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  • MIL-OSI USA: ICYMI—Hagerty Joins Balance of Power on BloombergTV to Discuss Senate Passage of “One, Big Beautiful Bill”

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty

    WASHINGTON—Today, United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations, Banking, and Foreign Relations Committees and former U.S. Ambassador to Japan, joined Balance of Power on BloombergTV to discuss Senate passage of the budget reconciliation package.

    *Click the photo above or here to watch*

    Partial Transcript

    Hagerty on the economic growth that will result from passing the budget reconciliation package: “It’s going to be a very long night and could well go into tomorrow morning. But at the end of the day, what we’re going to do is prevent the largest tax increase that Americans have ever seen. This is a tax relief that Americans need. We’re talking about a four-plus trillion-dollar tax increase. That would be the case if it were allowed to not pass. If you think about it, it’s a generational investment in our national defense. It’s going to put us back on the path for energy independence as a nation. And most important, it’s going to stimulate longer-term capital investment, which will beget growth. That growth will beget more employment, more employment will beget more economic activity, which means we’re going to have higher tax revenues for the government as a result.”

    Hagerty on the inaccurate scoring of the budget reconciliation package: “I don’t agree with their willingness to rely on authorities. I’m putting air quotes around that, like the Congressional Budget Office (CBO). The CBO missed the 2017 Tax Cuts and Jobs Act revenue by more than a trillion dollars. As a businessperson—I’ve been a businessperson my entire life—the type of capital investment they’re going to stimulate over the long term is definitely going to generate much more economic activity. And I think the models are wrong. I do not agree with the approach that has been taken that suggests this is going to be a big deficit bomb. In fact, I think it’s going to be a growth generator that’s going to put our deficit back on the curve in the right direction to reduce the deficit […] It’s been quite frustrating to see numbers that just as a logical person, as a businessperson, clearly you say that there’s no way these calculations are right. What they leave out, what they don’t include, that the overreliance on tax revenue, so to speak, when you know that companies and individual behaviors will change if taxes go up. The model does not work.”

    Hagerty on future budget reconciliation packages: “I certainly support another one of these packages. We’ll have an opportunity to do it again and again. If you think about the work that was undertaken by Elon Musk and the team at DOGE that’s continuing, every department head, every agency head, has been charged with figuring out how to reduce the dramatic burden of regulations that was imposed just in the last administration. And to quantify that over the past four years of [former President] Joe Biden’s administration, that was an additional $1.4 trillion of compliance costs that were added to the U.S. economy. As that comes out, as these conflicting regulations, these burdensome sclerotic regulations come out of the system, I expect to see that those funds, instead of going toward a compliance, fall to the bottom line and get reinvested in the economy. Again, all very pro-growth.”

    Hagerty on the collaboration between House and Senate Leadership: “Leader [John] Thune is trying to thread a very difficult needle, in terms of navigating through the Senate, with fifty-plus-one votes and having something that will work in the House of Representatives. Make no mistake: the leadership at the House of Representatives and here in the Senate have been working very closely together to make certain that we do thread that needle, that we’re able to turn something over to the House of Representatives that convenes tomorrow at noon, to set up the [Rules Committee] so that they can move this through the House, we can get it to the President’s desk, and get it signed by the 4th of July.”

    Hagerty on potential late-night votes: “It easily could go that way. I’ve been here voting all the way through the night and into the next morning, but we will vote as long as it takes to get here. There’s no time limit on this. It really has to do with how long the Democrats want to continue to fight, to put up their resistance movement again. They keep offering the same type of challenge over and over and over again and certainly dragging out the clock. I think what they want to do is get to primetime tonight. I’ve got to believe that their interest will wane after primetime hours. So, we’ll see how long it goes.”

    MIL OSI USA News –

  • MIL-OSI Russia: IMF Executive Board Concludes 2025 Article IV Consultation and Completes the Eighth Review under the Extended Credit Facility with Guinea-Bissau

    Source: IMF – News in Russian

    June 30, 2025

    • The IMF Executive Board today concluded the 2025 Article IV consultation and completed the eighth review under the Extended Credit Facility (ECF) for Guinea-Bissau. The completion of the review allows for an immediate disbursement of SDR 4.73 million (about US$ 6.5 million), bringing total disbursement under the arrangement to SDR 35.04 million (about US$ 48.1 million)
    • Program performance was mixed. Seven out of nine Quantitative Performance Criteria and three out of four Structural Benchmarks for end-December 2024 were met. The continuous Structural Benchmark on debt service payments was met while the continuous Structural Benchmark on the expenditure committee (COTADO) was missed.
    • Growth is expected to reach 5.1 percent in 2025 while inflation should average 2 percent. The current account deficit is expected to narrow to 5.8 percent of GDP in 2025, reflecting better terms of trade. The authorities are committed to achieving a fiscal deficit of 3.4 percent of GDP in 2025, to put public debt on a firm downward trajectory. The economic outlook is positive but remains subject to significant domestic and external risks.

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded today the 2025 Article IV consultation[1] and completed the eighth review under Extended Credit Facility (ECF) arrangement for Guinea-Bissau. The three-year arrangement, approved on January 30, 2023, aims to secure debt sustainability, improve governance, and reduce corruption, while creating fiscal space to foster inclusive growth. The Executive Board granted an augmentation of access (140 percent of quota or SDR 39.76 million) on November 29, 2023. The completion of the eighth review enables the disbursement of SDR 4.73 million (about US$ 6.5 million) to help meet the country’s balance-of-payments and fiscal financing needs. This brings total disbursement under the arrangement to SDR 35.04 million (about US$ 48.1 million). The authorities have consented to the publication of the Staff Report prepared for this consultation.[2]

    Program performance was mixed. Seven out of nine Quantitative Performance Criteria and three out of four Structural Benchmarks for end-December 2024 were met. The continuous Structural Benchmark on debt service payments was met while the continuous Structural Benchmark on the expenditure committee (COTADO) was missed. In completing the eighth review, the Executive Board granted waivers for the non-observance of quantitative performance criteria based on corrective actions taken by the authorities [including the revenue and expenditure measures adopted as prior actions for the review], approved the authorities’ request for modification of performance criteria and indicative targets, and completed the financing assurance review. The Executive Board also approved the authorities’ request for the program extension until July 29, 2026, and rephasing of access to provide them with sufficient time to implement fiscal consolidation policies supported by the ECF program.

    Economic growth is projected to reach 5.1 percent in 2025, supported by strong exports and investments, while inflation is expected to decelerate and average 2 percent. The current account deficit should narrow to 5.8 percent of GDP in 2025, reflecting a significant improvement in Guinea-Bissau’s terms of trade. The authorities are committed to achieving a fiscal deficit of 3.4 percent of GDP in 2025 to put public debt on a firm downward trajectory. While the direct impact of recent global trade tensions on Guinea-Bissau is limited, the economy remains subject to significant downside risks amid a challenging socio-political climate in an election year and capacity constraints. The 2025 Article IV consultation discussions focused on policies aimed at supporting economic diversification to reduce dependency on cashew nuts, maintaining fiscal sustainability through domestic revenue mobilization, and bolstering social protection and human capital to promote inclusive growth.

    Following the Executive Board discussion, Mr. Okamura, Deputy Managing Director and Acting Chair, issued the following statement:

    “The economy of Guinea-Bissau has been resilient, supported by strong investment spending. While growth is projected to continue around its potential of 4½-5 percent over the medium term, significant challenges remain. In particular, the high export dependency on cashew nuts and the high risk of debt distress leave the country vulnerable to adverse changes in the international environment. Against this background, the authorities are focused on policies designed to diversify the economy and broaden the export base, including by supporting additional growth sectors such as mining and fishing.

    “Achieving the fiscal consolidation target for 2025 is essential to reduce public debt vulnerabilities. In this context, the authorities remain committed to containing domestic primary spending within the 2025 budget and to maintain strict control over the wage bill. This is being supported by strong expenditure controls, including by ensuring that project disbursements are thoroughly verified and discretionary spending remains within agreed allocations. Measures to boost revenue mobilization to bring tax collection closer to its potential through a combination of tax policy measures and revenue administration reforms are vital to create fiscal space to support economic development while reducing fiscal risks.

    “Good progress has been made in addressing financial sector vulnerabilities. The recent approval by the regional Banking Commission for the purchase offer for the undercapitalized bank, and the authorities’ decision to divest the government’s stake in the bank, are important steps in reducing systemic financial sector risks.

    “Boosting inclusive growth calls for implementing sustained social protection programs to protect the poor, diversifying the economy, strengthening the business environment and governance, and improving the efficiency of education and health spending. Broadening the coverage of social protection programs and mainstreaming them within government structures would help reduce poverty indicators. At the same time, progressively reducing broad-based subsidies and moving towards more targeted programs would also boost the impact of social spending.”

     

    Executive Board Assessment[3]

    Executive Directors agreed with the thrust of the staff appraisal. They welcomed the resilience of the economy and the significant progress in infrastructure development since the last Article IV consultation. Noting the mixed performance under the ECF and significant downside risks, they welcomed the strong corrective measures that have been implemented as prior actions for the eighth ECF review. They supported the authorities’ request for a six-month extension of the ECF, to help anchor the fiscal targets for the whole of 2025 and reinforce the commitment to fiscal consolidation.

    Given the high risk of debt distress, Directors underscored the critical importance of sustained fiscal consolidation and further reinforcing debt management to ensure that the debt to GDP ratio remains on a downward trajectory. They encouraged the authorities to boost revenue mobilization through tax policy and tax administration measures, thereby creating fiscal space for priority social and development spending while strengthening debt sustainability. They called for reinforcing expenditure controls and strengthening public financial management to contain the wage bill and prevent the recurrence of spending overruns. Continuing to refrain from nonconcessional borrowing while keeping further concessional borrowing within program targets remains important. Fiscal risks from the public utility company should also be addressed, including by speeding up its revenue mobilization.

    Directors welcomed the approval of the sale of the undercapitalized bank, which paves the way for the government’s disengagement. They called for a swift capitalization of the bank by its new owners to strengthen financial sector resilience.

    Directors stressed the need for sustained structural reforms to underpin macroeconomic stabilization and boost growth. They highlighted the importance of efforts to strengthen the business environment, remove market distortions, and reduce informality. Diversifying the economy, notably in sectors with potential such as fishing, mining, and traditional agriculture, remains critical for inclusive growth and reducing dependence on cashew exports. They urged the authorities to expedite steps to strengthen governance, anti-corruption, and AML/CFT standards. They called for reforms to strengthen procurement transparency and enhance the robustness of the audit function, to help improve public sector transparency and efficiency.

    Directors positively noted the authorities’ efforts to address gaps in the provision of macroeconomic data.

    It is expected that the next Article IV consultation with Guinea Bissau will be held on a 24-month cycle in accordance with the Executive Board decision on consultation cycles for members with Fund arrangements.

     

    Guinea-Bissau: Selected Economic Indicators, 2022-26

    Population (2024): 2.0 million                                      Per capita GDP (2024): US$ 1,104

    Main export product: cashew nuts                               Key export markets: India, Vietnam

     

    2022

    2023

    2024

    2025

    2026
         

    Prel.

    Proj.

    Proj.

    Output

    		          

    Real GPD growth (%)

    4.6

    5.2

    4.8

    5.1

    5.0

    Prices

    		          

    Inflation (annual average, %)

    7.9

    7.2

    3.7

    2.0

    2.0

    Central government finances

    		          

    Revenue and grants (% GDP)

    15.2

    13.7

    13.1

    16.1

    15.7

    Expenditure (% GDP)

    21.3

    21.9

    20.4

    19.5

    19.2

    Fiscal balance (% GDP)

    -6.1

    -8.2

    -7.3

    -3.4

    -3.5

    Public debt (% GDP)

    80.7

    79.4

    82.2

    78.5

    76.3

    Money and credit

    		          

    Broad money (% change)

    3.5

    -1.1

    6.2

    5.6

    5.4

    Credit to economy (% change)

    23.5

    -9.4

    -12.2

    14.4

    13.8

    Balance of payments

    		          

    Current account (% GDP)

    -8.6

    -8.6

    -8.2

    -5.8

    -5.0

    FDI (% GDP)

    1.2

    1.2

    1.2

    1.2

    1.2

    WAEMU reserves (US$ billions)

    25.2

    26.1

    …

    …

    …

    External public debt (% GDP)

    39.0

    35.4

    34.7

    32.0

    30.9

    Exchange rate

    		          

    CFAF/US$ (average)

    622.4

    606.5

    606.2

    …

    …

    Sources: Guinea-Bissau authorities and IMF staff estimates and projections

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

    [2] Under the IMF’s Articles of Agreement, publication of documents that pertain to member countries is voluntary and requires the member consent. The staff report will be shortly published on the www.imf.org/guinea-bissau page.

    [3] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Julie Ziegler

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

    https://www.imf.org/en/News/Articles/2025/07/01/pr25230-guinea-bissau-2025-article-iv-and-eighth-review

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI China: Hong Kong boasts largest IPO market worldwide in H1

    Source: People’s Republic of China – State Council News

    Photo taken on July 31, 2021 shows the statues on the square of Hong Kong Exchanges and Clearing Limited (HKEX) in south China’s Hong Kong. [Photo/Xinhua]

    Hong Kong has beaten all the other capital markets in the world to raise over 105 billion Hong Kong dollars (13.38 billion U.S. dollars) through initial public offerings (IPOs) in the first half of 2025, as capital inflows into the city continues amid global market jitters.

    The Hong Kong Exchanges and Clearing Limited (HKEX) data showed that 42 companies were listed in the first six months, up 40 percent from the same period last year. Total funds raised stood at the highest since 2021, crushing the 87.6 billion Hong Kong dollars annual total in 2024.

    The HKEX claimed top spot worldwide in terms of total IPO proceeds in the first half of this year, well ahead of Nasdaq’s 71.3 billion Hong Kong dollars, a Deloitte report showed.

    Industry insiders say Hong Kong’s securities market became a global investors’ go-to platform to add Chinese assets to their portfolios.

    Capital inflow into Hong Kong has risen from 366 billion U.S. dollars at the beginning of last year to 605 billion dollars in April, the highest since 2000, data from Hang Seng Bank showed.

    Many global investors first look to Hong Kong to diversify risks, and, impressed by the economic vitality of the Chinese mainland and Hong Kong, chose to increase their holdings, said Paul Chan, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government.

    Pro-growth policy efforts from the central government and the HKSAR’s measures to streamline listing procedures have worked together to lift Hong Kong’s stock market, said HKEX Chairman Carlson Tong.

    Among this year’s new IPOs, crowd favorites are those of tech firms in artificial intelligence, 5G and smart vehicles, as well as new consumption companies, which cultivate and profit on consumer behaviors with the help of new technologies. Both are signatures of China’s economic upgrades.

    Chinese electric vehicle (EV) battery maker Contemporary Amperex Technology (CATL) raised over 40 billion Hong Kong dollars in May, drawing investments from Europe, the Middle East and the United States. It is the largest IPO in Hong Kong in recent years and a shoo-in for the largest worldwide this year.

    As flag bearers of new consumption trends, bubble tea makers like Mixue Bingcheng and Auntea Jenny marked memorable H1 IPOs, while Chinese fast food chain Home Original Chicken and snack brand Three Squirrels are waiting in line.

    The avid investor turnout to these new consumption IPOs is a token of faith in the resilience of China’s domestic demand, as these companies have developed tried and tested business models to meet the needs of younger consumers, analysts say.

    Hong Kong’s IPO market is expected to maintain steam in the second half. Edward Au, southern region managing partner of Deloitte China, said there are currently more than 170 applications in progress and estimated that a total of 80 IPOs will raise around 200 billion Hong Kong dollars this year.

    As dependence on U.S. dollar-denominated assets wanes, global investors are increasingly seeking to diversify their portfolios, said Tong, adding that the HKEX is working with counterparts in the Middle East and Southeast Asia to widen access to funding for tech firms worldwide. 

    MIL OSI China News –

  • MIL-OSI Economics: Morocco: African Development Bank approves over €300 million to improve competitiveness, strengthen resilience and create jobs

    Source: African Development Bank Group

    The Board of Directors of the African Development Bank Group has approved approximately €301 million to support Morocco’s economic resilience and drive job creation. The funding will back two key initiatives: the Entrepreneurship Support and Financing Programme for Job Creation (PAFE-Emplois) and the second phase of Economic Governance and Climate Resilience (PGRCC II).

    With €181.8 million in funding, PGRCC II aims to boost the Moroccan economy and strengthen its resilience to external shocks, particularly climate change. It will support competitiveness, private investment and economic resilience by modernizing the water and energy sectors. This programme will also contribute to consolidating Morocco’s new development model, in particular by promoting investment under the new Investment Charter.

    The PAFE-Emplois programme, backed by €119 million, will promote job creation by developing entrepreneurship and very small and medium-sized enterprises (VSEMEs). It will help establish a results-oriented culture, particularly in terms of employment impact. Its objectives are to support public support mechanisms for entrepreneurs, finance inclusive entrepreneurship, strengthen incentive mechanisms for VSEs and support innovative operational approaches to employment. This project will support the new roadmap for employment to promote job creation and entrepreneurship.

    ‘Together, these two new operations work in synergy and complement each other to strengthen their impact,’ said Achraf Tarsim, Country Manager for Morocco at the African Development Bank Group. They combine their objectives to consolidate the economy’s competitiveness, strengthen its resilience to shocks and boost investment and entrepreneurship. These are all levers for creating opportunities and jobs for young people and women. “

    For more than half a century, the African Development Bank Group has mobilised nearly €15 billion to finance more than 150 projects and programmes in the Kingdom. Its interventions cover strategic sectors such as transport, social protection, water and sanitation, energy, agriculture, governance and the financial sector.

    MIL OSI Economics –

  • MIL-OSI Economics: Heads of Multilateral Development Banks commit to strong joint action on development priorities

    Source: African Development Bank Group

    The Heads of Multilateral Development Banks (MDBs) met today in Paris, hosted by the Council of Europe Development Bank (CEB), which currently chairs the Heads of MDBs Group. The meeting focused on advancing their joint efforts to address development priorities.

    Amid rising global uncertainty, the Heads reaffirmed their commitment to working as a system to deliver greater impact and scale, in line with their Viewpoint Note and the recommendations of the G20 Roadmap towards Better, Bigger, and More Effective MDBs. The Roadmap outlines an ambitious vision for MDB reform to better address regional and global challenges, support job creation, and help countries achieve their development aspirations.

    The Heads welcomed ongoing efforts to improve the way MDBs work with clients through operational efficiency and enhanced coordination. In 2025 alone, five mutual reliance agreements have been signed, helping streamline the preparation and implementation of co-financed projects across institutions.

    Private capital mobilization remains a system-wide priority, with the last joint report of the MDBs reflecting a positive trend in volumes mobilized. To build on this momentum, the Heads reaffirmed their commitment to developing local currency lending and foreign exchange solutions. They also reaffirmed the importance of adequate risk assessment for private sector investment in emerging markets and developing economies; in this context, the valuable contribution of disaggregated statistics on credit risk published through the Global Emerging Markets Risk Database (GEMs) was recognized.

    The Heads reiterated their continued commitment to implementing the recommendations of the G20 Independent Review of Multilateral Development Banks’ Capital Adequacy Frameworks (CAF).  Further reform efforts by MDBs since mid-2024 have increased the additional lending headroom for development projects in all countries of operation, including high-income ones, over the next decade by more than US$250 billion, thus reaching a total of over US$650 billion.

