By Matthew Russell Lee
UNITED NATIONS, July 21 – When the International Monetary Fund re-started its biweekly embargoed press briefings on September 14, Inner City Press submitted questions about Hurricane Irma and moratoria, Mozambique, DR Congo and Ghana. The first two got answered. Inner City Press asked: "On Antigua and Barbuda, and Hurricane Irma impacted countries more generally... will there be no moratoria? What is the IMF doing?" IMF spokesperson Gerry Rice said, "There's a question from Matthew Lee on moratorium... on that, I would refer to what Mme Lagarde said a few days ago, of course the IMF has tremendous sympathy. She also said we stand ready to help. There are a number of options we can look at in that context. At the moment we are still trying to make an assessment. As a factual member, none of our members including Antigua and Barbuda have formally requested assistance from the Fund." Oh. On Mozambique, he called again for the publication of the full audit. Inner City Press also asked, "On the DR Congo, what is the IMF's response to civil society requests it has received that the Fund end its dealings with the National Petroleum Company of the Congo (SNPC), specifically that “if the IMF obtained the dissolution of Cotrade, a subsidiary of the SNPC, it can also demand and obtain the dissolution of the SNPC and the major works”?On Ghana, what is the IMF's response to civil society saying “the Finance Minister, in particular, is facing conflict of interest investigation with USA SEC, Ghanaian SEC and the Commission on Human Rights and Administrative Justice (CHRAJ) in Ghana... We are losing hope as the IMF seems not concerned about all these developments”?Watch this site and see IMF's July 20, 2017transcript: , with Inner City Press' question at that time: "Ghana President, Nana Akufo-Addo, on Tuesday said the country will not extend its three-year aid program with the IMF beyond April 2018. The IMF had urged it to do so to give it time to complete the program’s goals. Did the IMF so urge? A step back real quick for some context. Right now, we’re in the process of completing the fourth review of Ghana’s ECF program. We’ve made significant progress in program discussions, and we expect to reach understandings in all remaining issues in the coming days. The discussions are going to continue and as a result of these continuing discussions, a Board discussion to complete the fourth review probably won’t take place until late August. Again, Media Relations will get back to everyone on the exact timing. But it’s probably late August when Ghana’s fourth review will be taken up by the Executive Board.
Now, the question that was just posed was regarding a comment about extension of the ECF next year when it’s scheduled to expire. The President made it clear that he would like to move Ghana beyond aid. And successful completion of the IMF-supported program could be instrumental in achieving this goal by restoring macroeconomic stability in Ghana. A request for program extension is essential for our ability to complete the review of this program overall. And given the significant fiscal slippages from last year, it will also take longer to bring debt onto a clearly declining path, which explains the need for the program to cover performance into later next year. This was something that was outlined in a press release issued by the finance minister on July 18th. Mozambique: the IMF’s Mr. Lazare, our mission chief, has said that, quote, “critical information gaps remain unaddressed regarding the use of loans, proceeds”, close quote. Please be more specific about what the IMF sees as the information gaps, and how they can be filled, with what information and in what detail? First of all, we welcomed and continue to welcome the fact that the delivery of an international forensic audit on three companies to the office of the public prosecutor of Mozambique has taken place. We commend Mozambique public prosecutor for undertaking this important audit and for releasing the summary of the report. Transparency and good governance are key conditions for sustainable, inclusive growth, and that applies to all countries. Now we look forward to the publication of the entire audit report in due course. At that point, we will be able to provide an informed view on the audit and its implications. Still UNanswered: "On Zambia, Fitch has “said the key risk stemming from the current political tension if it escalated could jeopardize an IMF aid package as well as other lender's willingness to provide the southern African nation with external financing” and that “progress towards an IMF program has remained slow and may be delayed further