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Category: Banking

  • MIL-OSI Asia-Pac: RURAL DISTRESS SHOWCASED BY RISE IN HOUSEHOLDS UNDER MGNREGS

    Source: Government of India

    Posted On: 07 FEB 2025 4:26PM by PIB Delhi

    Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS) is a demand driven wage employment Scheme which provides for the enhancement of livelihood security of the households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in every financial year to every household whose adult members volunteer to do unskilled manual work.

    In order to upgrade the skill base of Mahatma Gandhi NREGS’s workers, Government of India launched “Project UNNATI” in December 2019. By upgrading skill base of Mahatma Gandhi NREGS workers, the project intends to improve their livelihoods, so that they can move from the current partial employment to full employment through either self-employment or wage employment. The Project aims to enhance the skill base of 2 lakh Mahatma Gandhi NREGS workers. So far total of 82,799 Mahatma Gandhi NREGS workers have been trained (as on 31.12.2024).

    In addition, this Ministry also implements the following two welfare schemes in the field of skill development for rural poor youth for their gainful employment with a view to eradicate poverty in the country under the umbrella scheme of Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM):

    1. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): DDU-GKY is a placement linked skill development program for rural poor youth in the age group of 15-35 years. DDU-GKY guidelines provide for earmarking 50% of the funds for SCs and STs and 15% for minorities. Further, one third beneficiaries of the respective categories including general category, covered under the scheme, should be women.
    2. Rural Self Employment Training Institutes (RSETIs): RSETI is a Bank lead- MoRD funded training institutions established by the Sponsor Banks in their Districts, to provide training for Skill and Entrepreneurship Development. MoRD extends financial support for the construction of RSETI buildings and also bears the cost of training the Rural Poor candidates. Any unemployed youth in the age group of 18-45 years having an aptitude to take up self-employment or wage employment and having some basic knowledge in the related field can undergo training at RSETI. Some of the trained candidates may also seek regular salaried jobs / wage employment.

    This information was given by Minister of State Rural Development, Shri Kamlesh Paswan in a written reply in Rajya Sabha today.

    ******

     MG/KSR

    (Release ID: 2100660) Visitor Counter : 48

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Fraudulent websites and internet banking login screens related to The Hongkong and Shanghai Banking Corporation Limited

    Source: Hong Kong Government special administrative region

    Fraudulent websites and internet banking login screens related to The Hongkong and Shanghai Banking Corporation Limited
    Fraudulent websites and internet banking login screens related to The Hongkong and Shanghai Banking Corporation Limited
    ******************************************************************************************

    The following is issued on behalf of the Hong Kong Monetary Authority:     The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by The Hongkong and Shanghai Banking Corporation Limited relating to fraudulent websites and internet banking login screens, which have been reported to the HKMA. A hyperlink to the press release is available on the HKMA website.     The HKMA wishes to remind the public that banks will not send SMS or emails with embedded hyperlinks which direct them to the banks’ websites to carry out transactions. They will not ask customers for sensitive personal information, such as login passwords or one-time password, by phone, email or SMS (including via embedded hyperlinks).     Anyone who has provided his or her personal information, or who has conducted any financial transactions, through or in response to the websites or login screens concerned, should contact the bank using the contact information provided in the press release, and report the matter to the Police by contacting the Crime Wing Information Centre of the Hong Kong Police Force at 2860 5012.

     
    Ends/Friday, February 7, 2025Issued at HKT 18:07

    NNNN

    MIL OSI Asia Pacific News –

  • MIL-OSI Europe: Answer to a written question – Financial risks to EU taxpayers following Northvolt’s bankruptcy filing – E-002656/2024(ASW)

    Source: European Parliament

    The implementation framework of budgetary guarantees, for instance under the European Fund for Strategic Investments (EFSI), requires that partner institutions implementing them (for EFSI, the European Investment Bank) manage and share concomitant risk exposures as part of their own.

    Hence, the Commission is in close contact with the banks to ensure that the guarantees concerned are managed as such and in accordance with established terms and risk management frameworks, as well as market practice.

    However, it is recognised that the principal expenditure for programmes deploying budgetary guarantees is meant to cover potential losses on some of the supported investments, which without such support would not be financed by the market at reasonable terms while they make an important contribution to EU policy priorities.

    That is why budgetary guarantees are provisioned from the outset so that occasional losses do not impinge on the relevant programmes and their capacity to provide substantial leverage in supporting EU policy priorities.

    For instance, the InvestEU Programme[1] is on track to mobilise more than EUR 370 billion of investments, comparing with ex ante provisioning of EUR 10.46 billion.

    Moreover, the Commission notes, that in the specific case of interest to the Honourable Members, insolvency proceedings have not yet concluded.

    • [1] https://investeu.europa.eu/index_en
    Last updated: 7 February 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Poland: EIB supports sustainable development of medium-sized cities

    Source: European Investment Bank

    • EIB loaned over PLN 1 bln (ca. €274 mln) to Kielce, Radom, Rybnik and Chorzów in 2024.
    • Talks with other medium-sized Polish cities are under way.
    • In Kielce, EIB financing will underpin investment in urban infrastructure, transport and environmental projects.
    • EU bank backed sustainable development of Polish cities and regions with €7.89 bln since 2022.

    The European Investment Bank (EIB) approved PLN 224 million in financing to support sustainable urban development of Poland’s south-eastern city of Kielce. The first agreement signed with the city under the framework loan covers PLN 112 million and will underpin investment in urban infrastructure and transport, as well as environmental and climate policies.

    “Promoting dynamic development of medium-sized cities is one of the EIB’s key lines of action. As the EU’s climate bank, the EIB finances upgrades to and expansion of top-notch urban infrastructure, as well as climate and environmental projects, especially in cohesion regions. Last year, the EIB allocated almost €2.4 billion to sustainable development of regions and cities in Poland,” EIB Vice-President Teresa Czerwińska said during a visit to Kielce. “Thanks to the EIB loan, Kielce will be able to enhance city greeneries, transport network and sports facilities, carrying out investments that bring tangible benefits to inhabitants. Through this partnership with Kielce, and similar ones with Rybnik, Chorzów and Radom, the EIB contributes to improving the quality of life for people in Poland, including those living outside the largest centres.”

    Long-term, beneficial financing from the EIB will allow Kielce to co-finance projects that also receive direct grants from the European Union budget, helping with their effective absorption in Poland. An agreement for the second tranche of financing for the city is expected next.

    “Kielce will use this funding as the required own contribution to projects co-financed externally. We envisage the modernisation of a central city square, the establishment of a business incubator and major investment in public transport, including a new bus fleet. The city’s total investment plan amounts to PLN 761 mln,” said Kielce Mayor Agata Wojda.

    Multibillion-euro support for Polish cities, including medium-sized ones

    The EIB has signed 24 financing agreements with cities and municipal companies totalling over €1.7 billion since 2022. Including infrastructure financing and intermediated loans, the bank’s support to sustainable investment of cities and regions has reached €7.89 bln in the last three years. Alongside big cities, beneficiaries have also included the medium-sized ones with between 100,000 and 250,000 inhabitants. Last year, the EIB granted framework loans totalling over PLN 1 billion to Kielce, Radom, Rybnik and Chorzów.

    “Working together with the EIB is a real step forward in the continued sustainable development of Chorzów. This EIB loan will help the city make strategic investments in key areas such as urban infrastructure and environmental protection. Used effectively, the funding will help improve quality of life for our city’s inhabitants and make Chorzów more competitive on the regional map,” said Chorzów Mayor Szymon Michałek.

    In Radom, EIB funds are being put to use to build nurseries and social housing, create green spaces, promote sustainable urban mobility and improve energy efficiency of public buildings.

    Radom Mayor Radosław Witkowski, said: “Partnering with the EIB will provide economic benefits and help our city to keep on developing, which is what our residents expect.”

    According to Piotr Kuczera, the mayor of Rybnik, EIB financing is making the city “greener and a nicer place to live.”

    Background information

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the EU, and the Capital Markets Union.   

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024. Nearly two-thirds of which was allocated to tackle the climate crisis and protect the environment. Almost half of the invested funds were allocated in cohesion regions, while €17.2 billion was earmarked specifically for the sustainable development of cities and regions. In Poland, EIB support for economic and territorial cohesion last year amounted to €5 billion, while investments in the development of cities and regions reached almost €2.4 billion. The EIB Group will soon share the full results of its activities in Poland.

    MIL OSI Europe News –

  • MIL-OSI Economics: Result of the 56-day Variable Rate Repo (VRR) auction held on February 07, 2025

    Source: Reserve Bank of India

    Tenor 56-day
    Notified Amount (in ₹ crore) 50,000
    Total amount of bids received (in ₹ crore) 1,08,702
    Amount allotted (in ₹ crore) 50,010
    Cut off Rate (%) 6.31
    Weighted Average Rate (%) 6.35
    Partial Allotment Percentage of bids received at cut off rate (%) 89.08

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2024-2025/2102

    MIL OSI Economics –

  • MIL-OSI Video: Palestine: WHO Warns of Severe Health Crisis in Gaza – Press Conference | United Nations

    Source: United Nations (Video News)

    World Health Organization (WHO) senior official in Gaza Rik Peeperkorn said that the health needs in the Strip are “immense” as functional health facilities and services are scarce.

    Peeperkorn today (06 Feb) spoke to reporters from Gaza via video link.

    On mental health, the WHO senior official said that that everyone in Gaza is affected by the conflict, with stress, anxiety, depression and feel of loneliness. He said that only two psychiatrists are in the north and a few mental health professionals.

    Peeperkorn also said that WHO started a training program. “As of now, 44 mental health humanitarian workers were trained on psychological first aid to provide immediate emotional and psychological support early and also ensure early detection and enable safe referrals.”

    On a positive note, the WHO official said that Shifa Hospital “bounced back in the middle of the severe destruction, some departments are working, and it’s working again as a referral hospital.”

    He said that WHO is supporting an emergency medical team. “There’s general surgery going on, trauma surgery going on, and more in child health. A lot is going on. And also some substantial renovations to expand the impatience department and the ICU,” Peeperkorn added.
    On medical evacuation, the WHO official said, “There should be more patients going through Rafah into Egypt. But we also want other medical corridors, and the first medical corridors we really want to see restored is the traditional referral pathway to West Bank and East Jerusalem. The hospitals are ready in East Jerusalem and West Bank to receive the patients.”

    Asked about the recent announcement on US withdrawing from his Organization, Peeperkorn said, “We need a strong World Health Organization which plays a crucial role in protecting the health security of the world people, including Americans, and addressing the root causes of disease, but also building stronger health systems, detecting, preventing and responding to health emergencies, including disease outbreaks, often in dangerous places where we of us cannot go.”

    “And therefore, we really hope for this reconsideration and look forward to engaging in this constructive dialog, at all levels,” he concluded.

    https://www.youtube.com/watch?v=-ypbD2e8ZuA

    MIL OSI Video –

  • MIL-OSI Video: Democratic Republic of the Congo, Palestine & other topics – Daily Press Briefing | United Nations

    Source: United Nations (Video News)

    Noon briefing by Farhan Haq, Deputy Spokesperson for the Secretary-General.

    Highlights:

    – Secretary-General
    – Occupied Palestinian Territory
    – Sudan
    – Central African Republic
    – Air Pollution
    – Female Genital Mutilation
    – Financial Contribution

    SECRETARY-GENERAL
    This morning, in a press encounter, the Secretary-General made a special appeal for peace in the Democratic Republic of the Congo, ahead of a summit tomorrow with the leaders from the East African Community and the Southern African Development Community in Tanzania. He added that next week in Addis Ababa, he will take part in a Summit-level meeting of the African Union Peace and Security Council where the crisis will be front and centre.
    The Secretary-General said his message is clear: Silence the guns. Stop the escalation. Respect the sovereignty and territorial integrity of the Democratic Republic of the Congo. Uphold international human rights law and international humanitarian law.

    OCCUPIED PALESTINIAN TERRITORY
    The Under-Secretary-General for Humanitarian Affairs, Tom Fletcher, accompanied a UN aid convoy into the Gaza Strip today, where the UN and its partners continue responding to immense needs as part of a prepared scaling up of our operations.
    In northern Gaza, Mr. Fletcher toured two hospitals – Al Shifa in Gaza City and Al Awda in Jabalya – where he met with patients, staff and management. Leaving the Al Awda hospital, Mr. Fletcher spoke with survivors and returnees in Jabalya who are trying to rebuild their lives amid the rubble.
    The Under-Secretary-General also visited the only operational water well in North Gaza governorate. This well, which is run by theUnite d Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) serves as a crucial lifeline for clean water, given the extensive destruction of Gaza’s water infrastructure. From the north of the Strip, the Under-Secretary-General crossed the Netzarim area into Deir al Balah in central Gaza.
    Throughout his visit, Mr. Fletcher held discussions with humanitarian workers from local and international non-governmental organizations, as well as UN agencies, stressing the need to seize the opportunities presented by the ceasefire to sustain and expand relief efforts.
    Partners of the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) supporting water, sanitation and hygiene services report that they are distributing 2,500 cubic metres of safe drinking water daily across Gaza and North Gaza governorates, serving 411,000 people. One of our partners is also providing cleaning services at 17 displacement sites in northern Gaza, benefiting nearly 12,000 people.
    Water, sanitation and hygiene partners are carrying out assessments in locations across the Strip to repair water wells, install dosing pumps, and set up water filling points.
    While some repairs are already underway, further progress hinges on teams being able to clear debris and carry out assessments of explosive hazards.
    Meanwhile in the West Bank, OCHA reports that Israeli forces’ operations are intensifying in Jenin, Tulkarm and Tubas, severely restricting Palestinians’ access to essential assistance, including water, food, medicine and supplies for infants.
    In Tubas governorate, Israeli forces have been operating in the El Far’a refugee camp for five consecutive days. They have imposed a curfew, reportedly prohibiting residents from leaving their homes. They also bulldozed roads and damaged water networks, forcing residents to rely on collecting rainwater.

    SUDAN
    The Resident and Humanitarian Coordinator in Sudan, Clementine Nkweta-Salami, today warned that South Kordofan and Blue Nile States are on the brink of catastrophe, as the violence there continues to escalate at an alarming rate.
    As of yesterday, the civilian death toll following recent shelling in South Kordofan’s capital Kadugli had increased to 80, with some three dozen others injured.
    In a statement, Ms. Nkweta-Salami condemned the reported use of women and children as human shields in Kadugli, as well as the obstruction of humanitarian aid and the detention of civilians, including children.
    The western Nuba Mountains, which extend into South Kordofan and West Kordofan States, are among the areas in which famine has been identified by the Famine Review Committee of the International Food Security Phase Classification system, or IPC.
    Ms. Nkweta-Salami stressed that humanitarian needs also remain critical in Blue Nile State, amid reports of mass mobilization for conflict. She also called on all sides to the conflict in Sudan to de-escalate tensions, protect civilians and civilian infrastructure, and allow humanitarian organizations safe and unrestricted access to those in desperate need.

    Full Highlights: https://www.un.org/sg/en/content/ossg/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=06+February+2025

    https://www.youtube.com/watch?v=6MYbKGAp7Y0

    MIL OSI Video –

  • MIL-OSI Economics: Asian Development Blog: Preparing the Nation for Integration: Timor-Leste’s Path to ASEAN

    Source: Asia Development Bank

    Timor-Leste has taken major steps toward joining the Association of Southeast Asian Nations, but challenges remain. Strengthening governance, promoting investments, expanding trade, and enhancing human capital are still needed

    Timor-Leste is a young democracy facing significant development challenges. The poverty rate remains high at 41.8% and economic growth has been volatile, affected by both external and domestic shocks.

    The economy relies heavily on public spending and petroleum revenues. Long-standing structural challenges such as a weak private sector, inadequate infrastructure, a lack of skilled labor, and a challenging business environment, present daunting obstacles to economic diversification and long-term growth.