    The publication in the coming weeks of the Comparison Report by the MDBs’ Global Risk and Finance Forum (GRaFF) will provide metrics and data relating to MDBs’ financial positions, promoting a better understanding of their financial models and supporting both balance sheet optimization and private sector mobilization. 

    The Heads also agreed to continue advancing promising initiatives already underway to strengthen system-wide impact. These include: 1) Mission 300, which aims to connect 300 million people in Africa to electricity by 2030 through public and private collaboration; 2) Association of South East Asian Nations (ASEAN) Power Grid, which aims to boost energy security, strengthen resilience, and promote decarbonization for the region’s 670 million people by connecting its electricity systems; and 3) Digital Transformation in Education in Latin America and the Caribbean, which aims to connect 3.5 million students and train over 250,000 teachers. 

    In addition, MDBs are exploring joint actions to scale up investments in social infrastructure, including health, education, housing, and water and sanitation. Building on structured dialogue led by the CEB, the Heads welcomed progress made through recent cross-MDB consultations and recognized the key role these sectors play in enabling jobs, productivity, and inclusive growth, while noting persistent financing and delivery challenges that constrain impact.

    Meeting in advance of the Fourth International Conference on Financing for Development (FfD4), which will take place in Sevilla, Spain, from 30 June to 3 July, MDBs remain committed to working better as a system, in alignment with country-led development priorities and strategies to promote jobs and prosperity. In view of water’s role in human development, MDBs committed to significantly increasing collective support for global water security by 2030, and will launch the first “Joint Annual MDB Water Security Financing Report” at FfD4. Heads noted the importance of the upcoming COP30 in Belem, Brazil, in November 2025.

    Today’s meeting in Paris marks a significant step toward effective collaboration and scaled-up collective action for development priorities. MDB reforms are advancing, moving from concept to execution.

    With streamlined operations, better risk tools, and growing financial capacity, MDBs are delivering real impact – from expanding energy access and digital education to scaling investment in water security.

    MIL OSI Economics –

  • MIL-OSI Economics: African Development Bank, AIIB sign MOU renewing their collaboration on sustainable economic development for Africa

    Source: African Development Bank Group

    The African Development Bank and the Asian Infrastructure Investment Bank (AIIB) have signed an agreement strengthening their collaboration on sustainable economic development, designed to boost infrastructure development and economic opportunities across the African continent.

    The Memorandum of Understanding, which builds on an earlier one in 2018, was signed by African Development Bank president, Dr. Akinwumi Adesina, and AIIB President and Chair of the Board of Directors Jin Liqun on Saturday 28 June. The signing took place on the sidelines of a meeting of Heads of Multilateral Development Banks held in Paris, France, the same day.

    The agreement outlines continued collaboration from both parties in six priority areas, aligned with the Bank Group’s Ten-Year Strategy 2024–2033 as well as AIIB’s Corporate Strategy and its Strategy on Financing Operations in Non-Regional Members. The areas are:

    • (i) Green infrastructure
    • (ii) Industrialization
    • (iii) Private capital mobilization including Public – Private Partnerships
    • (iv) Cross-border-connectivity
    • (v) Digitalization; and
    • (vi) Policy-based financing

    The MOU will promote among other things, co-financing, co-guaranteeing and other forms of joint participation in financial assistance for development projects primarily in sustainable infrastructure. The African Development Bank and AIIB’s existing cooperation in this area, includes providing guarantees to support the issuance of Egypt’s first Sustainable Panda Bond in 2023, valued at RMB 3.5 billion.

    This historic issuance—backed by guarantees from both AfDB and AIIB—marked the first African sovereign bond placed in the Chinese interbank bond market. The guarantees provided by the two triple-A-rated multilateral banks were instrumental in de-risking the transaction, enabling Egypt to secure competitive terms and attract investor confidence.

    “This partnership continues to be an effective pathway to provide economic development for our member countries, especially in infrastructure. By reaffirming today, we are boosting energy access by accelerating Mission 300 which is targeting to connect 300 million people to electricity by 2030,” Dr Adesina said.

    Mr. Jin Liqun remarked: “The renewal of our partnership with the African Development Bank reflects AIIB’s commitment to supporting sustainable development beyond Asia. Through this collaboration, we can leverage our combined expertise to deliver transformative projects that will benefit millions across the continent and create prosperity through quality infrastructure investment.”

    About the Asian Infrastructure Investment Bank (AIIB):

    The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “infrastructure for tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 110 approved members worldwide, is capitalized at USD100 billion and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.

    MIL OSI Economics –

  • MIL-OSI Submissions: Climate change is making it harder for people to get the care they need

    Source: The Conversation – Africa – By Maria S. Floro, Professor Emerita of Economics, American University

    The world is witnessing the consequences of climate change: long-lasting changes in temperature and rainfall, and more intense and frequent extreme weather events such as heat waves, hurricanes, typhoons, flooding and drought. All make it harder for families and communities to meet their care needs.

    Climate change affects care systems in various ways. First, sudden illnesses and unexpected disabilities heighten the need for care. Second, it reduces access to important inputs for care such as water, food and safe shelter. Third, it can damage physical and social care infrastructures.

    It can also lead to breakdowns of traditional units of caregiving such as households and communities. And it creates new situations of need with the increase in displaced person settlements and refugee camps.

    Climate change creates sudden spikes in the demand for care, and serious challenges to meeting the growing need for care. All this has immediate and long lasting effects on human well-being.

    The size of the current unmet care needs throughout the world is substantial. In childcare alone, about 23% of children worldwide – nearly 350 million – need childcare but do not have it. Families in low- and lower-middle-income countries are the most in need.

    Similarly, as the world’s population ages rapidly, only a small proportion of the elderly who need assistance are able to use formal care (in an institution or paid homecare). Most are cared for by family members or other unpaid caregivers. Much of this unpaid care and formal care work is provided by women and girls.

    Hundreds of millions of people around the world struggle to get healthcare. Expansion of access to essential health services has slowed compared to pre-2015 . And healthcare costs still create financial hardship.

    Without comprehensive public and global support for care provision and the integration of care in the climate agenda, unmet care needs will only grow and inequalities will widen.

    Impact

    Climate change interacts with human health in complex ways. Its impact is highly uneven across populations. It depends on geographical region, income, education, gender roles, social norms, level of development, and the institutional capacity and accessibility of health systems.

    In 2018-22, Africa experienced the biggest increase in the
    heat-related mortality rate since 2000-05    . This is not surprising as the continent has more frequent health-threatening temperatures than ever before and a growing population of people older than 65.

    Africa is also the region most affected by droughts in 2013-22, with 64% of its land area affected by at least one month of extreme drought per year on average. It was followed by Oceania (55% of its land area) and South and Central America (53%).

    Scientific evidence also points to increases in health inequalities caused by climate change. The health effects of climate change are not uniformly felt by different population groups.

    Exposure, severity of impact, and ability of individuals to recover depend on a variety of factors. Physiological characteristics, income, education, type of occupation, location, social norms and health systems are some of them.

    For example, older people and young children face the greatest health risks from high temperatures.

    There is also evidence of the disproportionate effect of climate change on the health of people living in poverty and those who belong to disadvantaged groups.

    Women of lower social and economic status and with less education are more vulnerable to heat stress compared to women in wealthier households and with higher education or social status. They are exposed to pollution in the absence of clean cooking fuel, and to extreme heat as they walk to gather water and fuel, or do other work outdoors.

    Bad sanitation in poor urban areas increases the incidence of water-borne diseases after heavy rains and floods.

    Lack of access to healthcare services and the means to pay for medicines make it difficult for women and men in low-income households to recover from illness, heat strokes, and air pollution-related ailments.

    Mental health problems are being attributed to climate change as well. Studies show that the loss of family or kin member, home, livelihood and a safe environment can bring about direct emotional impacts.

    These adverse impacts increase the demand for caregiving and the care workload. Climate-induced health problems force family and community caregivers, particularly women, to spend more time looking after the sick and disabled, particularly frail elderly people and children.

    Effect on food and water

    Climate change threatens the availability of food, clean water and safe shelter. It erodes households’ and communities’ care capacity and hence societies’ ability to thrive.

    Fluctuations in food supply and rising food prices as a result of environmental disasters, along with the inadequacy of government policies, underscore the mounting challenge of meeting food needs.

    The threat of chronic shortage of safe drinking water has also risen. Water scarcity is an area where structural inequalities and gender disparities are laid bare.

    Care for the sick and disabled, the young and the elderly is compromised when water is scarce.

    Effects on providing care

    Extreme weather events disrupt physical care infrastructures. It may be hard to reach hospitals, clinics, daycare centres, nursery schools and nursing homes. Some facilities may be damaged and have to close.

    Another type of care system that can break down is family networks and support provided by friends and neighbours. These informal care sharing arrangements are illustrated in a study of the three large informal settlements in Nairobi.

    About half (50.5%) of the sampled households reported having had a sick member in the two weeks before the survey. The majority relied on close friends and family members living nearby for care and support.

    Studies have shown that climate change eventually leads to livelihood loss and resource scarcity, which can weaken social cohesion and local safety nets in affected communities.

    Heightened risks and uncertainty and imminent changes in socio-economic and political conditions can also compel individuals or entire households to migrate. Migration is caused by a host of factors, but it has increasingly been a climate-related response.

    The World Bank’s Groundswell Report released in 2018, for example, projected that climate change could force 216 million people to move within their countries by 2050 to avoid the slow-onset impacts of climate change.

    A possible consequence of migration is the withdrawal of care support provided by the migrating extended kin, neighbours or friends, increasing the caregiving load of people left behind.

    In the case of forced displacements, the traditional social networks existing in communities are disrupted entirely.

    What’s needed

    There are compelling reasons to believe that meeting care needs can also help mitigate the effects of climate change. And actions to meet carbon-zero goals, prevent biodiversity loss and regenerate ecosystems can reduce the care work burden that falls heavily on families, communities and women.

    Any effort to tackle these grave problems should be comprehensive in scope and must be based on principles of equality, universality, and responsibility shared by all.

    This article is part of a series of articles initiated through a project led by the Southern Centre for Inequality studies, in collaboration with the International Development Research Centre and a group of feminist economists and climate scientists across the world.

    Maria S. Floro 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. Climate change is making it harder for people to get the care they need – https://theconversation.com/climate-change-is-making-it-harder-for-people-to-get-the-care-they-need-240557

    MIL OSI –

  • MIL-OSI Submissions: Jobless young South Africans often lose hope: new study proves the power of mentorship

    Source: The Conversation – Africa – By Lauren Graham, Professor at the Centre for Social Development in Africa, University of Johannesburg, University of Johannesburg

    More than a third of young South Africans are not in employment, education or training. This cohort of 3.4 million (37.1% of those aged 15–24) risks long-term joblessness. Discouragement – giving up looking for work – is also a risk, as the latest data show.

    This has serious social and economic implications. Social and economic exclusion can lead to declining mental health, social drift, long-term dependence on grants and lost economic potential.

    To help break this cycle, a research team we were part of piloted a Basic Package of Support programme that offered personalised coaching and referrals to services to tackle the barriers young people face. Between 2022 and 2024 we worked with 1,700 young people in three of South Africa’s nine provinces – Gauteng, KwaZulu-Natal and the Western Cape. The team worked in peri-urban areas where there were high rates of young people not in education, employment or training.

    The initiative aimed to help young people clarify their goals and find pathways into relevant learning and earning an income.

    The results of the programme showed improved mental health, reduced distress and a stronger sense of belonging. The findings show the power of targeted and multifaceted support to prevent social drift.

    The programme and its participants

    The pilot took place in three peri-urban communities with limited job and learning opportunities, and high rates of poverty and unemployment. We chose these areas for their high rates of young people who are not in education, employment or training.

    Over half of the participants (51%) were aged 18-20, 43% were 21-24 and just under 6% were aged 25-27. While 51% had completed high school, 30% had grade 9-11, and under 2% had less than grade 9. A further 17% held a university degree. Most (77%) had been actively seeking work, or opportunities in training or volunteering (73%), when they started the programme.

    Data were collected at intake and after three sessions. A monitoring survey after each coaching session was used to determine whether the participant was in any earning or learning opportunity.

    The qualitative component included in-depth interviews with young people who had completed multiple coaching sessions. Interviews were conducted six to eight months after pilot sites were opened to explore participants’ situations, experiences of coaching, and any shifts in perspective.

    The primary objective of this pilot phase was to assess the programme’s capability to:

    • engage and support disconnected young people

    • achieve anticipated outcomes, including improved sense of belonging, wellbeing and connection to learning or earning opportunities.

    In general, feelings of being supported and having access to resources in their community were low among the participants: 18.33% reported having had low levels of support in general, from adults and from peers. Young men reported considerably higher access to peer support than women (9% of men rated peer support as low relative to 24% of women).

    One-third of young people reported a lack of access to, or availability of, resources in their community. These resources included health, psychosocial, or training resources.

    Changes in well-being and mental health

    Emotional wellbeing and psychosocial factors are critical precursors to engagement in the labour market. Having a sense of control, positive sense of self-esteem, and future orientation promote resilience, which is critical to searching for and taking up opportunities.

    Research has also shown that spending a long time without learning or earning creates disillusionment and poor mental health, creating a cycle of chronic unemployment and social drift.

    For these reasons we felt it was important to examine how the young people’s well-being had changed as they progressed through the programme. The programme involved:

    • reaching out to young people

    • conducting an assessment to understand where they wanted to go and the barriers they faced

    • coaching sessions

    • referrals to relevant services to overcome barriers

    • opportunites to take steps towards their planned objectives.

    The research team saw positive changes in all emotional well-being indicators, including quality of life, anxiety, emotional distress, and sense of belonging. Participants also showed an interest in taking up available training and work opportunities. They showed improvements in the three key outcomes we examined for this pilot phase.

    Firstly, participants felt supported, were more resilient, and had better mental health outcomes than before they completed three coaching sessions.

    Secondly, they showed increased capacity, knowledge and resources to navigate and access the systems and services needed to realise their aspirations.

    Thirdly, 40% of them took up available opportunities to learn and earn income after just three coaching sessions. Larger numbers of these young people connected to training or education opportunities than to job opportunities. This is hardly surprising in the context of low job growth.

    Taken together, these findings showed that the young people felt more positive about their lives after completing three coaching sessions. They indicated that, prior to starting the programme, they had been feeling unhappy about life and lost about how to move forward in their lives.

    Part of their frustration was not having anyone to talk to about how they were feeling.

    A 21-year-old female participant said after completing round two:

    I didn’t know where I was going in life, what I was going to do, I didn’t know where to start. It was a whole blank page for me.

    A young man said after round one:

    Before I got here, the way I was feeling I didn’t think I can do anything progressive about my life. I had finished high school, but I didn’t know what step to take from there and … I did try but nothing worked … Coaching helped me cope and feel more optimistic.

    Next steps

    The programme is based on the idea that some young people need more time and support to find their way back into work or education. This might mean connecting them to counselling, childcare, nutrition or social grants.

    The pilot revealed high levels of emotional distress, echoing recent labour force data that shows growing discouragement in the working age population. It’s clear that skills training alone isn’t enough; many young people need broader, deeper support to reconnect and thrive.

    Efforts to help young people become employable need to offer more support than simply skills training. People involved in the youth employability/youth employment policy and programming sector have to understand young people from a holistic point of view and take into account the significant barriers that poverty and deprivation continue to create. This is the only way to achieve employability programmes that make an impact.

    Lauren Graham receives funding from the DSTI/NRF as the Interim Research Chair in Welfare and Social Development. The Basic Package of Support programme is funded by the Standard Bank Tutuwa Community Foundation, UNICEF, and the National Pathway Manager (Harambee Youth Employment Accelerator). Lauren Graham, in her capacity as co-project lead on the BPS, is a member of the National Pathway Management Network.

    Ariane De Lannoy is affiliated with the University of Cape Town. Her research portfolio has a strong focus on youth unemployment and youth well-being. She is one of the principal investigators on the Basic Package of Support for youth who are NEET programme.

    – ref. Jobless young South Africans often lose hope: new study proves the power of mentorship – https://theconversation.com/jobless-young-south-africans-often-lose-hope-new-study-proves-the-power-of-mentorship-259168

    MIL OSI –

  • MIL-OSI Submissions: Indonesia can expand its gastrodiplomacy via plant-based meals in Europe: Research

    Source: The Conversation – Indonesia – By Meilinda Sari Yayusman, Researcher in International Relations and European Studies, Badan Riset dan Inovasi Nasional (BRIN)

    Raw vegetable and lettuce salad with Indonesian fried tempeh. Gekko Gallery/Shutterstock

    Gastrodiplomacy as the practice of a country’s diplomacy by promoting its cuisine, is now gaining popularity in several countries across the globe, including South Korea and Thailand.

    South Korea, for example, has introduced its so-called “Kimchi Diplomacy” in the world for the past years as part of the country’s soft power in promoting culinary culture. Thailand, meanwhile, has been spreading the influence of Thai food and expanding Thai restaurants around the globe, attracting the global communities to eat authentic Thai cuisine.

    Indonesia, with diverse food and beverages as well as indigenous spices, has also started to resort to this strategy to promote the country in the global forum.

    Our unpublished observation based on fieldwork in May 2023 and literature reviews since mid-2021 resulted in a recommendation for the Indonesian government to take advantage of its diverse menu for its gastrodiplomacy agenda.

    We recommend Indonesia emphasise plant-based dishes for its gastrodiplomacy strategy in Europe, given the region’s rising trend of plant-based food consumption.

    Why plant-based food

    A growing number of people are increasingly considering plant-based food as a dietary alternative to maintain their health following global concerns on the negative impacts of processed foods on health, society and the environment.

    Gado-gado (Indonesian authentic salad with peanut dressing).
    Endah Kurnia P/Shutterstock

    Indonesia has a lot of ingredients and spices to create plant-based menus that have met global healthy standards.

    Among them are tempeh, a traditional Indonesian food made from fermented soybeans. The fermentation increases its nutritional quality. Tempeh has been known in the Netherlands and already has consumers in Europe. However, it is not widespread yet in the whole continent.

    Gado-gado, the famous Indonesian salad with its authentic peanut butter dressing, has also seen an emerging popularity in the global market. From our fieldwork, we have learned that almost all Indonesian restaurants worldwide, such as in The Hague and Amsterdam, the Netherlands, usually have gado-gado on their menus.

    Other plant-based cuisines that have potential to gain popularity abroad are asinan (fruit salad preserved with vinegar) and gudeg (jackfruit stewed in coconut milk).

    However, our observation shows that Indonesian vegan menus have yet to be widely known in Europe and other continents. Indonesia should promote them in the global market.

    Why Europe

    Plant-based food trend has been currently growing in many industrialised countries, especially in Europe.

    Gudeg, a traditional Javanese dish from Indonesia’s Yogyakarta, is made from young unripe jack fruit stewed for several hours with palm sugar, and coconut milk.
    Ricky_herawan/Shutterstock

    In Europe, the value of plant-based food sales increased by 49% between 2018 and 2020. This includes an expansion in the market for plant-based substitutes for meat and dairy.

    In the Netherlands, for example, sales rose by 50% during the same period. Germany and Poland have also witnessed a notable surge in the sales of plant-based food products, with an increase of 97% and 62%, respectively.

    With the change in people’s food consumption habits, Europe can be a significant, promising market for Indonesia to expand the promotion of its plant-based food products.

    Taking advantage of current presence

    The fact that Indonesia’s culinary presence in Europe is already evident, particularly in the Netherlands, should benefit Indonesia.

    Based on our finding, no less than 392 Indonesian restaurants are operating in West and South Europe, majority of which (295) is in the Netherlands. They have become popular since the 1970s.

