Transcript

Transcript of IMF Press Briefing

September 12, 2024

SPEAKER: Julie Kozack, Director of the Communications Department, IMF

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KOZACK: Good morning to those of you here in person and those online as well. Welcome to this IMF press briefing.  I'm Julie Kozack, Director of the Communications Department of the IMF.  As usual, this briefing is embargoed until 11:00 a.m. Eastern Time in the United States.  I will start with some announcements and then I'll be very happy to take your questions in person on Webex and via the Press Center. 

     First, starting with the Managing Director's travel.  Managing Director Kristalina Georgieva will attend the informal Ecofin meeting today, taking place, sorry, tomorrow, Friday, September 13th, in Budapest, Hungary.  While in Budapest, the MD will hold bilateral meetings with several counterparts.  During the week of September 23rd, the Managing Director will be in New York City for the 79th General Assembly of the United Nations.  While in New York, she will hold bilateral meetings and participate in multiple events.  The Media Relations team will share with you the list of events in due course. 

     Turning now to our First Deputy Managing Director.  FDMD Gita Gopinath will be delivering the Whitaker Lecture at the Bank of Ireland on Wednesday, September 18th.  An embargoed draft of the speech will be made available the day before on the IMF's Press Center. 

     Deputy Managing Director Bo Li will be visiting Astana, Kazakhstan on Monday, September 16^th, to meet with the authorities, engage with various stakeholders, including students, to discuss economic prospects for the region.

     And Deputy Managing Director Kenji Okamura will be in Mongolia on October 3rd and 4th to meet with the authorities. 

     And finally, on Friday, September 20th, ECB President Christine Lagarde will give a lecture at the 2024 Michel Camdessus Central Banking Conference, followed by a one-on-one conversation with IMF Managing Director Kristalina Georgieva.  The conference will be held here at IMF headquarters in Washington, D.C. 

     And with that, I will now open the floor for your questions.  For those connecting virtually, please turn on both your camera and the microphone when speaking. 

     QUESTIONER: My question is on Federal Reserve monetary policy.  Federal Reserve is expected next week to start cutting rate and market participants expect successive rate cuts.  Managing Director called for repeatedly that some prudent approach for central bankers regarding conducting easing policies.  And what is your view on the next week's movement of Federal Reserve and what impact do you expect, especially on the global market? 

KOZACK: Any other questions on this topic? So, I think it's important to start to say that the performance of the U.S. economy has been remarkably strong over the past few years, and the disinflation process has proven less costly than most had feared.  The U.S. is the only G-20 economy whose GDP level now exceeds the pre-pandemic trend.  And this is not only good for the United States, but also good for the global economy.

     With respect to inflation, inflation has declined in response to the Fed's actions, and we see inflation on a path to the 2 percent target.  The Fed's efforts were aided by important supply side gains and strong productivity growth.  We expect course PCE inflation to end this year around 2.5 percent and be back to target by mid 2025.  There is less upside risk to this path than we saw earlier this year.  With this recent data, it shows that the balance of risks has clearly shifted with labor markets cooling and upside risks to inflation, as I just noted, less pronounced.  And that means that we see the imminent start of a loosening cycle as telegraphed by the Fed as appropriate. 

     That said, the upside risks, while less, have not entirely disappeared.  Upside risks to inflation, that is.  And the Fed will have to continue to calibrate the pace and extent of rate cuts with incoming economic data going forward. 

QUESTIONER: Thank you.  So, in the last statement on Ukraine, I mean the Staff-Level Agreement, the IMF emphasized the need for reforms and increasing tax revenues by 2025.  So, could you please name the specific policy measures that Ukraine should take?  And secondly, do we have a schedule for the Board meeting on Ukraine to approve the SLA?

KOZACK: Any other questions on Ukraine?

QUESTIONER: I wanted to ask about the Russian frozen central bank assets and whether the Staff-Level Agreement considers the $50 billion G7 Loan backed by the frozen assets as part of Ukraine's External Financing Program?  And if so, what kind of assurances did it receive from Ukraine, U.S., EU or other G7 partners that the program will be in place next year and that the funds will be timely and predictable?

