UN's Ban With India's Modi Talks Sri Lanka & Nepal, Not Pakistan; Book Given

By Matthew Russell Lee

UNITED NATIONS, September 25 --  India has been the largest contributor to UN Peacekeeping -- 185,000 troops in 44 of the UN's total of 69 missions -- so Inner City Press on September 23 at the Waldorf Astoria after the arrival of Indian Prime Minister Modi asked what India is looking for from the Peacekeeping summit Modi will attend on September 28.

  India's Ambassador to the UN Ashoke Mukerji replied that India would like Troop Contributing Countries to be consulted more meaningfully, citing Article 44 of the UN Charter; he emphasized India's skilled personnel and the protection of civilians.  Inner City Press asked about DPKO boss Ladsous' comments linking rapes to “R&R,” Mukerje's earlier response is below. There were questions, then and at a subsequently briefing, about Pakistan.

 On September 25 after Modi met with UN Secretary General Ban Ki-moon -- Modi gave Ban this book, here, by Ashoke Mukurji -- the UN issued a read out that mentioned Sri Lanka and Nepal, but BUT Pakistan:

"The Secretary-General met today with H.E. Prime Minister Narendra Modi of the Republic of India. They focused their discussion on the importance of implementing the Sustainable Development Goals, in particular with reference to climate change.   The Secretary-General emphasised the need for climate change finance as a key to building trust between developed and developing countries.  He underlined the tremendous importance of India's role in renewable energy, and encouraged the Prime Minister to continue to show strong global leadership on this issue.  

"The Secretary-General commended India for its indispensable contribution to UN peacekeeping.  He also underlined India's influential role in supporting the democratic transitions in both Nepal and Sri Lanka."

  We'll have more on this.

  (The venue of Modi's meeting with Obama is not yet clear; the G4 Summit will occur Saturday September 26 at 8 am in the Waldorf, after which Modi heads to the West Coast including, yes, Facebook.

The buzz at the Indian press conference was how large the (Empire) room was, and of Modi staying in what used to be Obama's and other US Presidents' suite.)

When peacekeepers from France allegedly raped children in the Central African Republic and the UN learned about it more than a year ago, theUN and UNICEF did nothing, until French UN Peacekeeping chief Herve Ladsous asked to fire the whistleblower Anders Kompass in March of this year, as stated in two UN Dispute Tribunal rulings.

  On September 11, refusing to answer on this, Ladsous instead linked the rapes to soldiers' lack of "distraction" and saying rapes could be avoided by some "relatively cheap R&R," and adding that some "South Asia"Troop Contributing Countries do just that. Video here.

 On September 17, Inner City Press asked the Permanent Representative of India, Asoke K Mukerji, and his Deputy Bhagwant Bishnoi about what Ladsous said. Video here. First, Bhagwant Bishnoi distinguished India from what Ladsous said, saying they only rotate troops in the most difficult circumstances. In some, one a year, if more volatile, more often.

  Then Ambassador Mukerji said clear, India's is a professional army, not a part time army, there are no "R&R" trips and that is for whoever said it to explain. Video here.

  That would be Ladsous, who refuses to answer Press questions. He took no questions as he rushed out of the Security Council on September 17.

 (India's Prime Minister will participate in the high level meeting on peacekeeping on September 28, which we'll cover.)

 On September 17, the UN Mission in CAR, MINUSCA, issued this statement now about a pornographic film involving peacekeepers:

"The United Nations Multidimensional Integrated Stabilization Mission in the Central African Republic (MINUSCA) is deeply concerned at reports of a pornographic film circulating in the city of Batangafo, center-west of the Central African Republic, which allegedly involves peacekeepers.

"MINUSCA immediately took steps to try to verify these disturbing allegations. To this end, MINUSCA met with the Mayor and the Deputy Prefect of the locality, and with representative of the local population.

"A fact finding mission also visited Kabo, about 55 km from Batangafo, to raise the issue with the Mayor and the Deputy Prefect and members of the local community.

"To date, MINUSCA’s contacts with the authorities and local residents have not provided any evidence to substantiate the allegations of a film involving UN personnel.  However, the Mission is committed to establishing the truth and requests that anyone in possession of evidence to substantiate these allegations should submit this to the Mission’s attention. This may be done via any MINUSCA office.

