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By Matthew Russell Lee, CJR PFT NY Post

NEW YORK CITY, March 21– When the International Monetary Fund held its biweekly embargoed media briefing on March 7, Inner City Press submitted five questions including on Haiti which the IMF answered. But on March 21 the IMF added that it hopes the "uncertainty" is resolved quickly. Inner City Press submitted five new questions, unanswered as of the embargo time perhaps due to the IMF changing its media website and sign in, but still unanswered as of March 22 when the IMF announced on Madagascar: "On March 22, 2019, the Executive Board of the International Monetary Fund (IMF) completed the fourth review under the Extended Credit Facility (ECF) [1] Arrangement for Madagascar. The completion of this review enables the disbursement of SDR 31.43 million (about US$43.9 million), bringing total disbursements under the arrangement to SDR 187.69 million (about US$261.9 million).  Madagascar’s 40-month arrangement for SDR 220 million (about US$305 million, or 90 percent of Madagascar’s quota) was approved on July 27, 2016 (see Press Release No.16/370 ). Additional access of 12.5 percent of Madagascar’s quota was approved by the Executive Board in June 28, 2017, bringing Madagascar’s access under the ECF arrangement to SDR 250.55 million (about US$347.1 million) at that time. This arrangement aims to support the country’s efforts to reinforce macroeconomic stability and boost sustained and inclusive growth.  Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, made the following statement:  “Madagascar’s performance under its economic program supported by the Fund’s Extended Credit Facility arrangement has remained generally strong. In the midst of the presidential election, the program is estimated to have remained broadly on track through end-2018. The structural agenda is also advancing. Recent economic developments also remain generally favorable, with solid economic growth, single-digit inflation, generally good fiscal performance, and foreign exchange reserves at historic highs.  “The newly elected president and the government are committed to pursuing the program’s strategy of inclusive growth through increased investment and social spending. Boosting revenue mobilization is central to this strategy and warrants renewed vigilance, given the small revenue shortfall in the second half of 2018. In particular, it is important to avoid tax base erosion when implementing new tax incentives for investment. The efforts underway to reduce transfers to the public utility JIRAMA and to limit fiscal risks related to fuel pricing are essential to creating fiscal space for high-priority investment and social spending. Intensified reform efforts will be necessary to maintain the momentum of the program.  “Efforts to enhance governance and fight corruption—central to the success of the authorities’ program—advanced with the recent approval of a new law on AML/CFT. Enacting the draft law on asset recovery submitted to parliament over a year ago is essential to complete the modernization of the legal framework. Continued development of institutions to fight corruption is also crucial for effective enforcement." Here's from Inner City Press' March 21 questions: "On Congo-Brazzaville, what is the IMF's comment on the revolving door report that The Republic of Congo sought the assistance of former International Monetary Fund Managing Director Dominique Strauss-Kahn as the debt-strapped nation’s bid to secure a bailout stretches into a third year.  Strauss-Kahn and Lazard France Chief Executive Officer Mathieu Pigasse traveled to the Congolese capital, Brazzaville, in January for talks with President Denis Sassou Nguesso, Finance Ministry spokesman Adrien Wayi Lewy said? 

On Sri Lanka, what is the IMF's response to senior banker Rusiripala Tennakoon saying this IMF has failed to realize that the non-performing portfolio of the state banks will be in a worse situation in 2-3 months time.  He noted that by having to finance some of the state-owned enterprises, which are deteriorating the banks are running the risks of becoming undercapitalised.  Tennakoon noted that the IMF has failed to identify the impending danger the entire banking industry in the country is facing. He noted that especially, the state-owned banks and their non-performing portfolios are increasing tremendously signaling danger? 

What is the IMF's reaction to moves in the Marshall Islands toward the Sovereign (SOV) digital currency on an equal footing with the US dollar. It passed a key bill this week for SOV’s creation. "IMF has criticized the plans with a number of concerns including the risk of money laundering and that the Marshall Islands could lose its only corresponding banking relationship." What now? 