    For hundreds of years, the Netherlands colonised parts of what is now Indonesia. The colonial history between the two nations has created a sense of romanticism, including what and how they ate in the past.

    Many Indonesian citizens living in European countries own Indonesian cuisine restaurants, and recently, they have started to develop plant-based menus in their kitchens.

    The Netherlands offers a promising hub for introducing Indonesian foods and establishing Indonesian restaurants in other parts of Europe.

    Tofu is an Indonesian traditional food made from soybean.
    Erly Damayanti/Shutterstock

    As part of our observation, we visited some Indonesian restaurants in the Netherlands that are developing plant-based menus in their kitchens for vegans and vegetarians, in response to the rising popularity of plant-based food in European society.

    Among them were De Vegetarische Toko, Toko Kalimantan, Bali Brunch 82 and Praboemoelih. They serve gado-gado, variants of tempeh and tofu and tumis buncis (vegetable stir-fry).

    De Vegetarische Toko, for example, has creatively transformed some authentic Indonesian foods into vegan and vegetarian-friendly versions. They replace the meats in menus like rendang (slow-cooked beef stew in coconut milk and spices) and semur (beef stew) with tempeh, tofu, beans and peanuts.

    With these creative innovations, these restaurants may have an excellent opportunity to extend and promote Indonesian plant-based meals more widely to other parts of Europe, thus supporting Indonesia’s gastrodiplomacy.

    More support needed

    Indonesia has acknowledged its gastrodiplomacy potential through several programs.

    In 2021, Indonesia launched “Indonesia Spice Up the World”. It becomes the country’s first-ever concrete initiative to promote Indonesian cuisine and attract investment opportunities in local spices and herbs.

    The initiative aims to increase Indonesian spice exports to US$2 billion, launch approximately 4,000 Indonesian restaurants abroad by 2024 and make Indonesia a culinary destination in the future.

    To support this kind of initiative, the Indonesian government should regularly and intensively communicate with all stakeholders involved in the Indonesian culinary industry. The partnership should aim to support Indonesian diaspora entrepreneurs looking to start businesses in the food sector abroad.

    One example is offering soft loans to these food entrepreneurs.
    Bank BNI, Indonesia’s fourth-largest bank, has begun offering this kind of loan.

    It is time for Indonesia to strengthen its international existence through gastrodiplomacy by taking advantage of the rising consumption of plant-based meals among global communities. Tempeh, gado-gado, asinan and gudeg can become a powerful weapon of Indonesia’s soft diplomacy on the global stage.

    Meilinda Sari Yayusman receives funding by the Institute of Social Sciences and Humanities, National Research and Innovation Agency (BRIN), Indonesia.

    Andika Ariwibowo receives funding by the Institute of Social Sciences and Humanities, National Research and Innovation Agency (BRIN), Indonesia.

    Prima Nurahmi Mulyasari receives funding by the Institute of Social Sciences and Humanities, National Research and Innovation Agency (BRIN), Indonesia.

    Ahmad Nuril Huda tidak bekerja, menjadi konsultan, memiliki saham, atau menerima dana dari perusahaan atau organisasi mana pun yang akan mengambil untung dari artikel ini, dan telah mengungkapkan bahwa ia tidak memiliki afiliasi selain yang telah disebut di atas.

    – ref. Indonesia can expand its gastrodiplomacy via plant-based meals in Europe: Research – https://theconversation.com/indonesia-can-expand-its-gastrodiplomacy-via-plant-based-meals-in-europe-research-209193

    MIL OSI –

  • MIL-OSI Submissions: AI is consuming more power than the grid can handle — nuclear might be the answer

    Source: The Conversation – Canada – By Goran Calic, Associate Profesor of Strategy and Entrepreneurship Leadership Chair, McMaster University

    New partnerships are forming between tech companies and power operators — ones that could reshape decades of misconceptions about nuclear energy.

    Last year, Meta (Facebook’s parent company) put out a call for nuclear proposals, Google agreed to buy new nuclear reactors from Kairos Power, Amazon partnered with Energy Northwest and Dominion Energy to develop nuclear energy and Microsoft committed to a 20-year deal to restart Unit 1 of the Three Mile Island nuclear plant.

    At the centre of these partnerships is artificial intelligence’s voracious appetite for electricity. One Google search uses about as much electricity as turning on a household light for 17 seconds. Asking a Generative AI model like ChatGPT a single question is equivalent to leaving that light on for 20 minutes.



    Read more:
    AI is bad for the environment, and the problem is bigger than energy consumption

    Having GenAI generate an image can draw about 6,250 times more electricity, roughly the energy of fully charging a smartphone, or enough to keep the same light bulb on for 87 consecutive days.

    The hundreds of millions of people now using AI have effectively added the equivalent of millions of new homes to the power grid. And demand is only growing. The challenge for tech companies is that few sources of electricity are well-suited to AI.

    The grid wasn’t ready for AI

    AI requires vast amounts of computational power running around the clock, often housed in energy-intensive data centres.

    Renewable energy sources such as solar and wind provide intermittent energy, meaning they don’t guarantee the constant power supply these data centres require. These centres must be online 24/7, even when the sun isn’t shining and the wind isn’t blowing.

    Fossil fuels can run continuously, but they carry their own risks. They have significant environmental impacts. Fuel prices can be unpredictable, as exemplified by the gas price spikes due to the war in Ukraine, and the long-term availability of fossil fuels is uncertain.

    Major tech companies like Google, Amazon and Microsoft say they are committed to eliminating CO2 emissions, making fossil fuels a poor long-term fit for them.

    This has pushed nuclear energy back into the conversation. Nuclear energy is a good fit because it provides electricity around the clock, maximizing the use of expensive data centres. It’s also clean, allowing tech companies to meet their low CO2 commitments. Lastly, nuclear energy has very low fuel costs, which allows tech companies to plan their costs far into the future.

    However, nuclear energy has its own set of problems that have historically been hard to solve — problems that tech companies may now be uniquely positioned to overcome.

    Is nuclear energy making a comeback?

    Nuclear power has long been considered too costly and too slow to build. The estimated cost of a 1.1 gigawatt nuclear power facility is about US$7.77 billion, but can run higher. The recently completed Vogtle Units 3 and 4 in the state of Georgia, for example, cost US$36.8 billion combined.

    Historically, nuclear energy projects have been hard to justify because of their high upfront costs. Like solar and wind power, nuclear energy has relatively low operating costs once a plant is up and running. The key difference is scale: unlike solar panels, which can be installed on individual rooftops, the kind of nuclear reactors tech companies require can’t be built small.

    Yet this cost is now more palatable when compared to the expense of AI data centres, which are both more costly and entirely useless without electricity. The first phase of OpenAI and SoftBank’s Stargate AI project will cost US$100 billion and could be entirely powered by a single nuclear plant.

    Nuclear power plants also take a long time to build. A 1.1 gigawatt reactor takes, on average, 7.5 years in the U.S. and 6.3 years globally. Projects with such long timelines require confidence in long-term electricity demand, something traditional utilities struggle to predict.

    To solve the problem of long-range forecasting, tech companies are incentivizing power providers by guaranteeing they’ll purchase electricity far into the future.

    These companies are also literally and financially moving closer to nuclear power, either by acquiring nuclear energy companies or locating their data centres next to nuclear power plants.

    Destigmatizing nuclear energy

    One of the biggest challenges facing nuclear energy is the perception that it’s dangerous and dirty. Per gigawatt-hour of electricity, nuclear produces only six tonnes of CO2. In comparison, coal produces 970, natural gas 720 and hydropower 24. Nuclear even has lower emissions than wind and solar, which produce 11 and 53 tonnes of CO2, respectively.

    Nuclear energy is also among the safest energy sources. Per gigawatt-hour, it causes 820 times fewer deaths than coal, 43 times fewer than hydropower and roughly the same as wind and solar.

    Still, nuclear energy remains stigmatized, largely because of persistent misconceptions and outdated beliefs about nuclear waste and disasters. For instance, while many public concerns remain about nuclear waste, existing storage solutions have been used safely for decades and are supported by a strong track record and scientific consensus.

    Similarly, while the Fukushima disaster in Japan displaced thousands of people and was extremely costly (total costs of the disaster are expected at about US$188 billion), not a single person died of radiation exposure after the accident, a United Nations Scientific Committee of 80 international experts found.



    Read more:
    With nuclear power on the rise, reducing conspiracies and increasing public education is key

    For decades, there was little effort to correct public perceptions about nuclear fears because it wasn’t seen as necessary or profitable. Coal, gas and renewables were sufficient to meet the demand required of them. But that’s now changing.

    With AI’s energy needs soaring, Big Tech has classified nuclear energy as green and the World Bank has agreed to lift its longstanding ban on financing nuclear projects.

    Big Tech’s billion-dollar bet on nuclear

    The world has long lived with two nuclear dilemmas. The first is that, despite being one the safest and cleanest form of energy, nuclear was perceived as one the most dangerous and dirtiest.

    The second is that upgrading the power grid requires large-scale investments, yet money had been funnelled into small, distributed sources like solar and wind, or dirty ones like coal and natural gas.

    Now tech companies are making hundred-billion-dollar strategic bets that they can solve both nuclear dilemmas. They are betting that nuclear can offer the kind of steady, clean power their AI ambitions require.

    This could be an unexpected positive consequence of AI: the revitalization of one of the safest and cleanest energy sources available to humankind.

    Michael Tadrous, an undergraduate student and research assistant at the DeGroote School of Business at McMaster University, co-authored this article.

    Goran Calic 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. AI is consuming more power than the grid can handle — nuclear might be the answer – https://theconversation.com/ai-is-consuming-more-power-than-the-grid-can-handle-nuclear-might-be-the-answer-258677

    MIL OSI –

  • MIL-OSI New Zealand: Economy – Depositor Compensation Scheme now in effect – Reserve Bank

    Source: Reserve Bank of New Zealand

    1 July 2025 – The Depositor Compensation Scheme (DCS) came into effect today, protecting depositors for up to $100,000 in the unlikely event that their bank or other licensed deposit taker fails.  

    Licensed deposit takers include banks, credit unions, building societies and finance companies who take retail deposits in New Zealand and are supervised by the Reserve Bank of New Zealand.  

    The scheme covers money held in standard banking products, including transaction, savings, notice, and term deposit accounts. It protects individuals, businesses and trusts, and applies automatically from today.    

    The scheme is established under the Deposit Takers Act 2023, and the Reserve Bank will manage and administer the scheme. It is fully funded by levies on industry.

    Kerry Beaumont, Director of Enforcement and Resolution at the Reserve Bank says, “While deposit taker failures are rare, the DCS gives depositors extra peace of mind that their standard banking products are protected. This type of protection already exists in many other countries and contributes to the stability of New Zealand’s financial system.”  

    The scheme does not cover investments like KiwiSaver, bonds, shares, and similar products. It also does not protect against frauds or scams.  

    Banks, credit unions, building societies and finance companies who take retail deposits will list their DCS-protected products on their websites so depositors can check if their accounts are covered. Information about the scheme is also available on the Reserve Bank website.
     

    More information

    You can find a list of all deposit takers that offer DCS-covered deposits on the RBNZ’s website here: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=7fb4bc651b&e=f3c68946f8

    MIL OSI New Zealand News –

  • MIL-OSI Video: RBNZ Protecting your money with the Depositor Compensation Scheme (DCS)

    Source: Reserve Bank of New Zealand (video statements)

    Visit https://dcs.govt.nz/ to learn more

    https://www.youtube.com/watch?v=wG4wIDQbjus

    MIL OSI Video –

  • MIL-OSI Video: RBNZ Introducing the Depositor Compensation Scheme (DCS) – NZSL

    Source: Reserve Bank of New Zealand (video statements)

    https://www.youtube.com/watch?v=zoaiBd9dYXs

    MIL OSI Video –

  • MIL-OSI: ServisFirst Bancshares, Inc. to Announce Second Quarter 2025 Financial Results July 21st

    Source: GlobeNewswire (MIL-OSI)

    BIRMINGHAM, Ala., June 30, 2025 (GLOBE NEWSWIRE) — ServisFirst Bancshares, Inc. (NYSE: SFBS) is scheduled to announce earnings and operating results for the quarter ended June 30, 2025 on July 21, 2025 at 4 p.m. ET. The news release will be available at www.servisfirstbancshares.com.

    ServisFirst Bancshares, Inc. will host a live audio webcast to discuss earnings and results on Monday, July 21, 2025 beginning at 5:15 p.m. ET. The audio webcast can be accessed at www.servisfirstbancshares.com. A replay of the call will be available until July 31, 2025.

    About ServisFirst Bancshares, Inc.

    ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia. Through the bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions.

    ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.servisfirstbancshares.com.

    More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com or by calling
    (205) 949-0302.

    Contact: ServisFirst Bank
    Davis Mange (205) 949-3420
    DMange@servisfirstbank.com

    The MIL Network –

  • MIL-OSI: ServisFirst Bancshares, Inc. to Announce Second Quarter 2025 Financial Results July 21st

    Source: GlobeNewswire (MIL-OSI)

    BIRMINGHAM, Ala., June 30, 2025 (GLOBE NEWSWIRE) — ServisFirst Bancshares, Inc. (NYSE: SFBS) is scheduled to announce earnings and operating results for the quarter ended June 30, 2025 on July 21, 2025 at 4 p.m. ET. The news release will be available at www.servisfirstbancshares.com.

    ServisFirst Bancshares, Inc. will host a live audio webcast to discuss earnings and results on Monday, July 21, 2025 beginning at 5:15 p.m. ET. The audio webcast can be accessed at www.servisfirstbancshares.com. A replay of the call will be available until July 31, 2025.

    About ServisFirst Bancshares, Inc.

    ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia. Through the bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions.

    ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.servisfirstbancshares.com.

    More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com or by calling
    (205) 949-0302.

    Contact: ServisFirst Bank
    Davis Mange (205) 949-3420
    DMange@servisfirstbank.com

    The MIL Network –

  • MIL-OSI: Hawthorn Bancshares joins Russell 3000® and Russell 2000® Indexes in FTSE Russell’s 2025 Reconstitution

    Source: GlobeNewswire (MIL-OSI)

    Jefferson City, Mo., June 30, 2025 (GLOBE NEWSWIRE) — Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, is pleased to announce they met the criteria for inclusion in the broad-market Russell 3000® Index (the “Russell 3000”) and the small-cap Russell 2000® Index (the “Russell 2000”) at the conclusion of the Russell indexes’ reconstitution. The inclusion is effective today with the opening of the U.S. market.

    Inclusion in the Russell 2000, which is maintained for one year, is based on inclusion in the broader Russell 3000. The Company’s common stock will be automatically added to the appropriate growth and value indexes.

    The Russell 3000 is comprised of the largest 3,000 U.S. public companies by market capitalization. The Russell 2000 is a subset of the Russell 3000 that is limited to small-cap companies. The indexes are reconstituted by ranking companies based on total market capitalization as of the reconstitution rank date. Index membership results in automatic inclusion in the relevant growth and value style indexes.

    “We are pleased to join these key market indexes,” said Brent M. Giles, Director and CEO of Hawthorn Bancshares, Inc. “Our inclusion in the Russell 3000 and the Russell 2000 is representative of our growth and progress over the past few years. We believe the recognition enhances our visibility in the broader investment community and serves as validation of our ability to drive value to our shareholders.”

    The Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to the data as of the end of June 2024, about $10.6 trillion in assets are benchmarked against the Russell US indexes, which belong to FTSE Russell, the global index provider.

    For more information on the Russell 2000, Russell 3000, and the Russell indexes’ reconstitution, visit the “Russell Reconstitution” section on the FTSE Russell website.

    About Hawthorn Bancshares, Inc.

    Hawthorn Bancshares, Inc., a financial-bank holding company headquartered in Jefferson City, Missouri, is the parent company of Hawthorn Bank, which has served families and businesses for more than 150 years. Hawthorn Bank has multiple locations, including in the greater Kansas City metropolitan area, Jefferson City, Columbia, Springfield, and Clinton.

    Contact:

    Hawthorn Bancshares, Inc.
    Brent M. Giles
    Chief Executive Officer
    TEL: 573.761.6100
    www.HawthornBancshares.com

    Statements made in this press release that suggest Hawthorn Bancshares’ or management’s intentions, hopes, beliefs, expectations, or predictions of the future include “forward-looking statements” within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the company’s quarterly and annual reports filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company disclaims any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law.

    The MIL Network –

  • MIL-OSI Russia: IMF Executive Board Concludes the 2025 Article IV Consultation with the Republic of Serbia and Completes the First Review Under the Policy Coordination Instrument

    Source: IMF – News in Russian

    June 30, 2025

    • Serbia’s prudent macroeconomic policies have supported economic resilience in an uncertain global environment. After a brief slowdown in early 2025, growth is expected to reaccelerate in 2026 and 2027.
    • The authorities are maintaining fiscal discipline and implementing macro-critical structural reforms under the Policy Coordination Instrument, having completed the first review. While Serbia faces domestic and external uncertainties, it has built strong buffers to withstand potential shocks.
    • Reinvigorating reforms to improve the business environment and governance would help sustain Serbia’s strong growth over the medium term.

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the 2025 Article IV Consultation with the Republic of Serbia and completed the first review of Serbia’s performance under the Policy Coordination Instrument (PCI).[1] The authorities have consented to the publication of the Staff Report prepared for the consultation and the review.[2]

    Serbia’s macroeconomic performance remains resilient amid a challenging global environment. IMF staff projects real GDP growth at 3 percent in 2025, rising to 4 percent in 2026 and 4.5 percent in 2027. Headline inflation has returned to National Bank of Serbia’s target band (3 percent +/-1.5 percentage points), driven by declining energy prices and moderating core inflation. The monetary policy stance is appropriately restrictive.

    Despite increased public investment, the fiscal deficit remains under control due to strong revenue performance and prudent management of current spending. While the current account deficit has widened, reflecting higher imports supporting the public investment drive and weak external demand, international reserves remain ample.

    Fiscal structural reforms are progressing, including in further strengthening public financial management and public investment management. Energy sector reforms are also advancing but more remains to be done to ensure financial sustainability and operational efficiency in state-owned energy enterprises. Reinvigorating reforms to strengthen the business environment and improve governance is important for supporting Serbia’s growth rates over the medium term.

    Downside risks to the outlook are elevated. A global slowdown and further geoeconomic fragmentation could weigh on exports and foreign direct investment. Domestically, heightened political tensions could erode consumer and investor confidence. But Serbia is well-positioned to manage potential shocks— international reserves and government deposits are high, public debt is declining, and banks are well-capitalized and liquid.

    At the conclusion of the Board discussion on the Republic of Serbia, Ms. Gita Gopinath, First Deputy Managing Director, made the following statement:

    “Serbia’s prudent macroeconomic policies and strong engagement with the IMF have delivered impressive results. Growth has been resilient, and fiscal and external buffers have strengthened. Reflecting these accomplishments, Serbia received its first-ever investment grade sovereign rating in 2024. Under the Policy Coordination Instrument (PCI), the Serbian authorities have continued their commitment to sound economic policies and structural reforms.

    “In light of easing inflation and heightened domestic and external challenges, the planned fiscal expansion focused on growth-enhancing investment, can help cushion the near-term slowdown while boosting medium-term growth. Fiscal policy anchored to the deficit target, which safeguards hard-earned fiscal credibility and contains pressures on current spending, is critical. As the current investment cycle winds down, gradual fiscal consolidation is needed to rebuild buffers against external shocks. Advancing fiscal structural reforms remains essential, particularly to strengthen public financial management, enhance governance and transparency in public investment management, and address emerging fiscal risks.

