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Category: Business

  • MIL-OSI Reportage: BNZ scores naming rights partnership with the NZ Breakers; teams up with Kiwi Hoops to grow grassroots basketball

    Source: BNZ statements

    The New Zealand Breakers, the country’s top professional basketball team, are set to embark on a new chapter as the BNZ Breakers, thanks to a new naming rights partnership with the Bank of New Zealand (BNZ). The naming rights partnership was announced in Auckland this morning.

    In addition, BNZ is joining forces with Kiwi Hoops, Basketball New Zealand’s junior basketball programme, to help grow the sport at the grass roots level and foster the next generation of talent. These partnerships come hot on the heels of the bank’s naming rights sponsorship of the BNZ Northern Kāhu women’s basketball team, confirmed last month.

    BNZ CEO Dan Huggins says the bank is thrilled to back the Breakers and further cement its support for the sport. “From nurturing young talent in Kiwi Hoops, to bolstering women’s basketball with the Northern Kāhu, and now backing the premier professional team, the BNZ Breakers, our support is generational.”

    “Through these partnerships, we want to inspire the next generation and provide resources and opportunities that will help grow the sport, promote physical health, and foster a sense of community. We’re looking forward to seeing the positive ripple effects of these partnerships, from the school playground to the professional court.”

    Matt Walsh, majority owner of the Breakers, welcomed the new partnership. “We’re delighted to partner with BNZ, an organisation that shares our passion and commitment to basketball and the positive role it plays in schools and communities across Aotearoa. This partnership will provide us with the support to continue our success on the court and expand our programmes in the community.”

    “Our captain Tom Abercrombie is a shining example of how the Breakers is a pathway for local players to create a career out of basketball.  Tom went to school less than four kilometres from our club headquarters on Auckland’s North Shore and has travelled the world playing across the globe.

    “Next month he will play his record 400th game for the Breakers in our opening game of the season against the Cairns Taipans at Spark Arena.”

    The BNZ Breakers are actively involved in a range of community outreach initiatives, including their Champions Programme, teaching children aged 5-12 years about goal setting, nutrition, active lifestyles, and basketball fundamentals.

    Kiwi Hoops

    Kiwi Hoops is the Basketball New Zealand junior basketball programme. It aims to introduce the sport to young people, foster a love for the game, and develop skills. The partnership with BNZ will support the expansion of the programme, which already reaches 26,000 kids per year, to engage even more young people across New Zealand.

    Dillon Boucher, CEO of Basketball New Zealand, says, “By partnering with BNZ, we can expand our reach and impact, providing more opportunities for young Kiwis to engage with basketball. This partnership will not only help us grow the sport at the grassroots level, but also build a strong foundation for the future of basketball in New Zealand by developing the next generation of players.”

    Huggins concludes, “At BNZ, we’re committed to growing the social, cultural and financial wellbeing of New Zealanders, and believe in the power of sport to bring people together and inspire positive change. We’re proud to be part of the journey of basketball in New Zealand, and we can’t wait to see where these partnerships take us.”

    The post BNZ scores naming rights partnership with the NZ Breakers; teams up with Kiwi Hoops to grow grassroots basketball appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: HY24 Results: Resilient result in subdued economic environment

    Source: BNZ statements

    Bank of New Zealand (BNZ) today announced a statutory net profit of $762 million for the six months to 31 March 2024, a decrease of $43 million or 5.3% on the prior year.

    This reflects continued growth in BNZ’s lending and deposits, and an increase in operating expenses, up $64 million or 11.1%, as BNZ invested in its people and digital capability.

    BNZ CEO Dan Huggins says this is a resilient result in a subdued economic environment and the bank is in a strong position to continue supporting its customers.

    “High interest rates and cost of living pressures continue to impact business and household finances.

    “While easing inflation is encouraging, it is expected to remain outside of the Reserve Bank’s target band until the end of year. Economic conditions are likely to remain challenging until there is a material reduction in interest rates.

    “Supporting our customers through these challenging times remains our top priority.

    “Our teams continue to proactively contact customers who we have identified as potentially needing additional support. For customers feeling under pressure, our message is get in touch.”

    Revenue for the first six months was broadly flat at $1,770 million, while Net Interest Margin dropped by eight basis points on the prior year, reflecting strong competition across the banking sector and a change in deposit mix as customers shifted funds into term deposits to take advantage of higher interest rates.

    Mr Huggins says despite the challenging operating conditions, the bank has maintained momentum across the business.

    “Our team is focused on serving our customers brilliantly every day and supporting their ambitions, whether that’s investing in their business or buying their first, or next, home.”

    “This focus is paying off with more New Zealanders choosing to bank with BNZ.”

    BNZ’s total lending increased $2.4 billion or 2.4% in the first six months, with home lending up $1.1 billion or 1.9% and business lending up $1.3 billion or 3.0%. Total customer deposits increased by $1.5 billion or 1.9%.

    Innovating to make banking simpler and easier

    “We are always looking for new ways to integrate the latest technology into the way we work and how our customers’ bank to enhance their experience and make banking simpler and easier,” says Mr Huggins.

    “We continue to invest heavily in protection measures to help keep our customers safer online, while also delivering digital solutions designed to free up time in their busy lives.

    “Initiatives like our digital onboarding process which makes switching banks easier and faster for new customers by enabling them to open accounts digitally without having to go into a branch.

    “Similarly, Open Banking, which will allow customers to share their data safely with third parties and enable more personalised products and innovative services for customers.”

    BNZ has been leading the market in developing Open Banking APIs, with more than 250,000 BNZ customers already benefiting from secure budgeting and reconciliation tools and alternative payment options.

    “We’re committed to continuing to drive innovation across our business to provide more value to our customers,” says Mr Huggins.

    An unaudited summary of financial information for the six months ended 31 March 2024 follows:.
    .

    The post HY24 Results: Resilient result in subdued economic environment appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: BNZ warns of increased tax scams as tax time approaches

    Source: BNZ statements

    As tax time approaches, Bank of New Zealand (BNZ) is urging New Zealanders to be alert to the heightened risk of tax-related scams.

    “The end of the financial year is a prime opportunity for scammers, who take advantage of tax time to trick and defraud New Zealanders out of their money,” says Ashley Kai Fong, BNZ’s Head of Financial Crime.

    “Scammers exploit the urgency and importance of tax-related matters, creating fraudulent but realistic scenarios about tax debts or refunds that can seem both timely and credible,” he says.

    “Tax scams are particularly effective because people often have genuine interactions with the IRD during this time of year,” says Kai Fong. “Scammers exploit this familiarity to make their attempts more believable. It’s crucial to verify the authenticity of any unsolicited communication claiming to be from government agencies.

    “A recent example we’ve seen is of customers receiving an email claiming to be from the IRD. The email, which originates from an unofficial email address, contains a link that directs customers to a fraudulent IRD website, which then leads them to a fake bank login page.

    “Examples like this serve as a stark reminder of the importance of being vigilant and cautious when receiving unsolicited emails, even if they appear to be from trusted sources like the IRD or government agencies.”

    New Zealanders should always access their accounts through official websites, rather than clicking on a link which directs them to do so.

    “At this time of year, be particularly wary of emails or communications about tax refunds or debts. Verify the source thoroughly, and if in doubt, contact the IRD via the details on its official website. Remember, the IRD will never prompt you to log in to your online banking via their website or ask you to provide your banking login credentials.

    “The simplest yet most powerful defence you have is being aware. Trust your instincts and always take a sec to check before providing sensitive information.”

    In case of suspicious activity or suspected scams, BNZ encourages anyone who believes they may have been targeted by a scam to contact their bank immediately. For more information on protecting yourself from scams, visit www.getscamsavvy.co.nz.

    The post BNZ warns of increased tax scams as tax time approaches appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: BNZ brings back the branch experience

    Source: BNZ statements

    Bank of New Zealand (BNZ) today announced all of its branches across New Zealand will open at least five days a week by April 2025, in response to growing customer demand for more face-to-face interactions.

    Anna Flower, BNZ Executive Personal and Business Banking, says BNZ’s focus is on being available for our customers when they need us.

    “In recent years, we saw a massive shift in customer demand towards online and call centre services, which was accelerated hugely during the pandemic. We adapted quickly at that time by moving our bankers to where our customers needed us most, which saw us reduce the number of days many of our branches were open,” says Flower.

    “Post-Covid, customer preferences have continued to evolve, and in those moments that matter, such as starting a business, dealing with a bereavement, or buying a home, we’ve heard from our communities and our personal and business customers that they want more opportunities to talk to us face-to-face.

    “For those significant moments, we understand it’s the personal touch that counts. That’s why we’re bringing back 5 day a week opening to give customers access to our bankers’ expertise when and where they need us.

    “This means where there’s a BNZ branch near you, the doors will be open 9.30am until 4.00pm, a minimum of 5 days a week,” says Flower.

    The first BNZ branches to transition to opening five days a week are:

    • Feilding
    • Matamata
    • Oamaru
    • Te Awamutu
    • Thames
    • Te Puke
    • Wānaka

    The remaining branches will move to full week-day operating hours by April 2025.

    The post BNZ brings back the branch experience appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: BNZ’s new Māori Business Sentiment Survey reveals challenges and opportunities amid economic headwinds

    Source: BNZ statements

    Bank of New Zealand (BNZ) today released the findings of its inaugural Māori Business Sentiment Survey, aimed at providing insights into the current state and future prospects of Māori enterprises. The survey highlights the economic challenges being faced by Māori businesses, while also revealing their resilience and potential for growth.

    Whetu Rangi, BNZ’s Head of Māori Business, says the survey aims to address the lack of comprehensive data on the experiences and perspectives of Māori businesses.

    “The data gap around the sector has been a barrier to understanding and supporting the Māori economy. By launching this survey and committing to conducting it regularly, we are aiming to bridge this gap and foster ongoing collaboration and knowledge sharing. We believe that this survey will become a valuable tool to promote better understanding of the sector and help facilitate the flow of capital within the Māori economy.”

    The survey, which received 125 responses from those involved with Māori businesses, revealed that economic conditions pose the most significant challenge for Māori enterprises, with 71% of respondents selecting it as their top concern. The findings also showed that nearly half (46%) of the respondents observed deteriorating business conditions over the past 12 months, while only a small fraction (15%) witnessed improvements.

    Mike Jones, BNZ’s Chief Economist, says that the survey results broadly mirror weak business confidence across the economy.

    “The sentiment expressed in these findings echoes what we’re witnessing in other parts of the economy as we navigate through the trough of the economic cycle. If anything, the confidence levels amongst survey respondents are on the weaker side of broader confidence indicators. This may reflect the Māori economy’s considerable investments in agriculture, forestry, and property – sectors that are currently under some strain,” he says.

    Other findings include:

    • The majority (82%) of respondents expect costs to increase further over the coming 12 months.
    • Over the coming 12 months, more survey respondents expect profitability to deteriorate than to improve (27% increase vs. 33% decrease).
    • A similar proportion of respondents expect employment levels in their business to drop (29% increase vs. 34% decrease)

    Opportunities amidst adversity

    Despite the challenges, the survey also revealed signs of resilience and optimism among Māori businesses. While only 15% of respondents saw improvements in business conditions over the past year, a higher proportion (26%) anticipate better conditions in the coming 12 months.

    Furthermore, more than 1 in 3 (37%) of those responding to the survey intend to boost investment in the coming year versus 24% that expect it to decrease. This may be signalling confidence in future growth potential.

    “The investment plans reported in our survey are more robust compared to what we’ve seen in other business confidence surveys. As the economic cycle matures, we’ll be closely monitoring whether these intentions gain further momentum,” says Jones.

    About the BNZ Māori Business Sentiment Survey

    The launch of this survey is a continuation of BNZ’s commitment to Māori business and contributes to its wider strategy to facilitate financial solutions for Māori and enable whānau Māori and businesses to prosper.

    More detailed findings and analysis are available here.

    An infographic is available here.

    The survey was in field May 2024 with base n = 125. Results are indicative, collected using a sample of convenience including BNZ Māori business customers. Results are intended only for discussion and should not be relied upon for decision-making or regarded as representative of the Māori business sector as a whole. For more information on how BNZ can support Māori businesses, visit Māori Business – BNZ.

    The post BNZ’s new Māori Business Sentiment Survey reveals challenges and opportunities amid economic headwinds appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: BNZ latest big name to invest in AgriZeroNZ

    Source: BNZ statements

    Bank of New Zealand (BNZ) is the latest business to join the growing lineup of private sector companies backing AgriZeroNZ, alongside government, to get emissions reduction tools into Kiwi farmers’ hands sooner.

    Announcing the new shareholder today, Hon Todd McClay, Minister for Agriculture & Trade, confirmed the government would match BNZ’s $4 million investment, boosting AgriZeroNZ’s funds by $8milllion to total $191 million.

    BNZ joins The a2 Milk Company, ANZ Bank New Zealand, ANZCO Foods, ASB Bank, Fonterra, Rabobank, Ravensdown, Silver Fern Farms and Synlait with a combined 50% shareholding of the joint venture (JV). With the government’s increased investment, it owns the remaining half through the Ministry for Primary Industries (MPI).

    AgriZeroNZ Board Chair, Sir Brian Roche KNZM, says this provides a welcome boost in funds to achieve the JV’s ambition and maintain the multibillion-dollar agricultural export trade.

    “I’m pleased more of the private sector is joining us to help get practical tools into farmers’ hands.

    “New Zealand farmers are highly efficient producers of milk and meat for the world, but global companies that pay a premium for these products – such as McDonald’s, Nestlé, Danone, Tesco and Sainsbury’s – are all pushing deep into their supply chain for emissions reduction, with ambitious scope 3 targets.

    “These customers want to see more progress and we need to act now, or we risk losing these high-end customers and potentially breaching trade agreements. Further to this, competitor markets with more intensive farms are getting access to new tools to reduce emissions so they could take our place in supplying these customers.

    “There is a very real and very disruptive risk to our agricultural sector from the need to reduce emissions but there is also an opportunity to stay among the most efficient producers in the world if we can get the right tools to our farmers.

    “We’re confident that with our ambition, expertise, and increasing reach through the private sector, we’ll have 2-3 tools in widespread use by 2030.”

    Sir Brian Roche KNZM, AgriZeroNZ Board Chair, says the JV Is confident it will have 2-3 tools in widespread use by 2030

    BNZ CEO Dan Huggins says the bank is pleased to support AgriZeroNZ and partner with government and some of the country’s largest primary sector businesses to back its farming customers by investing in tools to help reduce emissions and maintain New Zealand’s competitive advantage in agriculture.

    “BNZ has a long history of banking New Zealand farmers, and over that time we have worked alongside our farming customers as they have continually adapted and innovated to meet changing market dynamics.

    “This public-private partnership approach to addressing on farm emissions continues that tradition, helping to ensure New Zealand maintains a resilient and productive agricultural sector into the future,” he says.

    Dan Huggins, BNZ CEO, says it is investing in tools to help reduce emissions and maintain New Zealand’s competitive advantage in agriculture.

    AgriZeroNZ is a world-first public-private partnership with an ambition to ensure all farmers in Aotearoa New Zealand have equitable access to affordable, effective solutions to reduce biogenic methane and nitrous oxide emissions, supporting a 30% reduction by 2030 and drive towards ‘near zero’ by 2040.

    Since being established in February 2023, the JV has committed more than $29M across 10 high impact opportunities to bring emissions reduction solutions to market for Kiwi farmers. This includes a methane-inhibiting bolus, novel probiotics, methane vaccine development, and low emissions pasture.

    It recently raised $18million from The a2 Milk Company, ANZ Bank New Zealand and ASB Bank becoming shareholders in April, with their funding also matched by government.

    AgriZeroNZ has over 77 potential investment opportunities on its radar for review as it continues scanning the globe for solutions which could work on New Zealand farms, to invest and drive development towards a pasture-based solution. It is also working with officials to clarify the regulatory pathway in New Zealand for tools to be used on-farm.

    The post BNZ latest big name to invest in AgriZeroNZ appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: Wellington skyline gets a facelift as BNZ’s new building in the central city officially opens

    Source: BNZ statements

    Te Whanganui ā Tara (Wellington’s) skyline is evolving as Bank of New Zealand’s (BNZ) 15-storey new home in the central city – BNZ Place – today officially opened its doors to colleagues and customers.








    Under construction since 2020, the architecturally designed building, occupies a full city block on the corner of Whitmore Street and Customhouse Quay, and was officially opened by Finance Minister Nicola Willis at a special event this morning.

    CEO Dan Huggins says the striking new building reflects BNZ’s longstanding commitment to the capital city.

    “BNZ has been proudly serving Wellington’s communities for 160 years, and BNZ Place not only reflects our commitment to the city but also our vision for the future. We’re thrilled that we are able to share this vibrant and innovative space with our customers, colleagues, and the people of Wellington.”

    Designed to be modern and resilient, the building’s unique shape and structural design was informed by extensive research, including wind tunnel testing and seismic hazard assessments. The new headquarters represents a fresh start after the former BNZ building on Waterloo Quay was demolished in 2019, one of several buildings deemed irreparable after the Kaikōura earthquake in 2016.

    BNZ Place offers a branch and customer service centre for retail and business banking and a public café on the ground floor. As New Zealand’s largest business bank, BNZ’s Partner Centre offers BNZ business customers state-of-the-art meeting rooms and office space with views of Wellington’s harbour which can be booked and utilised at no cost.

    Newcrest Director Lincoln Fraser says, “We are proud to welcome BNZ’s customers and colleagues into their new Wellington home at the completion of what has been an exciting and highly collaborative project. The Newcrest and BNZ project teams have worked closely together to deliver a landmark building with market leading resilience and energy efficiency.”

