Source: Reserve Bank of India
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In the underwriting auction conducted on February 07, 2025, for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers as given below:
Ajit Prasad Press Release: 2024-2025/2098 |
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Source: GlobalData
Robust corporate governance a strategic imperative for business resilience and growth, says GlobalData
Posted in Strategic Intelligence
Effective corporate governance is essential for sustainable business growth. As regulatory scrutiny intensifies, companies must strengthen governance frameworks, including risk management and anti-corruption measures, to ensure compliance and long-term resilience. Weak governance can undermine trust, while a well-structured approach enhances competitiveness, drives value creation, and positions businesses for sustained success, according to GlobalData, a leading data and analytics company.
GlobalData’s latest Strategic Intelligence report, “ESG – Governance Factors,” reveals that poor governance practices are at the root of many corporate scandals. In 2024, the US regulators criticized Boeing’s board for failing to hold management accountable for a deterioration of controls around safety standards. The company’s challenges predate the COVID-19 pandemic and labor strikes, with the 737 MAX crashes exposing serious lapses in production quality, oversight, and regulatory compliance.
Pinky Hiranandani, Senior Strategic Intelligence Analyst at GlobalData, comments: “Governance failures have led to the demise of several companies. In 2024, Sam Bankman-Fried, founder and CEO of cryptocurrency exchange FTX, was sentenced to 25 years in prison for defrauding investors. The collapse of FTX underscores the critical importance of robust corporate governance and highlights the need for investors to prioritize governance risks in their due diligence processes.”
Indian edtech startup Byju’s saw its valuation collapse from $22 billion in 2022 to just $1 billion in 2024. Aggressive acquisitions, coinciding with a post-pandemic slowdown in edtech demand, exacerbated its challenges. Governance concerns, including a lack of transparency in management, further eroded investor confidence, underscoring the critical role of sound governance in sustaining business stability.
Hiranandani concludes: “Companies with poor corporate structure and risk management, weak internal controls, and unethical practices can quickly become the target of consumer and shareholder ire, which can jeopardize their future viability. As regulatory expectations rise, businesses must view governance not as a compliance burden but as a strategic advantage that fosters innovation, enhances reputation, and drives sustainable growth.”
Source: GlobalData
APAC VC funding: Deals volume falls across most of funding sizes in 2024, reveals GlobalData
Posted in Business Fundamentals
A total of 3,724 venture capital (VC) funding deals with disclosed funding value were announced in the Asia-Pacific (APAC) region during 2024. This represents a year-on-year (YoY) decline of 6.9% compared to the previous year, with a fall in deals volume in most of the VC funding size ranges, according to GlobalData, a leading data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Be it low-value deals* or high-value deals**, the decline in deals volume was witnessed across most of the funding size ranges in the region during the year. In fact, there was a double-digit decline in high-value VC deals volume. Meanwhile, VC deals valued over $500 million saw some marginal improvement in volume.”
An analysis of GlobalData’s Deals Database reveals that the number of high-value VC deals declined by 24.1% from 112 in 2023 to 85 deals in 2024, whereas the volume of low-value VC deals fell by 2% from 2,604 in 2023 to 2,553 in 2024. Meanwhile, mid-size VC funding deals (valued >$10 million and ≤$100 million) volume declined by 15.3% from 1,282 deals in 2023 to 1,086 deals in 2024.
Low-value deals continued to dominate and account for the largest chunk of deals volume in 2024. These deals accounted for a 68.5% share of the total number of VC deals with disclosed funding value announced in the APAC region last year.
High-value VC deals accounted for a 2.3% share of the total number of VC deals with disclosed funding value announced in the region, while the share of mid-size VC funding deals stood at 29.2%.
*Investment value less than or equal to $10 million
**Investment value more than $100 million
Source: Reserve Bank of India
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RBI/2024-25/109 February 07, 2025 All Liquidity Adjustment Facility (LAF) participants Madam/Sir, Liquidity Adjustment Facility – Change in rates As announced in the Monetary Policy Statement dated February 07, 2025, it has been decided by the Monetary Policy Committee (MPC) to reduce the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.50 per cent to 6.25 per cent with immediate effect. 2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 6.00 per cent and 6.50 per cent respectively, with immediate effect. 3. All other terms and conditions of the extant LAF Scheme will remain unchanged. Yours sincerely, (G. Seshsayee) |
Source: Panasonic
Headline: Panasonic in Numbers: 100% Marine Biodegradable Molding Material
Growing concern over environmental impact, including marine plastic pollution, depletion of petroleum resources, and global warming, has led to a global effort to reduce the use of traditional plastic resins.Today, 80% of all plastic waste is discarded and expectations are that by 2050, the amount of plastic in our oceans will outweigh the fish*.Following years of R&D, Panasonic HD has developed a 100% marine biodegradable molding material based on plant-derived resins that is comparable in strength to polypropylene.Certified as a “Marine Biodegradable & Biobased Plastics” by the Japan Bioplastics Association, Panasonic HD plans to commercialize this material by 2027, leveraging its unique properties for household appliance casings, automotive parts, consumer goods, and beverage and food containers, among other applications.
* http://www.jbpaweb.net/gp/index.html
Source: ASEAN – Association of SouthEast Asian Nations
Secretary-General of ASEAN, Dr. Kao Kim Hourn, this morning visited the Embassy of the Federal Republic of Germany to the Republic of Indonesia to sign the condolence book, following the passing of H.E. Prof. Dr. Horst Köhler, former President of the Federal Republic of Germany, on 1 February 2025.
The post Secretary-General of ASEAN signs a book of condolence at the German Embassy in Jakarta appeared first on ASEAN Main Portal.
Source: Reserve Bank of India
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Source: Panasonic
Headline: Transforming Insulated Glass Worldwide with Glavenir
Pushing Equipment Development Beyond “Amazing!”:Takeshi Shimizu
We take an up-close and personal look at the people who are supporting the Panasonic Group’s growth at their own operational frontlines.
Vol.3
VIG Business Promotion Department, Exterior Products & Systems Business Division Panasonic Housing Solutions Co., Ltd.
After graduating from university, Shimizu was involved in developing plasma displays (PDP) and OLED displays. In 2016, he transitioned to his current role, leveraging the production process skills gained from PDP development.
Vacuum Insulated Glass (VIG) Glavenir is a product that applies the internal structure of the plasma displays (PDP) I once worked on. I am responsible for everything related to its manufacturing, from process development to production. Glavenir offers exceptional thermal insulation while being thin and lightweight. It significantly enhances the insulation performance of refrigerated and frozen display cases as well as residential buildings. Additionally, reducing thickness and minimizing raw material usage significantly cuts CO₂ emissions both during production and after installation. When we showcased this technology at CES (one of the world’s largest technology trade show held annually in January in Las Vegas, U.S.A.), it attracted significant attention.
When VIG was first adopted by Hussmann for incoming orders of walk-in cooler automatic doors, incidents of breakage did occur. I still vividly remember the faces of the struggling workers when I first visited the site. To supply a high-strength, cost-effective VIG, we developed a sealing technology that eliminates the need for exhaust tubes*, along with proprietary equipment and optimized settings to make it possible. In just one year, we successfully created and launched a sleek, reinforced VIG without exhaust tubes. Solving a fundamental challenge for the field was an incredibly meaningful experience.
＊ Exhaust tube: A glass tube that connects to the interior of VIG, used to evacuate air and create a vacuum inside
My current focus is on selling manufacturing lines to glass factories in Europe and North America. Initially, we only sold the core equipment, but after recognizing the benefits of shorter setup times, we decided to offer complete manufacturing lines as a packaged solution. However, external buyers expressed concerns about whether the production line could truly achieve high efficiency, whether the costs were justifiable, and whether speed alone was enough—emphasizing that durability and mass-production stability were equally critical. These challenges made me realize that the key was maximizing productivity at the lowest possible cost while ensuring buyers felt confident in their investment.
To address this, I refined a method that combines general-purpose equipment with customized components tailored to each customer. By pushing the speed of individual systems to their limits while increasing stability, we were able to minimize costs. When potential buyers visited a fully operational production line in Japan and responded with enthusiasm, describing it as both amazing and spectacular, I felt a deep sense of fulfillment, knowing that our efforts had paid off.
Moving forward, I will continue developing equipment that is even more impressive. Eventually, I aim to create a curved VIG for mobility applications such as automobiles and trains.
Shimizu is in the middle.
My Life My Leisure Time
I enjoy lively gatherings over drinks, and recently, I had a relaxing time at a dinner party at a senior colleague’s home. Everyone there had been involved in driving the VIG business from the very beginning, and without each of them, we wouldn’t be where we are today. I will continue working alongside this team to contribute to “Live Your Best.”
Source: Panasonic
Headline: Aiming for a Clean, Decarbonized Society with Panasonic HX: Shigeki Yasuda
Trailblazer in Building the Foundation of the Hydrogen Business
Shigeki Yasuda
Global Environmental Business Development CenterPanasonic Corporation
Shigeki Yasuda joined the company in 2003, specializing in fuel cell technology development. In 2010, he was assigned to Germany, where he contributed to introducing fuel cells to the European market. In 2024, he assumed his current position, working on implementing a demonstration facility to power factories with renewable energy and building the business foundation for Panasonic HX.
Pioneering the First Overseas Integration of Three Types of Energy Sources
Since May 2024, I have been working in the UK on implementing a demonstration facility that powers factories with renewable energy and building the business foundation for Panasonic HX*¹. My mission is to advance the first overseas integration of pure hydrogen fuel cell generators, photovoltaic generators, and storage batteries. This involves (1) introducing a demonstration facility to Panasonic Manufacturing UK Ltd., (2) building the business foundation for future social implementation, and (3) developing new markets for fuel cells overseas.＊1: The name Panasonic HX represents Panasonic’s energy solutions utilizing hydrogen. We propose a new option for the full-scale use of hydrogen (H), which has a low environmental impact, and are determined to contribute to the transformation (X) to a decarbonized society through collaboration (X) with partner companies, administrations, and business customers.
This is a CG image symbolizing the Panasonic HX. It is not a facility that actually exists.
In December 2024, Panasonic introduced its first overseas demonstration facility in the UK, leveraging 25 years of expertise in fuel cell technology to supply factories with electricity and thermal energy using hydrogen. This facility serves as a showcase for co-creation with partner companies, governments, and business customers to pursue a decarbonized society while laying the foundation for Panasonic’s hydrogen business. Utilizing hydrogen as a clean energy source is crucial in addressing global environmental challenges through decarbonization. This demonstration, which enables factories to be powered by renewable energy, marks a significant step toward broader social implementation.
We are also working to apply the data and know-how gained from the demonstration in the UK to future projects. The main challenges we faced in this initiative were: (1) a lack of knowledge about construction processes in the UK, requiring us to navigate everything from scratch and quickly resolve various unforeseen issues, (2) difficulties in discussing with the design firm regarding safety design, highlighting the need to raise awareness of hydrogen safety, and (3) the complexity of collaborating with local partners, as failing to align expectations at the contract stage made it difficult to proceed as planned.
In overcoming these challenges, the most invaluable support came from the persistence of our colleagues, especially the assistance from Japan. With only three core members leading the launch, we sometimes found ourselves stuck in rigid thinking and faced moments of isolation. However, the strong support from Japan reassured us, allowing us to stay positive even when obstacles arose. Everyone was united in the determination to see it through, and even the faintest glimmer of hope helped us find a path forward.
Leading the Way Until Success is Achieved
Staying at the forefront is important when it comes to enhancing competitiveness. Doing so lets us quickly gather customer feedback and gain an advantage through our products and services. In this process, it is essential to embrace the Customer Focus principle of always thinking from a customer’s perspective, as advocated by PLP*2.Having spent my career in technology, my work often remained within that sphere. However, stepping outside and engaging directly with customers made me realize how vastly different cultures can be. From my experience in the UK, I am convinced that the key to enhancing competitiveness lies in rapidly iterating the PDCA cycle to integrate customer feedback into business development. Recently, I have also come to appreciate the importance of a two-way approach—effectively communicating the value of hydrogen while actively listening to our customers.＊2: Panasonic Leadership Principles are a set of behavioral guidelines for each and every employee to follow in their efforts to put the Basic Business Philosophy into practice.
Our top priority is to enhance the competitiveness of the three-battery integration, make it a unique, industry-leading solution and develop it into a robust product and service. We are dedicated to advancing Panasonic’s strengths and will first introduce it to the environmentally advanced European market before expanding it globally in the future.
I have been involved in fuel cell development since joining Panasonic. I take great pride in playing a role in the practical application of hydrogen, a clean energy source, in society. My dream is to help build a foundation where hydrogen is a natural part of everyday life, ensuring that future generations can live comfortably in a sustainable environment.
This demonstration is merely the starting point. With a strong sense of responsibility as a frontrunner, I will continue moving forward alongside our customers until we fully realize the value we aim to deliver.
Source: International Monetary Fund
February 7, 2025
A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.
The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.
Washington, DC – February 7, 2025[1]:
After three decades of near-zero inflation, there are signs that Japan’s economy can sustainably converge to a new equilibrium. Inflation has surpassed the Bank of Japan’s 2-percent target for over two years and a tight labor market is delivering the strongest wage growth since the 1990s. But Japan continues to face challenges from its aging population and high public debt. Policy priorities are to re-anchor inflation expectations, rebuild fiscal buffers, and advance labor market reforms to support potential growth.