    Recognizing the role that regional cooperation and integration can play in addressing these challenges, Timor-Leste has long pursued membership in the Association of Southeast Asian Nations (ASEAN). This has been a strategic priority and a cornerstone of its economic development and foreign policy.

    ASEAN membership is expected to drive domestic policy and institutional reforms while expanding markets and reduce costs. It should also diversify the economy, attract trade and investments, and improve access to technology and skills.  

    Since applying for ASEAN membership in 2011, Timor-Leste has undertaken significant reforms, investments, and policy alignments—establishing a Directorate-General for ASEAN Affairs, modernizing customs, and engaging the private sector—to meet the requirements for full membership.

    Supported by partners like the Asian Development Bank, the country has accelerated capacity-building initiatives and advanced infrastructure, trade, renewable energy, and agriculture to foster broader economic opportunities.

    But more needs to be done for Timor-Leste to reap the full benefits of ASEAN.

    Timor-Leste requires comprehensive capacity-building initiatives to enhance the technical knowledge and skills of government officials and stakeholders. Developing and implementing targeted training workshops and seminars in key areas, especially those focused on specialized areas and sectoral drivers of growth, such as tourism or agriculture, will be crucial. Establishing mentorship programs that pair ASEAN expertise with Timor-Leste sectoral counterparts will provide knowledge transfer.

    Timor-Leste has made significant progress toward ASEAN accession, but continued collaboration, investment in human capital, and infrastructure improvements remain crucial for fully integrating into the region and maximizing economic opportunities.

    To ensure harmonization with ASEAN standards, expert guidance will be needed to assist in the review and improvement of government legislation, rules, and procedures. Facilitating peer-to-peer learning opportunities and best practices exchanges with other ASEAN member states that have successfully implemented core provisions will be beneficial. Providing resources and tools to assist in drafting and updating legislation to ensure compliance with core provisions is essential.

    Upgrading transport infrastructure is also crucial, requiring a strategic approach involving the development of comprehensive transport plans, substantial financial investments, and the engagement of specialized transport engineering expertise.

    Key areas of support include sustainable financing for road maintenance, capacity building, and technical assistance to strengthen planning, monitoring, and project supervision. Enhancing border protection and monitoring, improving equipment and resource allocation, and incorporating environmentally sustainable practices are also key elements.

    By aligning with international standards and focusing on regional integration, Timor-Leste can foster connectivity, streamline trade processes, and contribute significantly to overall economic growth and regional integration. Furthermore, developing ICT infrastructure is vital. Assisting in the design and implementation of automation and digitization projects for public services and trade facilitation measures will enhance efficiency.

    Timor-Leste requires comprehensive support to address its human capital challenges and improve labor force participation and food security. Key initiatives from ASEAN member states and other partners include promoting higher education through international education fairs, prioritizing Timorese students for university admissions, and establishing student and labor exchange programs.

    For basic education, creating teacher training centers and improving English language proficiency is a key priority. Online learning platforms will ensure continuous skill development and retention. The government has renewed focus on early childhood development, supported by the 2024 general state budget.

    Additional initiatives like the Inter-Ministerial Taskforce and the National Health Sector Nutrition Strategic Plan (2022-2026) target stunting and malnutrition, with the goal to reduce stunting from 47% to 25% by 2030. Promoting sustainable agricultural practices and strengthening healthcare infrastructure are also crucial.

    Timor-Leste is committed to modernizing its financial systems, developing e-payment solutions, and enhancing financial literacy and inclusion. Strengthening the business sector will create more opportunities for trade and investment.

    Supporting local businesses through capacity-building training focused on ASEAN trade, marketing, financial access policies, connectivity, and digital skills will ease integration barriers. Improving infrastructure and internet access through financial assistance will help businesses overcome critical barriers. Connecting with the ASEAN Business Advisory Council and other ASEAN members will boost trade and investment linkages.

    Timor-Leste aims to establish strong connections with ASEAN officials, stakeholders, and bodies, such as central banks and national statistics institutes. Government agencies represent Timor-Leste’s interests at ASEAN meetings and working groups. On the private sector side, Timor Leste’s Chamber of Commerce and Industry has participated in meetings with the ASEAN Business Advisory Council as an observer.

    Timor-Leste has made significant progress toward ASEAN accession, implementing key reforms and strengthening its economic and institutional frameworks. However, continued collaboration with ASEAN member states and development partners is crucial to overcoming remaining challenges.

    By sustaining momentum in governance, trade, and infrastructure improvements, Timor-Leste can fully integrate into the region and unlock new opportunities for growth. Stakeholders must remain engaged in supporting this journey, ensuring that the country maximizes the benefits of ASEAN membership for its people and economy.

    Bold Sandagdorj, country economist at ADB’s Timor-Leste Resident Mission, contributed to this blog post.
     

    MIL OSI Economics –

  • MIL-OSI: Progress in customer activity as well as core banking activities continued, and credit quality remained strong Record-high net profit of DKK 23.6 billion, improving return on equity to 13.4%

    Source: GlobeNewswire (MIL-OSI)

    Press release Danske Bank
    Bernstorffsgade 40
    DK-1577 København V
    Tel. + 45 45 14 14 00

    7 February 2025

    Progress in customer activity as well as core banking activities continued,
    and credit quality remained strong
    Record-high net profit of DKK 23.6 billion, improving return on equity to 13.4%
    Dividend of DKK 9.35 per share for the second half of 2024 as well as an extraordinary dividend of DKK 5.35 per share, in total DKK 14.7 per share
    The Board of Directors has decided to initiate a new share buy-back programme of DKK 5 billion

    Danske Bank has announced its financial results for 2024.
    Carsten Egeriis, Chief Executive Officer, comments on the financial results:

    “For Danske Bank, 2024 was a year in which we consistently delivered positive results from quarter to quarter, driven by increased customer activity, continually strong credit quality and a sustained, dedicated effort from the entire organisation. Consequently, we maintained our positive commercial momentum, resulting in a solid financial performance.

    One year into the execution of our Forward ’28 strategy, we have made substantial progress within our technology transformation and customer engagement, and we can see that our investments in enhancing the customer experience have resulted in increasingly positive customer satisfaction scores.

    Our continued focus on cost discipline and on maintaining strong credit quality resulted in two upward adjustments of our financial guidance in 2024. On the basis of our strong financial results and solid capital position, the total distribution in 2024 amounts to 100% of net profit, thus honouring the commitment we have made to our shareholders.

    With our advanced customer offerings, deep expertise and solid financial position, Danske Bank is strongly positioned to create value for customers, shareholders and society. In a time of heightened geopolitical uncertainty, rapid technological shifts and increasing sustainability challenges, we will continue to focus on opportunities and solutions for households and businesses alike.”

    The annual report is available at www.danskebank.com. Highlights are shown below:

    2024 vs 2023
    Total income of DKK 56.4 billion (up 8%)
    Operating expenses of DKK 25.7 billion (up 1%)
    Loan impairments of DKK -543 million (2023: DKK 262 million)
    Net profit of DKK 23.6 billion (up 11%)
    Return on shareholders’ equity of 13.4% (2023: 12.7%)
    Strong capital position, with a CET1 capital ratio of 17.8% (2023: 18.8%). The ratio reflects strong capital generation and the full deduction of the announced 40% additional capital distribution.
    Solid progress towards Forward ’28 ambitions and 2026 targets
    2024 was the first full year of our Forward ’28 strategy, and we are well-positioned for future growth as we maintain our trajectory towards strengthening our position as a leading bank in the Nordic region and make significant investments in our customer offerings.

    For personal and private banking customers, with Forward ’28, a sharpened focus in each of our markets has allowed us to further strengthen our relations with existing customers and attract new ones. For business and institutional customers, we want to be a leading bank in the markets in which we operate. Our approach focuses on meeting evolving market demands while fostering high long-term customer and employee satisfaction.

    Significant progress with our technology transformation paved the way for a better customer experience and improved efficiency. In 2024, we made substantial progress in terms of using digitalisation, data, AI and technology to improve customer engagement while reducing costs and operational risks. We developed a new version of our District online banking platform that is tailored to small businesses and is expected to launch in Denmark in the first half of 2025. We also launched a new welcoming app that makes it both easier and faster to become a personal customer with us.

    Across the bank, we have made GenAI a strategic priority, and our GenAI-powered solutions offer key opportunities to unlock productivity gains. During 2024, we launched DanskeGPT, which has been adopted by almost 16,000 users across the organisation, corresponding to 74% of all employees. We have also deployed GenAI-powered tools for our software developers, and these tools are driving solid productivity improvements.

    In 2024, Danica developed its new commercial strategy, Forward ’28 – Danica, which aims to make Danica the preferred pension company in Denmark by 2028. The strategy, which took effect on 1 January 2025, focuses on the importance of making customer interactions with Danica easy and convenient through digital solutions and on offering comprehensive healthcare offerings, attractive returns and quality advice. These elements are expected to be key growth drivers over the next few years. The strategy aligns with the strategic direction set in Danske Bank’s Forward ’28 strategy, underscoring the significant potential in synchronising services between the bank and the pension business.

    As the success of our strategy relies on solid execution, we have a significant focus on our employees, supported by investments in development activities, leadership and the workplace. Employee satisfaction and engagement scores continued to improve from already high levels and are now above the industry benchmark.

    Sustainability is a key focus area in Forward ’28, and our ambition is to be a leading Nordic bank in terms of supporting the sustainability transition of customers, businesses and the Nordic societies that we are a part of. Our efforts are reinforced by new ESG advisory services, comprehensive staff training, recruitment of specialists and strategic partnerships, all aimed at supporting our customers’ sustainability transition. In line with European regulation, for the 2024 annual report, Danske Bank has prepared a sustainability statement in accordance with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).

    Better-than-expected macroeconomic conditions
    Macroeconomic conditions developed more favourably than expected in the markets in which we operate. Especially in Denmark, the inflation and growth outlook improved during the year, and this development is forecast to continue as central banks continue their easing trajectories, leading to lower rates for both households and businesses. Although the growth outlook has improved broadly speaking in the Nordic region, the uncertainty related to Europe’s long-term growth prospects and ability to innovate persists.

    In times of uncertainty for both Danske Bank and our customers, our well-capitalised balance sheet has enabled us to be a strong financial partner for our customers, and we have continued to support them with risk management expertise and expert advice.

    Strong financial performance
    An improved commercial momentum in our business, supported by better-than-expected macroeconomic conditions and strong credit quality have enabled us to strengthen profitability and generate record-high net profit. The return on equity thus increased from 12.7% to 13.4%, highlighting our positive trajectory and progress towards our 2026 targets.

    In 2024, total income grew 8%, driven by a sustained uplift in core banking income. Despite central bank rate cuts and lower deposit margins as well as overall muted credit demand, net interest income showed the expected strong development, with increasing net interest income throughout the year. Net fee income continued the positive traction throughout the year, reflecting our overall strong development and ability to do more business with existing customers and to attract new customers. We saw a higher level of fee income from cash management products, and customer activity generally remained high. Furthermore, we saw an increase in investment fees generated by strategic investments in our private banking offerings as well as a strong development in fees from asset management.

    Net trading income remained stable, and net income from insurance business benefited from stable financial markets, with the health and accident business continuing to be challenged, however.

    Operating expenses developed according to plan and were at the same level as in 2023. The minor year-on-year increase was caused mainly by higher investments in our technology transformation made under our Forward ’28 strategy and staff costs that were impacted by wage inflation. Costs related to financial crime prevention and legacy remediation decreased in line with our plan for a normalisation of costs, and together with prudent cost management, this led to an improvement in the cost/income ratio to 46% from 49%.

    Loan impairment charges amounted to a net reversal of DKK 543 million, reflecting strong credit quality and modest impairments against single-name exposures coupled with a review of post-model adjustments. We continue to apply significant post-model adjustments as well as a scenario-based macroeconomic model to cater for potential tail risks that are not evident in our portfolio. Overall, the macroeconomic environment improved during 2024 and was characterised by lower inflation, lower interest rates and an enhanced growth momentum.

    Overall, we ended the year with the same positive momentum that we saw in the first nine months of 2024. This resulted in record-high net profit of DKK 23.6 billion, up 11% from 2023.

    “The first year of execution of our Forward ’28 strategy, 2024 was an important year for Danske Bank’s financial performance: With income growth driven by our growing core income as well as our continued efforts to support customers and drive the commercial momentum, net profit represents a record-high result,” says Stephan Engels, Chief Financial Officer.
    We continue to create value to the benefit of our customers, our shareholders and society: Our tax expense amounted to DKK 7.6 billion, and given our strong capital position, and in line with the Forward ’28 strategy, the financial year 2024 enables us to make a significant payout to our shareholders.

    Delivering on capital distribution
    Given our strong balance sheet, and as planned in the Forward ’28 strategy, the financial year 2024 yields a significant payout to our shareholders. We paid a dividend of DKK 7.50 per share in connection with the interim report for the first half of 2024, and we propose a dividend of DKK 9.35 per share for the second half of 2024 as well as an extraordinary dividend of DKK 5.35 per share. Furthermore, on 6 December 2024, we announced a special dividend of DKK 6.50 per share following the successful transfer of the personal customer business in Norway. In total, our distribution for 2024 amounts to DKK 28.70 per share.

    It remains crucial for us to create value for all our stakeholders, including our shareholders, customers, employees and the societies we are part of, and as a bank we need to attract capital from shareholders to lend and do business. Besides large institutional investors, our capital distribution benefits most major pension funds in Denmark as well as private individuals in Denmark, who have invested part of their savings in Danske Bank shares. In total, we have more than a quarter of a million investors, of which more than half are private individuals in Denmark.

    Danske Bank’s dividend policy for 2025 remains unchanged, targeting a dividend payout of 40-60% of net profit in the form of annual dividend payments.

    Share buy-back
    The share buy-back programme launched in February 2024 of DKK 5.5 billion was completed in January 2025.

    On the basis of the financial results for 2024, the Board of Directors has decided to initiate a new share buy-back programme of DKK 5 billion, taking the total payout ratio to 100% of net profits when including the dividend for 2024 but excluding the special dividend related to the transfer of the personal customer business in Norway. The programme, which has been approved by the Danish Financial Supervisory Authority, will start on 10 February 2025.

    Outlook for 2025
    We expect net profit for 2025 to be in the range of DKK 21-23 billion.
    The outlook is subject to uncertainty and depends on economic conditions.

    Danske Bank

    Contact: Helga Heyn, Head of Media Relations, tel. +45 45 14 14 00

    More information about Danske Bank’s financial results is available at www.danskebank.com/reports.

    Attachments

    The MIL Network –

  • MIL-OSI Economics: Result of the Daily Variable Rate Repo (VRR) auction held on February 07, 2025

    Source: Reserve Bank of India

    Tenor 3-day
    Notified Amount (in ₹ crore) 1,50,000
    Total amount of bids received (in ₹ crore) 1,33,013
    Amount allotted (in ₹ crore) 1,33,013
    Cut off Rate (%) 6.26
    Weighted Average Rate (%) 6.27
    Partial Allotment Percentage of bids received at cut off rate (%) NA

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2024-2025/2099

    MIL OSI Economics –

  • MIL-OSI China: Foreigners enjoy China’s improved mobile payment

    Source: China State Council Information Office 3

    Tourists from France enjoy a soup dumpling at Yuyuan Garden Mall in Shanghai, east China, Jan. 21, 2025. [Photo/Xinhua]

    Foreign visitors in China experienced a smoother, more convenient travel environment during this year’s Spring Festival, thanks to improvements to the country’s mobile payment systems.

    The latest data from the People’s Bank of China shows that the volume of transactions made by international tourists during the Chinese New Year holiday, which ran from Jan. 28 to Feb. 4 this year, surged significantly from last year. The total number of cross-border transactions processed by China UnionPay and NetsUnion Clearing Corporation increased 124.54 percent, and the total transaction value grew 90.49 percent.