    “A restrictive monetary policy stance remains appropriate until disinflation is firmly sustained. While banks have been resilient and systemic risks remain contained, financial intermediation would benefit from additional improvements in regulatory and supervisory frameworks, including by closer alignment with EU standards. Continued progress on strengthening AML/CFT is also important.

    “Further energy reforms remain crucial for securing sustainable and stable energy supplies. Increases in grid fees and electricity tariffs would improve cost recovery and the financial strength of energy state-owned enterprises and allow for investment in a more diversified and less carbon-intensive energy mix.

    “Serbia faces medium-term challenges including from population aging. Enhancing productivity will be critical to sustaining income convergence with advanced economies. This will require structural and governance reforms to attract higher value-added FDI and domestic private investment to support growth. Improving the business environment will require measures to enhance commercial judicial frameworks, foster innovation, and strengthen governance.”

     

    Executive Board Assessment[3]

    Executive Directors agreed with the thrust of the staff appraisal. They commended Serbia’s prudent macroeconomic policies and strong commitment to reforms and welcomed the satisfactory performance under the Policy Coordination Instrument. Noting the heightened domestic and external risks to the outlook, Directors emphasized the importance of sustaining fiscal discipline, rebuilding buffers to shocks, and increasing productivity to support more sustainable growth.

    Directors underscored that a fiscal deficit of 3.0 percent of GDP or lower would allow for priority investment spending, while preserving hard won credibility. They recognized the authorities’ commitment to adhere to the wage and pension special fiscal rules, which should help to keep public debt firmly on a downward path and support investor confidence. Directors welcomed the focus on ensuring transparent, accountable, and efficient government operations. Measures to improve public financial and investment management and fiscal risk management will help to maintain fiscal discipline, while ensuring the delivery of quality public investment. Directors also underscored the need to strengthen tax administration capacity. They welcomed the authorities’ commitment to addressing domestic arrears and preventing the accumulation of new arrears.

    Directors agreed on the need to maintain a monetary policy tightening bias to achieve sustained disinflation. While noting that the banking sector has been resilient and systemic risks remain contained, Directors stressed the need for continued efforts to enhance regulatory and supervisory frameworks, including through closer alignment with EU standards. Continued efforts to strengthen AML/CFT frameworks are also important.

    Directors highlighted that energy sector reforms remain essential to secure sustainable and stable energy supplies and support decarbonization. Accordingly, they welcomed the authorities’ commitment to strengthen the financial viability of energy state owned enterprises and support investment in a more diversified energy mix. In this regard, ensuring cost recovery through increased household electricity tariffs is important.

    Directors agreed that ambitious structural and governance reforms are critical to achieving strong and sustainable medium term growth. Noting the impact of the aging population, Directors stressed the need to enhance employment opportunities for women and youth and to ensure better matching of skills with evolving labor market demands. They also supported intensified efforts to improve the business environment, including by enhancing commercial judicial frameworks, fostering innovation, and improving governance. Continued efforts to reduce corruption are important.

    It is expected that the next Article IV consultation with the Republic of Serbia will be held on the 24-month cycle.

    Serbia:  Selected Economic and Social Indicators, 2024–27

    2024

    2025

    2026

    2027

    Est.

    PCI Request

    Proj.

    PCI Request

    Proj.

    PCI Request

    Proj.

    Output

    Real GDP growth (%)

    3.8

    4.2

    3.0

    4.2

    4.0

    4.5

    4.5

     

     

     

    Employment

     

     

     

    Unemployment rate (labor force survey) (%)

    8.6

    8.5

    8.5

    8.4

    8.4

    8.3

    8.3

     

     

     

    Prices

     

     

     

    Inflation (%), end of period

    4.3

    3.4

    3.3

    3.3

    3.2

    3.2

    3.2

     

     

     

    General Government Finances

     

     

     

    Revenue (% GDP)

    40.9

    41.2

    40.9

    40.9

    40.4

    40.9

    40.1

    Expenditure (% GDP)

    42.9

    44.2

    43.9

    43.9

    43.4

    43.9

    43.1

    Fiscal balance (% GDP)

    -2.0

    -3.0

    -3.0

    -3.0

    -3.0

    -3.0

    -3.0

    Public debt (% GDP)

    47.5

    47.7

    46.8

    46.9

    46.5

    46.4

    46.4

     

     

     

    Money and Credit

     

     

     

    Broad money, eop (% change)

    13.6

    8.0

    7.8

    7.8

    8.0

    8.3

    8.8

    Credit to the private sector, eop (% change) 1/

    8.5

    7.9

    9.3

    5.7

    9.6

    9.2

    10.5

     

     

     

    Balance of Payments

     

     

     

    Current account (% GDP)

    -4.7

    -5.1

    -5.4

    -5.2

    -5.6

    -5.5

    -4.5

    FDI (% GDP)

    5.6

    5.1

    4.4

    4.8

    4.8

    4.7

    4.4

    Reserves (months of prospective imports)

    7.3

    6.6

    7.0

    6.3

    6.5

    5.9

    6.5

    External debt (% GDP)

    61.9

    60.3

    61.3

    58.7

    59.3

    55.9

    54.8

     

     

     

    Exchange Rate

     

     

     

    REER (% change)

    2.3

    …

    …

    …

    …

    …

    …

     

     

     Sources: Serbian authorities and IMF staff estimates.

     1/ Calculated at a constant exchange rate to exclude the valuation effects. 

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

    [2] Under the IMF’s Articles of Agreement, publication of documents that pertain to member countries is voluntary and requires the member consent. The staff report will be shortly published on the www.imf.org/Serbia page.

    [3] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Camila Perez

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

    https://www.imf.org/en/News/Articles/2025/06/30/pr-25228-serbia-imf-concludes-2025-art-iv-consult-completes-1st-rev-policy-coor-instrument

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI USA: Rep. Dina Titus Introduces GLOBE Act of 2025 to Protect LGBTQI Rights Worldwide

    Source: United States House of Representatives – Congresswoman Dina Titus (1st District of Nevada)

    Congresswoman Dina Titus today introduced the Greater Leadership Overseas for the Benefit of Equality (GLOBE) Act of 2025 to protect LGBTQI rights by codifying into law protections and safeguards for the rights of LGBTQI people around the world.

    “No person should suffer from discrimination because of who they are or whom they love,” Congresswoman Titus (NV-01) said. “Under the Trump Administration, the U.S. is failing to protect the rights of LGBTQI people at home and abroad. This bill will help restore our role in promoting LGBTQI rights around the world and punishing regimes that persecute people based on their sexual orientation or gender identity.”

    The GLOBE Act of 2025 would codify in law the Special Envoy position, require the State Department to document cases of human rights abuses and discrimination against LGBTQI people around the world, and institute sanctions against foreign individuals who are responsible for egregious abuses and murders of LGBTQI populations. Additionally, the bill ensures fair access to asylum and refugee programs for LGBTQI individuals who face persecution because of their sexual orientation. 

    “Through his executive orders and anti-DEI initiatives, President Trump has attacked fundamental human rights and the dignity of the LGBTQI community,” Congresswoman Titus said. “The GLOBE Act counters this by outlining a vision for U.S. leadership in the protection of LGBTQI rights globally.”

    The GLOBE Act of 2025 has been endorsed by the following organizations: Council for Global Equality, Human Rights Campaign, Equality California, American Jewish World Service, Outright International, PAI, Amnesty International USA, Silver State Equality, Washington Office on Latin America (WOLA), Women’s Refugee Commission, Ipas, Foreign Policy for America, Center for Reproductive Rights, Planned Parenthood Federation of America, Reconstructionist Rabbinical Association, Rabbinical Assembly, and Human Rights First

    Robert Bank, President and CEO, American Jewish World Service, said, “As a global human rights organization rooted in Jewish values, American Jewish World Service believes that every person is created b’tzelem Elohim — in the Divine image — and equally deserving of dignity, respect and protection. Appallingly, more than 60 countries have codified anti-LGBTQI+ hate into law. The GLOBE Act however can be a powerful tool for combatting this bigotry. We applaud Congresswoman Titus for her leadership on this issue. Now, we urge Congress to pass the GLOBE Act and make preventing and responding to global LGBTQI+ discrimination and violence a foreign policy priority.”

    Keifer Buckingham, Managing Director of the Council for Global Equality, said, “At a moment when the illegal dismantling of USAID, illegal withholding of Congressionally appropriated foreign assistance, and the politically motivated restructuring of the State Department disproportionately threaten LGBTQI+ communities globally, the reintroduction of the GLOBE Act is both timely and critical,” said Council for Global Equality Managing Director Keifer Buckingham. “Genuine leadership on human rights demands accountability for those responsible for grave violations against LGBTQI+ persons, wherever these abuses occur.”

    MIL OSI USA News –

  • MIL-OSI: Ellomay Capital Reports Results for the Three Months Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    TEL-AVIV, Israel, June 30, 2025 (GLOBE NEWSWIRE) — Ellomay Capital Ltd. (NYSE American; TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe, USA and Israel, today reported its unaudited interim consolidated financial results for the three month period ended March 31, 2025.

    Financial Highlights

    • Total assets as of March 31, 2025 amounted to approximately €721.2 million, compared to total assets as of December 31, 2024 of approximately €677.3 million.
    • Revenues for the three months ended March 31, 2025 were approximately €8.9 million, compared to revenues of approximately €8.2 million for the three months ended March 31, 2024.
    • Profit for the three months ended March 31, 2025 was approximately €6.8 million, compared to loss of approximately €4.9 million for the three months ended March 31, 2024.
    • EBITDA for the three months ended March 31, 2025 was approximately €2.9 million, compared to EBITDA of approximately €1.6 million for the three months ended March 31, 2024. See below under “Use of Non-IFRS Financial Measures” for additional disclosure concerning EBITDA.

    Financial Overview for the Three Months Ended March 31, 2025

    • Revenues were approximately €8.9 million for the three months ended March 31, 2025, compared to approximately €8.2 million for the three months ended March 31, 2024. The increase in revenues mainly results from revenues generated from our 19.8 MW and 18.1 MW Italian solar facilities that were connected to the grid in February-May 2024 and in January 2025, respectively.
    • Operating expenses were approximately €4.6 million for the three months ended March 31, 2025, compared to approximately €4.6 million for the three months ended March 31, 2024. Depreciation and amortization expenses were approximately €4.2 million for the three months ended March 31, 2025, compared to approximately €4.1 million for the three months ended March 31, 2024.
    • Project development costs were approximately €1 million for the three months ended March 31, 2025, compared to approximately €1.4 million for the three months ended March 31, 2024. The decrease in project development costs is mainly due to projects that reached “ready to build” status, which results in the commencement of the capitalization of expenses related to such projects into fixed assets.
    • General and administrative expenses were approximately €1.7 million for the three months ended March 31, 2025, compared to approximately €1.6 million for the three months ended March 31, 2024.
    • The Company’s share of profits of equity accounted investee, after elimination of intercompany transactions, was approximately €1.2 million for the three months ended March 31, 2025, compared to approximately €1.3 million for the three months ended March 31, 2024.
    • Other income was approximately €0.2 million for the three months ended March 31, 2025, compared to €0 for the three months ended March 31, 2024. The income during the three months ended March 31, 2025 was recognized based on insurance compensation in connection with the fire near the Talasol and Ellomay Solar facilities in Spain in July 2024 due to loss of income in 2025.
    • Financing income, net, were approximately €7.2 million for the three months ended March 31, 2025, compared to financing expenses of approximately €3.3 million for the three months ended March 31, 2024. The change in financing expenses, net, was mainly attributable to higher income resulting from exchange rate differences that amounted to approximately €10.7 million for the three months ended March 31, 2025, compared to loss from exchange rate differences of approximately €0.6 million for the three months ended March 31, 2024, an aggregate change of approximately €11.3 million. The exchange rate differences were mainly recorded in connection with the New Israeli Shekel (“NIS”) cash and cash equivalents and the Company’s NIS denominated debentures and were caused by the 5.9% devaluation of the NIS against the euro during the three months ended March 31, 2025, compared to a revaluation of 0.8% during the three months ended March 31, 2024. The increase in financing income for the three months ended March 31, 2025 was partially offset by an increase in financing expenses of approximately €0.9 million in connection with derivatives and warrants for the three months ended March 31, 2025, compared to the three months ended March 31, 2024.
    • Tax benefit was approximately €0.9 million for the three months ended March 31, 2025, compared to tax benefit of approximately €0.8 million for the three months ended March 31, 2024.
    • Loss from discontinued operation (net of tax) was €0 for the three months ended March 31, 2025, compared to a loss from discontinued operation (net of tax) of approximately €0.3 million for the three months ended March 31, 2024.
    • Profit for the three months ended March 31, 2025 was approximately €6.8 million, compared to loss of approximately €4.9 million for the three months ended March 31, 2024.
    • Total other comprehensive loss was approximately €4.9 million for the three months ended March 31, 2025, compared to total other comprehensive income of approximately €12 million in the three months ended March 31, 2024. The change in total other comprehensive income (loss) is primarily as the result of foreign currency translation adjustments due to the change in the NIS/euro exchange rate and by changes in fair value of cash flow hedges, including a material decrease in the fair value of the liability resulting from the financial power swap that covers approximately 80% of the output of the Talasol solar plant (the “Talasol PPA”). The Talasol PPA experienced a high volatility due to the substantial change in electricity prices in Europe. In accordance with hedge accounting standards, the changes in the Talasol PPA’s fair value are recorded in the Company’s shareholders’ equity through a hedging reserve and not through the accumulated deficit/retained earnings. The changes do not impact the Company’s consolidated net profit/loss or the Company’s consolidated cash flows.
    • Total comprehensive income was approximately €1.9 million for the three months ended March 31, 2025, compared to total comprehensive income of approximately €7.1 million for the three months ended March 31, 2024.
    • EBITDA was approximately €2.9 million for the three months ended March 31, 2025, compared to approximately €1.6 million for the three months ended March 31, 2024.
    • Net cash from operating activities was approximately €0.3 million for the three months ended March 31, 2025, compared to approximately €1.2 million for the three months ended March 31, 2024.
    • On February 16, 2025, the Company issued in an Israeli public offering an aggregate principal amount of NIS 214,479,000 of newly issued Series G Debentures, due December 31, 2032. The net proceeds of the offering, net of related expenses such as consultancy fee and commissions, were approximately NIS 211.7 million (approximately €56.7 million as of the issuance date).

    CEO Review for the First Quarter of 2025

    In the first quarter, the Company’s revenues amounted to €8.9 million, an increase of approximately 9% in revenues compared to the corresponding quarter last year. These revenues do not include the Company’s share of Dorad’s revenues. The Company presented an increase of approximately 81% in EBITDA compared to the corresponding quarter last year (€2.9 million compared to €1.6 million in the corresponding quarter last year). The Company’s first quarter is a winter quarter and is characterized by low production and revenues compared to the other quarters of the year.

    In the first half of 2025, the Company recorded significant progress in the start of construction and connection to the grid of new projects, which are expected to contribute to revenue growth in the near future.

    In Italy – Financing agreements were signed for solar projects with a total capacity of 198 MW (of which 38 MW are already connected to the electricity grid), and a transaction was signed and consummated with Clal Insurance to enter as a partner (49%) in the aforementioned 198 MW. Construction work on 160 MW has begun and construction is progressing as planned. The remainder of the portfolio held by the Company (100%) is approximately 264 MW solar, of which 124 MW have received construction permits and the rest are expected to receive permits in the near future. These 264 MW are scheduled to begin construction in the last quarter of 2026.

    In the US – The Company is advancing additional solar projects with a capacity of approximately 50 MW (beyond the existing portfolio (49 MW) which has completed construction), which are expected to begin construction during 2025. The intention is that these projects will be able to enjoy the full tax benefit currently in effect. The addition of battery storage to each of the projects is also under planning.

    In the Netherlands – the Company received, after March 31, 2025, a license to increase production at the GGG facility by 64%. Licenses to increase production at the two additional facilities are in advanced stages. The new regulation for the obligation to blend green gas with fossil gas will commence according to the law in January 2027 (a delay of one year), but the targets for the first year have increased. Agreements have been signed for the sale of green certificates issued under the new regulation at a price of approximately €1 per certificate. The blending obligation is expected to significantly increase the profitability of operations in the Netherlands at current production capacity. The expected increase in production capacity from 16 million cubic meters of gas per year to around 24 million cubic meters of gas per year is expected to add significantly beyond that.

    In Israel – the Company is in negotiations with the Israeli Electricity Authority for compensation for delays and war damage to the Manara project. Ellomay Luzon (50% owned) provided a notice of exercise of its right of first refusal on the Zorlu-Phoenix transaction for the sale of Dorad’s shares. Ellomay Luzon and another shareholder exercised their right of first refusal with respect to all of the shares offered (15% of Dorad’s shares), and, subject to the timely fulfillment of the conditions to closing, Ellomay Luzon and the other shareholder are expected to share these shares in equal parts.

    In Spain – The Company’s development activity in Spain focuses on battery storage, due to the high volatility in electricity prices in Spain, which stems from an excess of renewable energy during the transition seasons and causes damage to the stability of the grid. In the Company’s assessment, the solution is a significant increase in storage capacity, which is currently at very low levels in Spain. Regulation in Spain is also starting to move in this direction.

    Use of Non-IFRS Financial Measures

    EBITDA is a non-IFRS measure and is defined as earnings before financial expenses, net, taxes, depreciation and amortization. The Company presents this measure in order to enhance the understanding of the Company’s operating performance and to enable comparability between periods. While the Company considers EBITDA to be an important measure of comparative operating performance, EBITDA should not be considered in isolation or as a substitute for net income or other statement of operations or cash flow data prepared in accordance with IFRS as a measure of profitability or liquidity. EBITDA does not take into account the Company’s commitments, including capital expenditures and restricted cash and, accordingly, is not necessarily indicative of amounts that may be available for discretionary uses. Not all companies calculate EBITDA in the same manner, and the measure as presented may not be comparable to similarly-titled measure presented by other companies. The Company’s EBITDA may not be indicative of the Company’s historic operating results; nor is it meant to be predictive of potential future results. The Company uses this measure internally as performance measure and believes that when this measure is combined with IFRS measure it add useful information concerning the Company’s operating performance. A reconciliation between results on an IFRS and non-IFRS basis is provided on page 17 of this press release.

    About Ellomay Capital Ltd.

    Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay focuses its business in the renewable energy and power sectors in Europe, USA and Israel.

    To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy, Spain, the Netherlands and Texas, USA, including:

    • Approximately 335.9 MW of operating solar power plants in Spain (including a 300 MW solar plant in owned by Talasol, which is 51% owned by the Company) and 51% of approximately 38 MW of operating solar power plants in Italy;
    • 9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plants with production capacity of approximately 850MW, representing about 6%-8% of Israel’s total current electricity consumption;
    • Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million Nm3 per year, respectively;
    • 83.333% of Ellomay Pumped Storage (2014) Ltd., which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;
    • 51% of solar projects in Italy with an aggregate capacity of 160 MW that commenced construction processes;
    • Solar projects in Italy with an aggregate capacity of 134 MW that have reached “ready to build” status; and
    • Solar projects in the Dallas Metropolitan area, Texas, USA with an aggregate capacity of approximately 27 MW that are connected to the grid and additional 22 MW that are awaiting connection to the grid.

    For more information about Ellomay, visit http://www.ellomay.com.