RECENT DEVELOPMENTS, OUTLOOK, AND RISKS
The economy contracted in the first half of 2024 due to temporary supply disruptions but gained momentum in the rest of the year. Domestic demand, private consumption in particular, has strengthened, while net external demand has been sluggish. Both headline and core inflation (excluding fresh food and energy) remain above the BoJ’s 2-percent headline inflation target. Goods inflation has been boosted by energy and food prices, while services price growth is relatively weaker and below 2 percent. Inflation expectations are becoming increasingly aligned with the inflation target, though some measures remain below that target. The yen-dollar exchange rate has experienced sizable swings, largely driven by shifts in interest rate differentials (which reflect broader macroeconomic developments), but also amplified by the build-up and subsequent unwinding of yen carry-trade positions. The pass-through to inflation is estimated to have been relatively mild so far. Wages are growing at their highest rate since the 1990s amid labor shortages and strong inflation, but they have remained lackluster in real terms.
Growth is expected to accelerate in 2025, with private consumption strengthening further, as above-inflation wage growth will boost households’ disposable income. Private investment is also expected to remain strong, supported by high corporate profits and accommodative financial conditions. The output gap is estimated to be closed, and growth is expected to converge to its potential of 0.5 percent in the medium term. Headline and core inflation are expected to converge to the BoJ’s 2-percent headline inflation target in late 2025, helped by a moderation in commodity prices for oil and food. The current account surplus is expected to moderate in 2025 as the income balance narrows, with the trade balance remaining in deficit. The external position is assessed as broadly in line with the level implied by medium-term fundamentals and desirable policies.
Risks to growth are tilted to the downside. On the external side, these include a slowdown in the global economy, deepening geoeconomic fragmentation and increasing trade restrictions, and more volatile food and energy prices. On the domestic side, the main downside risk is weak consumption if real wages do not pick up. Another domestic risk to the outlook is a possible decline in confidence in fiscal sustainability that leads to a tightening of financial conditions in the context of high public debt and gross financing needs. If downside risks materialize, it could result in Japan reverting to an effective-lower-bound constrained environment given the still-low level of the policy rate.
Risks to inflation are broadly balanced. On the downside, inflation expectations may stall below the headline inflation target following Japan’s prolonged experience with low inflation. Upside risks stem from rising food and energy prices, and from stronger-than-expected wages in the upcoming spring wage negotiations. Higher barriers to trade and cost pressures in major trading partners could spill over to Japan but the impact on domestic prices would be ambiguous given lower economic activity.
ECONOMIC POLICIES
Fiscal Policy
The estimated fiscal deficit in 2024 is smaller than expected at the time of the 2024 Article IV. Tax revenues have been boosted by high corporate profits, and expenditures to support the economic recovery (such as transfers to households and SMEs) have been partly phased out. The fiscal deficit is projected to increase slightly in 2025, with additional spending planned for defense, children-related measures, and industrial policies (IP). There is a significant risk that the deficit will widen further, given the political demands on the minority government. This should be avoided as fiscal space remains limited: any expansionary measure should be offset by higher revenues or expenditure savings elsewhere in the budget.
Public debt, as a share of GDP, is expected to decline in the near term, as nominal GDP growth is projected to exceed the effective interest rate on public debt. Public debt will remain high, however, and is estimated to start rising by 2030, driven by a higher interest bill and expenditure pressures related to spending on health and long-term care for an aging population. A clear consolidation plan is needed even in the near term to fully offset these pressures, ensure debt sustainability, and increase fiscal space needed to respond to shocks (including from natural disasters). This will require elaborating concrete and credible expenditure and revenue measures in the context of a robust medium-term fiscal framework:
As interest rates rise, the cost of servicing the large public debt is expected to double by 2030, putting a premium on a robust debt management strategy. In the face of rising gross financing needs and a shrinking BoJ balance sheet, government bond issuance will need to rely on additional demand from foreign investors and domestic institutions.
Monetary and Exchange Rate Policies
The current accommodative monetary policy stance is appropriate and will ensure inflation expectations rise sustainably to the 2-percent inflation target. Accommodation should continue to be withdrawn gradually if the baseline forecast bears out, under which we expect the policy rate would reach a neutral level by end-2027. High domestic and external uncertainty underscore the need for the BoJ to maintain its data-dependent and flexible approach and clear communications to anchor market expectations.
The BOJ’s ongoing reduction in the size of its balance sheet has been clearly communicated, is appropriately modest in pace, and is proceeding smoothly. The BoJ should stand ready to modify the pace of its purchases should disorderly bond market conditions arise or if financial conditions become inconsistent with the desired monetary policy stance.
Japan’s large stock of outstanding government debt and sizable net international investment position provide an important transmission channel for monetary policy to spill over into asset prices abroad. Clear communication and gradualism can limit adverse asset price reactions and outward spillovers.
The authorities’ continued commitment to a flexible exchange rate regime is welcome. Exchange rate flexibility should continue to help absorb external shocks and support monetary policy’s focus on price stability. At the same time, it will also help maintain an external position in line with fundamentals.
Financial Stability
Japan’s financial system remains broadly resilient, supported by strong capital and liquidity buffers. Banks’ revenues have generally increased as credit costs remain low, the rise in interest rates has been gradual, and the yen has depreciated. Major banks continue to manage interest rate risks proactively through portfolio rebalancing and diversifying their funding sources. Financial intermediation remains stable supported by continued demand for loans from both corporate and household sectors. The insurance sector is well-capitalized and profitable, despite challenges from market volatility and demographic shifts.
While the financial system remains generally resilient, systemic risk has risen slightly since the 2024 Article IV consultation, reflecting a combination of rising macroeconomic uncertainty, risk of faster than expected interest rates increases or unrealized losses, and rising bankruptcies among SMEs. Rising global macroeconomic uncertainty could impact Japanese banks’ investments. While gradually rising interest rates have helped bank profitability, faster-than-expected increases in interest rates or sudden changes in global financial conditions could amplify financial market volatility and interact with three persisting vulnerabilities identified in the 2024 FSAP: large securities held under mark-to-market accounting, significant foreign currency exposures—particularly through US dollar funding instruments—and signs of overheating in some areas of real estate. A faster-than-expected tightening of financial conditions could also disrupt the JGB market, amplifying interest rate risks for banks with larger exposures. Less-capitalized domestic banks are more vulnerable to rate hikes, facing heightened risks from unrealized losses and higher funding costs. Corporate defaults among smaller SMEs have been increasing, albeit from a low base, and could pose risks for regional banks with high SME loan exposure.
Strengthening systemic risk monitoring and the macroprudential policy framework is needed to better mitigate risks in the financial system. Ongoing efforts to expand data collection, enhance analytical capacity, and improve coordination between the FSA and BOJ are welcome. To further enhance systemic risk analysis, closing remaining data gaps and advancing analytical tools for a more comprehensive assessment of systemic vulnerabilities, including those related to foreign currency exposure, remain key priorities. Assigning a formal mandate to the Council for Cooperation on Financial Stability would reinforce the institutional framework, while expanding the macroprudential policy toolkit with targeted borrower-based measures would help mitigate vulnerabilities in the real estate sector.
Further strengthening financial sector oversight is essential to bolster stability and resilience against emerging risks and vulnerabilities. While progress has been made in expanding staffing resources in certain areas, additional allocations are needed to reinforce financial supervision. The authorities should continue to enhance risk-based supervision to respond flexibly to an evolving banking system. Strengthening the Early Warning System with more forward-looking indicators, especially for credit and liquidity risks, and establishing minimum liquidity requirements for domestic banks would enhance stability. Supervisors should also have the authority to adjust bank capital ratios above minimum requirements based on individual risk profiles and financial conditions.
The authorities should remain prepared to address market strains as they arise. The liquidity and functioning of the JGB market have improved since April but experienced temporary deterioration in early August amid a spike in market volatility. Rising foreign market volatility could impact domestic liquidity conditions, potentially triggering spillover effects. To mitigate these risks the central bank should closely monitor liquidity conditions and funding rates in money markets, while paying particular attention to the uneven distribution of liquidity among banks as well as the growth in repo transactions driven by demand from financial dealers and foreign investors. The scope of institutions eligible to receive emergency liquidity assistance could be expanded to nonbank financial institutions, prioritizing central counterparties. Recovery and Resolution Planning should be gradually expanded to all banks that could be systemic at failure, requiring more banks to maintain a minimum amount of loss-absorbing capacity tailored to their resolvability needs.
Structural Policies
Japan’s total factor productivity growth has been slowing for a decade and has fallen further behind the United States. A steady decline in allocative efficiency since the early 2000s has been a drag on productivity, and likely reflects an increase in market frictions. In addition, Japan’s ultra-low interest rates may have allowed low-productivity firms to survive longer than they otherwise would have, delaying necessary economic restructuring. Reforms aimed at improving labor mobility across firms would help improve Japan’s allocative efficiency and boost productivity.
Japan’s labor market is expected to witness a significant transformation driven by population aging and advances in artificial intelligence (AI). Japan is aging rapidly—a trend that is expected to continue over coming decades—and has been at the forefront in labor-saving automation to alleviate labor shortages. Policies can play a crucial role in mitigating the impact of aging on labor supply and facilitating mobility needed to benefit from AI adoption:
While AI may help to address some of Japan’s labor shortages, and since upskilling/reskilling the labor force takes time, attracting foreign workers could help alleviate labor shortages. Government programs have led to a tripling of the number of foreign workers in Japan during the past decade. However, foreigners continue to play a much smaller role in the Japanese labor force than they do in other OECD economies.
Similar to other G20 economies, Japan has increased its adoption of industrial policies. Japan’s industrial policies aim to advance several objectives, including economic security, resilience, inclusive growth, and green and digital transformation (the latter including support for the semiconductor industry). Under this umbrella, multi-year envelopes of 20 trillion and 10 trillion yen have been identified for green transformation and the semiconductor/AI industries, respectively. Given Japan’s limited fiscal space and the unclear growth impact of past IP, industrial policy schemes should be subjected to a comprehensive cost-benefit analysis. Going forward, IP should be narrowly targeted to specific objectives when externalities or market failures exist, to minimize distortions. It should avoid favoring domestic products over imports or creating incentives that lead to a fragmentation of the global system for trade and investment, in line with Japan’s commitment to multilateral economic cooperation.
Japan remains committed to green transformation, and further progress on policies would enable reaching its targets. Notable ongoing efforts—such as the issuance of climate transition bonds to finance government green investment, and the implementation of carbon credits trading—are in line with international practices and previous staff advice. Nevertheless, without further policy changes, Japan is likely to fall short of its targets. To help meet its green commitments while boosting growth, a combination of policies is needed. Options include the removal of energy subsidies, the expansion of carbon pricing, feebates and tradable performance standards. Carbon pricing would need to be accompanied by targeted cash transfers to protect the vulnerable from adverse distributional effects.
The IMF team would like to thank the authorities and other interlocutors in Japan for the frank and open discussions.
[1] An IMF mission, led by Nada Choueiri and including Kohei Asao, Yan Carrière-Swallow, Andrea Deghi, Shujaat Khan, Gene Kindberg-Hanlon, Haruki Seitani, Danila Smirnov and Ara Stepanyan, conducted meetings in Japan during January 23-February 6, 2025. The mission met with senior officials at the Ministry of Finance, Bank of Japan, and other ministries and government agencies, along with representatives of labor unions, the business community, financial sector, and academics.
PRESS OFFICER: Randa Elnagar
Phone: +1 202 623-7100Email: MEDIA@IMF.org
Source: Samsung
Samsung Electronics today announced the global availability of the new Galaxy S25 series. Together with One UI 7, Gemini is officially available at launch in 46 languages,1 making it easier than ever to perform seamless interactions across Samsung and Google apps.
▲ New York 500 Broadway, Galaxy Experience Space
“The Galaxy S25 series is a fundamental shift in how we interact with our phones,” said TM Roh, President and Head of Mobile eXperience Business at Samsung Electronics. “We are thrilled to see how our users will enjoy this true AI companion that offers seamless and intuitive solutions in their daily lives.”
▲ Dubai The Bay Festival City Mall, Galaxy Experience Space
On the Galaxy S25 series, AI agents with multimodal capabilities are integrated within the One UI 72 platform to perform complex tasks seamlessly across apps and enable natural user interactions through speech, text, videos and images. Now Brief3 provides tailored suggestions to guide through the day and Now Bar4 offers a new hub for ongoing activities. From enhanced productivity with Writing Assist to limitless creativity unleashed by Drawing Assist,5 the expanded capabilities of Galaxy AI6 continue to empower users in every aspect of their daily lives.
Interactions with the Galaxy S25 series are also more intuitive. With just a single command, Gemini7 can effortlessly find a user’s favorite sports team’s schedule and add it to Samsung Calendar. Additionally, Google’s enhanced Circle to Search8 now gives users more helpful information with AI Overviews and one-tap actions.
▲ Vietnam Ho Chi Minh City, Galaxy AI Sai Gon Terminal
The Galaxy S25 series further refines and enhances the core capabilities that define the Galaxy experience. Powering the Galaxy S25 series globally, the Snapdragon® 8 Elite Mobile Platform for Galaxy fuels on-device processing for more responsive AI experiences. With unique customizations for Galaxy, including ProScaler9 and Samsung’s mobile Digital Natural Image engine (mDNIe), the Galaxy S25 series boasts enhanced AI image processing and display power efficiency. The newly introduced 50MP ultrawide camera sensor for the Galaxy S25 Ultra delivers epic shots from every range in exceptional clarity, while professional grade controls like Virtual Aperture and Samsung Log turn any photo or video into the ultimate visual experience.
