By Matthew Russell Lee

UNITED NATIONS, December 11 -- With IMF quota reform not included in the more than 1000 pages of the US Continuing Resolution / Omnibus known as CRomnibus, what now will IMF Managing Director Christine Lagarde do?

  At the first IMF embargoed press briefing in four weeks, Deputy Spokesperson William Murray was asked (Inner City Press submitted this and five other questions before the briefing, see below.)

  Murray referred to Lagarde's Work Plan for 2015, also under embargo until 10:30 am. Now, at that time, here it is, Paragraph 12:

"12. Governance and resources. Prompt entry into force of the 2010 Quota and Governance reforms is of utmost importance to preserve the quota-based nature of the IMF, and strengthen its legitimacy, effectiveness and relevance. In line with the IMFC’s
commitment to maintaining a strong and adequately-resourced IMF, steps will also be taken to ensure the availability of sufficient Fund resources for crisis prevention and resolution. As
flagged in the Spring WP, in the event that the 2010 Board Reform Amendment and the 14th General Review of Quotas have not become effective by the end of 2014, a Board meeting
on alternative options for rebalancing quotas and increasing Fund resources will be scheduled for January 2015. The Board will discuss a draft report to the Board of Governors on the
15th General Review of Quotas before the end-January deadline for the completion of the 9 Review. The timing of Board meetings on the 15th General Review and on revisions to the
quota formula will be determined, taking into account progress made in ratifying the 2010 reforms."

 So there will be an IMF Board meeting in January on the topic. Murray said the date of the next briefing, in January, is not yet set, pending the date of Lagarde's cusp of the year speech then travel to Davos. Watch this site.

  Inner City Press on December 11 - actually, submitted December 10 -- asked:

  Watch this site.

By Matthew Russell Lee

UNITED NATIONS, October 10 -- With the International Monetary Fund having its Annual Meeting, Managing Director Christine Lagarde began by saying the quota reform, blocked by the US, is crucial.
 
  Then at the IMF's October 10 press conference about the Middle East, even as Press questions about Yemen and other topics were pending, the IMF called on USAID to ask a question about Syria.

  See video here at Minute 41, question of Mona Yacoubian, USAID's Deputy Assistant Administrator for the Middle East Bureau.

   The IMF's transcript omits that the question was from USAID, that the questioner said, "Mona Yacoubian from USAID."

  It is often said that these press conference are limited to the media, including to the Free UN Coalition for Access which advocates for press access including at the IMF. How then can a US government agency ask a question about Syria? And what does it mean?

  Inner City Press submitted a question on October 10 about Yemen, still not answered, and during the Africa briefing about Mali and South Sudan. Does the IMF answer questions from the US government but not from the press? Was it just a mistake?

    Back on October 6 with the dispute between Argentina and hedge or vulture funds more and more discussed, the International Monetary Fund released a paper and held an embargoed press call on the topic of "Strengthening the Contractual Framework to Address Collective Action Problems in Sovereign Debt Restructuring."

  Inner City Press asked the IMF's Sean Hagan, General Counsel and Director of the IMF's Legal Department, how his "market based" approach relates to the vote take last month in the UN General Assembly and to respond to the critique that the lack of quota reform at the IMF undermines the legitimacy of its approach.

   Hagan said the UNGA's approach is "treaty based," and that

  But in essence the membership of the IMF is the same as the UN General Assembly -- it's just that in the IMF votes are weighed to wealth, measured in the past. The UN is controlled by five permanently veto-wielding Security Council members. At the IMF for now there is one veto: the US.

  Hagan made much of Kazakhstan including some of the IMF supported language in its most recent bond issuance. He mentioned copycat litigation, already pending in Grenada. He said it seems the issue will be discussed at the upcoming IMF and World Bank Annual Meetings in a session involving "civil society organizations." We'll have more on this.

