Source: Switzerland – Department of Foreign Affairs in English
At its 29 January 2025 meeting, the Federal Council was informed about how the cuts to development cooperation decided on by Parliament will be implemented. In late December, Parliament made cuts of CHF 110 million to the 2025 budget and CHF 321 million to the 2026–28 financial plan for bilateral and multilateral development cooperation. The cuts do not affect humanitarian aid, peace promotion or support for Ukraine.
Source: Government of India
Scheme offers 60% guarantee coverage to Member Lending Institutions (MLIs*) for credit facility upto Rs.100 crore sanctioned to eligible MSMEs
Posted On: 29 JAN 2025 8:35PM by PIB Delhi
GoI has approved introduction of Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME) for providing 60% guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs*) for credit facility upto Rs.100 crore sanctioned to eligible MSMEs under MCGS-MSME for purchase of equipment / machinery.
Salient Features of The Scheme
The Scheme will be applicable to all loans sanctioned under MCGS-MSME during the period of 4 years from the date of issue of operational guidelines of the scheme or till cumulative guarantee of Rs. 7 lakh crore are issued, whichever is earlier.
Major Impact
Manufacturing sector currently comprises 17% of the nation’s GDP and over 27.3 million workers. Hon’ble Prime Minister’s has given a call for ‘Make in India, Make for the World’ and has signalled that India is ready and keen to increase the share of manufacturing to 25% of GDP. The Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is expected to facilitate the availability of credit for purchase of Plant and Machinery / Equipment by MSMEs and give a major boost to manufacturing and thereby to Make in India.
Background
Global supply chains are realigning. India is emerging as an alternative supply source given its raw materials, low labour costs, growing manufacturing knowhow, and entrepreneurial ability. One of the major costs involved in manufacturing is the fixed cost of Plant and Machinery (P&M)/ Equipment’s. With availability of credit to expand the installed capacity of manufacturing units, it can be expected that the manufacturing will grow at a faster pace. Also, the need for a credit guarantee scheme for the manufacturing units, particularly for the enterprises in the medium category has been raised by industry associations from time to time. So, to give a boost to manufacturing by facilitating the availability of credit for purchase of Plant and Machinery / Equipment, ‘Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is being introduced. The scheme will facilitate collateral free loans by banks and financial institutions to MSMEs who are in need of debt capital for their expansion and growth.
*MLIs – All Scheduled Commercial Banks (SCBs), Non-Banking Financial Companies (NBFCs) and All India Financial institutions (AIFIs), who register with NCGTC under the Scheme.
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NB/AD
(Release ID: 2097455) Visitor Counter : 101
Source: Government of India
HLC approves project for catalytic assistance to 12 most drought prone states at a total outlay of Rs. 2022.16 crore
Committee also approves the Mitigation Project on Lightning Safety in 10 states at a total cost of Rs. 186.78 crore
Union Home Minister also approves the Mitigation Scheme for Forest Fire Risk Management for implementation in 144 high-priority districts in 19 states at a total outlay of Rs. 818.92 crore
Modi government has taken a number of steps to prevent any extensive loss to life and property during disasters by strengthening disaster risk reduction system in India
More than Rs. 24,981 crore has already been released to the states during the current financial year
Posted On: 29 JAN 2025 8:21PM by PIB Delhi
A High-Level Committee (HLC), under the chairmanship of Union Home Minister and Minister of Cooperation, Shri Amit Shah has approved Rs. 3027.86 crore for disaster mitigation projects for various states. The committee, comprising of Finance Minister, Agriculture Minister and Vice Chairman NITI Aayog as members considered proposals of Mitigation Project on Lightning Safety to mitigate lightning Risk in 50 heavy lightning prone districts in 10 states and catalytic assistance to 49 districts of 12 most drought prone states for funding from National Disaster Mitigation Fund (NDMF).
The High-Level Committee has approved project for catalytic assistance to 12 most drought prone states at a total outlay of Rs. 2022.16 crore, out of which, Central share will be Rs. 1200 crore. These 12 states are Andhra Pradesh, Bihar, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana and Uttar Pradesh.
The Committee has also approved the Mitigation Project on Lightning Safety in 10 states at a total outlay of Rs. 186.78 crore for Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Uttar Pradesh and West Bengal.
Union Home Minister has also approved the Mitigation Scheme for Forest Fire Risk Management for implementation in 144 high-priority districts in 19 states at a total outlay of Rs. 818.92 crores, out of which central share from NDMF & NDRF will be Rs. 690.63 Crore. The primary objective of the scheme will be to implement a mitigation project for transforming the forest fire management approach in the country so as to strengthen and support vital forest fire prevention and mitigation activities . The states of Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Manipur, Maharashtra, Mizoram, Madhya Pradesh, Meghalaya, Nagaland, Odisha, Tamil Nadu, Telangana and Uttarakhand will submit their respective proposals undertaking necessary activities for mitigation of forest fires, preparedness for forest fire response as well as for post-fire assessment and recovery.