▲ Indonesia Jakarta Kota Kasablanka, Galaxy Experience Space
The Galaxy S25 series is the industry’s first smartphone lineup to support Content Credentials, based on the open technical standard from the Coalition for Content Provenance and Authenticity (C2PA). Samsung has also joined the C2PA as a member, alongside industry leaders including Adobe, Microsoft, OpenAI, Google, Publicis Groupe and more, all collaborating to establish Content Credentials as the universal standard for digital content provenance. In line with its commitment to responsible mobile AI innovation, Samsung adopted this standard to enhance transparency for content created and edited with generative AI.
Starting February 7, the Galaxy S25 series will be widely available through carriers and retailers and on Samsung.com. Galaxy S25 Ultra is available in Titanium Silverblue, Titanium Black, Titanium Whitesilver and Titanium Gray. Galaxy S25 and Galaxy S25+ come in Navy, Silver Shadow, Icyblue and Mint. More unique color options are also available exclusively at Samsung.com,10 including Titanium Pinkgold, Titanium Jetblack and Titanium Jadegreen for Galaxy S25 Ultra as well as Blueblack, Coralred and Pinkgold for Galaxy S25+ and Galaxy S25.
All Galaxy S25 devices will come with six months of Gemini Advanced and 2TB of cloud storage at no extra cost. Gemini Advanced comes with Samsung’s most capable AI models and priority access to the newest features like Gems, custom AI experts for any topic, and Deep Research, which acts as a personal AI research assistant.
For more information about Galaxy S25 series, please visit: Samsung Newsroom, Samsungmobilepress.com and Samsung.com.
▲ Mexico City Santa Fe Mall, Galaxy Experience Space
▲ Brazil Sao Paulo, Galaxy S25 launch event
▲ Germany Berlin, Galaxy Experience Space
1 Supported languages include Arabic, Bengali, Bulgarian, Chinese (Simplified / Traditional), Croatian, Czech, Danish, Dutch, English, Estonian, Farsi, Finnish, French, German, Greek, Gujarati, Hebrew, Hindi, Hungarian, Indonesian, Italian, Japanese, Kannada, Korean, Latvian, Lithuanian, Malayalam, Marathi, Norwegian, Polish, Portuguese, Romanian, Russian, Serbian, Slovak, Slovenian, Spanish, Swahili, Swedish, Tamil, Telugu, Thai, Turkish, Ukrainian, Urdu and Vietnamese.2 The official One UI 7 release will commence with the latest Galaxy S series devices. The update is expected to gradually roll out to other Galaxy devices.3 Now Brief feature requires Samsung Account login. Service availability may vary by country, language, device model, or apps. Some features may require a network connection.4 Availability of functions supported within the apps may vary by country. Some functional widgets may require a network connection and/or Samsung Account login.5 Drawing Assist feature requires a network connection and Samsung Account login. A visible watermark is overlaid on the image output upon saving in order to indicate that the image is generated by AI. The accuracy and reliability of the generated output is not guaranteed.6 Samsung Account login may be required to use certain Samsung AI features. Samsung does not make any promises, assurances or guarantees as to the accuracy, completeness or reliability of the output provided by AI features. Availability of Galaxy AI features may vary depending on the region / country, OS / One UI version, device model and phone carrier. Some function availability may vary by device model. Galaxy AI service may be limited for minors in certain regions with age restrictions over AI usage. Galaxy AI features will be provided for free until the end of 2025 on supported Samsung Galaxy devices. Different terms may apply for AI features provided by third parties.7 Gemini Extensions feature availability varies based on content. Internet connection, Android device, and set up required. Language availability varies. Results for illustrative purposes and may vary. Check responses for accuracy.8 Sequences shortened and simulated. Results for illustrative purposes only. Service availability may vary by country, language, or device model. Requires internet connection. Users may need to update Android and Google app to the latest version. Results may vary depending on visual or audio matches. Accuracy of results is not guaranteed. Works on compatible apps and surfaces, and with ambient music only. Will not identify music coming through headphones or if phone volume is off.9 ProScaler feature is supported on Galaxy S25+ and Ultra models. Image quality can be enhanced up to QHD+, depending on the screen resolution setting of the device.10 Availability of colors may vary by market and network provider.
Source: International Monetary Fund
February 6, 2025
INTERNATIONAL MONETARY FUND PRESS BRIEFING
Washington, D.C. Thursday, February 6, 2025
P R O C E E D I N G S
First, Managing Director Kristalina Georgieva will travel to Ethiopia, the United Arab Emirates, and Saudi Arabia. The Managing Director will visit Ethiopia on February 8th and 9th to meet Prime Minister Abiy and his team, and this visit will take stock of the economic reforms and progress that is being made by the country. She will also meet with stakeholders, including representatives of the private sector.
The Managing Director will also travel to the United Arab Emirates to participate in the Arab Fiscal Forum on February 10th and the World Government Summit on February 11th where she will deliver keynote remarks. On February 16th and 17th, the Managing Director will participate in a two-day conference in Saudi Arabia on building resilience of emerging market economies. The conference is co-organized by the IMF and the Saudi Finance Ministry.
The First Deputy Managing Director Gita Gopinath will travel to Japan to join the Article IV mission. She will participate in meetings with the authorities and hold a press conference on February 7th at 10:30 a.m. Tokyo time.
Finally, Deputy Managing Director Okamura will travel to Japan to participate in a jointly organized IMF-JICA conference on Economic and Fiscal Policy Challenges and Prospects for Asia. And this is scheduled for February 12 and 13.
And with that I will now open the floor for your questions. For those connecting virtually, please do turn on both your camera and the microphone when speaking. Let’s get started.
QUESTIONER: Hi,I was just wondering, you mentioned Ethiopia. How concerned are you about sort of countries with large IMF programs which also receive a substantial amount of support from USAID, considering the recent executive order, countries like Ethiopia and Ukraine, for example. Thanks.
KOZACK: Thanks very much. So with respect to your question, you know we are closely following the announcements and developments regarding USAID. At this stage it’s too early to gauge the precise impact on the countries that it supports. We’ll wait for clarity on the next steps, including any changes to the scope of the work of USAID.
QUESTIONER: So, the IMF mission is going to start working in Ukraine this month. Could you specify please what main issues will the Fund plan to focus on during the Seventh Review of the EFF program. And the second question is about the pension reform in Ukraine. Ukrainian government committed to starting this reform this year. Could you elaborate on what key changes the IMF expects from Ukraine on this area? Thank you.
KOZACK: Are there any other questions on Ukraine?
QUESTIONER: So, according to latest information, the review of the EFF is scheduled to begin this month. When the decision on the disbursement is going to be made and what amount of funds are going to be provided with this fund? And the follow-up, how much money is left in the EFF according to the current situation? Are there any plans to expand this program? Thank you.
QUESTIONER: Just to follow up on the question about Ethiopia. Obviously, the USAID cuts also affect Ukraine pretty significantly. And I wonder, you know, both in those cases and in all cases involving USAID funding, whether you are working with the US ED here and sort of sending a message about the impact. So, whether you’ve kind of figured it out across the enterprise and across all the countries that the IMF works with as well. Thanks.
KOZACK: Anything else on Ukraine online? Okay. So, on Ukraine, just to remind everyone of the context. So, on December 20th, the IMF’s Executive Board approved the Sixth Review of the EFF program. That enabled the disbursement of $1.1 billion and that brought total disbursements under the program to $9.8 billion. And the total size of the program, I believe, was $15.6 billion. So, the difference between those two is what would be remaining. At that time, the Board assessed that program performance remained strong. The authorities had met all of the benchmarks and prior actions for the review.
With respect to the next mission, the technical work for the upcoming review is underway. The mission dates are in the process of being finalized, and once we have them, we’ll be sure to communicate that. During this upcoming mission, the IMF staff will engage with the authorities on fiscal policy, including progress on revenue mobilization, monetary policies for 2025, and also progress in ensuring that debt sustainability and fiscal sustainability are restored. Staff will also be reviewing governance reforms, which remain a key pillar for the program. Based on the approved calendar of disbursements, subject to completion of the next review and, of course, subject to Board approval, Ukraine would have access to about $900 million for that next review.
With respect to pension reform, the government has committed to launch pension reforms this year in 2025, and they would be spearheaded by the Ministry of Social Policy. And those reforms are supported by external partners, notably the World Bank. What I can also add is that the authorities are in the process of developing a comprehensive set of proposals for pension reforms, but it’s too early to tell exactly what will be included in those proposals and what the changes may be.
And on the second question, I don’t really have much to add to what I already said, other than obviously we’re paying close attention and we’re awaiting further details.
QUESTIONER: Hi, good morning. Thank you for taking my question. Just on Syria, can you give us an update if the IMF has made any contact with the new government and if there are any plans to provide a loan package to the country? Thank you.
KOZACK: We’re closely monitoring, obviously, the situation in Syria, and we stand ready to support the international community’s efforts to assist Syria’s reconstruction as needed and when conditions allow. With respect to our engagement, we have not had a meaningful engagement with Syria since 2009, which was the time of the last Article IV Consultation, and this has been due to the difficult security situation in the country.
QUESTIONER: I have two questions, and they’re Caribbean-related questions. Can you provide a breakdown of the growth projections for the Caribbean region, more specifically, focusing on St. Kitts and Nevis, and what factors are driving the projected growth or decline outlook for the region, more specifically, the Caribbean region?
KOZACK: Okay. All right, let me step back and give a little bit of an overview of where we stand, what our view is on the Caribbean. So, following the rapid recovery after the Pandemic, real GDP growth in the region has normalized in recent years. Average GDP growth for the region, and this is excluding Guyana and Haiti, is estimated at 2.2 percent for 2023, 2.4 percent for 2024. And growth, our projection is for growth to remain relatively stable at 2.4 percent in 2025.
Broadly speaking, there are sort of two groups of countries in the Caribbean. So, we look at tourism-dependent economies, and there we see that growth in tourism economies has slowed as tourism arrivals have returned to pre-Pandemic levels. And then for commodity-exporting countries, they have faced challenges in the energy sector but have overall benefited from robust performance in their non-energy sector, and that has been driven by supportive and economic policies.
I can also add that inflation in most Caribbean countries has moderated significantly over the past few years, and the decline was due to lower global commodity prices and easing of supply chain disruptions. And we expect inflation to remain moderate in the years to come.
QUESTIONER: My question is on the comment by Managing Director Georgieva in Davos. MD mentioned in Davos clearly that more cooperation in the regional levels might be needed in the future in such a fragmented world and IMF would support such a movement. And could you give me some more detailed plans?
KOZACK: Thanks very much for the question. What the Managing Director noted in Davos is that we are seeing shifting patterns in global cooperation, in trade, and in other areas, including financial and capital flows. And of course, as a global institution, what will be important for us is as we engage with our membership, right, to take all of this into account to ensure that we can give our members the best policy advice within our mandate of economic and financial stability.
QUESTIONER: Thanks so much, Julie. I wanted to ask you very broadly about the changes that are happening in the United States and the tariffs that President Trump has announced. Now the implementation of the tariffs on Canada and Mexico has been delayed to March 1st. And, you know, it’s not clear what will happen there exactly. But one of the, you know, the tariffs on China have stayed in place. China has now announced tariffs that will kick in on February 10th. The IMF has warned repeatedly against rising protectionism and also kind of cataloged the thousands of trade restrictions that have been put in place and growing over time since COVID. Can you just walk us through what your perception is right now? The markets have been really all over the place, you know, sort of up and down depending on the day’s mood. Do you see this period of trade uncertainty that you warned about in the WEO, kind of really affecting and dampening global growth prospects? Thanks.
KOZACK: Thanks very much. Let me see if anyone else has questions on this broad topic.
QUESTIONER: Thank you. Yeah, I was just wondering, just to follow on the previous question, how you sort of think about the unpredictability of of these tariffs or the discussions around the tariffs, the uncertainty that that kind of brings up, and potentially how that could affect monetary policy. We’ve seen a lot of analysts talking about how they no longer expect the Fed to cut, or they expect the Fed to cut maybe only once this year. I’m just sort of wondering how you’re kind of in real time or as close to real time as you can, sort of taking on board that unpredictability when you think about the U.S. economy and the impacts for global growth. Thanks.
KOZACK: Great. And you also had a question.
QUESTIONER: Yes. Just following up with my colleagues. What sort of study, if any, has the IMF undertaken to better understand the global ramifications of these tariffs? We know they’re on pause for another 30 days or so or less. And what sort of impact would small states that are heavily dependent on the United States feel going forward?
KOZACK: And let me go online to see if anyone online has a question along these lines.
QUESTIONER: It is very similar. Just wondering the fact that it’s not just tariffs that have imposed on China, but the threat of tariffs on countries across the EU, Canada, and Mexico, and what effect that has on the global outlook. Thank you.
KOZACK: Okay. Thank you. Anyone else online want to come in on this topic? Okay. So, what I can say on this issue is we’re following the announcements by the U.S. with respect to tariffs on Chinese goods and potentially Canadian and Mexican goods. We’re following these announcements. We believe that it’s in the interest of all to find a constructive way forward to resolve this issue.
With respect to the assessment, assessing the full impact of these measures of tariffs, it’s actually going to depend on several factors, and let me lay those out. One of those factors is going to be the responses of the countries concerned. Another factor will be how firms and consumers react. And finally, how the measures evolve over time will also have an impact.
So, at this stage, that’s what I can share with you. We will, of course, have more information over time and in due course as the situation evolves.
QUESTIONER: Julie, I’m sorry, I think the question is, like, can you say something about what uncertainty does to the global economy? I mean, you’ve talked about this in WEO’s before, but do you see this as a period of heightened uncertainty now that Trump has taken office? And, you know, what is the impact of that uncertainty on things like investment and all this, you know, the sort of categories of economic indicators that we look at?