KOZACK: Anything else on Ukraine? On September 10th, so just a few days ago, IMF Staff and the Ukrainian authorities reached a Staff-Level Agreement for the Fifth Review under the EFF Program.  Ukraine would have access to $1.1 billion, following approval or subject to approval of our Executive Board.  We do expect the Board meeting to take place in the coming weeks.  Overall program performance remains strong.  The authorities met all end-June quantitative performance criteria and structural benchmarks for the Fifth Review, and understandings were also reached on policies and reforms to sustain macroeconomic stability as the war continues. 

  With respect to the specific question on taxes and revenues for 2025, what I can say is that domestic revenue mobilization over the medium term is a key pillar of the program.  It will help create space for critical spending, and it is essential to preserve buffers and restore fiscal and debt sustainability. 

  With respect to the financing question, the G7 authorities are in intensive discussions on the modalities and terms and conditions of fulfilling their pledge to provide $50 billion in financial support to Ukraine via the Extraordinary Revenue Acceleration, otherwise known as ERA.  It is important that this support is provided to Ukraine in a way that is consistent with restoring debt sustainability, which the G7 has pledged to do. 

QUESTIONER: On Pakistan, what we have seen Prime Minister Sharif today said that the country has completed all the IMF requirements with the help of friendly countries.  So do you think Pakistan's EFF program can be scheduled for the Board's approval before October meetings?  And secondly, would IMF wait for Pakistan's friendly countries to confirm their commitments for Pakistan to IMF or the Prime Minister's statement is after all the due diligence?

KOZACK: Any other questions on Pakistan?

QUESTIONER: I think it's in the same vein as just the reason for the delay in the expected Board consideration, which had, I think, originally been scheduled or expected sometime in August, but has not yet happened.  And the external financing gap that the Pakistani authorities have talked about that is in the advanced stage but needs to be completed, and whether that is the reason that we have not yet seen that Board consideration. 

KOZACK: So, IMF Staff, as you know, reached a Staff-Level Agreement with the Pakistani authorities on a new 37-month EFF arrangement on July 12th of 2024. And we are very happy that we can say now that the Board meeting is scheduled to take place on September 25th.  And this is following Pakistan obtaining necessary financing assurances from its development partners.  This new EFF arrangement that will be subject to Board approval follows the successful implementation of the 2023 9-month Stand-by Arrangement.  Consistent policy making has supported economic stability in Pakistan, most notably a resumption of growth, a significant disinflation, and a significant increase in the country's international reserves. 

QUESTIONER: So Pakistan has received those assurances? KOZACK: Yes.

QUESTIONER: My question is about Russia.  Next week, the IMF is going to start its First Consultations with Russian authorities on economic developments and policies since 2021.  And I wonder, why did the IMF decide to make this trip right now?  And during the upcoming travel to Russia, who do they plan to meet with, and are there any arrangements or discussions to meet with Ksenia Yudaeva as the next Executive Director from Russia in the IMF?  Thank you.

KOZACK: Another one on Russia?

 QUESTIONER: Just on the sequencing of the Russia Article IV mission, who initiated the restart of the Article IV missions, which we haven't seen since 2021, whether it was a Russian request or an IMF initiation of restarting that process, and anything else you can tell us about the events that led to the Article IV’s being restarted. 

KOZACK: Any other questions on Russia? Okay, so on the Article IV.  So the IMF and all of our member countries have a mutual obligation to conduct Article IV Consultations.  It's in our articles of agreement.  Actually, in the case of Russia, since the invasion of Ukraine in 2022, the economic situation has been exceptionally unsettled, which has made it difficult to anchor Article IV Consultations, especially thinking about the outlook and policy frameworks for both the near- and the medium-term.  Now that the economic situation is more settled, Article IV Consultations with Russia are resuming, as I said at the beginning, in line with the obligations of both the Fund and the member country.

