## Press Briefing Transcript: Julie Kozack, Director, Communications Department, May 22, 2025

_IMF News, May 22, 2025_

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## Bibliographic details
- Published: May 22, 2025

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### Announcements and logistics
- Press briefing embargoed until 11:00 a.m. Eastern Time in the United States.
- Managing Director Kristalina Georgieva and First Deputy Managing Director Gita Gopinath attending the G7 Finance Ministers and Central Bank Governors meeting in Canada.
- May 29–30: Managing Director will travel to Dubrovnik, Croatia to attend a joint IMF Croatia National Bank Conference focused on promoting growth and resilience in Central, Eastern, and Southeastern Europe; will participate in opening panel and hold regional meetings.
- June 2: Managing Director will travel to Sofia, Bulgaria to attend the 30th Anniversary celebration of the National Trust Ecofund and hold bilateral meetings with Bulgarian authorities.
- Deputy Managing Director Nigel Clarke travel plans:
  - Launch of IMF's new regional training program for South America and Mexico in Asuncion, Paraguay on June 6.
  - Keynote speech in Brasilia on June 10 during the Annual Meeting of the Caribbean Development Bank.
  - Participation in the 2025 Consultative Group to Assist the Poor Symposium in the Netherlands on June 12–13.
- Deputy Managing Director Kenji Okamura to attend the 10th Tokyo Fiscal Forum in Japan on June 11–12.
- Article IV Consultation for the United States will be undertaken on a later timetable this year, with discussions to be held in November.
- Media relations contact provided: PRESS OFFICER: Meera Louis; Phone: +1 202 623-7100; Email: MEDIA@IMF.org.

### Ukraine: program status and financing
- Staff began policy discussions with Ukrainian authorities on the eighth review under the EFF; team is on the ground in Kiev and will provide an update at the end of the mission.
- Disbursement and program balance:
  - The seventh disbursement is referenced; the mission will provide exact size of the disbursement and remaining size of the program in the Staff report for the Seventh Review and bilaterally.
  - Based on documents published at the time of the Seventh Review, the Eighth Review disbursement would be about $520 million.
- Debt assessment:
  - At the time of the Seventh Review, IMF Staff assessed Ukraine's debt to be sustainable on a forward-looking basis.
  - The team will update its debt assessment as part of the eighth review discussions.

### Argentina: program progress and undeclared assets
- Program overview:
  - Executive Board approved a new four-year EFF arrangement for Argentina for $20 billion on April 11th, with an initial disbursement of $12 billion.
  - Program aims to support Argentina's transition to the next phase of stabilization and reforms.
- Noted developments and indicators:
  - Rollout of the new FX regime described as smooth.
  - Monthly inflation declined to 2.8 percent in April.
  - Fiscal results: a fiscal surplus in April and a cumulative fiscal surplus of 0.6 percent of GDP for the year.
  - Economy expanding, real wages recovering, and poverty continuing to fall.
- First Review and engagement:
  - IMF engagement continues ahead of the First Review, which will assess progress and consider policies to strengthen stability and growth.
  - Authorities committed to strengthening financial transparency and aligning Argentina's AML CFT framework with international standards, and to deregulating the economy to encourage formalization.
- Undeclared assets ("under the mattress"):
  - IMF is following developments very closely and the team will provide an assessment in due course.
  - Any measures aimed at encouraging use of undeclared assets should be consistent with commitments on financial transparency and AML CFT alignment.
- Visits:
  - Clarification: Deputy Managing Director Nigel Clarke (not the Managing Director) will travel to Paraguay and Brazil.

### Syria: engagement and data rebuilding
- IMF monitoring and support stance:
  - Staff preparing to support international community efforts to help Syria's economic rehabilitation as conditions allow.
  - Useful discussions held with the new Economic Team that took office in late March, including during the Spring Meetings.
  - IMF Staff held a roundtable during the Spring Meetings and have started rebuilding understanding of the Syrian economy through interactions with authorities and coordination with other IFIs.
  - Last substantive Article IV with Syria was in 2009.
- Defining data:
  - Rebuilding basic economic institutions is needed, including the ability to produce economic statistics, so IMF and partners can conduct economic analysis to support reconstruction and recovery.
- Sanctions:
  - Lifting of sanctions is a matter between member states; lifting could support Syria's efforts to overcome economic challenges and aid reconstruction.
  - Syria is an IMF member; IMF stands ready to provide advice and targeted technical assistance within its mandate.

### Russia: surveillance under sanctions and WEO projections
- Data sources and monitoring:
  - Staff analyzing data reported by Russian authorities, counterparty data provided by other countries (especially for cross-border transactions), and third-party sources to construct an economic picture.
- World Economic Outlook (April 2025) projections referenced:
  - Russia growth: 1.5 percent in 2025; 0.9 percent in 2026.
  - Russia inflation: 8.2 percent in 2025; 4.4 percent in 2026.
- No timetable provided for Article IV consultations.

### Deputy Managing Director Okamura’s visit to Japan (Tokyo Fiscal Forum)
- Visit timing: June 11–12 for the 10th Tokyo Fiscal Forum.
- Agenda focus:
  - Fiscal frameworks: importance of sound fiscal frameworks to implement sound fiscal policy.
  - GovTech in Japan and the Asia Pacific region: modernization of government services and potential efficiency gains in revenue collection and service provision.