KOZACK: So, I think what I can say is, of course, I would refer you to the WEO for some of those analysis. And again, assessing the full impact of this will include all of the factors that I just laid out. And we would take into account issues related to uncertainty, market reactions, et cetera, in an assessment that we will ultimately undertake as the situation evolves and once we have more information.
Let me now go online. I see a couple of hands up. So, if you’re online, please go ahead and jump in.
QUESTIONER: Hi, good morning. Thank you for taking my question. Well, has the letter of intent between the IMF and Argentina been prepared? Or let me ask in a different way. Are the negotiations between Argentina and the IMF already in the final stage?
KOZACK: Thanks. Other questions on Argentina?
QUESTIONER: Could you give me any updates on the negotiations of the new agreement and what are the most challenging issues they are facing right now? And also yesterday, Minister Luis Caputo said a new agreement will not imply a devaluation of the peso or the exit of the exchange restrictions the next day. Does the IMF agree with this statement?
KOZACK: Thanks. Others on Argentina?
QUESTIONER: Hi, Julie. I was wondering also if you could give some input regarding the meetings that the mission in Buenos Aires had, if they have only been talking to government officials or if they are also contacting unions and other opposition representatives. And also, the new crawling peg of 1 percent has started this February. I was wondering if that was a matter of discussion between the staff and the government.
KOZACK: Thanks, other questions?
QUESTIONER: Yes, thank you, Julie. So, my question is also on the crawling peg. So, is the IMF concerned about the greater exchange rate delay generated by this reduction of the crawling peg from 2 percent to 1 percent started the 1st of February?
KOZACK: Any other questions on Argentina? Okay, I hear two more. Please go ahead.
QUESTIONER: Hi, Julie, I wanted to know if Argentina has already paid a debt due on February 1st or when is it expected to do so? And if there is a meeting plan between Argentina authorities and the IMF network staff in Washington.
KOZACK: Thank you. Next.
QUESTIONER: Good morning. The question is if Argentina and the IMF comes to a new agreement, should it be like we are talking here in Argentina about $5 million? It will be for anything special, for example, to leave what we call cepo, or it depends on the Argentine authorities.
KOZACK: Any other questions on Argentina? Okay, I do not see anyone coming in.
So, on Argentina, what I can share is first that, as the Managing Director highlighted after her meeting with President Milei last month, we recognize Argentina’s tremendous progress in reducing inflation, stabilizing the economy, returning to growth, and with poverty finally starting to decline. We continue to engage constructively with the Argentine authorities. And a staff mission did recently visit Buenos Aires to advance discussions on a new program. The new program will aim to build on the gains that have been achieved so far, while also addressing the remaining challenges that the country faces. Constructive and frequent discussions continue, and we will provide further details on next steps when we have them.
I can also just add that to sustain early gains, there is a shared recognition between the Fund staff and the Argentine authorities about the need to continue to adopt a consistent set of fiscal, monetary, and foreign exchange policies while furthering growth-enhancing reforms. I also know that you have a lot of interest, and there were a lot of detailed questions here, but given that the discussions are continuing and there has been good progress so far, we do want to ensure that there is space for staff and the authorities to continue these constructive discussions. And of course, we will communicate more when we have further details.
Okay, let us go online because I see a few hands up.
QUESTIONER: My question is, when do we expect Board of Directors to discuss Egypt Fourth Review?
KOZACK: Do we have other questions on Egypt?
QUESTIONER: Hi, I’d like to ask, in addition to that, when the board does discuss Egypt’s Fourth Review, will it also be discussing an additional RSF for Egypt? There have been some reports that Egypt is in line to receive as much as $1 billion.
KOZACK: Other questions?
QUESTIONER: I just wanted to ask, in terms of the assessment of Egypt, but also other countries in the region, to what extent you are calculating additional costs and spending needs that have to do with Gaza and with the potential absorption of Palestinian refugees that has been proposed.
KOZACK: Okay, any other questions on Egypt? I see I have two questions that have come through the press center, which I will read aloud. So, the first is when will the IMF’s Executive Board complete the Fourth Review of the Extended Arrangement under the Extended Fund Facility for Egypt?
The second question is regarding the Executive Board’s approval of the Fourth Review of Egypt’s program, could it be this month? Does the IMF have updates on your projections for Egypt’s economy in light of regional updates?
Let me share with you where we are on Egypt. On December 24, the IMF staff and the Egyptian authorities reached a staff-level agreement on the Fourth Review of the EFF. This review is subject to approval of our Executive Board and subject to that approval, Egypt would have access to about $1.2 billion. Preparations for Board consideration are underway, and the Board meeting is expected to take place in the coming weeks.
In light of the difficult external conditions and challenging domestic environment, the IMF staff and the Egyptian authorities agreed to recalibrate the fiscal consolidation path, and this was agreed in December, I would highlight, to create fiscal space for critical social programs benefiting vulnerable groups and the middle class while ensuring debt sustainability.
Looking forward, reform priorities comprise lowering inflation, sustaining exchange rate flexibility, and liberalized access to foreign exchange. In addition, the program aims to boost domestic revenues. It aims to improve the business environment. It aims to accelerate disinvestment or divestment rather and leveling [of] the playing field between state-owned enterprises and the private sector. And of course, it also aims to enhance governance and transparency.
With respect to the question on the RSF, a policy package of reforms will be considered by the Fund’s Executive Board along with the Fourth Review of Egypt’s program.
And lastly, there is no connection at the moment between some of the announcements in Gaza and the and the Egypt program.
QUESTIONER: Hi, I wonder if I can just clarify. On the RSF, you say a policy package of reforms that also presumably comes with some additional funding. Can you confirm whether the amount of up to $1 billion is accurate?
KOZACK: I can’t confirm now the precise amount of the RSF, but of course as we have more information, we will provide that.
QUESTIONER: Thank you so much.
KOZACK: Let us go online. I see another hand online and then we will come back. Just one follow up, a follow up. Go ahead.
QUESTIONER: You cannot confirm the amount of the RSF. So just so we are clear, are you confirming that there are discussions around an RSF? Thanks.
KOZACK: Yes, there’s discussions on an RSF and the intention is to present the RSF with its package of reforms to our Executive Board at the same time as we present the Fourth Review of the EFF.
QUESTIONER: Question about Rwanda and Eastern Congo. I wanted to know, I know that the IMF has programs with both Rwanda and the DRC. And I wanted to know, you know, given the M23 incursion, the fall of Goma, how the programs can react to it, if there is anything you can say about that. And also, obviously, in El Salvador, they changed their cryptocurrency law, but it is also reported that they recently bought 50 bitcoins. So, some people are for the kind of national treasury. Some people are confused in terms of what the contours of the limitations put on. And I wonder if you could comment on that. Thanks a lot.
KOZACK: Okay, thank you. Any other questions on these countries? DRC, Rwanda, El Salvador?
Okay, let me start with DRC and I want to start by saying that, you know, we are deeply saddened by the loss of lives and the humanitarian crisis in the Eastern part of DRC. We are closely monitoring the situation, including its potential impact on neighboring countries and the region. And of course, we are also closely monitoring with respect to potential impact on our program.
With respect to Rwanda, what I can say on Rwanda is simply that the country continues to demonstrate a robust commitment to advancing policy reforms. And In December of 2024, our Executive Board concluded the Fourth Review of Rwanda’s programs.
With respect to El Salvador, just to step back and remind, IMF staff and the Salvadorian authorities reached a staff-level agreement on December 18th for a new arrangement, a new EFF arrangement. The arrangement would be for about $1.4 billion to support the government’s reform agenda, and this agreement is subject to approval by the IMF’s Executive Board.
I can also add that as explained in the press release that we issued following the staff-level agreement, the new Fund supported program aims to reduce the potential risks of the bitcoin project. Once in place, purchases of bitcoin will be confined under the program as agreed.
QUESTIONER: Thank you, Julie. Good morning, everyone. A few things. In Zimbabwe, when you expect a deal for the Staff Monitored Program? And on Lebanon, have you had any contact with the new government? Are there any signs that you are going to be able to work with them? Also on Senegal, can you give us any update on the resolution of the suspension of the financing program there? And lastly, are there any concerns of a drop in the commitment of funding from the U.S.? The 2025 project calls for the U.S. to stop putting money into the World Bank and the IMF. So, are you guys concerned about that?
KOZACK: Okay, thanks. Starting with Zimbabwe, I do not have an update for you for today on Zimbabwe, but we will come back to you bilaterally.
On Lebanon, what I can share is that, you know, we welcome the election of General Aoun as president of Lebanon, and we look forward to working with him and his new government to address the challenges facing the Lebanese economy. And just to remind, Lebanon continues to face profound economic challenges, and the conflict had exacerbated an already fragile macroeconomic and social situation. The election of the president, the formation of a new government, as well as the ceasefire, are critical to support policy actions and reforms that would allow the gradual return to the normalization of economic activity in Lebanon.
And what I can share on Senegal is that we are actively engaged in discussions with the authorities on addressing the misreporting case. Senegal’s Court of Auditors is expected to issue its final report this month. In parallel, IMF staff are working closely with the authorities to identify their capacity development needs and to implement corrective measures needed to address the root causes of the misreporting. These efforts are aimed at enhancing transparency, strengthening accountability, and preventing a recurrence of similar misreporting in the future.
And I think, on your final question, all I can say here is that the United States is the IMF’s largest shareholder, and it plays an extremely valuable role in helping ensure global financial stability. We have a long history of working with successive U.S. administrations, and we look forward to continuing to do so.
QUESTIONER: Thanks, Julie. Thank you for taking my question. When do you think we can expect the Executive Board’s approval on the next tranche for the Island Nation? And if there is any delay, what sort of reason is there? Is there more for the government to do? And secondly, the budget for the country is expected in a few weeks. Has the IMF given any input on preparing this budget, given the fact that the country is still in the EFF program?
KOZACK: Thanks. So, your question was on Sri Lanka? And yes, I see you nodding. So, if anyone else has questions on Sri Lanka, I can take them now. Okay. If not, let me go ahead with Sri Lanka.
So, on Sri Lanka on November 23rd, IMF staff and the Sri Lankan authorities reached a staff-level agreement on the Third Review of Sri Lanka’s EFF program. Once approved by the IMF’s Executive Board, Sri Lanka will have access to about $333 million in financing. And we expect the Board meeting to take place in the coming weeks.
Here, I would also just like to take the opportunity to emphasize that Sri Lanka’s ambitious reform agenda is delivering commendable outcomes. The economy expanded by 5.5 percent in the fourth — third quarter of 2024. Average headline and core inflation remain contained well below the target during the fourth quarter of 2024. And international reserves increased to $6.1 billion at the end of 2024.
With respect to the specific question on the budget, what I can share is that the staff-level agreement that I mentioned, which was reached in November, will be presented to the Executive Board or is subject to Executive Board approval, but it’s also contingent upon, among other things, implementation by the authorities of prior actions, including submission of the 2025 budget that is consistent with parameters identified under the program.
QUESTIONER: Most of the questions we had have been touched upon, and I would just reinforce as well what colleagues had said earlier about trying to get a sense of what all this uncertainty around tariffs will mean. I know there is a tendency to talk about the policies once they are implemented and the impact. But given the fact that policies get announced and withdrawn and swung around, it seems like the uncertainty has more of the impact than the actual policy. But all that seems to be covered. I will get to — actually, the only outstanding question we have now is if you could update us on the status of the Mozambique program and if there is a risk to that program’s existence right now, given what is going on. That is for our Africa colleagues. Everything else was covered. Thank you so much. I appreciate it.
QUESTIONER: Julie, regarding Russia, are there any developments concerning the postponed mission to Russia to evaluate progress in economy that was stopped in September due to necessity to gather additional information and make additional analysis. Anything we should expect this year, probably? Thank you.
KOZACK: Unfortunately, I don’t yet have an update for you or a timeline for the Article IV.
QUESTIONER: One final question. Thank you. Sorry, Julie, I’m going to try again with a sort of a similar question. But, you know, we are seeing a fundamental shift in the global and potentially in the support that is available for developing countries. The United States has ended foreign assistance. It has frozen funding for the World Food Program. It is pulling out of and talking about pulling out of the World Health Organization. These are institutions that are part, writ large, of the Bretton Woods system in which the IMF is such a key player.
So, I do not think it’s unfair of us to be asking for some guidance from you about how you at an institution like the IMF are approaching this period of time that is marked by uncertainty, not just for the markets or for global trade, but also for the institutions themselves. And, you know, we have seen some initial reports that Elon Musk’s DOGE employees or people who work with DOGE are starting to look at the World Bank and other institutions.
And I, you know, so I guess we want to hear something from you that is a little bit broader about the time that we’re in and what it means, because it obviously has implications for other countries, too, if they’re going to fill the gap in the developing thing. And, you know, you have been warning for years that the developing economies face a kind of perfect storm of different difficult circumstances. This seems like it adds to, to it. Thanks.
KOZACK: Thanks very much. Look, what I can say now is really what I’ve been saying. I really do not have much to add other than that we are a global institution. We have a clearly defined mandate to support economic and financial stability globally and just ultimately support growth and employment in the world economy. We are continuing as an institution to remain laser-focused, of course, on that mandate. And we, as a global institution, take our responsibility to serve our membership very, very seriously. And we will continue to do everything that we need to do to serve our membership in the best possible way. You know, we do, as I said, have a long history of working with successive U.S. administrations, and we look forward to continuing to do so as an institution for which the U.S. is our largest shareholder.