"MINUSCA would like to reiterate its strict adherence to the United Nations’ zero tolerance policy with regard to all acts of misconduct and sexual exploitation and abuse."

  One wag said, once Ladsous linked rapes to recreation, this should not be surprising.

  On September 15 MINUSCA disclosed yet another "allegation of sexual exploitation committed by one of its civilian staff."

  Inner City Press on September 15 asked UN Spokesman Stephane Dujarric, video here, transcript here:

Inner City Press:  Since Mr. [Hervé] Ladsous said that one of the reasons these abuses take place is people don't leave the country and go for R&R elsewhere for recreation, one could say, how long has the person been in the country?

Spokesman:  Matthew, I think… I think you continue to gain great pleasure in distorting what Mr. Ladsous said…

Inner City Press:  You can read the transcript.  He said…

Spokesman:  Listen, I think you raised that issue yesterday.  I answered clearly this is a case… a possible case of sexual abuse, which is to be condemned and which will be pursued as far as we can, both internally and with the relevant judicial authorities.

Inner City Press:  How long has it been since the person left the country?  The reason I ask is that he made the linkage.  He's the one that brought up people traveling…  [Cross talk - actually, talk over, by scribes]

Spokesman:  Matthew, I will say this one last time.  Civilian staff and military staff work under two different regimes.  So you're… to compare soldiers that have been in-country in very difficult circumstances for three years and civilian staff is not to be comparable.  Yes, ma'am?

  Later on September 15, Dujarric declined a Press question about what Ladsous said, ironically during a Reditt "Ask Me Anything" session. Ask Me Anything, except...

  On September 14, Inner City Press asked UN Spokesman Stephane Dujarric about what Ladsous had said, similar to comment which as noted below have gotten other military officials fired, even after they apologized. (Ladsous has not apologized, clarified, or answered any Press questions.) September 14 video here, transcript here:

Inner City Press: I'd wanted to ask you this on Friday or Mr. Ladsous, but I want to ask you, from this podium, he said, in discussing rapes, he said that peacekeepers there don't have enough recreation, that they don't have enough comfort.  He said that they are looking into getting them flights to get them fresh air, and although he did use the word, he's not excusing it.  I'm going to tell, many people saw this as basically a statement that somehow linking the rapes to a lack of other distractions…

Spokesman Dujarric:  I think… I think it's a complete misinterpretation of what Mr. Ladsous said.  He stressed a number of times that there was no excuse...

Inner City Press:  Then what about the flights?  I'm sorry.

Spokesman:  I'm a little over-caffeinated with me today so just bear with me.  He repeatedly said that there was no excuse for rape.  Okay.  That is clear.  That is UN policy, and I think that's everyone's policy.  There is no excuse for rape.  What he said in talking about the case of one contingent that had been deployed in basically a very hardship peacekeeping operation for more than three years.  When troops are not rotated, when troops don't have an opportunity to be rotated out for [rest and recuperation] and that's true for any armed forces, it creates the conditions where there can be all sorts of abuse or other things developing.  It is not an excuse for rape.  And I think it's clear that we have seen rape and horrendous sexual abuse by soldiers in many parts of the world.  Some of them come from very rich armies.  Some come from very poor armies.  There is no excuse.  What he was saying and I think people would agree with it, that three years for any contingent being stationed in very difficult circumstances is too long.

Inner City Press:  I guess what I want to say, US military, an admiral in the Pacific was fired for comments exactly like that for which the person… the person excused himself and apologized… he said distraction, comfort.

Spokesman:  Matthew, Matthew.  I read what you wrote.  I'm aware of the other case.  I think they're complete… they're not comparable.

Inner City Press:  Where are the flights going?  Where are the [rest and recuperation] flights going? 

Spokesman:  I will come back…

  Back in 1995 for similar comments, US Admiral Richard C. Macke was fired, as reported in the LA Times and the New York Times, which said Macke "apologized after members of Congress and Japanese officials complained, but it was too late.... A senior White House official said tonight that Anthony Lake, the national security adviser, had heard of Admiral Macke's remarks and told the Defense Department that the statements were 'not acceptable.'"

  Anthony Lake is now in the UN system, as the head of UNICEF - does he think UN Peacekeeping chief Ladsous' similar comments in 2015 are acceptable? Or does he, apparently like his and some other major member states, hope no one notices what Ladsous says and, worse, does?

