{ "title": "Transcript of IMF Press Briefing", "publication": "IMF News, June 6, 2024", "sourceUrl": "https://www.imf.org/en/news/articles/2024/06/06/tr060624-transcript-of-com-regular-presser", "canonical": "https://www.imf.org/en/news/articles/2024/06/06/tr060624-transcript-of-com-regular-presser", "overlayPath": "/en/news/articles/2024/06/06/tr060624-transcript-of-com-regular-presser/index.md", "summary": "Good morning, everyone, both to those of you here with us in person and those joining us online, welcome to this IMF Press Briefing. I am Julie Kozack, Director of the Communications Department. As usual, this briefing is embargoed until 11:00 a.m. Eastern Time in the U.S.", "publishDate": "2024-06-06", "sections": [ { "heading": "Announcements, logistics, and contacts", "content": "- Transcript date: June 6, 2024.\n- Briefing embargo: embargoed until 11:00 a.m. Eastern Time in the U.S.\n- Press contacts:\n - PRESS OFFICER: Tatiana Mossot\n - Phone: +1 202 623-7100Email: MEDIA@IMF.org\n - @IMFSpokesperson\n- Upcoming Managing Director engagements:\n - June 14th: G7 Leaders' Summit in Apulia, Italy.\n - June 19th: Lujiazui Forum in Shanghai, China.\n - June 20th: Eurogroup meeting in Luxembourg; press conference to present findings of the annual consultation on the euro area's economic policies (annual consultation equivalent to Article IV consultation).\n - June 24th: hybrid press conference on the conclusion of the 2024 U.S. Article IV Consultation.\n- Deputy Managing Directors travel:\n - Kenji Okamura: currently in Tokyo for the 9th Tokyo Fiscal Forum and the Fiscal Policy and Sovereign Debt Conference.\n - Li Bo: traveling June 24th to July 5th to China, Tajikistan, and Cote d'Ivoire; June 26th speaking at the World Economic Forum annual Meeting of the New Champions in Dalian, China; participating in discussions on climate change and digitalization; constituency meeting in Tajikistan." }, { "heading": "U.S. and euro-area monetary policy and outlook", "content": "- U.S. assessment and policy guidance:\n - U.S. economy: described as \"remarkably resilient\" despite shocks and the sharp tightening of monetary policy from 2022 to 2023.\n - First quarter activity: \"slowed\" but domestic demand \"remained strong.\"\n - Inflation: \"overall higher than we would like to see\" through the first quarter; \"bumps on the road\" anticipated as inflation returns to target.\n - Policy guidance: Fed should be \"cautious and data dependent\"; policy restraint is expected to slow U.S. growth in 2024.\n - Expectation: \"there does need to be some slowing of the U.S economy in 2024.\"\n - U.S. Article IV Consultation: Staff Report and Managing Director will cover issues in more detail at the press conference later this month.\n- Euro area / ECB:\n - Assessment: \"significant progress in reducing inflation in Europe.\"\n - IMF view: \"ECB policy is appropriate\"; IMF \"did think that it was appropriate for the ECB to begin cutting in June.\"\n - Recommendation: ECB should maintain a \"data dependent\" and \"meeting-by-meeting\" approach." }, { "heading": "Ukraine: program, review, debt restructuring, and reforms", "content": "- Program status:\n - On May 31st, IMF staff and Ukrainian authorities reached staff-level agreement for the fourth review of the four-year EFF Arrangement (subject to Executive Board approval).\n - Conditional disbursement upon Board approval: access to a disbursement of $2.2 billion.\n - Performance: \"all quantitative performance criteria met,\" one structural benchmark met, another implemented with a short delay.\n - Economy: \"resilient growth and disinflation through the first quarter of 2024\"; \"risks to growth are very high and they're rising.\"\n - Executive Board timing: \"we do expect our Executive Board to consider Ukraine's review in the coming weeks.\"\n- Debt restructuring and IMF role:\n - Discussions between Ukraine and creditors (bondholders/external creditors) are \"on track\" and ongoing.\n - IMF role: define targets for the debt treatment consistent with the EFF program; these targets will appear in the Debt Sustainability Analysis (DSA) published with the Staff Report.\n - Purpose: debt treatment needed to bring public debt and gross financing needs to sustainable levels.\n- Reforms highlighted:\n - Authorities plan to complete the external audit of NABU (the National Bank of Ukraine) and to amend the criminal procedure code in the autumn of this year.\n - Authorities plan to enact a law to establish a new high administrative court planned for the end of this year." }, { "heading": "Country updates and program notes", "content": "- South Africa:\n - Past growth: declined from 1.9 percent in 2022 to 0.6 percent in 2023.\n - IMF projections (World Economic Outlook, April):\n - 2024: 0.9 percent.\n - 2025: 1.2 percent.\n - Medium-term growth: 1.4 percent.\n - Inflation: returned to within the South African Reserve Bank's 3 percent to 6 percent target range in 2023 following decisive policy tightening.\n - Key policy priorities recommended:\n - Remove bottlenecks via an ambitious structural reform agenda.\n - Put public debt on a sustained downward path through fiscal consolidation.