   As part of the upcoming Article IV Consultation, the team will hold bilateral discussions with the Russian authorities.  It will hold both virtual discussions from September 16th, and then the team will travel to the country for in person meetings.  As is the case for all Article IV Consultations, the team will meet with a number of different stakeholders to discuss the country's economic developments, prospects, and policies.  And I think that I'll leave it at that. 

QUESTIONER: So I guess I will start with, if you can provide updates on Nigeria, Zimbabwe, Benin, Lesotho, and Uganda.  And on Kenya, the Kenya government this week is asking the public for input on the economic agenda.  And I know the last time we were here, we talked about providing assistance to Kenya.  So how do you see this?  How will it impact the government agenda?  And do you approve of what the government is doing, seeking approval from the public? 

KOZACK: So that's -- so maybe let's start with Kenya.

  Okay, let me start with Kenya.  So, as we’ve discussed here before, Kenya’s situation does reflect broader challenges that are facing many countries in Sub-Saharan Africa.  The region is experiencing a significant funding squeeze due to tighter global financial conditions and the reduced availability of concessional financing.  Policymakers in the region, including in Kenya, face a complex balancing act.  There's pressing spending needs in some priority areas, such as social programs, health and education.  They also have to manage rising public debt, and they're also looking to boost their own domestic revenues.  For Kenya, the goal of the program is to help establish sound macroeconomic fundamentals, which we see as crucial for fostering sustainable and inclusive growth, as well as for generating jobs, especially for young Kenyans. 

   The program includes initiatives to improve governance and transparency and to ensure the proper use, to ensure the responsible use of public funds.  But it is also important that these policies go through a process of broad consultation so that they can gain the necessary public support.  And we're currently working with the authorities to ensure that the objectives of the program can be met. 

   Right now, there is an IMF staff visit in Kenya.  This is a fact-finding mission and is part of our ongoing and constructive dialogue with the Kenyan authorities to find a balanced path forward.  And we'll provide further updates after the visit concludes. 

   What I'm going to do, is I don't have updates on several of the other countries that you listed, so I'm going to go around and then if we have time, we'll come back.  Otherwise we'll come back to you -- my colleagues will come back to you on some of the other countries. 

QUESTIONER: Thank you.

KOZACK: So I'm going to go online.

QUESTIONER: The Spanish government has appointed a member of its own government, a minister, as the governor of the Bank of Spain, as a situation that has caused some controversy in the country.  What is your opinion of the government's direct presence in an institution like the Bank of Spain that should be independent? 

KOZACK: So, I think our overall position when it comes to central bank independence, I think is very well known, which is that what is most relevant for central banks is to maintain operational autonomy supported by independent analysis. The Bank of Spain has been successful on these fronts and we're very much looking forward for this to continue under Mr. Escrivá’s tenure. 

QUESTIONER: I just wonder if you could circle back to your answer on the US, the U.S. economic situation.  You mentioned that the balance of risk has shifted.  Are you concerned at all that the deterioration in the job market is starting to point the scales toward recession?  And, you know, does that maybe require a more forceful response?  Is that what you're saying by the, the need to calibrate rate decisions by the Fed?  And just to clarify, when you say it's an imminent loosening, you're talking about next week's meeting.  It's appropriate to start next week?

KOZACK: So, with respect to the balance of risks, I think I did speak to the balance of risks on inflation, where we see that upside risks to inflation have lessened. We also do expect that the U.S. economy will slow going forward but will still be growing.  So on a fourth quarter over fourth quarter basis, by the end of this year, our forecast was for the U.S. to be growing at around 2 percent.  I would also say that we will be updating these forecasts as part of our exercise in October, our World Economic Outlook exercise, and so the team will be taking a fresh look at all of these -- the data at that time. 

   And with respect to the question, yes, we do see the imminent, next week, start to a loosening cycle as telegraphed by the Fed, as appropriate. 

QUESTIONER: Thank you. On Argentina, my first question is related to the economic plan that is implemented with the national authorities.  How do you assess the progress of the economic program, and do you think, as the local authority thinks, believe, that the worst is over in terms of recession?  And of course, have the new talks began about a new program?  Sorry, have the new conversation start with concerning to a new program?  Sorry.  Thank you.