  UN Secretary General Ban Ki-moon has yet to act. Nor have Ladsous' French sponsors, who dumped him on the UN after he'd previously beenrejected for the post by Ban's predecessor Kofi Annan, said anything.

 When Inner City Press started asking about this, Ladsous took to saying"I don't respond to you, Mister," right on UNTV. Instead he summoned Agence France Presse, Reuters and others to private briefings, as here in the hall. These media didn't report Ladsous' antics -- nor despite being present at Ladsous' September 11 press conference did they report his linkage of soldiers' rapes to their lack of "comfort" or R&R. This is today's UN.

  It was Senegalese Babacar Gaye, the head of the CAR mission, and not overall Peacekeeping chief Ladsous who was fired by UN Secretary General Ban Ki-moon; Inner City Press obtained and put Gaye's letter online here (credited here and here) citing systemic problems.

  Before Ladsous' carefully controlled four day visit to the country - no questions on the peacekeeper rapes, colonial photographs sent out - UN Spokesman Stephane Dujarric told Inner City Press, which asked, that Ladsous would take questions when he returned, including about peacekeepers' sexual abuse.

But when Ladsous appeared at the September 11 UN noon briefing, UN Spokesman Stephane Dujarric for the second time did not allow Inner City Press to ask Ladsous a single question. Dujarric gave the first question to the UN Correspondents Association, which after a perfunctory questions about the number of sexual abuse cases said its “real” question was if Ladsous will meet Obama. (Yes, apparently, and inappropriately, see below). Video here.

  Inner City Press prepared to ask Ladsous an obvious question: what is his response to appearing in at least two UN Dispute Tribunal rulings as having tried to get the whistleblower Kompass fired? But Dujarric gave the second question to a Reuters reporter who has previously channeled Ladsous, then to Agence France Presse, whose UN reporter in 2011 asked UNCA's board to act on Inner City Press' reporting on Ladsous.

Even with the questions allowed, Ladsous' answers should get him fired. First, speaking of sexual abuse, he said he didn't want to “deflower” the subject. Vine here. Then explaining the peacekeepers' rapes he said that a solution would be to get them more “recreation” (translating back and forth with Dujarric, Ladsous began to say “R and R”).

  Ladsous was asked, what do you mean? He said that Asian countries are good at this. We'll have more, but on top of his role in covering up rapes in DR Congo, Darfur and now CAR, this should get Ladsous fired. More here.
   

Inner City Press Asks UNDP Clark of World Bank, Lebanon & Jordan, IMF on Nepal, Wu Hongbo

By Matthew Russell Lee

UNITED NATIONS, September 18 -- For months various UN officials have spoken about fixing how the World Bank (mis) treats countries such as Lebanon and Jordan as middle income, even as the refugee crisis impacts them. On September 18, Inner City Press asked UNDP's Helen Clark about the problem, and the IMF's treatment of Nepal. Video here.

  Clark said that member states should work on this through the governing bodies of the IMF and World Bank. So are these two, especially the IMF, actually parts of the UN "family"? Inner City Presshas asked the IMF what its director Christine Lagarde will do during UNGA Week, here.

 Back on July 7 in the run up to the Financing for Development conference in Addis Ababa, and the transition from the MDGs to the Sustainable Development Goals, Inner City Press asked UN DESA's Wu Hongbo if corporate tax avoidance will be addressed in Addis, and how debt burdens impact funding for the MDGs, SDGs and development generally. Video here.

  Wu Hongbo, to whom Inner City Press was not called on to ask a question during his July 6 press conference about the MDGs, said the tax piece is under negotiation, and debt remains a problem.

On debt relief, 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 25 briefing, and during it, IMF spokesperson Gerry Rice read out the question and answered it. Transcript here; video here from 47:50.

  Inner City Press' question: "On Nepal, in the run up to the June 25 International Conference of Nepal’s Reconstruction, and with the World Bank announcing $500 million, is the IMF intending to do anything beyond the $50 million (one year) and $124 million (overall) in its response in the last briefing? Through the IMF's Catastrophe Containment and Relief Trust?"