    Information Relating to Forward-Looking Statements

    This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company’s management. All statements, other than statements of historical facts, included in this press release regarding the Company’s plans and objectives, expectations and assumptions of management are forward-looking statements. The use of certain words, including the words “estimate,” “project,” “intend,” “expect,” “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by the Company’s forward-looking statements, including changes in electricity prices and demand, regulatory changes increases in interest rates and inflation, changes in the supply and prices of resources required for the operation of the Company’s facilities (such as waste and natural gas) and in the price of oil, the impact of the war and hostilities in Israel and Gaza and between Israel and Iran, the impact of the continued military conflict between Russia and Ukraine, technical and other disruptions in the operations or construction of the power plants owned by the Company, inability to obtain the financing required for the development and construction of projects, inability to advance the expansion of Dorad, increases in interest rates and inflation, changes in exchange rates, delays in development, construction, or commencement of operation of the projects under development, failure to obtain permits – whether within the set time frame or at all, climate change, and general market, political and economic conditions in the countries in which the Company operates, including Israel, Spain, Italy and the United States. and general market, political and economic conditions in the countries in which the Company operates, including Israel, Spain, Italy and the United States. These and other risks and uncertainties associated with the Company’s business are described in greater detail in the filings the Company makes from time to time with Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    Contact:
    Kalia Rubenbach (Weintraub)
    CFO
    Tel: +972 (3) 797-1111
    Email: hilai@ellomay.com

    Ellomay Capital Ltd. and its Subsidiaries
    Condensed Consolidated Statements of Financial Position
      March 31,   December 31,   March 31,
    2025   2024   2025
    Unaudited   Audited   Unaudited
    € in thousands
    		   Convenience Translation
    into US$ in thousands*
    Assets          
    Current assets:          
    Cash and cash equivalents 35,148   41,134   38,021
    Short term deposits 36,301   –   39,268
    Restricted cash 656   656   710
    Intangible asset from green certificates 195   178   211
    Trade and revenue receivables 5,911   5,393   6,394
    Other receivables 15,518   15,341   16,786
    Derivatives asset short-term 650   146   703
      94,379   62,848   102,093
    Non-current assets          
    Investment in equity accounted investee 40,107   41,324   43,385
    Advances on account of investments 547   547   592
    Fixed assets 487,100   482,747   526,914
    Right-of-use asset 41,276   34,315   44,650
    Restricted cash and deposits 15,569   17,052   16,842
    Deferred tax 8,525   9,039   9,222
    Long term receivables 13,882   13,411   15,017
    Derivatives 19,855   15,974   21,478
      626,861   614,409   678,100
               
    Total assets 721,240   677,257   780,193
               
    Liabilities and Equity          
    Current liabilities          
    Current maturities of long-term bank loans 20,761   21,316   22,458
    Current maturities of other long-term loans 5,866   5,866   6,345
    Current maturities of debentures 47,233   35,706   51,094
    Trade payables 9,928   8,856   10,738
    Other payables 8,913   10,896   9,642
    Current maturities of derivatives 40   1,875   43
    Current maturities of lease liabilities 733   714   793
    Warrants 1,740   1,446   1,882
      95,214   86,675   102,995
    Non-current liabilities          
    Long-term lease liabilities 32,673   25,324   35,344
    Long-term bank loans 242,177   245,866   261,972
    Other long-term loans 29,578   30,448   31,996
    Debentures 186,691   155,823   201,951
    Deferred tax 2,652   2,609   2,869
    Other long-term liabilities 950   939   1,028
    Derivatives 135   288   146
      494,856   461,297   535,306
    Total liabilities 590,070   547,972   638,301
               
    Equity          
    Share capital 25,613   25,613   27,707
    Share premium 86,275   86,271   93,327
    Treasury shares (1,736)   (1,736)   (1,878)
    Transaction reserve with non-controlling Interests 5,697   5,697   6,163
    Reserves 7,381   14,338   7,984
    Accumulated deficit (3,567)   (11,561)   (3,859)
    Total equity attributed to shareholders of the Company 119,663   118,622   129,444
    Non-Controlling Interest 11,507   10,663   12,448
    Total equity 131,170   129,285   141,892
    Total liabilities and equity 721,240   677,257   780,193

    * Convenience translation into US$ (exchange rate as at March 31, 2025: euro 1 = US$ 1.082)

                    

    Ellomay Capital Ltd. and its Subsidiaries
    Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income (Loss)
      For the three months
    ended March 31,    		 For the year
    ended
    December 31,    		   For the three
    months ended
    March 31,
      2025   2024   2024   2025
      Unaudited
    		   Audited   Unaudited
      € in thousands (except per share data)
    		   Convenience Translation into US$*
    Revenues 8,860   8,243   40,467   9,584
    Operating expenses (4,627)   (4,563)   (19,803)   (5,005)
    Depreciation and amortization expenses (4,238)   (4,055)   (15,887)   (4,584)
    Gross profit (loss) (5)   (375)   4,777   (5)
                   
    Project development costs (1,045)   (1,415)   (4,101)   (1,130)
    General and administrative expenses (1,662)   (1,620)   (6,063)   (1,798)
    Share of profits of equity accounted investee 1,189   1,286   11,062   1,286
    Other income 198   –   3,409   214
    Operating profit (loss) (1,325)   (2,124)   9,084   (1,433)
                   
    Financing income 11,483   631   2,495   12,422
    Financing income (expenses) in connection with derivatives and warrants, net (376)   536   1,140   (407)
    Financing expenses in connection with projects finance (1,375)   (1,501)   (6,190)   (1,487)
    Financing expenses in connection with debentures (1,741)   (1,711)   (6,641)   (1,883)
    Interest expenses on minority shareholder loan (476)   (554)   (2,144)   (515)
    Other financing expenses (294)   (713)   (8,311)   (318)
    Financing income (expenses), net 7,221   (3,312)   (19,651)   7,812
    Profit (loss) before taxes on income 5,896   (5,436)   (10,567)   6,379
    Tax benefit 922   828   1,424   997
    Profit (loss) from continuing operations 6,818   (4,608)   (9,143)   7,376
    Profit (loss) from discontinued operation (net of tax) –   (312)   137   –
    Profit (loss) for the period 6,818   (4,920)   (9,006)   7,376
    Profit (loss) attributable to:              
    Owners of the Company 7,994   (3,613)   (6,524)   8,647
    Non-controlling interests (1,176)   (1,307)   (2,482)   (1,271)
    Profit (loss) for the period 6,818   (4,920)   (9,006)   7,376
                   
    Other comprehensive income items              
    That after initial recognition in comprehensive income were or will be transferred to profit or loss:              
    Foreign currency translation differences for foreign operations (9,538)   1,124   8,007   (10,318)
    Foreign currency translation differences for foreign operations that were recognized in profit or loss –   –   255    
    Effective portion of change in fair value of cash flow hedges 4,264   10,461   5,631   4,613
    Net change in fair value of cash flow hedges transferred to profit or loss 337   457   (813)   365
    Total other comprehensive income (4,937)   12,042   13,080   (5,340)
                   
    Total other comprehensive income (loss) attributable to:              
    Owners of the Company (6,957)   6,656   10,039   (7,526)
    Non-controlling interests 2,020   5,386   3,041   2,186
    Total other comprehensive income (loss) (4,937)   12,042   13,080   (5,340)
    Total comprehensive income for the period 1,881   7,122   4,074   2,036
                   
    Total comprehensive income for the period attributable to:              
    Owners of the Company 1,037   3,043   3,515   1,121
    Non-controlling interests 844   4,079   559   915
    Total comprehensive income for the period 1,881   7,122   4,074   2,036
                   

    * Convenience translation into US$ (exchange rate as at March 31, 2025: euro 1 = US$ 1.082)

    Ellomay Capital Ltd. and its Subsidiaries
    Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income (Loss) (cont’d)
      For the three months
    ended March 31,    		 For the year
    ended
    December 31,    		   For the three months
    ended March 31,
    2025   2024   2024   2025
    Unaudited
    		   Audited   Unaudited
    € in thousands (except per share data)
    		   Convenience Translation into US$*
                   
    Basic profit (loss) per share 0.62   (0.28)   (0.51)   0.67
    Diluted profit (loss) per share 0.62   (0.28)   (0.51)   0.67
                   
    Basic profit (loss) per share continuing operations 0.62   (0.31)   (0.52)   0.67
    Diluted profit (loss) per share continuing operations 0.62   (0.31)   (0.52)   0.67
                   
    Basic profit (loss) per share discontinued operation –   (0.02)   0.01   –
    Diluted profit (loss) per share discontinued operation –   (0.02)   0.01   –

    * Convenience translation into US$ (exchange rate as at March 31, 2025: euro 1 = US$ 1.082)

    Ellomay Capital Ltd. and its Subsidiaries
    Condensed Consolidated Interim Statements of Changes in Equity
              Attributable to shareholders of the Company
    		   Non- controlling   Total
                                    Interests   Equity
    Share capital   Share premium   Accumulated Deficit   Treasury shares   Translation reserve from
    foreign operations    		   Hedging Reserve   Interests Transaction reserve with
    non-controlling Interests    		   Total        
    € in thousands
                                           
    For the three months                                      
    ended March 31, 2025 (unaudited):                                      
    Balance as at January 1, 2025 25,613   86,271   (11,561)   (1,736)   8,446   5,892   5,697   118,622   10,663   129,285
    Profit for the period –   –   7,994   –   –   –   –   7,994   (1,176)   6,818
    Other comprehensive income for the period –   –   –   –   (9,329)   2,372   –   (6,957)   2,020   (4,937)
    Total comprehensive income for the period –   –   7,994   –   (9,329)   2,372   –   1,037   844   1,881
    Transactions with owners of the Company, recognized directly in equity:                                      
    Share-based payments –   4   –   –   –   –   –   4   –   4
    Balance as at March 31, 2025 25,613   86,275   (3,567)   (1,736)   (883)   8,264   5,697   119,663   11,507   131,170
                                           
    For the three months                                      
    ended March 31, 2024 (unaudited):                                      
    Balance as at January 1, 2024 25,613   86,159   (5,037)   (1,736)   385   3,914   5,697   114,995   10,104   125,099
    Loss for the period –   –   (3,613)   –   –   –   –   (3,613)   (1,307)   (4,920)
    Other comprehensive income for the period –   –   –   –   1,088   5,568   –   6,656   5,386   12,042
    Total comprehensive income (loss) for the period –   –   (3,613)   –   1,088   5,568   –   3,043   4,079   7,122
    Transactions with owners of the Company, recognized directly in equity:                                      
    Share-based payments –   30   –   –   –   –   –   30   –   30
    Balance as at March 31, 2024 25,613   86,189   (8,650)   (1,736)   1,473   9,482   5,697   118,068   14,183   132,251
    Ellomay Capital Ltd. and its Subsidiaries
    Condensed Consolidated Interim Statements of Changes in Equity (cont’d)
              Attributable to shareholders of the Company
    		   Non- controlling   Total
                                    Interests   Equity
    Share capital   Share premium   Accumulated Deficit   Treasury shares   Translation reserve from
    foreign operations    		   Hedging Reserve   Interests Transaction reserve with
    non-controlling Interests    		   Total        
    € in thousands
    For the year ended                                      
    December 31, 2024 (audited):                                      
    Balance as at January 1, 2024 25,613   86,159   (5,037)   (1,736)   385   3,914   5,697   114,995   10,104   125,099
    Loss for the year –   –   (6,524)   –   –   –   –   (6,524)   (2,482)   (9,006)
    Other comprehensive income for the year –   –   –   –   8,061   1,978   –   10,039   3,041   13,080
    Total comprehensive income (loss) for the year –   –   (6,524)   –   8,061   1,978   –   3,515   559   4,074
    Transactions with owners of the Company, recognized directly in equity:                                      
    Share-based payments –   112   –   –   –   –   –   112   –   112
    Balance as at December 31, 2024 25,613   86,271   (11,561)   (1,736)   8,446   5,892   5,697   118,622   10,663   129,285
    Ellomay Capital Ltd. and its Subsidiaries
    Condensed Consolidated Interim Statements of Changes in Equity (cont’d)
              Attributable to shareholders of the Company
    		   Non- controlling
    Interests    		   Total
    Equity
                                         
    Share capital   Share premium   Accumulated Deficit   Treasury shares   Translation reserve from
    foreign operations    		   Hedging Reserve   Interests Transaction reserve with
    non-controlling Interests    		   Total        
    Convenience translation into US$ (exchange rate as at March 31, 2025: euro 1 = US$ 1.082)
    For the three months                                      
    ended March 31, 2025 (unaudited):                                      
    Balance as at January 1, 2025 27,707   93,323   (12,506)   (1,878)   9,136   6,374   6,163   128,319   11,533   139,852
    Loss for the period –   –   8,647   –   –   –   –   8,647   (1,271)   7,376
    Other comprehensive income for the period –   –   –   –   (10,092)   2,566   –   (7,526)   2,186   (5,340)
    Total comprehensive income for the period –   –   8,647   –   (10,092)   2,566   –   1,121   915   2,036
    Transactions with owners of the Company, recognized directly in equity:                                      
    Share-based payments –   4   –   –   –   –   –   4   –   4
    Balance as at March 31, 2025 27,707   93,327   (3,859)   (1,878)   (956)   8,940   6,163   129,444   12,448   141,892
    Ellomay Capital Ltd. and its Subsidiaries
    Condensed Consolidated Interim Statements of Cash Flow
      For the three months
    ended March 31,    		 For the year
    ended
    December 31,    		   For the three months
    ended March 31,
    2025   2024   2024   2025
    Unaudited
    		   Audited   Unaudited
    € in thousands
    		   Convenience
    Translation into US$*
    Cash flows from operating activities              
    Profit (loss) for the period 6,818   (4,920)   (9,006)   7,376
    Adjustments for:              
    Financing expenses (income), net (7,221)   3,167   19,247   (7,812)
    Loss from settlement of derivatives contract –   –   316   –
    Impairment losses on assets of disposal groups classified as held-for-sale –   601   405   –
    Depreciation and amortization expenses 4,238   4,084   15,935   4,584
    Share-based payment transactions 4   30   112   4
    Share of profit of equity accounted investees (1,189)   (1,286)   (11,062)   (1,286)
    Payment of interest on loan from an equity accounted investee –   –   –   –
    Change in trade receivables and other receivables   6,178   (2,342)   (8,824)   6,683
    Change in other assets (496)   –   3,770   (537)
    Change in receivables from concessions project –   315   793   –
    Change in trade payables 1,267   (68)   (31)   1,371
    Change in other payables (5,538)   2,796   4,455   (5,796)
    Tax benefit (922)   (805)   (1,429)   (997)
    Income taxes refund (paid) –   564   623   –
    Interest received 351   907   2,537   380
    Interest paid (3,408)   (1,892)   (9,873)   (3,687)
      (6,556)   6,071   16,974   (7,093)
    Net cash from operating activities 262   1,151   7,968   283
                   
    Cash flows from investing activities              
    Acquisition of fixed assets (18,550)   (9,020)   (72,922)   (20,066)
    Interest paid capitalized to fixed assets (876)   –   (2,515)   (948)
    Proceeds from sale of investments –   –   9,267   –
    Advances on account of investments –   –   (163)   –
    Proceeds from advances on account of investments –   –   514   –
    Investment in settlement of derivatives, net –   14   (316)   –
    Proceed from restricted cash, net 1,307   1,153   689   1,414
    Proceeds from investment in short-term deposits (39,132)   (28)   1,004   (42,331)
    Net cash used in investing activities (57,251)   (7,881)   (64,442)   (61,931)
                   
    Cash flows from financing activities              
    Issuance of warrants –   3,735   2,449   –
    Cost associated with long term loans (658)   (638)   (2,567)   (712)
    Payment of principal of lease liabilities (372)   (299)   (2,941)   (402)
    Proceeds from long-term loans 306   380   19,482   331
    Repayment of long-term loans (1,792)   (2,357)   (11,776)   (1,938)
    Repayment of debentures —   –   (35,845)   –
    Proceeds from issuance of debentures, net 56,729   36,450   74,159   61,366
    Net cash from financing activities 54,213   37,271   42,961   58,645
                   
    Effect of exchange rate fluctuations on cash and cash equivalents (3,210)   1,667   3,092   (3,472)
    Increase (decrease) in cash and cash equivalents (5,986)   32,208   (10,421)   (6,475)
    Cash and cash equivalents at the beginning of year 41,134   51,555   51,127   44,496
    Cash from disposal groups classified as held-for-sale –   (1,041)   428   –
    Cash and cash equivalents at the end of the period 35,148   82,722   41,134   38,021

    * Convenience translation into US$ (exchange rate as at March 31, 2025: euro 1 = US$ 1.082)

    Ellomay Capital Ltd. and its Subsidiaries
    Operating Segments
      Italy   Spain
    		   USA   Netherlands   Israel
    		   Total        
        Subsidized   28 MV                       reportable       Total
    Solar   Plants   Solar   Talasol   Solar   Biogas   Dorad   Manara   segments   Reconciliations   consolidated
    For the three months ended March 31, 2025
    € in thousands
                                               
    Revenues 945   786   406   3,246   –   3,477   15,061   –   23,921   (15,061)   8,860
    Operating expenses (435)   (105)   (84)   (1,024)   (305)   (3,206)   (11,693)   –   (16,851)   12,224   (4,627)
    Depreciation expenses (225)   (229)   (252)   (2,839)   –   (676)   (1,268)   –   (5,489)   1,251   (4,238)
    Gross profit (loss) 313   452   84   (617)   (305)   (405)   2,100   –   1,623   (1,628)   (5)
                                               
    Adjusted gross profit (loss) 313   452   84   (617)   (305)   (405)   2,100   –   1,623   (1,628)   (5)
    Project development costs                                         (1,045)
    General and administrative expenses                                         (1,662)
    Share of loss of equity accounted investee                                         1,189
    Other income, net                                         198
    Operating profit                                         (1,325)
    Financing income                                         11,483
    Financing income in connection                                          
    with derivatives and warrants, net                                         (376)
    Financing expenses in connection with projects finance                                         (1,375)
    Financing expenses in connection with debentures                                         (1,741)
    Interest expenses on minority shareholder loan                                         (476)
    Other financing expenses                                         (294)
    Financing expenses, net                                         7,221
    Loss before taxes on income                                         5,896
                                               
    Segment assets as at March 31, 2025 87,185   13,242   19,475   223,844   60,458   32,801   108,858   180,504   726,366   (5,126)   721,240  
    Ellomay Capital Ltd. and its Subsidiaries
    Reconciliation of Profit (Loss) to EBITDA
      For the three months
    ended March 31,    		 For the year
    ended
    December 31,    		   For the three months
    ended March 31,
    2025   2024   2024   2025
    € in thousands
    		   Convenience Translation
    into US$*
    Net profit (loss) for the period 6,818   (4,920)   (9,006)   7,376
    Financing expenses (income), net (7,221)   3,312   19,651   (7,812)
    Tax benefit (922)   (828)   (1,424)   (997)
    Depreciation and amortization expenses 4,238   4,055   15,887   4,584
    EBITDA 2,913   1,619   25,108   3,151

    * Convenience translation into US$ (exchange rate as at March 31, 2025: euro 1 = US$ 1.082)

    Ellomay Capital Ltd. and its Subsidiaries
    Information for the Company’s Debenture Holders

    Financial Covenants

    Pursuant to the Deeds of Trust governing the Company’s Series C, Series D, Series E, Series F and Series G Debentures (together, the “Debentures”), the Company is required to maintain certain financial covenants. For more information, see Items 4.A and 5.B of the Company’s Annual Report on Form 20-F submitted to the Securities and Exchange Commission on April 30, 2025, and below.