    This jump in payment activity reflects not only the growing appeal of China as a travel destination but also the seamless integration of mobile payment systems for foreign visitors.

    In cities like Shanghai, foreign tourists can now use international credit cards or mobile payment apps such as Alipay for shopping, dining and sightseeing, which allowed tourists to enjoy the cultural experiences on offer fully during the Chinese New Year.

    German tourist Carla Uhrmacher, who visited the famous Yuyuan Garden in the eastern Chinese metropolis of Shanghai, was impressed by the ease with which she could use her mobile payment app to buy traditional Chinese crafts and souvenirs. “Whether using Visa or Mastercard, or mobile payment systems, it’s all very seamless,” she noted, highlighting how accessible these payment methods are for international visitors.

    This Spring Festival saw an increase in payment transactions and a significant rise in the number of foreign visitors to China. Inbound arrivals during this year’s Spring Festival hit a record high, with a 150 percent year-on-year leap reported, Lin Jian, a spokesperson for China’s foreign ministry, told a press conference on Wednesday, citing data from third-party platforms.

    While popular destinations such as Beijing, Shanghai and Guangzhou continued to attract large numbers of foreign travelers during the holiday, cities like Suzhou, Xi’an, Chengdu and Xiamen emerged as new favorites for international tourists using mobile payment services, Alipay data shows.

    This surge in international visitors can be largely attributed to China’s ongoing efforts to enhance its payment services for foreigners. The country has made it easier for international travelers to use their foreign credit cards by allowing them to link these cards directly to popular Chinese mobile payment platforms like Alipay and WeChat Pay.

    An increasing number of international e-wallets are now also supported for use in China. Alipay, for example, now allows users to link 13 different overseas e-wallets from countries like the Philippines, Thailand and Singapore.

    Though cashless payment services have improved significantly, foreign tourists can also take advantage of a network of nearly 70,000 bank branches, 320,000 ATMs, and currency exchange facilities across the country.

    This year’s Spring Festival also saw a notable increase in foreigner spending, particularly in cities like Beijing, where tourists from various countries flocked to shopping areas such as Qianmen Street to purchase souvenirs, local teas and trendy clothing.

    This spending boom is backed by figures, with the number of transactions made by foreign visitors on WeChat increasing 134 percent compared to last year’s Spring Festival, and with the total spent via Alipay rising 150 percent during the first five days of the holiday. These figures reflect not only the convenience of mobile payments but also the growing enthusiasm of foreign tourists to purchase Chinese goods and immerse themselves in local culture.

    An increasingly open China is becoming an even more attractive destination for international tourists as Chinese New Year is celebrated globally, and as payment services continue to improve, analysts in China have noted. And these improved payment experiences will make China travel even smoother and more enjoyable for international visitors.

    MIL OSI China News –

  • MIL-OSI: Danske Bank A/S initiates share buy-back programme

    Source: GlobeNewswire (MIL-OSI)

    Company announcement no 6 2025 Danske Bank
    Bernstorffsgade 40
    DK-1577 København V
    Tel. + 45 45 14 14 00

    7 February 2025

    Page 1 of 1

    Danske Bank A/S initiates share buy-back programme

    In line with the distribution plan announced in the press release regarding the annual report for 2024 published on 7 February 2025, the Board of Directors of Danske Bank A/S (“Danske Bank”) has resolved to utilise the authorisation granted by the Annual General Meeting on 21 March 2024 to repurchase shares by initiating a share buy-back programme of up to DKK 5 billion (the “Programme”).

    The purpose of the Programme is to reduce the share capital of Danske Bank.

    The Programme will be implemented in accordance with Article 5 of Regulation (EU) No 596/2014 of the European Parliament and Council of 16 April 2014 (the “Market Abuse Regulation”) and the Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 (together with the Market Abuse Regulation, the “Safe Harbour Rules”).

    The Programme will be conducted in the period from 10 February 2025 to 30 January 2026, at the latest. Danske Bank may, however, at any time suspend or terminate the Programme.

    The following additional conditions apply to the Programme:

    • Share repurchases will only take place on Nasdaq Copenhagen A/S.
    • The Programme will be managed by an independent lead manager, which, under a separate agreement with Danske Bank, will make its trading decisions regarding the timing of the share repurchases independently of, and without influence by Danske Bank, within the timeframe set out in this announcement.
    • The maximum amount allocated to the Programme is DKK 5 billion.
    • The maximum number of shares that may be acquired under the Programme is 45,000,000 shares.
    • Shares acquired under the Programme may not be purchased at a price exceeding the higher of (i) the share price of the last independent transaction on Nasdaq Copenhagen A/S, and (ii) the highest independent bid on the shares on Nasdaq Copenhagen A/S. The shares may not be acquired at a price deviating more than 10% from the price quoted on Nasdaq Copenhagen A/S at the time of acquisition.
    • Purchases on Nasdaq Copenhagen A/S made on one single purchase day may not exceed 25% of the average daily trading volume of the shares during the 20 preceding trading days before the purchase day.        

    Information about shares acquired under the Programme will be published weekly on Danske Bank’s website www.danskebank.com and via company announcements. Danske Bank will also on its website and via company announcement publish information about any subsequent changes to the Programme should such occur, including any termination of the Programme.

    Danske Bank

    Contacts:        Helga Heyn, Head of Media Relations, tel. +45 45 14 14 00
    Claus Ingar Jensen, Head of Group Investor Relations, tel. +45 25 42 43 70

    Attachment

    The MIL Network –

  • MIL-OSI Economics: Standing Liquidity Facility for Primary Dealers

    Source: Reserve Bank of India

    RBI/2024-25/110
    REF.No.MPD.BC.398/07.01.279/2024-25

    February 07, 2025

    All Primary Dealers,

    Standing Liquidity Facility for Primary Dealers

    As announced in the bi-monthly Monetary Policy Statement, 2024-25, today, it has been decided by the Monetary Policy Committee (MPC) to reduce the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.50 per cent to 6.25 per cent with immediate effect.

    2. Accordingly, the Standing Liquidity Facility provided to Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the revised repo rate of 6.25 per cent with immediate effect.

    Yours faithfully,

    (Praggya Das)
    Adviser-in-Charge

    MIL OSI Economics –

  • MIL-OSI: Progress in customer activity as well as core banking activities continued, and credit quality remained strong – Record-high net profit of DKK 23.6 billion, improving return on equity to 13.4%

    Source: GlobeNewswire (MIL-OSI)

    Press release Danske Bank
    Bernstorffsgade 40
    DK-1577 København V
    Tel. + 45 45 14 14 00

    7 February 2025

    Progress in customer activity as well as core banking activities continued,
    and credit quality remained strong
    Record-high net profit of DKK 23.6 billion, improving return on equity to 13.4%
    Dividend of DKK 9.35 per share for the second half of 2024 as well as an extraordinary dividend of DKK 5.35 per share, in total DKK 14.7 per share
    The Board of Directors has decided to initiate a new share buy-back programme of DKK 5 billion

    Danske Bank has announced its financial results for 2024.
    Carsten Egeriis, Chief Executive Officer, comments on the financial results:

    “For Danske Bank, 2024 was a year in which we consistently delivered positive results from quarter to quarter, driven by increased customer activity, continually strong credit quality and a sustained, dedicated effort from the entire organisation. Consequently, we maintained our positive commercial momentum, resulting in a solid financial performance.

    One year into the execution of our Forward ’28 strategy, we have made substantial progress within our technology transformation and customer engagement, and we can see that our investments in enhancing the customer experience have resulted in increasingly positive customer satisfaction scores.

    Our continued focus on cost discipline and on maintaining strong credit quality resulted in two upward adjustments of our financial guidance in 2024. On the basis of our strong financial results and solid capital position, the total distribution in 2024 amounts to 100% of net profit, thus honouring the commitment we have made to our shareholders.

    With our advanced customer offerings, deep expertise and solid financial position, Danske Bank is strongly positioned to create value for customers, shareholders and society. In a time of heightened geopolitical uncertainty, rapid technological shifts and increasing sustainability challenges, we will continue to focus on opportunities and solutions for households and businesses alike.”

    The annual report is available at www.danskebank.com. Highlights are shown below:

    2024 vs 2023
    Total income of DKK 56.4 billion (up 8%)
    Operating expenses of DKK 25.7 billion (up 1%)
    Loan impairments of DKK -543 million (2023: DKK 262 million)
    Net profit of DKK 23.6 billion (up 11%)
    Return on shareholders’ equity of 13.4% (2023: 12.7%)
    Strong capital position, with a CET1 capital ratio of 17.8% (2023: 18.8%). The ratio reflects strong capital generation and the full deduction of the announced 40% additional capital distribution.
    Solid progress towards Forward ’28 ambitions and 2026 targets
    2024 was the first full year of our Forward ’28 strategy, and we are well-positioned for future growth as we maintain our trajectory towards strengthening our position as a leading bank in the Nordic region and make significant investments in our customer offerings.

    For personal and private banking customers, with Forward ’28, a sharpened focus in each of our markets has allowed us to further strengthen our relations with existing customers and attract new ones. For business and institutional customers, we want to be a leading bank in the markets in which we operate. Our approach focuses on meeting evolving market demands while fostering high long-term customer and employee satisfaction.

    Significant progress with our technology transformation paved the way for a better customer experience and improved efficiency. In 2024, we made substantial progress in terms of using digitalisation, data, AI and technology to improve customer engagement while reducing costs and operational risks. We developed a new version of our District online banking platform that is tailored to small businesses and is expected to launch in Denmark in the first half of 2025. We also launched a new welcoming app that makes it both easier and faster to become a personal customer with us.

    Across the bank, we have made GenAI a strategic priority, and our GenAI-powered solutions offer key opportunities to unlock productivity gains. During 2024, we launched DanskeGPT, which has been adopted by almost 16,000 users across the organisation, corresponding to 74% of all employees. We have also deployed GenAI-powered tools for our software developers, and these tools are driving solid productivity improvements.

    In 2024, Danica developed its new commercial strategy, Forward ’28 – Danica, which aims to make Danica the preferred pension company in Denmark by 2028. The strategy, which took effect on 1 January 2025, focuses on the importance of making customer interactions with Danica easy and convenient through digital solutions and on offering comprehensive healthcare offerings, attractive returns and quality advice. These elements are expected to be key growth drivers over the next few years. The strategy aligns with the strategic direction set in Danske Bank’s Forward ’28 strategy, underscoring the significant potential in synchronising services between the bank and the pension business.

    As the success of our strategy relies on solid execution, we have a significant focus on our employees, supported by investments in development activities, leadership and the workplace. Employee satisfaction and engagement scores continued to improve from already high levels and are now above the industry benchmark.

    Sustainability is a key focus area in Forward ’28, and our ambition is to be a leading Nordic bank in terms of supporting the sustainability transition of customers, businesses and the Nordic societies that we are a part of. Our efforts are reinforced by new ESG advisory services, comprehensive staff training, recruitment of specialists and strategic partnerships, all aimed at supporting our customers’ sustainability transition. In line with European regulation, for the 2024 annual report, Danske Bank has prepared a sustainability statement in accordance with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).

    Better-than-expected macroeconomic conditions
    Macroeconomic conditions developed more favourably than expected in the markets in which we operate. Especially in Denmark, the inflation and growth outlook improved during the year, and this development is forecast to continue as central banks continue their easing trajectories, leading to lower rates for both households and businesses. Although the growth outlook has improved broadly speaking in the Nordic region, the uncertainty related to Europe’s long-term growth prospects and ability to innovate persists.

    In times of uncertainty for both Danske Bank and our customers, our well-capitalised balance sheet has enabled us to be a strong financial partner for our customers, and we have continued to support them with risk management expertise and expert advice.

    Strong financial performance
    An improved commercial momentum in our business, supported by better-than-expected macroeconomic conditions and strong credit quality have enabled us to strengthen profitability and generate record-high net profit. The return on equity thus increased from 12.7% to 13.4%, highlighting our positive trajectory and progress towards our 2026 targets.

    In 2024, total income grew 8%, driven by a sustained uplift in core banking income. Despite central bank rate cuts and lower deposit margins as well as overall muted credit demand, net interest income showed the expected strong development, with increasing net interest income throughout the year. Net fee income continued the positive traction throughout the year, reflecting our overall strong development and ability to do more business with existing customers and to attract new customers. We saw a higher level of fee income from cash management products, and customer activity generally remained high. Furthermore, we saw an increase in investment fees generated by strategic investments in our private banking offerings as well as a strong development in fees from asset management.

    Net trading income remained stable, and net income from insurance business benefited from stable financial markets, with the health and accident business continuing to be challenged, however.

    Operating expenses developed according to plan and were at the same level as in 2023. The minor year-on-year increase was caused mainly by higher investments in our technology transformation made under our Forward ’28 strategy and staff costs that were impacted by wage inflation. Costs related to financial crime prevention and legacy remediation decreased in line with our plan for a normalisation of costs, and together with prudent cost management, this led to an improvement in the cost/income ratio to 46% from 49%.

    Loan impairment charges amounted to a net reversal of DKK 543 million, reflecting strong credit quality and modest impairments against single-name exposures coupled with a review of post-model adjustments. We continue to apply significant post-model adjustments as well as a scenario-based macroeconomic model to cater for potential tail risks that are not evident in our portfolio. Overall, the macroeconomic environment improved during 2024 and was characterised by lower inflation, lower interest rates and an enhanced growth momentum.

    Overall, we ended the year with the same positive momentum that we saw in the first nine months of 2024. This resulted in record-high net profit of DKK 23.6 billion, up 11% from 2023.

    “The first year of execution of our Forward ’28 strategy, 2024 was an important year for Danske Bank’s financial performance: With income growth driven by our growing core income as well as our continued efforts to support customers and drive the commercial momentum, net profit represents a record-high result,” says Stephan Engels, Chief Financial Officer.
    We continue to create value to the benefit of our customers, our shareholders and society: Our tax expense amounted to DKK 7.6 billion, and given our strong capital position, and in line with the Forward ’28 strategy, the financial year 2024 enables us to make a significant payout to our shareholders.

    Delivering on capital distribution
    Given our strong balance sheet, and as planned in the Forward ’28 strategy, the financial year 2024 yields a significant payout to our shareholders. We paid a dividend of DKK 7.50 per share in connection with the interim report for the first half of 2024, and we propose a dividend of DKK 9.35 per share for the second half of 2024 as well as an extraordinary dividend of DKK 5.35 per share. Furthermore, on 6 December 2024, we announced a special dividend of DKK 6.50 per share following the successful transfer of the personal customer business in Norway. In total, our distribution for 2024 amounts to DKK 28.70 per share.

    It remains crucial for us to create value for all our stakeholders, including our shareholders, customers, employees and the societies we are part of, and as a bank we need to attract capital from shareholders to lend and do business. Besides large institutional investors, our capital distribution benefits most major pension funds in Denmark as well as private individuals in Denmark, who have invested part of their savings in Danske Bank shares. In total, we have more than a quarter of a million investors, of which more than half are private individuals in Denmark.

    Danske Bank’s dividend policy for 2025 remains unchanged, targeting a dividend payout of 40-60% of net profit in the form of annual dividend payments.

    Share buy-back
    The share buy-back programme launched in February 2024 of DKK 5.5 billion was completed in January 2025.

    On the basis of the financial results for 2024, the Board of Directors has decided to initiate a new share buy-back programme of DKK 5 billion, taking the total payout ratio to 100% of net profits when including the dividend for 2024 but excluding the special dividend related to the transfer of the personal customer business in Norway. The programme, which has been approved by the Danish Financial Supervisory Authority, will start on 10 February 2025.

    Outlook for 2025
    We expect net profit for 2025 to be in the range of DKK 21-23 billion.
    The outlook is subject to uncertainty and depends on economic conditions.

    Download the Annual Report as zip here.

    Danske Bank

    Contact: Helga Heyn, Head of Media Relations, tel. +45 45 14 14 00

    More information about Danske Bank’s financial results is available at www.danskebank.com/reports.