And with this, I’m going to bring this press briefing to an end. Thank you all for your participation today. As a reminder, this briefing is embargoed until 11:00 a.m. Eastern Time today. A transcript will be made available later on IMF.org, and as usual, in case of clarifications, additional queries, or anything else, please reach out to my colleagues at media@mf.org.
This does conclude our first press briefing of the year. I wish everyone a wonderful day and I do look forward to seeing you next time. Thank you all so much for joining, and please be safe given the weather outside here in D.C. Thank you, everyone.
* * * * *
PRESS OFFICER:
Phone: +1 202 623-7100Email: MEDIA@IMF.org
Source: Microsoft
Headline: Great to see so many customers and partners unlocking the full ROI of AI.
Satya Nadella Full version..!! Much appreciated for this comprehensive analysis on AI. AI is the future & we, the humans have to adapt with AI , the Ethical AI. Artificial Intelligence is indeed transforming the job market in profound ways. While it simplifies processes by automating repetitive tasks, its true value lies in opening doors to innovative opportunities. It challenges individuals and organizations to adapt, reskill, and focus on more complex, creative, and strategic roles. Embracing lifelong learning and fostering ethical AI practices are essential to navigate this shift successfully and ensure AI benefits both businesses and society equitably. Absolutely! Viewing AI as an enabler rather than a threat is the key to unlocking its full potential. By leveraging AI for augmentation, individuals and organizations can amplify their productivity, enhance creativity, and drive innovation. Collaboration with AI allows us to focus on higher-value tasks that require human ingenuity. Preparing now through upskilling and adaptability will empower us to harness the vast opportunities of the AI-driven future while staying ahead in this evolving landscape…!!!
Source: Microsoft
Headline: GitHub Copilot is all-in on agents. Check out Agent Mode, and a first look at our Autonomous SWE agent.
Today, we are infusing a new force throughout the GitHub Copilot experience, elevating Copilot from a pair to peer programmer with the power of AI agents: – GitHub Copilot Agent Mode: When you toggle on agent mode in VS Code, Copilot goes beyond your initial request, completing all necessary subtasks to ensure your primary goal is achieved. Agent mode allows Copilot to iterate on its own code, propose and guide terminal commands, and analyze and resolve run-time errors. Available today for VS Code Insiders. – GitHub Copilot Edits: We’re also announcing the GA for Copilot Edits in VS Code. First announced at GitHub Universe, it combines the best of inline edits and chat, allowing you to make changes across multiple files by prompting in natural language. And with multi-model choice, you can choose the foundation language model that you prefer between: OpenAI’s GPT-4o, o1, or o3-mini, Anthropic’s Claude 3.5 Sonnet, and now, Gemini 2.0 Flash. – Project Padawan: Finally, a sneak peek at our autonomous SWE agent and how we envision these types of agents will fit into the GitHub user experience. When it’s released later this year, Project Padawan will allow you to directly assign issues to GitHub Copilot – using any of the GitHub clients – and have it produce fully-tested pull requests. From code completions, chat, and multi-file edits to workspace and agents, Copilot puts the human at the center of the creative work that is software development. AI helps with the things you don’t want to do, so you have more time for the things you do. We’re excited to get your feedback on all of the above. Because in our quest to maximize developer productivity and happiness, it’s: Do. Or do not. There is no try.
Source: Bank for International Settlements
Welcome, everyone, and thank you for attending the first edition of the Chapultepec Conference. The aim of this event is to allow central bank Governors to reflect and share perspectives on the major economic and financial issues facing the Americas. I am sure that today’s meeting will be followed by many others.
Today’s conference has a rich agenda. We started this morning by discussing global financial conditions and digital innovations. After lunch, we will turn to monetary policy.
I will use my time today to give some background to this afternoon’s discussions. I will aim to provide some perspective on the course of monetary policy in the Americas over the past few years. I will then turn to what I see as the key challenges facing central banks in the region in the coming years. My comments will focus on Latin America, although many of the themes have broader relevance.
Monetary policy developments in recent years have been profoundly shaped by the events of the Covid-19 pandemic and its immediate aftermath.
When the pandemic struck in 2020, central banks throughout the world took decisive measures. They lowered interest rates to record lows, offered new liquidity facilities and expanded existing ones. Many central banks also made asset purchases.
For advanced economy central banks, including the Federal Reserve and the Bank of Canada, the policy response followed a broadly familiar playbook, although the size of the response was unusually large.
But for many emerging market economy central banks, including those in Latin America, such a strong, countercyclical policy response marked a departure. In past crises, policy had often responded procyclically, not least due to concerns about possible currency depreciation.
Two factors contributed to this different response in Latin America during the pandemic. First, monetary policy frameworks in Latin America had been strengthened over the previous decades. In particular, the autonomy obtained in the 1990s was a rock-solid foundation, without which a countercyclical policy response would not have been possible. Second, the pandemic was a global shock. The fact that central banks worldwide, including the Federal Reserve, were loosening their policy stances no doubt made it easier for central banks in Latin America to follow suit.
While the policy easing at the start of the pandemic was highly synchronous, the tightening in its aftermath was less so. Central banks in Latin America, in particular, were relatively quick to unwind emergency policy settings in response to emerging inflationary pressures in early 2021. In doing so, they drew on the experiences of the 1970s and 1980s, when high inflation and wage-price spirals were prevalent. Monetary policy in advanced economies was, in my view, more heavily influenced by the extended period of below-target inflation that preceded the pandemic.
Early and forceful policy tightening worked. By slowing demand, it contributed directly to lowering inflation. Just as importantly, decisive tightening helped keep long-term inflation expectations anchored. Even when inflation initially rose, the public never lost confidence in central banks’ commitment and ability to bring inflation back to target. In countries with a history of high and volatile inflation, like many in Latin America, this is a clear success. It has helped to prevent a wage-price spiral similar to that experienced during previous episodes. Moreover, unlike in many episodes of the 1980s and 1990s, there was no financial or banking crisis.
The job is not done, however. In much of the Americas, inflation remains above target. And the road back to price stability looks bumpier than it did even six months ago, not least due to heightened policy uncertainty. Over the past few years, central banks were able to draw on their accumulated credibility to limit the rise in inflation and bring it down at relatively little cost to economic activity. But to safeguard their credibility for the future, they have to see the job through and deliver on their mandates.
Let me spend the rest of my speech discussing some of the challenges that I believe will affect the conduct of monetary policy in the coming years.
The first challenge is policy uncertainty. Trade policy is the most prominent example. But the future evolution of fiscal policy, regulation and immigration policy is also open to many questions at present. Moreover, the geopolitical backdrop remains in flux.
Such pervasive policy uncertainty will affect central banks in several ways.
Uncertainty itself is likely to weigh on growth. Firms will postpone investment. Households may avoid large purchases. In isolation, these effects would weigh on inflation.
But an uncertain world is also likely to be a more volatile one, particularly for financial markets. Already in recent weeks, we have seen sizeable swings in asset prices, including exchange rates, as market participants struggled to determine how policy settings would evolve, and how to position themselves accordingly. Some of these asset price movements, particularly exchange rate depreciations, could be inflationary.
At some point, of course, many of today’s policy uncertainties are likely to be resolved. Depending on the policies adopted, these choices will have their own consequences for growth and inflation.
The second challenge is high public debt and, in some countries, unsustainable fiscal positions. Public debt was already high in much of the world before the Covid-19 pandemic. It has increased further since then. And the widening of budget deficits at the start of the pandemic has still not been fully unwound.
Loose fiscal policy complicates the task of central banks in several, well known, ways. By contributing to aggregate demand, it adds to inflationary pressures, complicating the return to price stability. By raising doubts about the long-term sustainability of public finances it can increase interest rate risk premia and can lead to currency depreciation, further raising inflation while weighing on growth. In the extreme, an abrupt repricing of public debt could put financial stability at risk, especially in countries where banks and non-bank financial institutions hold large shares of the public debt. But even if these channels are familiar, central banks will still need to navigate the consequences.
The third challenge is international divergence. As I mentioned before, the pandemic was a global shock, leading almost all central banks to ease policy at about the same time. The subsequent inflationary outbreak saw most tighten policy, even if many emerging market economy central banks started to do so ahead of their advanced economy peers.
Going forward, economic conditions, and hence appropriate policy settings, are likely to be less synchronous. In particular, economic growth in the United States has been much stronger than in much of the rest of the world of late. Should this continue, we could see greater variability in policy settings, with flow-on effects to capital flows, exchange rates and global financial conditions.
A fourth, and related, challenge is continued sluggish productivity growth in most countries of the Americas, except the United States. Some factors behind this problem are insufficient investment in infrastructure, education and technology. Many countries face structural inefficiencies, such as rigid labour markets and bureaucratic hurdles, which hinder businesses’ ability to innovate and expand. A retreat from globalisation and widening trade fragmentation could weigh on productivity growth further.
Low productivity growth makes central banks’ lives much harder. In particular, it creates pressure to keep policy settings loose in order to sustain economic growth in the face of weak fundamentals. I don’t need to tell this audience that this policy prescription is all wrong.
Addressing low productivity growth requires structural reforms that make it easier to open a business, compete and invest. Regrettably, structural reforms had been lagging in many economies well before the pandemic. Consolidating fiscal positions and rationalising public expenditure may also free up resources to improve public investment to develop necessary infrastructure and improve human capital. Such policies, of course, lie outside central banks’ toolkit.
Faced with all of these challenges, many of which are beyond their control, what can central banks do?
A first task is to ensure that at least one key prerequisite for sustained economic growth – price stability – is beyond question. In doing so, they can help remove one potentially destabilising source of policy uncertainty. The history of this region regrettably features many examples of the adverse consequences when the public loses confidence in central banks’ ability and willingness to achieve their mandates. The experience of the Covid pandemic showed us how much better outcomes can be if such confidence is maintained.
That said, the specific policy settings to deliver monetary and financial stability are themselves uncertain. Much will depend upon how policy uncertainty evolves, and on the specific constellation of policies that are ultimately adopted. Appropriate policy settings will also change over time. In the meantime, bouts of market volatility are likely. At such times, central banks may need to act, in a judicious and limited manner, to safeguard market stability.
So central banks will need to remain on their toes, be attuned to recent developments and stand ready to act firmly and decisively when required. While central banks’ ultimate objectives – monetary and financial stability – should be steadfast, commitment to specific policy settings should be avoided. Maintaining flexibility to adjust policy settings rapidly in response to changing circumstances will be at a premium.
Beyond the immediate conjuncture, I believe the time is also opportune for central banks to build on the lessons of the past few years, in order to better prepare themselves for the future. The policy reviews currently being undertaken in a number of economies represent such an opportunity.
In particular, a key lesson that I draw is how quickly and fundamentally seemingly pervasive features of the economic landscape can change. Before the pandemic, there was broad-based agreement that the global economy would face strong deflationary pressures for the foreseeable future. Real rates were expected to remain at historical lows, raising the risk of persistent liquidity traps.
Today it is clear that inflation risks are much more two-sided than we had previously thought. And it is also clear that the general public is much more resentful of even a relatively brief period of high inflation than a prolonged period of modestly below-target inflation. Our policy frameworks should take these lessons into account. But they will also need to be robust to a future that could look very different from even the immediate past. A key reason for the success of many Latin American central banks in navigating the post-pandemic inflation surge was their ability to adapt rapidly in the face of changing circumstances. Such adaptability is a trait to which all policy frameworks aspire.
Let me close with a plea for central bank cooperation. Central banking is not a zero-sum game. Above-target inflation or low growth in one country does not benefit others, but makes their life more difficult. This means there is significant scope for cooperation. It will be much easier to meet the challenges of tomorrow together than alone.
The BIS will be there to support you in this endeavour. The BIS’s mission is to support central banks’ pursuit of monetary and financial stability through international cooperation, and to act as a bank for central banks. The BIS Representative Office for the Americas will continue to promote cooperation among central banks in the Americas and the Caribbean and to link central banks in the region to those in other regions.
Source: Thales Group
Headline: Thales celebrates 40 Years of excellence and commitment in Central America and the Caribbean, serving clients and partners
Thales, a global leader in advance technologies, is proud to celebrate 40 years of presence in Central America and the Caribbean. Since its arrival in the region, Thales has been contributing to the development of key sectors such as Defence, Aerospace, Cyber & Digital from 1985 until today, and continues to support all clients, such as government entities, private institutions and cities.
Thales’ presence in Central America and the Caribbean has been fundamental and has evolved significantly over the years, establishing the Group as a key player in various sectors. Among the most notable projects, Thales has been a long-term partner to COCESNA (Central American Corporation for Air Navigation Services) for over 25 years, playing a crucial role through the provision of advanced technologies and innovative solutions for air traffic management.
Thales’ collaboration with COCESNA reflects a long-term partnership based on trust and technical excellence, aimed at improving the safety and efficiency of aviation in the Central American region. In 2024, Thales secured a significant contract that reflects the trust and support placed in the company by this client, aimed at enhancing critical aviation systems in six Central American countries: Belize, Guatemala, Costa Rica, Honduras, El Salvador, and Nicaragua.
In Panama, for over 10 years, Thales has been the main supplier to the Civil Aviation Authority, providing both air traffic control centers and essential navigation systems for the safe and efficient operation of flights. Additionally, Thales has implemented various technology systems for Copa Airlines, including advanced solutions onboard its fleet of aircraft and for the protection and secure management of its data.
In the Dominican Republic, Thales maintains a continuing partnership with the Dominican Institute of Civil Aviation, being the main supplier of the control tower and air navigation systems for Las Américas, Punta Cana, Puerto Plata, and Cibao airports to ensure that each flight is a safe experience.