By Matthew Russell Lee

UNITED NATIONS, October 2 -- Amid the Kenya report released under embargo today by the International Monetary Fund is a review of financial inclusion and technology:

"Financial inclusion continues progressing with mobile-banking loans and deposits driven by M-Shwari (7 million customers in its first year of operations) and higher SME access to credit.

"M-Pesa was introduced in 2007 as a means to transfer money via mobile phones. M-Pesa users deposit money into a 'cell phone account,' and use SMS technology for transfers and 'on demand' payments. Thanks to its use of low-cost technology, overall transaction costs have declined as bills can be paid remotely. Even more importantly, the poor have benefited the most: M-Pesa reaches 84 percent of population earning less than US$2 a day.  M-Shwari, a deposit-lending facility tailored to the poor, has 7 million active customers in over a year of operations. Kenyan farmers benefit from schemes to acquire equipment, like water pumps, with repayments being made through M-Pesa; M-Kopa allows the use of solar panels in areas not served by the power grid, with repayments in small installments."

   Whether in other contexts the IMF is promoting financial inclusion is another question. But there is much to be learned from Kenya - including for lower income parts of the ostensibly developed world. We'll have more on this.

  On October 1 at the UN, Inner City Press and the Free UN Coalition for Access pushed for and reported on a briefing about African Regional Economic Communities, here.

  Back on September 25, with Ghana hosting an International Monetary Fund visit, Inner City Press asked IMF Spokesperson Gerry Rice about what Ghana’s President John Mahama said this week at the New York Stock Exchange: "It is my hope that by January we should start a three-year IMF program to try and stabilize the macroeconomic environment.”

Rice took the question from Inner City Press and said "I can tell you we currently have an IMF team in Accra to initiate discussions on a program. We will have a press release at the end of that mission. The context is, indeed, that the Ghana authorities initiated discussion on an economic program that could be supported by the Fund. Those are the discussions that are then taking place. So it's premature to have dates and more details on that process because the team is in Ghana. We’re expecting it to conclude this week, and we will communicate at the right time."

  Then this, concluding that "discussions on a possible program that could be supported by the IMF will continue in Washington during the Annual Meetings."

  Inner City Press also submitted this question on September 25: “Ukraine PM Yatseniuk yesterday said, 'We do understand that we have to readjust the program. Because when we started the program with the IMF, it was a peace program. For today, this is a wartime government and a wartime program.' What is the IMF's response to / comment on this?”

  While Rice said that there was no request for any “readjustment” yet, that the IMF will combine two reviews in November with an eye toward its Executive Board meeting on Ukraine at the end of the year or early 2015. He said the purpose of such reviews, generally, is readjustment.

  But Rice did in this answer address the appropriateness of IMF lending into what Yatseniuk called “a wartime government and a wartime program" speaking at the Council on Foreign Relations in New York. We'll have more on this as well.

By Matthew Russell Lee

UNITED NATIONS, September 25 -- With Ghana hosting an International Monetary Fund visit, Inner City Press asked IMF Spokesperson Gerry Rice at his embargoed briefing on September 25 about what Ghana’s President John Mahama said this week at the New York Stock Exchange: "It is my hope that by January we should start a three-year IMF program to try and stabilize the macroeconomic environment.”

Rice took the question from Inner City Press and said yes, an IMF team is in Accra discussing a program, and will have something to say once the visit concludes.

  Inner City Press also submitted this question: “Ukraine PM Yatseniuk yesterday said, 'We do understand that we have to readjust the program. Because when we started the program with the IMF, it was a peace program. For today, this is a wartime government and a wartime program.' What is the IMF's response to / comment on this?”

  While Rice said that there was no request for any “readjustment” yet, that the IMF will combine two reviews in November with an eye toward its Executive Board meeting on Ukraine at the end of the year or early 2015. He said the purpose of such reviews, generally, is readjustment.

  But Rice did in this answer address the appropriateness of IMF lending into what Yatseniuk called “a wartime government and a wartime program" speaking at the Council on Foreign Relations in New York. We'll have more on this.