### Pakistan: EFF review, safeguards, and Board decision-making
- Program and review chronology:
  - IMF Executive Board approved Pakistan's EFF program in September of 2024.
  - First review was planned for the first quarter of 2025.
  - IMF Staff and Pakistani authorities reached a Staff-Level Agreement on the First Review on March 25, 2025.
  - Executive Board completed the review on May 9, 2025; disbursement followed.
- Voting and disclosure:
  - IMF does not disclose Board voting; decisions generally taken by consensus and sufficient consensus existed to complete Pakistan's review.
- Safeguards regarding use of funds:
  - IMF financing provided to members for resolving balance of payments problems.
  - EFF disbursements are allocated to central bank reserves, not transferred to the government to support the budget.
  - Program includes safeguards and conditionality: targets on accumulation of international reserves, a zero target on central bank lending to the government, and structural conditionality on fiscal management.
  - Deviations from program conditions would affect future reviews.

### Egypt: Fifth Review discussions
- IMF stance and progress:
  - Fund committed to supporting Egypt in building economic resilience and fostering higher private sector-led growth.
  - Notable improvements in inflation and foreign exchange reserves noted.
- Ongoing Staff discussions:
  - IMF Staff has had productive discussions with Egyptian authorities on policies under the EFF.
  - Focus now on accelerating and deepening reforms to reduce the footprint of the state, level the playing field, and improve the business environment.
  - Discussions continue on remaining policies and reforms to support completion of the Fifth Review.
- Note: Prime Minister announced possibility program conclusion in 2027 rather than 2026; discussions with IMF ongoing.

### Sri Lanka: Fourth Review and contingencies for Board approval
- Status:
  - On April 25, IMF Staff and Sri Lankan authorities reached Staff-Level Agreement on the Fourth Review under the EFF.
  - Upon Executive Board approval, Sri Lanka would have access to about $344 million in financing.
- Contingencies for Board timing:
  - Completion subject to Executive Board approval, expected in the coming weeks.
  - Timing contingent on:
    - Implementation of prior actions, mainly restoring electricity cost recovery pricing and proper functioning of the automatic electricity price adjustment mechanism.
    - Completion of the Financing Assurances Review to confirm multilateral partners' committed financing and progress in debt restructuring.

### Ecuador: Second Review, fiscal pressures, and program monitoring
- Current engagement:
  - IMF, World Bank, and Inter-American Development Bank representatives in Quito to discuss strengthening financial and technical support.
  - New IMF Mission Chief participating and advancing toward a Second Review under Ecuador's EFF.
- Recent history and disbursement:
  - Executive Board in December approved the First Review of Ecuador's 48-month EFF; about $500 million was disbursed after that First Review.
  - Authorities have made excellent progress in implementing the program.
- Fiscal pressures and questions:
  - Concerns noted about falling oil prices affecting Ecuador's fiscal position, possible need for adjustments to oil subsidies and tax reform, and social constraints from protests.
  - Questions raised on whether $410 million was not dispersed under the First Review; IMF will provide updates on the timing and any modifications to program goals as discussions proceed.

### U.S.-China tariff rollback and global outlook
- Deal summary:
  - In May, China and the U.S. announced a 90-day rollback of most bilateral tariffs imposed since April 2nd and established a mechanism to discuss economic and trade relations.
  - Agreement reduced additional tariffs from peak levels: previously 125 percent additional tariffs; agreed additional tariff level of 10 percent for the 90 days.
- U.S. effective tariff rate:
  - Previously assessed at 25.5 percent; the announcement will bring the U.S. effective tariff rate down to a bit over 14 percent.
- Growth outlook implications:
  - Reduction in tariffs and easing of tensions provides upside risk to the global growth forecast.
  - IMF to update global growth forecast in the July WEO.
  - Overall global outlook remains one of high uncertainty.

### IMF mandate, engagement with the United States, and policy reviews
- U.S. engagement:
  - The United States is the IMF's largest shareholder; IMF values the U.S. voice and has constructive engagement with U.S. authorities.
  - Secretary Bessent urged refocusing on core missions of macroeconomic stability and development; IMF notes this reaffirmation of U.S. commitment.
- IMF mandate and ongoing work:
  - IMF has a clearly defined mandate to support economic and financial stability for its 191 members.
  - Membership asked IMF to deepen work on external imbalances and monitoring of the financial sector.
- Policy reviews underway:
  - Comprehensive Surveillance Review to set surveillance priorities for the next five years.
  - Review of program design and conditionality to consider how lending can best help countries address low growth challenges and durably resolve balance of payments weaknesses.

### Closing logistics and follow-up
- Transcript will be made available later on IMF.org.
- For clarifications or additional queries, contact media@imf.org.
- Press briefing concluded; thanks to participants.

*Italic: Press Briefing Transcript: Julie Kozack, Director, Communications Department, May 22, 2025*

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_Source: https://www.imf.org/en/news/articles/2025/05/22/tr-05222025-com-regular-press-briefing-may-22-2025_