\n - Continue to manage the return of inflation to target while safeguarding financial stability.\n - Political context: ANC lost majority; IMF looks forward to constructive engagement with a new government.\n- Cameroon:\n - Staff-level agreements reached on May 31st for the 6th reviews of Cameroon's ECF/EFF (blend) and the first review of the Resilience and Sustainability Facility.\n - Challenges: persistent public financial management weaknesses; substantial extra-budgetary expenditure in 2023 led to overruns and a missed target on the non-oil primary fiscal deficit by a small margin.\n - Authorities intend to introduce a revised 2024 budget to limit expenditures executed through treasury advances and adopt a plan to clear domestic arrears.\n - IMF concern: spending overruns constrain resources for pro-growth investment and underscore need to strengthen budget integrity and execution.\n- Mozambique:\n - Recent mission: early May to discuss the fourth review of the ECF; discussions continuing virtually.\n - Growth outlook: projected at 4.3 percent in 2024.\n - Fiscal pressures: overruns in the wage bill in 2022 and 2023; authorities adopted corrective measures but need to rationalize wage bill spending to underpin fiscal consolidation.\n - LNG projects: medium-term outlook for the extractive sector is strong as large LNG projects expected to resume; IMF does not envisage debt servicing issues if fiscal discipline is maintained.\n- Zimbabwe:\n - Article IV mission: staff expected to conduct the Article IV Consultation mission later this month.\n - Currency developments: introduction of a new currency, the ZIG, backed by a basket of foreign currencies and other assets, mainly gold.\n - IMF stance: stands ready to discuss and support efforts to restore macroeconomic stability.\n- Pakistan:\n - Staff visit: May 13th through 23rd; \"significant progress\" toward a staff-level agreement on a homegrown program supported under a new EFF; discussions continuing virtually.\n - Specific operational details: IMF to respond bilaterally; no additional public detail provided at the briefing.\n - Question on asset disclosure portal: IMF did not provide a definitive public answer at the briefing and indicated will follow up.\n- Ghana:\n - Staff-level agreement reached on April 13th for economic policies and reforms for the second review.\n - Board timing: aim to bring the second review to the IMF's Executive Board for approval before the end of June.\n - Financing access: Board approval would give Ghana access to $360 million, bringing total disbursements since May 2023 to about 1.6 billion.\n - Debt restructuring progress:\n - Domestic debt exchange completed last year.\n - January 2024: agreement in principle with official bilateral creditors.\n - Engagement ongoing with external private creditors.\n - DSA and publication: IMF updates projections and the Debt Sustainability Analysis at each review; the latest DSA will be published with the Staff Report after the Board considers the second review.\n - Policy advice: steadfast policy and reform implementation to fully restore macroeconomic stability and debt sustainability.\n- Sri Lanka:\n - Staff-level agreement: March 21st — staff-level agreement on economic policies to conclude the second review and the 2024 Article IV Consultation.\n - Executive Board meeting: scheduled for June 12th to discuss the second review and the Article IV Consultation.\n - Program performance: strong — rapid disinflation, robust reserve accumulation, initial signs of economic growth; most quantitative and structural conditionality met or implemented with delay.\n - Debt restructuring status:\n - Domestic debt operations largely completed.\n - Ongoing: conclude negotiations with external commercial creditors and implement agreements in principle with official creditors.\n - Authorities holding extensive discussions with external official creditors regarding an MOU; discussions with external bondholders continue; negotiations with China Development Bank at an advanced stage.\n - IMF assessment: \"sufficiently strong progress\" on debt restructuring front.\n- Argentina:\n - Staff-level agreement: May 13th reached on the eighth review of the EFF program (subject to Executive Board approval).\n - Access upon approval: about $800 million U.S. dollars.\n - Program status: \"all key program targets were met with wide margins.\"\n - Policy priorities highlighted:\n - Improve quality of fiscal consolidation to ensure durability and fairness while protecting the most vulnerable.\n - Monetary and FX policy to evolve to anchor inflation and safeguard reserve accumulation and market stability.\n - Micro-level reforms to unlock entry barriers, promote formal employment, and attract private investment.\n - Broaden political support for macroeconomic stabilization and reform.\n - Social policy: IMF emphasizes scaling up social assistance to support the poor and improve governance and targeting of social programs; protect the real value of pensions while preserving fiscal targets.\n - Board timing: Board meeting expected \"soon\"; press release and Staff Report to follow as customary.