ENJOY GREECE

ENJOY GREECE
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Παρασκευή 21 Ιουνίου 2013

Transcript of a Press Briefing by Gerry Rice, Director, Communications Department, International Monetary Fund (Greece and Cyprus)

QUESTIONER: As you know the Prime Minister of Greece closed down the Greek state TV. First I wanted to ask you if the IMF or the Troika put pressure to the Prime Minister to close down the state TV. And second, because many people believe that it’s a violation of the freedom of the press, what is the IMF’s position on the closing of the state Greek TV?
MR. RICE: On that issue I would say that the recent decisions regarding the state broadcaster have been the government’s. The authorities’ economic program is supported by IMF lending and that includes a reform of public administration as you know, but does not make specific recommendations on decisions involving state companies. So the IMF identifies a country’s fiscal envelope and the related fiscal targets, but it doesn’t determine how those are achieved. And that’s true in Greece and true in the countries where we work.
QUESTIONER: May I follow up on this? Do you think that Greece chose the right way to do the first layoffs in the public sector reforms without causing political instability?
MR. RICE: You know, I just repeat that this is a prerogative of the government, so I’m not going to comment further on the implementation of that.
QUESTIONER: But do you worry about the political instability in Greece?
MR. RICE: Well, maybe just stepping back, from that question. As you know a mission has recently been in Greece, the mission of the so-called Troika -- the European Commission, the European Central Bank, and the IMF -- and they have been reviewing the government’s economic program. We believe that important progress has been made. To allow completion of technical work, policy discussions will pause, but are expected to resume by the end of the month. So that’s the status of where we are with Greece.
QUESTIONER: These technical issues, that sounds very vague. Now in the past that’s been because there’s been a failure to agree on the way forward. Is that the case this time, and could you give us more details what those problems are?
MR. RICE: You know we’ve paused the mission, so in that sense we’re still in the mission. And as you probably know, we don’t discuss details of discussions during the missions. I would reiterate that important progress has been made and discussions then are continuing and will continue on technical work. And we expect that to happen fairly soon, by the end of this month.
QUESTIONER: On this issue, wasn’t Greece ready to give answers to your questions?
MR. RICE: You know I’m sounding repetitive here, but there’s a number of technical issues that clearly are still being discussed, and we’re going to resume that discussion at the end of the month. But, again, we’ve said that important progress has been made already.
QUESTIONER: Do you think that this -- MR. RICE: I’ll come back to you, but let me move on.
QUESTIONER: Well, I have Greece and Cyprus, so let’s stay in the region.
MR. RICE: So we’re not moving on.
MS. RASTELLO: No, we’re just staying in the neighborhood. But just -- I mean this is technical, but as we know the privatization plans didn’t go as planned, let’s say again. So isn’t that more than a technical hurdle? How did you make up for that? That’s one of the criteria; if they’re not met, that could blow the whole disbursement.
And my question on Cyprus is as we’ve seen in this letter that the government and the EU sent to the IMF. Could you tell us whether that changes anything to the program? Are you going to discuss? Or how is the next disbursement looking?
MR. RICE: I don’t have much to add on Greece, but let’s not get ahead of ourselves. And, you know, let’s have the discussions continue toward the end of the month. And then we will be in a better position to give you more of a detailed assessment.