KOZACK: Thanks. Any other question on Argentina?

QUESTIONER: Thank you for taking my question.  I have a non program question [on Argentina].  There's a litigation in U.S. courts regarding the saturation of YPF with two funds, Petersen (Energia) and Eton Park (Capital Management).  There's a discovery process ongoing in the american justice system that could potentially end up in the disclosure of emails between Argentine officials and IMF officials.  The litigators have asked for information regarding communications between the Minister of Economy, Luis Caputo, and the former Minister of Economy, Sergio Massa.  My question is, is the IMF following this case, and are you concerned that potentially some confidential conversations between IMF officials and Argentine's officials could be disclosed?  Thanks. 

KOZACK: Okay, thank you. Next question?

QUESTIONER: The Fund has said in many occasions that the government needed to look after the most vulnerable, and that included pensions.  And yesterday the government vetoed a new raise -- a new change of the pension formula.  And I was wondering, what's the IMF take on that measure, also regarding its fiscal implications. 

QUESTIONER: Thank you.  So, the question is, private reports indicate that the central bank of Argentina lost about $4,000 million dollars in reserves in the last quarter.  So is the IMF concerned about the possibility that Argentina may not reach the reserves goal for the third quarter in the context of the Ninth Review of course.  Thank you. 

KOZACK: I also see we have some questions online. We also received a few questions online regarding criticism against the IMF's Director of Western Hemisphere Department.  So let me try to pool all these questions and try to get through them. 

   So, first, just stepping back with respect to Argentina.  So, since the successful conclusion of the Eight Review of the EFF, you know, the Argentine authorities have continued to implement the program.  Data through the middle of 2024 suggests that fiscal and reserve targets were met and that the authorities continue to address the longstanding imbalances facing the country.  Implementation of the program has resulted in a sizable reduction in inflation and there are signs of a nascent recovery in economic activity and real wages.  IMF Staff are working closely with the Argentine authorities.  Technical discussions are ongoing within the context of the current EFF program, and we'll provide more information when it's available. 

   With respect to some of the more specific questions on the issue of pensions, we do take note of the recent developments in Congress, and we continue to emphasize the importance of meeting fiscal targets to support a further reduction in inflation and enhance overall policy credibility.  In this context, we agree with the government's objectives of strengthening the overall sustainability of the pension system, while also protecting the real value of pensions, especially for lower income retirees. 

   With respect to the questions on the courts and YPF, all I can say is that as a matter of practice, the Fund does not comment on ongoing legal disputes involving our member countries.

    And finally, on the questions regarding the Director of the Western Hemisphere Department, what I can say there is that to best support the ongoing constructive engagement with the Argentine authorities,  Western Hemisphere Director, Rodrigo Valdés, has fully delegated program negotiations to Luis Cubeddu, the Deputy Director of the Western Hemisphere Department, and Ashvin Ahuja, the Argentina Mission Chief, whose work is directly overseen by Fund management. 

   And I'm going to go back to the room. 

QUESTIONER: Thank you.  You mentioned Kenya.  It's one of nine countries that are paying surcharges to the IMF.  There's been a lot of talk about reforming that system.  You know, it's pro-cyclical.  It adds costs to these debt burdened countries.  So CEPR, the Center for Economic and Policy Research, probably saw, but released a report this week.  There's all these rumors about possible reforms.  Congress has legislation to abolish the system.  I was wondering if you could talk a little bit about, you know, are we looking at reforming it?  Are we looking at abolishing it altogether?  Is this something that you expect to come up at the Annual Meetings next month?  Thank you. 

KOZACK: Okay, so on surcharges, we are in the process of undertaking a comprehensive review of the surcharge policy. The last review of this policy was conducted in 2016.  So quite some time ago.  Over the past years, the Executive Board of the IMF has discussed the role of surcharges already on several occasions.  But it's mainly been in the context of reviews of the IMF's precautionary balances.  And you may recall that we did -- the IMF did meet its target for precautionary balances earlier this year. 

