{ "title": "Transcript of IMF Press Briefing", "publication": "IMF News, March 7, 2024", "sourceUrl": "https://www.imf.org/en/news/articles/2024/03/07/tr030724-transcript-of-imf-press-briefing", "canonical": "https://www.imf.org/en/news/articles/2024/03/07/tr030724-transcript-of-imf-press-briefing", "overlayPath": "/en/news/articles/2024/03/07/tr030724-transcript-of-imf-press-briefing/index.md", "summary": "Good morning to both those of us here in person and those joining us online. Welcome to the IMF press briefing. I'm Julie Kozak, Director of Communications. As usual, this briefing will be embargoed until 11:00 a.m. Eastern Time.", "publishDate": "2024-03-07", "sections": [ { "heading": "Announcements and Management Travel", "content": "- Briefing embargoed until 11:00 a.m. Eastern Time.\n- Managing Director Kristalina Georgieva:\n - March 11–12: travel to Bulgaria; meetings with authorities in Sofia.\n - March 14: speech at King's College, Cambridge, UK, part of “Conversations at King's”; speech will be live streamed on imf.org.\n - March 23–27: travel to Beijing, China; keynote speech at the China Development Forum in Beijing on March 24; discussions with authorities; First Deputy Managing Director Gita Gopinath to deliver a video speech on the global economic outlook at the Boao forum for Asia on March 27.\n- Deputy Managing Director Antoinette Sayeh:\n - March 13–14: travel to Uruguay (first visit); meetings with authorities, private sector, public engagements.\n- Deputy Managing Director Kenji Okamura:\n - April 3–6: travel to Lao PDR for the ASEAN Finance Ministers and Central Bank Governors Meeting; participation in panel forum “Making The Most of Opportunities in a Changing World”." }, { "heading": "Egypt: EFF Staff-Level Agreement and RSF Request", "content": "- Staff level agreement reached on comprehensive policies and reforms needed to complete the first and second reviews under the EFF arrangement.\n- Key policy commitments in the EFF staff-level agreement:\n - move to a flexible exchange rate system;\n - tightening of monetary and fiscal policies;\n - slowdown in large national infrastructure projects to reduce inflation and preserve debt sustainability while fostering private sector activity.\n- Authorities requested an augmentation of the original arrangement from $3 billion to $8 billion.\n- Authorities have requested an RSF; discussions between the IMF team and authorities will continue. The staff-level agreement reached yesterday was for the EFF, separate from the RSF.\n- Reference materials released: press release and FAQs (see IMF communications)." }, { "heading": "China: Ongoing Assessment of Policy Steps", "content": "- IMF staff is in the process of assessing policies announced under the two sessions.\n- The IMF welcomes the authorities' focus on high quality and sustainable growth and will review additional information from the authorities in the coming days." }, { "heading": "Quotas and Managing Director Selection Process", "content": "- Period for consent to the 16th Quota Review Increase set through November 15 of 2024; agreement concluded in December 2023.\n- IMF will provide periodic information on the status of consents when a critical mass develops.\n- Managing Director selection process is an institutional process laid out on the IMF website; decision about a second term is for the Managing Director herself." }, { "heading": "Ukraine: Board Timing and SOE Corporate Governance", "content": "- Board consideration of the latest EFF review expected in the second half of March.\n- Corporate governance law in Ukraine:\n - Described as a landmark law enhancing the role of supervisory boards and aligning legislation with OECD standards while respecting public financial management principles to contain fiscal risks.\n - Robust implementation seen as critical to improving SOE performance and forming the basis for further reforms, such as developing an SOE state ownership policy." }, { "heading": "Uganda, Nigeria, Senegal, Niger: Program Reviews and Findings", "content": "- Uganda:\n - Executive Board concluded the 5th review of Uganda's ECF arrangement, enabling disbursement of about $120 million.\n - Program aims: inclusive private sector led long term growth; strengthen governance; enhance monetary and financial sector frameworks; preserve debt sustainability; increase priority social spending.\n - Uganda met all structural benchmarks and all but one quantitative performance criterion under the completed review.\n - Post-Covid recovery continuing; inflation has come down following tight fiscal and monetary policy; monetary policy described as data dependent to bring core inflation back to the Central Bank's target.\n- Nigeria:\n - IMF team visited February 12–23 to discuss developments and policies; annual report being prepared; press release published with initial findings.