and creditor coordination:\n - G20 Common Framework delivering on cases (e.g., Chad, Ghana, Zambia) and debt restructuring proceeding also outside the Common Framework (e.g., Sri Lanka).\n - Need for debt restructuring processes to be accelerated, predictable, timely, and to provide breathing space through debt suspension during negotiations.\n- Global Sovereign Debt Roundtable (GSDR) activities and outcomes:\n - IMF, World Bank, and India (G20 Chair) initiated the GSDR.\n - First meeting in February brought together Paris Club, non‑Paris Club official creditors (e.g., China, India, Saudi Arabia), private creditors, and debtor countries.\n - April 12th meeting produced tangible progress on information sharing, clarity on MDB roles in net positive financing flows, and work on comparability of treatment.\n - Technical group meeting: June 9th (cutoff dates and state-contingent instruments).\n - Workshop on comparability of treatment: June 15th.\n - GSDR deputies met on June 30th.\n - Workshop on domestic debt restructuring scheduled for September under GSDR aegis.\n - Next meeting of principals scheduled during the Annual Meetings in Marrakesh in October.\n- Expectation:\n - Debt and restructuring processes likely to be discussed at the G20 meetings." }, { "heading": "Pakistan — new 9‑month Standby Arrangement (SBA)", "content": "- Executive Board approval:\n - On July 12th, Executive Board approved a 9-month standby arrangement for Pakistan in the amount of 3 billion .US. dollars.\n - Immediate disbursement reached about 1.2 billion U.S. dollars.\n- Program aim:\n - Support the authorities' economic stabilization program, protect the most vulnerable, and provide a framework for financing from multilateral and bilateral partners.\n- Rationale for short duration:\n - SBA intended to fill current balance of payments needs and provide time for Pakistan to implement policies critical to strengthening domestic and external positions.\n - Structural challenges will likely require continued reforms over the medium term.\n- IMF commitment:\n - IMF stands ready to work with Pakistan on restoring sustainability and economic stability.\n- Follow-up on financing commitments:\n - IMF to follow up bilaterally on questions regarding any new financing commitments requested of Pakistan." }, { "heading": "China — growth and inflation signals; Zambia debt restructuring", "content": "- China growth and inflation:\n - April WEO projection: growth in China of 5.2 percent for 2023.\n - Growth reflected strong first quarter after reopening but anticipated to slow over the course of the year.\n - Recent slowing momentum due largely to weaker-than-expected private investment and slower exports after strong Q1 performance.\n - Observed subdued inflation in China reflecting weak demand, slack in the economy, and declining energy prices.\n - Forecast to be updated in the upcoming WEO.\n- Zambia debt treatment and IMF program:\n - Background: August 2022 IMF Board approved a 1.3-billion-dollar ECF arrangement for Zambia.\n - April 6th, 2023: staff-level agreement for completing the first review announced.\n - June 22nd: agreement with the official creditor committee on debt treatment reached, providing sufficient financing assurances and clearing a final hurdle for IMF Board consideration.\n - IMF Board meeting on Zambia occurring on the day of the briefing; further details to be communicated after the meeting." }, { "heading": "Mozambique — ECF support and program review", "content": "- Program details:\n - Mozambique receiving Fund support through an ECF arrangement for about $456 million.\n - Arrangement approved in May 2022.\n- Recent action:\n - Second review completed on July 6th.\n - Executive Board noted program performance was broadly favorable; authorities took substantive actions to address macroeconomic challenges and keep the program on track.\n- Policy measures taken:\n - Fiscal: measures to reduce the wage bill and align fiscal outlook with program targets.\n - Monetary: Central Bank actions to contain inflationary pressures and reduce drains on FX reserves.\n- IMF engagement:\n - Team continues to engage closely with authorities on their economic plan." }, { "heading": "Senegal and Nigeria — program updates and policy priorities", "content": "- Nigeria:\n - Most recent Article IV consultation concluded on February 6, 2023.\n - IMF staff engaging with the transition team on IMF policy recommendations.