China's Economy Is Prepared To Withstand Market Turmoil, Lagarde

In an online press conference, IMF Managing Director Christine Lagarde said that China's economy is prepared to withstand market turmoil. Her comments follow efforts by the Chinese government to bolster markets following recent volatility.

"We believe that the Chinese economy is resilient and strong enough to withstand that kind of significant variation in the markets," Lagarde said.

Lagarde said that the actions of China's government to temper the volatility will not affect the IMF's assessment if China's currency, the yuan, should be included in the IMF's basket of currencies, the Special Drawing Rights.

"We believe that the Chinese economy is resilient. Is that going to impact our assessment of the special drawing right basket? I don't think so. We have to be mindful. We have to be vigilant. We always are, but equally, we are cognizant of the very significant reforms that the Chinese authorities are implementing," Lagarde said.

Turning to Europe, Lagarde said that the discussion of Greek debt restructuring is inevitable to ease the terms of its debt. Lagarde also called on Greece to implement promised reforms.

"I have been in politics myself a little bit. So, there are lots of things you say, but what matters in the end of the day is what you do, so deeds, not creeds. What will be critical in my view is what the Greek authorities actually are prepared to do. Not the words around it or the political noise that is often in the system but to demonstrate ownership and to demonstrate determination," Lagarde said.

On Ukraine, Lagarde expressed confidence that the IMF Executive Board would approve the latest review of the program with Ukraine, releasing the latest tranche of aid for the country.

"The Ukrainian authorities have actually delivered. Is it to say it's fine and everything's ok? No. There are forces that are trying to destabilize, but I think that we are seeing a very strong political determination, and we are due to have the first review of the second program this Friday to approve the review of this program which I hope will be very conclusive and will be supportive of the efforts," Lagarde said.

The U.S. Federal Reserve has signaled that it intends to raise interest rates later this year, which could have knock-on effects for emerging markets economies.

"I think the tapering tantrum was painful, but it has been a good warning of how prepared we should be. I think the level of preparedness has significantly improved. In the meantime, the downside risks and the headwinds that emerging markets are facing has increased. The fact that commodity prices have gone down in particular is clearly going to increase the necessity to use the toolbox very appropriately when the interest rate movement comes," Lagarde said.
STORY: IMF / LAGARDE PRESSER
SOURCE: IMF / RECENT
RESTRICTIONS: NONE
LANGUAGE: ENGLISH /NATS
DATELINE: 29 JULY 2015, WASHINGTON, DC / RECENT

SHOTLIST:

RECENT – WASHINGTON, DC

1.Exteriors, IMF building

29 JULY 2015, WASHINGTON, DC

2. SOUNDBITE (English) Christine Lagarde, Managing Director, IMF:
"We believe that the Chinese economy is resilient and strong enough to withstand that kind of significant variation in the markets."

RECENT – BEIJING, CHINA

3. Various shots, people shopping

29 JULY 2015, WASHINGTON, DC

4. SOUNDBITE (English) Christine Lagarde, Managing Director, IMF:
"We believe that the Chinese economy is resilient. Is that going to impact our assessment of the special drawing right basket? I don't think so. We have to be mindful. We have to be vigilant. We always are, but equally, we are cognizant of the very significant reforms that the Chinese authorities are implementing."

RECENT – BEIJING, CHINA

5. Various shots, people shopping

29 JULY 2015, WASHINGTON, DC

6.SOUNDBITE: (English) Christine Lagarde, Managing Director, IMF:
"I have been in politics myself a little bit. So, there are lots of things you say, but what matters in the end of the day is what you do, so deeds, not creeds. What will be critical in my view is what the Greek authorities actually are prepared to do. Not the words around it or the political noise that is often in the system but to demonstrate ownership and to demonstrate determination."

RECENT - ATHENS, GREECE

7. Wide shot, Parthenon

29    JULY 2015, WASHINGTON, DC

8. SOUNDBITE: (English) Christine Lagarde, Managing Director, IMF:
"The Ukrainian authorities have actually delivered. Is it to say it's fine and everything's ok? No. There are forces that are trying to destabilize, but I think that we are seeing a very strong political determination, and we are due to have the first review of the second program this Friday to approve the review of this program which I hope will be very conclusive and will be supportive of the efforts."

RECENT - WASHINGTON, DC

9.Wide shot, exterior US Federal Reserve

29 JULY 2015, WASHINGTON, DC

10.    SOUNDBITE: (English) Christine Lagarde, Managing Director, IMF:
"I think the tapering tantrum was painful, but it has been a good warning of how prepared we should be. I think the level of preparedness has significantly improved. In the meantime, the downside risks and the headwinds that emerging markets are facing has increased. The fact that commodity prices have gone down in particular is clearly going to increase the necessity to use the toolbox very appropriately when the interest rate movement comes."

RECENT – WASHINGTON, DC

11.    Wide shot, exterior IMF

DURATION: 02:40