\n - Immediate priorities: strengthen social protection to ease suffering from higher food, drug, and transportation prices.\n - Food price inflation reached 35% year over year in January.\n - Approved targeted social safety net program will provide cash transfers to vulnerable households; full implementation needed before addressing costly implicit fuel and electricity subsidies while protecting low income households.\n - Monetary Policy Committee decision last week to further tighten monetary policy expected to help contain inflation and naira pressures.\n- Senegal:\n - December 13, 2023: Executive Board completed the first review of a combined EFF, ECF, and RSF, providing access to about $280 million.\n - Authorities implementing structural reforms: strengthen revenue administration and public financial management; enhance governance; improve anticorruption frameworks; RSF reforms being steadily implemented.\n - Discussions on the second review and the Article IV consultation expected once the electoral process is completed and the new government is in place.\n- Niger:\n - IMF will follow up bilaterally with queries on Niger." }, { "heading": "Zambia: Drought Impact, Program Status, and Debt Restructuring", "content": "- 2023 GDP growth for Zambia estimated at 4% in 2023.\n- IMF team visited Lusaka February 14–22 to update on developments and start assessing drought impact.\n- Review mission tentatively scheduled for mid-April (after Spring Meetings) to provide full assessment of drought impact on growth and budget.\n- Preliminary assessment of drought:\n - crop losses appear significant;\n - increased imports of energy expected, leading to deterioration in the current account balance;\n - fiscal implications due to support needs for vulnerable populations, potentially increasing financing needs;\n - expected short-term adverse impact on the economy, with the team not expecting a persistent medium-term effect; limited impact on debt sustainability anticipated, subject to confirmation by mission.\n- Approval of the second review of the IMF-supported program in December 2023 gave Zambia access to about $187 million.\n- Debt restructuring:\n - Debt treatment reflected in the MoU with official creditors consistent with IMF program objectives and parameters.\n - Zambia pursuing policies consistent with restoring macroeconomic stability and growth and making good faith efforts to reach comparable terms with external private creditors." }, { "heading": "Ethiopia: Request for Financial Assistance and Ongoing Discussions", "content": "- Authorities requested financial assistance to address food insecurity, humanitarian needs, post-conflict reconstruction, high inflation, and to support a homegrown economic reform agenda.\n- October mission made good progress on how the IMF could support an economic program and reforms; discussions are ongoing.\n- Another mission to Addis Ababa expected in the coming weeks.\n- IMF is closely following violent incidents in Amhara and Oromia and notes U.S. concerns; hopes for peaceful resolution." }, { "heading": "Ghana: Program Progress, Disbursements, and Legislation Assessment", "content": "- January 19, 2024: Executive Board completed the first review of Ghana's IMF-supported program, giving access to an additional $600 million.\n- Total disbursements under the program so far: about $1.2 billion.\n- Program outcomes:\n - signs of economic stabilization emerging;\n - growth in 2023 more resilient than initially expected;\n - volatile inflation declining rapidly;\n - fiscal and external positions improved; exchange rate volatility declined.\n- Debt restructuring:\n - domestic debt exchange completed last year;\n - January 12: agreement in principle reached with official bilateral creditors;\n - engagement ongoing with private external creditors.\n- IMF team evaluating potential economic and financial implications of pending legislation (anti-LGBTQ+ law) and will continue monitoring; emphasis that diverse and inclusive economies flourish.\n- Next mission tentatively expected in April.\n- On safeguards for disbursed funds: authority’s strong policy and reform efforts and program implementation are emphasized as crucial to achieve intended outcomes." }, { "heading": "Pakistan: Stand-by Arrangement and Next Steps", "content": "- January 11: Executive Board approved the first review of the Stand-by Arrangement with Pakistan, bringing total disbursements under the Stand-by to about $1.9 million.\n- Program aims: stabilize the economy while protecting the most vulnerable.\n- During the caretaker government period:\n - economic stability maintained through strict adherence to fiscal targets while protecting the social safety net;\n - tight monetary policy stance maintained to control inflation;\n - timely tariff adjustments to shore up energy sector viability.