    Attachments

    The MIL Network –

  • MIL-OSI Economics: Result of Underwriting Auction conducted on February 07, 2025

    Source: Reserve Bank of India

    In the underwriting auction conducted on February 07, 2025, for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers as given below:

    Nomenclature of the Security Notified Amount
    (₹ crore)    		 Minimum Underwriting Commitment (MUC) Amount
    (₹ crore)    		 Additional Competitive Underwriting Amount Accepted
    (₹ crore)    		 Total Amount underwritten
    (₹ crore)    		 ACU Commission Cut-off rate
    (paise per ₹100)
    6.92% GS 2039 12,000 6,006 5,994 12,000 0.22
    7.09% GS 2054 10,000 5,019 4,981 10,000 0.18
    Auction for the sale of securities will be held on February 07, 2025.

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2024-2025/2098

    MIL OSI Economics –

  • MIL-OSI Economics: Robust corporate governance a strategic imperative for business resilience and growth, says GlobalData

    Source: GlobalData

    Robust corporate governance a strategic imperative for business resilience and growth, says GlobalData

    Posted in Strategic Intelligence

    Effective corporate governance is essential for sustainable business growth. As regulatory scrutiny intensifies, companies must strengthen governance frameworks, including risk management and anti-corruption measures, to ensure compliance and long-term resilience. Weak governance can undermine trust, while a well-structured approach enhances competitiveness, drives value creation, and positions businesses for sustained success, according to GlobalData, a leading data and analytics company.

    GlobalData’s latest Strategic Intelligence report, “ESG – Governance Factors,” reveals that poor governance practices are at the root of many corporate scandals. In 2024, the US regulators criticized Boeing’s board for failing to hold management accountable for a deterioration of controls around safety standards. The company’s challenges predate the COVID-19 pandemic and labor strikes, with the 737 MAX crashes exposing serious lapses in production quality, oversight, and regulatory compliance.

    Pinky Hiranandani, Senior Strategic Intelligence Analyst at GlobalData, comments: “Governance failures have led to the demise of several companies. In 2024, Sam Bankman-Fried, founder and CEO of cryptocurrency exchange FTX, was sentenced to 25 years in prison for defrauding investors. The collapse of FTX underscores the critical importance of robust corporate governance and highlights the need for investors to prioritize governance risks in their due diligence processes.”

    Indian edtech startup Byju’s saw its valuation collapse from $22 billion in 2022 to just $1 billion in 2024. Aggressive acquisitions, coinciding with a post-pandemic slowdown in edtech demand, exacerbated its challenges. Governance concerns, including a lack of transparency in management, further eroded investor confidence, underscoring the critical role of sound governance in sustaining business stability.

    Hiranandani concludes: “Companies with poor corporate structure and risk management, weak internal controls, and unethical practices can quickly become the target of consumer and shareholder ire, which can jeopardize their future viability. As regulatory expectations rise, businesses must view governance not as a compliance burden but as a strategic advantage that fosters innovation, enhances reputation, and drives sustainable growth.”

    MIL OSI Economics –

  • MIL-OSI China: Announcement on Open Market Operations No.23 [2025]

    Source: Peoples Bank of China

    Announcement on Open Market Operations No.23 [2025]

    (Open Market Operations Office, February 7, 2025)

    In order to keep liquidity adequate in the banking system, the People’s Bank of China conducted reverse repo operations in the amount of RMB183.7 billion through quantity bidding at a fixed interest rate on February 7, 2025.

    Details of the Reverse Repo Operations

    Maturity

    Volume

    Rate

    7 days

    RMB183.7 billion

    1.50%

    Date of last update Nov. 29 2018

    2025年02月07日

    MIL OSI China News –

  • MIL-OSI Australia: Minister Rishworth interview on 3AW drive with Jacqui Felgate

    Source: Ministers for Social Services

    E&OE TRANSCRIPT

    Topics: NDIS; NDIS fraud; Investment in Saver Plus.

    JACQUI FELGATE, HOST:    I do want to touch base now, though, on the NDIS, because I think it’s a really important issue and it’s one that a lot of victims in this case and a lot of people with disabilities and special needs that needed help under the last system didn’t get it. It’s now in the hands of Amanda Rishworth, who’s the new Minister for the NDIS following the retirement of Labor MP Bill Shorten. So, for the first time on 3AW, she joins me now. Minister, really appreciate your time.

    AMANDA RISHWORTH, MINISTER FOR SOCIAL SERVICES:    Great to be with you.

    AMANDA RISHWORTH:    Well, what it means in practical terms is that if someone has a permanent and significant disability, what they can do is go to see a planner at the NDIS and they will make an assessment and give you funding to buy in a whole range of individualised supports. So, that might be therapy supports like physiotherapy, it might be personal care or nursing. It might be equipment like a wheelchair. Previously to the NDIS, people just used to get allocated a wheelchair or told to go to a certain place and that’s where they could get their physiotherapy. When the NDIS came in, you got funding in which the person with the disability could go and then find a provider and spend the money they were allocated to get that service. So, it provided a lot more control for people with disability. It has changed so many people’s lives, but it’s very individualistic, so it is what you need as an individual. And so it is quite complex at times and can be difficult to navigate, but it really has changed so many people’s lives because it’s provided an individualised support for people that need it.

    JACQUI FELGATE:    So, when you say complex, we do know the system has been fraught with problems to the point of alleged fraud as well. Last year, when we spoke to a lot of, particularly parents of young children, they felt like their funding had been reduced or cut unnecessarily. Are you going through all of those cases on an individual basis and can you reassure people that those who really need it are going to get the funding?

    AMANDA RISHWORTH:    Firstly, I would say that as Minister, the NDIS review process happens independently for me. But I can say and give your listeners reassurance, there haven’t been any changes around the rules in which young children are assessed. What there has been a change to is a list of what’s in and can be funded by the NDIS and what’s out of that list. And that was about making sure that the NDIS funds were actually used appropriately. There are a lot of things that were on that list that, you know, salt therapy was one of these things. There’s no evidence for that. But when it comes to children, there have been no changes around access and what can be funded under the scheme. There’s an individualised assessment to that and that’s really important. But there haven’t been any changes to what can be funded.

    JACQUI FELGATE:    And what about the rorts and the fraud? How can you guarantee that that won’t happen in the future?

    AMANDA RISHWORTH:    Look, some of the cases, particularly service providers that have been acting appallingly, was really shocking. So, we have, as under the previous Minister, set up what was called the Fraud Fusion Task Force, which actually brought together intel from a range of agencies, the AFP, the NDIA and a whole range of structures to deal with fraud. And so that continues do its work to make sure it’s identifying dodgy actors in this and hold them to account. And we have a number of ongoing investigations and referrals for prosecution. But some of the other work that’s been really important to make sure that this money gets used wisely is making sure people understand what can be funded and what can’t be, particularly service providers. They need to understand and give the right advice. So, the other element I’m really keen on is driving up quality. So, this isn’t just bad actors in the scheme, this is actually making sure that every participant, when they spend their NDIS money, get a high quality service, that there’s appropriate safeguards and protections in place as well.

    JACQUI FELGATE:    So, how do you think it got to that point, though, where we heard the most ridiculous examples and we heard the most desperate examples of people who really needed help but couldn’t get it? And then the rorts, like how did it allow over all these years, how did that get to that point, Minister?

    AMANDA RISHWORTH:    Well, people just weren’t paying attention. I mean, ultimately you heard stories the…

    JACQUI FELGATE:    The former Minister wasn’t paying attention?

    AMANDA RISHWORTH:    The former government wasn’t paying attention. I mean, when Minister Shorten came into this portfolio, he identified very quickly that there had been no checks and balances, that there hadn’t been proper oversight over this scheme. It had been left just to meander and there hadn’t been the appropriate protections put in place. So, Minister Shorten himself identified this very quickly and has stood up a whole range of oversight mechanisms to look at this. So, it really was the previous government…

    JACQUI FELGATE:    You can’t always blame the previous government, though, you have been in power for nearly four years.

    AMANDA RISHWORTH:    Well, you know about the challenges because we’ve identified them. You know about these cases that have happened over the last two years because they haven’t got away with it. I mean, that’s ultimately why, you know about these circumstances, why we’ve seen some of the articles in the paper, is because we have now got the oversight mechanisms to identify them and take them to court. So, we do need to maintain vigilance on this. It is critically important, but it’s also important that people don’t get dodgy service and there is quality services out there as well.

    JACQUI FELGATE:    Okay, so what’s the Saver Plus program and how’s that going to make a difference?

    AMANDA RISHWORTH:    The Saver Plus program is separate from the NDIS. This is a really important program where people that may be wanting to get a bit more financial capability to have matched savings with the ANZ Bank. We have just funded this program. It’s been going for 21 years. We’ve now extended their funding for another five years. It’s funded through the Brotherhood of St Laurence and really does support people become financially resilient and support them for really good saving habits. So, it’s a really good program. And I’m really pleased that today we’ve announced extra funding for that.

    JACQUI FELGATE:    Amanda Rishworth is the Minister for Social Services and the NDIS. Really appreciate your time, Minister.

    AMANDA RISHWORTH:    Thank you.

    MIL OSI News –

  • MIL-OSI Economics: Liquidity Adjustment Facility – Change in rates

    Source: Reserve Bank of India

    RBI/2024-25/109
    FMOD.MAOG.No.150/01.01.001/2024-25

    February 07, 2025

    All Liquidity Adjustment Facility (LAF) participants

    Madam/Sir,

    Liquidity Adjustment Facility – Change in rates

    As announced in the Monetary Policy Statement dated February 07, 2025, it has been decided by the Monetary Policy Committee (MPC) to reduce the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.50 per cent to 6.25 per cent with immediate effect.

    2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 6.00 per cent and 6.50 per cent respectively, with immediate effect.

    3. All other terms and conditions of the extant LAF Scheme will remain unchanged.

    Yours sincerely,

    (G. Seshsayee)
    Chief General Manager

    MIL OSI Economics –

  • MIL-OSI China: Bank of England cuts interest rate to 4.5%

    Source: China State Council Information Office

    The British central bank announced on Thursday that it would cut the interest rate from 4.75 percent to 4.5 percent, citing concerns about stagnant growth.

    The decision was made by the Monetary Policy Committee of the Bank of England (BoE), which voted 7-2 to cut rates. Two committee members called for a bigger rate cut of half a percentage point.

    December’s inflation rate dropped from 2.6 percent to 2.5 percent, with core inflation falling from 3.5 percent to 3.2 percent, while services inflation experienced an even bigger drop from 5 percent to 4.4 percent, providing a base for a potential interest rate cut.

    The BoE said that the economy’s potential growth rate had dropped from 1.5 percent to 0.75 percent year-on-year. The bank also indicated that while it expects last October’s Budget to boost economic growth by 0.75 percent, thanks largely to greater public investment, the National Insurance rise will weigh down on activity, particularly by reducing employment.

    MIL OSI China News –

  • MIL-OSI China: Foreign visitors experience China’s mobile payment environment

    Source: China State Council Information Office

    Tourists from France enjoy a soup dumpling at Yuyuan Garden Mall in Shanghai, east China, Jan. 21, 2025. [Photo/Xinhua]

    Foreign visitors in China experienced a smoother, more convenient travel environment during this year’s Spring Festival, thanks to improvements to the country’s mobile payment systems.

    The latest data from the People’s Bank of China shows that the volume of transactions made by international tourists during the Chinese New Year holiday, which ran from Jan. 28 to Feb. 4 this year, surged significantly from last year. The total number of cross-border transactions processed by China UnionPay and NetsUnion Clearing Corporation increased 124.54 percent, and the total transaction value grew 90.49 percent.

    This jump in payment activity reflects not only the growing appeal of China as a travel destination but also the seamless integration of mobile payment systems for foreign visitors.

    In cities like Shanghai, foreign tourists can now use international credit cards or mobile payment apps such as Alipay for shopping, dining and sightseeing, which allowed tourists to enjoy the cultural experiences on offer fully during the Chinese New Year.

    German tourist Carla Uhrmacher, who visited the famous Yuyuan Garden in the eastern Chinese metropolis of Shanghai, was impressed by the ease with which she could use her mobile payment app to buy traditional Chinese crafts and souvenirs. “Whether using Visa or Mastercard, or mobile payment systems, it’s all very seamless,” she noted, highlighting how accessible these payment methods are for international visitors.

    This Spring Festival saw an increase in payment transactions and a significant rise in the number of foreign visitors to China. Inbound arrivals during this year’s Spring Festival hit a record high, with a 150 percent year-on-year leap reported, Lin Jian, a spokesperson for China’s foreign ministry, told a press conference on Wednesday, citing data from third-party platforms.

    While popular destinations such as Beijing, Shanghai and Guangzhou continued to attract large numbers of foreign travelers during the holiday, cities like Suzhou, Xi’an, Chengdu and Xiamen emerged as new favorites for international tourists using mobile payment services, Alipay data shows.

    This surge in international visitors can be largely attributed to China’s ongoing efforts to enhance its payment services for foreigners. The country has made it easier for international travelers to use their foreign credit cards by allowing them to link these cards directly to popular Chinese mobile payment platforms like Alipay and WeChat Pay.

    An increasing number of international e-wallets are now also supported for use in China. Alipay, for example, now allows users to link 13 different overseas e-wallets from countries like the Philippines, Thailand and Singapore.

    Though cashless payment services have improved significantly, foreign tourists can also take advantage of a network of nearly 70,000 bank branches, 320,000 ATMs, and currency exchange facilities across the country.

    This year’s Spring Festival also saw a notable increase in foreigner spending, particularly in cities like Beijing, where tourists from various countries flocked to shopping areas such as Qianmen Street to purchase souvenirs, local teas and trendy clothing.

    This spending boom is backed by figures, with the number of transactions made by foreign visitors on WeChat increasing 134 percent compared to last year’s Spring Festival, and with the total spent via Alipay rising 150 percent during the first five days of the holiday. These figures reflect not only the convenience of mobile payments but also the growing enthusiasm of foreign tourists to purchase Chinese goods and immerse themselves in local culture.

    An increasingly open China is becoming an even more attractive destination for international tourists as Chinese New Year is celebrated globally, and as payment services continue to improve, analysts in China have noted. And these improved payment experiences will make China travel even smoother and more enjoyable for international visitors.

