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By Matthew Russell Lee, CJR PFT NY Post

NEW YORK CITY, Nov 15 – When the International Monetary Fund held its biweekly embargoed media briefing on November 7, Inner City Press submitted questions including on Sudan and on Equatorial Guinea, see below.

Now on November 15 the IMF on DRC says this: "An International Monetary Fund (IMF) team, headed by Mauricio Villafuerte, visited Kinshasa, Democratic Republic of Congo (DRC), over November 6–15, 2019 and reached an agreement ad-referendum with the Congolese authorities on a reform program that could be supported by the IMF’s Rapid Credit Facility (RCF), [1] coupled with a Staff-Monitored Program (SMP) through end-May 2020. [2] Subject to IMF management approval, the staff-level agreement on the RCF disbursement is expected to be submitted to the IMF Executive Board for its consideration in mid-December 2019.  At the end of the mission, Mr. Villafuerte issued the following statement:  “The Congolese authorities and the IMF mission reached an agreement ad-referendum on policies that would strengthen macroeconomic stability, reinforce international reserves, and advance key structural reforms to address deep-seated issues related to poor governance, a difficult business environment, and pervasive poverty. The SMP would provide an opportunity for the authorities, with assistance from their partners, to develop a deeper structural reform agenda that could eventually be implemented under a medium-term Fund-supported program.  “The Congolese economy faces multiple challenges. GDP growth is projected to weaken to 3.2 percent in 2020 and 4.5 percent in 2019, reflecting a slowdown in mining production. However, non-extractive GDP continues to accelerate, spurred in part by increased government spending. However, poverty remains pervasive and is exacerbated by armed conflict and deadly epidemics in some areas of the country. Weaknesses of the judiciary system and fragmented taxation discourage private investment, holding back the potential of an economy that enjoys several valuable natural endowments, including a young and dynamic population.  “Fulfilling the government’s ambitious developmental and social plans in a sustainable way requires focusing on revenue mobilization and getting spending priorities right. The government has introduced free basic education and undertaken infrastructure building and rehabilitation under the President’s 100-day program. As domestic revenue is insufficient to finance these initiatives, the central bank (BCC) has made advances to the government, which have led to an erosion of its international reserves to critically low levels. In this context, there is an urgent need to boost revenue and rein in and prioritize expenditures to anchor macroeconomic stability.  “ The central bank’s immediate focus should be to build up its international reserves, while preserving low inflation. The transfer of its foreign currency deposits held with domestic commercial banks to its own bank accounts abroad would contribute to increase international reserves. To strengthen financial stability, the central bank should take steps to denominate banks’ mandatory reserves in the currency of the respective deposits. It should also continue to use instruments at its disposal to maintain low inflation and to intervene in the foreign exchange market to smooth out excess volatility.  “Improving governance and the business climate is critical, with emphasis on the management of natural resources and of state-owned enterprises. The authorities are committed to complying with requirements of the Extractive Industries Transparency Initiative (EITI). Steps should be taken to simplify taxation and reduce the tax burden. A national dialogue will be launched and appropriate assistance sought with a view to addressing weaknesses in the judiciary system." The IMF is part of the UN system, which has no meaningful judiciary system at all, while claiming immunity from outside systems. We'll have more on this.

On November 7 Inner City Press asked: "On Equatorial Guinea, what is the status (and dollar volume) of the IMF's consideration of a program, and the weighing if at all on the length of time Obiang has been in power? "The loan, the amount of which has not been revealed, is scheduled to be considered by the IMF executive board in December."

 From the IMF's November 7 transcript, with video on page: "There's another question from Matthew, which I'll take on Equatorial Guinea, asking what's the status and the volume of the IMF's consideration of a program for Equatorial Guinea and the weighing, if at all, length of time that President Obiang has been in power. On that, I can say that just recently on October 21st, the Equatorial Guinea authorities and an IMF team reached staff level agreement on a three-year arrangement. Again, under the extended Fund facility, which is the more concessional arm of the IMF's lending. The authorities are working on an agreed set of measures that could allow the new program to be considered by the IMF's Executive Board in December. And Matthew had asked about the volume. We're looking at the program that could be supported by approximately $280 million. So, that's four [sic] Equatorial Guinea.  And anything else in the room?"

On September 26 Spokesperson already then Gerry Rice,  for new Managing Director Kristalina Georgieva, on Turkey said "this is also from Matthew, he has asked ' On Turkey, what is the IMF's response to ruling AKP deputy chair Numan Kurtulmuş criticizing a meeting between IMF & opposition parties, saying Turkey has "closed the topic with the IMF."'

  Then Rice said it is normal to meet with opposition - except in Cameroon, apparently - and that there has been no indication from the Turkish authorities they are looking for a program.

  On September 12 Inner City Press asked the IMF: "On Zimbabwe, please confirm or deny IMF's Patrick Imam saying that "it is clear, compared to the projections of the original SMP, which did not foresee the severity of the drought and its secondary impact, nor the electricity shock, that growth is almost certainly going to be revised downwards and inflation upwards compared to the original SMP forecasts." And what is the IMF's view of the (economic) impact of the crack down on protest and human rights defenders?"

  Spokesperson Gerry Rice said that the IMF team is in Harare, from September 5 to 17. On human rights, he said the IMF "focuses on economics" and that such questions should be directed to... bilateral creditor. At least he didn't say the UN, which doesn't care. Here are Inner City Press' other questions to the IMF:

On Somalia, please provide a read out or response to reports that Somali Minister of Finance Abdirahman Duale Beyle met officials from the IMF  Addis Ababa to discuss the fourth phase of the Somali pardon program.

On Sri Lanka, what is the IMF's response to Independent Expert on foreign debt and human rights, Juan Pablo Bohoslavsky, sayins that in Sri Lanka, there are concerns at the significant rise in the value added tax, given that the brunt of such taxes is often borne by the poorest?

More generally, what is the IMF's response to Bohoslavsky saying as to the IMF that "even though austerity can be a useful tool of administration against the squandering of resources, it is essential to keep in mind that austerity impacts the most vulnerable and marginalised"?

On crypto-currency what is the IMF's response to Marshall Islands Minister David Paul saying the country is moving forward with its plans. According to the post, Minister Paul will provide further details about the Marshall Islands’ crypto, the Sovereign, next week at the Invest: Asia 2019 conference?  Within months, the IMF began putting pressure on the Marshall Islands to not forego the U.S. dollar in favor of its own digital currency. The Fund issued a 58-page report in September 2018 and warned against the "potential costs arising from economic, reputational, AML/CFT, and governance risks" associated with the issuance of the Sovereign.

On the DR Congo, what is the IMF's knowledge of, and comment on, that all the big-name advisory banks are laying siege to the presidential palace in the hope of winning the contract to advise the DRC on its relations with the IMF?" Inner City Press also asked, again, for "any updates on Cameroon or Haiti or Yemen." Watch this site.

More here.

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