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Looking Down The Barrel Of a Big Old Gun - IMF Comes To Ireland
MS. ATKINSON: Good morning everybody and welcome to our biweekly press briefing. I'm Caroline Atkinson, the Director of the External Relations Department at the IMF. As usual this briefing is embargoed until 10:30 a.m. Washington time, 1530 GMT.
A couple of things before we turn to your questions online and in the room. The Managing Director, Dominique Strauss-Kahn, will be in Frankfurt tomorrow speaking at two different events, at the ECB Conference which I believe began today on approaches to monetary policy and lessons from the crisis, and at the European Banking Congress. He will be delivering a speech there. We will let you know when it is available on our website and I'm not sure yet whether we will have a version prepared for delivery. The week after next on December 2, the Managing Director will be in New Delhi meeting with officials and again giving a speech at a roundtable at the Federation of Indian Chambers of Commerce and Industry. The First Deputy Managing Director John Lipsky is going to be delivering a speech next week in New York on November 23 at the Economic Club, and then he will be going to Dubai to participate in the World Economic Forum Summit on the Global Agenda on 27 to 30 November.
I can turn now to your questions. As usual, if you could identify yourselves, your name and your organization.
QUESTIONER: Could you tell us more about the IMF team that is in Dublin today, how many people, their names and titles, if possible? Also how is their mission or mandate been defined by the IMF? Finally, if the IMF does loan money to Ireland, what sort of interest rate would be taking about? Would it be comparable to the rates being charged of Hungary and Latvia and what are those rates? Thank you.
MS. ATKINSON: Let me begin with the last question which is perhaps the simplest. First of all, we have not received a request for financial support so anything to do with that is hypothetical, but I can tell you that we have perfectly standard interest rates and charges. I don't have them off the top of my head but they are available and we can get back to you with that, and they are available on our website. On your other questions, you're right that there is an IMF team actually en route to Dublin now. The Mission Chief will be Ajai Chopra who has been the Acting Director of our European Department. We're waiting for the new director who will be taking up his duties at the of November. Aja is very experienced in the IMF and he's been working on European countries for a long time. He's been leading the Euro Area consultations and he has already landed in Dublin. But the rest of the team is arriving and they will be able to begin work tomorrow morning, Friday morning.
QUESTIONER: How big is the rest of the team?
MS. ATKINSON: I believe there are some banking team experts and regular country experts. I'm not completely sure of the numbers but I think it's around 10 or 12. The other person who will be there is Ashoka Mody who was the leader, the Mission Chief, for the Article IV consultations on the last two occasions so that you may be familiar with him. And the other team members who typically go to Ireland and then the particular banking sector experts as the focus of these consultations as we described on Tuesday and as the Europe Group described, the focus of the consultations is to look at whatever measures might be needed to support financial stability and protect against market risks in the light of the Irish government's 4-year budgetary plan.
QUESTIONER: How long will they stay in Dublin?
MS. ATKINSON: It just depends. We never say at the beginning of our missions how long teams will stay. It depends on how the technical discussions continue and so on.
QUESTIONER: Would these be the same people who went to Athens, Mr. Chopra and Mr. Komodi? Would they be the same people who handled the Greek crisis?
MS. ATKINSON: No.
QUESTIONER: They're not the same people?
MS. ATKINSON: They are not the same people, no. In fact, there is a team in Greece now, so those are the people. Yes, at the back?
QUESTIONER: Two things. One, can you explain what has happened since I guess a couple weeks ago when the IMF repeatedly said that it did not believe that Ireland needed any special assistance, that its budgetary proposals and actions were sufficient to meet their crisis situation? Secondly, Irish officials have indicated that any IMF funding wouldn't necessarily require conditionality because it would be meeting bank capital buffers rather than government loans. Is that accurate to say?
MS. ATKINSON: The second part of your question is hypothetical about what would we do if there were a request for financial support and so I'm not going to go there. I would refer you to other cases where we believe that it's important to have government ownership of policy measures, and as we have seen in Greece there has been important public ownership even though measures that the government is taking there have
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