\n- Albania:\n - Ongoing legal investigation into alleged consumer protection abuses by distressed debt managers (DDMs): IMF will not comment on active legal investigations.\n - Historical context: IMF-supported program reviews in 2015 and 2016 identified high levels of non-performing loans; IMF endorsed 2015 action plan to reduce NPLs and supported Bank of Albania mandate to license and supervise DDMs.\n - IMF note: maintaining independence of the Bank of Albania is key to safeguarding price and financial stability." }, { "heading": "Debt, SDRs, and MDB hybrid capital channeling", "content": "- SDR channeling decision:\n - IMF Executive Board authorized use of SDRs for acquisition of hybrid capital instruments issued by prescribed holders of SDRs (prescribed holders include MDBs).\n - Universal limit set: 15 billion SDRs, which is about 20 billion U.S. dollars, for acquisition of hybrid capital instruments.\n- Operational status:\n - Some MDBs (e.g., African Development Bank, Inter-American Development Bank) have developed proposals to issue hybrid capital instruments in exchange for SDRs.\n - No prescribed holder has yet issued hybrid capital instruments under the newly authorized use of SDRs.\n - IMF role: decision makes such use permissible; the ultimate decision rests with each member country and the IMF is not part of country–MDB subscription discussions.\n- Specific figure referenced in briefing: AfDB channeling figure of $20 billion U.S. dollars discussed in context of the 15 billion SDRs limit (about 20 billion U.S. dollars)." }, { "heading": "Russia assets and legal/financial system considerations", "content": "- IMF position reiterated:\n - Any actions taken regarding Russian assets should have \"sufficient legal underpinnings\" and should not \"undermine the functioning of the International Monetary System.\"\n - Position is public and unchanged." }, { "heading": "Global fiscal advice and elections", "content": "- Global context:\n - Global outlook improved somewhat; inflation declining; April assessment: risks to global outlook balanced.\n - Nonetheless, many countries face high debt levels, high fiscal deficits, high interest rates, and weak medium-term growth prospects.\n- IMF fiscal recommendation:\n - \"This is the time for countries to really begin fiscal consolidation\" and to bring fiscal positions back to pre-pandemic levels.\n - Advice applies in election years as well: countries should rebuild fiscal buffers decisively to safeguard public finances.\n\nTranscript of IMF Press Briefing, June 6, 2024. IM F Communications Department. Media relations: PRESS OFFICER: Tatiana Mossot. Phone: +1 202 623-7100Email: MEDIA@IMF.org.\n\n---\n\n\n References\n\n- Albania and the IMF\n- Argentina and the IMF\n- Cameroon and the IMF\n- Ghana and the IMF\n- Pakistan and the IMF\n- Republic of Mozambique and the IMF\n- South Africa and the IMF\n- Sri Lanka and the IMF\n- Zimbabwe and the IMF\n- Transcripts\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2024/06/06/tr060624-transcript-of-com-regular-presser" } ], "bullets": [ "[Markdown version](/en/news/articles/2024/06/06/tr060624-transcript-of-com-regular-presser/index.md)", "[Structured JSON version](/en/news/articles/2024/06/06/tr060624-transcript-of-com-regular-presser/index.json)", "[Bundle manifest](/en/news/articles/2024/06/06/tr060624-transcript-of-com-regular-presser/bundle-manifest.json)", "Published: June 6, 2024", "Transcript date: June 6, 2024.", "Briefing embargo: embargoed until 11:00 a.m. Eastern Time in the U.S.", "Press contacts:", "Upcoming Managing Director engagements:", "Deputy Managing Directors travel:", "U.S. assessment and policy guidance:", "Euro area / ECB:", "Program status:", "Debt restructuring and IMF role:", "Reforms highlighted:", "South Africa:", "Cameroon:", "Mozambique:", "Zimbabwe:", "Pakistan:", "Ghana:", "Sri Lanka:", "Argentina:", "Albania:", "SDR channeling decision:", "Operational status:", "Specific figure referenced in briefing: AfDB channeling figure of $20 billion U.S. dollars discussed in context of the 15 billion SDRs limit (about 20 billion U.S. dollars).", "IMF position reiterated:", "Global context:", "IMF fiscal recommendation:", "[Albania and the IMF](http://www.imf.org/external/country/alb/index.htm)", "[Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm)", "[Cameroon and the IMF](http://www.imf.org/external/country/CMR/index.htm)", "[Ghana and the IMF](http://www.imf.org/external/country/GHA/index.htm)", "[Pakistan and the IMF](http://www.imf.org/external/country/PAK/index.htm)", "[Republic of Mozambique and the IMF](http://www.imf.org/external/country/MOZ/index.htm)", "[South Africa and the IMF](http://www.imf.org/external/country/ZAF/index.htm)", "[Sri Lanka and the IMF](http://www.imf.org/external/country/LKA/index.htm)", "[Zimbabwe and the IMF](http://www.imf.org/external/country/ZWE/index.htm)", "[Transcripts](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2024/06/06/tr060624-transcript-of-com-regular-presser/index.md", "json": "/en/news/articles/2024/06/06/tr060624-transcript-of-com-regular-presser/index.json", "bundleManifest": "/en/news/articles/2024/06/06/tr060624-transcript-of-com-regular-presser/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T03:04:14.473Z" }