    MIL OSI China News –

  • MIL-OSI Economics: Money Market Operations as on February 06, 2025

    Source: Reserve Bank of India
    (Amount in ₹ crore, Rate in Per cent)
      Volume
    (One Leg)    		 Weighted
    Average Rate    		 Range
    A. Overnight Segment (I+II+III+IV) 5,62,738.64 6.29 3.50-8.00
         I. Call Money 14,447.56 6.45 5.15-6.60
         II. Triparty Repo 3,61,611.60 6.25 6.10-6.35
         III. Market Repo 1,84,089.88 6.33 3.50-6.60
         IV. Repo in Corporate Bond 2,589.60 6.94 6.45-8.00
    B. Term Segment      
         I. Notice Money** 69.50 6.28 6.10-6.35
         II. Term Money@@ 368.50 – 6.60-6.70
         III. Triparty Repo 2,346.00 6.35 6.30-6.40
         IV. Market Repo 1,000.00 6.50 6.50-6.50
         V. Repo in Corporate Bond 0.00 – –
      Auction Date Tenor (Days) Maturity Date Amount Current Rate /
    Cut off Rate
    C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF)
    I. Today’s Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo          
      (II) Fine Tuning Operations          
         (a) Repo Thu, 06/02/2025 1 Fri, 07/02/2025 21,674.00 6.51
         (b) Reverse Repo          
    3. MSF# Thu, 06/02/2025 1 Fri, 07/02/2025 163.00 6.75
    4. SDFΔ# Thu, 06/02/2025 1 Fri, 07/02/2025 1,22,506.00 6.25
    5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*       -1,00,669.00  
    II. Outstanding Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo Fri, 24/01/2025 14 Fri, 07/02/2025 1,62,096.00 6.51
         (b) Reverse Repo          
      (II) Fine Tuning Operations          
         (a) Repo          
         (b) Reverse Repo          
    3. MSF#          
    4. SDFΔ#          
    D. Standing Liquidity Facility (SLF) Availed from RBI$       8,328.42  
    E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     1,70,424.42  
    F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     69,755.42  
    G. Cash Reserves Position of Scheduled Commercial Banks
         (i) Cash balances with RBI as on February 06, 2025 8,95,198.92  
         (ii) Average daily cash reserve requirement for the fortnight ending February 07, 2025 9,12,544.00  
    H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ February 06, 2025 21,674.00  
    I. Net durable liquidity [surplus (+)/deficit (-)] as on January 10, 2025 -40,102.00  
    @ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
    – Not Applicable / No Transaction.
    ** Relates to uncollateralized transactions of 2 to 14 days tenor.
    @@ Relates to uncollateralized transactions of 15 days to one year tenor.
    $ Includes refinance facilities extended by RBI.
    & As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
    Δ As per the Press Release No. 2022-2023/41 dated April 08, 2022.
    * Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo-SDF.
    ¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
    # As per the Press Release No. 2023-2024/1548 dated December 27, 2023.
    Ajit Prasad          
    Deputy General Manager
    (Communications)    
    Press Release: 2024-2025/2093

    MIL OSI Economics –

  • MIL-OSI China: Hamas urges Arab League, OIC to hold emergency sessions on Trump’s Gaza relocation proposal

    Source: China State Council Information Office

    Hamas on Thursday called on the Arab League and the Organization of Islamic Cooperation to convene emergency sessions to address U.S. President Donald Trump’s threats to relocate Palestinians from Gaza, urging for a strong, unified stance against these plans.

    In a press release, Hamas leader Mahmoud Mardawi called for coordinated diplomatic efforts at both the Arab and international levels, emphasizing the need for a united Palestinian stance against any proposals that undermine their rights or aim to displace them from their land.

    He also called for strengthening Palestinian unity and forming a unified front to develop a comprehensive strategy for addressing the threats to Gaza and Palestine as a whole, emphasizing that the response should involve a coordination of political, diplomatic, and practical measures.

    The Hamas leader also strongly rejected Trump’s proposals, describing them as “racist” and a continuation of settlement policies aimed at undermining the Palestinian cause, striping Palestinians of their rights, and displacing them from their homeland.

    “Our Palestinian people — whether in Gaza, the West Bank, Jerusalem, or within Israel — will never give up their rights or allow themselves to be displaced. Trump’s remarks are just another illusion from an American administration that favors the occupation, and this scheme will collapse as all previous ones,” he said.

    MIL OSI China News –

  • MIL-OSI China: More Mideast countries reject Trump’s Gaza relocation plan

    Source: China State Council Information Office

    A Palestinian child is seen on a destroyed building in Jabalia refugee camp in the northern Gaza Strip, on Jan. 29, 2025. [Photo/Xinhua]

    More countries in the Middle East on Thursday voiced their rejection of a proposal by U.S. President Donald Trump to take control of the Gaza Strip and relocate its residents elsewhere.

    On Tuesday, Trump suggested that the United States will take over Gaza and redevelop it after Palestinians are relocated elsewhere. He made these remarks in a joint press conference at the White House with visiting Israeli Prime Minister Benjamin Netanyahu.

    Many Arab and Muslim countries have voiced their opposition to the idea of displacing the Gazans from their homeland.

    The Palestinian presidency on Thursday said that Palestine and its land, history, and holy sites are not for sale, emphasizing that the rights of the Palestinian people are neither negotiable nor subject to compromise.

    In a press statement, Nabil Abu Rudeineh, the spokesman of the Palestinian presidency, said, “The Palestinian people, who have made immense sacrifices in defense of their national rights, will not relinquish even an inch of their land, including the Gaza Strip, the West Bank, and East Jerusalem.”

    Any proposed solutions, he insisted, must align with international legitimacy and the Arab Peace Initiative.

    Egypt reaffirmed its commitment on Thursday to collaborate with international partners and allies to implement plans for Gaza’s early recovery, rubble removal, and reconstruction within a specific timeframe.

    This plan will be implemented as the Palestinians will remain in the Gaza Strip, who refuse to be displaced, according to a statement by the Egyptian Foreign Ministry.

    The statement also rejected “any proposal or vision” that seeks to resolve the Palestinian issue by uprooting the Palestinian people, displacing them from their historical land, or seizing that land, whether temporarily or permanently, while affirming that Egypt will not be “party to any such actions.”

    Algeria on Thursday strongly condemned the proposal aimed at displacing Gaza residents, warning that such moves are part of a broader scheme to undermine the Palestinian national cause.

    In a statement issued by the Ministry of Foreign Affairs, Algeria reiterated its firm stance that achieving lasting peace in the Middle East is inseparable from upholding the rights of the Palestinian people to an independent state.

    Algeria underscored its support for the establishment of an independent and sovereign Palestinian state based on the two-state solution, considering it “the only just and permanent resolution to the Israeli-Palestinian conflict.”

    The Libyan Foreign Ministry on Thursday also rejected any attempt to displace Palestinians from the Gaza Strip and the occupied West Bank.

    “The Ministry of Foreign Affairs and International Cooperation of the State of Libya confirms its firm and supportive position on the inalienable rights of the Palestinian people … foremost among which is the right of the Palestinian people to establish their independent state with Jerusalem as its capital,” the ministry said in a statement.

    “Libya stresses its absolute rejection of any practices aimed at the forced displacement or arbitrary expulsion of Palestinians, changing the demographic composition of the occupied territories, or imposing racist policies that perpetuate the occupation and violate the most basic human rights,” the statement noted.

    It condemned any “acts of violence targeting civilians or acts used as a pretext to perpetuate the occupation and undermine the chances of achieving a just peace.”

    On Wednesday, Turkish President Recep Tayyip Erdogan rejected the proposal during a joint press conference in Ankara with his visiting German counterpart, Frank-Walter Steinmeier.

    “Everyone has a great responsibility in maintaining the ceasefire in Gaza. As the international community, we must continue our efforts for a two-state solution,” Erdogan emphasized.

    In response to Trump’s proposal, Foreign Minister Hakan Fidan said that “neither the region nor we (as Türkiye) can accept such a situation.”

    “The very thought of it is a pointless endeavor. We oppose any initiatives that seek to exclude the people of Gaza from the equation,” Fidan said during a live televised speech.

    “Obviously, it is completely unacceptable, and by no means can it bring peace to the region,” Gulru Gezer, a former Turkish diplomat and foreign policy analyst, told Xinhua on Thursday. “On the contrary, it will only bring greater chaos, not only to Palestine and Israel but to the broader Middle East.”

    During a meeting on Thursday with Palestinian Prime Minister and Foreign Minister Mohammad Mustafa, Arab League (AL) Secretary-General Ahmed Aboul-Gheit reiterated the U.S. proposal for displacing the Gazans was rejected by Arab countries, according to a statement by the AL.

    During the meeting, Aboul-Gheit urged to speed up reconstruction of the Gaza Strip to block the path to the displacement of Gazans.

    “The Palestinian people will not allow the repetition of cleansing Palestinians under the pretext of voluntary or forced exit,” the statement added.

    MIL OSI China News –

  • MIL-OSI Economics: Japan: Staff Concluding Statement of the 2025 Article IV Mission

    Source: International Monetary Fund

    February 7, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    Washington, DC – February 7, 2025[1]:

    After three decades of near-zero inflation, there are signs that Japan’s economy can sustainably converge to a new equilibrium. Inflation has surpassed the Bank of Japan’s 2-percent target for over two years and a tight labor market is delivering the strongest wage growth since the 1990s. But Japan continues to face challenges from its aging population and high public debt. Policy priorities are to re-anchor inflation expectations, rebuild fiscal buffers, and advance labor market reforms to support potential growth.

    RECENT DEVELOPMENTS, OUTLOOK, AND RISKS

    The economy contracted in the first half of 2024 due to temporary supply disruptions but gained momentum in the rest of the year. Domestic demand, private consumption in particular, has strengthened, while net external demand has been sluggish. Both headline and core inflation (excluding fresh food and energy) remain above the BoJ’s 2-percent headline inflation target. Goods inflation has been boosted by energy and food prices, while services price growth is relatively weaker and below 2 percent. Inflation expectations are becoming increasingly aligned with the inflation target, though some measures remain below that target. The yen-dollar exchange rate has experienced sizable swings, largely driven by shifts in interest rate differentials (which reflect broader macroeconomic developments), but also amplified by the build-up and subsequent unwinding of yen carry-trade positions. The pass-through to inflation is estimated to have been relatively mild so far. Wages are growing at their highest rate since the 1990s amid labor shortages and strong inflation, but they have remained lackluster in real terms.

    Growth is expected to accelerate in 2025, with private consumption strengthening further, as above-inflation wage growth will boost households’ disposable income. Private investment is also expected to remain strong, supported by high corporate profits and accommodative financial conditions. The output gap is estimated to be closed, and growth is expected to converge to its potential of 0.5 percent in the medium term. Headline and core inflation are expected to converge to the BoJ’s 2-percent headline inflation target in late 2025, helped by a moderation in commodity prices for oil and food. The current account surplus is expected to moderate in 2025 as the income balance narrows, with the trade balance remaining in deficit. The external position is assessed as broadly in line with the level implied by medium-term fundamentals and desirable policies.

    Risks to growth are tilted to the downside. On the external side, these include a slowdown in the global economy, deepening geoeconomic fragmentation and increasing trade restrictions, and more volatile food and energy prices. On the domestic side, the main downside risk is weak consumption if real wages do not pick up. Another domestic risk to the outlook is a possible decline in confidence in fiscal sustainability that leads to a tightening of financial conditions in the context of high public debt and gross financing needs. If downside risks materialize, it could result in Japan reverting to an effective-lower-bound constrained environment given the still-low level of the policy rate. 

    Risks to inflation are broadly balanced. On the downside, inflation expectations may stall below the headline inflation target following Japan’s prolonged experience with low inflation. Upside risks stem from rising food and energy prices, and from stronger-than-expected wages in the upcoming spring wage negotiations. Higher barriers to trade and cost pressures in major trading partners could spill over to Japan but the impact on domestic prices would be ambiguous given lower economic activity.

    ECONOMIC POLICIES

    Fiscal Policy

    The estimated fiscal deficit in 2024 is smaller than expected at the time of the 2024 Article IV. Tax revenues have been boosted by high corporate profits, and expenditures to support the economic recovery (such as transfers to households and SMEs) have been partly phased out. The fiscal deficit is projected to increase slightly in 2025, with additional spending planned for defense, children-related measures, and industrial policies (IP). There is a significant risk that the deficit will widen further, given the political demands on the minority government. This should be avoided as fiscal space remains limited: any expansionary measure should be offset by higher revenues or expenditure savings elsewhere in the budget.

    Public debt, as a share of GDP, is expected to decline in the near term, as nominal GDP growth is projected to exceed the effective interest rate on public debt. Public debt will remain high, however, and is estimated to start rising by 2030, driven by a higher interest bill and expenditure pressures related to spending on health and long-term care for an aging population. A clear consolidation plan is needed even in the near term to fully offset these pressures, ensure debt sustainability, and increase fiscal space needed to respond to shocks (including from natural disasters). This will require elaborating concrete and credible expenditure and revenue measures in the context of a robust medium-term fiscal framework:

    • The composition of public spending should be more growth-friendly, including by eliminating poorly targeted subsidies, notably energy subsidies, while preserving expenditure on high-quality public investment. Enhancing the targeting and efficiency of social security spending is critical to containing rising costs while preserving quality.
    • On the revenue side, options include strengthening financial income taxation for high-income earners, lowering exemptions and broadening the taxable valuation base under the property tax, streamlining income tax deductions, and unifying and eventually increasing the consumption tax rate. The PIT reform to the income deduction limit that is currently under consideration would need to be financed by additional revenues or savings elsewhere in the budget.
    • The repeated use, and incomplete execution of supplementary budgets undermines efficient resource allocation, budget transparency, and fiscal discipline. The use of supplementary budgets should be limited to responding to large, unexpected shocks that overwhelm automatic stabilizers, which would also avoid providing unwarranted stimulus in normal times. All medium-term spending commitments—including on IP and green transformation—should be incorporated into the regular budget process.

    As interest rates rise, the cost of servicing the large public debt is expected to double by 2030, putting a premium on a robust debt management strategy. In the face of rising gross financing needs and a shrinking BoJ balance sheet, government bond issuance will need to rely on additional demand from foreign investors and domestic institutions.

    Monetary and Exchange Rate Policies

    The current accommodative monetary policy stance is appropriate and will ensure inflation expectations rise sustainably to the 2-percent inflation target. Accommodation should continue to be withdrawn gradually if the baseline forecast bears out, under which we expect the policy rate would reach a neutral level by end-2027. High domestic and external uncertainty underscore the need for the BoJ to maintain its data-dependent and flexible approach and clear communications to anchor market expectations.

    The BOJ’s ongoing reduction in the size of its balance sheet has been clearly communicated, is appropriately modest in pace, and is proceeding smoothly. The BoJ should stand ready to modify the pace of its purchases should disorderly bond market conditions arise or if financial conditions become inconsistent with the desired monetary policy stance.

    Japan’s large stock of outstanding government debt and sizable net international investment position provide an important transmission channel for monetary policy to spill over into asset prices abroad. Clear communication and gradualism can limit adverse asset price reactions and outward spillovers.

    The authorities’ continued commitment to a flexible exchange rate regime is welcome. Exchange rate flexibility should continue to help absorb external shocks and support monetary policy’s focus on price stability. At the same time, it will also help maintain an external position in line with fundamentals.

    Financial Stability

    Japan’s financial system remains broadly resilient, supported by strong capital and liquidity buffers. Banks’ revenues have generally increased as credit costs remain low, the rise in interest rates has been gradual, and the yen has depreciated. Major banks continue to manage interest rate risks proactively through portfolio rebalancing and diversifying their funding sources. Financial intermediation remains stable supported by continued demand for loans from both corporate and household sectors. The insurance sector is well-capitalized and profitable, despite challenges from market volatility and demographic shifts.

    While the financial system remains generally resilient, systemic risk has risen slightly since the 2024 Article IV consultation, reflecting a combination of rising macroeconomic uncertainty, risk of faster than expected interest rates increases or unrealized losses, and rising bankruptcies among SMEs. Rising global macroeconomic uncertainty could impact Japanese banks’ investments. While gradually rising interest rates have helped bank profitability, faster-than-expected increases in interest rates or sudden changes in global financial conditions could amplify financial market volatility and interact with three persisting vulnerabilities identified in the 2024 FSAP: large securities held under mark-to-market accounting, significant foreign currency exposures—particularly through US dollar funding instruments—and signs of overheating in some areas of real estate. A faster-than-expected tightening of financial conditions could also disrupt the JGB market, amplifying interest rate risks for banks with larger exposures. Less-capitalized domestic banks are more vulnerable to rate hikes, facing heightened risks from unrealized losses and higher funding costs. Corporate defaults among smaller SMEs have been increasing, albeit from a low base, and could pose risks for regional banks with high SME loan exposure. 

    Strengthening systemic risk monitoring and the macroprudential policy framework is needed to better mitigate risks in the financial system. Ongoing efforts to expand data collection, enhance analytical capacity, and improve coordination between the FSA and BOJ are welcome. To further enhance systemic risk analysis, closing remaining data gaps and advancing analytical tools for a more comprehensive assessment of systemic vulnerabilities, including those related to foreign currency exposure, remain key priorities. Assigning a formal mandate to the Council for Cooperation on Financial Stability would reinforce the institutional framework, while expanding the macroprudential policy toolkit with targeted borrower-based measures would help mitigate vulnerabilities in the real estate sector.