On Ukraine, what is the IMF's response, confirmation or denial to that Chairman of the Verkhovna Rada Committee on Legislative Support of Law Enforcement, Andriy Kozhemyakin, states that the U.S. and EU ambassadors, as well as the IMF mission, are asking to postpone consideration of bills regarding illegal enrichment. The statement came during the Conciliation Board meeting on Monday. Speaking of bills related to Article 368-2 of the Criminal Code of Ukraine (illegal enrichment), Kozhemyakin said: "The U.S. ambassador, the IMF mission, and the EU ambassador wrote me a letter today. They ask to postpone consideration of all draft laws as they are imperfect, including the presidential one." True? 

On Liberia, what is the IMF's comment on that the George Weah-led administration would be dealt a major blow amid the current economic turmoil as the biggest employer in the country’s private sector, Firestone Natural Rubber Company, announces the laying off of 800 employees.  “After a thorough and strategic review of its current operations in Liberia, West Africa, Firestone Natural Rubber Company, an indirect subsidiary of Bridgestone Americas, Inc., has announced the difficult decision to reduce its workforce by 13% (approximately 800 employees) by early second quarter of 2019?  Also if there are any updates on Cameroon or Morocco." On Cameroon, not unrelated to the DSK history, there is rarely an answer. Watch this site. Here's the IMF's March 7 transcript: "There is question on Haiti coming from Matthew Lee in New York. I'll take a couple of Matthew's questions as usual. And Matthew is asking about any updates I can give him on Haiti. And I can say that an IMF team is in Port Au-Prince as we speak to complete the Article IV consultation. But more than that, to discuss a possible IMF financial arrangement with Haiti. And we will hear more on that very, very soon.  But I can say that the mission will propose that what the mission will propose is highly concessional, on the most concessional terms we can offer for Haiti and it will highlight social protection. It will highlight the fight against corruption while deferring any fuel price adjustments until the government is able to guarantee that the most vulnerable will be protected from any negative effects.  Those of you who follow Haiti, you know, will understand the context of what I have just said. And again, the mission will communicate its findings at the end of the visit." Now, 11 hours later, the IMF announces this: "In response to a request from the Haitian authorities, an International Monetary Fund (IMF) mission led by Mr. Chris Walker visited Port-au-Prince from February 25 to March 8, 2019 to discuss IMF support for measures to ease poverty, encourage good governance, raise growth and stabilize the country’s economic situation. At the end of the visit, Mr. Walker issued the following statement:  “I am pleased to announce that in support of the government and the people of Haiti, we, the IMF, the Haitian government and the Central Bank of Haiti (Banque de la République d’Haiti (BRH)) have reached an IMF staff-level agreement on a concessional 0 percent, three-year loan of US$ 229 million for Haiti. This agreement will have to be approved by the IMF’s Executive Board, which is expected to consider Haiti’s request in the coming weeks.  “The agreement we have reached is aimed at helping Haiti overcome its current fragile state, and alleviating the hardship of the most vulnerable. We have placed social protection firmly at the center of the accord, and once the agreed measures are successfully implemented, the poorest in Haiti will be among the first to benefit in a tangible way.  The program provides money for a variety of social protection measures ranging from school feeding, through targeted cash transfers, to money for social housing.  “Priority has also been given to the fight against corruption and improvements in governance.  The IMF backs the government’s aim of state reform.  In its agreement, it has drawn up measurable targets to boost this fight with the goal of injecting greater transparency into the management of public finances, tax and revenue administration, as well as expenditure control.  “To enable Haiti to return to macroeconomic stability, the loan to Haiti represents 100 percent of quota, and the money will be disbursed over the three years of the program which is subject to regular Executive Board and staff reviews.  “The loan is offered under the IMF’s Extended Credit Facility (ECF) which allows lending at concessional rates and is aimed at stabilizing Haiti’s economy by putting its budget deficit on a downward trajectory and managing its debt, while protecting the poorest in the country.  “The visit also encompassed the IMF’s Article IV consultation, or its regular check of the health of the country’s economy.  Real growth remains near its four-year average of 1.5 percent.  The country has been facing severe financing constraints while political turbulence has discouraged private investment and limited action on needed fiscal reform.   “Under the program, we expect that financial constraints will be relaxed, allowing for faster growth.   “We at the IMF are ready to partner with Haiti on its economic revitalization. We will also encourage other multilateral agencies and countries to support the country. We have talked to partner agencies and they are willing to help. It would also be very helpful for Haiti’s bilateral partners to step forward at this critical time.  “The mission would like to thank the authorities and all those with whom they met for their warm welcome and the frank and constructive discussions.'"  We'll have more on this - and this: on March 7 Rice said he was not aware of any IMF contact with Team Guaido on Venezuela... On February 7 Inner City Press asked, "On Barbados, former co-chair of Jamaica’s EPOC Richard Byles has said the circumstances which forced Jamaica to turn to the IMF were very similar to those currently faced by Barbados with very high debt to GDP ratios and low foreign reserves. Any IMF comment? Has Barbados reached out to the IMF?" Rice responded about the EFF program initiated last October - here's from the transcript: "There is one other -- a couple of other questions on line I'll take. One is on Barbados where, again, Matthew Lee is asking the former co-chair of Jamaica's EPOC, Richard Byles, has said the circumstances which forced Jamaica to turn to the IMF were very similar to those currently faced by Barbados, very high debt levels, low foreign reserve. Any IMF comment, has Barbados reached out to the IMF, the answer is clearly yes because last October our Board approved a program, a financial program for Barbados under our extended fund facility, one of those instruments that we can use when countries are in difficulty. So just confirming that." And on Zimbabwe: "Then let me take a few calls from this -- there is one on Zimbabwe asking about -- what is our comment on reports that Zimbabwe has cleared its arrears with the IMF but the country still owes, he says 687 million to the African Development Bank, 1.4 billion to the World Bank, 322 million to the European investment bank and on recent developments including the crackdowns in the country.  We have talked quite a bit about Zimbabwe here in the past but just to answer the question, it’s -- I can confirm that -- and I’ve said it before here, that Zimbabwe has cleared, indeed, its arrears to the IMF but arrears remain outstanding to other multilateral creditors, including the World Bank and that severely limits Zimbabwe’s access to international financial support -- Zimbabwe has no arrears to the IMF. Our rules preclude lending given the arrears to other financial institutions.  And on the crackdown he asks about, I don't have too much to add beyond what I said here before, which is that we encourage all stakeholders to collaborate peacefully -- and I think that's the word I would want to stress, is the "peacefully" -- and, you know, try to develop policies that will stabilize the economy and promote sustainable and inclusive growth. It's clearly a very difficult situation there in Zimbabwe and we recognize that." Inner City Press also asked, "On Nigeria, Minister of Budget and National Planning, Senator Udo Udoma, has said the nation’s economy will grow by 3.01 per cent this year, compared to a forecast of two per cent by the International Monetary Fund. What is the IMF's response?  What is the IMF's comment on the making public of US “Field Manual (FM) 3-05.130, Army Special Operations Forces Unconventional Warfare” and its mentions of the IMF? On Cameroon, now the US is cutting military aid due to human rights violations (and a Cameroon minister threatening opponents with a Holocaust). Do these issues, and the continued crackdown in the Southwest and Northwest of the country, have no impact the IMF's continued programs with the Biya government?" Somehow these Cameroon questions don't get answered. We'll have more on this. On Venezuela Rice made it clear that IMF has not spoken with Guaido, saying the IMF will take its guidance from the international community and stating of the IMF, "we don't do politics, we do economics." We'll have more on this.  Back from the IMF's January 17 transcript answering Inner City Press' Zimbabwe question at the time. RICE: "I'll take one more online and that's about Zimbabwe and asking for the status of where we are with the countries debt and relation with the IMF and did we have any comment on the unrest and the government crackdown there is the question.  So in answer to that, I would say that of course Zimbabwe is facing major challenges and just in terms of the unrest, we encourage all stakeholders to collaborate peacefully in developing and implementing policies that will stabilize the economy and promote sustainable and inclusive growth.  On the overall economic situation, debt and the IMF, there has been no real change in what I have said here recently which is Zimbabwe continues to be in a difficult situation regarding debt with protracted arrears to official creditors including multilateral creditors such as the World Bank which severely limits Zimbabwe's access to international financial support.  In terms of the IMF, Zimbabwe has in fact cleared its arrears to us, to the Fund, but our rules preclude lending to a country that is still in or under arrears to other international financial situations. So until that particular situation is resolved, we would not be moving forward with a financial support for Zimbabwe.  I said here the last time that the authority's economic policies we felt were headed in the right direction broadly in terms of addressing the fiscal deficit and monetary policy and so on. I won't repeat what I said the last time but that’s where we are on Zimbabwe."

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