   So work and engagement on the review of surcharges is underway, and engagement with our Executive Board has already started.  The ongoing review will take stock of experience with the implementation of the surcharge policy since the last review in 2016, and it may result in changes to the policy.  Any changes would have to take into account the implications for borrowing members, as well as the IMF's credit risk management framework.  The review aims ultimately to ensure that the IMF can continue to provide financing at affordable rates to the members who need our support.  And so we will provide further updates on the timing and details of the policy as they become available.

    I'm going to go back online now.

QUESTIONER: Thanks a lot.  Thanks for taking these questions, Julie.  I wanted to ask you about Sri Lanka.  There's a big presidential election.  There's a lot of discussion of whether any interaction with the debt sustainability analysis would put back a program a long time.  Can you just speak to what the relation of those two are?  And in Bangladesh, I think it's reported they have a $5 billion request out to the IMF.  I wanted to know what the timing on that would be.  And finally, the Executive Director for the Russian Federation, Ksenia Yudaeva, it's reported that she might not be able to -- I don't know if that's true or not -- come to actually serve in the United States or in DC.  Is that -- what is the protocol for that?  Thanks a lot. 

KOZACK: Okay, thank you. Any other questions on Sri Lanka or Bangladesh?

QUESTIONER: Thank you.  I wanted to ask about Sri Lanka and whether there is any possibility of reopening the program negotiations based upon the potential -- based on the possible results of the September 21 presidential election and what the elections implications could be for that $3 billion program existing currently with Sri Lanka. 

KOZACK: Okay, I'll start with Sri Lanka. So, just stepping back for a moment.  On June 12th of 2024, our Executive Board completed the 2024 Article IV Consultation and the Second Review of the EFF program.  That provided the country with access of about $336 million U.S. dollars.  Program performance remains strong.  Reform efforts are bearing fruit.  Economic growth is starting to revive.  Inflation is coming down.  Reserves, international reserves are increasing, and revenue mobilization is improving.  Nonetheless, important vulnerabilities do remain, and sustaining reform momentum is going to be essential.

   Regarding some of the specific questions about the presidential elections, first, it's very important to note, of course, that for the upcoming elections, this is really for the people of Sri Lanka to decide, right.  Achieving the program's objectives is a key priority to give Sri Lanka a chance to emerge from one of its worst crises in history.  As I've already noted, a lot of progress has been made, but the country is not out of the woods yet, and it is important to safeguard those hard won gains. 

   So, turning to Bangladesh.  First, I do want to say that we are deeply saddened by the loss of lives and injuries during the recent protests.  It is very distressing to -- it was very distressing to hear about those losses of lives.  From the IMF side, we are working closely with the interim government.  An IMF team will visit Bangladesh in late September for a fact-finding mission and to discuss recent economic developments, and further details about the Staff visit will be communicated in due course. 

   We remain fully committed to working with Bangladesh and to in support of the people within the context of the IMF program, we will continue to work closely with the authorities to help advance the reform agenda.  And, of course, as part of the upcoming mission, the team will be assessing all of the economic developments and any potential financing needs. 

   On Russia, with respect to the nomination of the Executive Director, I'll just explain a little bit the process.  Executive Directors at the IMF represent either individual countries or groups of countries at the IMF's Executive Board.  Executive Directors are nominated by either their member countries or groups of countries, and they are elected on to the IMF's Board by the member country or the group of countries that they would represent.  This election and voting process is currently underway, so it would be premature for me to comment further. 

QUESTIONER: The next question, and the last one from my side, is about BRICS.  So, recently, Russian presidential aide Yury Ushakov confirmed that Turkey has applied to full fledged participation in BRICS and it is now under consideration.  I just wondering, does the fund see any danger in BRICS?  Do you agree with the former UK president -- UK prime minister Gordon Brown, who has written in the column for the IMF, that BRICS growth demonstrates that countries are creating more opportunistic and potentially dangerous lessons?  Thank you. 