    Further strengthening financial sector oversight is essential to bolster stability and resilience against emerging risks and vulnerabilities. While progress has been made in expanding staffing resources in certain areas, additional allocations are needed to reinforce financial supervision. The authorities should continue to enhance risk-based supervision to respond flexibly to an evolving banking system. Strengthening the Early Warning System with more forward-looking indicators, especially for credit and liquidity risks, and establishing minimum liquidity requirements for domestic banks would enhance stability. Supervisors should also have the authority to adjust bank capital ratios above minimum requirements based on individual risk profiles and financial conditions.

    The authorities should remain prepared to address market strains as they arise. The liquidity and functioning of the JGB market have improved since April but experienced temporary deterioration in early August amid a spike in market volatility. Rising foreign market volatility could impact domestic liquidity conditions, potentially triggering spillover effects. To mitigate these risks the central bank should closely monitor liquidity conditions and funding rates in money markets, while paying particular attention to the uneven distribution of liquidity among banks as well as the growth in repo transactions driven by demand from financial dealers and foreign investors. The scope of institutions eligible to receive emergency liquidity assistance could be expanded to nonbank financial institutions, prioritizing central counterparties. Recovery and Resolution Planning should be gradually expanded to all banks that could be systemic at failure, requiring more banks to maintain a minimum amount of loss-absorbing capacity tailored to their resolvability needs.

    Structural Policies

    Japan’s total factor productivity growth has been slowing for a decade and has fallen further behind the United States. A steady decline in allocative efficiency since the early 2000s has been a drag on productivity, and likely reflects an increase in market frictions. In addition, Japan’s ultra-low interest rates may have allowed low-productivity firms to survive longer than they otherwise would have, delaying necessary economic restructuring. Reforms aimed at improving labor mobility across firms would help improve Japan’s allocative efficiency and boost productivity.

    Japan’s labor market is expected to witness a significant transformation driven by population aging and advances in artificial intelligence (AI). Japan is aging rapidly—a trend that is expected to continue over coming decades—and has been at the forefront in labor-saving automation to alleviate labor shortages. Policies can play a crucial role in mitigating the impact of aging on labor supply and facilitating mobility needed to benefit from AI adoption:

    • Thanks to government efforts, Japan’s seniors already have a relatively high labor force participation rate compared to other OECD countries. But policy frictions such as an income threshold that triggers a loss of pension benefits may be inducing seniors to work fewer hours than they otherwise would.
    • Japan has made significant progress in increasing female labor force participation during the last decade. Further supporting women’s ability to fully participate in the labor force will require continuing to expand childcare resources and facilitate fathers’ contribution to home/childcare, and further encouraging the use of flexible working arrangements.
    • Training programs are crucial to enhance the complementarity of AI with the labor force and improve the productivity of senior workers.
    • Improving mobility and reducing barriers to job switching are essential to address labor shortages due to aging and the potential job displacement impact of AI. Subsidized training programs that are targeted to in-demand occupations could help reskill and upskill the labor force and facilitate occupational mobility.

    While AI may help to address some of Japan’s labor shortages, and since upskilling/reskilling the labor force takes time, attracting foreign workers could help alleviate labor shortages. Government programs have led to a tripling of the number of foreign workers in Japan during the past decade. However, foreigners continue to play a much smaller role in the Japanese labor force than they do in other OECD economies.

    Similar to other G20 economies, Japan has increased its adoption of industrial policies. Japan’s industrial policies aim to advance several objectives, including economic security, resilience, inclusive growth, and green and digital transformation (the latter including support for the semiconductor industry). Under this umbrella, multi-year envelopes of 20 trillion and 10 trillion yen have been identified for green transformation and the semiconductor/AI industries, respectively. Given Japan’s limited fiscal space and the unclear growth impact of past IP, industrial policy schemes should be subjected to a comprehensive cost-benefit analysis. Going forward, IP should be narrowly targeted to specific objectives when externalities or market failures exist, to minimize distortions. It should avoid favoring domestic products over imports or creating incentives that lead to a fragmentation of the global system for trade and investment, in line with Japan’s commitment to multilateral economic cooperation.

    Japan remains committed to green transformation, and further progress on policies would enable reaching its targets. Notable ongoing efforts—such as the issuance of climate transition bonds to finance government green investment, and the implementation of carbon credits trading—are in line with international practices and previous staff advice. Nevertheless, without further policy changes, Japan is likely to fall short of its targets. To help meet its green commitments while boosting growth, a combination of policies is needed. Options include the removal of energy subsidies, the expansion of carbon pricing, feebates and tradable performance standards. Carbon pricing would need to be accompanied by targeted cash transfers to protect the vulnerable from adverse distributional effects.

    The IMF team would like to thank the authorities and other interlocutors in Japan for the frank and open discussions.

    Table 1. Japan: Selected Economic Indicators, 2021-26

    Nominal GDP: US$ 4,213 billion (2023)

    GDP per capita: US$ 33,849 (2023)

    Population: 124 million (2023)

    Quota: SDR 30.8 billion (2023)

    2021

    2022

    2023

    2024

    2025

    2026

    Est.

    Proj.

    (In percent change)

    Growth

      Real GDP

    2.7

    0.9

    1.5

    -0.2

    1.1

    0.8

      Domestic demand

    1.7

    1.5

    0.4

    0.2

    1.2

    0.8

        Private consumption  

    0.7

    2.1

    0.8

    -0.3

    0.9

    0.6

        Gross Private Fixed Investment

    1.3

    1.6

    1.5

    0.6

    1.1

    0.8

        Business investment  

    1.7

    2.6

    1.5

    1.3

    1.2

    0.9

        Residential investment  

    -0.3

    -2.7

    1.5

    -2.4

    0.8

    0.4

        Government consumption   

    3.4

    1.4

    -0.3

    1.0

    1.3

    1.2

        Public investment   

    -2.6

    -8.3

    1.5

    -1.2

    0.3

    0.0

        Stockbuilding

    0.5

    0.2

    -0.3

    0.1

    0.1

    0.0

      Net exports

    1.0

    -0.5

    1.0

    -0.2

    0.0

    0.1

        Exports of goods and services

    11.9

    5.5

    3.0

    0.7

    2.9

    2.0

        Imports of goods and services

    5.2

    8.3

    -1.5

    2.0

    2.9

    1.8

    Output Gap

    -1.6

    -0.9

    0.2

    0.1

    0.2

    0.0

    (In percent change, period average)

    Inflation

      Headline CPI

    -0.2

    2.5

    3.2

    2.8

    2.4

    2.0

      GDP deflator  

    -0.2

    0.4

    4.1

    3.0

    2.3

    2.1

    (In percent of GDP)

    Government

        Revenue  

    36.3

    37.5

    36.8

    36.9

    36.8

    36.8

        Expenditure  

    42.5

    41.8

    39.1

    39.4

    39.4

    39.7

        Overall Balance  

    -6.2

    -4.3

    -2.3

    -2.5

    -2.6

    -2.9

        Primary balance

    -5.6

    -3.9

    -2.1

    -2.1

    -2.2

    -2.2

    Structural primary balance

    -4.9

    -3.8

    -2.2

    -2.1

    -2.3

    -2.2

        Public debt, gross

    253.7

    248.3

    240.0

        237.0

    232.7

    230.0

    (In percent change, end-of-period)

    Macro-financial

    Base money

    8.5

    -5.6

    6.4

    -1.0

    2.2

    2.2

    Broad money

    2.9

    2.3

    2.2

    1.1

    2.1

    2.1

    Credit to the private sector

    2.3

    3.6

    4.2

    3.1

    1.8

    1.6

    Non-financial corporate debt in percent of GDP

    157.1

    161.2

    156.7

    159.8

    160.2

    161.3

    (In percent)

    Interest rate   

      Overnight call rate, uncollateralized (end-of-period)

    0.0

    0.0

    0.0

    …

    …

    …

      10-year JGB yield (end-of-period)

    0.1

    0.4

    0.6

    …

    …

    …

     

     

     

     

     

     

     

    (In billions of USD)

    Balance of payments    

    Current account balance   

    196.2

    89.9

    158.5

    179.4

    166.7

    162.2

            Percent of GDP   

    3.9

    2.1

    3.8

    4.5

    4.1

    3.8

        Trade balance

    16.4

    -115.8

    -48.2

    -31.5

    -26.2

    -24.1

            Percent of GDP   

    0.3

    -2.7

    -1.1

    -0.8

    -0.6

    -0.6

          Exports of goods, f.o.b.  

    749.2

    752.5

    713.7

    691.6

    705.5

    720.9

          Imports of goods, f.o.b.  

    732.7

    868.3

    761.9

    723.1

    731.7

    745.0

    Energy imports

    127.8

    195.5

    152.9

    145.2

    135.9

    122.5

    (In percent of GDP)

    FDI, net

    3.5

    3.0

    4.1

    4.8

    4.2

    4.1

    Portfolio Investment

    -3.9

    -3.3

    4.7

    5.5

    0.9

    0.9

    (In billions of USD)

    Change in reserves   

    62.8

    -47.4

    29.8

    -74.7

    11.5

    11.5

    Total reserves minus gold (in billions of US$)             

    1356.2

    1178.3

    1238.5

    …

    …

    …

    (In units, period average)

    Exchange rates                

      Yen/dollar rate    

    109.8

    131.5

    140.5

    …

    …

    …

      Yen/euro rate    

    129.9

    138.6

    152.0

    …

    …

    …

      Real effective exchange rate (ULC-based, 2010=100)       

    73.5

    61.8

    56.1

    …

    …

    …

      Real effective exchange rate (CPI-based, 2010=100)

    70.7

    61.0

    58.1

    …

    …

    …

     

    (In percent)

    Demographic Indicators

    Population Growth

    -0.3

    -0.3

    -0.5

    -0.5

    -0.5

    -0.5

    Old-age dependency

    48.7

    48.8

    48.9

    49.2

    49.7

    50.1

    Sources: Haver Analytics; OECD; Japanese authorities; and IMF staff estimates and projections.
                       

    [1] An IMF mission, led by Nada Choueiri and including Kohei Asao, Yan Carrière-Swallow, Andrea Deghi, Shujaat Khan, Gene Kindberg-Hanlon, Haruki Seitani, Danila Smirnov and Ara Stepanyan, conducted meetings in Japan during January 23-February 6, 2025. The mission met with senior officials at the Ministry of Finance, Bank of Japan, and other ministries and government agencies, along with representatives of labor unions, the business community, financial sector, and academics.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Randa Elnagar

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    MIL OSI Economics –

  • MIL-Evening Report: WA Labor has thumping Newspoll lead a month before election; federal Labor improves

    Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne

    The Western Australian state election will be held on March 8. A Newspoll, conducted January 29 to February 4 from a sample of 1,039, gave Labor a 56–44 lead, from primary votes of 42% Labor, 32% Liberals, 3% Nationals, 12% Greens, 4% One Nation and 7% for all Others.

    At the March 2021 WA election, Labor won 53 of the 59 lower house seats on a two-party vote of 69.7–30.3, a record high for either major party at any state or federal election. Labor won 59.9% of the primary vote.

    A 56–44 result in Labor’s favour would still be a thumping victory, but it would represent a 14% swing to the Liberals from 2021. Labor will lose many seats, but they are very likely to easily retain a lower house majority.

    Labor Premier Roger Cook had a net approval of +18, with 55% satisfied and 37% dissatisfied. Liberal leader Libby Mettam had a net approval of -2, with 41% dissatisfied and 39% satisfied. Cook led Mettam as better premier by 54–34.

    While this Newspoll is very good for state Labor, only 35% of WA voters said the Anthony Albanese federal Labor government deserved to be re-elected, while 50% said it was “time to give someone else a go”.

    Federal Essential poll: Coalition remains ahead on respondent preferences

    A national Essential poll, conducted January 29 to February 2 from a sample of 1,150, gave the Coalition a 49–47 lead by respondent preferences including undecided (48–47 in mid-January). The Coalition has led by one or two points in the past four Essential polls.

    Primary votes were 36% Coalition (down one), 30% Labor (steady), 12% Greens (steady), 8% One Nation (up one), 1% UAP (down one), 9% for all Others (up two) and 4% undecided (down one). These primary votes imply a Labor lead by about 50.5–49.5 by 2022 election preference flows.

    The poll graph below includes the latest polls from Essential and Morgan, but not the DemosAU poll. In the last two weeks, the Morgan poll has trended to Labor, with Labor’s two-party share using 2022 flows increasing from 48% to 50.5%.

    On action to combat antisemitism, 9% thought the government was doing too much, 30% said it was doing enough and 43% believed it was not doing enough. On the importance of antisemitism, 40% said it was a major issue, 48% a minor issue and 12% not an issue. Issue salience will be greatly overstated by questions that ask about one issue; it’s best to ask about various issues.

    By 37–31, respondents supported tax discounts of $20,000 for small businesses to pay for meals and entertainment for staff and clients. The question did not mention that this idea was proposed by Opposition Leader Peter Dutton.

    By 77–16, voters thought there should be laws requiring equal salaries for men and women in the same position, but by 49–45 they said gender equality has come far enough already. On social and economic inequality, 57% (down two since May 2024) thought it is increasing, 29% (up three) staying about the same and 10% (up one) decreasing.

    Core inflation dropped in December quarter

    The Australian Bureau of Statistics released inflation data for the December quarter on January 29. Headline inflation was up 0.2% in December, unchanged from the September quarter, with annual inflation down from 2.8% to 2.4%. The peak annual inflation was 7.8% in December 2022.

    Core (trimmed mean) inflation increased 0.5% in December, down from 0.8% in September, for an annual rate of 3.2%, down from 3.6% in September. Annual core inflation peaked at 6.8% in December 2022.

    The ABC’s report said financial markets thought there was now a 90% chance of an interest rate cut when the Reserve Bank board meets on February 17–18. A rate cut would be good news for the government.

    Morgan and DemosAU polls are tied

    A national Morgan poll, conducted January 27 to February 2 from a sample of 1,694, had a 50–50 tie by headline respondent preferences, a two-point gain for Labor since the previous poll. This is the first time the Coalition has not led in a Morgan poll since late November.

    Primary votes were 38.5% Coalition (down two), 30% Labor (up 0.5), 11.5% Greens (steady), 5.5% One Nation (down 0.5), 10.5% independents (up 1.5) and 4% others (up 0.5). By 2022 election flows, Labor led by 50.5–49.5, a 1.5-point gain for Labor.

    The previous Morgan poll, conducted January 20–26 from a sample of 1,567, gave the Coalition a 52–48 lead by respondent preferences, unchanged from the January 13–19 poll.

    Primary votes were 40.5% Coalition (down 1.5), 29.5% Labor (up one), 11.5% Greens (down 1.5), 6% One Nation (up two), 9% independents (up 0.5) and 3.5% others (down 0.5). By 2022 election flows, the Coalition led by 51–49, a one-point gain for Labor.

    A DemosAU national poll, conducted January 28 to February 1 from a sample of 1,238, had a 50–50 tie, unchanged since November. Primary votes were 38% Coalition (steady), 33% Labor (up one), 12% Greens (steady), 7% One Nation (steady) and 10% for all Others (down one).

    DemosAU is using 2022 election flows for its polls. The primary votes would be expected to give Labor a 51–49 lead, so rounding probably contributed to the tie.

    Freshwater breakdowns of young men and young women

    The Financial Review had breakdowns of voting intentions and other questions from the last three national Freshwater polls on January 28. These polls were conducted from November to January from an overall sample of 3,160. This analysis focused on differences between men and women aged 18–34.

    Among young women, Labor and the Greens each had 32% of the primary vote, while the Coalition was at just 25%. Among young men, Labor had 36%, the Coalition 32% and the Greens 20%. I estimate young women would vote Labor by about 65–35 and young men by 59–41 after preferences.

    While there is a difference between young men and women, Labor would easily win the overall youth vote in this poll. Labor’s problems in the overall polls are due to older voters skewing to the Coalition.