  Rice said the IMF is represented at the conference in Katmandu -- contrary to some reports, UN Secretary General Ban Ki-moon is NOT there -- and could be the request for the $50 M / $124 M to the Board in July. He emphasized this would be zero interest under the RCF but said Nepal is NOT eligible for the CCRT, GDP damage is not enough. 

  Inner City Press would ask, should that threshold be lowered?

  On Jordan, Inner City Press asked: "On Jordan, having seen the IMF's announcement about the end of July, has there been any movement on the criticism by the head of UNHCR and others that the IMF and World Bank in treating Jordan (and Lebanon, etc) as “middle income” can't or don't do enough to provide support given the volume of refugees they have received?"

  Rice said, in essence, that the IMF has been flexible and has given fiscal space to deal with the refugee issues (we'll add the transcript later).  

  Back on June 11 Rice said that Nepal had 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.

   

IMF Tells ICP of Lagarde on SDGs, Q of Financial Inclusion, Indonesia, Nepal, Grenada

By Matthew Russell Lee

UNITED NATIONS, September 3 -- When the International Monetary Fund resumed its biweekly embargoed media briefings on September 3, Inner City Press submitted four questions. Inner City Press asked:

"Who from the IMF is coming to the UN General Assembly (and SDGs, etc) week in late September, and what is their program? What meeting will they participate in? What do they hope to accomplish?"

IMF Deputy Spokesperson William Murray answered, as fast transcribed by InnerCityPro:

“Matthew, and others, the Managing Director is scheduled to attend the UNGA particularly the SDGs segment in late September. There was a previous meeting in Addis Ababa we participated in at a high level that dealt with the SDGs... The IMF's Executive Board recently endorsed a 50% increase in access to all the funds concessional lending facilities and to maintain a 0% rate for low income countries that struggle with disasters and conflict. The Executive Board of the Fund has endorsed IMF's engagement in sustainable inclusive growth, on which we'll be elaborating in the weeks and months to come.”

  One focus should be financial inclusion, on which we'll have more during UNGA week.

 In the meanwhile, Murray also said Managing Director Christine Lagarde is about to arrive in Ukraine for "opportunistic" meetings with the authorities, and an IMF mission team will go there on September 22.

  On September 3, Inner City Press also submitted questions about Nepal and Grenada, as well as this:

"In Indonesia the Vice Speaker of the House of Representatives Taufik Kurniawan recently said, 'We do not ask for IMF support in crisis;' at the UN in NY on Sept 2, the Vice Chairman of the House of Representatives of Indonesia H. Fadli Zon told Inner City Press much the same thing. What is the IMF's response to these criticisms or resistance to the IMF, from elected representatives of the country where the IMF now plans its 2018 Annual Meetings?"

  We hope to receive answers.

  Back on July 8 when the International Monetary Fund released reviews and papers about the United States, complete with support of the Dodd Frank Act and mentions of anti money laundering protection Inner City Press asked about the proposal to raise the definition of Systemically Important Financial Institution from $50 billion up to $500 billion and if tight AML strictures are to blame for cutting off remittances to Somalia.

  Aditya Narain, IMF mission chief for the Financial Sector Assessment Program and deputy director, Monetary and Capital Markets department, told Inner City Press that the IMF believes such definition should give predictability, but should be based on risk and not necessarily only asset size.

  Narain told Inner City Press, "On the first one, our general belief is that supervisory approaches should be risk based, and therefore the materiality and proportionality of institutions should be taken into account for to develop supervisory frameworks. At the same time, we also recognize that it’s important to have some clear rules, regarding a unit, in this case size of institutions, because not only does it set a baseline of expectations, but it also provides a useful framework for people to anchor their expectations on. So that’s why, in a sense we would agree that it’s important to make these approaches risk based and therefore not dependent on size alone. I should add also, that our only political ideology is financial stability, for the purpose of this exercise.

  But will this be used FOR the Senator Richard Shelby draft bill?

  On remittances, Aditya Narain said it is an important question but one that the IMF is dealing with in other venues; it apparently wasn't raised to the US during this process. Why not?

