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SDNY COURTHOUSE, May 16 – When the International Monetary Fund held its biweekly embargoed press briefing on March 31, Inner City Press asked about Sri Lanka and Haiti. On Sri Lanka it asked for "an update and what is the IMF's view of the Rajapaksa government imposing import restrictions on 367 items such as fruits, milk products and fish in a bid to tackle the foreign exchange shortage?"

  IMF Spokesperson Gerry Rice replied that the negotiations with Sri Lanka will take place in the coming days, including with the Finance Minister's anticipated presence at the April IMF-World Bank Spring Meetings in DC, which Inner City Press will also be covering. Rice referred to the IMF's February 25, 2022 statement.

  Now on May 16, after a story (and question) on Malawi, this on Portugal: " the economy is now facing new risks posed by the war in Ukraine. Although direct  linkages with Russia and Ukraine are limited, spillovers from the war through higher  commodity prices, greater supply bottlenecks, weaker confidence, softer external demand,  and tighter financial conditions will weigh on the recovery and raise prices....The impact of the end of  moratoria and new risks, including from the housing market, on credit quality are likely to  remain sources of uncertainty for some time. Prudential authorities are actively monitoring  banks’ credit quality and confirm that the materialization of credit risk, until now, was not as  significant as expected in the beginning of the pandemic. Strategies to reduce NPLs are  bearing fruit, yet a few banks have not yet completed their adjustment processes. Ongoing  efforts for timely identification and reporting of credit risk and adequate loan classification and  provisioning to preserve financial stability need to continue. Risks from rising real estate  prices, while still well-contained, should also be closely monitored. Once the recovery is well  established, the Banco de Portugal could consider introducing a positive rated countercyclical  capital buffer or a sectoral systemic risk buffer against potential macro-financial risks from  banks’ real-estate exposures."

What about consumer protection? We'll have more on this.

Previously on Sri Lanka, now turning to a Chinese bank: "During the 2022 IMF and World Bank Spring Meetings in Washington, D.C., IMF Managing Director Kristalina Georgieva and other senior members of IMF management met with a Sri Lankan delegation, led by Finance Minister Ali Sabry and Central Bank of Sri Lanka Governor Nandalal Weerasinghe, and discussed policy actions to address economic challenges. The IMF team for Sri Lanka held initial technical discussions on an IMF-supported program with the delegation. Masahiro Nozaki, mission chief for Sri Lanka, issued the following statement today:  “During April 18–22, the Sri Lankan delegation and the IMF team had fruitful technical discussions on the authorities’ request for an IMF-supported program. The discussions covered recent economic and financial developments in Sri Lanka, the need for implementing a credible and coherent strategy to restore macroeconomic stability, and the importance of stronger social safety nets to mitigate the adverse impact of the current economic crisis on the poor and vulnerable. The IMF team welcomed the authorities’ plan to engage in a collaborative dialogue with their creditors.  “Going forward, the IMF team will support Sri Lanka’s efforts to overcome the current economic crisis by working closely with the authorities on their economic program, and by engaging with all other stakeholders in support of a timely resolution of the crisis.”
  On Haiti, which Inner City Press also covers in relation to the UN's failures there including introducing cholera and paying nothing for it, Rice said the IMF has been the number one provider of external finance to the country since 2019 and said more information is coming. Watch this site, and video here.

  Back on March 17 on South Africa Inner City Press asked about the critique of the IMF and its program by the Economic Freedom Fighters. Rice said the IMF is in dialogue with them and other civil society groups.
 
  On the widely (mis) reported suspension at the UN of Russia's Alexei Mozhin from a role in the IMF, Rice said it is from a ceremonial role only.

  Back on February 10, Inner City Press asked Rice about crypto-currency in El Salvador and the arrest that week of Bitfinex hackers / launderers Lichtenstein and Morgan, as well as about Ghana.

Inner City Press asked: "On bitcoin and El Salvador, after the IMF's recommendation on removing Bitcoin’s legal tender status, what is the IMFs' response to Treasury minister Alejandro Zelaya saying that “no international organisation is going to make us do anything, anything at all... Countries are sovereign nations and they take sovereign decisions about public policy," and separately to a published theory that as the world’s lender of last resort to sovereign nations, the IMF is looking to have fewer, not more, borrowers?" - and about Lichtenstein.

  Rice on the question of whether the continued use of Bitcoin would preclude a program with El Salvador said these things need to be discussed. Inner City Press also asked, "On Ghana, what are the IMF's communications with / thinking on the country given reports that Ghana’s downgrade by Moody’s leaves the government needing to agree a package with the IMF to achieve policy credibility?" Rice said there has been no Ghana request, but the IMF stands ready. He also answered on Tunisia and El Salvador, on which Inner City Press also asked questions.

Previously, from IMF transcript of Dec 16, 2021: 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

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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