    BNZ Place at 1 Whitmore Street combines sustainability and innovation, aiming for a 5-star green rating with features like high-performance solar control glass and energy-efficient systems, supported by base isolation and a structural steel diagrid. Efficient floorplates, a double-height high entry lobby, inter-floor stairs, a rooftop courtyard, and panoramic views contribute to the state-of-the-art facility.

    The design, development and internal fitout of the building also provided an opportunity for BNZ to support its business customers, with Studio Pacific Architecture, Vidak, Alaska Construction, Europlan, and Egmont Dixon all contributing to the build. In addition, the bank collaborated with another BNZ customer, Maxwell Rodgers, using their sustainably sourced wool fabrics to re-upholster and up-cycle furniture from the bank’s previous office, reducing waste to landfill.

    “BNZ Place firmly cements our commitment to the capital, and we look forward to welcoming everyone to our new home,” Mr Huggins says.

    Tracing BNZ’s roots in Wellington

    BNZ’s history in Wellington began in 1862 with temporary offices on Willis Street. Over the years, BNZ has been a pioneer in architectural innovation, from the first drive-in bank in New Zealand to the construction of the Aon Centre in Wellington in the 1980s, the tallest building in New Zealand at the time of construction.

    The bank’s architectural legacy includes the innovative use of reclaimed land for its early headquarters, the 1901 building designed by Thomas Turnbull, the purpose-built BNZ Centre in 1985, and the transition to a 5-star green building on the Wellington waterfront.

    A brief history

    In 1862, BNZ purchased a triangular section on reclaimed land with a frontage along Lambton and Customhouse Quay. The architect was William Mason of Dunedin. The location of the entrance door was later moved due to Wellington’s high winds.

    Wellington 1863 building. Cnr Lambton and Customhouse Quay.
    Wellington 1863 building. Cnr Lambton and Customhouse Quay. Photograph taken 1878 and shows the relocation of the main doorway.
    Wellington premises built in 1901 (before removal of parapet) c.1920
    Wellington Branch premises 1901 (after parapet removed) photo taken 1978.

     

    In 1899, the earlier bank and adjoining Brandon Building were demolished to be replaced with a larger building following the subsequent purchasing of an additional 4 sections of land.

    Since 1901, three other buildings on the block bounded by Lambton and Customhouse Quays and Hunter Street were purchased and occupied by various departments of BNZ’s Headquarters.

     

    In 1985, the purpose built BNZ Centre was opened across the road. An underground tunnel linked the Old Bank and the New ‘Black Tower’. At the time of its construction, it was the tallest building in NZ (replaced by the BNZ Tower when that opened in Auckland in 1986). It remained the tallest building in Wellington until the opening of the Majestic Centre in 1991.

    BNZ Centre, Wellington 1984

     
    In 2009 BNZ moved out of the BNZ Centre and leased a purpose-built office building located on the Wellington waterfront, referred to as ‘Harbour Quays’. Owned by Centre Port, this building was a 5-star green building, later achieving 6 start for the interior fitout. Following the November 2016 earthquake, the building remained empty with BNZ staff re-located into temporary office sites around the Wellington CBD. The building has since been demolished.

     
     

     

     

    		 BNZ colleagues from The Terrace, Spark Central and Ricoh House are now reunited at BNZ Place, Wellington. A branch, community centre and collaborative workplace will co-exist in the same building in the heart of Wellington’s CBD. ​​​​​​​​​​​​​​​​​​​​​​

    The post Wellington skyline gets a facelift as BNZ’s new building in the central city officially opens appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: BNZ welcomes changes to affordability rules

    Source: BNZ statements

    BNZ welcomes changes to the Credit Contracts and Consumer Finance Regulations and an update to the Responsible Lending Code.

    The changes, announced by Commerce and Consumer Affairs Minister Andrew Bayly, are designed to give lenders more flexibility in how they assess consumer loan affordability, while still ensuring responsible lending practices.

    James Leydon, GM Home Lending Product says, “At BNZ, we’re committed to supporting our customers’ financial aspirations. Whether you’re buying your first home, upsizing for a growing family, or undertaking your dream reno, we’ll be able to assess your loan application with more flexibility, in line with the updated Responsible Lending Code.

    “By giving lenders more flexibility in assessing loan affordability, we can better serve New Zealanders. This approach ensures that creditworthy customers aren’t unnecessarily held back by prescriptive affordability requirements. This will help unlock opportunities for many, without compromising our responsible lending obligations.

    “We look forward to implementing these changes promptly when they take effect on July 31st, ensuring our customers can benefit from a more streamlined lending process as soon as possible.”

    The post BNZ welcomes changes to affordability rules appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: BNZ offers support for East Coast and Hawke’s Bay customers impacted by severe weather

    Source: BNZ statements

    BNZ is offering targeted support for customers affected by severe weather and flooding in Hawke’s Bay and the East Coast.

    “We recognise that some of our customers may be facing unexpected challenges due to the severe weather,” says Anna Flower, BNZ Executive Personal and Business Banking.

    “As they focus on the clean-up and recovery, we want to offer practical support to help relieve some of the financial pressure during this time.”

    Available immediately, BNZ is offering a range of targeted assistance options for affected customers on a case-by-case basis, from access to temporary overdrafts for both personal and business customers to the ability to review home lending facilities.

    “There are also a range of other options available, especially for customers who are facing hardship, so I encourage people to get in touch so we can see how we can help,” she said.

    Business and agribusiness customers should reach out to their BNZ Partner. Small business owners can call 0800 BNZSME, while personal banking customers can access support through BNZ’s digital platforms or by calling 0800 ASKBNZ.

    BNZ PremierCare Insurance customers who need assistance can call IAG NZ on 0800 248 888 or submit an online claim https://iagnz.custhelp.com/app/bnz

     

    The post BNZ offers support for East Coast and Hawke’s Bay customers impacted by severe weather appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: Money Month 2024: BNZ survey reveals retirement concerns

    Source: BNZ statements

    A BNZ survey has highlighted the importance of financial education as Sorted Money Month 2024 begins. Coordinated by Te Ara Ahunga Ora Retirement Commission, the annual campaign aims to equip New Zealanders with education, resources, and tools to better navigate their financial journey.

    The survey* uncovered some significant concerns about retirement preparedness:

    • Nearly four in ten (39%) respondents aren’t confident they’ll have saved enough for retirement
    • One quarter lacked confidence in making investment decisions, with younger people (aged 25-44), lower-income households, and non-homeowners particularly affected
    • 74% felt they can’t rely on NZ Super for their retirement, including those who believed it won’t provide sufficient income, or had concerns it may change in the future

    Anna Flower, Executive, Personal and Business Banking at BNZ, says, “These findings highlight the importance of financial education and early planning. Money Month is an opportunity for people to take that crucial first step towards financial preparedness.”

    Continuing and building on last year’s theme “Pause. Get sorted,” Money Month 2024 focuses on actions to help people grow their money and build resilience.

    “Understanding concepts like compounding interest and starting your savings journey early – even with small, regular amounts – can significantly enhance financial outcomes,” Flower says.

    The survey also highlighted KiwiSaver’s role in long-term financial health, with 89% of respondents enrolled. However, 16% revealed they aren’t making regular contributions, highlighting the need for ongoing education and engagement.

    “People think investing is for the wealthy, but investing is for everyone, and KiwiSaver is the easiest and most accessible way to get started,” Flower says.

    “For those not contributing, it’s important to understand that you could be leaving money on the table. With KiwiSaver, in addition to your own savings, you can benefit from both government and employer contributions. These additional contributions can make a real difference to your savings over time, helping put you in a much stronger position for retirement or buying your first home.”

    Supporting your goals

    While Money Month shines a spotlight on financial health, BNZ is committed to supporting financial wellbeing throughout the year.

    “Our free Banking Reviews are designed to align customers’ banking with their financial goals and enhance their overall financial health,” Flower says.

    These reviews involve building a comprehensive understanding of an individual’s financial goals and needs – from day-to-day transactions to borrowing, investments, and insurance. This holistic approach allows for tailored advice and personalised recommendations to support overall financial health.

    “Our experts are always here to discuss your savings goals, advise on home loans, or help you use our BNZ KiwiSaver Scheme Navigator to understand how to get on track with your retirement savings. These reviews ensure that banking solutions work for what’s important to customers now and in the future,” she says.

    In addition, BNZ offers a range of online tools and resources to help New Zealanders take control of their finances. The BNZ app’s Activity tab enables customers to track their spending, categorise transactions, and manage cashflow across personal accounts. For homeowners, the MyProperty tool provides insights into home loans, allowing users to explore scenarios like changing repayments or assessing the impact of different interest rates and what impact this may have on their mortgage free date. These digital tools, along with comprehensive calculators and other resources, support customers in making informed financial decisions.

    “Don’t let another year pass without taking charge of your financial future. Whether you’re just starting out or looking to optimise your investments for retirement, now is the time to act. Small steps today, like ensuring you’re making the most of your KiwiSaver or booking a Banking Review, can lead to meaningful improvements in your financial well-being tomorrow.”

    For more information on Money Month initiatives and to access financial resources, visit www.sorted.org.nz

    The post Money Month 2024: BNZ survey reveals retirement concerns appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: BNZ simplifies home loan offering, delivering savings for first home buyers and low equity borrowers

    Source: BNZ statements

    In a move that will make borrowing simpler and more affordable for first home buyers and low equity borrowers, Bank of New Zealand (BNZ) today announced changes to its home loan offerings.

    In addition to a raft of home lending interest rate reductions this morning, BNZ is moving to a single set of home loan fixed interest rates, simplifying its previous two-tier structure of Classic and Standard rates. This change removes the previous 0.60% difference in the rates available to borrowers with less than 20% equity.

    New borrowers with less than 20% equity will benefit from the lower Standard fixed interest rates, resulting in reduced overall borrowing costs for these customers. Low equity premiums will continue to apply based on individual customers’ equity positions.

    BNZ Executive Customer Products and Services Karna Luke says these changes will make a real difference for many New Zealanders.

    “The simpler home loan rates mean that all customers will be able to access our best home loan rates, even if they don’t have 20% equity.

    For example, a first home buyer borrowing $500,000 with a 15% deposit on a 30-year term would save $78 per fortnight based on the current 1-year fixed rate advertised on the BNZ website*. Over a 1-year fixed term, this amounts to savings of more than $2,000.

    “These changes reflect our commitment to growing the long-term financial wellbeing of all New Zealanders,” says Luke.

    “By making home loans simpler, we aim to help more Kiwis to achieve their home ownership aspirations.”

    The new pricing takes effect from today for new customers and will apply to existing low equity customers when they next refix their home loan.

    *1 year interest rate of 6.55% as of 20 August 2024.

    The post BNZ simplifies home loan offering, delivering savings for first home buyers and low equity borrowers appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: The economy in ten pics

    Source: BNZ statements

    • RBNZ kickstarts the easing cycle
    • Greenlights a slow ‘n’ steady downtrend
    • Helps the 2025 economic outlook, but near-term growth picture still troubled
    • With labour market to weaken further
    • Housing market in focus

     

    View PDF here

     

    Chart 1: So it begins

    There was nothing in the Reserve Bank’s (RBNZ) announcement to greatly challenge our view of the world. The Official Cash Rate (OCR) was lowered 25bps to 5.25% as we expected. The interest rate brake is still on, just less so than before.

    The most important aspect of the meeting in our view was the confirmation that the OCR will move a lot lower over the coming 18 months.

    It needs to. Our rough estimate of the ‘real’ (inflation-adjusted) cash rate has increased in recent months, even with this week’s cut. And it’s a long way down for the OCR to the RBNZ’s estimate of the long-run neutral rate around 3%.

    Chart 2: Chop

    The RBNZ’s updated forecasts were a shadow of their former selves. GDP growth, inflation and OCR forecasts got a chop while unemployment rate expectations were lifted ½% or so to a 5½% peak.

    This brings the RBNZ’s view of the economy down to, or even a touch weaker than, where we’ve been seeing things. Importantly, CPI inflation is now seen well inside the 1-3% target range in Q3 (2.3%y/y from 3.0% in May). As of yesterday, we concur.

    It means there’s a higher hurdle for incoming data to surprise the RBNZ on the downside. That doesn’t rule out a larger 50bps OCR cut being deployed at some point, but it does lean against the possibility in the short term.

    Chart 3: Joining the rate race

    Having been something of an outlier for a while, NZ is now back in the policy easing peloton. Most developed markets anticipate sizeable interest rate cuts over the coming 12 months.

    Markets price a better than even chance of a 50bp start to the US Federal Reserve’s easing cycle next month which, if delivered, may embolden global rate cut pricing further.

    Of those markets covered opposite, implied policy easing to February 2025 is most aggressive for the US (-185bps), NZ (-150bps), and Canada (-130bps), with Australia (-65bps) and Japan (+10bps) at the other end of the field.

    Chart 4: US sniffles

    Global financial markets have recovered much of their poise following the steep equity market declines of early last week. Sentiment is not what it was though. Investors are suddenly alert to any number of global fragilities.

    Most of the ‘blame’ for the wobble has been pinned on cooling tech/AI exuberance and US growth concerns. The outsized reaction last week may reflect the additional, creeping reliance on the US to drive the global expansion this year. The old ‘US catches a cold’ adage is still relevant.

    Chart 5: Jobs growth stalled

    The number of people employed nudged up 0.4% in the June quarter, according to official figures released last week. We’d pencilled in a small decline. Unemployment still rose to 4.6% as expected.

    Q2’s employment kick is unlikely to be repeated this quarter, and it also doesn’t change the broader narrative of jobs growth effectively stalling around mid-2023.

    Amongst the sectoral detail, it’s clear that the construction sector has been at the vanguard of the changing employment market.

    Chart 6: Relocating for work

    The lift in NZ’s unemployment rate in Q2 maintained a ½ percentage point gap to the (4.1%) Aussie equivalent.

    It doesn’t sound large, but that gap is the widest since 2013. Not coincidentally, net migration outflows to Australia are also running at the strongest level since 2013. People move to where the jobs are.

    Our forecasts imply both trends have got a ways to run. A climb in the NZ unemployment rate to a 5.5% peak in early 2025 against a lower (4.6%) peak in Australia would, on past form, be consistent with an acceleration in net outflows.

    Chart 7: Green f(lags)

    Wage inflation peaked in NZ about a year ago. We saw another notch in the downtrend last week. The private sector Labour Cost Index eased to 3.6%y/y in June, down from 3.8% the prior quarter and the 4.5% peak.

    More of the same easing is expected over the coming 12 months. It’s something that should help drain still-elevated domestic services inflation pressure. So, it’s not that high interest rates have been ineffective on non-tradables inflation, it’s that the impacts take time to turn up. The lags are real!

    Chart 8: No retail respite

    The trend in NZ retail card spending abruptly turned in early 2023, and it’s been downhill ever since. July’s 0.1%m/m contraction was the 6th consecutive monthly decline. Discretionary categories remain the hardest hit.

    The weakness is even more pronounced once buoyant population growth is accounted for. Our estimate of the average monthly spend per (working age) person is 8% below March 2023 levels. It’s a deeper and longer contraction than during the 2008 GFC.

    We’re hopeful the downtrend soon stabilises. Tax and interest rate cuts are supports, but falling population growth and job security are not.

    Chart 9: Housing market in focus

    The release of July REINZ housing market numbers has been shunted out to Tuesday, thus missing the cut for this edition of TEITC.

    But, it’s fair to say, housing stats will be watched more closely than usual as folk scour for green shoots in a sector likely to be one of the earlier responders to (recent and expected) falls in retail interest rates. There are stirrings in some of the anecdote and surveys, but we think the prognosis is more stabilisation than acceleration, for now.

    In the least, we’d expect a hearty bounce-back in July sales activity following the outsized, Matariki holiday-related, drop in June. That’s what we saw from this week’s Barfoot & Thompson figures covering a share of the Auckland market.

    Chart 10: Food for thought

    Food prices lifted 0.4%m/m (seasonally adjusted) in July. Prices have been flattish for the past year, but they’re still up 24% on 2020 levels.

    As you’d expect, there’s been a fair bit of variation amongst the components over that time. If you’re partial to an omelette and/or yogurt for breakfast you will be feeling the pinch a lot more than some. At least your morning brew is still, relatively speaking, cost effective.

    To subscribe to Mike’s updates click here

    Disclaimer: This publication has been produced by Bank of New Zealand (BNZ). This publication accurately reflects the personal views of the author about the subject matters discussed, and is based upon sources reasonably believed to be reliable and accurate. The views of the author do not necessarily reflect the views of BNZ. No part of the compensation of the author was, is, or will be, directly or indirectly, related to any specific recommendations or views expressed. The information in this publication is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Any statements as to past performance do not represent future performance, and no statements as to future matters are guaranteed to be accurate or reliable. To the maximum extent permissible by law, neither BNZ nor any person involved in this publication accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any, opinion, information, representation or omission, whether negligent or otherwise, contained in this publication.

    The post The economy in ten pics appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: BNZ the first NZ bank to achieve next open banking (open data) milestone

    Source: BNZ statements

    Bank of New Zealand (BNZ) has taken another critical step toward open banking—better described as open data—becoming the first bank in New Zealand to meet a major milestone set by Payments NZ.

    BNZ has implemented the Payments NZ Account Information API v2.1 standards, which when open banking is fully operational, will enable New Zealanders to safely and securely share their financial information with approved providers.

    “While it sounds a little dull, API v2.1 is really the engine room of open data. It’s the piece of the tech puzzle that means our customers have full control over what data they share, who they share it with and importantly, it gives them control to stop sharing their data too,” says Karna Luke, BNZ’s Executive of Customer Products and Services.

    Payments NZ plays a key role in establishing the open banking system and has set New Zealand’s major banks the task of implementing Account Information API v2.1 standards by November this year. This follows the May 2024 requirement for major banks to support payments via APIs, enabling direct account payments through third-party apps. BNZ achieved this in 2023.