    Young women preferred Albanese as PM to Dutton by 58–27, while young men preferred Albanese by 55–37. With young women, Albanese was at net -11 approval and Dutton at net -22. With young men, Albanese was at net +6 approval and Dutton at net -6. Young men were much more positive than young women about the direction of the country and the economy.

    Adrian Beaumont does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. WA Labor has thumping Newspoll lead a month before election; federal Labor improves – https://theconversation.com/wa-labor-has-thumping-newspoll-lead-a-month-before-election-federal-labor-improves-248437

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Russia: Japan: Staff Concluding Statement of the 2025 Article IV Mission

    Source: IMF – News in Russian

    February 7, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    Washington, DC – February 7, 2025[1]:

    After three decades of near-zero inflation, there are signs that Japan’s economy can sustainably converge to a new equilibrium. Inflation has surpassed the Bank of Japan’s 2-percent target for over two years and a tight labor market is delivering the strongest wage growth since the 1990s. But Japan continues to face challenges from its aging population and high public debt. Policy priorities are to re-anchor inflation expectations, rebuild fiscal buffers, and advance labor market reforms to support potential growth.

    RECENT DEVELOPMENTS, OUTLOOK, AND RISKS

    The economy contracted in the first half of 2024 due to temporary supply disruptions but gained momentum in the rest of the year. Domestic demand, private consumption in particular, has strengthened, while net external demand has been sluggish. Both headline and core inflation (excluding fresh food and energy) remain above the BoJ’s 2-percent headline inflation target. Goods inflation has been boosted by energy and food prices, while services price growth is relatively weaker and below 2 percent. Inflation expectations are becoming increasingly aligned with the inflation target, though some measures remain below that target. The yen-dollar exchange rate has experienced sizable swings, largely driven by shifts in interest rate differentials (which reflect broader macroeconomic developments), but also amplified by the build-up and subsequent unwinding of yen carry-trade positions. The pass-through to inflation is estimated to have been relatively mild so far. Wages are growing at their highest rate since the 1990s amid labor shortages and strong inflation, but they have remained lackluster in real terms.

    Growth is expected to accelerate in 2025, with private consumption strengthening further, as above-inflation wage growth will boost households’ disposable income. Private investment is also expected to remain strong, supported by high corporate profits and accommodative financial conditions. The output gap is estimated to be closed, and growth is expected to converge to its potential of 0.5 percent in the medium term. Headline and core inflation are expected to converge to the BoJ’s 2-percent headline inflation target in late 2025, helped by a moderation in commodity prices for oil and food. The current account surplus is expected to moderate in 2025 as the income balance narrows, with the trade balance remaining in deficit. The external position is assessed as broadly in line with the level implied by medium-term fundamentals and desirable policies.

    Risks to growth are tilted to the downside. On the external side, these include a slowdown in the global economy, deepening geoeconomic fragmentation and increasing trade restrictions, and more volatile food and energy prices. On the domestic side, the main downside risk is weak consumption if real wages do not pick up. Another domestic risk to the outlook is a possible decline in confidence in fiscal sustainability that leads to a tightening of financial conditions in the context of high public debt and gross financing needs. If downside risks materialize, it could result in Japan reverting to an effective-lower-bound constrained environment given the still-low level of the policy rate. 

    Risks to inflation are broadly balanced. On the downside, inflation expectations may stall below the headline inflation target following Japan’s prolonged experience with low inflation. Upside risks stem from rising food and energy prices, and from stronger-than-expected wages in the upcoming spring wage negotiations. Higher barriers to trade and cost pressures in major trading partners could spill over to Japan but the impact on domestic prices would be ambiguous given lower economic activity.

    ECONOMIC POLICIES

    Fiscal Policy

    The estimated fiscal deficit in 2024 is smaller than expected at the time of the 2024 Article IV. Tax revenues have been boosted by high corporate profits, and expenditures to support the economic recovery (such as transfers to households and SMEs) have been partly phased out. The fiscal deficit is projected to increase slightly in 2025, with additional spending planned for defense, children-related measures, and industrial policies (IP). There is a significant risk that the deficit will widen further, given the political demands on the minority government. This should be avoided as fiscal space remains limited: any expansionary measure should be offset by higher revenues or expenditure savings elsewhere in the budget.

    Public debt, as a share of GDP, is expected to decline in the near term, as nominal GDP growth is projected to exceed the effective interest rate on public debt. Public debt will remain high, however, and is estimated to start rising by 2030, driven by a higher interest bill and expenditure pressures related to spending on health and long-term care for an aging population. A clear consolidation plan is needed even in the near term to fully offset these pressures, ensure debt sustainability, and increase fiscal space needed to respond to shocks (including from natural disasters). This will require elaborating concrete and credible expenditure and revenue measures in the context of a robust medium-term fiscal framework:

    • The composition of public spending should be more growth-friendly, including by eliminating poorly targeted subsidies, notably energy subsidies, while preserving expenditure on high-quality public investment. Enhancing the targeting and efficiency of social security spending is critical to containing rising costs while preserving quality.
    • On the revenue side, options include strengthening financial income taxation for high-income earners, lowering exemptions and broadening the taxable valuation base under the property tax, streamlining income tax deductions, and unifying and eventually increasing the consumption tax rate. The PIT reform to the income deduction limit that is currently under consideration would need to be financed by additional revenues or savings elsewhere in the budget.
    • The repeated use, and incomplete execution of supplementary budgets undermines efficient resource allocation, budget transparency, and fiscal discipline. The use of supplementary budgets should be limited to responding to large, unexpected shocks that overwhelm automatic stabilizers, which would also avoid providing unwarranted stimulus in normal times. All medium-term spending commitments—including on IP and green transformation—should be incorporated into the regular budget process.

    As interest rates rise, the cost of servicing the large public debt is expected to double by 2030, putting a premium on a robust debt management strategy. In the face of rising gross financing needs and a shrinking BoJ balance sheet, government bond issuance will need to rely on additional demand from foreign investors and domestic institutions.

    Monetary and Exchange Rate Policies

    The current accommodative monetary policy stance is appropriate and will ensure inflation expectations rise sustainably to the 2-percent inflation target. Accommodation should continue to be withdrawn gradually if the baseline forecast bears out, under which we expect the policy rate would reach a neutral level by end-2027. High domestic and external uncertainty underscore the need for the BoJ to maintain its data-dependent and flexible approach and clear communications to anchor market expectations.

    The BOJ’s ongoing reduction in the size of its balance sheet has been clearly communicated, is appropriately modest in pace, and is proceeding smoothly. The BoJ should stand ready to modify the pace of its purchases should disorderly bond market conditions arise or if financial conditions become inconsistent with the desired monetary policy stance.

    Japan’s large stock of outstanding government debt and sizable net international investment position provide an important transmission channel for monetary policy to spill over into asset prices abroad. Clear communication and gradualism can limit adverse asset price reactions and outward spillovers.

    The authorities’ continued commitment to a flexible exchange rate regime is welcome. Exchange rate flexibility should continue to help absorb external shocks and support monetary policy’s focus on price stability. At the same time, it will also help maintain an external position in line with fundamentals.

    Financial Stability

    Japan’s financial system remains broadly resilient, supported by strong capital and liquidity buffers. Banks’ revenues have generally increased as credit costs remain low, the rise in interest rates has been gradual, and the yen has depreciated. Major banks continue to manage interest rate risks proactively through portfolio rebalancing and diversifying their funding sources. Financial intermediation remains stable supported by continued demand for loans from both corporate and household sectors. The insurance sector is well-capitalized and profitable, despite challenges from market volatility and demographic shifts.

    While the financial system remains generally resilient, systemic risk has risen slightly since the 2024 Article IV consultation, reflecting a combination of rising macroeconomic uncertainty, risk of faster than expected interest rates increases or unrealized losses, and rising bankruptcies among SMEs. Rising global macroeconomic uncertainty could impact Japanese banks’ investments. While gradually rising interest rates have helped bank profitability, faster-than-expected increases in interest rates or sudden changes in global financial conditions could amplify financial market volatility and interact with three persisting vulnerabilities identified in the 2024 FSAP: large securities held under mark-to-market accounting, significant foreign currency exposures—particularly through US dollar funding instruments—and signs of overheating in some areas of real estate. A faster-than-expected tightening of financial conditions could also disrupt the JGB market, amplifying interest rate risks for banks with larger exposures. Less-capitalized domestic banks are more vulnerable to rate hikes, facing heightened risks from unrealized losses and higher funding costs. Corporate defaults among smaller SMEs have been increasing, albeit from a low base, and could pose risks for regional banks with high SME loan exposure. 

    Strengthening systemic risk monitoring and the macroprudential policy framework is needed to better mitigate risks in the financial system. Ongoing efforts to expand data collection, enhance analytical capacity, and improve coordination between the FSA and BOJ are welcome. To further enhance systemic risk analysis, closing remaining data gaps and advancing analytical tools for a more comprehensive assessment of systemic vulnerabilities, including those related to foreign currency exposure, remain key priorities. Assigning a formal mandate to the Council for Cooperation on Financial Stability would reinforce the institutional framework, while expanding the macroprudential policy toolkit with targeted borrower-based measures would help mitigate vulnerabilities in the real estate sector.

    Further strengthening financial sector oversight is essential to bolster stability and resilience against emerging risks and vulnerabilities. While progress has been made in expanding staffing resources in certain areas, additional allocations are needed to reinforce financial supervision. The authorities should continue to enhance risk-based supervision to respond flexibly to an evolving banking system. Strengthening the Early Warning System with more forward-looking indicators, especially for credit and liquidity risks, and establishing minimum liquidity requirements for domestic banks would enhance stability. Supervisors should also have the authority to adjust bank capital ratios above minimum requirements based on individual risk profiles and financial conditions.

    The authorities should remain prepared to address market strains as they arise. The liquidity and functioning of the JGB market have improved since April but experienced temporary deterioration in early August amid a spike in market volatility. Rising foreign market volatility could impact domestic liquidity conditions, potentially triggering spillover effects. To mitigate these risks the central bank should closely monitor liquidity conditions and funding rates in money markets, while paying particular attention to the uneven distribution of liquidity among banks as well as the growth in repo transactions driven by demand from financial dealers and foreign investors. The scope of institutions eligible to receive emergency liquidity assistance could be expanded to nonbank financial institutions, prioritizing central counterparties. Recovery and Resolution Planning should be gradually expanded to all banks that could be systemic at failure, requiring more banks to maintain a minimum amount of loss-absorbing capacity tailored to their resolvability needs.

    Structural Policies

    Japan’s total factor productivity growth has been slowing for a decade and has fallen further behind the United States. A steady decline in allocative efficiency since the early 2000s has been a drag on productivity, and likely reflects an increase in market frictions. In addition, Japan’s ultra-low interest rates may have allowed low-productivity firms to survive longer than they otherwise would have, delaying necessary economic restructuring. Reforms aimed at improving labor mobility across firms would help improve Japan’s allocative efficiency and boost productivity.

    Japan’s labor market is expected to witness a significant transformation driven by population aging and advances in artificial intelligence (AI). Japan is aging rapidly—a trend that is expected to continue over coming decades—and has been at the forefront in labor-saving automation to alleviate labor shortages. Policies can play a crucial role in mitigating the impact of aging on labor supply and facilitating mobility needed to benefit from AI adoption:

    • Thanks to government efforts, Japan’s seniors already have a relatively high labor force participation rate compared to other OECD countries. But policy frictions such as an income threshold that triggers a loss of pension benefits may be inducing seniors to work fewer hours than they otherwise would.
    • Japan has made significant progress in increasing female labor force participation during the last decade. Further supporting women’s ability to fully participate in the labor force will require continuing to expand childcare resources and facilitate fathers’ contribution to home/childcare, and further encouraging the use of flexible working arrangements.
    • Training programs are crucial to enhance the complementarity of AI with the labor force and improve the productivity of senior workers.
    • Improving mobility and reducing barriers to job switching are essential to address labor shortages due to aging and the potential job displacement impact of AI. Subsidized training programs that are targeted to in-demand occupations could help reskill and upskill the labor force and facilitate occupational mobility.

    While AI may help to address some of Japan’s labor shortages, and since upskilling/reskilling the labor force takes time, attracting foreign workers could help alleviate labor shortages. Government programs have led to a tripling of the number of foreign workers in Japan during the past decade. However, foreigners continue to play a much smaller role in the Japanese labor force than they do in other OECD economies.

    Similar to other G20 economies, Japan has increased its adoption of industrial policies. Japan’s industrial policies aim to advance several objectives, including economic security, resilience, inclusive growth, and green and digital transformation (the latter including support for the semiconductor industry). Under this umbrella, multi-year envelopes of 20 trillion and 10 trillion yen have been identified for green transformation and the semiconductor/AI industries, respectively. Given Japan’s limited fiscal space and the unclear growth impact of past IP, industrial policy schemes should be subjected to a comprehensive cost-benefit analysis. Going forward, IP should be narrowly targeted to specific objectives when externalities or market failures exist, to minimize distortions. It should avoid favoring domestic products over imports or creating incentives that lead to a fragmentation of the global system for trade and investment, in line with Japan’s commitment to multilateral economic cooperation.

    Japan remains committed to green transformation, and further progress on policies would enable reaching its targets. Notable ongoing efforts—such as the issuance of climate transition bonds to finance government green investment, and the implementation of carbon credits trading—are in line with international practices and previous staff advice. Nevertheless, without further policy changes, Japan is likely to fall short of its targets. To help meet its green commitments while boosting growth, a combination of policies is needed. Options include the removal of energy subsidies, the expansion of carbon pricing, feebates and tradable performance standards. Carbon pricing would need to be accompanied by targeted cash transfers to protect the vulnerable from adverse distributional effects.

    The IMF team would like to thank the authorities and other interlocutors in Japan for the frank and open discussions.

    Table 1. Japan: Selected Economic Indicators, 2021-26

    Nominal GDP: US$ 4,213 billion (2023)

    GDP per capita: US$ 33,849 (2023)

    Population: 124 million (2023)

    Quota: SDR 30.8 billion (2023)

    2021

    2022

    2023

    2024

    2025

    2026

    Est.

    Proj.

    (In percent change)

    Growth

      Real GDP

    2.7

    0.9

    1.5

    -0.2

    1.1

    0.8

      Domestic demand

    1.7

    1.5

    0.4

    0.2

    1.2

    0.8

        Private consumption  

    0.7

    2.1

    0.8

    -0.3

    0.9

    0.6

        Gross Private Fixed Investment

    1.3

    1.6

    1.5

    0.6

    1.1

    0.8

        Business investment  

    1.7

    2.6

    1.5

    1.3

    1.2

    0.9

        Residential investment  

    -0.3

    -2.7

    1.5

    -2.4

    0.8

    0.4

        Government consumption   

    3.4

    1.4

    -0.3

    1.0

    1.3

    1.2

        Public investment   

    -2.6

    -8.3

    1.5

    -1.2

    0.3

    0.0

        Stockbuilding

    0.5

    0.2

    -0.3

    0.1

    0.1

    0.0

      Net exports

    1.0

    -0.5

    1.0

    -0.2

    0.0

    0.1

        Exports of goods and services

    11.9

    5.5

    3.0

    0.7

    2.9

    2.0

        Imports of goods and services

    5.2

    8.3

    -1.5

    2.0

    2.9

    1.8

    Output Gap

    -1.6

    -0.9

    0.2

    0.1

    0.2

    0.0

    (In percent change, period average)

    Inflation

      Headline CPI

    -0.2

    2.5

    3.2

    2.8

    2.4

    2.0

      GDP deflator  

    -0.2

    0.4

    4.1

    3.0

    2.3

    2.1

    (In percent of GDP)

    Government

        Revenue  

    36.3

    37.5

    36.8

    36.9

    36.8

    36.8

        Expenditure  

    42.5

    41.8

    39.1

    39.4

    39.4

    39.7

        Overall Balance  

    -6.2

    -4.3

    -2.3

    -2.5

    -2.6

    -2.9

        Primary balance

    -5.6

    -3.9

    -2.1

    -2.1

    -2.2

    -2.2

    Structural primary balance

    -4.9

    -3.8

    -2.2

    -2.1

    -2.3

    -2.2

        Public debt, gross

    253.7

    248.3

    240.0

        237.0

    232.7

    230.0

    (In percent change, end-of-period)

    Macro-financial

    Base money

    8.5

    -5.6

    6.4

    -1.0

    2.2

    2.2

    Broad money

    2.9

    2.3

    2.2

    1.1

    2.1

    2.1

    Credit to the private sector

    2.3

    3.6

    4.2

    3.1

    1.8

    1.6

    Non-financial corporate debt in percent of GDP

    157.1

    161.2

    156.7

    159.8

    160.2

    161.3

    (In percent)

    Interest rate   

      Overnight call rate, uncollateralized (end-of-period)

    0.0

    0.0

    0.0

    …

    …

    …

      10-year JGB yield (end-of-period)

    0.1

    0.4

    0.6

    …

    …

    …

     

     

     

     

     

     

     

    (In billions of USD)

    Balance of payments    

    Current account balance   

    196.2

    89.9

    158.5

    179.4

    166.7

    162.2

            Percent of GDP   

    3.9

    2.1

    3.8

    4.5

    4.1

    3.8

        Trade balance

    16.4

    -115.8

    -48.2

    -31.5

    -26.2

    -24.1

            Percent of GDP   

    0.3

    -2.7

    -1.1

    -0.8

    -0.6

    -0.6

          Exports of goods, f.o.b.  