Thales is also a strategic partner of the Government of Jamaica, providing advanced solutions and technologies for national security, supporting the Armed Forces in their mission to strengthen national defense with the Bushmaster armored vehicle fleet and the coastal surveillance system for the safety and management of maritime areas. Thales also supports the Jamaica Civil Aviation Authority with radar systems and control centers for efficient surveillance and management of its airspace. In the country, Thales also developed the National Identification System, improving public services and security through the precise identification of each citizen, enhancing the country’s security and efficiency.
Thales is a leader in Cyber and Digital in the region and a strategic partner of leading banks and financial institutions, ensuring the security of their banking transactions by providing robust solutions that protect both information and financial operations, contributing to strengthening trust in the financial ecosystem.
Throughout this journey, Thales has forged alliances with governments, businesses, and organizations, creating a collaborative ecosystem that enhances technological and business development. It has adapted to local markets and the unique needs and challenges of the region, offering solutions that address every requirement.
“We are excited to celebrate this important milestone in our journey in Central America and the Caribbean. This achievement reinforces Thales’ strong commitment to supporting the region in its crucial moments. We drive its technological transformation and strengthen its future with advanced security solutions, ranging from coastal surveillance and border security systems to urban protection, cybersecurity, critical infrastructure, and specialized solutions for airports and airlines” said Ariane Andreani, Country Director of Thales for Central America and the Caribbean.
“Our commitment to local presence, innovation, and continuous improvement has been key to successfully serving our clients and partners. We thank them for their support over the years and are committed to continuing to build together in the years to come” she added.
About Thales
Thales (Euronext Paris: HO) is a global leader in advanced technologies specialized in three business domains: Defence, Aerospace, and Cyber & Digital. It develops products and solutions that help make the world safer, greener and more inclusive. The Group invests close to €4 billion a year in Research & Development, particularly in key innovation areas such as AI, cybersecurity, quantum technologies, cloud technologies and 6G. Thales has close to 81,000 employees in 68 countries. In 2023, the Group generated sales of €18.4 billion.
CONTACTO DE PRENSA:
Julieta Martellotta
External Communications Manager Thales LATAM
julieta.martellotta@thalesgroup.com
+5491158010260
Source: WTO
Headline: WTO issues panel report regarding US duties on fish fillets from Viet Nam
On 17 January, the parties notified the WTO that they had reached a mutually agreed solution to the matters raised in the dispute. In accordance with Article 12.7 of the Dispute Settlement Understanding, the panel report provides a brief description of the dispute and notes that a solution has been reached.
Summary of key findings
Download in pdf format:
Panel report
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Source: Thales Group
Headline: Thales Alenia Space and NIBE sign a satellite supply contract for NIBE’s Earth observation constellation project
With this first satellite supply contract, NIBE aims to launch its first high-resolution optical satellite by 2025
Cannes, February 6th, 2025 – Thales Alenia Space, the joint venture between Thales (67%) and Leonardo (33%), has signed a contract with NIBE Space (a subsidiary of NIBE Limited) concerning the supply of a high-resolution optical satellite, marking the first step in NIBE’s Earth Observation constellation project. This initial contract aims to establish the first operational Earth observation’s capabilities for NIBE in India by 2025.
This achievement reinforces the partnership initiated in 2024 between Thales Alenia Space and NIBE, for the deployment of India’s first private Earth Observation constellation.
NIBE ©BlackSky_Thales Alenia Space_E.Briot
The contract was signed today in Pune during a ceremony graced by the presence of Honorable Chief Minister of Maharashtra Shri Devendra Fadnavis. BlackSky also signed a service agreement for subscription-based imagery and analytics to deliver space-based monitoring services supporting NIBE’s various Indian customers.
“I am extremely pleased that Thales Alenia Space will contribute to developing sovereign Earth Observation capabilities in India,” said Hervé Derrey, CEO of Thales Alenia Space. “Supporting the deployment of India’s first private Earth observation constellation means a lot to our company as this is Thales Alenia Space’s first cooperation on an Indian space program. I would like to thank NIBE for putting its trust in our company. We look forward to making available our long-standing expertise and industrial capabilities in optical and radar sensors and start a promising Space cooperation with India.”
“We are proud to see our partnership with Thales Alenia Space take another concrete step forward with the signing of the contract for a high-resolution optical satellite. This is part of our larger national endeavor, aligned with the Aatmanirbhar Bharat vision, to bolster India’s position as a leader in space technology and applications,” said Ganesh Nibe, Chairman & Managing Director of NIBE Limited. “With Thales Alenia Space’s vast global expertise and experience, we look forward to taking India’s space capabilities to newer heights.”
About NIBE Limited:
Established in 2021 under the leadership of Mr. Ganesh Ramesh Nibe, the company and its subsidiaries specialise in manufacturing a wide spectrum of Critical Components catering to the Defence industry such as fabrication of structures and sub-assemblies for programmes such as Modular Bridge, Rudder blade assembly, Pinaka launcher and MRSAM launcher for tri-services of Indian defence, to components of Electronic systems, Small arms (such as assault rifles and LMGs), and Space projects for domestic as well as international applications.
NIBE Limited along with its subsidiaries is committed towards continuously refining and adapting its approach, positioning itself as a leader in the defence industry. Moreover, in alignment with the vision of Atmanirbhar Bharat, NIBE Limited extends its commitment to fostering self-reliance in the defence sector.
About THALES ALENIA SPACE
Drawing on over 40 years of experience and a unique combination of skills, expertise and cultures, Thales Alenia Space delivers cost-effective solutions for telecommunications, navigation, Earth observation, environmental management, exploration, science and orbital infrastructures. Governments and private industry alike count on Thales Alenia Space to design satellite-based systems that provide anytime, anywhere connections and positioning, monitor our planet, enhance management of its resources, and explore our Solar System and beyond. Thales Alenia Space sees space as a new horizon, helping to build a better, more sustainable life on Earth. A joint venture between Thales (67%) and Leonardo (33%), Thales Alenia Space also teams up with Telespazio to form the parent companies’ Space Alliance, which offers a complete range of services. Thales Alenia Space posted consolidated revenues of approximately €2.2 billion in 2023 and has around 8,600 employees in 8 countries, with 16 sites in Europe.
Source: Samsung
Samsung and GRUBBRR®, the leader in self-ordering technologies, are enhancing the guest experience at the Big Game this Sunday. Fans attending are encouraged to visit Section 115 to utilize the Samsung All-In-One Kiosk powered by GRUBBRR’s self-ordering technology.
“Samsung has a long history of delivering winning technology to the biggest stages in sports, including the Big Game,” said David Phelps, Head of Display Division, Samsung Electronics America. “With Samsung Kiosks and GRUBBRR self-service software, fans can order their food with ease and speed. No matter who they are rooting for on Sunday, they can enjoy less time in concession lines and more time watching the starting lineup.”
Samsung Kiosks powered by GRUBBRR redefine stadium dining by allowing fans to browse food and beverage options at their own pace, customize their orders and complete their purchase all on one screen. GRUBBRR’s partnership with Samsung equips venues with cutting-edge technology designed to enhance customer satisfaction and streamline operations.
Benefits include:
Reduced wait times: Fans can avoid long lines and spend more time enjoying the game.
Efficiency and accuracy: Self-checkout kiosks minimize labor costs and human error, ensuring accurate orders every time.
Health and safety: By reducing direct contact, these kiosks provide a safer option for food transactions during large events.
Smart upselling: GRUBBRR’s technology boosts average ticket size by 40-50%, optimizing revenue for vendors.
“Samsung and GRUBBRR are changing the game in self-service ordering,” said Sara Grofcsik, Head of Sales, Display Division, Samsung Electronics America. “Today’s consumers expect convenient, intuitive and customizable ordering–and we’re delivering on all fronts on the biggest night in football. Our technology will enhance the stadium experience, making it all the more seamless and enjoyable.”
“We are honored to be part of the game-day experience and ensure that fans spend less time in line away from the game, and more time enjoying at their seats,” said Sam Zietz, Chief Executive Officer for GRUBBRR. “The positive feedback from fans has been remarkable as we have been lauded for speed, efficiency and a user-friendly interface.”
In addition to stadiums, Samsung and GRUBBRR provide technology to support restaurants, movie theaters, retailers and other businesses. To learn more about GRUBBRR, please visit GRUBBRR.com. Discover how Samsung Kiosks set new standards for customer service by visiting www.samsung.com/us/business/displays/interactive/kiosk/.
Source: Microsoft
Headline: Candy Crush Solitaire combines two beloved games on iOS and Android devices
Unlike the suit-matching solitaire you might be familiar with – known as Klondike – a key change here is that Candy Crush Solitaire bases itself on another variant, known as TriPeaks.
“TriPeaks Solitaire differs from Klondike in that it focuses more on clearing a board by playing cards in ascending or descending order, rather than building suits,” explains Cortinas. “This means players can focus on making strategic decisions without being restricted by suit or color. It was the right choice for Candy Crush Solitaire because it allows for a faster-paced, more intuitive gameplay experience that aligns with the rewarding, pick-up-and-play nature of the Candy Crush franchise.
“Its mechanics provide a great blend of strategy and progression, similar to how players advance in Candy Crush levels. From there, we layered in the signature Candy Crush Saga elements, colorful boosters, engaging progression, and collectible rewards, ensuring that players would recognize the familiar sense of accomplishment and fun from our franchise.”
For Candy Crush players, those elements will be immediately familiar. The Color Bomb and Lollipop Hammer boosters from Saga make appearances here to help you along, obstacles in your game will (of course) be candy-themed, and Candy Crush characters will make appearances along the way, taking you on an adventure outside of the Candy Kingdom for the first time.
Which brings us to another big change to Solitaire – progression. The original card game tends to be built for standalone rounds but, in classic Candy Crush style, each round of Candy Crush Solitaire is now part of a series of escalating levels.
“Progression in Candy Crush Solitaire is designed to feel just as rewarding as in other Candy Crush games,” says Cortinas. “Players advance by completing levels and unlocking postcards from various locations around the world, adding a collectible element to the game. Additionally, we’ve introduced the ‘Hold Slot’ mechanic, which allows players to strategically set aside a card for later use, adding another layer of progression and planning. We have the same plan for Candy Crush Solitaire – as with our other live games – of adding new levels each week to help our players keep progressing through the game and always refining and tweaking those levels, to ensure we are hitting expectations when it comes to delivering the best quality content for our players.”
The team at King is committed not only to adding new levels, but tweaking the game based on player feedback, introducing new gameplay mechanics, and keeping things moving with seasonal events, challenges, and rewards. Solitaire might be a static game, but Candy Crush Solitaire certainly won’t be.
As the first new Candy Crush game since 2018, it’s clearly something King is very proud of, and excited to release. I ask why this game was chosen to continue the franchise’s lineage:
“We only launch a new game when we believe we have something truly special to offer,” enthuses Cortinas. “Our business is built on testing and learning, to ensure the experience we’re giving our players is the best we can deliver. The Solitaire genre has been growing, and our research showed strong interest from both Candy Crush players and Solitaire fans in a game that merges the best of both worlds. After extensive testing and refinement, we saw that Candy Crush Solitaire had the potential to be a meaningful and engaging addition to the franchise.”
It’s all the more special that King is now a part of Microsoft, home of the version of Solitaire many played for the very first time. In some ways, this game is the continuation of two gaming lineages.
Candy Crush Solitaire is available today for iOS and Android devices.
Source: Asia Development Bank
This participative research was initiated under the Safety for Children and their Rights OnLine (SCROL) project in Nepal led by Terre des Hommes Netherlands in partnership with the Center for Legal Research and Resource Development (CeLRRD), Child Workers in Nepal (CWIN), and Women Youth in Social Service Human Rights (WYESHR).
The research was conducted in the Gandaki and Bagmati provinces in 2024 by 162 children through voluntary participation and a simple random sampling method. A total of 443 children and 213 parents responded to a questionnaire designed by children.
The following findings, based on children’s insights, highlight critical trends in online experiences that have the potential to shape effective solutions.
Social media usage patterns: According to the survey results, Facebook emerged as the dominant social media platform, with 42% of respondents indicating it as their primary choice for online engagement. YouTube is the second most popular platform, capturing 26% of user preferences, while Instagram maintains a significant presence, with 14% of users favoring it as their main social platform.
Response to online negativity: The data reveals essential insights into youth coping mechanisms when encountering harmful online content. A plurality of young users (31.6%) prioritize peer support by confiding in friends, while a slightly smaller proportion (27.5%) choose to discuss these issues with their parents. Notably, a concerning 20% of respondents internalize these experiences by keeping them private. This isolation can increase the risk of revictimization and lead to mental health issues among children, highlighting potential areas for intervention.
Digital safety practices: Most users (78.6%) demonstrate awareness of basic online safety measures by consistently declining friendship requests from unknown individuals on Facebook, indicating a strong foundation of protective behaviors.
Social media perception: The survey reveals a notable division in attitudes toward social media engagement. Nearly half (49.2%) of respondents express caution by discouraging peers from joining social platforms, while 40.2% maintain a positive outlook and actively encourage participation.
Mental health impact: The research identifies that approximately one in six respondents (17%) acknowledge experiencing psychological distress related to their online activities, highlighting the importance of mental health support in digital spaces.
Digital account security: Most users (90.7%) demonstrate strong ethical digital practices by maintaining strict account security, specifically avoiding trading or sharing their online and gaming accounts.
Parental oversight acceptance: The data shows that slightly more than half of young users (53%) have a positive attitude toward parental monitoring and established online boundaries, suggesting a balanced approach to digital supervision.