    “That we’ve been able to reach this milestone three months ahead of the deadline reflects the commitment that BNZ has made to support the implementation of open banking. Over 250,000 BNZ customers are already benefitting from innovative services made possible through this technology, including services from Xero, Volley, and Blinkpay, all of which connect to BNZ through secure APIs,” says Luke.

    What it all means for customers

    This secure access to real-time financial data empowers third-party providers and fintechs to provide customers with new, innovative, and highly personalised financial products and services. Potential use cases include:

    • Personalised budgeting tools: Apps that offer tailored budgeting advice based on real-time financial data and spending habits, helping users manage their finances more effectively.
    • Customised savings plans: Solutions that design personalised savings plans and automate transfers based on users’ financial behaviour and goals.
    • Advanced financial insights: Tools that provide detailed analysis of spending patterns and identify new financial opportunities, enhancing users’ understanding of their financial situation.
    • Streamlined loan applications: More efficient loan processes that simplify and speed up approval by leveraging comprehensive account information.
    • Fraud detection and prevention: Facilitating third party apps or services to use real-time account data to identify unusual activity, improving security.

    “Being the first bank in New Zealand to deliver this API demonstrates our focus on helping drive the future of open banking in New Zealand,” says Luke.

    “We’re excited to see more fintechs and developers join those we’re already working with to leverage this technology to create innovative solutions that will benefit our customers and the country.”

    “It’s also important to remember that banking services are just the beginning. The Customer and Product Data Bill currently progressing through Parliament will establish a Consumer Data Right (CDR) in New Zealand, enabling open data sharing across multiple sectors.”

    This will further unlock digital innovation, making it possible to do things like instantly and securely verifying your identity online, via the information held about you by your bank, insurer or power company, or finding the best deal across utility or insurance companies and switching easily.

    For more information about the Account Information API v2.1 and its capabilities, please visit https://developer.bnz.co.nz/

    The post BNZ the first NZ bank to achieve next open banking (open data) milestone appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Russia: IMF Executive Board Concludes the 2024 Article IV Consultation with Uganda

    Source: IMF – News in Russian

    September 9, 2024

    • Uganda has navigated the post pandemic recovery well due to sound macroeconomic policies. The economic recovery is strengthening with low inflation, favorable agricultural production, and strong industrial and services activity.
    • Uganda should continue its efforts to create fiscal space through revenue mobilization and better expenditure discipline, vigilant monetary policy, and exchange rate flexibility, using future oil revenue to address growth impediments and improve social development while advancing governance reform and financial inclusion.

    Washington DC: On September 6, the Executive Board of the International Monetary Fund (IMF) concluded the 2024 Article IV Consultation[1] with Uganda.

    Uganda has navigated the post-pandemic recovery well due to sound macroeconomic policies. The economic recovery is strengthening with low inflation, favorable agricultural production, and strong industrial and services activity. Growth is estimated at 6 percent in FY23/24, up from 5.3 percent in FY22/23. Headline inflation has increased to 3.9 percent by June 2024, driven by rising energy prices and core inflation, though the latter remains below the Bank of Uganda’s (BoU) target of 5 percent.

    Elevated current account deficit and limited capital inflows have weighed on Uganda’s international reserves. Despite strong coffee and gold exports, the current deficit remains high due to rising oil project-related imports. Tight global financial conditions and reduced external project and budget support have driven down gross international reserves, covering only 2.9 months of imports at the end of 2024 (excluding oil-project related imports).

    The overall fiscal deficit continued to decline in FY23/24 but was less than planned due to revenue underperformance and higher current spending, while development spending fell short of expectations, worsening expenditure composition.

    Looking ahead, growth is expected to strengthen, boosted by the start of oil production, which will make lasting improvement in the fiscal and current account balances. Inflation is expected to rise near the BoU’s target of 5 percent in FY24/25. Risks are mostly on the downside, including continued fallout from the Anti-Homosexuality Act, which complicates the already tight external financing conditions, potential delays in oil production, and climate-related shocks. Upside risks to inflation come from commodity price volatility, weather conditions, and exchange rate depreciation pressures stemming from limited capital inflows.

    The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Uganda:

    “Executive Directors agreed with the thrust of the staff appraisal. They welcomed Uganda’s robust post‑pandemic recovery underpinned by sound macroeconomic policies and the favorable medium‑term outlook due to the anticipated start of oil production. At the same time, they noted pressures on international reserves amid tight global financial conditions, as well as the elevated debt servicing costs accompanied by a shortfall in the country’s development spending. Directors also highlighted the significant downside risks, including from the continued fallout from the “Anti‑Homosexuality Act”, which could exacerbate already tight external financing conditions, potential delays in oil production, sluggish reform implementation, and climate‑related shocks. Against this background, they encouraged continued reforms, including those envisaged under the expired ECF arrangement, to rebuild fiscal and external buffers and boost inclusive and sustainable growth, supported by technical assistance from the Fund and other partners as needed.

    “Directors encouraged strong efforts to create durable fiscal space, emphasizing the need to address significant spending demands in human capital, infrastructure, and climate resilience. They recommended continued revenue‑based fiscal consolidation, improved expenditure discipline, and a prudent fiscal management framework to ensure effective use of oil revenues once production begins.

    “Directors commended the Bank of Uganda’s commitment to price stability and agreed with its tight monetary policy stance to anchor inflation expectations. They advised keeping monetary policy data dependent and emphasized the importance of continued exchange rate flexibility to help build up buffers and improve competitiveness. Directors called for continued efforts to enhance monetary transmission and central bank independence, including through full implementation of the 2021 Safeguards Assessment recommendations.

    “While recognizing the resilience of Uganda’s financial system, Directors called for vigilant monitoring of the rapid increase in the sovereign‑bank nexus and significant cross‑border exposure of the nonfinancial corporate sector, alongside multifaceted efforts to enhance financial inclusion.

    “Directors stressed that accelerating structural reforms is crucial for achieving inclusive, sustainable, and private sector‑led growth. They supported further efforts to strengthen enforcement of the anti‑corruption framework, address remaining shortcomings in AML/CFT, enhance fiscal transparency, introduce regulatory reforms to support businesses, and implement an ambitious climate resilience agenda drawing on the recommendations of the C‑PIMA.

    The next Article IV consultation with Uganda will be held on the standard 12‑month cycle.”

    [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.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Tatiana Mossot

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/09/pr24322-Uganda-imf-exec-board-concludes-2024-aiv-consult

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with Dominican Republic

    Source: IMF – News in Russian

    September 10, 2024

    Washington, DC: On September 10, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with the Dominican Republic and considered and endorsed the staff appraisal without a meeting.[2]

    A track record of sound policies and institutional policy frameworks has helped the Dominican Republic achieve robust and resilient economic growth and low inflation over the last two decades. Effective policies contributed to a growth moderation that appropriately supported inflation’s rapid and sustained return to its target last year and then aided the recovery, while close monitoring of the financial sector supported macro-financial stability. Planned enhancements to policy frameworks and deepening structural reforms—in particular, comprehensive fiscal and electricity reforms—have the potential to further support stability, competitiveness, and inclusive growth.

    Following a strong post-pandemic recovery, economic growth slowed to 2.4 percent in 2023 due to tighter global and domestic financial conditions, weak export demand, and transient domestic factors, largely climate related. The growth slowdown, alongside lower commodity prices, drove inflation’s faster-than-expected convergence to its target range (4±1 percent). In response, the Central Bank of The Dominican Republic (BCRD) cautiously and appropriately reduced its key policy rate, allowing for greater exchange rate flexibility while increasing foreign exchange interventions to smooth daily exchange volatility. Fiscal policy was also prudently adjusted to support the economy. The current account deficit in 2023 narrowed markedly to 3.6 percent of GDP and was fully financed by foreign direct investment (FDI) flows. The financial sector weathered the period of tight monetary policy and slower growth and is adequately capitalized and profitable.

    Supported by sound policies and macroeconomic fundamentals, the outlook is favorable despite elevated, mostly global, uncertainty. For 2024 and over the medium term, real GDP growth is projected around its long-term trend of 5 percent, with inflation around its 4 percent target. The current account deficit is projected to gradually narrow to less than 3 percent of GDP and continue being fully financed by FDI. Near-term risks to the outlook—including tighter global financial conditions, geopolitical tensions, and volatile commodity prices—have moderated since last year but remain elevated and tilted to the downside. Over the medium-term risks are more balanced and include upside risks if key domestic reforms are implemented successfully.

    Executive Board Assessment

    In concluding the 2024 Article IV Consultation with the Dominican Republic, Executive Directors endorsed staff’s appraisal, as follows:

    A track record of sound policies and institutional policy frameworks has helped the Dominican Republic achieve robust and resilient economic growth and low inflation over the last two decades. Effective policies contributed to a growth moderation that appropriately supported inflation’s rapid and sustained return to its target in 2023. The authorities provided timely policy support to aid the recovery while monitoring closely the financial sector. The external position improved significantly in 2023 and was broadly in line with fundamentals and desirable policies.

    The outlook is favorable despite elevated—mostly global—uncertainty. Real GDP growth is projected around its long-term trend of 5 percent in 2024 and thereafter, with inflation around its (4±1 percent) target. The current account deficit, expected to be fully financed by FDI, is projected to gradually narrow over the medium term. Downside risks dominate in the near‑term term—including tighter for longer monetary policy in the U.S., intensification of regional conflicts, or extreme local weather events—but are broadly balanced over the medium term, including upside risks if reforms are successfully implemented. Existing buffers, further contingency planning, and agile sound policy making can help face adverse shocks.

    In the near term, policy priorities should remain focused on maintaining macroeconomic and financial stability, including further flexibility of the exchange rate. Monetary policy normalization can continue, given remaining economic slack and that inflation is firmly within the target range. Efforts to expedite the recapitalization of the central bank to reinforce its autonomy should remain a priority. Endeavors should continue to deepen the FX market, expand the use of hedging mechanisms and limit FXIs to large shocks that lead to destabilizing changes in hedging and financing premia to support further exchange rate flexibility, and therefore further enhance the effectiveness of the inflation targeting framework. While international reserves are broadly adequate based on traditional metrics, further reserve accumulation is necessary to increase buffers to deal with future shocks.

    Fiscal policy should remain focused on rebuilding buffers and critical spending needs. The fiscal responsibility law and its planned implementation are welcomed and are important steps to better anchor medium-term policies and further secure debt sustainability. The authorities’ planned gradual fiscal consolidation, consistent with this law, is appropriate to place debt on a firmly downward path and build fiscal buffers. An integral fiscal reform that durably raises revenues—through elimination of tax exemptions and expansion of the tax base—and improves spending efficiency—especially by reducing electricity sector subsidies and untargeted transfers—is imperative. This can provide space for needed development spending (including disaster-resilient infrastructure) to promote inclusive growth.

    The financial sector remains resilient and well capitalized, and efforts to bring the regulatory framework up to the latest international standards should continue. The sector weathered well the period of high interest rates and slower growth in 2023. Stress tests show that the banking sector can absorb a range of shocks. Continued close monitoring to contain any build‑up of vulnerabilities remains warranted amid higher for longer interest rates and past increases to credit growth. The modernization of the financial and prudential regulatory framework, alongside the expansion of the macroprudential toolkit, and closing regulatory/supervisory gaps (including for savings and loans cooperatives) will further increase financial sector resilience.

    Ongoing efforts to improve public institutions and the business climate are essential to maintaining the strong investment and growth trajectory. The fiscal policy framework, and spending and revenue efficiency can be further enhanced by continued improvements to public financial management and further strengthening of revenue administration. Reforms to education and the labor market, alongside further improvements to social outcomes and implementation of climate adaptation and mitigation policies will be critical to support inclusive and resilient growth and continue to reduce vulnerabilities. The authorities should continue in their efforts to fully implement the Electricity Pact.

    Dominican Republic: Selected Economic Indicators

    Population (millions, 2023)                                                     10.7

    GDP per capita (2023, U.S. dollars)                         11,372

    Quota                                     477.4 million SDRs / 0.10% of total

    Poverty (2021, share of population)                            23.9

    Main exports                                             tourism, gold, tobacco

    Unemployment rate (2023, percent)                             5.3

    Key export markets                                          U.S., Canada, Haiti

    Adult literacy rate (percent, 2022)                               95.5

    Projection

    2019

    2020

    2021

    2022

    2023

    2024

    2025

    Output

    (Annual percentage change, unless otherwise stated) 

    Real GDP

    5.1

    -6.7

    12.3

    4.9

    2.4

    5.1

    5.0

    Nominal GDP (RD$ billion)

    4,562

    4,457

    5,393

    6,261

    6,820

    7,453

    8,149

    Nominal GDP (US$ billion)

    89.0

    78.9

    94.5

    113.9

    121.8

    …

    …

    Output gap (in percent of potential output)

    -0.5

    -6.3

    -1.9

    -0.8

    -1.7

    -0.8

    -0.5

    Prices

     

     

     

     

     

     

     

    Consumer price inflation (end of period)

    3.7

    5.6

    8.5

    7.8

    3.6

    3.7

    4.0

    Exchange Rate

    Exchange rate (RD$/US$ – period average) 1/

    51.2

    56.5

    57.1

    55.0

    56.0

    …

    …

    Exchange rate (RD$/US$ – eop) 1/

    52.9

    58.2

    57.3

    56.2

    58.0

    …

    …

    Real effective exchange rate (eop, – depreciation) 1/

    -3.2

    -8.1

    6.5

    6.3

    -1.9

    -2.9

    0.0

    Government Finances

    (In percent of GDP) 

    Consolidated public sector debt 2/

    53.3

    71.1

    62.2

    58.8

    59.3

    58.4

    57.4

    Consolidated public sector overall balance 2/

    -3.3

    -9.0

    -3.7

    -3.6

    -4.0

    -4.0

    -3.8

    Consolidated public sector primary balance

    0.5

    -4.2

    0.7

    0.0

    0.4

    0.7

    0.7

    NFPS balance

    -2.3

    -7.6

    -2.5

    -2.7

    -3.1

    -3.1

    -3.1

     Central government balance

    -3.5

    -7.9

    -2.9

    -3.2

    -3.3

    -3.1

    -3.1

    Revenues and grants

    14.4

    14.2

    15.6

    15.3

    15.7

    16.3

    15.2

    Primary spending

    15.1

    18.9

    15.4

    15.7

    15.8

    15.9

    14.8

    Interest expenditure

    2.7

    3.2

    3.1

    2.8

    3.1

    3.4

    3.5

    Rest of NFPS

    1.1

    0.3

    0.4

    0.6

    0.2

    0.0

    0.0

    Financial Sector

    (Annual percentage change; unless otherwise stated) 

    Broad money (M3)

    11.7

    21.2

    13.4

    6.3

    14.3

    11.5

    10.7

    Credit to the private sector

    11.8

    5.3

    11.6

    16.6

    19.6

    15.8

    11.5

    Net domestic assets of the banking system

    8.6

    2.5

    11.5

    9.7

    13.1

    13.5

    10.1

    Policy interest rate (in percent) 1/

    4.5

    3.0

    3.5

    8.5

    7.0

    …

    …

        Average bank deposit rate (1-year; in percent) 1/

    6.7

    3.1

    2.3

    9.9

    8.6

    …

    …

        Average bank lending rate (1-year; in percent) 1/

    12.4

    9.9

    9.2

    13.5

    13.6

    …

    …

    Balance of Payments

    (In percent of GDP) 

    Current account

    -1.3

    -1.7

    -2.8

    -5.8

    -3.6

    -3.4

    -3.4

    Goods, net

    -10.2

    -8.6

    -12.5

    -15.1

    -13.0

    -12.9

    -12.7

    Services, net

    5.7

    1.8

    3.9

    4.8

    6.0

    6.6

    6.5

    Income, net

    3.2

    5.2

    5.7

    4.5

    3.5

    2.9

    2.7

    Capital account

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    Financial account 3/

    3.6

    5.3

    5.7

    6.7

    5.1

    3.5

    4.3

    Foreign direct investment, net

    3.4

    3.2

    3.4

    3.6

    3.6

    3.5

    3.5

    Portfolio investment, net

    2.4

    7.1

    2.2

    2.9

    2.0

    1.5

    1.3

    Financial derivatives, net

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    Other investment, net

    -2.3

    -5.1

    0.1

    0.2

    -0.5

    -1.5

    -0.5

    Change in reserves (-increase)

    -1.3

    -2.5

    -2.4

    -1.3

    -0.9

    -0.2

    -0.9

    GIR (in millions of US dollars)

    8,782

    10,752

    12,943

    14,441

    15,464

    15,660

    16,883

    Total external debt (in percent of GDP)

    41.9

    56.3

    48.6

    40.5

    43.3

    43.5

    42.5

     of which: Consolidated public sector

    27.3

    40.3

    35.6

    33.2

    33.9

    32.9

    32.2

     

    Sources: National authorities; World Bank; and IMF staff calculations.

    1/ Latest available.

    2/ The consolidated public sector includes the budgetary central government (CG); the rest of the Non-Financial Public Sector, i.e., extra-budgetary central government institutions (decentralized and autonomous institutions), social security funds, local governments and non-financial public companies; and the quasi-fiscal central bank debt. With the dissolution of the state electricity holding company (CDEEE) in 2022, the deficit of CDEEE from 2019 was transferred to the CG.

    3/ Excluding reserves. 