 Narain told Inner City Press, "On the regulatory question, this is an issue which is being discussed in several forums where the IMF has been participating, and this is an issue not just for the US, although it has been most discussed in the context of the US, but the effects of the AML on remittances and the result, the stringent adherence to standards has led to a concern more globally that might be affecting the flow of remittances to those jurisdictions... where such remittances and the channels through which they flow are more important. We have not discussed this... there is work ongoing in the Fund, including in collaboration with other institutions like the World Bank... and we expect to be able to have more information on this in a few months time."

   In the embargoed media conference call, two questions in a row went to the Financial Times, which opined that the IMF report takes the side of the Democratic Party. The IMF disagreed. The IMF said, in writing, “As the epicenter of the global financial crisis that began in 2008, the United States passed a major law in 2010, the Dodd-Frank Act, to reform its financial system. Officials need to complete the rulemaking under the law, while parts of reform agenda face legislative proposals to water them down.”

   Central Banking asked two questions and Reuters one, on federal insurance regulation.  Watch this site.

IMF Board Funds Ukraine & Jordan, Short-changes Nepal, No Answers

By Matthew Russell Lee

UNITED NATIONS, July 31 -- When the International Monetary Fund Executive Board met before going on break on July 31, it doled out funds to Ukraine and Jordan, and a smaller amount to post-earthquake Nepal.

  Back on July 29, Inner City Press submitted questions for Managing Director Lagarde, including:

"Given that Nepal after its massive earthquakes was deemed ineligible for the IMF's IMF's Catastrophe Containment and Relief Trust, do you think there is a need to reconsider or modify the criteria of the CCRT?

"Yesterday the UN Ad Hoc Committee on Sovereign Debt Restructuring adopted nine principles to create a global bankruptcy process for countries. What does the IMF think should be done in this regard, and what is the IMF / Managing Director doing?"

  Neither question was answered, or even taken; there is no IMF briefing until September. The program for Nepal announced on July 31 was not under the CCRT, but rather the Rapid Credit Facility:

"The Executive Board of the International Monetary Fund (IMF) today approved a disbursement of SDR 35.6 million (US$49.7 million) for Nepal under the Rapid Credit Facility. This financial support will help the country address the urgent balance of payments and fiscal needs associated with the rehabilitation and reconstruction efforts in the aftermath of the powerful earthquake that occurred on April 25 causing widespread damage and devastation."

  But apparently this damage and devastation was not widespread enough for the IMF. Shouldn't it explain why it will not seek to amend its CCRT program? And speak about sovereign debt and bankruptcy? We'll stay on this.

  Of Jordan, the IMF on July 31 said that "Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, issued the following statement: 'Jordan’s Fund-supported program has helped the country to successfully weather severe external shocks, including the conflicts in Syria and Iraq.'"

Back on July 23, at least two Africa questions (from Inner City Press) were not answered, including:

On Madagascar, the IMF's Patrick Imam has said “certain preconditions for the... Extended Credit Facility (ECF) are not yet fully met.” What are those conditions, and what are the IMF's next steps on Madagascar?

What is the IMF's view of the Financing for Development agreement reached in Addis Ababa this month, in particular the non-inclusion of a mechanism to deal with inconsistent global corporate taxation?

  On Greece, spokesperson Gerry Rice praised Delia Velculescu, being shifted by the IMF to Greece from Cyprus. In the capacity, she answered Inner City Press' questions a year ago, here. 

 Apparently answers depend on what (country) you're asking about. A country like Nepal might merit answers for a few briefings, but then no updates (or follow through). We'll have more on this.

Background: 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 25 briefing, and during it, IMF spokesperson Gerry Rice read out the question and answered it. Transcript here; video here from 47:50.

  Inner City Press' question: "On Nepal, in the run up to the June 25 International Conference of Nepal’s Reconstruction, and with the World Bank announcing $500 million, is the IMF intending to do anything beyond the $50 million (one year) and $124 million (overall) in its response in the last briefing? Through the IMF's Catastrophe Containment and Relief Trust?"

  Rice said the IMF is represented at the conference in Katmandu -- contrary to some reports, UN Secretary General Ban Ki-moon is NOT there -- and could be the request for the $50 M / $124 M to the Board in July. He emphasized this would be zero interest under the RCF but said Nepal is NOT eligible for the CCRT, GDP damage is not enough. 

  Inner City Press would ask, should that threshold be lowered?