by domestic political events, adding that expectation of an IMF program was key to Zambia's B/negative sovereign rating.” Please comment on if progress is slow and on these risks. In Sri Lanka, Joint Opposition’s Parliamentarian Bandula Gunawardana on July said that the country's Inland Revenue Act, in accord with the agreement arrived at with the IMF, is “an attempt to sabotage all forms of tax relief provided by former President Mahinda Rajapaksa during his tenure as the Finance Minister, and clarified that state-sponsored relief was also included under the new Act.” Is that the IMF's understanding of the Inland Revenue Act? Please comment. If there is an updated view about the Internet cut off (lifted only after 94 days) and other restrictions in the Anglophone regions of Cameroon injuring “Silicon Mountain." Back on June 22 Inner City Press submitted questions about Zambia, Cameroon and Haiti, where it was.During the embargoed briefing, IMF Spokesperson Gerry Rice read out Inner City Press' Zambia question and said, "implementation of the remaining actions in the next few weeks will enable us to present the authority's request for an Extended Credit Facility arrangement to the Board, and we expect that to be in August of this year." But this Haiti question has yet to be answered: "Chris Walker said reconstruction from the effects of Hurricane Matthew, and investments in health, education, and social services... will be achieved in part through the elimination of excessive subsidies, including subsidies for retail fuel sales. Please specify the IMF's thinking on time timing and range of subsidy elimination and ideas for EDH utility." On this and Cameroon (see below), we'll have more. On Cameroon, Inner City Press has repeatedly asked for the IMF's "updated view about the Internet cut off (lifted only after 94 days) and other restrictions in the Anglophone regions of Cameroon injuring 'Silicon Mountain.'" Watch this site: we'll stay on this. The next IMF briefing is July 13. From the IMF's May 11 transcript, of its Deputy Spokesperson Willam Murray: "I’ve got a question from Inner City Press on Sri Lanka. Do recent government moves on the Inland Revenue Act make it more likely the IMF Board will act on the request for completion of the second loan review in June and make a third disbursement? Again, it’s a question about Sri Lanka and the Inland Revenue Act and the likelihood of completing the second review. We had a staff level agreement in Sri Lanka on May 3rd, last week. We noted in announcing that agreement that it’s subject to completion of a prior action by the authorities, which is submission of the Inland Revenue Act to Parliament. And that was a prior action that was agreed earlier this year. Our legal experts are still analyzing the content of the new draft bill, and are in discussions with the Sri Lankan authorities. That’s where we stand at the moment on Sri Lanka." The answer's appreciated. Back on April 12 when at its Spring Meetings the IMF held its Middle East and Central Asia press conference, Inner City Press submitted this question: "Please describe the IMF's view and possible plans on Yemen, given the crisis there, including on President Hadi's proposed moving of the Central Bank out of the capital to Aden. What is the IMF's view of and any assistance to the Central Bank's performance?" After the briefing, the IMF provided this answer: "The humanitarian and economic impact of the conflict has been devastating; it has caused many deaths, depressed economic activity, and destroyed much of Yemen’s infrastructure. There is now even a tangible risk that the conflict could lead to famine in some parts of Yemen. Yemenis food supply relies largely on imported staples, like wheat and rice. Yemen needs urgently foreign exchange grants from donors to pay for imported food. But Yemenis also need to be able to buy the food that is imported. Resuming paying public salaries and social assistance grants in all of Yemen is therefore also urgently needed. Given these needs, the Central Bank of Yemen (CBY) could be the pivotal player for facilitating food imports and for resuming paying public salaries and social assistance grants in all of Yemen. But to play this humanitarian role, the central banks in Aden and Sana’a need urgently to find a way to cooperate in the interest of providing sufficient food to all Yemenis. Fund engagement is currently limited. We support the Yemeni authorities and the international community to the best of our abilities.The Fund stands ready to re-engage more fully as soon as the conflict is resolved to help rebuild economic institutions, jumpstart growth, and stabilize the economy."