    [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] The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without convening formal discussions.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Meera Louis

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/10/pr24323-dominican-republic-imf-exec-board-concludes-2024-aiv-consult

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with Botswana

    Source: IMF – News in Russian

    September 10, 2024

    • Botswana’s economic growth is expected to slow to 1 percent in 2024 primarily because of a diamond market contraction, before picking up next year. Inflation has declined sharply since the peak of mid-2022 and returned to the central bank’s medium-term objective range of 3–6 percent, where it is expected to remain in the medium term.
    • The government plans a fiscal expansion in FY2024 followed by two years of substantial fiscal adjustment. Public debt is low (20 percent of GDP), but government deposits at the central bank have significantly reduced over the past decade.
    • The financial sector is sound, stable, and resilient.

    Washington, DC: On August 28, 2024, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Botswana and endorsed the staff appraisal without a meeting on a lapse-of-time basis.[2]

    Botswana’s economic growth decelerated from 5.5 percent in 2022 to 2.7 percent in 2023, below the long-run potential growth of 4 percent. A sharp decline in diamond trading and mining activities was the main contributor to the slowdown, as global demand for rough diamonds decreased. Inflation has remained below the ceiling of the central bank’s medium-term objective range since July 2023. Despite lower diamond exports, FX reserves increased in 2023 supported by higher customs union receipts. The financial sector is broadly sound, stable, and resilient.

    Botswana’s economy is expected to decelerate further this year, with growth projected at
    1 percent. The continued slowdown is mainly due to a fall in diamond production, partly offset by construction projects financed by the fiscal expansion. Growth is forecast to rebound – averaging 5 percent over the next two years – due to higher prices and quantities of diamonds produced. Inflation is projected to remain within the central bank’s objective range of
    3–6 percent.

    The fiscal deficit is projected to widen further to 6 percent of GDP in FY2024, reflecting a further decline in mineral revenues and higher capital expenditure. The government plans a substantial fiscal adjustment in the following two years to reach a fiscal surplus. The external position should soften over the medium term (with FX reserves decreasing to 5 months of imports) due to weak growth in customs revenues and higher government foreign debt repayments. Risks to the outlook remain elevated due to the emergence of cheaper lab-grown diamonds, and uncertainty over the recovery of major export markets.

    Executive Board Assessment

    In concluding the 2024 Article IV consultation with Botswana, Executive Directors endorsed staff’s appraisal, as follows:

    Botswana is facing a severe slowdown from a diamond market contraction in 2023 and 2024. Growth is expected to fall to 1.0 percent this year, from 2.7 percent in 2023 and 5.5 percent in 2022. This reflects weaker global demand for diamonds and a sharp increase in inventories.

    Real GDP growth should rebound next year, although risks to the outlook remain elevated. A strong recovery is projected in 2025, driven by the rebound in diamond production and trade. But the economic outlook is highly uncertain, with the emergence of cheaper lab-grown diamonds, and the announced sale of De Beers by its UK parent company.

    In the near term, the fall in diamond revenues could be accommodated by a mix of higher fiscal deficit and reprioritization of capital expenditure. Some fiscal relaxation is warranted in light of the widening of the output gap, but staff encourages the authorities to reprioritize capital projects to limit the increase in the deficit and ensure that they achieve the highest value for money.

    Over the medium term, the authorities’ planned fiscal consolidation is critical to put a stop to the depletion of government’s financial buffers, build resilience against shocks, and preserve fiscal sustainability. Staff assesses that targeting a 1 percent of GDP fiscal surplus would generate sufficient savings to protect the budget against major economic shocks. While the authorities’ adjustment plan focuses mostly on expenditure restraint, there is also scope to increase revenues. The medium-term adjustment should be supported by institutional reforms, including a fiscal rule, more credible medium-term budgeting, and possibly a well-designed SWF.

    The monetary policy stance is appropriate. Inflation has declined since August 2022 and is projected to remain within the central bank’s objective range in the medium term. Underlying pressures, as measured by core inflation indicators, seem contained, while inflation expectations are well anchored. The 2023 external position is assessed to be broadly in line with fundamentals and desirable policies.

    The authorities’ plans to strengthen financial sector oversight, deepening, and inclusion are welcomed. The financial sector is broadly sound and stable despite the economic slowdown. Faster implementation of the 2023 FSAP recommendations will further reduce financial risks. These include moving to implement Basel III liquidity standards, enhancing risk-based supervision of banks, reinforcing the crisis management framework (ELA, bank resolution), and deploying macroprudential tools to address household debt risk.

    Accelerating growth and job creation requires a fundamental shift towards greater private sector participation, a more diversified export base, and a more efficient public sector. The authorities should prioritize SOE modernization, improved infrastructure for doing business (internet, energy, logistics), trade facilitation measures, more efficient social protection, and financial inclusion reforms that support small entrepreneurs. These goals could be enshrined in the new NDP, supported by time-bound and well-prioritized action plans.

    Botswana: Selected Economic and Social Indicators, 2020-20291
     

    2020

    2021

    2022

    2023

    2024

    2025

    2026

    2027

    2028

    2029
     

    Projection

    (Annual percent change, unless otherwise indicated)

    National Income and Prices

    		                    

    Real GDP

    -8.7

    11.9

    5.5

    2.7

    1.0

    5.2

    4.8

    4.0

    4.0

    4.0

    Nonmineral

    -3.5

    7.9

    4.9

    2.6

    5.1

    4.1

    4.4

    4.4

    4.4

    4.5

    GDP per capita (US dollars)

    5,863

    7,244

    7,726

    7,250

    7,341

    8,003

    8,602

    9,146

    9,726

    10,437

    GNI per capita (US dollars)2

    5,872

    7,174

    7,220

    6,963

    7,150

    7,733

    8,290

    8,798

    9,344

    10,027

        Consumer prices (average)

    1.9

    6.7

    12.2

    5.1

    3.8

    4.5

    4.5

    4.5

    4.5

    4.5

    Diamond production (millions of carats)

    16.9

    22.7

    24.5

    25.1

    21.1

    23.3

    25.0

    25.5

    26.0

    26.4

    Money and Banking

    		                    

    Monetary Base

    -3.8

    -8.8

    -5.3

    33.1

    8.7

    9.7

    9.3

    9.2

    9.3

    9.3

    Broad money (M2)

    5.9

    5.0

    6.8

    9.3

    8.7

    9.7

    9.3

    9.2

    9.3

    9.3

    Credit to the private sector

    5.3

    5.4

    4.7

    5.6

    8.5

    11.0

    11.0

    11.0

    11.0

    11.0

    (Percent of GDP, unless otherwise indicated)

    Investment and Savings

    		                    

    Gross investment (including change in inventories)

    32.8

    27.4

    25.0

    30.3

    35.4

    34.1

    35.0

    35.5

    36.7

    37.5

    Public

    6.5

    5.5

    5.4

    7.1

    8.4

    7.0

    6.2

    6.0

    5.5

    5.2

    Private

    26.3

    21.9

    19.6

    23.2

    26.9

    27.1

    28.8

    29.5

    31.2

    32.3

    Gross savings

    26.6

    28.1

    24.9

    29.9

    33.4

    35.6

    36.2

    36.8

    37.3

    37.7

    Public

    -4.3

    0.7

    4.0

    3.0

    2.4

    4.2

    5.4

    6.1

    5.9

    5.5

    Private

    30.8

    27.5

    20.8

    26.9

    31.0

    31.4

    30.9

    30.7

    31.4

    32.2

    Central Government Finances3

    		                    

    Total revenue and grants

    25.6

    29.0

    29.1

    28.4

    28.2

    28.8

    28.6

    28.8

    27.6

    26.7

    SACU receipts

    9.1

    6.5

    5.5

    9.1

    9.6

    7.0

    6.4

    6.6

    6.3

    5.9

    Mineral revenue

    5.3

    10.6

    13.3

    7.4

    5.8

    9.5

    9.9

    9.8

    8.9

    8.4

    Total expenditure and net lending

    36.5

    31.4

    29.1

    33.1

    34.2

    30.6

    29.1

    28.3

    27.1

    26.2

    Overall balance (deficit –)

    -10.9

    -2.4

    0.0

    -4.7

    -6.0

    -1.7

    -0.5

    0.5

    0.5

    0.5

    Non-mineral non-SACU balance4

    -25.3

    -19.5

    -18.8

    -21.3

    -21.3

    -18.2

    -16.7

    -15.9

    -14.7

    -13.8

    Net Debt

    15.3

    12.8

    12.6

    16.9

    22.2

    21.6

    20.2

    18.2

    16.2

    14.6

    Total central government debt5

    18.7

    18.7

    18.1

    20.1

    22.6

    22.1

    20.7

    20.1

    20.0

    20.0

    Government deposits with the BoB6

    3.4

    5.9

    5.5

    3.3

    0.4

    0.4

    0.6

    1.9

    3.8

    5.5

    External Sector

    		                    

        Trade balance

    -13.2

    -3.5

    2.7

    -2.4

    -6.9

    -0.9

    0.2

    0.3

    0.0

    0.0

    Current account balance

    -10.3

    -1.7

    -1.2

    -0.6

    -2.0

    1.5

    1.2

    1.2

    0.6

    0.2

    Overall Balance

    -11.7

    -1.4

    1.8

    0.6

    -0.9

    1.3

    1.3

    1.5

    0.9

    0.5

    Nominal effective exchange rate (2018=100)7

    94.0

    94.1

    90.8

    86.4

    –

    –

    –

    –

    –

    –

    Real effective exchange rate (2018=100)7

    94.4

    97.7

    99.1

    94.7

    –

    –

    –

    –

    –

    –

    Terms of trade (2005=100)

    140.5

    178.9

    161.3

    152.7

    125.9

    162.2

    171.4

    176.6

    181.6

    186.6

    External central government debt5

    7.8

    8.4

    7.5

    8.9

    8.3

    6.7

    5.6

    4.8

    3.9

    3.5

    Gross official reserves (end of period, millions of USD)

    4,944

    4,806

    4,281

    4,757

    4,587

    4,879

    5,198

    5,600

    5,852

    6,014

    Months of imports of goods and services8

    6.4

    6.6

    7.1

    7.3

    6.3

    6.0

    5.8

    5.6

    5.4

    5.1

    Months of non-diamond imports8

    9.3

    8.7

    8.2

    8.8

    7.9

    7.8

    7.6

    7.5

    7.2

    7.1

    Percent of GDP

    31.2

    27.1

    21.8

    24.2

    23.3

    22.3

    21.5

    21.7

    20.8

    19.6

    Sources: Botswana authorities and IMF staff estimates and projections.

    1 This table is based on calendar years unless otherwise indicated.

    2 Based on Atlas method from the World Bank.

    3 Fiscal variables are based on fiscal years (starting on April 1).

    4 The non-mineral non-SACU balance is computed as the difference between non-mineral non-SACU revenue and total expenditure.

    5Excludes guarantees. Debt data measured at end of fiscal year.

    6Government deposits with the BoB include Government Investment Account as well as other accounts. Deposits data measured at end of fiscal year.

    7 For 2020-2023, both effective exchange rates are from IMF INS database.

    8 Based on imports of goods and services for the following year.

    [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] The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without convening formal discussions.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/09/pr-24321-botswana-imf-executive-board-concludes-2024-article-iv-consultation

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    MIL OSI Russia News –

  • MIL-OSI Russia: IMF and Ukrainian Authorities Reach Staff Level Agreement on the Fifth Review of the Extended Fund Facility (EFF) Arrangement– Ukraine

    Source: IMF – News in Russian

    September 10, 2024

    • International Monetary Fund (IMF) staff and the Ukrainian authorities have reached staff-level agreement (SLA) on the Fifth Review of the 4-year Extended Fund Facility (EFF) Arrangement. Subject to approval by the IMF Executive Board, Ukraine would have access to about US$ 1.1 billion (SDR 834.8 million).
    • Program performance remains strong. The authorities met all end-June quantitative performance criteria (QPCs) and the structural benchmark for the review. Understandings were also reached on policy settings and reforms to sustain macroeconomic stability as the war continues.
    • The economy remained resilient in the first half of 2024, but headwinds are intensifying and the outlook remains exceptionally uncertain. The continuing war will entail fresh financing needs, requiring determined policy efforts by the authorities and large-scale support from donors.

    Kyiv, Ukraine – September 10, 2024: An International Monetary Fund (IMF) team led by Mr. Gavin Gray held discussions in Kyiv with the Ukrainian authorities, during September 4-10, 2024, on the Fifth Review of the country’s 4-year EFF Arrangement. Upon the conclusion of the discussions, Mr. Gray issued the following statement:

    “IMF staff and the Ukrainian authorities have reached staff-level agreement on the Fifth Review of the EFF. The agreement is subject to approval by the IMF Executive Board, with Board consideration expected in the coming weeks.

    “Ukraine’s four-year EFF Arrangement with the IMF, continues to provide a strong anchor for the authorities’ economic program in times of exceptionally high uncertainty. Performance under the program has remained strong despite the war, with all quantitative performance criteria for end-June met, as well as the structural benchmark due for this review.

    “Russia’s war in Ukraine continues to have a devastating impact on the country and its people. Skillful policymaking, the adaptability of households and firms, and robust external financing has helped support macroeconomic and financial stability. Real GDP grew by 6.5 percent y/y in the first quarter of 2024, inflation has remained low at 5.4 percent y/y in July, and gross international reserves were adequate at US$42.3 billion as of September 1.

    “However, an economic slowdown is expected in 2024H2 due to repeated attacks on energy infrastructure and the impact of the war on labor markets and confidence; growth is expected at 3 percent for 2024. Addressing the energy deficit ahead of the winter is critical, requiring coordinated efforts, including with international partners. With the war is expected to continue through 2025, real GDP growth is projected to be between 2.5-3.5 percent. Inflation is expected to rise to around 9 percent by end-2024. Risks to the outlook remain exceptionally high.

    “The 2025 Budget needs to respect financing constraints and debt sustainability objectives, and determined domestic revenue mobilization efforts are critical. Timely and predictable external financial support, on terms consistent with debt sustainability, remains indispensable for maintaining economic stability.

    “Tax revenues need to increase in 2025 and beyond to create space for critical spending, to preserve essential buffers and restore fiscal sustainability. Achieving this will require the implementation of permanent tax policy measures and relentless efforts to close existing opportunities for tax evasion, improve compliance, and combat the shadow economy, in line with the National Revenue Strategy (NRS). Legislation to reform the Customs code should confirm the central role of the Finance Ministry in overseeing customs, while robust processes should be established for selecting a permanent head of customs as well as other key leadership roles.

    “The successful treatment of Ukraine’s Eurobonds will deliver substantial debt relief, freeing up resources for priority spending areas. Attention is now shifting to the remaining external commercial claims in the restructuring perimeter, including the GDP warrants, which should be treated in line with the program’s strategy to restore debt sustainability.

    “Upside risks to inflation have reduced the scope for further easing through the end of the year, and the monetary policy stance remains appropriate and consistent with achieving the inflation target over the medium term. The exchange rate should continue to act as a shock absorber and adjust to market fundamentals, thereby helping to safeguard external stability. Appropriate monetary policy combined with the framework of managed exchange rate flexibility should help prevent excessive exchange rate volatility and the de-anchoring of FX and inflation expectations. A judicious and staged approach to FX liberalization should continue in line with the National Bank of Ukraine’s (NBU) strategy, and consistent with the overall policy mix.

    “Effective governance frameworks are critical for durable growth, levelling the playing field, and pursuing the path to EU accession. In this regard, the independence, competence, and credibility of anti-corruption and judicial institutions should continue to be enhanced. In particular, strengthening the criminal procedural code, establishing a new high administrative court, and reforming the Accounting Chamber of Ukraine are key. The inaugural external audit of the National Anti-corruption Bureau is a short-term priority. The full supervisory board of Ukrenergo should be re-established by end-December.

    “The financial sector is stable and liquid, with reforms continuing apace despite challenges under Martial Law. To preserve financial stability and enhance preparedness for potential shocks, priorities include strengthening the bank rehabilitation framework, contingency planning, and bank governance.

    “The mission met with Finance Minister Marchenko, National Bank of Ukraine Governor Pyshnyy, other government ministers, public officials and civil society. The mission thanks them and their technical staff for their close collaboration and constructive discussions.”


    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Camila Perez

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/11/pr24326-IMF-and-Ukrainian-Authorities-Reach-Staff-Level-Agreement-Fifth-Review-EFF

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Russia: Harnessing the Power of Integration: A Path to Prosperity in Central Asia

    Source: IMF – News in Russian

    September 11, 2024

    Distinguished guests, I am delighted to be here in Bishkek on my first visit to the Kyrgyz Republic, in the heart of Central Asia.

    This region has been at the crossroads of civilizations for millennia. It is a mosaic of a rich cultural heritage, diverse peoples, and natural endowments that include spectacular mountains, lakes, rivers, and a rich biodiversity. It is also located very favorably at the crossroads of Asia and Europe. Needless to say, it is quite truly a unique region!

    As we gather here today to discuss the economic possibilities for the Caucasus and Central Asia (CCA) region, we all recognize that the world is changing rapidly, and this is a pivotal moment.

    It reminds me of another time of momentous opportunity, when the region gained independence in the 1990s. Since then, the CCA countries have made remarkable progress by unleashing their first wave of market- oriented reforms, generating higher growth and improving living standards.

    But new and unprecedented challenges have emerged. The Covid-19 pandemic and its aftermath are only just in our rear-view mirrors, as the region confronts emerging challenges from climate change to regional conflicts. The global economy has also shifted with geoeconomic fragmentation emerging as a key risk.

    The theme of my remarks today is simple: in this changing world, raising living standards in the CCA region requires bold, concerted action.

    We must strengthen stability and resilience, promote regional integration, and launch a new wave of reforms. This is how we can unleash the full economic potential of the region and its vibrant young populations, accelerate growth, create jobs and open-up opportunities for generations to come.

    Building on Macroeconomic Stability

    It is important to remind ourselves of the global context as we consider what is needed to propel the region to the next level of economic growth and prosperity.