    Net Financial Debt

    As of March 31, 2025, the Company’s Net Financial Debt, (as such term is defined in the Deeds of Trust of the Company’s Debentures), was approximately €170 million (consisting of approximately €3031 million of short-term and long-term debt from banks and other interest bearing financial obligations, approximately €241.42 million in connection with (i) the Series C Debentures issuances (in July 2019, October 2020, February 2021 and October 2021), (ii) the Series D Convertible Debentures issuance (in February 2021), (iii) the Series E Secured Debentures issuance (in February 2023), (iv) the Series F Debentures issuance (in January, April, August and November 2024) and (v) the Series G Debentures issuance (in February 2025)), net of approximately €71.4 million of cash and cash equivalents, short-term deposits and marketable securities and net of approximately €3033 million of project finance and related hedging transactions of the Company’s subsidiaries).

    Discussion concerning Warning Signs

    Upon the issuance of the Company’s Debentures, the Company undertook to comply with the “hybrid model disclosure requirements” as determined by the Israeli Securities Authority and as described in the Israeli prospectuses published in connection with the public offering of the company’s Debentures. This model provides that in the event certain financial “warning signs” exist in the Company’s consolidated financial results or statements, and for as long as they exist, the Company will be subject to certain disclosure obligations towards the holders of the Company’s Debentures.

    One possible “warning sign” is the existence of a working capital deficiency if the Company’s Board of Directors does not determine that the working capital deficiency is not an indication of a liquidity problem. In examining the existence of warning signs as of March 31, 2025, the Company’s Board of Directors noted the working capital deficiency as of March 31, 2025, in the amount of approximately €0.96 million. The Company’s Board of Directors reviewed the Company’s financial position, outstanding debt obligations and the Company’s existing and anticipated cash resources and uses and determined that the existence of a working capital deficiency as of March 31, 2025, does not indicate a liquidity problem. In making such determination, the Company’s Board of Directors noted the following: (i) the execution of the agreement to sell tax credits in connection with the US solar projects, which is expected to contribute approximately $19 million during the next twelve months, (ii) the Company’s positive cash flow from operating activities during 2023 and 2024, and (iii) funds received from the investment transaction with Clal Insurance Company Ltd. that was consummated in June 2025.

     

    Ellomay Capital Ltd.
    Information for the Company’s Debenture Holders (cont’d)


    Information for the Company’s Series C Debenture Holders

    The Deed of Trust governing the Company’s Series C Debentures (as amended on June 6, 2022, the “Series C Deed of Trust”), includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for two consecutive quarters is a cause for immediate repayment. As of March 31, 2025, the Company was in compliance with the financial covenants set forth in the Series C Deed of Trust as follows: (i) the Company’s Adjusted Shareholders’ Equity (as defined in the Series C Deed of Trust) was approximately €116.6 million, (ii) the ratio of the Company’s Net Financial Debt (as set forth above) to the Company’s CAP, Net (defined as the Company’s Adjusted Shareholders’ Equity plus the Net Financial Debt) was 59.3%, and (iii) the ratio of the Company’s Net Financial Debt to the Company’s Adjusted EBITDA,4 was 6.3.

    The following is a reconciliation between the Company’s profit and the Adjusted EBITDA (as defined in the Series C Deed of Trust) for the four-quarter period ended March 31, 2025:

        For the four-quarter period
    ended M    arch 31, 2025
      Unaudited
      € in thousands
    Profit for the period   2,274
    Financing expenses, net   9,118
    Taxes on income   (1,641)
    Depreciation and amortization expenses   16,651
    Share-based payments   86
    Adjustment to revenues of the Talmei Yosef PV Plant due to calculation based on the fixed asset model   484
    Adjusted EBITDA as defined the Series C Deed of Trust   26,972

    The Series C Debentures were fully repaid on June 30, 2025 in accordance with their terms. 

    Ellomay Capital Ltd.
    Information for the Company’s Debenture Holders (cont’d)

    Information for the Company’s Series D Debenture Holders

    The Deed of Trust governing the Company’s Series D Debentures includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for the periods set forth in the Series D Deed of Trust is a cause for immediate repayment. As of March 31, 2025, the Company was in compliance with the financial covenants set forth in the Series D Deed of Trust as follows: (i) the Company’s Adjusted Shareholders’ Equity (as defined in the Series D Deed of Trust) was approximately €116.6 million, (ii) the ratio of the Company’s Net Financial Debt (as set forth above) to the Company’s CAP, Net (defined as the Company’s Adjusted Shareholders’ Equity plus the Net Financial Debt) was 59.3%, and (iii) the ratio of the Company’s Net Financial Debt to the Company’s Adjusted EBITDA5 was 6.1.

    The following is a reconciliation between the Company’s profit and the Adjusted EBITDA (as defined in the Series D Deed of Trust) for the four-quarter period ended March 31, 2025:

        For the four-quarter period
    ended M    arch 31, 2025
      Unaudited
      € in thousands
    Loss for the period   2,274
    Financing expenses, net   9,118
    Taxes on income   (1,641)
    Depreciation and amortization expenses   16,651
    Share-based payments   86
    Adjustment to revenues of the Talmei Yosef PV Plant due to calculation based on the fixed asset model   484
    Adjustment to data relating to projects with a Commercial Operation Date during the four preceding quarters6   899
    Adjusted EBITDA as defined the Series D Deed of Trust   27,871
    Ellomay Capital Ltd.
    Information for the Company’s Debenture Holders (cont’d)


    Information for the Company’s Series E Debenture Holders

    The Deed of Trust governing the Company’s Series E Debentures includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for the periods set forth in the Series E Deed of Trust is a cause for immediate repayment. As of March 31, 2025, the Company was in compliance with the financial covenants set forth in the Series E Deed of Trust as follows: (i) the Company’s Adjusted Shareholders’ Equity (as defined in the Series E Deed of Trust) was approximately €116.6 million, (ii) the ratio of the Company’s Net Financial Debt (as set forth above) to the Company’s CAP, Net (defined as the Company’s Adjusted Shareholders’ Equity plus the Net Financial Debt) was 59.3%, and (iii) the ratio of the Company’s Net Financial Debt to the Company’s Adjusted EBITDA7 was 6.1.

    The following is a reconciliation between the Company’s profit and the Adjusted EBITDA (as defined in the Series E Deed of Trust) for the four-quarter period ended March 31, 2025:

        For the four-quarter period
    ended March 31, 2025
      Unaudited
      € in thousands
    Profit for the period   2,274
    Financing expenses, net   9,118
    Taxes on income   (1,641)
    Depreciation and amortization expenses   16,651
    Share-based payments   86
    Adjustment to revenues of the Talmei Yosef PV Plant due to calculation based on the fixed asset model   484
    Adjustment to data relating to projects with a Commercial Operation Date during the four preceding quarters8   899
    Adjusted EBITDA as defined the Series E Deed of Trust   27,871
         

    In connection with the undertaking included in Section 3.17.2 of Annex 6 of the Series E Deed of Trust, no circumstances occurred during the reporting period under which the rights to loans provided to Ellomay Luzon Energy Infrastructures Ltd. (formerly U. Dori Energy Infrastructures Ltd. (“Ellomay Luzon Energy”)), which were pledged to the holders of the Company’s Series E Debentures, will become subordinate to the amounts owed by Ellomay Luzon Energy to Israel Discount Bank Ltd.

    As of March 31, 2025, the value of the assets pledged to the holders of the Series E Debentures in the Company’s books (unaudited) is approximately €40.1 million (approximately NIS 161.3 million based on the exchange rate as of such date).

    Ellomay Capital Ltd. and its Subsidiaries
    Information for the Company’s Debenture Holders (cont’d)

    Information for the Company’s Series F Debenture Holders

    The Deed of Trust governing the Company’s Series F Debentures includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for the periods set forth in the Series F Deed of Trust is a cause for immediate repayment. As of March 31, 2025, the Company was in compliance with the financial covenants set forth in the Series F Deed of Trust as follows: (i) the Company’s Adjusted Shareholders’ Equity (as defined in the Series F Deed of Trust) was approximately €115.9 million, (ii) the ratio of the Company’s Net Financial Debt (as set forth above) to the Company’s CAP, Net (defined as the Company’s Adjusted Shareholders’ Equity plus the Net Financial Debt) was 59.4%, and (iii) the ratio of the Company’s Net Financial Debt to the Company’s Adjusted EBITDA9 was 6.1.

    The following is a reconciliation between the Company’s profit and the Adjusted EBITDA (as defined in the Series F Deed of Trust) for the four-quarter period ended March 31, 2025:

        For the four-quarter period
    ended March 31, 2025
      Unaudited
      € in thousands
    Profit for the period   2,274
    Financing expenses, net   9,118
    Taxes on income   (1,641)
    Depreciation and amortization expenses   16,651
    Share-based payments   86
    Adjustment to revenues of the Talmei Yosef PV Plant due to calculation based on the fixed asset model   484
    Adjustment to data relating to projects with a Commercial Operation Date during the four preceding quarters10   899
    Adjusted EBITDA as defined the Series F Deed of Trust   27,871
         
    Ellomay Capital Ltd. and its Subsidiaries
    Information for the Company’s Debenture Holders (cont’d)


    Information for the Company’s Series G Debenture Holders

    The Deed of Trust governing the Company’s Series G Debentures includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for the periods set forth in the Series G Deed of Trust is a cause for immediate repayment. As of March 31, 2025, the Company was in compliance with the financial covenants set forth in the Series G Deed of Trust as follows: (i) the Company’s Adjusted Shareholders’ Equity (as defined in the Series G Deed of Trust) was approximately €115.9 million, (ii) the ratio of the Company’s Net Financial Debt (as set forth above) to the Company’s CAP, Net (defined as the Company’s Adjusted Shareholders’ Equity plus the Net Financial Debt) was 59.4%, and (iii) the ratio of the Company’s Net Financial Debt to the Company’s Adjusted EBITDA11 was 6.1.

    The following is a reconciliation between the Company’s profit and the Adjusted EBITDA (as defined in the Series G Deed of Trust) for the four-quarter period ended March 31, 2025:

        For the four-quarter period ended March 31, 2025
      Unaudited
      € in thousands
    Profit for the period   2,274
    Financing expenses, net   9,118
    Taxes on income   (1,641)
    Depreciation and amortization expenses   16,651
    Share-based payments   86
    Adjustment to revenues of the Talmei Yosef PV Plant due to calculation based on the fixed asset model   484
    Adjustment to data relating to projects with a Commercial Operation Date during the four preceding quarters12   899
    Adjusted EBITDA as defined the Series G Deed of Trust   27,871
         

    ____________________________
    1 The amount of short-term and long-term debt from banks and other interest-bearing financial obligations provided above, includes an amount of approximately €4.5 million costs associated with such debt, which was capitalized and therefore offset from the debt amount that is recorded in the Company’s balance sheet.

    2 The amount of the debentures provided above includes an amount of approximately €6.7 million associated costs, which was capitalized and discount or premium and therefore offset from the debentures amount that is recorded in the Company’s balance sheet. This amount also includes the accrued interest as at March 31, 2025 in the amount of approximately €0.8 million.

    3 The project finance amount deducted from the calculation of Net Financial Debt includes project finance obtained from various sources, including financing entities and the minority shareholders in project companies held by the Company (provided in the form of shareholders’ loans to the project companies).

    4 The term “Adjusted EBITDA” is defined in the Series C Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company’s operations, such as the Talmei Yosef solar plant, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments. The Series C Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company’s undertakings towards the holders of its Series C Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under “Use of NON-IFRS Financial Measures.”

    5 The term “Adjusted EBITDA” is defined in the Series D Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company’s operations, such as the Talmei Yosef PV Plant, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments, when the data of assets or projects whose Commercial Operation Date (as such term is defined in the Series D Deed of Trust) occurred in the four quarters that preceded the relevant date will be calculated based on Annual Gross Up (as such term is defined in the Series D Deed of Trust). The Series D Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company’s undertakings towards the holders of its Series D Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under “Use of NON-IFRS Financial Measures.”

    6 The adjustment is based on the results of solar plants in Italy that were connected to the grid and commenced delivery of electricity to the grid during the year ended December 31, 2024 (two plants) and the three months ended March 31, 2025 (one plant). The Company recorded revenues and only direct expenses in connection with these solar plants from the connection to the grid and until PAC (Preliminary Acceptance Certificate – reached with respect to two of the three plants during the fourth quarter of 2024). However, for the sake of caution, the Company included the expected fixed expenses in connection with these solar plants in the calculation of the adjustment.

    7 The term “Adjusted EBITDA” is defined in the Series E Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company’s operations, such as the Talmei Yosef PV Plant, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments, when the data of assets or projects whose Commercial Operation Date (as such term is defined in the Series E Deed of Trust) occurred in the four quarters that preceded the relevant date will be calculated based on Annual Gross Up (as such term is defined in the Series E Deed of Trust). The Series E Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company’s undertakings towards the holders of its Series E Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under “Use of NON-IFRS Financial Measures.”

    8 The adjustment is based on the results of solar plants in Italy that were connected to the grid and commenced delivery of electricity to the grid during the year ended December 31, 2024 (two plants) and the three months ended March 31, 2025 (one plant). The Company recorded revenues and only direct expenses in connection with these solar plants from the connection to the grid and until PAC (Preliminary Acceptance Certificate – reached with respect to two of the three plants during the fourth quarter of 2024). However, for the sake of caution, the Company included the expected fixed expenses in connection with these solar plants in the calculation of the adjustment.

    9 The term “Adjusted EBITDA” is defined in the Series F Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company’s operations, such as the Talmei Yosef PV Plant, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments, when the data of assets or projects whose Commercial Operation Date (as such term is defined in the Series F Deed of Trust) occurred in the four quarters that preceded the relevant date will be calculated based on Annual Gross Up (as such term is defined in the Series F Deed of Trust). The Series F Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company’s undertakings towards the holders of its Series F Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under “Use of Non-IFRS Financial Measures.”

    10 The adjustment is based on the results of solar plants in Italy that were connected to the grid and commenced delivery of electricity to the grid during the year ended December 31, 2024 (two plants) and the three months ended March 31, 2025 (one plant). The Company recorded revenues and only direct expenses in connection with these solar plants from the connection to the grid and until PAC (Preliminary Acceptance Certificate – reached with respect to two of the three plants during the fourth quarter of 2024). However, for the sake of caution, the Company included the expected fixed expenses in connection with these solar plants in the calculation of the adjustment.

    11 The term “Adjusted EBITDA” is defined in the Series G Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company’s operations, such as the Talmei Yosef PV Plant, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments, when the data of assets or projects whose Commercial Operation Date (as such term is defined in the Series G Deed of Trust) occurred in the four quarters that preceded the relevant date will be calculated based on Annual Gross Up (as such term is defined in the Series G Deed of Trust). The Series G Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company’s undertakings towards the holders of its Series G Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under “Use of Non-IFRS Financial Measures.”

    12 The adjustment is based on the results of solar plants in Italy that were connected to the grid and commenced delivery of electricity to the grid during the year ended December 31, 2024 (two plants) and the three months ended March 31, 2025 (one plant). The Company recorded revenues and only direct expenses in connection with these solar plants from the connection to the grid and until PAC (Preliminary Acceptance Certificate – reached with respect to two of the three plants during the fourth quarter of 2024). However, for the sake of caution, the Company included the expected fixed expenses in connection with these solar plants in the calculation of the adjustment.

    The MIL Network –

  • MIL-OSI Africa: CORRECTION: African Development Bank, Asian Infrastructure Investment Bank (AIIB) sign Memorandum of Understanding (MOU) renewing their collaboration on sustainable economic development for Africa

    The African Development Bank (www.AfDB.org) and the Asian Infrastructure Investment Bank (AIIB) have signed an agreement strengthening their collaboration on sustainable economic development, designed to boost infrastructure development and economic opportunities across the African continent.

    The Memorandum of Understanding, which builds on an earlier one in 2018, was signed by African Development Bank president, Dr. Akinwumi Adesina, and AIIB President and Chair of the Board of Directors Jin Liqun on Saturday 28 June. The signing took place on the sidelines of a meeting of Heads of Multilateral Development Banks held in Paris, France, the same day.

    The agreement outlines continued collaboration from both parties in six priority areas, aligned with the Bank Group’s Ten-Year Strategy 2024–2033 as well as AIIB’s Corporate Strategy and its Strategy on Financing Operations in Non-Regional Members. The areas are:

    (i) Green infrastructure

    (ii) Industrialization

    (iii) Private capital mobilization including Public – Private Partnerships

    (iv) Cross-border-connectivity

    (v) Digitalization; and

    (vi) Policy-based financing

    The MOU will promote among other things, co-financing, co-guaranteeing and other forms of joint participation in financial assistance for development projects primarily in sustainable infrastructure. The African Development Bank and AIIB’s existing cooperation in this area, includes providing guarantees to support the issuance of Egypt’s first Sustainable Panda Bond in 2023, valued at RMB 3.5 billion.

    This historic issuance—backed by guarantees from both AfDB and AIIB—marked the first African sovereign bond placed in the Chinese interbank bond market. The guarantees provided by the two triple-A-rated multilateral banks were instrumental in de-risking the transaction, enabling Egypt to secure competitive terms and attract investor confidence.

    “This partnership continues to be an effective pathway to provide economic development for our member countries, especially in infrastructure. By reaffirming today, we are boosting energy access by accelerating Mission 300 which is targeting to connect 300 million people to electricity by 2030,” Dr Adesina said.

    Mr. Jin Liqun remarked: “The renewal of our partnership with the African Development Bank reflects AIIB’s commitment to supporting sustainable development beyond Asia. Through this collaboration, we can leverage our combined expertise to deliver transformative projects that will benefit millions across the continent and create prosperity through quality infrastructure investment.”

    Distributed by APO Group on behalf of African Development Bank Group (AfDB).

    Editor’s note:
    This press release is re-issued to correct an error in the number of members AIIB has worldwide. An earlier version issued today 30 June, incorrectly stated that it has 84 members, instead of 110.

    Contact:
    Amba Mpoke-Bigg
    Communication and External Relations Department
    Email: media@afdb.org

    About the Asian Infrastructure Investment Bank (AIIB):
    The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “infrastructure for tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 110 approved members worldwide, is capitalized at USD100 billion and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.

    About the African Development Bank Group:
    The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org

    MIL OSI Africa –

  • MIL-OSI: Bank OZK Announces Date for Second Quarter 2025 Earnings Release and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    LITTLE ROCK, Ark., June 30, 2025 (GLOBE NEWSWIRE) — Bank OZK (the “Bank”) (Nasdaq: OZK) expects to report its second quarter 2025 earnings after the market closes on Thursday, July 17, 2025. Management’s comments on the second quarter of 2025 will be released simultaneously with the earnings press release and financial supplement which will be available on the Bank’s investor relations website.   

    Management will conduct a conference call to take questions at 7:30 a.m. CT (8:30 a.m. ET) on Friday, July 18, 2025. Interested parties may access the conference call live via webcast on the Bank’s investor relations website, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank’s website for at least 30 days.

    GENERAL INFORMATION
    Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in over 250 offices in nine states including Arkansas, Georgia, Florida, North Carolina, Texas, Tennessee, New York, California and Mississippi and had $39.2 billion in total assets as of March 31, 2025. For more information, visit ozk.com.