\n - IMF welcomes removal of fuel subsidies and unification of exchange rate regime.\n - Policy priorities: well-targeted social spending to protect the vulnerable; revenue mobilization through tax administration reforms; fiscal and monetary tightening to prevent further inflation escalation; reduce Central Bank financing of government deficits.\n - IMF expects inflation to increase in coming months in Nigeria.\n- Senegal:\n - On June 26th, 2023, Executive Board approved an ECF/EFF blend in the amount of $1.5 billion US.\n - Program objectives: address protracted balance of payments challenges and macroeconomic imbalances.\n - Policy priorities: reduce debt vulnerabilities via fiscal consolidation, strengthen public sector governance and AML/CFT, foster inclusive private-sector-led growth.\n - Emphasis on revenue mobilization and phasing out energy subsidies while protecting the vulnerable.\n - Executive Board also approved a $324-million resilience and sustainability facility to support climate mitigation, adaptation, and integration of climate considerations into the budget." }, { "heading": "Egypt — EFF first review and divestment steps", "content": "- IMF program:\n - On December 16, 2022, IMF Executive Board approved an EFF of about $3 billion US for Egypt.\n - Program aims: address vulnerabilities, restore buffers, strengthen social safety nets, and promote sustainable, inclusive growth and job creation.\n- Steps toward first review completion:\n - IMF engaged with authorities on divestment strategy, competitive neutrality, and a move toward a flexible exchange rate to alleviate FX shortages.\n - Recent announcement: Egyptian authorities signed contracts to sell equity stakes in state-owned entities worth $1.9 billion US.\n - Divestment is a critical component of the EFF-supported program to withdraw the state from economic activity and provide resources for external financing and debt reduction." }, { "heading": "G20 presidency (India) priorities and IMF role", "content": "- India’s G20 presidency theme: one earth, one family, one future.\n- Key priorities highlighted:\n - Enhancing financing for global public goods.\n - Strengthening macroeconomic coordination across debt, MDB reform, and digitalization.\n- India’s contributions:\n - Co-chairing the GSDR and facilitating progress on debt vulnerabilities and implementation of the common framework.\n - Showcasing digital public infrastructure and advancing understanding of opportunities/risks of digitalization, including macro‑financial implications of crypto assets.\n- IMF engagement:\n - Looking forward to advancing G20 priorities at July G20 meetings and the Leaders’ Summit in September." }, { "heading": "BRICS currency, reserve composition, and IMF stance", "content": "- IMF position:\n - Decisions on currencies used in trade are for transaction participants.\n - No specific comment on a BRICS currency absent a concrete proposal.\n- Reserve currency trend:\n - U.S. dollar share in global foreign reserves declined from around 70 percent at end 1999, to around 58 percent at end 2022.\n- Observation:\n - Shifts in currency composition of reserves and trade are historically slow moving." }, { "heading": "Kenya, IMF reforms, and crypto assets", "content": "- Kenya:\n - IMF monitoring protests and saddened by reports of violence; hopes for peaceful resolution.\n - Board meeting planned for next week with further details to be provided then.\n- IMF reforms and resource priorities (high-level):\n - Three areas highlighted in the Managing Director’s blog:\n - Prompt and successful completion of the 16th Quota Review to increase IMF resources.\n - Replenishment of concessional resources: Poverty Reduction and Growth Trust (PRGT) and Catastrophe Containment and Relief Trust (CCRT).\n - Exploring reforms to the lending toolkit (including precautionary instruments) and better accounting for climate impacts in debt sustainability and support for climate shocks.\n- Crypto assets:\n - IMF does not see crypto assets as an appropriate legal tender.\n - Crypto assets are considered in the IMF view as investments needing well-designed regulation and consumer protection." }, { "heading": "Africa — Ghana, Ethiopia, Malawi snapshots", "content": "- Ghana:\n - IMF Board approved a three-year, $3 billion ECF arrangement in May 2023.\n - Immediate disbursement: six hundred million, U.S. dollars.\n - Remaining disbursements expected in tranches every six months following program reviews.