SDNY COURTHOUSE,
Dec 17 – When the
International Monetary Fund
held its biweekly embargoed
press briefing on December 16,
Inner City Press asked about
crypto-currency in El Salvador
and beyond, and about the IMF
leaving or getting thrown out
of Brazil.
Inner City Press
asked: "On crypto-currency
given the Chief Economists
recent comments about the IMF
favors regulation over a ban,
compared to previous
statements on El Salvador,
please explain the IMF's
current thinking."
Spokesperson Gerry Rice
acknowledge the new comments
and blog, but reiterated
concern about adoption of
Bitcoin as legal tender, given
volatility.
On
December 17, the IMF Executive
Committe met and released $258
Million to Kenya:
" The IMF
Executive Board today
completed the 2021 Article IV
consultation and Second
reviews of the EFF/ECF
arrangements with Kenya,
allowing for an aggregate
immediate disbursement
equivalent to about US$ 258.1
million for budget
support. · The Kenyan
authorities have continued to
show strong commitment to
their reform agenda in a
challenging environment and
are acting to reduce debt
vulnerabilities while
maintaining support for the
economic recovery. ·
They have maintained careful
control of government spending
to limit the deficit and are
taking steps to reform
state-owned enterprises (SOEs)
to limit pressure on the
budget while protecting social
programs. Washington, DC
– December 17, 2021: The
Executive Board of the
International Monetary Fund
(IMF) completed today the 2021
Article IV Consultation [1]
and the Second reviews of the
38-month Extended Arrangement
under the Extended Fund
Facility (EFF) and 38-month
arrangement under Extended
Credit Facility (ECF) for
Kenya. The Board’s decision
allows for an aggregate
immediate disbursement of SDR
185 million (about US$ 258.1
million)."
December 16
partial handheld video here;
full transcript here:
Matthew Russell
Lee, Inner City Press: I've
asked you a number of times
about cryptocurrency in El
Salvador. You've given, you
know, the answers that you've
given. I saw that the chief
economist said, at least to
me, something that seems
slightly different saying
developing economies should
regulate it, rather than try
to ban cryptocurrency. I just
wanted to ask you, maybe is
there a new position on this?
Is there something -- can you
say a little bit more
particularly how it might
apply to what's been said thus
far about El Salvador.
And also on -- I just -- I'm
sure everyone has seen the
spat between Brazil and the
IMF. Where does that stand? Is
it, I guess, is the current
status that the IMF is going
to leave the country in June
of next year? And what more
can you say about it in
response? Thanks a lot.
MR. RICE: Thank
you. So on crypto currencies,
El Salvador, and so on, your
first question, your quite
right. We did issue a blog
actually last week from our
monetary and financial
counselor, Tobias Adrian
(phonetic) and colleagues. And
you're quite right to
characterize it the way you
did, Matthew, which was a call
a strong call for regulation
in the realm of
cryptocurrency. So, so that's
quite right. On El
Salvador specifically, our
view has not changed. We
support the authority's
efforts to boost financial
inclusion and raise growth,
but the risks arising from
using bitcoin as legal tender
need to be addressed. Crypto
technologies and digital
payment systems have the
potential to make payments
more efficient, but given
bitcoin's high price
volatility, its use as legal
tender entails significant
risks to consumer protection,
financial integrity, and
financial stability. And
it’s used also gives rise to
fiscal contingent liabilities.
So, our view on what we've
said about El Salvador and
bitcoin specifically, being
used as legal tender, our
views there have not changed.
I'm essentially, as you know,
probably repeating,
reiterating what I've said
here before. On your
question about Brazil, the IMF
agreed with the Brazilian
authorities to close the IMF
representative's office in
Brasilia by June 30, 2022,
which is what you were saying.
And that's when the term of
the current IMF representative
expires. So, like with many
other member countries, the
office in Brazil was opened
during the time when we had a
significant financial
arrangement with Brazil. That
was its initial purpose. And
while that IMF arrangement
with Brazil finished, the
office was kept open to
facilitate dialogue between
Fund staff and the
authorities, this has
happened. This has been
the case also with a number of
other countries in the past.
You know, we would open an
office particularly at the
time of crisis, at a time when
there's a financial
arrangement. And then over
time we close the office. So,
this has happened in the past.
I would want to emphasize that
we expect the high quality of
the Fund's engagement with the
Brazilian authorities to
continue as we work closely to
support Brazil in
strengthening its economic
policy and institutional
settings. So, that would be my
comment on Brazil. Thank you
very much, Matthew.
In November,
Inner City Press asked about
Ethiopia and Tigray, Chad and
its Glencore debt, and the
IMF's status with Zambia.
Spokesperson Gerry Rice
responded on each. Podcast here.
Short video of Q&As on
Twitter here.
IMF video here,
transcript forthcoming.
Answering on Ethiopia, Rice
for the IMF said it is
"difficult to move forward
with program activities" at
the moment. Can you say,
Tigray? His answer on Chad did
not include, as Inner City
Press' question had, Glencore.
And on Zambia there is not
time frame, but talks begin
today - virtually.
Back on September
16 Inner City Press asked Rice
about crypto-currency
legislation in
Ukraine and
again El
Salvador,
about the coup
in Guinea and
the role of
the Venezuela
talks in
Mexico on
release of the
SDRs. YouTube
of IMF video here.
Full transcript here.
Inner City Press
asked, "
what is the IMF's view of
Ukraine's move to regulate
crypto-currency? Also, the new
legislation proposed in
Panama, and the implementation
of the El Salvador Bitcoin as
legal tender bill?" When
called on, Inner City Press
added that Ukraine would use
nuclear reactors' output for
mining.
Rice cited
an upcoming virtual mission to
Ukraine later this month, and
said that on El Salvador, the
talks are under Article 4, not
for a program, as least at
this point.
On the Guinea
coup, on which
the UN of
Antonio
Guterres has
refused to
answer Inner
City Press'
questions, to
the IMF Inner
City Press
asked, "
After the coup
in Guinea,
what has
changed in the
IMF's approach
to the
country? What
have been the
contacts of
the IMF in
Guinea
recently? Same
question on
Myanmar, and
Afghanistan."
Rice said the
IMF is
"watching"
Guinea, after
citing
previous
support to the
country for
COVID
response.
How can the
UN get away with not
answering, and actively
blocking, these questions? The
IMF will go to Guterres' UNGA
week, which is thumbing its
nose at NYC with no
vaccination requirement. We'll
have more on this.
Back on January 8
Inner City Press asked the
IMF's Helge Berger, Mission
Chief, about China's so-called
Belt and Road Initiative:
"Your Article IV report cites
China's "overseas lending
projects" amid "rising
geopolitical tensions and
economic and trade frictions."
How does the IMF think that
rising debt levels among
African countries, and
increased skepticism about the
"Belt and Road" will impact or
be addressed going forward?
-Matthew Russell Lee, Inner
City Press. Video here.
(An aside: Inner
City Press has
reported on
the CEFC China
Energy Fund
Committee's
activities in
Chad and
Uganda and in
the UN, on
which the UN is
UNresponsive.)
Other questions
included
China's digital
currency (Inner
City Press also reports
on
crypto-currency
cases in the
U.S. District
Court for the
Southern
District of
New York and
elsewhere).
Berger said
when used
overseas an
issue is that
residents
could start
using another
country's
currency, if
it is easier.
We'll have more
on this.
***
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