By Matthew Russell Lee
UNITED NATIONS, February 5 -- The IMF's biweekly embargoed briefing began Thursday with drama and a guest: Christine Lagarde on Ebola, in English and French, taking two questions then out.
The IMF said, "subject to Board approval of requests from the individual countries, it is expected that the CCR trust would provide grants-for-debt relief of close to $100 million for the three countries affected by Ebola in West Africa –Liberia, Sierra Leone, and Guinea. These funds would come in addition to the $130 million of assistance provided in September 2014 and to
a second round of new concessional loans amounting to about $160 million to be considered soon by the Executive Board."
a second round of new concessional loans amounting to about $160 million to be considered soon by the Executive Board."
Lagarde said that one country, which she left unnamed, has made a commitment that they will be announcing. She cited non-Paris club members, naming only Russia as a creditor of Guinea. She said there'll be more at the G20 in Istanbul.
After that, there were seven questions to Lagarde's spokesperson Gerry Rice about Greece -- he declined to comment on the ECB further squeezing Greece -- then two on Ukraine, where the IMF is said to be in line for only $6 billion of the $15 billion now requested. US John Kerry is in Kiev today, including on IMF.
Inner City Press, before and during the briefing, submitted three questions:
In Ghana, President Mahama on Feb 3 said, “Ghana is committed to securing an IMF programme and we are confident that we will reach agreement with the IMF by the end of this quarter.” What is the process / status at the IMF?
On Mongolia, what is the process forward on their request for an IMF stand-by arrangement? When will a visit to the country take place?
In Sri Lanka on bank consolidation, new Central Bank Governor Arjuna Mahendran has said “I have also asked the IMF to send some technical experts to look at these issues from an international perspective and they have agreed to do so.” Can you confirm that? Would it be in connection with IMF visit at the end of February?
The first two were answered, and will be reported in separate stories. On Sri Lanka, which was not answered during the IMF briefing, the new government is cutting off payments to Lagarde's predecessor Dominique Strauss Kahn, who once out through the revolving door (of a Manhattan hotel) sold his services to the Rajapaksas. Any comment, or future safeguards, on that?
On Sri Lanka after the briefing and expiration of the embargo there was this answer by Gerry Rice of the IMF: "“We have been discussing with the authorities a multi-faceted technical assistance mission on financial sector issues. Looking at financial system stability and supervision in the context of the ongoing consolidation process is one element. We are currently putting together a team to send to Colombo, but will discuss with the CBSL specific needs in the next week so that we can select the best experts and structure the mission. It will likely take place after the staff visit in February, as this is a separate, technical assistance exercise.”
On Sri Lanka after the briefing and expiration of the embargo there was this answer by Gerry Rice of the IMF: "“We have been discussing with the authorities a multi-faceted technical assistance mission on financial sector issues. Looking at financial system stability and supervision in the context of the ongoing consolidation process is one element. We are currently putting together a team to send to Colombo, but will discuss with the CBSL specific needs in the next week so that we can select the best experts and structure the mission. It will likely take place after the staff visit in February, as this is a separate, technical assistance exercise.”
On Ebola back on November 13 Inner City Press asked about Ebola, including World Bank estimates of budget shortfalls in Liberia.
Inner City Press on November 13 asked, "On Ebola, what is the IMF's response to the US call for debt forgiveness for three countries? The World Bank has indicated that Liberia's revised 2014-15 budget has an unmet financing gap of more than half of the budget deficit projected at over $300 million. What can or will the IMF do about this?"
IMF Deputy Spokesperson William Murray replied that given the flare up of Ebola cases in unexpected areas. "The IMF staff's previously projections were assuming the epidemic would be brought under control in the first quarter of 2015. However it now appears that it could be well into the second half of 2015 before the Ebola epidemic is brought under control in these three countries."
Three hours later at the end of a UN General Assembly session on Ebola, Inner City Press asked a panel of UNGA President Sam Kutesa and UN Ebola envoys Anthony Banbury and David Navarro about the IMF's new projection: is it consonant with the UN's?
It was Tony Banbury who answered, saying that the UN is aiming at 70% safe burials for example by December 1 and to turn the Ebola epidemic around.
Is that the same thing as getting the epidemic "under control," the definition under which the IMF now projects the second half of 2015? The work goes on. Watch this site.
The day before at the UN on November 12 when the UN Security Council met, Liberia's Ambassador Marjon Kamara spoke not of the IMF but of the World Bank, saying "the World Bank recently gave a gloomy depiction of the economic effects of the disease on the three most affected countries - Guinea, Liberia and Sierra Leone."
Per Thoresson, Deputy Ambassador of Sweden which chairs the UN Peacebuilding configuration on Liberia, specified that “according to the World Bank, the two-year regional financial impact could reach $32.6 billion by the end of 2015. The World Bank also indicated that Liberia's revised 2014-15 budget has an unmet financing gap of more than half of the budget deficit projected at over $300 million.”
So where's the money going to come from? Back on October 30, Inner City Press asked the International Monetary Fund about its stated $130 million commitment to Liberia, Sierra Leone and Guinea.
Inner City Press asked IMF spokesperson Gerry Rice for an update at the IMF's embargoed briefing on October 30.
Rice said the outlook has worsened, with region-wide fall offs in travel and tourism. As to the three countries most impacted, there are "large financing needs likely for 2015."
At the Annual Meetings earlier this month, the IMF met with the three countries' authorities, Rice said. "2015 is going to be a challenging year." If the outbreak spreads, it would have larger spillovers. The IMF, Rice said, is ready. We'll see.
In the UN Security Council on November 12, the head of UN Peacekeeping Herve Ladsous recited that Justice Minister Christiana Tah resigned and five soldiers have been demoted for disciplinary offenses while enforcing a quarantine of an Ebola-affected community in Monrovia.
Under Ladsous, it must be noted, UN Peackeeping has covered up attacks on civilians in Darfur and the Central African Republic. Ladsous himself refused repeatedly to answer Press questions about rapes by his partners in the DR Congo Army. Video compilation here. Most recently, Ladsous tried to block the Press' camera, Vine here. Thus is the UN UNdercut.
Also during the October 30 embargoed IMF briefing,Inner City Press submitted this question: "On Ghana, does the IMF have any comment on the October 28 launch of the “Civil Society Organization Platform on the IMF Bailout to Ghana”? Will the IMF meet with the group?")
On Ebola back on August 28 Rice told Inner City Press that the IMF was working on the ebola crisis with the government of Liberia, Sierra Leone and Guinea. Later came the $130 million commitment.
While most questions on August 28 concerned IMF Managing Director Christine Lagarde being under investigation -- she will brief the IMF Board “very soon,” Rice said, calling it “highly unlikely” it would be on August 29 along with the Board's meeting on Ukraine -- Inner City Press also asked about Yemen, Ghana, Pakistan -- and ebola, IMF transcript here:
“Has the IMF produced any estimates of the impact of the ebola crisis? Any IMF responses to it?”
Rice read out the question, then said that ebola's "acute impacts" are “macro-economic” and social, hitting three “already fragile” countries (Guinea, Liberia and Sierra Leone). He said "growth is likely to slow sharply in all three cases" and significant financial needs will rise: "increased poverty and food insecurity" and impacts on employment in the key agricultural sector.
Rice concluded, "We are actively working with all three countries to prepare... additional financing that may be required."