By Matthew Russell Lee

UNITED NATIONS, September 18 -- When the UN presented its "State of the Global Partnership for Development" report on September 18, it said that three countries not being processed for debt relief -- Somalia, Eritrea and Sudan -- are only treated that way because they have no national economic plans.

  Inner City Press challenged this, noting public discussions of blocking any debt relief to Sudan, which like Eritrea and Somalia is under UN sanctions.  In response, UN DESA tried to say it was a matter of stability and being in conflict.

   But the IMF continues working on a program with Mali, certainly in more conflict than Eritrea, despite the untransparent purchase of a new jet by Mali's president.

   Inner City Press has asked the International Monetary Fund about Mali, and on July 10 was told the IMF has suspended its program at least until toward the end of this year, IMF spokesperson Gerry Rice answered Inner City Press.  Video here, from Minute 19:30.  Since then, IMF visits and work toward unlocking money has proceeded.

  If the UN and its DESA obfuscate the reasons countries like Somalia, Sudan and Eritrea don't get debt relief, what else are they obfuscating?

Footnote on how the UN runs briefings: on September 18 initially the first question was being given to a reporter who actually covers development. But the UN Correspondents Association's representative complained, demanding a set aside, and got it, along with an apology. Then asked a softball question, not following up on a false answer and in all probability not reporting on it. It's asking the (first) question just for the sake of it, the UN's Censorship Alliance whose Executive Committee worked to try to get the investigative Press thrown out of the UN and remains UNreformed. The new Free UN Coalition for Access opposes set-asides, especially for the UN's Censorship Alliance.

By Matthew Russell Lee

UNITED NATIONS, September 11 -- Two days after 124 nations in the UN General Assembly voted to start a process on sovereign debt restructuring, Inner City Press asked the International Monetary Fund, "What is the IMF's comment on the “sovereign debt restructuring” resolution adopted by the UN General Assembly on September 9? The resolution cites the IMF's work on the issues, in 2003."

  At the IMF's embargoed briefing on September 11, IMF spokesperson William Murray provided a long answer, including that the IMF is working on a "market based" solution, particularly on debt contractual terms to prevent "hold out" problems. He mentioned, as he had to, Argentina, which has had it own contentious relation with the IMF.

  Clearly, Argentina -- and Bolivia as chair of the Group of 77 -- were aware of these IMF efforts when they pursued the issue in the UN General Assembly. We'll have more on this.

  In the last briefing, Inner City Press asked the IMF about ebola. This time, Murray cited the economies of Liberia and Sierra Leone shrinking 3 to 3.5%, and Guinea by 1.5%.

  On Portugal, he said the IMF has received no communication about an early pay-off.

  Inner City Press also asked the IMF for its view of Cyrus' foreclosure laws -- sounds like the IMF doesn't like them -- as well as Yemen and Egypt:

  We'll have more on this as well.

When Argentina's foreign minister Héctor Timerman held a press conference at the UN at 5:30 pm on September 9, he was flanked not only by Argentina's ambassador to the UN Maria Cristina Perceval but also the chair of the Group of 77, Sacha Llorenti of Bolivia.

  They spoke of 11 countries opposing their resolution on sovereign debt and vultures funds, or sovereign debt restructuring, including the United States. Timerman took the high road, saying that Argentina would present a project with the G77 and speak with all opponents.

  He asked how the UN General Assembly, which he called the most democratic forum, could be involved in so many fields but not this one. Why indeed.

By Matthew Russell Lee

UNITED NATIONS, July 10 -- On Mali, the International Monetary Fund has suspended its program at least until toward the end of this year, IMF spokesperson Gerry Rice answered Inner City Press on July 10.  Video here, from Minute 19:30.

  There will be an audit, and (re) consideration of procurement systems. This comes as UN officials including UN Peacekeeping chief Herve Ladsous visit Mali talking about cooperation in fighting crime -- apparently not including the President's new $40 million plane and no-bid contracts.