\n- IMF ready to hold a mission for the second review shortly after a new cabinet is formed; current Stand-by program ends in April 2024." }, { "heading": "Global Sovereign Debt Roundtable (GSDR) and Restructuring Work", "content": "- IMF, World Bank, and G-20 engaged in the Global Sovereign Debt Roundtable (GSDR) and the common framework to address debt challenges in low income countries.\n- Work plan developed and agreed with GSDR deputies in December 2023 to map next phase:\n - support for countries with climate and debt vulnerabilities;\n - technical issues: non-resident holders of domestic debt in restructuring, treatment of state-owned enterprise debt, restructuring timelines and processes;\n - engagement with credit rating agencies on restructuring issues;\n - review lessons learned from first restructuring cases under the common framework.\n- Another meeting scheduled this month to deepen work on restructuring processes and timelines, including comparability of treatment; GSDR principals to meet during the Annual Meetings with an expected progress report." }, { "heading": "Argentina: EFF Implementation, Social Protection, and Evaluation", "content": "- January 31: seventh review of Argentina's EFF completed, enabling an immediate disbursement of $4.7 billion.\n- Stabilization plan aims to correct policy slippages in late 2023 and bring the program back on track by:\n - establishing a strong fiscal anchor;\n - policies to durably bring down inflation;\n - rebuild reserves;\n - tackle distortions and impediments to growth.\n- Emphasis on protecting the most vulnerable and preserving real value of pensions; sustained efforts needed to support vulnerable segments.\n- Disinflation process expected from fiscal consolidation, elimination of monetary financing, and improvements in monetary and FX policy frameworks; inflation is starting to decline.\n- On a potential “new program”: focus remains on supporting policies to restore macroeconomic stability; premature to discuss exact program modalities.\n- Independent Evaluation Office (IEO) is evaluating the IMF's Exceptional Access Policy; the 2018 Stand-by Arrangement with Argentina is among programs examined as part of that evaluation." }, { "heading": "United Kingdom: Spring Budget Response", "content": "- Managing Director had a call with U.K. Chancellor Hunt regarding the spring budget.\n- IMF view:\n - aim to continue fiscal consolidation (pursued since November 2022) to reduce inflation and stabilize debt is welcome.\n - main tax cut: further 2 percentage point reduction in the National Insurance contribution rate and reform of the child benefit regime, aimed at incentivizing work.\n - measures partly funded from revenue raising measures; slight increase in public sector investment noted.\n - 2024 Article IV Consultation in May will be an opportunity to discuss spending, revenue raising, investment, and debt stabilization." }, { "heading": "Ecuador: Request to Begin Discussions on a Potential EFF Program", "content": "- Ecuadorian authorities officially requested to begin discussions on a potential new program a few weeks ago.\n- IMF staff actively engaging to assess the economic situation and support reforms.\n- Recent violence coincides with a challenging macroeconomic and fiscal outlook; IMF closely following developments and hopes security situation improves.\n- IMF will provide more information as talks progress.\n\nTranscript of IMF Press Briefing — March 7, 2024 — 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/2024/03/07/tr030724-transcript-of-imf-press-briefing" } ], "bullets": [ "[Markdown version](/en/news/articles/2024/03/07/tr030724-transcript-of-imf-press-briefing/index.md)", "[Structured JSON version](/en/news/articles/2024/03/07/tr030724-transcript-of-imf-press-briefing/index.json)", "[Bundle manifest](/en/news/articles/2024/03/07/tr030724-transcript-of-imf-press-briefing/bundle-manifest.json)", "Published: March 7, 2024", "Briefing embargoed until 11:00 a.m. Eastern Time.", "Managing Director Kristalina Georgieva:", "Deputy Managing Director Antoinette Sayeh:", "Deputy Managing Director Kenji Okamura:", "Staff level agreement reached on comprehensive policies and reforms needed to complete the first and second reviews under the EFF arrangement.", "Key policy commitments in the EFF staff-level agreement:", "Authorities requested an augmentation of the original arrangement from $3 billion to $8 billion.", "Authorities have requested an RSF; discussions between the IMF team and authorities will continue. The staff-level agreement reached yesterday was for the EFF, separate from the RSF.", "Reference materials released: press release and FAQs (see IMF communications).", "IMF staff is in the process of assessing policies announced under the two sessions.", "The IMF welcomes the authorities' focus on high quality and sustainable growth and will review additional information from the authorities