By Matthew Russell Lee
UNITED NATIONS, June 11 -- Since the Nepal earthquake, Inner City Press has been asking the International Monetary Fund if it would move to relieve the country's debt burden. Inner City Press resubmitted the question for the IMF's embargoed June 11 briefing, and during it, IMF spokesperson Gerry Rice read out the question and answered it.
Rice
said that Nepal has now made a request to the IMF under the Rapid
Credit Facility, and that the IMF will send a mission to the country
coinciding with the donors' conference on June 25. He said Nepal could
be eligible for $50 million annually, for a total of $124 million. We'll
see.
Rice also answer questions Inner City Press submitted on Ghana's
Eurobond and about Jamaica. (He said these questions, “from the UN in
New York,” remind of other things in the IMF briefing room other than
Greece and Ukraine).
On
Ghana, Rice said that the Eurobond was “envisioned” in the recently
agreed program. But what is the status of any talks about it? Inner City
Press asked, “Ghana's Minister of Finance, Seth Terkper, says the
government intends to issue a $1 billion 10-year Eurobond in 2015. What
are the status of talks with the IMF in this regard?”
On
Jamaica, Inner City Press asked, “On Jamaica, please comment on
criticism that the percentage of people in under the poverty line has
grown alongside the IMF's program and that 'last year, Jamaica paid the
IMF over $136 million more than it received.'”
Rice acknowledged that in 2014-15 there was a negative flow out of the
country to the IMF, of $163 million. But he said with the new program
that has reversed, to in-flow into Jamaica of $127 million in 2015-16,
projected to rise to $176 million in 2017-18. Rice acknowledge the rise
in the poverty rate from 9.9% in 2007 to 20% in 2012, but said this had
to do with the global financial crisis and is the reason for the IMF's
program. We'll see.
Inner City Press had also asked for updates if any on Yemen and Burundi
-- apparently there are no updates -- and one on a quote from Romania's
National Bank Governor Mugur Isarescu saying the IMF's “communication
has sometimes been problematic.” Still, three answers are appreciated.
On
Greece, for the record, Rice said there are major difference between us,
with little to no progress made in narrowin them. On Ukraine, he said
the IMF can lend to a country that has arrears to private creditors
provided other conditions are met. Ukraine certainly has Western
political support.
Back on May 28, on the day
Yemen talks
were supposed
to resume in
Geneva, but
were canceled
by the UN,
Inner City
Press asked
the
International
Monetary Fund
for the status
of its program.
IMF spokesperson William Murray read out the question -- "on Yemen, given the cancellation or postponement of the talks that had been scheduled to begin today (May 28) in Geneva, what is the status of the IMF's program and any review of it?" -- then read out a response:
IMF spokesperson William Murray read out the question -- "on Yemen, given the cancellation or postponement of the talks that had been scheduled to begin today (May 28) in Geneva, what is the status of the IMF's program and any review of it?" -- then read out a response:
"I’ve
got 2 separate
questions from
Matthew Lee,
of Inner City
Press.
Matthew’s
question on
Yemen, given
the
cancellation
of talks,
what’s the
status of the
IMF’s program?
A: In
the context of
Yemen and the
IMF, the sit
is still under
review and
being closely
monitored. We
don’t have a
time line yet
established
for any active
resumption of
discussions
over
completion of
the review of
the existing
Yemen program.
The program is
still in place
but we’re
monitoring
developments
in Yemen. Come
back to us as
time goes on.
"
But
in place with
whom? Hadi in
exile? The
Houthis?
Likewise on Burundi,
Inner City
Press asked
Murray about
the status of
the IMF's
"pre-election"
program, now
that the legislative
elections have
been briefly
delayed, and
questions loom
over the
presidential
elections (the
UN Security
Council "penholder,"
France, told
Inner City
Press on May
27 that the
conditions for
elections are
not met).
Murray, citing
the "current
security situation,"
said
"Well,
another
situation
under review,
but let me
give you our
current view
on Burundi. Of
course the
background is
well known,
current
developments.
We are
following
those
developments
closely,
regarding the
extended
credit
facility,
that’s the
facility that
has been in
place for some
time. The
program was
recently
approved and
it’s fair to
say that given
current
security, and
political
issues, the
timing of our
next
discussion
with the
authorities is
yet to be
determined. We
shall continue
to monitor the
situation in
Burundi and if
possible, will
determine that
at a later
stage, when to
set the time
for a second
review of the
credit
facility."
On Nepal, on
which Inner
City Press
asked the IMF
again about
any debt
relief or use
of new
facilities,
Murray said:
"Just
to give you a
quick status
report on
Nepal, we had
a mission on
the ground,
they’ve done
an initial
assessment.
It’s not final
yet. They will
be going back
to Kathmandu
to complete
some analytics
because there
was another
very very
severe
earthquake.
There is a
plan for a
donors meeting
in late June,
June 25 I
believe, a lot
of that
analysis which
we’re also
doing on the
macro economic
front with the
World Bank and
other
multilateral
institutions,
that will all
feed into the
June 25 donors
conference, at
which point I
would expect a
very active
strategy for
Nepal to
surface. Right
off the top,
we have a
rapid credit
facility that
Nepal could
certainly have
access to,
which is one
option. In
terms of debt
relief, that
is pending
further
analysis. As
you know we’ve
had some
reforms in our
credit
facilities
that have
certain
conditions
attached to
how a country
can qualify
for debt
relief. It’s
unclear at
this juncture
whether Nepal
does or not,
but certainly
it’s under
review."