    The world economy has shown remarkable resilience in the face of the pandemic, the war in Ukraine, and an inflation surge. Global growth bottomed out at 2.3 percent in 2022 and is expected to rebound to 3.2 percent in 2024 and 3.3 percent in 2025. Initial fears of recession and uncontrolled wage-price spirals fortunately did not materialize and there is less economic scarring from the pandemic than anticipated.

    However, medium-term growth projections remain below historical averages. Persistence of inflation in parts of the world, geopolitical conflicts, and the gaps in structural reforms needed to promote efficient resource allocation remain critical challenges. Global inflation is projected to decline to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to inflation targets before emerging market and developing economies.

    The risks to the outlook are still considerable. Notably, geopolitical tensions and regional conflicts pose downside risks, potentially causing new price spikes. Other risks include rising trade protectionism, increasing inequality, and financial market volatility. At the same time, the fact that this year saw the hottest day on record for the planet serves as a stark reminder of daunting challenges due to climate change.

    Policymakers in the CCA region deserve full credit for navigating their economies through these turbulent times and maintaining macroeconomic stability. Rapid COVID virus containment, decisive policy actions, and robust international support have led to a swift recovery, with the region growing at 4.9 percent in 2023.

    Inflation fell in most CCA countries, including in the Kyrgyz Republic, amid exchange rate appreciations and a decline in commodity prices. Inflation remained more persistent in Kazakhstan and Uzbekistan due to strong domestic demand, elevated inflation expectations, and energy price reforms in Kazakhstan.

    In the April Regional Economic Outlook, we projected a growth slowdown to 3.9 percent in 2024, but inflows of income, capital, and migrants from Russia, and rerouting of trade though the region have again boosted growth to impressive high single digits so far this year in oil importing CCA economies, including the Kyrgyz Republic. In Kazakhstan, on the other hand, growth is expected to slow to 3.1 percent in 2024 before picking up to 5.6 percent in 2025 as production increases from the Tengiz oil fields.

    Over the medium term, growth in the region is expected to moderate to under 4 percent and inflation stabilize in mid-single digits. Escalation of the war in Ukraine and the Gaza conflict, however, could cause commodity price volatility and a reversal of the recent trade patterns.

    Achieving macroeconomic stability is just a beginning. It is not sufficient to meet the aspirations of current and future generations.

    Now is the time for us to come together and take bold steps to unleash a new wave of reforms that will durably raise growth, create more jobs, and improve living standards. This requires reforms to increase productivity, strengthen resilience to shocks, and expand markets.

    While this is ambitious, it is within our reach as long as there is consensus to move ahead on this path. The current favorable macroeconomic conditions offer a promising window of opportunity because, as our research shows, structural reforms yield greater growth dividends during economic expansions.

    From Stability to Prosperity

    Historically, this region has been a vital link between Europe and Asia, serving as a conduit for trade, culture, and innovation.

    Today, regional integration can once again harness this potential. It can facilitate the freer movement of goods, services, capital, and people, increase market size and economic efficiency, and promote inclusive prosperity.

    Moreover, deepening ties within the region and global markets can foster stability and peace. Regional integration is therefore not just an opportunity, but an economic necessity.

    Reducing nontariff trade barriers, boosting infrastructure investment, and enhancing regulatory quality could increase trade by up to 17 percent on average in the CCA region, as our research shows. They can also improve market access and foster diversification.

    Transportation networks, such as roads, railways, and ports are essential to facilitate cross-border trade. The planned construction of the China-Kyrgyzstan-Uzbekistan railway is an illustration of cross-country cooperation to improve connectivity between the East and the West, supporting the region’s ambition to regain its historical role. 

    You have abundant renewable energy resources in the region, including hydro, solar and wind power. Enhanced energy cooperation will help develop regional energy markets, ensure security, and create export opportunities. Collaborative projects, such as Kambarata-1, can help diversify the energy mix and reduce dependency on fossil fuels. Critically, it can also improve water availability for neighboring countries.

    Both of these investments—the railway and Kambarata-1—hold enormous potential for regional development and connectivity. Collective effort in mobilizing expertise and financing is essential for full realization of this potential while sustaining macroeconomic stability that has been a hallmark of the region’s recent achievements.

    This brings me to the importance of regional cooperation in addressing the risks of climate change, which requires immediate and resolute actions from all of us.

    A Path to a Low-Carbon Future

    The CCA region is highly vulnerable to climate change. Temperatures are rising fast, and droughts and floods have become more frequent and severe, causing immense damage to crops, infrastructure and livelihoods. We estimate that unabated climate change could cause a loss of annual output of nearly 6.5 percent in the region by 2060.

    The good news is that these losses could be substantially reduced by joint actions to cut emissions, adapt to climate change, and manage the risks of transition to a low-carbon economy.

    The region must collaborate to promote green technologies, improve energy efficiency, and manage natural resources sustainably. Scaling back energy subsidies and introducing carbon-pricing mechanisms can contribute to global mitigation efforts. In this respect, the Kyrgyz Republic’s commitment to raising electricity tariffs and gradually eliminating energy subsidies is a shining example.

    Such decisive measures can enhance resilience to climate change and create higher-paying jobs–green jobs that pay 7 percent more on average.

    Reforms for Enhanced Growth and Stability

    To fully realize the benefits of regional integration, structural reforms are essential. Our research finds that such reforms could lift output by 5-7 percent in the next 4 to 6 years.

    Let me highlight a few key areas where structural reforms can help achieve this boost:

    A vibrant private sector is the engine of growth. Strengthening governance, property rights and the rule of law, and reducing the state footprint in the economy by simplifying regulations, fostering competition, and combating corruption will build confidence and attract private investment.

    Importantly, we find that governance reforms yield the highest growth dividends and amplify the positive impacts of other reforms. The implication is clear: governance reforms should be prioritized and accompanied by other reforms.

    Prudent management of state-owned enterprises (SOEs) is also critical. While some SOEs serve essential public-policy objectives and should remain in public hands, it is crucial that they operate efficiently and do not crowd out the private sector.

    In most cases, however, the private sector is more efficient in delivering goods and services and creating jobs. Therefore, privatization of non-essential SOEs can lead to more dynamic and competitive markets, enhancing growth and resilience.

    Investments in education, health, and digital infrastructure are vital to boost productivity. The full potential of the region’s young and dynamic population can only be unleashed through high quality education and healthcare.

    Enhancing digital infrastructure also offers vast opportunities for productivity growth, especially in a region with young people eager to embrace new technologies.

    As the CCA starts to reap the benefits of these reforms, it is equally important to ensure that growth benefits all segments of society, and the vulnerable are shielded from the impacts of energy subsidy reforms and climate change. Well-targeted social assistance is essential for reducing poverty and inequality.

    Benefits work best when they incentivize work and are targeted and timely to support adversely affected households during economic downturns but scale back when the recovery takes hold. Empowering women and promoting gender equality can unlock significant economic potential and contribute to more inclusive growth.

    IMF’s Commitment to CCA Stability and Growth

    The IMF has been a steadfast partner of the CCA region since its initial days of independence. We provide policy advice, financing, and technical assistance to help our members in the region stabilize their economies, develop sustainable growth, and reduce poverty.

    The IMF stands by all its member countries in both prosperous and challenging times. For example, our assistance during the COVID-19 pandemic helped our membership weather the crisis and lay the groundwork for recovery.

    To better support our member in the CCA, the IMF established the Caucasus, Central Asia, and Mongolia Regional Capacity Development Center. This center provides technical assistance and training to help countries in the region build stronger institutions and implement sound economic policies. It also represents our long-term commitment to the region’s development.

    Conclusion

    Let me conclude. Since its early days of independence, the CCA region has shown tremendous perseverance in laying the foundation of a prosperous, peaceful society.

    Today, you are confronting new global challenges that test the resilience and adaptability of your economies. Embracing continued market-oriented reforms is the most effective strategy to strengthen your economies. Now is the time to forge ahead with bold spirits.

    The IMF will continue to support your efforts, working in partnership for the benefit of all people in this region and beyond.

    Thank you.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Angham Al Shami

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/11/sp09112024-harnessing-power-integration-path-prosperity-central-asia-dmd-bo-li

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with Denmark

    Source: IMF – News in Russian

    September 13, 2024

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Denmark.

    The Danish economy has continued to expand at a robust pace, driven by an exceptional surge in the pharmaceutical. In contrast, the rest of the economy has remained relatively subdued, aside from the maritime and information and communication technology industries, reflecting sluggish demand. Meanwhile, with a decline in global energy prices and lackluster domestic demand, inflationary pressures have largely dissipated in recent months.

    Growth is anticipated to gradually moderate in the near term but become more balanced across industries. Output growth is projected to moderate from 2.5 percent in 2023 to 1.9 percent in 2024 and to 1.6 percent in 2025. The growth of pharmaceutical and maritime exports will taper off, while that of the rest of the economy will be bolstered by a pickup in external demand, improved consumer purchasing power, and further easing of financial conditions. The reopening of the Tyra natural gas will also contribute to growth in 2024 and 2025. Inflation might temporarily edge up in the coming months due to the lagged effect of last year’s wage collective bargaining agreement before stabilizing at around 2 percent during the second half of 2025. The balance of risks to growth is skewed to the downside, with primary downside risks including a global slowdown, the possible escalation of the conflict in Gaza and Israel and Russia’s war in Ukraine, and deepening geoeconomic fragmentation.

    Executive Board Assessment[2]

    In concluding the 2024 Article IV consultation with Denmark, Executive Directors endorsed staff’s appraisal, as follows:

    Executive Directors agreed with the thrust of the staff appraisal. They commended Denmark’s remarkable resilience amidst multiple shocks, underpinned by sound policies, strong governance, and robust institutions. Noting a positive outlook with more balanced growth and stabilizing inflation, Directors cautioned that risks—including from a global growth slowdown, geoeconomic fragmentation, and demographic pressures—are tilted to the downside. To navigate these challenges and maintain Denmark’s welfare state, they emphasized the importance of continued sound macroeconomic management, supported by structural reforms to boost productivity, and lift long‑term growth.

    Directors commended Denmark’s robust public finances. They concurred that fiscal policy should consider cyclical conditions and long‑term spending needs. In this regard, Directors agreed that fiscal policy should avoid adding to capacity pressures in the short term. They supported the slight easing of the fiscal stance for 2025 and beyond to accommodate the increases in costs related to health, climate, and defense. To safeguard long‑term fiscal sustainability, Directors encouraged the authorities to closely monitor fiscal pressures and take additional adjustment measures if necessary.

    While noting that the financial system remains sound, Directors recommended that the authorities continue to closely monitor risks, in particular, related to the commercial real estate sector. They welcomed the recent tightening of macroprudential policies and suggested considering additional borrower‑based measures to address pockets of vulnerabilities.  Continued collaboration on the Nordic‑wide bank stress tests would also be important. Directors encouraged the authorities to further strengthen AML/CFT and cybersecurity frameworks.

    Directors agreed that systemic risks arising from nonbank financial institutions (NBFIs) warrant closer monitoring and enhanced customer protection. They encouraged the authorities to develop a systemic risk assessment encompassing banks and NBFIs and to finalize a supervisory order to enhance customer protection.

    Directors emphasized the importance of continued reform efforts to increase the labor supply, address skills mismatches, and better integrate migrants.  They were encouraged by the authorities’ strong commitment to further enhance digitalization, innovation, and business dynamism to boost productivity growth. Directors welcomed Denmark’s commitment to transparent free‑trade policies within the multilateral and rules‑based trading system.

    Directors commended the authorities’ ambitious climate change mitigation targets and the agreement to reduce emissions in the agriculture sector. They encouraged updating the estimates of the investment needs for climate adaptation.

    Denmark: Selected Economic Indicators

    2023

    2024

    2025

    proj.

    Output

    Real GDP growth (%)

    2.5

    1.9

    1.6

    Employment

    Unemployment rate (%)

    2.8

    2.9

    3.0

    Prices

    Inflation (%, average)

    3.4

    1.8

    2.2

    General Government Finances

    Revenue (% GDP)

    50.1

    49.6

    48.8

    Expenditures (% GDP)

    46.8

    47.8

    48.0

    Fiscal balance (% GDP)

    3.3

    1.8

    0.9

    Public debt (% GDP)

    29.7

    28.2

    27.3

    Money and Credit

    Domestic credit growth (%)

    3.2

    …

    …

    3-month interbank interest rate (%)

    3.4

    …

    …

    10-year government bond yield (%)

    2.4

    …

    …

    Balance of Payments

    Current account (% GDP)

    9.8

    9.0

    9.3

    International reserves (% change)

    1.3

    …

    …

    Exchange Rate

    ULC-based REER (% change)

    -0.4

    …

    …

    Sources: Statistics Denmark; OECD; and IMF staff calculations.

     

    [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] 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: Boris Balabanov

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/12/pr-24327-denmark-imf-executive-board-concludes-2024-article-iv-consultation

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with Kingdom of Lesotho

    Source: IMF – News in Russian

    September 11, 2024

    • Lesotho’s GDP growth has improved modestly, picking up to 2.2 percent in the fiscal year ending in March 2024. Inflation increased in the second half of 2023, peaking at 8.2 percent in January 2024. But upward pressures have eased, and inflation has since fallen to 6.5 percent in June.
    • The outlook for Lesotho’s fiscal and external balances has improved significantly owing to windfall transfers from the Southern African Customs Union (SACU) and renegotiated water royalties.
    • In this context, and amid Lesotho’s sizable development needs, a key challenge for the authorities will be to ensure that this revenue is saved wisely and spent strategically.

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with the Kingdom of Lesotho.

    GDP growth picked up modestly to 2.2 percent in 12-month period ending March 2024, compared with 1.6 percent a year earlier. This largely reflects accelerated construction from the Lesotho Highlands Water Project. Nonetheless, unemployment remains high, diamond and textile exports have been sluggish, and an exceptional dry season increased food-security concerns across the country.

    Headline inflation reached 6.5 percent in June, up from 4.5 percent in July 2023, though down from a peak of 8.2 percent in January 2024. The increase in inflation was largely due to exogenous factors that will most likely fade going forward.

    Lesotho registered a sizable fiscal surplus of 6.1 percent of GDP in during the fiscal year ending March 2024. In a change from past practice, transitory SACU transfers
    (10.4 percent of GDP higher than in FY22/23) were not accompanied by a parallel increase of the public wage bill. Instead, the authorities used the SACU proceeds to reduce arrears and rebuild deposits at the Central Bank.

    In support of the Loti’s peg to the Rand, the Central Bank of Lesotho has kept the policy rate steady at 7.75 percent since May 2023, in line with policy rates in South Africa.

    Financial conditions remain stable—private sector credit growth picked up to 12.5 percent in FY23/24, mainly due to construction, while the nonperforming loans have eased to
    3.8 percent of total loans as of 2023 Q4.

    Growth is projected to peak in the fiscal year ending in March 2025 (at 2.7 percent), while inflation is expected to ease slowly. Another year of windfall SACU transfers (6 percentage points of GDP above the 10-year average) will again bolster fiscal and external balances in FY24/25. These transfers are projected to fall sharply starting in FY25/26, though higher water royalties will help fill the gap. As a result, the fiscal balance is projected at a surplus of around 1 percent of GDP over the medium term, with the current account deficit at a modest
    2.6 percent.

    The authorities are encouraged to continue their prudent fiscal approach, ensuring that additional revenues are saved wisely and spent strategically, while also pushing ahead with reforms to support private sector-led growth.

    Executive Board Assessment[2]

    Directors agreed with the thrust of the staff appraisal. They welcomed the recent pickup in growth but concurred that Lesotho’s economy faces substantial challenges, including high unemployment, widespread poverty, and sluggish growth. They also noted the risks posed by global growth shocks, extreme weather events, uncertain transfers from the South African Customs Union (SACU), and commodity price volatility. Against this background, Directors welcomed the authorities’ commitment to strengthening policy frameworks, supported by Fund capacity development as needed.

    Directors emphasized the need for continued fiscal prudence to strengthen foreign exchange reserve coverage, safeguard the peg, and preserve medium-term debt sustainability. They agreed that containing the public wage bill, increasing spending efficiency, and prioritizing social spending on the most vulnerable remain critical. Given increased water royalties, Directors encouraged the authorities to establish a well-governed savings framework anchored by a credible fiscal rule to build buffers and support Lesotho’s long-term development objectives.

    Directors agreed that public financial management (PFM) should be strengthened. They encouraged passage of PFM-related legislation, and improved budget processes, strengthened internal controls, and enhanced financial reporting. Directors also underscored the importance of boosting public investment efficiency, through a prioritized capital project pipeline with enhanced project management capacity.

    Directors concurred that monetary policy should focus on price stability and safeguarding the exchange rate peg. They noted the slowdown in inflation, but urged the authorities to monitor price dynamics closely and stand ready to adjust monetary policy if inflationary pressures reemerge. Directors encouraged the authorities to improve central bank governance and coordinate closely across institutions on fiscal and monetary policies.

    Directors noted that the financial sector remains stable and encouraged continued monitoring of risks, including from the nonbank financial sector. They concurred that an updated national financial inclusion strategy would be key to improving financial intermediation and supporting private sector growth. They welcomed the progress made in strengthening legal and regulatory frameworks for financial stability and AML/CFT.

    Directors strongly encouraged the authorities to implement much-needed structural reforms to catalyze job-rich inclusive growth, including by improving the business environment, strengthening governance, and reducing corruption risks. They lauded the authorities’ commitment to improving data quality and timeliness to support policymaking.

    Lesotho: Selected Economic Indicators, 2020/21–2029/301
     

    2020/21

    2021/22

    2022/23

    2023/24

    2024/25

    2025/26

    2026/27

    2027/28

    2028/29

    2029/30

    Act.

    Act.

    Act.

    Est.