  Inner City Press also asked the IMF, in its embargoed briefing on the morning of July 10, about Romania and Pakistan.

On Romania, what is the IMF's comment on President Basescu now rejecting the planned social security tax cut, pending measures that would cover a likely revenue shortfall?

  Rice said that off-setting measures are needed; video here, transcript below.

In Pakistan, the Bureau of Statistics (PBS) has abandoned the policy of releasing national accounts on a quarterly basis, described as “a violation of the IMF's guidelines on good statistical practice” - is that the case? Any IMF comment?

  Rice spoke of the IMF's technical assistance; video here, transcript of all three questions here:

MR. RICE:  There are a few questions from InnerCity Press, so let me just -- let me just take some of them, I won't take them all, but they may be of interest to -- more broadly.

One is on Romania. "What is the IMF's comment on President Basescu's now rejecting the planned Social Security tax cut, pending measures that would cover a likely revenue shortfall?"

Maybe just stepping back and setting that question in context. The joint IMF/EC Mission had constructive discussions with the Romanian authorities, so far on how to ensure further progress on the third review of the current program. Some key issues remain outstanding so those discussions continue.

On the specific question, I would say that while the Fund shares the objective of lowering the high tax burden on labor in an effort to stimulate employment, we need to understand how the government intends to compensate the revenue shortfall. Without offsetting measures, a reduction of the Social Security contribution rate by 5 percentage points, would increase the fiscal gap.

A question on Mali. "Can you provide an update on the IMF's review of the two contracts that were awarded without competitive bidding, including the purchase of a new plane for the President?"

Again, just setting the context; the first review under the current extended credit facility, which had been initially scheduled for June, is being postponed following the recent discovery of a series of problematic transactions which reveal weaknesses in public financial management.

Now, a delegation led by the Minister of Economy and Finance, visited Washington for a few days of talks in June, and reached an agreement with the IMF on remedial measures which include an audit of the transactions by the Independent Government Auditor, and a tightening of the Procurement Code. And at the end of that visit the Minister and the Mission Chief issued a joint declaration which we published.

So what's the status? The status is that as per that joint statement, the reviews, again, under the ECF arrangement, have been postponed until September, and related disbursements would only happen toward the end of the year, at the earliest.

So, again, the conclusion of the reviews will depend on the implementation of the remedial measures and, again, in line with this, any related support in the form of a disbursement would only happen following approval by the reviews by our Executive Board.

One other question that I will take, which is on Pakistan. "The Bureau of Statistics has abandoned the policy of releasing national accounts on a quarterly basis, described as a 'violation of the IMF's guidelines on good statistical practice' is that the case? What is your comment?"

My comment is that the IMF has been providing technical assistance to Pakistan on improving national account statistics with significant progress observed over the course of the last year. The upcoming mission, which is scheduled for early August, will follow up on latest developments with data dissemination.

A question that was not (yet) answer was this, on Jamaica:

In Jamaica, Opposition Spokesman on Finance Audley Shaw has said that Managing Director Lagarde “crossed the line from being non-political to making statements, which can be construed as political interference.” What is the IMF's or MD's response?

  Watch this site. 

By Matthew Russell Lee

UNITED NATIONS, July 3 -- In the International Monetary Fund's final Article IV consultation report on France issued under embargo on July 3 there is an elephant in the room, or in the report: BNP Paribas, its violations of sanctions and nearly $9 billion fine. Click here for Inner City Press' coverage of the settlement.

  The IMF today says of France that its "Directors observed that the economy and public finances are better shielded from banking shocks thanks to the efforts made by banks to build stronger liquidity and capital buffers and to an improved bank resolution framework. However, they noted that the regulatory framework is still evolving."

 Still evolving away from concealing transactions with Omar al Bashir's Sudan, for example?

  The IMF's eight-page Staff Report mentions BNP only twice: both in charts touting French banks' compliance with Basel III. The 31-page "Selected Issues" does not mention BNP once.

