IMF
Board to Meet
on Ukraine
July 31, No
Answers on
Africa,
Madagascar,
FfD
By Matthew
Russell Lee
UNITED
NATIONS, July
23 -- When the
International
Monetary Fund
held a belated
media briefing
on July 23,
before taking
its summer
break, nearly
all the
questions were
about Greece;
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?
While leaving
these and a
Press request
for an update
on Nepal
unanswered,
the IMF went
around and around
on Greece and
then Ukraine.
On the latter,
there is a
July 31 board
meeting
tentatively
set - before
the Board's
summer recess.
On Greece,
spokesperson
Gerry Rice
could not or
would not
confirm a
Troika visit
to Athens. He
praise 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.
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.
, 