    Projections

    (12-month percent change, unless otherwise indicated)

    National Account and Prices

    		                    

    GDP at constant prices (including LHWP-II)

    -5.3

    1.7

    1.6

    2.2

    2.7

    2.4

    1.9

    2.1

    2.1

    2.1

    GDP at constant prices (excluding LHWP-II)

    -3.0

    4.4

    1.4

    1.5

    1.6

    1.7

    1.8

    1.9

    1.9

    2.0

    GDP at market prices (Maloti billions)

    34.2

    36.0

    38.5

    41.5

    45.2

    48.8

    52.4

    56.1

    60.0

    64.4

    GDP at market prices (US$ billions)

    2.1

    2.4

    2.3

    2.2

    2.3

    2.4

    2.5

    2.7

    2.8

    2.9

    Consumer prices (average)

    5.4

    6.5

    8.2

    6.5

    6.7

    5.8

    5.6

    5.3

    5.1

    5.1

    Consumer prices (eop)

    6.5

    7.2

    6.8

    7.4

    6.0

    5.5

    5.4

    5.3

    5.0

    5.0

    GDP deflator

    5.2

    3.5

    5.3

    5.4

    6.0

    5.4

    5.3

    4.9

    4.9

    5.1

    External Sector

    		                    

    Terms of trade (“–” = deterioration)

    3.5

    -1.6

    -3.2

    -5.9

    -2.7

    0.6

    0.1

    -0.6

    0.1

    0.1

    Average exchange rate

    		                    

    (Local currency per US$)

    16.4

    14.9

    17.0

    …

    …

    …

    …

    …

    …

    …

    Nominal effective exchange rate change (– depreciation)2

    -8.7

    6.3

    -3.0

    …

    …

    …

    …

    …

    …

    …

    Real effective exchange rate (– depreciation)2

    -6.0

    8.7

    -1.9

    …

    …

    …

    …

    …

    …

    …

    Current account balance (percent of GDP)

    -5.7

    -9.0

    -13.8

    -0.2

    -0.7

    -2.3

    -2.3

    -3.2

    -2.9

    -2.5

    (excluding LHWP-II imports, percent of GDP)

    -2.3

    -6.5

    -9.6

    6.4

    3.6

    1.7

    0.1

    -1.5

    -1.9

    -1.6

    Gross international reserves

    		                    

    (Months of imports)

    4.1

    4.3

    4.0

    4.3

    4.9

    5.7

    6.2

    6.3

    6.4

    6.5

    (excluding imports for LHWP-II, months of imports)

    4.2

    4.5

    4.3

    4.5

    5.0

    5.9

    6.3

    6.4

    6.4

    6.5

    Money and Credit

    		                    

    Net international reserves

    		                    

    (US$ millions)

    718

    846

    671

    755

    916

    1,121

    1,258

    1,343

    1,417

    1,513

    (Percent of M1 Plus)

    109

    127

    111

    114

    137

    163

    179

    185

    190

    197

    (US$ millions, CBL calculation)

    777

    843

    698

    755

    843

    …

    …

    …

    …

    …

    (Percent of M1 Plus, CBL calculation)

    118

    127

    116

    114

    126

    …

    …

    …

    …

    …

    Domestic credit to the private sector

    -3.0

    6.7

    8.7

    12.5

    9.0

    8.1

    8.0

    8.3

    7.4

    7.7

    Reserve money

    16.5

    1.0

    24.5

    24.0

    1.9

    1.2

    1.6

    1.6

    2.1

    2.3

    Broad money

    12.2

    0.0

    8.7

    15.2

    3.9

    5.0

    5.1

    5.4

    5.1

    5.4

    Interest rate (percent)3

    3.8

    3.5

    3.5

    4.7

    …

    …

    …

    …

    …

    …

    (Percent of GDP, unless otherwise indicated)

    Public Debt

    54.7

    58.4

    64.5

    61.5

    59.9

    59.7

    59.8

    59.8

    59.5

    59.5

    External public debt

    42.9

    42.3

    47.2

    47.8

    46.6

    46.4

    46.2

    46.2

    46.0

    46.0

    Domestic public debt

    11.7

    16.1

    17.3

    13.7

    13.3

    13.3

    13.5

    13.5

    13.5

    13.5

    Central Government Fiscal Operations

    		                    

    Revenue

    54.4

    48.8

    44.6

    56.5

    63.4

    61.1

    57.8

    55.6

    55.6

    54.8

    Domestic revenue (excluding SACU transfers and grants)

    25.1

    27.2

    27.6

    29.3

    31.0

    36.6

    34.9

    33.7

    33.7

    33.7

    SACU transfers

    26.2

    16.7

    14.0

    24.5

    25.6

    19.3

    18.5

    17.5

    17.5

    17.5

    Grants

    3.1

    4.9

    3.0

    2.8

    6.9

    5.2

    4.3

    4.3

    4.3

    3.6

    Recurrent expenditure

    43.0

    38.6

    40.5

    40.8

    42.0

    40.9

    40.9

    40.8

    40.8

    40.8

    Of which: wages, including social contributions

    17.6

    17.0

    18.0

    17.1

    16.8

    16.7

    16.6

    16.4

    16.4

    16.4

    Capital expenditure

    11.4

    15.5

    9.6

    9.6

    16.3

    14.3

    13.9

    14.0

    14.1

    13.5

    Additional fiscal measures

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    Overall balance

    0.0

    -5.4

    -5.5

    6.1

    5.1

    5.8

    3.0

    0.8

    0.6

    0.5

    (excluding SACU transfers and grants)

    -29.3

    -27.0

    -22.5

    -21.1

    -27.3

    -18.6

    -19.8

    -21.1

    -21.3

    -20.6

       Operating balance

    0.0

    -5.4

    -5.5

    6.1

    5.1

    5.8

    3.0

    0.8

    0.6

    0.5

    Primary balance

    1.6

    -4.0

    -3.6

    8.1

    6.7

    7.5

    4.8

    2.7

    2.6

    2.6

    (excluding SACU transfers and grants)

    -27.7

    -25.6

    -20.6

    -19.2

    -25.7

    -17.0

    -18.0

    -19.2

    -19.3

    -18.6

    Statistical discrepancy

    -0.6

    0.6

    2.2

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    Sources: Lesotho authorities, World Bank, and IMF staff calculations.

    1 The fiscal year runs from April 1 to March 31.

    		                    

    2 IMF Information Notice System trade-weighted; end of period.

    		                  

    3 12-month time deposits rate.

    		                    

    [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] 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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/10/pr-24324-lesotho-imf-executive-board-concludes-2024-article-iv-consultation

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation Discussions with the Kingdom of the Netherlands—Curaçao and Sint Maarten

    Source: IMF – News in Russian

    September 17, 2024

    Washington, DC: On September 10, 2024, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation discussions[1] with the Kingdom of the Netherlands—Curaçao and Sint Maarten and endorsed the staff appraisal without a meeting on a lapse-of-time basis[2]. These consultation discussions form part of the Article IV consultation with the Kingdom of the Netherlands.

    Context. Curaçao and Sint Maarten have continued to experience a vigorous post-pandemic recovery underpinned by strong stayover tourism, which is outperforming Caribbean peers. Headline inflation has declined rapidly led by international oil price developments, notwithstanding a recent uptick, while core inflation remains elevated. In both countries, current account deficits improved markedly from pandemic years but remain high. Fiscal positions remained strong and in compliance with the fiscal rule. The landspakket, the structural reform package agreed with the Netherlands in 2020, continues to guide both countries’ reform agenda.

    Curaçao outlook. Growth is expected to accelerate in 2024 before gradually converging to its potential over the medium term. Stayover tourism supported by fiscal expansion is projected to drive economic growth at a robust 4.5 percent in 2024 due to new airlifts and further expansion in hotel capacity. Growth is then expected to moderate to reach 1.5 percent over the medium term, given subpar investment and productivity growth coupled with sustained population decline and beginning saturation in tourism flows, assuming no further reforms and diversification. Headline inflation is projected to decline mildly to 3.2 percent in 2024 from 3.5 percent in 2023, but to continue falling towards its steady state of around 2 percent by 2027 reflecting international price developments. Fiscal balances would be guided by the fiscal rule and debt would continue to decline, while surpluses narrow as investments return and social spending pressures mount. The current account deficit is expected to improve in the medium term but would remain elevated.

    Sint Maarten outlook. Growth is expected to moderate in the medium term as tourism recovery and the reconstruction taper off. Growth is expected to be 2.7 percent in 2024 and 3 percent in 2025, supported by a delayed recovery in cruise passengers towards pre-pandemic levels. However, the near-term outlook is threatened by the electricity load shedding (since June) and political instability. From 2026 onwards, growth is expected to gradually converge towards 1.8 percent as the stimulus from the reconstruction peters out, and tourism growth becomes constrained by the island’s carrying capacity and ailing infrastructure. Inflation is expected to remain broadly contained while remaining vulnerable to international price developments. Over the medium term, the government will continue to comply with the golden fiscal rule and capacity constraints will continue to weigh on public investment.

    Monetary Union. Monetary policy is appropriately targeted towards maintaining the peg. Efforts to absorb excess liquidity should continue while closely monitoring developments in core inflation driven by tourism-related services. The financial sector is sound and risks to financial stability have substantially diminished as the CBCS advances its reform agenda. Banks are highly liquid and adequately capitalized and systemic risks are contained. Building on the CBCS’s strong progress in strengthening supervisory and regulatory capacity, and the recent resolution agreement for ENNIA, staff welcomes CBCS’s continued efforts in its reform agenda, including financial stability and crisis management.

    Executive Board Assessment[3]

    Curaçao

    Curaçao’s economy successfully embraced the pivot towards tourism-led growth, giving rise to a strong near-term outlook. After losing key traditional industries, Curaçao quickly and successfully leveraged its tourism potential to grow, attract new hotels, and create jobs. While this is serving the economy well in the near term – growth is projected to accelerate to 4½ in 2024 – structural shifts have started to emerge, including a low-skilled, informal recovery of the labor market amidst low investment in non-tourist sectors. Growth is expected to moderate over the medium term given saturation in tourism flows, sustained population decline, and subpar investment. Notwithstanding the economy’s recent overperformance, inflation declined significantly and only reversed some of its gains recently on the back of higher international oil prices and unfavorable base effects. Inflation is expected to gradually converge towards its steady state rate of around 2 percent. Fiscal policy remains guided by the fiscal rule, albeit past surpluses are expected to unwind, allowing for the reversal of pandemic wage cuts and a return of public investments. The current account markedly improved thanks to lower oil prices but the deficit remains elevated.

    Risks to the outlook are broadly balanced. Growth slowdown in major economies could negatively impact tourism receipts, while positive surprises could boost foreign demand. Domestically, a successful expansion of renewable energy and faster-than-expected development of hotel capacity and yachting marinas would boost growth, while delays in public investment and more persistent core inflation could dent tourist experience and competitiveness.

    Efforts to safeguard recently created fiscal space are welcome. Overall surpluses in 2022 and 2023 helped reduce debt and granted access to favorable financing terms from the Netherlands. Safeguarding this space and avoiding procyclical impetus is warranted, including through more gradual unwinding of pandemic wage cuts in 2024, prudent liquidity management to repay a bullet loan in 2025, and general efforts to strengthen tax administration, review procurement and domestic arrears management, and streamline transfers to public entities. Ensuing room for maneuver could be used for priority investments, including for climate adaptation, guided by a medium-term fiscal framework steering towards the island’s debt anchor.

    Healthcare and pension reforms are needed to lock in a sustainable expenditure path and mitigate medium-term fiscal risks. Growing health and old-age pension deficits, exacerbated by an aging population, pose risks to the sustainability of public finances. Recent initiatives to incentivize the use of generics and raise the pension age are commendable, and more needs to be done to put the system on a sustainable path. Staff sees a broad range of efficiency gains in health spending, including lowering pharmaceuticals and laboratory costs and enhancing primary care’s gatekeeping role. Reforms on the revenue side, including broadening the contributor base and increasing co-payments, are politically more difficult.

    Sustaining the positive growth momentum in the medium term requires investments in capital and labor and resolving existing growth bottlenecks. First, moving up the value chain with high-end resorts and complementary recreational activities would help sustain valuable income growth from tourism but requires scaling up investments in infrastructure and deregulating the transportation sector. Second, further investments in electricity grid and energy storage, as well as a revised pricing strategy, are needed to accompany the ongoing energy transition and reap its vast benefits, including lower fuel imports, emissions, and electricity prices. The envisaged floating offshore wind park for hydrogen production would be a game changer for the island. Boosting public investment to achieve these objectives, however, requires ramping up capacity in planning and execution. Third, to further stimulate growth and offset the sustained population decline, formal labor markets and skills would need to be strengthened. And fourth, continued improvements in the business climate in line with the landspakket’s economic reform pillar could help overcome decade-low productivity growth.

    Important strides in reducing ML/FT vulnerabilities are welcome and could be built upon. The draft online gaming law, implementation of risk-based supervision, and a new law to address EU grey listing and enable automatic information exchange represent important strides in enhancing Curaçao’s defenses against ML/FT and related reputational risks. Curaçao can further improve upon these important accomplishments, including by passing and implementing the aforementioned legislations in a timely manner and enhancing coordination and monitoring across relevant agencies.

    Sint Maarten

    Near-term growth is strongly anchored but preserving the positive momentum hinges on investments to revamp an ailing infrastructure and improve tourism’s value added. The economic recovery is well underway, underpinned by tourism recovery and the reconstruction. GDP is expected to surpass its pre-Irma level in 2025. However, without investments to upgrade an ailing infrastructure, growth will falter as the island approaches its maximum carrying capacity. Strategies should continue to focus on enhancing tourist’s experience, differentiating from other Caribbean destinations, and improving tourism’s value added.

    A comprehensive strategy is required to durably resolve the electricity crisis. Mobile electricity generators have been leased and efforts to replace old engines are underway. Once the immediate crisis is resolved, efforts should be devoted towards developing a detailed masterplan for the energy transition with targets, projects, costing, timeline, and a comprehensive assessment of ancillary investments. The Trust Fund could receive a new mandate, beyond 2028, to operate as a public investment agency in charge of planning, securing the financing, and implementing plans for the energy transition.

    Revenue mobilization efforts are essential to ensure fiscal sustainability. Plans to lower tax rates, to make the country more competitive with neighboring islands, should be avoided as this would reduce government’s revenues and endanger fiscal sustainability. Instead, additional revenues are required to satisfy the fiscal rule, service loans with the Netherlands, raise public wages to attract and retain talent, increase transfers to cover public health costs, and clear public arrears with the SZV. Envisaged reforms to enhance the tax administration and to digitize and interface government systems should be complemented with plans to i) tax casinos’ profits, turnover, and winnings; ii) enforce the lodging tax on short-term rentals, and income and profit tax on the proceeds from such rentals; iii) update the price of land leases; and iv) institute a tourist levy at the airport.

    Without reforms, the healthcare and pensions funds are unsustainable. Health premiums and government transfers are insufficient to cover health costs, which are being cross-financed with pension savings. With unchanged policies, given population aging and rising administrative costs, both health and pensions funds will run deficits by 2027, and the SZV would deplete its liquid assets by 2027. By 2030, the government would need to transfer about 4 percent of GDP per year to sustain the system. Reforms are urgently needed to contain health costs including: i) introducing the General Health Insurance, ii) rationalizing benefits, iii) extending the use of generics, iv) optimizing referrals, v) strengthening preventing care, and vi) adopting out-of-pocket payments. Given the rapid pace of population aging, additional measures such as increasing the contribution rates and linking the retirement age to life expectancy, should also be considered.

    Strengthening the implementation of AML/CFT measures is necessary to increase effectiveness of the AML/CFT regime. Laws for an effective AML/CFT framework were approved but their implementation is lagging. UBO registration is yet to begin, while the investigation and prosecution of suspicious activities is lacking. Granting the FIU full independence to investigate and prosecute cases, and increasing its budget for recruitment and operations could strengthen the AML/CFT framework.

     

    The Monetary Union of Curaçao and Sint Maarten

    The current account deficit is expected to improve in the medium term but would remain elevated, while international reserves are expected to remain broadly stable. Large CADs in both countries are expected to improve and remain well-financed, leading to a stable and broadly adequate level of international reserves over the medium term. Curaçao’s external position is assessed to be weaker than implied by fundamentals and desired policy settings due to an elevated CAD and sustained appreciation of the real effective exchange rate, while that of Sint Maarten is considered in line with fundamentals and desired policy settings.

    Monetary policy is appropriately targeted towards maintaining the peg. In line with global monetary policy tightening, the CBCS increased its benchmark rate during 2022-23 and has kept it unchanged since September 2023. Efforts to absorb excess liquidity should continue while closely monitoring developments in core inflation driven by tourism-related services. Even though credit growth declined further and reached negative territory in real terms amidst monetary tightening, the transmission mechanism of monetary policy remains weak. Structural factors include the absence of interbank and government securities markets. The continued increase in mortgages, the only credit component to display growth, was accompanied by a broadly stable loan-to-value ratio on aggregate, albeit more granular data is needed to monitor potential vulnerabilities. Further acceleration in mortgage credit could warrant introducing a macro prudential limit below the currently by banks self-imposed ratio.

    The financial sector is sound and risks to financial stability have substantially diminished as the CBCS advances its reform agenda. Banks are highly liquid and adequately capitalized and systemic risks are contained. Near-term risks to financial stability have substantially diminished with the agreement for a controlled wind-down of ENNIA and the start of the restructuring process, as well as the CBCS’s continued improvements in supervision, regulation, and governance. Staff welcomes CBCS’s initiatives to establish a financial stability committee, further refine stress-testing, and enhance crisis management capacities, including lender of last resort and a deposit insurance scheme.