“Monitoring and setting boundaries are good—they protect us from OCSE. However, they [parents] shouldn’t interfere with our studies, privacy, or personal life.” – Rima (name changed)
Parental control approaches: Regarding social media access, most parents (61%) opt for an open approach with unrestricted usage, while approximately one-quarter (26.5%) implement complete restrictions, revealing diverse parenting strategies in digital supervision.
Parent-child digital dynamics: The survey indicates that approximately half of the children (50.7%) feel comfortable using their devices in their parents’ presence, suggesting a relatively balanced level of trust and openness in digital behavior.
Child protection awareness: A significant finding reveals that more than half of parents (55%) lack knowledge about available reporting mechanisms for Online Child Sexual Exploitation (OCSE), indicating a crucial gap in child safety awareness.
Parental acceptance of children’s display of alternative gender and sexual identity online: Parental acceptance of their children’s alternative gender and sexual identity, such as LGBTQ+, discovered through social media use varies across Nepal’s regions. The Bagmati region shows higher acceptance (53.91%) than Gandaki (24.10%), with combined acceptance at 42.18%. Resistance is higher in Gandaki (45.78%) than in Bagmati (29.69%), showing more progressive thinking in Bagmati. The remaining parents are uncertain (21.33%) or would seek specialist help (0.47%).
Source: International Chamber of Commerce
Headline: ICC urges negotiation over retaliation on trade tariffs
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Source: Samsung
Samsung Electronics America today announced a $1 million commitment in product donations to support relief and recovery efforts for communities impacted by the devastating wildfires in Los Angeles.
Through strategic partnerships with Habitat for Humanity of Greater Los Angeles, Team Rubicon and the Los Angeles Unified School District Education Foundation, Samsung aims to deliver both immediate relief and long-term rebuilding support to affected families and communities. Recognizing that recovery will be a long and challenging process, Samsung is committed to being there today and throughout the journey ahead, providing sustained support to ensure these communities have the resources they need to rebuild and thrive in the years to come.
Immediate and Long-Term Support Initiatives
Samsung’s commitment will focus on three key areas of impact to support wildfire recovery:
Home Appliances to Rebuild and Restore – Samsung will donate essential home appliances through Habitat for Humanity of Greater LA to support families as they move back into their homes and others as they rebuild. This short and long-term emergency response initiative is dedicated to aiding wildfire survivors, with a focus on those who are uninsured, underinsured or have limited incomes. These appliances will be critical in helping households restore their homes and begin their recovery, providing immediate relief and long-term stability in the wake of disaster.
Empowering Education & Digital Access – In partnership with the Los Angeles Unified School District (LAUSD) Education Foundation, Samsung will provide PCs, tablets and other tools to students and teachers, ensuring education continues without interruption despite the crisis. The Foundation collaborates with LAUSD to serve over 500,000 students, many of whom are in communities most impacted by these disasters. By supplying these devices, we are not only minimizing disruptions but also reinforcing the district’s ability to maintain continuity in learning, offering students the resources they need to stay engaged and succeed. This initiative is a crucial step in building long-term educational resilience for these students, supporting both their immediate needs and their future potential.
Supporting Volunteers in the Field – Samsung will equip Team Rubicon, a veteran-led organization that serves before, during and after disasters, with advanced communication devices to ensure seamless coordination in the field. These tools will amplify the effectiveness of Team Rubicon’s efforts, enabling close collaboration with government agencies, LA fire, local emergency managers and more than 200,000 local volunteers across California. By empowering their response teams, Samsung is helping drive more efficient, hands-on recovery in the communities that need it most.
“At Habitat for Humanity of Greater Los Angeles, we believe that a home is the foundation for a better future,” said Erin Rank, President and CEO, Habitat for Humanity of Greater Los Angeles. “Recovering from a disaster of this scale is a long road, and we are grateful for Samsung’s support in providing families with essential resources so they can rebuild with strength, stability and hope for the future.”
This initiative underscores Samsung’s longstanding commitment to supporting communities during times of crisis, including our own employees who have been impacted in the area. The company continues to ensure that residents, first responders and non-profit organizations have the technology and resources needed for recovery. Samsung is proud to stand alongside its charitable partners and volunteers as they assist those impacted by natural disasters.
Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English
The financial supervisory authority BaFin warns against offers on the website twaao.com. According to information available to BaFin, TWAAO allegedly based in Frankfurt is offering financial and investment services and crypto-asset services without the required authorisation.
Anyone offering financial or investment services or crypto-asset services in Germany requires a license from BaFin. However, some companies offer such services without the required license. Information on whether a particular company is authorized by BaFin can be found in the company database.
The information provided by BaFin is based on Section 37 (4) of the German Banking Act (KWG) and Section 10 (7) of the German Crypto Markets Supervision Act (KMAG).
BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.
Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English
The Federal Financial Supervisory Authority BaFin warns consumers against offers from the company ReFi Solutions or Remote Finance Solutions on website refi-solutions.com. According to information available to BaFin, banking transactions and financial services are being provided on this website without the required authorisation.
Anyone conducting banking business or providing financial or investment services in Germany may do so only with authorisation from BaFin. However, some companies offer these services without the required authorisation. Information on whether companies have been authorised by BaFin can be found in BaFin’s database of companies.
The information provided by BaFin is based on section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG).
BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.
Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English
The financial supervisory authority BaFin warns against trading platform Grow State Markets. According to its findings, financial, investment and crypto asset services are provided by Grow State Markets (which in the past operated the website growstatemarkets.com) without the required authorisation. The company is not supervised by the alleged FINAEU (European Financial Authority). There is no FINAEU supervisory authority and it does not supervise companies that operate in the financial sector.
FINAEU was already a subject of a warning issued by BaFin on 29 August 2024.
Anyone conducting banking business or providing financial or investment services in Germany may do so only with authorisation from BaFin. However, some companies offer these services without the required authorisation. Information on whether companies have been authorised by BaFin can be found in BaFin’s database of companies.
The information provided by BaFin is based on Section 37 (4) of the German Banking Act (KWG) and Section 10 (7) of the German Crypto Markets Supervision Act (KMAG).
BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.
Source: Microsoft
Headline: Consider it done: How TAMM is transforming government services in Abu Dhabi with AI
ABU DHABI, U.A.E. – Hammad Hanif Pasha, an IT consultant who has lived in Abu Dhabi since 2010, feels like the Emirate’s government services are always within reach, thanks to TAMM.
The AI-powered TAMM app puts about 950 Abu Dhabi government services at his fingertips. He says it has improved his quality of life by making it so much easier – no more fighting traffic to get to an appointment, no more waiting in lines.
“I haven’t been in a government building in four or five years,” he said. “I just don’t need to go anymore.”
The app, now in a 3.0 version, caters to 2.5 million Abu Dhabi citizens, residents and businesses, who made more than 10 million transactions in the past year, ranging from paying traffic fines to getting a marriage license. With TAMM’s AI assistant, finding answers to even the most complex government processes has become effortless – as simple as sending a text message.
Pasha cited car registration as one of the most convenient features. “It used to take three or four days before – you had to go for the inspection of the car, then find the right insurance, and after that part was done, you had to make sure that the actual registration happened on the same day that the insurance started.”
“If for any reason you failed, you had to get another one-day insurance policy to make it match.”
Now it’s easy, he says. It can all be done in the app, and there’s no waiting in lines, other than for the actual inspection of the car. The AI chatbot recommended the right type of insurance policy and synchronized it with registration.
Source: Isle of Man
Notice is hereby given that Browne Craine & Co Limited, which was registered under the Designated Businesses (Registration & Oversight) Act 2015, has been de-registered in accordance with 12(1)(a) of this Act with effect from 06/02/2025.
Source: European Central Bank
6 February 2025
The ECB has said that the direction of travel for monetary policy is clear, but the timing and extent of moves is not. What does this guidance mean to you?
We are moving towards the target. The direction of inflation is clear, despite some small bumps. All incoming information points to a convergence with the target in 2025 and this is what our models are also telling us.
Our models include market expectations for the interest rate path, so this convergence with the inflation target is coherent with a declining interest rate path.
Everything is of course contingent on the information at the time of the forecasts, and we will have a new forecast round in March. Before then, we’ll get another inflation print, we’ll have more details on the composition of inflation, and all these feed into the model, as do market expectations for interest rates.
Does that mean implicitly that you are comfortable with market expectations for further rate cuts as they are embedded in the projections?
That was conditional on the information we had in December. I am comfortable as long as that path takes us to the target in the medium term in a sustainable way.
What does the data since that December meeting tell you?
Overall, I think the direction is the same. I don’t see huge changes in our view, except trade tensions. The overall understanding of where we are going is there, the fundamentals haven’t changed, so I do not expect a big change in direction.
One thing that might happen is a trade war with the United States. How would that affect your thinking?
It depends on details such as whether we retaliate, precisely what these tariffs are going to be levied on, and how China is affected.
If tariffs are imposed on us, the most immediate impact will be on growth.
The price of goods will be higher in the United States. Who is going to absorb the cost? It could be that European companies, in order to defend their market share, might be willing to sacrifice a bit of their margin in order to stay in the market. We have seen this many times and European firms have a great ability to adjust. Part of this sacrifice might be recovered through the exchange rate. So, in the end, the overall impact may not be that big.
What concerns me more is if President Trump engages in a full trade war with China. This is a more serious threat because China has 35% of the world’s manufacturing capacity. Trade barriers will force China to sell its goods elsewhere and the competition from China could be a serious threat to us. These goods showing up in Europe could have both a deflationary and a contractionary impact because they would crowd out local products.
The uncertainty is exceptionally high, everything is in motion. And we can’t assess where it’s all going until things fall in place.
It’s true we have a goods surplus with the United States. But if you add in services and look at the overall current account, then the balance is close to zero.
Looking at the very short term, can you support a rate cut in March, as some of your colleagues are already saying?
I don’t want to seem elusive, but the uncertainty is so high that anything can happen. We all agree there is still room for adjusting rates downwards. But we need to be extremely careful. It’s important to stress this idea of a meeting-by-meeting, data-dependent approach. I want to enter the meeting with an open mind, see the staff assessment and process incoming data.
But we also all agree that we are still in a restrictive territory.
Suppose tariffs on China stay, that’s a huge demand shock. On the other hand, we have energy prices moving upwards. It could be a transitory phenomenon, but what if this is more entrenched?
How far are we from the neutral rate and why has the neutral gone up?
When you have an estimate range that is 50 or 75 basis points, then it’s a conceptual tool and doesn’t have much bearing on policy, given the high uncertainty. Take estimates that it is between 1.75% and 2.25%. Those are two completely different monetary policies, if you are close to target. It’s such a wide range that one number could imply that you are undershooting and another that you are overshooting. So “neutral” is a very powerful analytical concept but not terribly useful for setting monetary policy, given this embedded uncertainty.
It’s possible this rate went up but it’s also possible it stayed unchanged given how wide the band is.
You say you are clearly restrictive now. Would that still apply after the next cut? When does the debate start on when restrictive ends?
We are almost on target. The closer you get to target, the less you’ll need to stay restrictive.
It’s also true we have been overly optimistic on growth and had to cut our growth forecasts three times since June. So, it is possible that the recovery is not as strong as expected and thus the inflationary pressure coming from demand is weaker. This could prompt us to reassess our concept of restrictiveness.
Could this mean that you need to become accommodative to avoid an undershoot?
I assess the risk around inflation to be balanced and I don’t have evidence of a possible undershoot. Long-term inflation expectations are also very well anchored.
The latest information, especially the rise in the cost of energy, makes me think that we should be prudent. It might be a transitory phenomenon, but prices have risen substantially. Consumer expectations have also gone up a little as they are very reactive to short-term developments.
I’m not saying that risks are moving towards being on the upside, but we have no evidence of undershooting either.
Do the growth revisions suggest fundamental changes in how the economy functions?
Growth has been disappointing, especially because of investments. Consumption may have been less buoyant than we thought, but it remains broadly on the path that we are expecting. The fundamentals for rising consumption are there. Real incomes are increasing, employment is high, inflation is declining and consumer confidence is holding steady.
The real problem is investments, and that is only partially linked to monetary policy. The culprit is uncertainty. Investments have been weak since the summer given the overall uncertainty and the direction of trade policy after the US election.
My sense is that people are holding out before making important investment decisions. There is of course a cost component related to interest rates. But you see that people are investing just to replace old capital stock.
What can the ECB do about it?
We have to take care of the cost component and avoid being unduly restrictive. Our goal should be to have the economy growing close to potential and to contribute to reducing uncertainty as much as possible.
Could another targeted longer-term refinancing operation help investments?
It doesn’t seem to me that the lack of available funding is the issue. We have seen some tightening of credit conditions but that’s not the key factor here.
Last week we were talking about a 25% tariff, today not anymore, and tomorrow we don’t know. All companies are trying to understand where it’s all going so that they can make investment decisions.
How does this uncertainty affect the labour market?
There could be some softening of the labour market but overall we have been positively surprised. We went through a huge disinflation process with a very strong labour market.
Labour hoarding has two dimensions. One is the cost. Overall, the cost is still relatively low because, by some measures, real wages are still below the pre-pandemic level. The second reason is that firms are afraid of losing skilled labour and this is still the case.
The labour market is softening, however. The problem is manufacturing essentially. But even there we see some light at the end of the tunnel. There seem to be some initial signs of recovery in the Purchasing Managers’ Index and the Economic Sentiment Indicator. I was surprised to see that confidence in the construction sector and manufacturing activity have bottomed out, and we see some possible signs of recovery. Services are holding up overall. If there is some softening in terms of demand for labour, possibly there will be a pick-up in productivity which will reduce the unit labour cost overall. We obviously need to monitor it because, with all this uncertainty, we could see a deterioration. But I am not overly concerned about the labour market.