Now, the question that was just posed was regarding a comment about extension of the ECF next year when it’s scheduled to expire. The President made it clear that he would like to move Ghana beyond aid. And successful completion of the IMF-supported program could be instrumental in achieving this goal by restoring macroeconomic stability in Ghana. A request for program extension is essential for our ability to complete the review of this program overall. And given the significant fiscal slippages from last year, it will also take longer to bring debt onto a clearly declining path, which explains the need for the program to cover performance into later next year. This was something that was outlined in a press release issued by the finance minister on July 18th. Mozambique: the IMF’s Mr. Lazare, our mission chief, has said that, quote, “critical information gaps remain unaddressed regarding the use of loans, proceeds”, close quote. Please be more specific about what the IMF sees as the information gaps, and how they can be filled, with what information and in what detail? First of all, we welcomed and continue to welcome the fact that the delivery of an international forensic audit on three companies to the office of the public prosecutor of Mozambique has taken place. We commend Mozambique public prosecutor for undertaking this important audit and for releasing the summary of the report. Transparency and good governance are key conditions for sustainable, inclusive growth, and that applies to all countries. Now we look forward to the publication of the entire audit report in due course. At that point, we will be able to provide an informed view on the audit and its implications. Still UNanswered: "On Zambia, Fitch has “said the key risk stemming from the current political tension if it escalated could jeopardize an IMF aid package as well as other lender's willingness to provide the southern African nation with external financing” and that “progress towards an IMF program has remained slow and may be delayed further by domestic political events, adding that expectation of an IMF program was key to Zambia's B/negative sovereign rating.” Please comment on if progress is slow and on these risks. In Sri Lanka, Joint Opposition’s Parliamentarian Bandula Gunawardana on July said that the country's Inland Revenue Act, in accord with the agreement arrived at with the IMF, is “an attempt to sabotage all forms of tax relief provided by former President Mahinda Rajapaksa during his tenure as the Finance Minister, and clarified that state-sponsored relief was also included under the new Act.” Is that the IMF's understanding of the Inland Revenue Act? Please comment. If there is an updated view about the Internet cut off (lifted only after 94 days) and other restrictions in the Anglophone regions of Cameroon injuring “Silicon Mountain." Back on June 22 Inner City Press submitted questions about Zambia, Cameroon and Haiti, where it was.During the embargoed briefing, IMF Spokesperson Gerry Rice read out Inner City Press' Zambia question and said, "implementation of the remaining actions in the next few weeks will enable us to present the authority's request for an Extended Credit Facility arrangement to the Board, and we expect that to be in August of this year." But this Haiti question has yet to be answered: "Chris Walker said reconstruction from the effects of Hurricane Matthew, and investments in health, education, and social services... will be achieved in part through the elimination of excessive subsidies, including subsidies for retail fuel sales. Please specify the IMF's thinking on time timing and range of subsidy elimination and ideas for EDH utility." On this and Cameroon (see below), we'll have more. On Cameroon, Inner City Press has repeatedly asked for the IMF's "updated view about the Internet cut off (lifted only after 94 days) and other restrictions in the Anglophone regions of Cameroon injuring 'Silicon Mountain.'" Watch this site: we'll stay on this. The next IMF briefing is July 13. From the IMF's May 11 transcript, of its Deputy Spokesperson Willam Murray: "I’ve got a question from Inner City Press on Sri Lanka. Do recent government moves on the Inland Revenue Act make it more likely the IMF Board will act on the request for completion of the second loan review in June and make a third disbursement? Again, it’s a question about Sri Lanka and the Inland Revenue Act and the likelihood of completing the second review. We had a staff level agreement in Sri Lanka on May 3rd, last week. We noted in announcing that agreement that it’s subject to completion of a prior action by the authorities, which is submission of the Inland Revenue Act to Parliament. And that was a prior action that was agreed earlier this year. Our legal experts are still analyzing the content of the new draft bill, and are in discussions with the Sri Lankan authorities. That’s where we stand at the moment on Sri Lanka." The answer's appreciated. Back on April 12 when at its Spring Meetings the IMF held