KOZACK: So, with respect to the BRICS or any other groups of countries, our view is that improved and expanding international cooperation and deepening trade and investment ties among groups of countries should be welcomed and encouraged, provided that they aim at reducing fragmentation and reducing trade and investment costs among members. The decision to join such initiatives is a sovereign decision of each member country.  And I'll leave it at that. 

   I'm going to go online, we had a question on Sri Lanka. 

QUESTIONER: Thank you for taking my question.  My question is related to Sri Lanka.  The first one is, several weeks ago, the private creditors reportedly submitted their proposal with regard to the debt restructuring parameters to the IMF.  On Sri Lanka's debt restructuring, is there any update that we can get from the IMF with regard to that?  And secondly, as my colleagues mentioned earlier, September 21st is the presidential election.  And after the presidential election, opposition factions are saying that the DSA, with regard to the EFF program, will be renegotiated or revisited.  Is there any possibility to do that on the IMF's point of view, given that the next review is scheduled somewhere in mid October?  Thank you. 

KOZACK: Great. So, with respect to the question on the debt.  An IMF team visited Colombo earlier in August and issued a Press Release at that time.  As mentioned in the Press Release, the execution of the domestic debt restructuring and finalizing the agreement with the official creditor committee and China EXIM Bank are major milestones.  The Staff assessed that the -- what's the so called joint working framework, and the Staff has also provided an assessment of this framework to the Sri Lankan authorities.  Furthermore, at the request of the Sri Lankan authorities, the IMF staff has shared this assessment with the financial advisors of the country's bondholders. 

   So that is where our role has been on the debt.  And I also just want to reemphasize that with respect to debt restructuring, the IMF does not take part in the negotiations.  In the debt restructuring negotiations and discussions, those negotiations are between the member country and its creditors, with the IMF making an overall assessment of -- of debt sustainability.  And I would also refer you to a Press Release issued by the Sri Lankan authorities which contains further information. 

   With respect to the other question on the DSA [debt sustainability assessment], I think my broad response is essentially the same as it was to some of the earlier questions.  First, with respect to the upcoming presidential elections, this is for the people of Sri Lanka to decide.  From the IMF's position, what we see is a program that has made significant achievements, but that it is important to safeguard these achievements to enable the country to fully emerge from one of its worst crises.  And as mentioned in a Press Release during the timing of the Third Review, the timing of the Third Review will be discussed with the government following the elections.  So we will move forward with program discussions after the presidential elections take place and a new government, or the outcome based on the choice of the people, we will be ready to -- to go with that. 

QUESTIONER: I have a follow up. I have two about Nigeria.  Okay, sorry.  Do you have any updates on Nigeria?  And this week we see the flood in Maiduguri.  Have the government reach out to the IMF or are you working with them on the -- on anything?  And speaking of Nigeria and African nations, the China-African Forum took place recently and the Chinese governments have now pledged that it will invest $50 billion plus over the next three years in Africa across Africa.  So what's the IMF view?  Because African leaders and African activists are saying, we are receiving this money, but we don't know where this fund are going.  So what recommendation regarding making sure this reached the people that actually need it, especially in the marginalized communities?

KOZACK: Okay, let's start with Nigeria. So just to step back, we concluded our Article IV Consultation with Nigeria on May 9th.  The authorities reform efforts to promote growth while bringing down inflation are important to providing economic opportunities for all Nigerians and for addressing rising poverty and food insecurity. 

   With respect to the ongoing floods, our thoughts are with the Nigerian people, especially those that are most affected by the devastating floods that occurred from exceptionally heavy rains.  We already -- this has occurred in a situation where already 31 million Nigerians are affected by food insecurity and the floods are obviously creating substantial challenges, particularly in the affected areas.  The authorities in Nigeria are providing support to affected individuals and communities at the local level. 

From our perspective, what is important is for the government to continue to roll out the cash transfer system.  This is really important to provide relief to affected households.  And given the nature of this crisis, it will require broadening this cash transfer system to cover people in rural areas as well. 

