1. Wide shot, European Department presser
2. Med shot, officials at briefing
3. Wide shot, reporters
4. SOUNDBITE (English) Reza Moghadam, Director of the European Department, IMF:
“Policy rates are at a record low in the euro zone. So, I think you have to acknowledge ECB has done a lot. And a lot of the problems that are faced in individual countries stem from country, specific problems that need to be addressed. They can not be solved by monetary policy by itself. Monetary policy can help and it can provide room and time to address the underlying problems but it cannot solve the underlying structural rigidities that some of the economies suffer.”
5. Cutaway, officials listening
6 SOUNDBITE (English) Reza Moghadam, Director of the European Department, IMF:
“There is a commitment, we believe the European leaders will live by those commitments, but it is also not the right time to judge whether Greece has met its commitment and whether it’s time for European leaders to meet those commitments. And, there are a large number of indicators that will go into the debt sustainability analysis. We have to wait to see what happens to growth, what happens to primary (balance), what happens to privatization, etc. So, it is an interesting debate, but I think it’s too early for that debate.”
7. Cutaway, reporter asking question
8. SOUNDBITE (English) Reza Moghadam, Director of the European Department, IMF:
“The economic situation continues to be very difficult, but there are signs of stabilization. There are signs of investor interest. And, if you look at what was at the heart of the problem, the indebtedness, the fiscal situation which controls that, the fact that Greece is expected to run a primary surplus this year, by the end of this year, somewhat earlier than projected, is an impressive achievement.”
9. Close up, photographer taking picture
10. Wide shot, presser ends

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Storyline

European economies face challenges despite improvements over the last six months to year, the International Monetary Fund reported on Friday.

According to Reza Moghadam, Director of the IMF’s European Department,
Euro zone countries have seen “considerable improvement” in some measures of risk, though “there are still financial stresses in Europe, particularly in the south of Europe.”

In the euro area, policy actions have reduced major risks and stabilized financial conditions, although growth in the periphery is still constrained by credit bottlenecks. The region is expected to gradually pull out of recession, with growth reaching 1 percent in 2014.

Moghadam said at a press briefing held during the Annual Meetings of the IMF and the World Bank in Washington DC, that “Policy rates are at a record low in the euro zone. So, I think you have to acknowledge ECB has done a lot. And a lot of the problems that are faced in individual countries stem from country-specific problems that need to be addressed. They can not be solved by monetary policy by itself. Monetary policy can help and it can provide room and time to address the underlying problems but it cannot solve the underlying structural rigidities that some of the economies suffer.”

Some old risks remain. Those include unfinished financial sector reforms in the euro area, impaired monetary policy transmission and corporate debt overhang in some euro area economies.
Moghadam referred to the ongoing debate about whether Greece will need another debt writedown and the willingness of European countries to meet their pledges.

He said, “there is a commitment, we believe the European leaders will live by those commitments, but it is also not the right time to judge whether Greece has met its commitment and whether it’s time for European leaders to meet those commitments. And, there are a large number of indicators that will go into the debt sustainability analysis. We have to wait to see what happens to growth, what happens to primary (balance), what happens to privatization, etc. So, it is an interesting debate, but I think it’s too early for that debate.”

Moghadam referred to the ongoing debate about Greece's debt sustainability.

“The economic situation continues to be very difficult, but there are signs of stabilization. There are signs of investor interest. And, if you look at what was at the heart of the problem, the indebtedness, the fiscal situation which controls that, the fact that Greece is expected to run a primary surplus this year, by the end of this year – somewhat earlier than projected – is an impressive achievement.”

Moghadam stressed the need for cooperation and collective action to strengthen growth and job creation.