   Then again, now the US Securities & Exchange Commission has given a waiver from BNP suffering the consequences of its actions and plea (click here for a Reuters piece citing Inner City Press' previous work on Chase Manhattan now JPMorgan Chase.)

By Matthew Russell Lee

UNITED NATIONS, June 19 -- What is the International Monetary Fund's response to Romania's plan to cut required social contributions by employers by five percent later this year? Inner City Press asked this and seven other questions on June 19, and got this response from IMF spokesperson Gerry Rice:

“We share the objective of reducing the high tax burden on labor in an effort to stimulate jobs, however the announced cut of the social security rate by five percentage points creates a fiscal gap and will make it difficult to reach the fiscal target in 2015. Offsetting measure need to be identified.”

  The answer is appreciated -- Inner City Press covers Romania and the IMF, for example here -- but this similar question on June 19 by Inner City Press on Slovakia has yet to be answered, by the embargo time:

On Slovakia, what is IMF's response to Finance Minister Peter Kazimir insisting the government will base its decision-making on Slovak legislation stating that the VAT rate should be reduced automatically when the public-finance deficit falls below three percent of GDP?

  Six other questions remain unanswered, including the now-perennial, does the IMF include Western Sahara in its data for Morocco:

On Morocco, can you confirm what central bank governor Abdellatif Jouahri has said, that a new two-year line of credit is being finalized and will “be less than $6.2 billion granted by the fund in 2012-2014”? And again, is Western Sahara included in the IMF's Morocco data? (As submitted)

In Yemen, in light of attacks on power plants and pipelines, what is the status of the IMF's $550 program and its conditions? Is there a concern the cuts to subsidies could lead to further unrest?

In Myanmar, does IMF believe the country is ready for the opening of foreign financial institution, while governance of the Central Bank of Myanmar continue to fall under Myanmar's outgoing central banking law, dating to 1990?

In Ukraine, does IMF have any comment on US giving $10 million to Kyiv for anti-corruption programs? Does the IMF have any view of or comment on President Poroshenko asking Parliament to replace central bank chairman Stepan Kubiv with investment banker Valeria Gontareva, who has no government or regulatory experience? In terms of central bank independence, and in light of the IMF's program with Ukraine?

  This last was partially answered; and the next IMF mission to Ukraine started June 24 in Kyiv and goes for two weeks. Watch this site.

By Matthew Russell Lee

UNITED NATIONS, May 23 -- At the International Monetary Fund's May 22 embargoed briefing, spokesperson Gerry Rice answered Inner City Press' question about the Balkan floods; afterward, his office provided a response on Yemen.

  From the IMF transcript released today, video here from Minute 26:

GERRY RICE: Let me go online for a minute, because I've got a couple of questions here from Matthew Russell Lee. He asked Mali... and about the serious flooding in the Balkans which we're all, of course, very concerned about that. He's asking about the impact on the countries of the Balkans, and Serbia, and Bosnia.

Serbia's, again, been significantly affected. We have great concern, also, about the human casualties and the wide-spread damage, but we do not yet know the full extent of that. As an EU pre-accession country Serbia will be eligible for aid from the EU's disaster Fund.

In the meantime, the IMF engaged with Serbia through our policy advice, as well as in our discussion with other international, financial organizations through our resident representative. On Bosnia, actually, we have a staff team on the ground right now.

  Inner City Press, beyond Mali (reported here), had also asked about Yemen, adding the response to that as an update and now here:

ICP Question: Yemen's Finance Minister said the country will reduce fuel subsidies to get a $500M IMF program, hoped to be concluded by end of May. What is the status, and what about fuel shortages and impacted Yemenis?

IMF Answer: A mission is discussing with the authorities their economic reform program and how the IMF can support them.

  Well, a similar reduction in subsidies by the government in 2005 led protests that left dozens killed and wounded. And now, after deporting a journalism, Yemen says it will inform about its military operations by putting its own videos on YouTube... Watch this site.