    Table 1. Curaçao: Selected Economic and Financial Indicators, 2020–25

    (Percent of GDP unless otherwise indicated)

     

    2020

    2021

    2022

    2023

    2024

    2025

    Prel.

    Prel.

    Prel.

    Prel.

    Proj.

    Real Economy

    Real GDP (percent change)

    -18.0

    4.2

    7.9

    4.2

    4.5

    3.5

    CPI (12-month average, percent change)

    2.2

    3.8

    7.4

    3.5

    3.2

    2.4

    CPI (end of period, percent change)

    2.2

    4.8

    8.4

    3.1

    3.2

    2.4

    GDP deflator (percent change)

    2.2

    3.8

    4.0

    3.5

    3.2

    2.4

    Unemployment rate (percent) 1/

    13.1

    13.5

    7.2

    7.0

    6.9

    6.6

    Central Government Finances 2/

    Net operating (current) balance

    -15.0

    -10.6

    0.7

    0.6

    0.0

    0.5

    Primary balance

    -13.2

    -8.8

    2.0

    2.5

    2.0

    1.9

    Overall balance

    -14.5

    -10.0

    1.0

    1.3

    0.1

    0.5

    Central government debt 3/

    87.1

    90.3

    81.6

    70.8

    65.4

    61.1

    General Government Finances 2, 4/

    Overall balance

    -15.7

    -10.4

    0.3

    0.9

    -0.3

    -0.1

    Balance of Payments

    Current account

    -27.2

    -18.6

    -26.8

    -19.7

    -17.9

    -16.5

    Goods trade balance

    -37.0

    -41.6

    -47.9

    -38.3

    -40.4

    -39.9

       Exports of goods

    10.7

    12.5

    18.0

    16.9

    16.5

    16.2

       Imports of goods

    47.7

    54.1

    65.9

    55.2

    56.9

    56.1

    Service balance

    9.6

    21.7

    20.5

    18.4

    22.6

    23.7

       Exports of services

    29.3

    37.2

    48.6

    46.6

    50.3

    51.3

       Imports of services

    19.7

    15.6

    28.1

    28.2

    27.7

    27.6

    External debt

    197.3

    194.8

    180.9

    177.1

    169.1

    164.0

    Memorandum Items

    Nominal GDP (millions of U.S. dollars)

    2,534

    2,740

    3,075

    3,318

    3,578

    3,789

    Per capita GDP (U.S. dollars)

    16,492

    18,135

    20,648

    22,160

    23,775

    25,065

    Credit to non-government sectors (percent change)

    0.1

    -9.7

    3.2

    2.5

    …

    …

    Sources: The Curaçao authorities and IMF staff estimates and projections.

    1/ Staff understands that the unemployment rate of 7.0 percent published in the 2023 Census data is not comparable to the historically published unemployment rates from the labor force survey by the Curacao Bureau of Statistics. As such, staff estimated the unemployment rate and overall labor force for the period of 2012 to 2022. Staff understands that the Curacao Bureau of Statistics intends to revise the historical series in the near future.

    2/ Defined as balance sheet liabilities of the central government except equities. Includes central government liabilities to the social security funds.

    3/ Budgetary central government consolidated with the social security fund (SVB).

    4/ The latest available datapoint is as of 2018. Values for 2019-2023 are IMF staff estimates based on BOP flow data.

     

     

    Table 2. Sint Maarten: Selected Economic Indicators 2020–25

    (Percent of GDP unless otherwise indicated)

     

    2020

    2021

    2022

    2023

    2024

    2025

    Est.

    Est.

    Est.

    Est.

    Proj.

    Real Economy

     

    		    

    Real GDP (percent change) 1/

    -20.4

    7.1

    13.9

    3.5

    2.7

    3.0

    CPI (12-month average, percent change)

    0.7

    2.8

    3.6

    2.1

    2.5

    2.3

    Unemployment rate (percent) 2/

    16.9

    10.8

    9.9

    8.6

    8.5

    8.2
       

    Government Finances

     

    		    

    Primary balance excl. Trust Fund operations 3/

    -8.7

    -5.4

    -0.6

    1.5

    0.9

    0.9

    Current balance (Authorities’ definition) 4/

    -9.6

    -6.3

    -1.5

    0.5

    -0.1

    0.0

    Overall balance excl. TF operations

    -9.3

    -5.9

    -1.1

    1.0

    0.2

    0.2

    Central government debt 5/

    56.1

    55.3

    49.3

    49.0

    46.2

    44.1
       

    Balance of Payments

     

    		    

    Current account

    -25.5

    -24.6

    -3.9

    -7.5

    -7.8

    -3.0

    Goods trade balance

    -40.7

    -49.8

    -59.2

    -59.3

    -62.4

    -60.5

       Exports of goods

    11.8

    11.4

    14.1

    14.8

    13.1

    11.2

       Imports of goods

    52.4

    61.2

    73.2

    74.1

    75.5

    71.7

    Service balance

    20.2

    33.1

    62.8

    60.3

    62.6

    65.2

       Exports of services

    34.4

    51.0

    78.7

    81.4

    81.5

    83.9

       Imports of services

    14.3

    17.9

    15.9

    21.1

    18.9

    18.7

    External debt 6/

    274.3

    253.7

    213.6

    206.3

    200.8

    194.0
       

    Memorandum Items

    		    

    Nominal GDP (millions of U.S. dollars)

    1,141

    1,268

    1,479

    1,563

    1,645

    1,733

    Per capita GDP (U.S. dollars)

    26,796

    29,646

    34,437

    36,088

    37,570

    39,160

    Credit to non-gov. sectors (percent change)

    2.4

    1.3

    4.5

    1.0

    …

    …
               

       Sources:

    		            

       1/ Central Bank of Curacao and Sint Maarten and IMF staff estimates.

    		            

       2/ The size of the 2022 labor force reported by the 2023 Census was adjusted to ensure consistency with the reported total population.

       3/ Excludes Trust Fund (TF) grants and TF-financed special projects.

    		  

       4/ Revenue excl. grants minus interest income, current expenditure and depreciation of fixed assets.

    		  

       5/ The stock of debt in 2018 is based on financial statements. Values in subsequent years are staff’s estimates and are higher than the values under authorities’ definition in quarterly fiscal reports.

       6/ The latest available datapoint is as of 2018. Values for 2019-2022 are IMF staff estimates based on BOP flow data.

    [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] The Executive Board takes decisions under its lapse-of-time-procedure when the Board agrees that a proposal can be considered without convening formal discussions.

    [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: Reah Sy

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/17/pr-24330-curacao-and-sint-maarten-imf-board-concludes-2024-article-iv-consultation-discussions

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Asia-Pac: HK rises to 3rd in finance hub ranking

    Source: Hong Kong Information Services

    Hong Kong has been ranked third in the Global Financial Centres Index 36 Report, published today by the UK’s Z/Yen and the Shenzhen-based China Development Institute, up from fourth place in the March version of the index.
     

    The city also ranked first in the Asia-Pacific region. Its overall rating rose by eight points, the largest improvement among the top five financial centres.
     

    The Government said the report clearly affirms Hong Kong’s status and strengths as a leading global financial centre, highlighting that its scores were among the highest for business environment, human capital, infrastructure, and reputational and general competitiveness.
     

    The city’s rankings for investment management, insurance, banking and professional services also rose significantly. In particular, the city’s ranking rose to first globally for investment management.
     

    In the ranking of financial centres’ fintech offerings, Hong Kong rose five places to ninth, putting it among the top 10 fintech hubs globally.
     

    Hong Kong’s asset and wealth management business is also booming, with assets under management growing by about 2% from the previous year to more than $31 trillion at the end of 2023. Net fund inflows reached $390 billion, more than 3.4 times the level of the previous year. 
     

    The development of Hong Kong’s family office sector also continues to gain momentum. Since its launch in March, the New Capital Investment Entrant Scheme has so far received more than 550 applications. It is expected to bring in investment of more than $15 billion to the city.
     

    The Government said that as an international financial centre, Hong Kong brings together the world’s top financial institutions and talent, provides professional financial services, and has a deep and broad capital market.
     

    Hong Kong’s regulatory system aligns with those of major overseas markets, allowing the free flow of information and capital, it added.
     

    The Government stressed that under “one country, two systems”, Hong Kong enjoys the unique position of being backed by the motherland and connected to the world, which empowers it to fully leverage its role as a “super connector” and “super value-adder”.
     

    The Government added that it will continue to promote the financial sector’s high-quality development.

    MIL OSI Asia Pacific News –

  • MIL-OSI Russia: Maksim Liksutov: the first carriages of the latest Russian train “White Gyrfalcon” (Bely Krechet) will depart for Saint Petersburg on the HSR by 2028

    Source: Moscow Metro

    Moscow Mayor Sergey Sobyanin presented a model of the latest domestic train “White Gyrfalcon” (Bely Krechet) for the high-speed rail line Moscow — Saint Petersburg, a project initiated by Russian President Vladimir Putin, at the “Manezh Station: Moscow Transport 2030” exhibition. The train will reach speeds of up to 400 km/h.

    Latest domestic train “White Gyrfalcon”. Moscow Metro.

    During the presentation at Manezh, an agreement was signed for the delivery of 41 Russian trains for the high-speed rail line HSR-1 “Moscow – Tver – Veliky Novgorod – Saint Petersburg.”

    The ceremony saw attendance from Moscow Mayor Sergey Sobyanin, Deputy Prime Minister of the Russian Federation Vitaly Saveliev, Deputy Transport Minister Alexey Shilo, Deputy Mayor of Moscow for Transport Maksim Liksutov, General Director of Russian Railways JSC (RZD) Oleg Belozerov, First Deputy Chairman of the Board of Sberbank Alexander Vedyakhin, General Director of HSR Two Capitals LLC Oleg Toni, General Director of GTLK JSC Evgeny Ditrikh, General Director of Sinara Group JSC Viktor Lesh, and Anatoly Gavrilenko, General Director of Leader CJSC – the company organizing the financing for the project through non-state pension funds.

    Inside the latest domestic train “White Gyrfalcon”. Moscow Metro.

    The innovative Russian rolling stock meets the highest safety and comfort standards. All key components are manufactured in Russia, with assembly and commissioning taking place at the Ural Locomotives plant in Sverdlovsk Oblast.

    According to Deputy Mayor of Moscow for Transport Maksim Liksutov, the domestic trains are both safe and comfortable. Each train consists of 8 carriages with several service classes. The train ride to Saint Petersburg will be nearly twice as fast as the Sapsan, taking only 2 hours and 15 minutes. The first carriages will depart for Saint Petersburg in 2028.

    Travel time between Moscow and Tver will be 39 minutes, between Saint Petersburg and Veliky Novgorod — 29 minutes. From Zelenograd to central Moscow, the journey will take just 14 minutes.

    The latest domestic train “White Gyrfalcon”. Moscow Metro.

    “On behalf of Moscow Mayor Sergey Sobyanin, we have presented a unique transportation exhibit at the Manezh Central Exhibition Hall. A part of the exhibition is dedicated to President Vladimir Putin’s project — HSR-1. The first carriages of the latest ‘White Gyrfalcon’ train will depart for Saint Petersburg on the HSR in 2028. The main design solutions for creating Russia’s first high-speed train HSR-1 were developed in Moscow. Some components for the high-speed trains will be produced by Moscow enterprises. The lifespan of the trains is 30 years, during which the manufacturer will be responsible under a life cycle contract,” said Maksim Liksutov.

    Along with the HSR train model, visitors at Manezh Square can see the newest “Ivolga 4.0” trains, the “Moscow-2024” metro carriage, and the updated “Kamaz” electric bus. The internal exhibition features a multimedia HSR train where visitors can take a virtual journey along the high-speed rail route and explore the landmarks of the cities along the way.

    The “Manezh Station: Moscow Transport 2030” exhibition, where the model is featured, is part of the forum-festival “Future Territory: Moscow 2030” and has become the most visited in Manezh’s history. Admission is free, and the exhibition runs until September 8 at the Manezh Central Exhibition Hall.

    MIL OSI Russia News –

  • MIL-OSI Russia: Paid Inactivity – PayPal Introduces Fees on Inactive Accounts of Russians

    MIL OSI Translation. Region: Russian Federation –

    Source: Mainfin Bank –

    When will PayPal charge users a fee?

    PayPal’s updated user agreement will go into effect on October 7th – the platform will charge fees to inactive accounts according to the following terms:

    there have been no withdrawal transactions on the wallet in the last year; the account balance is positive – the amount and currency do not matter; the commission will be 3.5 thousand rubles per year or the total balance, if the amount on the balance is less; the commission will be withheld for the extension of service; if the user does not agree with the updated terms, the wallet must be closed before October 7.

    Inactive clients of the platform, from whom a commission will be withheld, also include persons who have not entered their profile for a year – the new rules will affect not only Russians, but also users from other countries.

    Why did PayPal suspend work with Russian clients?

    PayPal’s departure from the Russian Federation became known in early March 2022 – then, against the backdrop of the beginning of the Cold War and the sanctions imposed by the United States, the company suspended operations in the country, promising users time to withdraw funds. Now, registration of new clients from Russia is unavailable on the platform, and services for receiving and sending payments are closed for compatriots.

    “The departure of PayPal from Russia was a blow to freelancers and small businesses working with foreign partners. Russians also lost the ability to pay for purchases in a number of foreign stores, such as Steam and PS Store,” the expert noted.

    Although PayPal promised Russians the ability to withdraw funds from wallets, access to the payment system’s website was closed immediately after the announcement of its withdrawal from the country – no instructions on how to withdraw money from the balance were provided either. The service continues to operate in more than 200 countries around the world, serving over 300 million active clients.

    12:00 09/24/2024

    Source:

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

    http://mainfin.ru/news/paid-inactivity-paypal-introduces-commissions-on-inactive-accounts-of-Russians

    EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

    MIL OSI Russia News –

  • MIL-OSI Russia: Navigating Through Financial Turbulences with Preparedness, Competence, and Confidence

    Source: IMF – News in Russian

    OeNB | SUERF | Joint Vienna Institute | Yale Program on Financial Stability Conference on Building Resilience and Managing Financial Crises
    Vienna, Austria
    Tobias Adrian, IMF Financial Counsellor and Director of the Monetary and Capital Markets Department

    September 18, 2024

    It is a great pleasure to speak to you today on a policy area at the forefront of our work at the IMF in helping our members prepare for, and deal with, financial instability. I will provide a snapshot of the progress that has been made and what remains to be done to deal effectively with bank runs and bank failures. I will also explain what we are doing at the IMF to help our membership make further progress in this critical area.

    The bank failures in 2023 in the US and Switzerland presented the most significant test since the global financial crisis of the reforms taken collectively to end “too-big-to-fail.” It’s not often that policymakers get to field test plans for dealing with failing systemic banks, let alone one for a global systemically important bank (G-SIB).

    In our view, the failures of Credit Suisse in Switzerland and SVB, Signature, and First Republic in the US, showed that while significant progress has been made, further progress is still required to deliver on the too-big-to-fail reform agenda and reduce the risk that taxpayers bail out shareholders and creditors when banks fail.

    On the one hand, the actions the authorities took last year successfully avoided deeper financial turmoil. In addition, unlike many of the failures during the global financial crisis, significant losses were shared with the shareholders and some creditors of the failed banks. However, taxpayers were once again on the hook as extensive public support was used to protect more than just the insured depositors of failed banks.

    In Switzerland, amid a massive creditor run, the Credit Suisse acquisition was backed by a government guarantee and liquidity facilities nearly equal to a quarter of Swiss economic output. While the public support was ultimately recovered, it entailed very significant contingent fiscal risk, and created a larger, more systemic bank. Indeed, UBS now has the largest ratio of assets to home country GDP of any individual G-SIB.

    The use of standing resolution powers to transfer ownership of Credit Suisse, after bailing in shareholders and creditors, rather than relying on emergency legislation to effect a merger, would have fully wiped out the equity of Credit Suisse shareholders and limited the need for public support.

    What lessons have we learnt?

    Domestic and international authorities have published extensively on the lessons learnt and we share many of the conclusions. The key points I would highlight include:

    The importance of intrusive supervision and early intervention. Credit Suisse depositors lost confidence after prolonged governance and risk management failures. The banks which failed in the US pursued risky business strategies and very rapid growth with inadequate risk management. Supervisors in both jurisdictions should have acted faster and been more assertive and conclusive. Policymakers need to empower supervisors with both the ability and the will to act.

    Even relatively small banks can prove systemic. A lesson from many past crises, including the US bank failures in 2023, is that you can’t always judge in advance which banking problems will become systemic. In many countries, including the US and Switzerland, we think authorities should do more to be ready for crises affecting their medium-sized banks. Banking supervisory and resolution authorities should ensure that sufficient recovery and resolution planning takes place across the banking sector as a whole. This should include, on a proportional basis, banks that may not be systemic in all circumstances, but that could certainly be systemic in some.

    Central banks should be prepared to provide extensive liquidity support during a crisis. Banks should be familiar with the central bank’s operations and facilities and be ready to use them at short notice. Who can access central bank lending is also an important question as liquidity risks have partially moved away from the usual central bank counterparties. While widening the counterparty list could help central banks intervene more broadly in a crisis, it runs the risk of rewarding regulatory arbitrage, giving raise to difficult trade-offs and requiring careful assessment. Central banks may well have to lend against illiquid collateral in a crisis. In that context, prepositioning would help to ensure operational preparedness especially to ascertain the legal claim on the collateral and to calibrate appropriate haircuts. An open question is whether the prepositioning should be voluntary or required, and how much counterparties should preposition if required. The benefits of enhanced lending “fire power” would have to be compared with the cost that prepositioning entails for the banks and the costs to the central bank, including risks to its balance sheet. If propositioning is directly linked with risk (e.g., a percentage of uninsured deposit), the impact on intermediation and the interaction with other prudential regulation would need to be carefully assessed.