We'll
have more on
this.
Back on May
14, Inner City
Press asked
IMF
spokesperson
Gerry Rice:
"On Burundi, after the IMF's announcement of $6.9 million in the run up to elections, now with General Godefroid Niyombare saying Pierre Nkurunziza is no longer in power, what is the status of the IMF's funds and program, when will it be reviewed?"
Rice took this question and replied that the "IMF is following the current developments in Burundi very closely. The Fund-supported program that was recently approved, it's fair to say that given the current security situation, the timing of our next discussions with the authorities has yet to be determined."
Tw weeks ago on April 30, the IMF told Inner City Press on Burundi
"Many thanks for your question. Please see our line below:
'We are continuing to monitor developments in Burundi. Regarding the ECF-supported program that was recently approved, our next meeting with the authorities is tentatively scheduled to take place in June, at which time we will assess progress toward the completion of the 7th review.'"
So, no more June?
On May 14 Rice also answered Inner City Press on Nepal, saying an IMF team is "on the ground" and considering all feasible options. Debt relief?
"On Burundi, after the IMF's announcement of $6.9 million in the run up to elections, now with General Godefroid Niyombare saying Pierre Nkurunziza is no longer in power, what is the status of the IMF's funds and program, when will it be reviewed?"
Rice took this question and replied that the "IMF is following the current developments in Burundi very closely. The Fund-supported program that was recently approved, it's fair to say that given the current security situation, the timing of our next discussions with the authorities has yet to be determined."
Tw weeks ago on April 30, the IMF told Inner City Press on Burundi
"Many thanks for your question. Please see our line below:
'We are continuing to monitor developments in Burundi. Regarding the ECF-supported program that was recently approved, our next meeting with the authorities is tentatively scheduled to take place in June, at which time we will assess progress toward the completion of the 7th review.'"
So, no more June?
On May 14 Rice also answered Inner City Press on Nepal, saying an IMF team is "on the ground" and considering all feasible options. Debt relief?
On
Ghana, ICP
asked "On
Ghana, does
the IMF have
any comment or
view on the
country upping
its monetary
policy rate up
to 22 percent,
and on the
decline in
value of the
cedi? How does
this impact
the IMF
program?"
The
IMF responded,
after the
briefing:
"We
welcome Bank
of Ghana's
commitment to
reduce
inflation and
bring it
gradually down
to its medium
term target,
as envisaged
under the
IMF-supported
program. The
increase in
the policy
interest rate
decided by
Bank of
Ghana's
monetary
policy
committee
yesterday (May
13) aims at
mitigating
inflationary
pressures,
such as those
related to the
depreciation
of the
exchange rate,
in order to
achieve the
inflation
objective."
On
Jamaica, ICP
asked "On
Jamaica, it is
reported that
the IMF's “new
chief of
missions to
Jamaica, Uma
Ramakrishnan,
said yesterday
that the
missing of the
nominal
primary
surplus target
by the country
under its
Extended Fund
Facility is
not a big
deal.” Can you
clarify the
IMF's position
on the missing
of this
target?"
The
IMF responded,
after the
briefing:
Here
is our answer
on Jamaica:
n The staff team that was in Jamaica from May 4-12 provided its perspective on this in the press release that was issued on Tuesday.
n Implementation of Jamaica’s EFF-supported reform program remains strong. All quantitative performance targets through end-March were met, with the exception of the target for the primary surplus of the central government, which was narrowly missed as revenue came in lower than projected in 2014/15.
n While the target was missed in nominal (Jamaican dollar) terms, the primary surplus is still estimated at 7.5 percent of GDP in 2014/15—the central fiscal anchor of the program.
n At the press conference, the team explained that deviations under IMF programs do happen, and it was also noted that one missed performance criterion over eight reviews is still an exceptionally strong performance by IMF standards.
n The staff team indicated that in its view, the authorities remain well on track to achieve the central goals of their economic reform program, and the team explained that a missed performance criterion can be waived by the IMF’s Executive Board under a standard procedure.
n The staff team that was in Jamaica from May 4-12 provided its perspective on this in the press release that was issued on Tuesday.
n Implementation of Jamaica’s EFF-supported reform program remains strong. All quantitative performance targets through end-March were met, with the exception of the target for the primary surplus of the central government, which was narrowly missed as revenue came in lower than projected in 2014/15.
n While the target was missed in nominal (Jamaican dollar) terms, the primary surplus is still estimated at 7.5 percent of GDP in 2014/15—the central fiscal anchor of the program.
n At the press conference, the team explained that deviations under IMF programs do happen, and it was also noted that one missed performance criterion over eight reviews is still an exceptionally strong performance by IMF standards.
n The staff team indicated that in its view, the authorities remain well on track to achieve the central goals of their economic reform program, and the team explained that a missed performance criterion can be waived by the IMF’s Executive Board under a standard procedure.
Follow @innercitypress Follow @FUNCA_info