in the coming days.", "Period for consent to the 16th Quota Review Increase set through November 15 of 2024; agreement concluded in December 2023.", "IMF will provide periodic information on the status of consents when a critical mass develops.", "Managing Director selection process is an institutional process laid out on the IMF website; decision about a second term is for the Managing Director herself.", "Board consideration of the latest EFF review expected in the second half of March.", "Corporate governance law in Ukraine:", "Uganda:", "Nigeria:", "Senegal:", "Niger:", "2023 GDP growth for Zambia estimated at 4% in 2023.", "IMF team visited Lusaka February 14–22 to update on developments and start assessing drought impact.", "Review mission tentatively scheduled for mid-April (after Spring Meetings) to provide full assessment of drought impact on growth and budget.", "Preliminary assessment of drought:", "Approval of the second review of the IMF-supported program in December 2023 gave Zambia access to about $187 million.", "Debt restructuring:", "Authorities requested financial assistance to address food insecurity, humanitarian needs, post-conflict reconstruction, high inflation, and to support a homegrown economic reform agenda.", "October mission made good progress on how the IMF could support an economic program and reforms; discussions are ongoing.", "Another mission to Addis Ababa expected in the coming weeks.", "IMF is closely following violent incidents in Amhara and Oromia and notes U.S. concerns; hopes for peaceful resolution.", "January 19, 2024: Executive Board completed the first review of Ghana's IMF-supported program, giving access to an additional $600 million.", "Total disbursements under the program so far: about $1.2 billion.", "Program outcomes:", "Debt restructuring:", "IMF team evaluating potential economic and financial implications of pending legislation (anti-LGBTQ+ law) and will continue monitoring; emphasis that diverse and inclusive economies flourish.", "Next mission tentatively expected in April.", "On safeguards for disbursed funds: authority’s strong policy and reform efforts and program implementation are emphasized as crucial to achieve intended outcomes.", "January 11: Executive Board approved the first review of the Stand-by Arrangement with Pakistan, bringing total disbursements under the Stand-by to about $1.9 million.", "Program aims: stabilize the economy while protecting the most vulnerable.", "During the caretaker government period:", "IMF ready to hold a mission for the second review shortly after a new cabinet is formed; current Stand-by program ends in April 2024.", "IMF, World Bank, and G-20 engaged in the Global Sovereign Debt Roundtable (GSDR) and the common framework to address debt challenges in low income countries.", "Work plan developed and agreed with GSDR deputies in December 2023 to map next phase:", "Another meeting scheduled this month to deepen work on restructuring processes and timelines, including comparability of treatment; GSDR principals to meet during the Annual Meetings with an expected progress report.", "January 31: seventh review of Argentina's EFF completed, enabling an immediate disbursement of $4.7 billion.", "Stabilization plan aims to correct policy slippages in late 2023 and bring the program back on track by:", "Emphasis on protecting the most vulnerable and preserving real value of pensions; sustained efforts needed to support vulnerable segments.", "Disinflation process expected from fiscal consolidation, elimination of monetary financing, and improvements in monetary and FX policy frameworks; inflation is starting to decline.", "On a potential “new program”: focus remains on supporting policies to restore macroeconomic stability; premature to discuss exact program modalities.", "Independent Evaluation Office (IEO) is evaluating the IMF's Exceptional Access Policy; the 2018 Stand-by Arrangement with Argentina is among programs examined as part of that evaluation.", "Managing Director had a call with U.K. Chancellor Hunt regarding the spring budget.", "IMF view:", "Ecuadorian authorities officially requested to begin discussions on a potential new program a few weeks ago.", "IMF staff actively engaging to assess the economic situation and support reforms.", "Recent violence coincides with a challenging macroeconomic and fiscal outlook; IMF closely following developments and hopes security situation improves.", "IMF will provide more information as talks progress.", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2024/03/07/tr030724-transcript-of-imf-press-briefing/index.md", "json": "/en/news/articles/2024/03/07/tr030724-transcript-of-imf-press-briefing/index.json", "bundleManifest": "/en/news/articles/2024/03/07/tr030724-transcript-of-imf-press-briefing/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T02:48:39.871Z" }