Adding up what you said about these modest signs of recovery in manufacturing, does that mean you still believe in the soft-landing narrative and you don’t see a recession?
We might not be booming but I am not expecting a recession at all. I think consumption will slowly go up because the fundamentals are there, labour income is growing, the cost of borrowing is declining, inflation is declining, and consumer confidence is basically holding up, so it’s possible that the savings rate will decline from a historic high. So, overall, I think consumption will keep going – and that is a big chunk of the economy. Investment should recover too, as soon as all this uncertainty dissipates. First, one cannot hold back forever: imagine you have a bunch of cumulated investment decisions to make. Even if a small percentage of them go through, it will be a positive and you will see that in investment. Second, less restrictive financial conditions are slowly being transmitted to the cost of financing. And third, in 2025-26 we should see an acceleration in the spending of Next Generation EU funds in Europe.
Moving to the digital euro. Could you give us an update?
We have started the procurement process and we will be selecting suppliers in June, but the contracts are such that they will only be triggered if the Governing Council decides to issue the digital euro. We have been working on the rulebook and we will be able to finalise it shortly after we have firm EU legislation in place. For example, whether people can have access to one or more wallets will have an influence on the rulebook, so if we don’t have a final legislation, we cannot finalise the rulebook. But it will not take long once the legislation is approved because we have done as much work as possible in the absence of a firm legislation. So the procurement is done and the rulebook is almost done. We are also working with the market to leverage the innovation potential of the digital euro. We think there is huge potential in conditional payments to increase the quality and the menu of the offering on payments.
So that is a payment that only happens if a certain condition is fulfilled, right?
Today there is only one type of conditional payment and it is based on time: pay this amount to this person on this date. We think we can do better than that. To make sure that this intuition is right, at the end of October, we issued a call for innovation partnerships. We were surprised to receive 100 offers. People want to experiment with new ideas. We will be doing that for the next six months and we will then prepare a report.
Would conditional payments require a blockchain? How else would the condition be verified?
No, it’s not a matter of blockchain. If you have a way to register the transaction on the ledger through a sort of token, that is a possibility. But technicians tell me you can make a transaction conditional even on a traditional ledger. We are working on that, but the information that I can give you is that we can do better than what we are doing today on conditional payment, regardless of the underlying technology. The technology has a bearing on many dimensions, for example latency and privacy.
Could you give me an example of a conditional payment that could be settled in digital euro?
For example, if the train is late, today you have to ask to be reimbursed. You could have a solution in which you only pay if the condition is automatically verified.
To conclude with where we are in the preparation phase, let me add that since the digital euro is a product, we have to market it. So, we are engaging with focus groups and using surveys to understand how to best finalise the product in order to meet people’s expectations. We are on schedule, so we should be ready to take a decision on moving to the next project phase by November 2025. I don’t know whether at that time the Governing Council will already be able to take a decision to eventually issue a digital euro because that depends on whether we have a legislation at that point. We have been clear that we would not take any decision about the issuance of a digital euro before the legislative act has been adopted.
We had expected legislation on the digital euro some time ago. What’s holding up the process? Are you sensing a lack of political will?
I wouldn’t say there’s a lack of political will. I think people want to understand the whole process. The European Commission issued legislation in June 2023, then the European Parliament started to work on that, but mentally they were not there because there was an EU election coming up. Everything stopped. They are starting to work on this now so, to be fair to them, they didn’t have much time. By contrast, in the Council of the European Union’s working party, work is progressing. As far as I know, they have gone through all of the legislative proposal and they are now focusing on the issues that still need to be worked out. When both the Council and the Parliament have agreed internally, they will sit down with the Commission and try to finalise the legislation. So, we hope they will be able to reach an agreement internally before the summer. But again, political processes are complex and there are many things on the table. Obviously the sooner the better, but we fully understand their needs. My sense is that there is an increased sense of urgency because of the position that has been taken by the new US Administration. The fact that the US President went in so strong on this idea of promoting worldwide US dollar-denominated stablecoins obviously is a signal. The political world is becoming more alert to this. And it’s possible that we will see an acceleration in the process.
Stablecoins are similar to money market funds that people use if they don’t want to go via the banking system, whereas the digital euro, with its holding limit, will purely be a means of payment. Why do you think a digital euro would be a good response to stablecoins?
You’re right, for as long as stablecoins are not used as a means of payment. My sense is that they will be. This is worrisome because if people in Europe start to use stablecoins to pay, given that most of them are American and dollar-based, they will be transferring their deposits from Europe to the United States. It may start with peer-to-peer, cross-border transactions. Then an American tourist may be able to use stablecoins instead of using a credit card, for example. So stablecoins can enter the payment space, for example, if they can compete with card schemes by reducing the price for the merchant. We have seen that important payment providers have already issued stablecoins, like PayPal, for example.
Turning now to bitcoin, we know that the ECB has got repo lines and swap lines with other central banks. Would the ECB maintain those with a central bank that has bitcoins among its reserves?
It’s an interesting question. Fortunately we don’t have to think about that right now because no major central bank is thinking about that.
One is hypothesising.
We would need to do a risk management assessment of that. Let’s see if any central bank enters this space because I don’t fully see the rationale for it. We will assess it at that point in time, if it happens. I am trying to be rational and think about why I should invest in bitcoin or another crypto-asset. The only rationale is if one thinks that the price will always go up. It doesn’t have any underlying value, there is no asset backing it, there is no earning model.
On that, it’s a bit like gold.
The structures of the two markets are completely different: the transparency of the market, the concentration. So, I would be careful about making the analogy. I don’t know how deep the market for gold is, but there are central banks in that market, and not just because of a legacy system. We should not stop at a superficial analogy between gold and bitcoin.
Why do central banks invest in gold, other than legacy?
It’s in part due to legacy, but gold has intrinsic, commercial and industrial value. Bitcoin does not have any of that.
We’ve seen gold and bitcoin make all-time highs at the same time. Or should we say that fiat currencies are making all-time lows?
Fiat currencies allow you, among other things, to pay. Good luck trying to pay in bitcoin or gold. Central bank money is the safest asset you can imagine and it’s relatively stable in terms of what you can buy with it.
Source: Bank for International Settlements
On December 12th 2023, Kyivstar, Ukraine’s largest telecom provider, suffered a cyberattack that disrupted services for millions of users. The attack, attributed to the Russian state-sponsored group Sandworm, was one of the biggest cyber incidents in Ukraine since the onset of the Russian invasion. The hackers had infiltrated Kyivstar’s infrastructure months earlier. They deployed malware that erased thousands of virtual servers and personal computers, crippling the company’s network for managing communication services.
The attack had several immediate effects. First of all, approximately half of Kyivstar’s network was disabled, leaving millions without mobile and internet connection. But the damage wasn’t limited to the telecom sector. The attack also disrupted banking operations, payment processing, and online banking services. Some ATMs and point-of-sale terminals didn’t work. Financial transactions were in disarray across the country.
Amazingly, the Ukrainians were quickly able to restore services. Over the past three years they have become quite proficient in dealing with large-scale disruption. Many critical processes in Ukraine are equipped with redundancy measures. Many people even have two sim cards in their phones. That enabled the other Ukrainian telecom providers to circumvent the outage. Services at Kyivstar were gradually reinstated, with almost full restoration achieved eight days after the attack.
This episode raises some inconvenient questions. What if this would happen to us? What if a large scale Russian or Chinese cyberattack is launched on the telecoms sector of an EU member state? Would it be possible? How much damage could such an attack cause? Would it affect financial services? And would we be able to recover as quickly as the Ukrainians did?
A few years ago, most people would have found these questions to be rather hypothetical, but today, unfortunately, they have become quite urgent. Geopolitical tensions have been rising for more than a decade, but over the past few years they have accelerated. Countries are re-arming, they are protecting their strategic economic infrastructures, they are imposing trade restrictions and sanctions on each other, and they are weaponising access to international financial infrastructures and services. Needless to say this is bad news for the world economy and the financial sector. But perhaps in no area is the geopolitical threat so real and acute as in the digital domain.
Apart from the Kyivstar case, there are many other examples to back this up. In late 2023, a Russian hacker breached Microsoft’s corporate network by exploiting a legacy account. As a result, the security and confidentiality of the email accounts of many organisations around the world were potentially compromised. Last year, the FBI discovered a dormant network of Chinese hackers in the United States that had compromised hundreds of routers and that was on standby to launch an attack if called on. And recently, Russian and Chinese vessels were suspected of damaging subsea data cables. Since state-sponsored cyberattacks are often very well concealed, we do not have reliable numbers on how often they occur. But anecdotal information from intelligence agencies, like the Dutch General Intelligence and Security Service, suggest their number is increasing.
Traditionally, the financial sector has been an attractive target for cyber criminals with financial motives. But with the changing geopolitical climate, nation-state cyberattacks have become a very real possibility. Their main aim is to cause disruption and to steal sensitive information. Nation-state actors possess more resources, sophistication, and endurance than other hackers. And many sectors of the economy have become more vulnerable to large-scale disruption due to increased complexity and digitalisation. This is certainly true of financial services, with their long outsourcing chains and interconnectedness. And many financial firms depend on the same third-party service providers, so if one of these suppliers is attacked, large chunks of the financial sector may experience the knock-on effects. As we showed in our latest Financial Stability overview, a quarter of all reported global cyberattacks can potentially affect the financial sector through a vital process run by a third party on which the financial system depends.
So, to answer the questions I posed at the start: yes, I think a major state-sponsored cyberattack on the financial sector or one of its supporting sectors could happen. And frankly, I hope we would be able to recover as quickly as the Ukrainians did.
That is not because financial institutions haven’t prepared. Many financial institutions have taken big steps in recent years to boost their cyber resilience. I think it is fair to say the financial industry is one of the better digitally defended sectors in the economy. As it should be. But given the size and urgency of the threat, we need to do even more to keep financial services safe. This is why cyber resilience will absolutely be a key focus area in our supervision of the financial industry in the coming years. This goes both for De Nederlandsche Bank, and for the European Central Bank.
Our aim is to make financial services safer against cyber threats. Not only by increasing the resilience of the financial sector itself, but also by stepping up the robustness of the entire chain of ICT service providers. DORA, the European Digital Operational Resilience Act, that came into effect at the beginning of this year, gives us additional tools to accomplish this aim.
To start with, under DORA, threat-led penetration tests are mandatory for the largest financial institutions in Europe. In the Netherlands we have been conducting these kinds of tests voluntarily for over eight years with good results, and we are very pleased that it is now becoming the norm at the European level.
But DORA also imposes stricter requirements for managing cyber risks in outsourcing chains. For example, financial firms face stricter rules for conducting due diligence on potential ICT providers. As a result, Fintechs may also experience more stringent due diligence from financial sector customers. And very importantly, under DORA, European supervisors can conduct inspections of critical third-party ICT service providers in tandem with national supervisory authorities. We expect bigtechs like Google and Microsoft to be placed under EU-wide supervision. And, just as with the banks, we are going to test their readiness to detect and withstand cyberattacks.
Despite all efforts, there is no such thing as perfect cyber security. It is therefore vital that financial institutions take measures to recover quickly after cyber incidents. This is crucial to ensure that services can continue and people don’t lose trust in financial firms or the financial sector as a whole.
The results of the ECB’s 2024 cyber stress test show that there is room for improvement on the recovery front. So it’s a very good thing that DORA also imposes new requirements on institutions’ continuity plans and backup policies. They need to develop a culture where cyber incidents are quickly detected and reported, they need to have their playbooks in place and they need to have clearly defined management roles and responsibilities. These are key ingredients for an effective response after a cyberattack.
An important principle of our supervision has always been that financial institutions are responsible for putting their own house in order. And that is also the case with cybersecurity. But if we only focus on individual institutions, we miss something. As I mentioned, on a digital level the financial sector is so interconnected, and connected to other vital sectors of the economy as well, that some degree of overall coordination and cooperation is necessary to arrive at an optimal level of resilience. Notably, recent assessments, derived from nationwide contingency exercises in the Netherlands, reveal various weaknesses. These weaknesses relate to the exchange of information between critical infrastructure providers, the distribution of roles and responsibilities, and the mobilisation of scarce cyber security knowledge and expertise in the event of major cyber incidents.
So the message here is: we need to work together. Governments should take the lead to improve cross-sectoral cooperation and coordination. They must continue to conduct large-scale cyber-drills and practice activating crisis plans. The insights gained should be used to enhance resilience.
But there is also a role for financial supervisors like DNB. Under the new legislation, we do not only need to check whether financial firms are compliant, but we also have an obligation ourselves to look over the fence and cooperate closely with other sectors. DNB is putting this into practice by working with vital sectors that are most critical to the financial sector, such as energy and telecommunications. Within our mandate, we support these sectors with information, cooperation and ethical hacking experience.
To sum up, the threat of major disruptions to our financial system from nation-state cyberattacks has become more urgent. Financial firms, and the entire outsourcing chain on which they depend, therefore need to do whatever they can to further boost their cyber resilience. Both in terms of detection and recovery. Cyber resilience is a top priority for European financial supervisors and there are new European laws in place. And we are going to use these laws to make sure that financial institutions under our supervision are as secure and well defended as possible. Enhancing resilience also means we need to work together. Governments, financial firms, supervisors, telecom, energy and other vital players in the outsourcing chain. Because in cyberspace, we are all linked together. And after all, a chain is only as strong as its weakest link.
Thank you.