\n - Program objectives: restore macro stability, ensure debt sustainability, and lay foundations for higher inclusive growth.\n - Next steps: official creditor committee to agree on modalities of debt relief and authorities to engage external private creditors; domestic debt restructuring being finalized.\n - A staff team visited Accra June 8th–15th; formal first review mission to take place in the fall.\n- Ethiopia:\n - Hit by multiple shocks: six consecutive years of drought, the pandemic, domestic conflict, and impacts from Russia’s war in Ukraine.\n - Challenges: food insecurity, humanitarian needs, post-conflict reconstruction, high inflation, FX shortages.\n - IMF received a request for financial assistance to support the NEIMF Program; discussions ongoing on policies and reforms.\n - A new program would require clear commitments from development partners and financing assurances from creditors under the G20 common framework.\n- Malawi:\n - No specific updates provided in the briefing; IMF to follow up bilaterally on Malawi creditor negotiations and status." }, { "heading": "Closing remarks and follow-up", "content": "- Transcript to be made available on IMF.org.\n- For clarifications or bilateral questions, media encouraged to contact MEDIA@IMF.org.\n- Briefing closed with seasonal well-wishes and notification that next briefing date will be communicated.\n\nTranscript of IMF Press Briefing — July 13, 2023 — IMF Communications Department\n\n---\n\n\n References\n\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/07/13/tr071323-transcript-of-imf-press-briefing" } ], "bullets": [ "[Markdown version](/en/news/articles/2023/07/13/tr071323-transcript-of-imf-press-briefing/index.md)", "[Structured JSON version](/en/news/articles/2023/07/13/tr071323-transcript-of-imf-press-briefing/index.json)", "[Bundle manifest](/en/news/articles/2023/07/13/tr071323-transcript-of-imf-press-briefing/bundle-manifest.json)", "Published: July 13, 2023", "Press briefing by Julie Kozack, Director, Communications Department – July 13, 2023 at 9:30 a.m. (briefing embargoed until 11am eastern time).", "Travel: Managing Director and the first Managing Director to travel to India on July 17 th and 18th to attend the G20 Finance Ministers and Central Bank Governors meeting.", "Documents and releases:", "2023 Annual Meetings: October 9-15 in Marrakesh Morocco; journalist registration open at IMFconnect.org with advised registration before September 28th.", "IMF Executive Board recess: July 31st until August 11th.", "IMF view:", "Estimated cost of full or runaway trade fragmentation:", "Policy implication:", "Status of negotiations:", "Letter allegation:", "Payments in RMB:", "Timing:", "United States observations:", "Global pattern:", "IMF policy advice:", "Recent Board action and funding:", "Program performance:", "Asset declaration law:", "Next review:", "2023 projection referenced:", "Medium-term expectations:", "Upcoming update:", "Global trend:", "IMF policy guidance:", "Debt restructuring and creditor coordination:", "Global Sovereign Debt Roundtable (GSDR) activities and outcomes:", "Expectation:", "Executive Board approval:", "Program aim:", "Rationale for short duration:", "IMF commitment:", "Follow-up on financing commitments:", "China growth and inflation:", "Zambia debt treatment and IMF program:", "Program details:", "Recent action:", "Policy measures taken:", "IMF engagement:", "Nigeria:", "Senegal:", "IMF program:", "Steps toward first review completion:", "India’s G20 presidency theme: one earth, one family, one future.", "Key priorities highlighted:", "India’s contributions:", "IMF engagement:", "IMF position:", "Reserve currency trend:", "Observation:", "Kenya:", "IMF reforms and resource priorities (high-level):", "Crypto assets:", "Ghana:", "Ethiopia:", "Malawi:", "Transcript to be made available on IMF.org.", "For clarifications or bilateral questions, media encouraged to contact MEDIA@IMF.org.", "Briefing closed with seasonal well-wishes and notification that next briefing date will be communicated.", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2023/07/13/tr071323-transcript-of-imf-press-briefing/index.md", "json": "/en/news/articles/2023/07/13/tr071323-transcript-of-imf-press-briefing/index.json", "bundleManifest": "/en/news/articles/2023/07/13/tr071323-transcript-of-imf-press-briefing/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T02:15:36.254Z" }