    Resolution plans and regimes need sufficient flexibility. We very much support the conclusion of the Financial Stability Board’s lessons learned report that resolution authorities need to “better operationalize a range of resolution options for different circumstances.” Every bank failure presents different challenges and resolution authorities need to be flexible enough to deal with the actual crisis that presents itself, balancing risks to financial stability with those to taxpayers. Authorities should make sure that they carefully balance rules versus discretion and detailed planning versus optionality in designing their resolution regimes. The rapid sale of Credit Suisse should prompt us to think about what would be needed for the successful sale in resolution of even the largest banking groups, at least in some circumstances.

    Strikingly, every one of the cases I mentioned from Spring 2023, involved the transfer of the failing bank’s business lines to an acquiring bank, even where this had not been the focus of prior resolution planning. Two of the US cases also involved the intermediate step of transfer to bridge banks. So, we have timely and high-profile reminders that transfer powers should be a core part of the resolution toolkit and should be duly planned for and readily implementable, including at short notice.

    Cooperation and effective implementation of resolution powers across borders is imperative. One notable feature of last year’s bank failures was the degree of international cooperation between regulators and resolution authorities in their handling of these cases. The Swiss authorities worked intensively with international counterparts to prepare for a resolution of Credit Suisse, which would have needed supportive actions from the supervisors and resolution authorities responsible for Credit Suisse’s main foreign operations, including in the US, UK, and EU. SVB’s UK subsidiary was resolved by the Bank of England, ultimately being sold to HSBC, and the FSB report highlights that the UK relied on the deep relationships built over the years with their US counterparts to help implement this. This cooperation seems to have begun earlier and worked a lot better than in similar cases during the global financial crisis, such as the failure of Lehman Brothers.

    That experience highlights how global financial stability depends on authorities being able to work together across borders and to build in peacetime the routine contacts and good understanding ex ante of what each authority would be likely to do to make that possible. However, there was a wrinkle in this otherwise positive experience, as highlighted in the Financial Stability Board’s report on the bank failures, which relates to the importance of the US securities markets to most major foreign banks. Credit Suisse and most other major banks have debt securities issued in US dollars and/or under New York law, the holders of which may incur losses in a resolution. As a recent report of the Financial Stability Board highlighted, there remain significant open questions about how disclosure and other US securities legal requirements would be applied in the circumstances where securities issued in the US are envisaged to be converted in a short period, for example, over a resolution weekend. This is an important issue where further work is needed and this is being taken forward by the Financial Stability Board, the Securities and Exchange Commission, and others.

    Finally, effective deposit insurance regimes are crucial. Banks typically fail when creditors lose confidence, even before their balance sheet reflects potential losses. Authorities in many countries need to strengthen deposit insurance regimes. New technology like 24/7 payments, mobile banking, and social media have accelerated deposit runs. Last year’s failures followed rapid deposit withdrawals, and deposit insurers and other authorities should be ready and able to act more quickly than many currently can.

    IMF staff are working actively to support efforts in member countries to strengthen their supervision, resolution, liquidity assistance, and deposit insurance frameworks including through FSAPs and technical assistance. In the US, we have seen lessons learned reports and policy proposals from many of the US banking authorities, several of which pick up on issues and recommendations that were discussed in the IMF’s assessment of the US financial sector (“FSAP”) in 2020. Our next FSAPs for Switzerland and the Euro Area will be published next year, and as we start work on that we will be taking a close look at the authorities’ and the FSB’s findings and will likely reiterate many of our previous findings, including on strengthening deposit insurance regimes. We are also contributing to policy formulation at the international level, including a recently announced review of the international deposit insurance standard, and by earlier this year hosting with the Financial Stability Board a workshop for policymakers on the use of transfer powers in resolution.

    The bottom line is that progress has been made, but there is still further to go in putting an end to too-big-to-fail. Most of the areas where further progress is needed are already well known; last year’s bank failures should provide the impetus for policymakers to cover the remaining ground.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER:

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/16/sp091824-navigating-through-financial-turbulences-with-preparedness-competence-and-confidence

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Russia: Moscow Metro Embraces Innovation: QR Code Payment Now Available at Turnstiles

    Source: Moscow Metro

    Moscow’s transportation system is taking a leap forward with the launch of QR code payment via the Faster Payment’s System (FPS) at Metro and Moscow Central Circle (MCC) turnstiles. This innovative service, powered by the Bank of Russia, is also being implemented at 1,700 ticket vending machines across the city.

    Moscow Metro QR code-ready.

    The FPS is already integrated into all regular river transport turnstiles and ground transport validators. This is a convenient and modern service. Now, this innovative payment method is available at ticket booths and vending machines, – said Maksim Liksutov, Moscow’s Deputy Mayor for Transport and Industry.

    To utilize QR code payment, passengers need to generate a QR code in the Moscow Metro app and hold their smartphone screen up to the scanner at the turnstile. The phone should be held 20-25 cm away from the scanner, at a 45-degree angle, with the active QR code facing the scanner. A green signal will appear on the turnstile when the payment is successful.

    Additionally, passengers registered in the mobile app and loyalty program are eligible for a special promotion. They will receive cashback for each payment made through the FPS, credited to their account within one minute.

    This new payment option offers Moscow residents a convenient, modern, and secure way to pay for their transportation needs.

    The FPS was first launched in June 2023 in the ticket offices of all open stations of the Big Circle Line (BCL).

    The Moscow Transport news channel https://t.me/DTRoadEn            

    MIL OSI Russia News –

  • MIL-OSI New Zealand: Law News – MinterEllisonRuddWatts named Gender Diverse Organisation Leader at governance awards

    Source: MinterEllisonRuddWatts

    Leading New Zealand law firm MinterEllisonRuddWatts’ diversity leadership was again recognised at the Women on Boards New Zealand’s Women in Governance Awards 2024 last night.
    MinterEllisonRuddWatts was awarded top honours for the Gender Diverse Organisation Leader (with more than 50 employees) category.
    The firm’s Chief Executive, Andrew Poole says ” This award is a reflection of the gender diversity within our board and the progress we’ve made across the firm. We recognise that there’s more work to be done but we are proud of our progress to encourage and support diversity and inclusion in all its forms. It’s the foundation of our firm’s unique culture.”
    Board member, Partner and the firm’s EDI Committee Chair, Janine Stewart accepted the award on behalf of MinterEllisonRuddWatts, commenting ” Setting both aspirational and achievable goals is vital to make a difference, and there needs to be some quick wins. This helps to build the momentum needed to tackle larger goals. We are proud of our work so far, but we acknowledge there is more to be done within our firm and the wider legal profession.”
    MinterEllisonRuddWatts is a proven leader in diversity and is proud of its progress and achievements to encourage and support greater gender equity. Examples of the firm’s commitment to empowerment, diversity, and inclusion (EDI) include:
    • Its established EDI Committee comprises partners and staff and focuses on advancing diversity in all its forms.
    • Being the first New Zealand law firm to publicly report its gender and ethnic pay gap via Mind the Gap.
    • Supporting the New Zealand Law Society’s Gender Equitable Engagement and Instruction Policy.
    • Paying the living wage as a minimum since 2021, and ensuring our key contractors are also paying their staff the living wage as a minimum.
    • Fostering cultural diversity by actively supporting cultural celebrations such as Māori language week, Diwali and Lunar New Year and Te Reo language classes are offered to all staff.
    • Supporting TupuToa’s scholarship programme to grow more Māori and Pacific leaders, by offering students fully paid internships and employment opportunities during their tertiary studies.
    • Partnering with the ICE Base and Global Women to support the next generation of women leaders.
    • Being Rainbow Tick certified which demonstrates our commitment to a LGBTTQIA+ inclusive culture and systems, and showing that we are a safe and welcoming workplace for employees who are members of the Rainbow community.
    • Providing unconscious bias training to all staff as part of our induction, and cultural intelligence training to leaders across the firm.
    • Being named National Firm of the Year for Gender Diversity at the Asia-Pacific Women in Business Law Awards 2023, for the sixth time. The awards recognise the best initiatives for gender diversity, innovation, mentoring, work-life balance, pro bono work and talent management.
    The Women in Governance Awards are New Zealand’s only awards celebrating women in governance, and organisations and individuals with a strong commitment to gender equity and diversity.
    MinterEllisonRuddWatts is a top tier New Zealand law firm known for providing clients with technically excellent legal solutions and innovative advice. We are trusted advisors and work alongside our clients to ensure success. We are proud to be a New Zealand law firm offering a global outlook. Our offices in Auckland and Wellington can access an international network through our firm’s strategic alliance with MinterEllison, a leading firm in the Asia-Pacific. The firm supports numerous charitable endeavours and organisations through its pro bono and fundraising initiatives.

    MIL OSI New Zealand News –

  • MIL-OSI: CodeMonkey Celebrates 10 Years of Transforming Coding Education

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, Sept. 24, 2024 (GLOBE NEWSWIRE) — This year, CodeMonkey, an award-winning EdTech platform, marks its 10th anniversary, celebrating a decade of pioneering coding education for children worldwide. Since its founding in 2014, CodeMonkey has reached over 34 million students in 206 countries, inspiring a new generation of coders through fun, game-based learning. Now used in over 18,000 schools and after-school centers, CodeMonkey continues to redefine what it means to teach computer science in a playful, engaging, and effective way.

    A Vision Driven by Passionate Leadership

    At the heart of CodeMonkey are Jonathan Schor, Co-Founder & CEO, and Ido Schor, Co-Founder & CTO. As lifelong tech enthusiasts who started coding as 4th graders in the 1990s, the brothers founded CodeMonkey to share their love for coding with children everywhere. “We are a passionate team of technology, gaming, and pedagogy experts crafting together the world’s best computer science playground for children,” says Jonathan Schor.

    He adds, “We believe that the old-fashioned ways of learning should be challenged. New learning resources are the future of education systems worldwide. When we design our products, we focus on engagement and user experience to create a fun and effective learning process. Our deep understanding of technology and pedagogy results in a product that teachers can use without fear and kids enjoy tremendously.”

    Since Jonathan’s early success teaching children to code through playful activities, CodeMonkey has grown into a platform that brings fun, knowledge, and opportunity to millions of learners across the globe.

    Milestones Along the Journey

    • 2024: Linus the Lemur debuts in special monthly coding courses and CodeMonkey expands into Artificial Intelligence and Data Science, going beyond basic coding.
    • 2023: CodeMonkey adds a block-based design platform to create games.
    • 2022: Digital Literacy courses are introduced to accommodate for the educational needs of post COVID-19.
    • 2021: CodeMonkey partners with the King of Bhutan and the Ministry of Education to bring coding education across the country.
    • 2020: Beaver Achiever, a block-based coding course, and CodeMonkey Jr., the platform’s first block-based coding app, are launched.
    • 2019: CodeMonkey introduces Banana Tales, its first game-based Python course.
    • 2018: Dodo Does Math, a cross-curricular coding course, and Game Builder, a game design tool, are introduced to the platform.
    • 2016: CodeMonkey partners with Code.org as part of the Hour of Code initiative.
    • 2014: CodeMonkey is born, and by December, the company launches its first text-based coding game, Coding Adventure.

    What’s New in 2024

    As CodeMonkey looks ahead to the next 10 years, it’s introducing several exciting new initiatives:

    • Linus the Lemur: A brand-new character debuting in monthly coding challenges, offering students fresh opportunities to develop their coding skills.
    • New AI and Data Science Courses: Expanding beyond coding, these courses equip children with skills for the future, diving into artificial intelligence and data science at an accessible level.
    • BananaCast Podcast: A newly launched podcast that features interviews with educators, tech innovators, and thought leaders to explore the intersections of technology, education, and the future of work.
    • Merch Store: Teachers and students can now get CodeMonkey-branded swag, including classroom supplies and fun items that motivate kids to code.

    Award-Winning Leaders in EdTech

    In the past decade, CodeMonkey has earned numerous prestigious awards for its innovative approach to teaching computer science. These accolades serve as recognition of the platform’s impact on the education industry and its unwavering commitment to preparing children for a tech-driven future.

    Just this year alone, CodeMonkey has won multiple prestigious awards, including:

    • Educators Pick – Best of STEM® 2024 Award for Best AI Curriculum for Teaching and Learning
    • 2024 Overall Early Childhood Education Solution Provider of the Year
    • The Best Products for Elementary Kids 2024
    • The Best Educational Products in the World – 2024/25
    • The Best Middle School Products & The Best High School Products of 2024, I-LEARN Awards
    • 2024 Practical Homeschooling® i-Learn Award

    Social Responsibility

    Social responsibility is at the core of CodeMonkey’s mission. The company is committed to making coding accessible to all students, especially those from underserved communities. Through partnerships and grant programs, CodeMonkey has ensured that schools in need have access to its platform, meeting the requirements for federal funding under Titles I, II, and IV of the Every Student Succeeds Act (ESSA).

    In 2022, CodeMonkey partnered with the King of Bhutan and the Ministry of Education to bring its curriculum to students across Bhutan, further extending its reach to empower children globally, regardless of socioeconomic background.

    Looking Ahead

    With a bold mission to “Write Code. Catch Bananas. Save the World,” CodeMonkey is poised to lead the next wave of coding education. Through its continued innovation, dedication to social responsibility, and passion for engaging young learners, CodeMonkey is set to empower millions more children as they embark on their journeys into the world of technology.

    Here’s to the next 10 years of coding adventures, creativity, and problem-solving—one banana at a time!

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1673da7f-e835-411a-85f3-2bf486af1ec0

    A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7d27af69-83d1-451c-bc09-85436b23b3db

    The MIL Network –

  • MIL-OSI: Danske Bank A/S, transactions by persons discharging managerial responsibilities

    Source: GlobeNewswire (MIL-OSI)

    24 September 2024

    Notification no. 94/2024

    Transactions made by persons obliged to report transactions to the Danish FSA and Nasdaq Copenhagen, cf. the EU Market Abuse Regulation.

    In connection with the share buy-back program in Danske Bank A/S, APMH Invest A/S continuously sells shares pro rata.

    For further details, please find the attached templates for notifications and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them.

    Contact: Stefan Singh Kailay, Head of Media Relations, tel. +45 45 14 14 00

    Attachment

    The MIL Network –

  • MIL-OSI: AGF Partners with Archer to Support Rapid Growth of SMA Model Business

    Source: GlobeNewswire (MIL-OSI)

    TORONTO , Sept. 24, 2024 (GLOBE NEWSWIRE) — AGF Management Limited (TSX: AGF.B), is pleased to announce a partnership with Archer Holdco, LLC (“Archer”) to help further grow its Separately Managed Accounts (SMA) model business.

    AGF will leverage the technology capabilities and infrastructure of Archer, a leading technology-enabled service provider to the investment management industry.

    “We believe Archer will be a key partner as our SMA model business continues to gain momentum and we look to broaden our product offerings and onboard additional investment strategies throughout North America,” said Judy Goldring, President and Head of Global Distribution, AGF Management Limited. “While focusing on new opportunities, we will benefit from Archer’s expertise as they support our business with solutions aligned to meet our evolving needs and our continued growth.”

    “At Archer, we are committed to partnering with leading asset managers to help build their business through our customized service model,” said, Bryan Dori, President and CEO of Archer. “We look forward to developing our relationship with AGF as the firm leverages our expertise in operations and technology to grow and support their SMA presence.”

    Several leading investment strategies are currently available on the following SMA platforms: Envestnet Asset Management, Inc., Vestmark Advisory Solutions Inc. and SMArtX Advisory Solutions LLC.

    As well, the AGF Global Select ADR Constrained Strategy was recently named the winner in the Global category at the SMArtX 2024 X Awards* and AGF U.S. Large Cap Growth Equity Strategy was named a finalist in the Large Cap category.

    About AGF Management Limited

    Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

    AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

    Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With nearly $50 billion in total assets under management and fee-earning assets, AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

    About AGF Investments

    AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). The term AGF Investments may refer to one or more of these subsidiaries or to all of them jointly. This term is used for convenience and does not precisely describe any of the separate companies, each of which manages its own affairs.

    AGF Investments entities only provide investment advisory services or offers investment funds in the jurisdiction where such firm and/or product is registered or authorized to provide such services.

    About Archer

    Archer is a technology-enabled service provider that helps investment managers deliver solutions aligned with investor needs. With Archer, investment managers can maintain their proven investment process while outsourcing operations and technology to benefit from a service model geared for growth. Archer has expansive connectivity across the industry and deep experience working with asset managers to help them swiftly streamline operations, enter new distribution channels, and launch new products. 

    * SMArtX Awards Criteria and Methodology

    Candidates for the Awards are derived from the SMArtX Select List, which ranks asset managers using a proprietary quantitative screening based on a robust four-step methodology:

    1. Ability to generate alpha compared to the strategy peer group benchmark
    2. Favorable risk-adjusted returns that emphasize positive skew
    3. Effective downside and tail-risk management
    4. Consistent return generation

    The Awards calculations add an additional metric to this existing quantitative screening, namely performance exclusive to the full previous year. This year, 30 eligible strategies competed with winners ultimately chosen across 10 categories. These categories are grouped by market capitalization, geographic focus, and investment type.

    AGF Investments America Inc.’s AGF Global Select ADR Constrained Strategy was awarded SMARTX’s X award in the Global category on May 29, 2024. The award was a based on the SMARTX methodology above for the period ending December 31, 2023. AGFA’s AGF U.S. Large Cap Growth Equity Strategy was also a finalist in the Large Cap category.

    AGF Investments did not pay or provide compensation to participate in the SMArtX 2024 X Award ranking or to be included in the eligible strategies list.     

    Media Contact

    Amanda Marchment
    Director, Corporate Communications
    416-865-4160
    amanda.marchment@agf.com

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