   And with respect to your question on the China-Africa Forum, I don't have a full update for you now.  This is something that, of course, our teams will be assessing.  The potential inflows and investments and they will be making that assessment as part of our upcoming World Economic Outlook and particularly the Regional Economic Outlook for Sub-Saharan Africa.  So I think we'll have more to come on this assessment at the time of the Annual Meetings. 

QUESTIONER: I just want to ask -- if I could ask a follow up question to your comments on the U.S. economy.  You mentioned that the IMF sees the start of the easing cycle as appropriate.  You mentioned the IMF seeing GDP growth slowing.  I wanted to see if it would be possible to elaborate or clarify the further upcoming World Economic Outlook.  You mentioned that there will be -- that the team will be taking a fresh look at the U.S.  Given your holistic comments about the U.S. economy, should we expect that the U.S. growth outlook will be revised lower in the upcoming WEO?  Can you elaborate on or deepen detail the directionality of a revision? 

KOZACK: So what I can say is that the process is underway now. So you'll just have to wait essentially until the WEO [World Economic Outlook] comes out.  I'm not going to comment further.  The teams are working on the data, and they'll be taking into account as much data as possible before our, what we call our cutoff date, after which we have to put the forecast together.  So we'll wait until the last minute to incorporate as much of the data as possible. 

   Let me go online now.  I have a question on Ghana.  The question is, Ghana is close to going to the polls in December 2024.  What has been the conversation between the IMF and the government to ensure that the government remains disciplined and not derailed from the ongoing program? 

   Okay, so let me go to Ghana.  Okay, so first maybe let me just step back and say on Ghana on June 28th, the IMF's Executive Board completed the Second Review of Ghana's three year EFF.  This gave Ghana access to $360 million U.S. dollars, bringing total disbursements under the program to about $1.6 billion.  The authorities comprehensive reform program and strong policy efforts are yielding positive results.  For example, growth in 2023 was higher than initially envisaged, inflation is declining, and international reserves have increased.  Steadfast policy and reform implementation are vital to durably restore macroeconomic stability and debt sustainability in Ghana.  It will be crucial for the government to continue to implement the program as envisaged to ensure sustainable growth and poverty reductions.  The authorities have so far demonstrated a strong commitment to the program at all levels.  And we welcome Minister Adams signaling of the government's continued commitment to policies under the program. 

   Okay, final question.

QUESTIONER: On Pakistan.  But of course it's been the 25th program for Pakistan when we talk about IMF’s programs.  How exactly IMF would make sure that this time they fulfill the program in true spirit and does not pass on the whole burden to the middle class, or to the lower middle class, or the poor for that matter.  And the country’s government is not cutting down the expenses.  The lavish expenses of the government and, above all, the non-combat military expenses are in question as well.  IMF has anything to say on that?

KOZACK: So, I think what I can say is maybe just a few things. So first, its critical that the authorities recognize, and they do recognize that consistent implementation of the new EFF is going to be necessary to successfully and sustainably stabilize the economy and pave the way for stronger and sustainable growth.  And why is this so important to have stronger and sustainable growth?  Because this is how an economy creates jobs, it creates opportunities, especially for young people or people who are looking to improve their standard of living.  So this is what the program aims to achieve.  

   The experience with the Stand-by Arrangement that we had that the IMF had with Pakistan in 2023 does demonstrate that the authorities have a commitment.  It showed that they had ownership and that they were able to implement sound policies that can help the economy recover.  And so the new program is really aiming to build on this momentum and to ultimately create a sustainable environment for strong growth and job creation in Pakistan.  Ultimately for the benefit of the Pakistani people so they can reach their aspirations. 

   Thank you so much.  And with this, we will bring the Press Briefing to a close.  Thank you all so much for joining us today.  It's been a pleasure, especially to see those of you who are here in person.

    Also, for those of you online, as usual, the briefing is embargoed until 11:00 a.m.  Eastern Time.  The transcripts will be made available on imf.org.  And in case of any clarifications or additional queries, and I know there were a few questions that we didn't quite get to, my colleagues will come back to you on those.  But please do reach out to media@imf.org for any additional queries. 

   Thank you all so much and wishing you all a wonderful day. 

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