By Matthew Russell Lee

UNITED NATIONS, May 8 -- While Ukraine and Greece were the subjects of the first six questions taken at the International Monetary Fund's May 8 embargoed briefing, the IMF impacts countries all over the world. Inner City Press submitted five questions -- on Morocco, Madagascar, Pakistan, Bosnia and Ghana -- the last two of which were read out and answered during the briefing. Video here, filmed from IMF webcast while at UN Security Council stakeout

  On Ghana, Inner City Press asked: the Secretary-General of the Trades Union Congress Kofi Asamoah spoke out on May Day against the government seeking an IMF program. What does the IMF make of it, and would the IMF consult with such opponents if a program were requested?

  IMF spokesperson Gerry Rice said that Ghana has yet to formally request a program - there is a lot of discussion in the country about it, though. The IMF Board after its discussion of the Article IV review will have a press release in due course. He added that the IMF speaks with a range of people, and has spoken with the Trades Union Congress in the past.

  On Bosnia, Inner City Press asked what steps would the IMF require to unfreeze the next tranche of its stand-by program? Does the IMF have any comment on the Federation's May 6 auction of 6-month treasury bills?

  The IMF's spokesperson Rice's answer was long, so with the embargo expired we are uploading the video here, filmed from the IMF webcast while at the UN Security Council stakeout:Rice said the fifth review was completed; the decision by the Parliament to delay decisions including excises on different on tobacco products has delayed completion of the staff review. To go forward, full implementation of the prior actions is needed.

Inner City Press also asked:

  In Pakistan, PTI Information Secretary KPK and MNA Ayesha Gulalai has said, “it is very unfortunate that Pakistan's budget is being prepared by the IMF in Dubai.. instead of taxing the 4 million wealthy identified by the FBR, burden is being passed on to the already burdened masses.” What is the IMF's response?

  On Madagascar, when George Tsibouris on May 6 said the government agreed to "address the issue of fuel price subsidies over time," can you be more specific on how much time the IMF envisions? Also, can the IMF be more specific about what is referred to by "creating a level playing field for the private sector"?

  While the Managing Director is in Morocco, can you answer if Western Sahara is included by the IMF in Morocco's data, and what impact the IMF believes the Western Sahara issue has on Morocco's economy and economic prospects?

This last one, Inner City Press also asked two weeks ago, and again more recently on connection with the IMF's Ukraine program. Watch this site.

  On April 30, the IMF sent this statement to the Press:

  Back on April 24 the IMF said it expected to approve a $14-18 billion program for Ukraine on April 30, while still including Crimea in its Ukraine data, IMF spokesperson Gerry Rice said at the IMF's embargoed briefing on April 24.

  Rice said the IMF expects its $14-18 billion to "unlock" $15 billion in financial assurances that have already been made by others, whom he did not name. He said that the IMF has now received from Kyiv documents covering all "prior actions" or conditions imposed by the IMF.

  Asked if sanctions imposed to "punish" Russia might harm Ukraine, Rice said the IMF position is that current US and European Union sanctions on Russia are unlikely to have a significant effect on the Ukrainian economy. He said the IMF believes the more substantial risk is from the possible further escalation of tensions.

  On the IMF still including Crimea in its Ukraine data, Rice would not explain except to add that Crimea is only 3.7% of its Ukrainian data. Asked for analogies to lending to Ukraine at this time, Rice cited past IMF programs in Bosnia, Sri Lanka and Peru, calling them "fragile" and with "political tensions."

While the IMF answered three of the six questions Inner City Press submitted during the briefing, its question concerning whether the IMF still includes Abkhazia and South Ossetia in its Georgia data was not answered -- nor whether it includes Western Sahara in its Morocco data.

  The inclusion of Crimea in the IMF's Ukraine data raises the question of the relation between the UN General Assembly vote, with 58 abstentions, on the Crimean referendum and the International Monetary Fund, as well as the US Congress' refusal to pass the IMF quota reforms which US President Obama agreed to in 2010.