       
       
       
    Investor Relations Contact: Jay Staley (501) 906-7842
       
       
       
    Media Contact: Michelle Rossow (501) 906-3922
       
       
       

    The MIL Network –

  • MIL-OSI: CNB Financial Corporation and ESSA Bancorp, Inc. Receive Bank Regulatory Approvals for Merger

    Source: GlobeNewswire (MIL-OSI)

    CLEARFIELD, Pa. and STROUDSBURG, Pa., June 30, 2025 (GLOBE NEWSWIRE) — CNB Financial Corporation (“CNB”) (NASDAQ: CCNE) and ESSA Bancorp Inc. (“ESSA”) (NASDAQ: ESSA) are pleased to announce that they have received the necessary bank regulatory approvals to complete the proposed merger (the “Merger”) of ESSA with and into CNB and ESSA Bank & Trust (“ESSA Bank”) with and into CNB Bank (“CNB Bank”). The Federal Deposit Insurance Corporation and the Pennsylvania Department of Banking and Securities approved the merger of ESSA Bank with and into CNB Bank, and CNB received a waiver from the Federal Reserve Bank of Philadelphia for any application with respect to the merger of ESSA with and into CNB.

    “We are pleased to have received the required bank regulatory approvals or waivers to move forward with the Merger,” said Michael D. Peduzzi, President and Chief Executive Officer of CNB. “This marks an exciting milestone as we bring together two strong institutions with shared values and a commitment to client-focused services and great experiences for all of our stakeholders. We look forward to welcoming ESSA customers, employees, and shareholders to CNB. Together, we will expand our reach, enhance our capabilities and efficiencies, and better meet the needs of the communities we serve.”

    “We are excited to move ahead with our proposed merger with CNB,” commented Gary Olson, President and Chief Executive Officer of ESSA and ESSA Bank. He added, “Joining the CNB family will benefit our customers and communities as they will continue to be served by a combined organization that upholds our shared culture and values, maintains our relationship-focused approach, and offers an elevated suite of financial products and services.”

    On January 9, 2025, CNB, CNB Bank, ESSA and ESSA Bank entered into an Agreement and Plan of Merger pursuant to which ESSA will merge with and into CNB in an all-stock transaction, and immediately after, ESSA Bank will merge with and into CNB Bank. The Merger is expected to close on July 23, 2025, pending customary closing conditions.

    About CNB Financial Corporation

    CNB Financial Corporation is a financial holding company with consolidated assets of approximately $6.3 billion. CNB Financial Corporation conducts business primarily through its principal subsidiary, CNB Bank. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division, one loan production office, one drive-up office, one mobile office, and 55 full-service offices in Pennsylvania, Ohio, New York, and Virginia. CNB Bank, headquartered in Clearfield, Pennsylvania, with offices in Central and North Central Pennsylvania, serves as the multi-brand parent to various divisions. These divisions include ERIEBANK, based in Erie, Pennsylvania, with offices in Northwest Pennsylvania and Northeast Ohio; FCBank, based in Worthington, Ohio, with offices in Central Ohio; BankOnBuffalo, based in Buffalo, New York, with offices in Western New York; Ridge View Bank, based in Roanoke, Virginia, with offices in the Southwest Virginia region; and Impressia Bank, a division focused on banking opportunities for women, which operates in CNB Bank’s primary market areas. Additional information about CNB Financial Corporation may be found at www.CNBBank.bank.

    About ESSA Bancorp, Inc.

    ESSA Bancorp, Inc. is the holding company for its wholly owned subsidiary, ESSA Bank & Trust, which was formed in 1916. The company has total assets of $2.2 billion. Headquartered in Stroudsburg, Pennsylvania, the company has two regional offices in Allentown and Radnor, and operates 19 community offices throughout the greater Pocono, Lehigh Valley, Scranton/Wilkes-Barre, and suburban Philadelphia areas. ESSA Bank & Trust offers a full range of commercial and retail financial services, asset management and trust services, investment services through Ameriprise Financial Institutions Group and insurance benefit services through ESSA Advisory Services, LLC. ESSA Bancorp Inc. stock trades on the NASDAQ Global Market (SM) under the symbol “ESSA”.

    Forward-Looking Statements

    This communication contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements about CNB  and ESSA and their industry involve substantial risks and uncertainties. Statements other than statements of current or historical fact, including statements regarding CNB’s or ESSA’s future financial condition, results of operations, business plans, liquidity, cash flows, projected costs, and the impact of any laws or regulations applicable to CNB or ESSA, are forward-looking statements. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should” and other similar expressions are intended to identify these forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results.

    Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: (i) CNB’s and ESSA’s ability to complete the proposed merger on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to satisfaction of other closing conditions to consummate the proposed merger; (ii) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement relating to the proposed merger; (iii) risks related to diverting the attention of management from ongoing business operations; (iv) failure to realize the expected benefits of the proposed merger; (v) significant transaction costs and/or unknown or inestimable liabilities; (vi) the risk of shareholder litigation in connection with the proposed merger, including resulting expense or delay; (vii) the risk that ESSA’s business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; (viii) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance and results of the combined company following completion of the proposed merger; (ix) the effect of the announcement of the proposed merger on the ability of CNB and ESSA to operate their respective businesses and retain and hire key personnel and to maintain favorable business relationships; (x) risks related to the market value of the CNB common stock to be issued in the proposed merger; (xi) other risks related to the completion of the proposed merger and actions related thereto; (xii) the dilution caused by CNB’s issuance of additional shares of its capital stock in connection with the proposed merger; (xiii) national, international, regional and local economic and political climates and conditions; (xiv) changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; and (xv) legislative and regulatory changes. Further information about these and other relevant risks and uncertainties may be found in CNB’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, in ESSA’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and in subsequent filings CNB and ESSA make with the Securities and Exchange Commission (“SEC”).

    Forward-looking statements speak only as of the date they are made. CNB and ESSA do not undertake, and specifically disclaim any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. You are cautioned not to place undue reliance on these forward-looking statements.

    The MIL Network –

  • MIL-OSI: SB Financial Group Joins Russell 3000 Index

    Source: GlobeNewswire (MIL-OSI)

    DEFIANCE, Ohio, June 30, 2025 (GLOBE NEWSWIRE) — SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services, today announced that it has been named to the Russell 3000® and Russell 2000® indices.

    The annual reconstitution of the Russell US indices captures the 4,000 largest US stocks as of April 30, ranking them by total market capitalization. Membership in the Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indices. FTSE Russell determines membership for its Russell indices primarily by objective, market-capitalization rankings and style attributes.

    “We are honored to be included in the Russell 3000 Index, a milestone that reflects the market’s recognition of the strength of our financial performance, the resilience of our business model, and the trust placed in us by our clients and shareholders,” said Mark A. Klein, Chairman, President and CEO of SB Financial Group. “This inclusion broadens our visibility within the investment community and underscores our continued progress in delivering consistent financial results and long-term value. As we move forward, we remain focused on disciplined growth and serving the evolving needs of the communities and clients we support.”

    About SB Financial Group, Inc.

    Headquartered in Defiance, Ohio, SB Financial Group is a diversified financial services holding company for The State Bank and Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 26 offices: 24 in ten Ohio counties and two in Northeast, Indiana, and 26 ATMs. State Bank has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SB Financial Group’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

    About FTSE Russell, an LSEG Business

    FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally. FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $18.1 trillion is benchmarked to FTSE Russell indexes. Leading asset owners, asset managers, ETF providers and investment banks choose FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives. A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering. 

    FTSE Russell is wholly owned by London Stock Exchange Group. 

    For more information, visit FTSE Russell.

    Forward-Looking Statements

    Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

    Investor Contact Information:

    Mark A. Klein
    Chairman, President and
    Chief Executive Officer
    Mark.Klein@YourStateBank.com

    Anthony V. Cosentino
    Executive Vice President and
    Chief Financial Officer
    Tony.Cosentino@YourStateBank.com

    The MIL Network –

  • MIL-OSI Economics: Members explore technology transfer case studies, patent information, trade-related IP data

    Source: WTO

    Headline: Members explore technology transfer case studies, patent information, trade-related IP data

    Discussions at the meeting saw a high level of engagement by delegations. Members highlighted how voluntary technology transfer to developing economies can boost innovation, productivity and development, drawing on sectoral case studies. They also focused on better harnessing information from expired patents and underlined the importance of systematic, transparent reporting on global IP trade flows.
    A paper entitled “Intellectual Property and Innovation: Technology Transfer case studies” was submitted by Australia, Canada, the European Union, Israel, Japan, the Republic of Korea, New Zealand, Singapore, Switzerland, Chinese Taipei, the United Kingdom and the United States.
    The paper highlights how technology enhances productivity, competitiveness, growth and development, motivating countries to foster an environment that attracts voluntary technology transfer and innovation. The paper invites members to submit case studies on voluntary transfers of patent-protected or trade secret technologies and highlights the importance of domestic policies and capacity-building. The aim of the paper is to inform TRIPS Council discussions on incentivizing mutually beneficial technology transfer to address global challenges.
    The paper indicates that practical examples are useful in illustrating how technology transfer occurs across sectors such as agriculture, sustainability and manufacturing. IP offices and WIPO GREEN,  an online platform for technology exchange, provide case studies and opportunities to promote green technology exchange. TRIPS Article 66.2 on technology transfer details incentives for transfer to least-developed countries (LDCs). In public health, the Medicines Patent Pool (MPP) enables voluntary sublicensing of patented treatments, increasing access to lifesaving medicines and supporting local production.
    Colombia submitted a communication titled “After-life of patents” proposing joint efforts ahead of the 14th WTO Ministerial Conference (MC14), to be held in Cameroon in March 2026, to explore better use of patent information, potentially expanding the discussion to copyrighted works. The proposal envisions a cooperative WTO approach, without affecting debates on the need for balance in IP protection. Colombia said it is considering an MC14 decision where members would agree to make patent disclosures publicly accessible, promote good practices for their use, permit artificial intelligence (AI) training on such data, and establish a global, publicly accessible repository for such information. 
    Colombia submitted a second paper for discussion: “Trade-Related Figures of Intellectual Property at the WTO: The Case of IP Royalties at the Global Level”. The paper argues that since the TRIPS Agreement’s adoption in 1995, WTO members have applied common IP standards yet little focus has been placed on trade-related IP metrics. Unlike goods and services, IP trade flows – such as royalty payments – receive limited, inconsistent attention in WTO data. Occasional studies exist but lack regularity. However, reliable data is available through IMF and World Bank sources, which track cross-border royalty payments in national balance of payments statistics, offering an important resource for understanding global IP trade dynamics.
    The paper suggests the WTO should implement systematic, detailed reporting on IP-related financial flows, integrating this data into TRIPS Council updates, Trade Policy Reviews and WTO databases. Disaggregated by IP category, such data would support informed policy decisions and foster balanced, evidence-based debate on the global IP regime.
    Notifications
    Members were updated on notifications under various provisions of the TRIPS Agreement that the Council has received since its last meeting in March.
    The Chair of the Council, Emmanuelle Ivanov-Durand of France, said that the pace of notifications to the Council has increased in recent years, but they are still not keeping up with the actual development of laws and regulations relating to TRIPS. She emphasized that TRIPS Article 63.2 is not a “one-off” requirement but a core element of TRIPS transparency and a central part of the Council’s work. It obliges members to notify new or amended laws on TRIPS, including those recently adopted to address the COVID-19 pandemic.
    This requirement includes the notification of legislative changes to implement the special compulsory licensing system to export medicines covered by TRIPS Article 31bis. The notification of relevant laws and regulations can assist members in preparing for the potential use of the system. It would also help the WTO Secretariat in its efforts to provide informed technical support to members.   
    The Chair recalled that the e-TRIPS Submission System is available for members to easily notify their laws and to make other required submissions to the TRIPS Council. The platform also permits digital access, consultation and analysis of information through the e-TRIPS Gateway, an easy-to-use interface to search and display information related to the TRIPS Council.
    Members agreed to test the e-Agenda tool at the next TRIPS Council meeting on a trial, non-committal basis. Developed by the Secretariat and already in use across over 20 WTO bodies, the e-Agenda enhances transparency, organization and access to meeting documents and statements. The Chair stressed that implementation costs would be minimal, with a tailored prototype and training available. The trial aims to assess the practical value of the tool without altering established procedures.
    Non-violation and situation complaints
    Members repeated their well-known positions on the issue of non-violation and situation complaints (NVSCs) under the TRIPS Agreement. With less than a year to go to the 14th WTO Ministerial Conference (MC14), the Chair reminded members that it is a ministerial mandate for the Council to examine the scope and modalities for NVSCs, and that members should make serious efforts to do so.
    The Chair noted that members have not displayed much appetite for advancing substantive discussions in this area. If this situation persists in the coming months, it is difficult to foresee any outcome in this area at MC14 other than an extension of the moratorium or its expiry, she noted. She suggested that if discussion on this matter is going to be limited to choosing between these two options, members could decide in Geneva ahead of MC14.
    At the 13th Ministerial Conference (MC13) in Abu Dhabi in 2024, ministers adopted a Decision on TRIPS Non-Violation and Situation Complaints, instructing the TRIPS Council to continue reviewing the issue and submit recommendations to MC14. Until then, members agreed not to initiate such complaints under the TRIPS Agreement.
    The Decision on TRIPS Non-Violation and Situation Complaints concerns whether and how WTO members can bring disputes to the WTO alleging that an action or situation has nullified expected benefits under the TRIPS Agreement, even without a specific violation.
    Other issues
    WTO members continued talks on how to proceed on the long overdue review of the implementation of the TRIPS Agreement. Under Article 71.1, the TRIPS Council is required to conduct a review of the implementation of the Agreement after two years and at periodic intervals thereafter. However, the initial review in 1999 was never completed and no review has subsequently been initiated.
    The Chair recalled that members were able to propose last year a process for the first review, which ultimately could not be adopted. After holding informal consultations in May with the most active member on this issue to find a way forward, the Chair has concluded that the concerns that prevented the adoption of the proposal remain.
    Ms Ivanov-Durand noted that the mandate set out in TRIPS Article 71.1 is highly significant and encouraged delegations to keep working towards the initiation of the implementation review. A number of delegations expressed their willingness to continue discussions on this issue. The Chair expressed her availability to conduct further informal consultations once there is greater likelihood of members agreeing on how to make substantial progress.
    The Council did not agree on renewing the invitation to the European Free Trade Association (EFTA) to participate in the TRIPS Council as ad hoc observer. This invitation had been renewed on a meeting-to-meeting basis since 2012. A number of members said that the current list of observers is not balanced and asked the Council to reassess the situation with regards other international intergovernmental organizations whose requests have been pending for years. It was suggested that the Chair could address this issue in the technical meetings she is planning with members.
    The updated list of pending requests for observer status in the TRIPS Council by intergovernmental organizations is contained in document IP/C/W/52/Rev.14.
    The Chair said that there have been no new acceptances of the protocol amending the TRIPS Agreement since the last Council meeting. This means that, to date, the amended TRIPS Agreement applies to 141 members. Twenty-five members have yet to accept the Protocol. The current period for accepting the protocol runs until 31 December 2025.  
    Next meeting
    The next regular meeting of the TRIPS Council is scheduled for 10-11 November 2025.

    Share

    MIL OSI Economics –

  • MIL-OSI Economics: Christine Lagarde, Philip R. Lane: Opening remarks on the ECB strategy assessment press conference

    Source: European Central Bank

    Christine Lagarde, President of the ECB,
    Philip R. Lane, Member of the Executive Board of the ECB

    Sintra, 30 June 2025

    Good afternoon, ECB Chief Economist Philip Lane and I welcome you to this press conference, on the occasion of the conclusion of the 2025 assessment of our monetary policy strategy.

    The Governing Council recently agreed on an updated monetary policy strategy statement. You can find this statement on our website, together with an explanatory overview note and the two occasional papers presenting the underlying analyses.

    I will start by putting this strategy assessment into the broader context. Philip Lane will then go through the updated strategy statement and explain what has changed and why, as well as what has remained unchanged.

    Following the strategy review we carried out in 2020-21, the Governing Council committed to “assess periodically the appropriateness of its monetary policy strategy, with the next assessment expected in 2025”. Such regular assessments ensure that our framework, toolkit and approach remain fit for purpose in a changing world.

    And the world has changed significantly over the last four years. Some of the issues we were most concerned about back in 2021 – including inflation being too low for too long – have taken a rather different turn.

    Not only did we see inflation surge, but some fundamental structural features of our economy and the inflation environment are changing: geopolitics, digitalisation, the increasing use of artificial intelligence, demographics, the threat to environmental sustainability and the evolution of the international financial system.

    All of those suggest that the environment in which we operate will remain highly uncertain and potentially more volatile. This will make it more challenging to conduct our monetary policy and fulfil our mandate to keep prices stable.

    During the strategy assessment, we asked: what do these changes mean for the way we assess the economy, conduct our policy, use our toolkit, take our decisions and communicate them? In seeking to answer this question, our mindset was forward-looking.

    On the whole, we concluded that our monetary policy strategy remains well suited to addressing the challenges that lie ahead.

    But our strategy also needs to be updated and adjusted in certain areas, so that the ECB can remain fit for purpose in the years to come. The next assessment is expected in 2030.

    With our updated strategy statement, we are taking a comprehensive perspective on the challenges facing our monetary policy, so that the ECB can remain an anchor of stability in this more uncertain world.

    This is our core message to the euro area citizens we serve: the new environment gives many reasons to worry, but one thing they do not need to worry about is our commitment to price stability.

    The ECB is committed to its mandate and will keep itself and its tools updated to be able to respond to new challenges.

    Let me conclude by thanking, on behalf of the Governing Council, all the colleagues across the Eurosystem who have contributed to this assessment in a great team effort.

    I now hand over to our Chief Economist Philip Lane and, following his remarks, we will be ready to take your questions.

    MIL OSI Economics –

  • MIL-OSI Economics: Christine Lagarde: Strategy assessment: lessons learned

    Source: European Central Bank

    Introductory speech by Christine Lagarde, President of the ECB, at the opening reception of the ECB Forum on Central Banking 2025 “Adapting to change: macroeconomic shifts and policy responses”

    Sintra, 30 June 2025

    As Nietzsche once observed, “it is our future that lays down the law of our today.”

    When we last reviewed our strategy four years ago, our thinking was shaped – quite naturally – by the recent past: a decade of too-low inflation, compounded by the pandemic.

    But as Nietzsche warned, there is a danger in letting the past dominate our thinking. Sometimes, it is the future – still dimly understood – that is already shaping our present.

    And soon after that review, the world changed in ways we had not foreseen.

    The reopening of our economies after the pandemic brought about major sectoral shifts. Russia’s invasion of Ukraine triggered a fundamental shift in energy markets.

    The geopolitical landscape was upended, reshaping global trade. And structural changes in labour markets became increasingly apparent – driven by demographics, technological transformation, and evolving worker preferences.

    Given all these developments, the fundamentals of our strategy have held up well – as they should, because a sound strategy must be robust to a changing environment.

    Our symmetric 2% inflation target has proven effective in anchoring expectations – even through some of the most severe and persistent shocks in recent economic history.

    And our medium-term orientation has provided essential flexibility to absorb an extremely large shock – helping to reduce the overall cost of disinflation to the economy, while still enabling a timely return of inflation to target.

    We therefore saw no need to revisit these core pillars – which is why we refer to the exercise we have just concluded as a strategy assessment rather than a review.

    The central theme of our work has been to update the framework so that monetary policy can continue to deliver price stability in the face of the new types of shocks we are confronting.

    This evening, without downplaying the other lessons learned, I would like to highlight three key conclusions that have emerged from this work.

    They concern the nature of the new environment, how we assess the risks that arise from it, and how we have adjusted our reaction function to safeguard price stability in this new world.

    The changing environment

    One word has dominated the public debate in recent weeks: uncertainty.

    And this is one of the first key conclusions from our strategy assessment: the world ahead is more uncertain – and that uncertainty is likely to make inflation more volatile.

    First, we see clear signs that supply shocks are becoming more frequent.

    Model-based analysis by ECB staff shows that, during the recent inflation surge, such shocks played a much greater role in driving inflation than they had over the previous two decades. And even today, supply-side forces continue to generate inflation risks in both directions.