    749.2

    752.5

    713.7

    691.6

    705.5

    720.9

          Imports of goods, f.o.b.  

    732.7

    868.3

    761.9

    723.1

    731.7

    745.0

    Energy imports

    127.8

    195.5

    152.9

    145.2

    135.9

    122.5

    (In percent of GDP)

    FDI, net

    3.5

    3.0

    4.1

    4.8

    4.2

    4.1

    Portfolio Investment

    -3.9

    -3.3

    4.7

    5.5

    0.9

    0.9

    (In billions of USD)

    Change in reserves   

    62.8

    -47.4

    29.8

    -74.7

    11.5

    11.5

    Total reserves minus gold (in billions of US$)             

    1356.2

    1178.3

    1238.5

    …

    …

    …

    (In units, period average)

    Exchange rates                

      Yen/dollar rate    

    109.8

    131.5

    140.5

    …

    …

    …

      Yen/euro rate    

    129.9

    138.6

    152.0

    …

    …

    …

      Real effective exchange rate (ULC-based, 2010=100)       

    73.5

    61.8

    56.1

    …

    …

    …

      Real effective exchange rate (CPI-based, 2010=100)

    70.7

    61.0

    58.1

    …

    …

    …

     

    (In percent)

    Demographic Indicators

    Population Growth

    -0.3

    -0.3

    -0.5

    -0.5

    -0.5

    -0.5

    Old-age dependency

    48.7

    48.8

    48.9

    49.2

    49.7

    50.1

    Sources: Haver Analytics; OECD; Japanese authorities; and IMF staff estimates and projections.
                       

    [1] An IMF mission, led by Nada Choueiri and including Kohei Asao, Yan Carrière-Swallow, Andrea Deghi, Shujaat Khan, Gene Kindberg-Hanlon, Haruki Seitani, Danila Smirnov and Ara Stepanyan, conducted meetings in Japan during January 23-February 6, 2025. The mission met with senior officials at the Ministry of Finance, Bank of Japan, and other ministries and government agencies, along with representatives of labor unions, the business community, financial sector, and academics.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Randa Elnagar

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/02/07/mcs-020725-japan-staff-concluding-statement-of-the-2025-article-iv-mission

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI USA: Kennedy, Moran champion bill to protect veterans’ Second Amendment rights

    US Senate News:

    Source: United States Senator John Kennedy (Louisiana)

    WASHINGTON – Sens. John Kennedy (R-La.) and Jerry Moran (R-Kan.), Chairman of the Senate Committee on Veterans’ Affairs, today led 14 colleagues in introducing the Veterans 2nd Amendment Protection Act. The bill would prevent veterans from losing their Second Amendment right to purchase or own firearms when they receive help managing their Department of Veterans Affairs (VA) benefits.

    “Our veterans should not receive less due process rights than other Americans just because they served our country and asked the federal government for a helping hand. Under the VA’s interpretation of the law, however, unelected bureaucrats punish Louisiana and America’s veterans by forcing them to choose between their Second Amendment rights and getting the help they need as they manage their financial affairs. I’m proud to introduce the Veterans 2nd Amendment Protection Act to stand up for veterans’ constitutional rights by ending this unfair practice,” said Kennedy.

    “Veterans should never be forced to choose between receiving assistance from VA to manage their benefits and their fundamental Second Amendment rights. Our nation should be encouraging veterans to utilize VA services, not discouraging them by denying them due process. The Veterans Second Amendment Protection Act makes certain that the rights of those who have served are protected, and that veterans are not penalized for receiving support that they have earned and deserve. I thank Sen. Kennedy for his partnership in this effort,” said Moran. 

    Rep. Mike Bost (R-Ill.), Chairman of the House Committee on Veterans’ Affairs, introduced the bill in the House of Representatives.

    “It should go without saying that veterans should not be treated like second-class citizens simply because they need help managing their books—but under current law they are. Without a permanent fix in place, VA bureaucrats can continue to strip veterans with fiduciaries of their Second Amendment right with no court ruling in place that they are a danger to themselves or others. It’s as simple as that. I have heard from too many veterans that VA’s current NICS reporting measures prevent them from seeking mental health care at VA—we must change that. I want to thank Chairman Moran, Senator Kennedy, and my House colleagues for working with me last Congress to pass a temporary solution, but veterans need a permanent fix. House and Senate Republicans will fulfill the American people’s mandate to get this bill to President Trump’s desk to protect veterans’ due process and constitutional rights for good,” said Bost. 

    Sens. Chuck Grassley (R-Iowa), Steve Daines (R-Mont.), Marsha Blackburn (R-Tenn.), Pete Ricketts (R-Neb.), Mike Rounds (S.D.), Kevin Cramer (N.D.), Jim Banks (R-Ind.), Thom Tillis (R-N.C.), Bill Cassidy (R-La.), John Boozman (R-Ark.), Rick Scott (R-Fla.), Tommy Tuberville (R-Ala.), Lisa Murkowski (R-Alaska) and Tim Sheehy (R-Mont.) cosponsored the legislation.

    “I take the constitutional right to bear arms very seriously. Our bill would preserve due process for veterans and put a stop to unelected bureaucrats unjustifiably stripping away the Second Amendment rights of those who’ve served,” said Grassley.

    “Veterans must not be required to forfeit the Second Amendment without a careful, constitutional process. Attempting to deprive former servicemembers of firearms for protection or recreation simply because they require assistance managing the benefits they have earned is bureaucracy at its worst. Our legislation would correct this injustice and preserve these law-abiding patriots’ rights,” said Boozman.

    “The veterans who served our country shouldn’t lose their 2nd Amendment rights just because they need financial help,” said Cassidy.

    “Veterans who have served our country deserve the same Second Amendment rights and protections as every other American. This commonsense legislation ensures that veterans aren’t punished simply because they need assistance managing their benefits and guarantees they are not denied their constitutional rights without due process,” said Tillis. 

    “Our veterans have sacrificed so much to defend this great country, and it is critical their God-given right to protect themselves and their families doesn’t rest on judgement of unelected bureaucrats. It takes a lot of courage and humility for our brave veterans to admit that they need help managing their financial benefits. But it shouldn’t place their constitutional freedoms in jeopardy. This bill ends the ability of government workers to take away the Second Amendment freedoms of our veterans when they ask for help with their money unless a judge finds them to be a danger to himself or others. I stand with our veterans and will continue to fight to preserve the freedoms they fought for on the battlefield,” said Tuberville.

    “I’m proud to stand with our veterans to ensure equal protection of their rights with the Second Amendment Protection Act. Our veterans have fought to protect our nation and defend our rights, and they deserve to be treated fairly with the same due process under the law,” said Scott.

    Because of the VA’s interpretation of current law, the VA sends a beneficiary’s name to the FBI’s National Instant Criminal Background Check System (NICS) whenever a fiduciary is appointed to help a beneficiary manage his or her VA benefit payments.

    Ultimately, VA employees decide whether veterans receive help from a fiduciary.

    The bill would prohibit the Secretary of Veterans Affairs from transmitting a veteran’s personal information to NICS unless a relevant judicial authority rules that the beneficiary is a danger to himself or others.

    Vietnam Veterans of America, National Association of County Veterans Service Officers, Veterans of Foreign Wars, The American Legion, Black Veterans Empowerment Council, Military Order of the Purple Heart, National Shooting Sports Foundation, National Rifle Association, Gun Owners of America, AMAC Action, Turning Point Action, Firearms Regulatory Accountability Coalition, National Disability Rights Network and the National Association for Gun Rights support the Veterans 2nd Amendment Protection Act.

    Background:

    • In the 116th Congress, Kennedy introduced the Veterans 2nd Amendment Protection Act. 
    • In the 118th Congress, Kennedy and Moran re-introduced the Veterans 2nd Amendment Protection Act with six co-sponsors. 
    • In Oct. 2023, the Senate passed Kennedy and Moran’s amendment to the Consolidated Appropriations Act based on the Veterans 2nd Amendment Protection Act. The same language passed into law as part of an appropriations package in March 2024.
    • The language included in the appropriations package only provided a temporary solution tied to appropriations. The Veterans 2nd Amendment Protection Act would make the fix permanent and prevent future VA administrations from undoing the work to restore veterans’ due process and Second Amendment rights. 

    The bill text is available here.

    MIL OSI USA News –

  • MIL-OSI USA: Warner Joins Colleagues In Demanding Secretary Bessent Meet With Senate Democrats To Bring Transparency And Clarity To “DOGE” Chaos At Treasury

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner

    WASHINGTON – Today, Select Committee on Intelligence Vice Chair Mark Warner (D-VA) joined Senate Democratic Leader Chuck Schumer (D-NY), Appropriations Committee Vice Chair Patty Murray (D-WA), Finance Committee Ranking Member Ron Wyden (D-OR), Banking, Housing, and Urban Affairs Committee Ranking Member Elizabeth Warren (D-MA), and Homeland Security and Governmental Affairs Committee Ranking Member Gary Peters (D-MI), in sending the following letter to the new Treasury Secretary, Scott Bessent, after the Treasury Department’s inadequate responses and evasive answers to a request for information following the hostile takeover of the Treasury Department by Elon Musk and the so-called “Department of Government Efficiency” (“DOGE”). Specifically, the Senators are concerned about “DOGE” having access to the management and disbursement of trillions of dollars and the highly sensitive information of millions of Americans.

    “The Bureau of the Fiscal Service’s payment system is absolutely vital to our economic and national security. Any infiltration or manipulation must be immediately addressed. Frankly, the information your Department has provided on the matter to date is woefully inadequate,” said the Senators. “We speak for not just the caucus, but for the millions of impacted Americans, when we say this is an urgent matter and your participation is necessary for the American people to have confidence that our government will continue to function effectively and that their privacy remains protected.”

    The full text of the letter can be seen here and below.

    Dear Secretary Bessent:

    Senate Democrats are deeply concerned with the so-called “Department of Government Efficiency” (“DOGE”), Elon Musk, and his unnamed team’s seemingly hostile takeover of the Bureau of the Fiscal Service’s central payment systems. As you know, this is a highly sensitive government system that manages, processes, and disburses trillions of dollars, including Social Security and Medicare payments, tax refunds, and other highly sensitive information for millions of Americans. The seemingly illicit penetration of the system under the guise of an “operational efficiency assessment” demands your immediate attention, and Congress requires answers about the purpose and scope of “DOGE’s” activity. To that end, we request your attendance at a meeting with the Democratic Caucus as soon as possible.

    Although we know that you and your Department have been made aware of these concerns, we have found the Department’s written response to Finance Committee Ranking Member Wyden and Banking Committee Ranking Member Warren wholly insufficient, and even illusive, and evasive and, in many cases, the responses stand in direct conflict to Elon Musk’s public statements about the work of “DOGE.” As you know, the Bureau of the Fiscal Service’s payment system is absolutely vital to our economic and national security. Any infiltration or manipulation must be immediately addressed. Frankly, the information your Department has provided on the matter to date is woefully inadequate.

    We speak for not just the caucus, but for the millions of impacted Americans, when we say this is an urgent matter and your participation is necessary for the American people to have confidence that our government will continue to function effectively and that their privacy remains protected.

    We eagerly await your confirmation and are looking forward to your addressing the Senate Democratic Caucus.

    We request your response by tomorrow, Thursday, February 6, 2025.

    MIL OSI USA News –

  • MIL-OSI USA: Cassidy, Britt, Warnock, Peters Reintroduce Retirement Fairness Legislation for Non-Profit Employees

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy

    WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Katie Britt (R-AL), Raphael Warnock (D-GA), and Gary Peters (D-MI) reintroduced the Retirement Fairness for Charities and Educational Institutions Actto enhance investment options for 403(b) retirement plans. 403(b) plans are a type of retirement savings plan, similar to a 401(k), offered to employees of non-profit organizations like public universities, hospitals, churches, and charities.
    “Non-profit employees should have the same access to investment strategies for their retirement plans as private sector employees,” said Dr. Cassidy. “Social Security is going insolvent. We need to give Americans every tool to help make their retirement more secure.”
    “The Retirement Fairness for Charities and Educational Institutions Act would level the playing field so more hardworking Americans can access retirement resources that best fit their needs. Our legislation would allow Americans in the non-profit sector to access the same investment options available to those in the private sector,” said Senator Britt. “This commonsense bipartisan bill would help Americans who work for non-profits, including many of our hospitals, achieve long-term financial stability.” 
    “America’s retirees deserve the peace of mind that comes with financial security when they transition into retirement. This is especially true for non-profit workers who dedicate their lives to serving their communities— they deserve access to the same retirement investment opportunities private sector employees have,” said Senator Warnock. “That’s why I’m proud to help lead this bipartisan legislation which provides equal opportunity for non-profit employees and helps ensure they can retire with dignity.”
    “Hardworking public service and non-profit employees who support our health care and human services, arts and culture, civic engagement, and more deserve access to all available financial tools that can help them plan for retirement,” said Senator Peters. “This legislation would put those using a 403(b) plan on a level playing field with other retirement plan participants by allowing them to invest in collective investment trusts, giving them an equal opportunity to achieve their financial goals.” 
    The Retirement Fairness for Charities and Educational Institutions Actwould expand retirement savings opportunities for non-profit employees by allowing 403(b) plan participants to invest in collective investment trusts (CITs). A CIT is a tax-exempt investment vehicle that provides a diversified, pooled investment option—similar to a mutual fund. CITs offer greater flexibility in investment strategies for retirement plans and reliable, often higher, net returns for plan participants.
    Under current law, unlike 401(k) holders, 403(b) plan sponsors are not able to use this stable investment option in their plan. This legislation would create parity between 403(b) and 401(k) retirement savings plans, benefitting over 15 million hardworking employees at hospitals, universities, charities, and other non-profit organizations.
    The Retirement Fairness for Charities and Educational Institutions Actis supported by the American Bankers Association, American Benefits Council, American Heart Association, American Life Insurance Association, American Retirement Association, Aon, Church Alliance, Great Gray, Insured Retirement Institute, Investment Company Institute, March of Dimes, MetLife, Mercer, Mission Square, National Association of Insurance and Financial Advisors, National Council of Nonprofits, Nationwide, Prudential, SPARK Institute, Stable Value Investment Association, United Way, and Vanguard.

    MIL OSI USA News –