its Middle East and Central Asia press conference, Inner City Press submitted this question: "Please describe the IMF's view and possible plans on Yemen, given the crisis there, including on President Hadi's proposed moving of the Central Bank out of the capital to Aden. What is the IMF's view of and any assistance to the Central Bank's performance?" After the briefing, the IMF provided this answer: "The humanitarian and economic impact of the conflict has been devastating; it has caused many deaths, depressed economic activity, and destroyed much of Yemen’s infrastructure. There is now even a tangible risk that the conflict could lead to famine in some parts of Yemen. Yemenis food supply relies largely on imported staples, like wheat and rice. Yemen needs urgently foreign exchange grants from donors to pay for imported food. But Yemenis also need to be able to buy the food that is imported. Resuming paying public salaries and social assistance grants in all of Yemen is therefore also urgently needed. Given these needs, the Central Bank of Yemen (CBY) could be the pivotal player for facilitating food imports and for resuming paying public salaries and social assistance grants in all of Yemen. But to play this humanitarian role, the central banks in Aden and Sana’a need urgently to find a way to cooperate in the interest of providing sufficient food to all Yemenis. Fund engagement is currently limited. We support the Yemeni authorities and the international community to the best of our abilities.The Fund stands ready to re-engage more fully as soon as the conflict is resolved to help rebuild economic institutions, jumpstart growth, and stabilize the economy."
Back on April 6 when the IMF held its biweekly embargoed press briefing, Inner City Press asked Spokesperson Gerry Rice about South Africa, Zambia, Bosnia, Nigeria and the UN, Cameroon and other issues. On Zambia, Inner City Press asked, "On Zambia, please state if a sale / privatization of Zambia Telecommunications Company (Zamtel) is no longer a condition for an IMF program with the country, as inferred from the recent list of conditions issued by the IMF's Tsidi Tsikata." After the briefing, an IMF Spokesperson replied to Inner City Press that "We have made progress towards reaching understandings on an economic program that could be supported by an IMF arrangement. There is broad agreement on key objectives, targets, and policies. We have agreed to continue discussions at the forthcoming April 2017 Spring Meetings of the IMF and World Bank here in Washington D.C. At this stage, it is premature for us to get into specifics on policy actions such as sales of parastatals."
On South Africa, Inner City Press asked "does the IMF have any comment on the recent firing of the finance minister? Separately, have there been any discussions of a possible program with South Africa?" Rice said that no request for a program has been received -- "the South African authorities have not requested a program from the IMF" -- and that the IMF normally does not comment on "domestic politics." He went ont to say, "it's important that institutions remain strong and the government can be united on policies for inclusive growth for all South Africans." We'll have more on this.
On Bosnia, Inner City Press asked the IMF, among other things: "what the IMF's comment on opposition, from farmers and the Republika Srpska to the excise tax on fuel which it is reported is a condition for the IMF's program?" Early on April 6, prior to the embargoed briefing but there reiterated at it, the IMF's mission chief for Bosnia and Herzegovina (BiH), Mr. Nadeem Ilahi, said: "The IMF took note that the BiH parliament did not adopt the amendments to the law on excise tax and the new law on deposit insurance during a session held on April 5, 2017. This will have implications for mobilizing external financing for much needed infrastructure projects and for the authorities’ efforts to modernize banking sector legislation. Both are key requirements of the authorities’ program, supported by the IMF under the Extended Fund Facility (EFF). We now expect a significant delay in completion of the first review of the program. In recent months, the authorities have made good progress in implementing economic reforms supported by the EFF, particularly by strengthening fiscal discipline, safeguarding financial stability, and improving business environment. We stand ready to assist the authorities in continuing the implementation of structural reforms to unlock growth potential and maintain macroeconomic stability, including through IMF advice and technical assistance.The authorities need more time to make further progress in a number of key areas of their program, such as securing financing for key infrastructure project, modernizing banking sector legislations, and improving corporate governance of state owned enterprises. In the period ahead, we will maintain close dialogue with the authorities and remain committed to assist them in their efforts.” We'll have more on this.