    Second, we see mounting evidence that more regular supply disruptions are leading firms to adjust prices more frequently – thereby contributing to greater inflation volatility.

    This is not simply an extrapolation from the most recent shock. Rather, it reflects a structural shift in how firms operate under conditions of permanently higher uncertainty.

    Research shows that, in such an environment, firms tend to react more quickly to shocks – especially supply ones – in order to protect against potential future losses.[1] At the same time, they are more likely to adopt more flexible pricing strategies, which means prices may respond not just to major shocks, but also to smaller frictions and local disruptions.[2]

    Third, if inflation becomes more volatile, we could see non-linearities on both sides.

    In our last strategy review, we rightly focused on the non-linear dynamics that emerge in a prolonged environment of too-low inflation – where interest rates are eventually pushed to their effective lower bound. That constraint can, in turn, feed into inflation expectations and risk creating a self-fulfilling low-inflation trap. And we remain alert to the possibility of renewed downside inflation shocks.

    But recent experience has also revealed non-linearities on the upside.

    Since firms are generally quicker to raise prices than to lower them, more frequent price adjustments mean inflation can rise quickly in response to large upside shocks. If wages then adjust only gradually to these price increases – as we saw in recent years – inflation may remain above target for longer as wage growth slowly catches up. This, in turn, can raise the risk of inflation expectations de-anchoring on the upside.[3]

    Assessing the distribution of risks

    The next question that follows is: if the economic environment becomes more volatile, how can we make our economic assessment more robust?

    Large shocks can trigger feedback loops and non-linear effects that inherently give rise to a broader range of possible outcomes. In a world of higher uncertainty, it is all the more important to augment the baseline with alternative risk scenarios.

    This is why the second key conclusion of our assessment is the need for monetary policy to take into account risks and uncertainty, using a systematic but context-specific approach.

    The ECB has used both scenario and sensitivity analysis for many years – deploying internal scenarios since the global financial crisis and publishing them for the first time during the pandemic.

    But our experience in recent years has underscored the particular strength of scenario analysis in times of elevated uncertainty.

    A clear example is Russia’s invasion of Ukraine and the resulting energy price shock. In that case, scenarios provided insights that neither our baseline projections nor standard sensitivity analyses around the baseline could fully capture.

    For instance, in March 2022 – just a few weeks after the invasion – our baseline projected inflation at around 5% for that year, based on market-implied energy futures. The sensitivity analysis suggested a slightly higher figure of about 5.5%. In contrast, the Ukraine war scenario already pointed to inflation exceeding 7% – close to the final annual figure of over 8%.

    At the same time, there were moments when – in hindsight – publishing scenarios could have supported both our policymaking and our communication.

    One example was the high uncertainty in 2021 about the speed of vaccine rollout and the nature of post-pandemic reopening, including the sectoral shifts in supply and demand across goods and services sectors, both in the euro area and globally.[4]

    Scenario analysis could have helped in illustrating that the range of possible inflation outcomes was unusually wide – and reduced the risk of projecting false certainty to the public.

    This is why our updated strategy commits to ensuring that our policy decisions account not only for the most likely path of inflation and the economy, but also for the surrounding risks and uncertainty – including through the appropriate use of scenario and sensitivity analyses.

    The reaction function

    So what should our reaction function be, if we know that the road ahead is likely to be more uncertain?

    In our last strategy review, we explicitly acknowledged the risks posed by the effective lower bound. Our strategy statement called for “especially forceful or persistent” action when policy rates are close to the lower bound.

    This “asymmetric” focus was grounded in the asymmetry of policy space and the downward inflation bias it can produce. The lower bound continues to constrain monetary policy in the face of large disinflationary shocks.

    But the recent inflation surge has revealed upside non-linearities – and with them, the need for a two-sided reaction function, both in terms of forcefulness or persistence. This is the third key conclusion of our strategy assessment.

    This is not about reacting to small or temporary deviations, but about a symmetric commitment to respond to inflation dynamics that could de-anchor inflation expectations in either direction.

    When disinflationary shocks risk pushing policy rates towards the lower bound, acting forcefully early on helps minimise the time spent near that constraint. Likewise, when inflation overshoots raise the risk of a feedback loop between frequent price adjustments and staggered wage responses, forceful tightening at the outset is key to anchoring expectations.

    We began our recent policy cycle with historically large rate hikes delivered at an unprecedented pace. Our analysis shows that, had we not acted, the probability of inflation expectations de-anchoring would have exceeded 30% in 2022 and 2023.[5]

    At the same time, this policy cycle also offered new perspectives on optimal policy paths.

    One insight from our last strategy review was that, when rates are near the lower bound, persistence can substitute for forcefulness – helping to deliver the necessary policy stance with fewer side effects. Until recently, however, this concept had not been widely applied to tightening cycles.

    Typically, forceful tightening follows an inverted V-shape – with rapid rate increases followed by relatively swift cuts. But as rates move deeper into restrictive territory, the costs and side effects of further tightening also grow.

    At that point, it can become optimal to shift the focus from forcefulness to persistence – even if, in principle, there is no upper bound constraining policy space.

    Model simulations support this insight: forcefulness and persistence can act as substitutes, both capable of delivering the necessary disinflation. But persistence, in particular, can help limit the economic and financial stability costs compared with continued rate increases.

    This was borne out in our own experience. When we entered what I described as the “holding phase”, we placed greater weight on the persistence dimension.[6] This allowed the disinflation process to advance at a steady pace, while the so-called “sacrifice ratio” remained historically low compared with previous disinflation episodes.[7]

    Reflecting this experience, the Governing Council considers that its reaction function is best described as requiring “appropriately forceful or persistent monetary policy action in response to large, sustained deviations of inflation from the target in either direction.”

    To this end, all our instruments remain available in our toolkit. But the word “appropriately” is important, as it underscores that the choice of instruments, and the intensity with which we use them, must reflect proportionality.

    Conclusion

    Let me conclude.

    Our strategy assessment has been an exercise in evolution, not revolution – and in fact, many of its conclusions are already reflected in our current policy conduct.

    We responded to the recent inflation shock with initially forceful and then persistent action, aiming to steer inflation back to target as swiftly as necessary, but as painlessly as possible.

    And scenario analysis is helping us to better understand the range of risks ahead – and how best to respond to them.

    For example, our scenarios on potential US import tariffs have helped us navigate an uncertain global trade landscape, while also enabling us to communicate more clearly the two-sided risks shaping our current monetary policy stance.

    At our last monetary policy press conference in June, I described our monetary policy stance as being “in a good place”.

    Following the conclusion of this strategy assessment, I would add that our monetary policy strategy is also in a good place – strengthened by experience, and better equipped for the challenges of the future.

    To close the circle with Nietzsche: “he who has a why to live can bear almost any how.”

    Even as the world changes around us, we know our purpose. And we will do whatever is necessary to deliver on it – ensuring price stability for the people of Europe.

    MIL OSI Economics –

  • MIL-OSI United Nations: UN Secretary-General’s remarks at the launch of the Sevilla Platform for Action [bilingual as delivered; scroll down for all-English]

    Source: United Nations secretary general

    Señor Presidente del Gobierno, querido Pedro Sánchez, Excelencias, señoras y señores:
     
    Gracias por unirse a este lanzamiento de la Plataforma de Acción de Sevilla.
     
    Estimado Presidente: felicito a usted y a su Gobierno por su visión y liderazgo como anfitriones de la Cuarta Conferencia Internacional sobre la Financiación para el Desarrollo.
     
    We are all here to respond to a global development crisis that threatens people and planet alike.
     
    Our roadmap to a better future — the Sustainable Development Goals — is in danger.
     
    Two-thirds of the targets are not progressing fast enough — or at all.
     
    Solutions depend on financing. 
     
    Developing countries need over $4 trillion a year to deliver on the 2030 Agenda.
     
    But they are being battered by limited fiscal space, slowing growth, crushing debt burdens and growing systemic risks. 
     
    The Sevilla Commitment document represents a bold plan to get the engine of development revving again:
     
    Through new domestic and global commitments that can channel public and private finance to the areas of greatest need…
     
    By overhauling the world’s approach to debt to make borrowing work in service of sustainable development…
     
    And by reforming the global financial architecture to reflect today’s realities and the urgent needs of developing countries.
     
    But we need all hands on deck.
     
    And that’s why the Sevilla Platform for Action is so critical — and so significant.
     
    In the midst of a world of division, conflict and economic uncertainty, this Platform contains more than 130 specific initiatives that demonstrate what we can achieve by working together.
     
    Governments, private sector partners, international institutions, and civil society groups all together teaming up to launch high-impact initiatives to bring the Sevilla Commitment to life.
     
    This includes a global hub for debt swaps at the World Bank as part of a broader facility aimed at relieving liquidity constraints and lowering the cost of borrowing.
     
    A debt pause alliance to help countries in times of crisis.
     
    A global coalition to scale-up pre-arranged finance that can be readily deployed when disasters strike.

    A blended finance platform to bring public and private finance together in a new and expanded way.
     
    A new tool for Multilateral Development Banks to manage currency risks.

    And a commission to explore the future of development cooperation.
     
    In December, I appointed a group of experts on debt who today are announcing 11 immediately actionable proposals to help resolve the debt crisis. 
     
    This includes the commitment to establish a borrowers forum for countries to learn from one another and coordinate their approaches in debt management and restructuring.
     
    I look forward to working closely with Member States — including the G20 — to bring this forum to life, to empower borrower countries, and create a fairer system.
     
    Excellencies, ladies and gentlemen,
     
    The Sevilla Platform for Action offers an ambitious, action-oriented response to the global financing challenge.
    It provides a springboard toward a more just, inclusive, and sustainable world for all countries.
     
    And above all, it proves that progress and change are possible if we work together.
     
    I hope the Platform inspires countries to work as one to tackle other challenges facing our world today.
     
    Y una vez más, agradezco al Presidente del Gobierno y a todos ustedes por su liderazgo.
     
    Muchas gracias.

    *****
    [all-English]

    Mr. President of the Government of Spain, dear Pedro Sánchez,

    Excellencies, ladies and gentlemen,

    Thank you for joining this launch of the Sevilla Platform for Action.

    Respected President of the Government of Spain — I commend you and your government for your vision and leadership as hosts of the Fourth International Conference on Financing for Development.

    We are all here to respond to a global development crisis that threatens people and planet alike.

    Our roadmap to a better future — the Sustainable Development Goals — is in danger.

    Two-thirds of the targets are not progressing fast enough — or at all.

    Solutions depend on financing. 

    Developing countries need over $4 trillion a year to deliver on the 2030 Agenda.

    But they are being battered by limited fiscal space, slowing growth, crushing debt burdens and growing systemic risks.  

    The Sevilla Commitment document represents a bold plan to get the engine of development revving again:

    Through new domestic and global commitments that can channel public and private finance to the areas of greatest need…

    By overhauling the world’s approach to debt to make borrowing work in service of sustainable development…

    And by reforming the global financial architecture to reflect today’s realities and the urgent needs of developing countries.

    But we need all hands on deck.

    And that’s why the Sevilla Platform for Action is so critical — and so significant.

    In the midst of a world of division, conflict and economic uncertainty, this Platform contains more than 130 specific initiatives that demonstrate what we can achieve by working together.

    Governments, private sector partners, international institutions, and civil society groups all together are teaming up to launch high-impact initiatives to bring the Sevilla Commitment to life.

    This includes a global hub for debt swaps at the World Bank as part of a broader facility aimed at relieving liquidity constraints and lowering the cost of borrowing.

    A debt pause alliance to help countries in times of crisis.

    A global coalition to scale-up pre-arranged finance that can be readily deployed when disasters strike.

    A blended finance platform to bring public and private finance together in a new and expanded way.

    A new tool for Multilateral Development Banks to manage currency risks.
     
    And a commission to explore the future of development cooperation.

    In December, I appointed a group of experts on debt who today are announcing 11 immediately actionable proposals to help resolve the debt crisis. 

    This includes the commitment to establish a borrowers forum for countries to learn from one another and coordinate their approaches in debt management and restructuring.

    I look forward to working closely with Member States — including the G20 — to bring this forum to life, to empower borrower countries, and create a fairer system.

    Excellencies, ladies and gentlemen,

    The Sevilla Platform for Action offers an ambitious, action-oriented response to the global financing challenge.
     
    It provides a springboard toward a more just, inclusive, and sustainable world for all countries.

    And above all, it proves that progress and change are possible if we work together.

    I hope the Platform inspires countries to work as one to tackle other challenges facing our world today.
     
    Once again, I thank Prime Minister Sánchez and all of you for your leadership.

    Thank you.

    MIL OSI United Nations News –

  • MIL-OSI USA: Disaster Recovery Center in McCracken County to Close Permanently Friday, June 27; Help is Still Available

    Source: US Federal Emergency Management Agency

    Headline: Disaster Recovery Center in McCracken County to Close Permanently Friday, June 27; Help is Still Available

    Disaster Recovery Center in McCracken County to Close Permanently Friday, June 27; Help is Still Available

    FRANKFORT, Ky

    –The Disaster Recovery Center in McCracken County is scheduled to close permanently Friday, June 27 at 7 p

    m

    However, Kentucky survivors who experienced loss as the result of the April severe storms, straight-line winds, flooding, landslides and mudslides can still apply for FEMA assistance

     The Disaster Recovery Center in McCracken County is located at:McCracken County EM Complex(training room)3700 Coleman Road Paducah, KY 42001Working hours for Wednesday, June 25, until closing on Friday are 9 a

    m

    to 7 p

    m

    CT

    Disaster Recovery Centers are one-stop shops where you can get information and advice on available assistance from state, federal and community organizations

     You can get help to apply for FEMA assistance, learn the status of your FEMA application, understand the letters you get from FEMA and get referrals to agencies that may offer other assistance

    The U

    S

    Small Business Administration representatives and resources from the Commonwealth are also available at the Disaster Recovery Centers to assist you

    FEMA is encouraging Kentuckians affected by the April storms to apply for federal disaster assistance as soon as possible

    The deadline to apply is July 25

    Although the McCracken County Disaster Recovery Center is closing, you can visit any Disaster Recovery Center to get in-person assistance

    No appointment is needed

    To find all other center locations, including those in other states, go to fema

    gov/drc or text “DRC” and a Zip Code to 43362

     You don’t have to visit a center to apply for FEMA assistance

    There are other ways to apply: online at DisasterAssistance

    gov, use the FEMA App for mobile devices or call 800-621-3362

    If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA the number for that service

    When you apply, you will need to provide:A current phone number where you can be contacted

    Your address at the time of the disaster and the address where you are now staying

    Your Social Security Number

    A general list of damage and losses

    Banking information if you choose direct deposit

    If insured, the policy number or the agent and/or the company name

    For more information about Kentucky flooding recovery, visit www

    fema

    gov/disaster/4864

    Follow the FEMA Region 4 X account at x

    com/femaregion4

     
    martyce

    allenjr
    Mon, 06/30/2025 – 13:17

    MIL OSI USA News –

  • MIL-OSI USA: Disaster Recovery Center in Carroll County To Close Permanently; Help is Still Available

    Source: US Federal Emergency Management Agency

    Headline: Disaster Recovery Center in Carroll County To Close Permanently; Help is Still Available

    Disaster Recovery Center in Carroll County To Close Permanently; Help is Still Available

    FRANKFORT, Ky

    –The Disaster Recovery Center in Carroll County is scheduled to close permanently June 28 at 7 p

    m

    Kentucky survivors who experienced loss as the result of the April severe storms, straight-line winds, flooding, landslides and mudslides can still apply for FEMA assistance

    The Disaster Recovery Center in Carroll County is located at:   Carrollton Utilities Operations, 900 Clay St

    , Carrollton, KY 41008  Working hours for this center are 9 a

    m

    to 7 p

    m

    Eastern Time, June 28

    Disaster Recovery Centers are one-stop shops where you can get information and advice on available assistance from state, federal and community organizations

     You can get help to apply for FEMA assistance, learn the status of your FEMA application, understand the letters you get from FEMA and get referrals to agencies that may offer other assistance

    The U

    S

    Small Business Administration representatives and resources from the Commonwealth are also available at the Disaster Recovery Centers to assist you

    FEMA is encouraging Kentuckians affected by the April storms to apply for federal disaster assistance as soon as possible

    The deadline to apply is July 25

    Although the Carroll County DRC is closing, you can visit any Disaster Recovery Center to get in-person assistance

    No appointment is needed

    To find all other center locations, including those in other states, go to fema

    gov/drc or text “DRC” and a Zip Code to 43362

     You don’t have to visit a center to apply for FEMA assistance

    There are other ways to apply: online at DisasterAssistance

    gov, use the FEMA App for mobile devices or call 800-621-3362

    If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA the number for that service

    When you apply, you will need to provide:A current phone number where you can be contacted

    Your address at the time of the disaster and the address where you are now staying

    Your Social Security Number

    A general list of damage and losses

    Banking information if you choose direct deposit

    If insured, the policy number or the agent and/or the company name

    For more information about Kentucky flooding recovery, visit and www

    fema

    gov/disaster/4864

    Follow the FEMA Region 4 X account at x

    com/femaregion4

     
    martyce

    allenjr
    Mon, 06/30/2025 – 13:34

    MIL OSI USA News –

  • MIL-OSI USA: Disaster Recovery Center in Breckinridge County To Close Permanently; Help is Still Available

    Source: US Federal Emergency Management Agency

    Headline: Disaster Recovery Center in Breckinridge County To Close Permanently; Help is Still Available

    Disaster Recovery Center in Breckinridge County To Close Permanently; Help is Still Available

    FRANKFORT, Ky

    –The Disaster Recovery Center in Breckinridge County is scheduled to close permanently June 30 at 7 p

    m

    Kentucky survivors who experienced loss as the result of the April severe storms, straight-line winds, flooding, landslides and mudslides can still apply for FEMA assistance

    The Disaster Recovery Center in Breckinridge County is located at:   McDaniels Community Center, 10762 S

    Highway 259, McDaniels, KY 40152 Working hours for this center 9 a

    m

    to 7 p

    m

    Central Time June 30

    Disaster Recovery Centers are one-stop shops where you can get information and advice on available assistance from state, federal and community organizations

     You can get help to apply for FEMA assistance, learn the status of your FEMA application, understand the letters you get from FEMA and get referrals to agencies that may offer other assistance

    The U

    S

    Small Business Administration representatives and resources from the Commonwealth are also available at the Disaster Recovery Centers to assist you

    FEMA is encouraging Kentuckians affected by the April storms to apply for federal disaster assistance as soon as possible

    The deadline to apply is July 25

    Although the Breckinridge County DRC is closing, you can visit any Disaster Recovery Center to get in-person assistance

    No appointment is needed

    To find all other center locations, including those in other states, go to fema

    gov/drc or text “DRC” and a Zip Code to 43362

     You don’t have to visit a center to apply for FEMA assistance

    There are other ways to apply: online at DisasterAssistance

    gov, use the FEMA App for mobile devices or call 800-621-3362

    If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA the number for that service

    When you apply, you will need to provide:A current phone number where you can be contacted

    Your address at the time of the disaster and the address where you are now staying

    Your Social Security Number

    A general list of damage and losses

    Banking information if you choose direct deposit

    If insured, the policy number or the agent and/or the company name

    For more information about Kentucky flooding recovery, visit and www

    fema

    gov/disaster/4864

    Follow the FEMA Region 4 X account at x

    com/femaregion4

     
    martyce

    allenjr
    Mon, 06/30/2025 – 13:37

    MIL OSI USA News –