  On Jordan, Inner City Press asked: "On Jordan, having seen the IMF's announcement about the end of July, has there been any movement on the criticism by the head of UNHCR and others that the IMF and World Bank in treating Jordan (and Lebanon, etc) as “middle income” can't or don't do enough to provide support given the volume of refugees they have received?"

  Rice said, in essence, that the IMF has been flexible and has given fiscal space to deal with the refugee issues (we'll add the transcript later).  

  Back on June 11 Rice said that Nepal had 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.

   

On Nepal, Inner City Press Asks UN OCHA's John Ging of IMF Debt Position, Food Fight

By Matthew Russell Lee

UNITED NATIONS, July 8 -- 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. See below.

  On July 8, Inner City Press asked UN humanitarian official John Ging about the IMF saying that post earthquake Nepal is NOT eligible for its Catastrophe Containment and Relief Trust, and about reporting that the UN had "substandard" food in Nepal. Video here.

  Ging said the IMF issues is a real one, but that OCHA has no direct input with the IMF. If the IMF truly is a part of the UN system, shouldn't it?

 On the food issue, Ging said any such food was in a warehouse, not to be distributed. Inner City Press asked if he believed the government accepts this position (he does) - meanwhile a reader chimed in with this.

  On Nepal's debt, Inner City Press resubmitted the question for the IMF's embargoed June 25 briefing, and during it, IMF spokesperson Gerry Rice read out the question and answered it. Transcript here; video here from 47:50.

  Inner City Press' question: "On Nepal, in the run up to the June 25 International Conference of Nepal’s Reconstruction, and with the World Bank announcing $500 million, is the IMF intending to do anything beyond the $50 million (one year) and $124 million (overall) in its response in the last briefing? Through the IMF's Catastrophe Containment and Relief Trust?"

  Rice said the IMF is represented at the conference in Katmandu -- contrary to some reports, UN Secretary General Ban Ki-moon is NOT there -- and could be the request for the $50 M / $124 M to the Board in July. He emphasized this would be zero interest under the RCF but said Nepal is NOT eligible for the CCRT, GDP damage is not enough. 

  Inner City Press would ask, should that threshold be lowered?

  On Jordan, Inner City Press asked: "On Jordan, having seen the IMF's announcement about the end of July, has there been any movement on the criticism by the head of UNHCR and others that the IMF and World Bank in treating Jordan (and Lebanon, etc) as “middle income” can't or don't do enough to provide support given the volume of refugees they have received?"

  Rice said, in essence, that the IMF has been flexible and has given fiscal space to deal with the refugee issues (we'll add the transcript later).  

  Back on June 11 Rice said that Nepal had 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.

   

IMF Tells Inner City Press Nepal Not Eligible for CCRT, But Could $124 Million at Zero Percent Interest in July; Says IMF Is Flexible with Jordan on Refugees

By Matthew Russell Lee

UNITED NATIONS, June 25 -- 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 25 briefing, and during it, IMF spokesperson Gerry Rice read out the question and answered it. Transcript here; video here from 47:50.

  Inner City Press' question: "On Nepal, in the run up to the June 25 International Conference of Nepal’s Reconstruction, and with the World Bank announcing $500 million, is the IMF intending to do anything beyond the $50 million (one year) and $124 million (overall) in its response in the last briefing? Through the IMF's Catastrophe Containment and Relief Trust?"

  Rice said the IMF is represented at the conference in Katmandu -- contrary to some reports, UN Secretary General Ban Ki-moon is NOT there -- and could be the request for the $50 M / $124 M to the Board in July. He emphasized this would be zero interest under the RCF but said Nepal is NOT eligible for the CCRT, GDP damage is not enough. 

  Inner City Press would ask, should that threshold be lowered?

  On Jordan, Inner City Press asked: "On Jordan, having seen the IMF's announcement about the end of July, has there been any movement on the criticism by the head of UNHCR and others that the IMF and World Bank in treating Jordan (and Lebanon, etc) as “middle income” can't or don't do enough to provide support given the volume of refugees they have received?"

  Rice said, in essence, that the IMF has been flexible and has given fiscal space to deal with the refugee issues (we'll add the transcript later).  

  Back on June 11 Rice said that Nepal had 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.

   

IMF Tells ICP Nepal Applies for RCF, $124 M, Ghana Eurobond Envisioned

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:

"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 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.  

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