To fulfil Prime Minister Shri Narendra Modi’s vision of disaster resilient India, the Ministry of Home Affairs, under the guidance of Home Minister Shri Amit Shah, has taken several initiatives to ensure effective management of disasters in the country. The Government under the leadership of Prime Minister Modi has taken a number of steps to prevent any extensive loss of life and property during disasters by strengthening the disaster risk reduction system in India.
Prior to these proposals, the HLC had approved financial assistance from NDMF for other projects viz. Urban Flood Risk Mitigation Projects in seven major cities at a total outlay of Rs 3075.65 crore, GLOF Risk Management in 4 states at a total outlay of Rs. 150 crore and Landslide Risk Mitigation in 15 states at a total outlay of Rs. 1000 Crore.
Further, more than Rs. 24,981 crore has already been released to the states during the current financial year. This includes Rs.17479.60 crore from the State Disaster Response Fund (SDRF) to 27 states, Rs.4808.30 crore from the National Disaster Response Fund (NDRF) to 18 states, Rs.1973.55 crore from the State Disaster Mitigation Fund (SDMF) to 13 states and Rs. 719.72 crore from National Disaster Mitigation Fund (NDMF) to 08 states.
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Raj Kumar / Vivek / Ashutosh / Priyabhanshu / Pankaj
(Release ID: 2097448) Visitor Counter : 152
Source: US State of Connecticut
On the first day of each spring semester, sophomores like first-generation student Flormarie Lopez ’27 (NUR), are gifted a stethoscope before entering their junior year when clinical rotations begin.
NURS 3120 Health Assessment taught by Michele Cole, DNP, MSN, RN, CPN, and Yashika Sharma, Ph.D., RN, teaches students how to take and interpret vital signs, exercise sound clinical judgment, and how to approach patients – skills that they will use every day as a practicing nurse.
Through an endowed scholarship by UConn Nursing alum Margaret E. “Peggy” Sczesny ’69 (NUR), ’79 MS, these gifted stethoscopes are a fundamental tool that enhances confidence and symbolizes professionalism. It can help aid in diagnosis and assessment and serves as a constant companion.
I cherish this gift as a UConn student nurse – David Gorski ’26 (NUR)
“I cherish this gift as a UConn student nurse,” says David Gorski ’26 (NUR). “I use my stethoscope every day in clinical. It’s very important to me to know how to use it and what to look for as we transition from students to health care practitioners.”
In addition to providing stethoscopes for sophomores, the Traditions Fund (as part of this scholarship) also finances nursing pins for all undergraduate and accelerated Certificate of Entry into Nursing (CEIN/BS) students at graduation.
“The fact that donors provided this gift to nursing students is both touching and encouraging because getting a stethoscope is the first step towards feeling prepared for new endeavors in the clinical setting,” says associate clinical professor Marianne (Mimi) Snyder, Ph.D., MSN, RN.
Lopez says, “As a first-gen student, it’s so honoring to be able to show this to my mom and my family in Guatemala, being the first in my family to do something like this.”
Thanks to this generous gift, generations of UConn Nursing students will carry a reminder of their educational roots with them for years to come.
To contribute to the UConn School of Nursing please visit: https://nursing.uconn.edu/info-for/donors/
Source: European Parliament
Question for written answer E-000094/2025/rev.1
to the Commission
Rule 144
Piotr Müller (ECR)
Moldova’s recent accusations that Russia triggered the Transnistria crisis by manipulating gas supplies and supporting destabilisation activities underline the need for the EU to step up its efforts to promote stability and provide support in Eastern Europe.
Submitted: 13.1.2025
Source: European Investment Bank
The European Investment Bank (EIB) and Breakthrough Energy Catalyst are providing a €70 million funding package through the EU-Catalyst Partnership to INERATEC, a Germany based e-fuel company. The EIB is providing a €40 million venture-debt-loan, backed by the EU`s InvestEU-program, while Breakthrough Energy Catalyst is awarding a grant of €30 million. The package will support the financing of INERATEC’s carbon neutral e-fuel production plant in Frankfurt, as well as further research and development. The Frankfurt plant is set to be Europe`s largest when opening in 2025.
Long term market growth expected for e-SAF and e-Fuels
E-fuel production uses CO2 and hydrogen to produce synthetic fuels and chemicals that are carbon neutral or close to carbon neutral when used. They have significant potential in hard-to-decarbonize sectors such as aviation, where commercial demand is underpinned by clear regulation. Therefore, long-term market growth can be expected.
The EU’s ReFuelEU Aviation regulation requires that aviation fuel suppliers provide jet-fuel with 1.2 per cent minimum synthetic fuel content by 2030, rising to 35 per cent in 2050. Based in Karlsruhe, Germany, INERATEC is well placed for this growing market, offering an efficient, scalable modular design.
INERATEC’S Frankfurt plant will produce up to 2,500 tons of e-fuels and e-chemicals, including e-sustainable aviation fuel (e-SAF). The plant will also incorporate an upgrading facility, enabling the e-crude oil to be refined into certifiable, ready-to-use sustainable aviation fuel on site. The fuel will support compliance with the EU’s synthetic aviation fuel mandate.
INERATEC’s Frankfurt plant to show e-Fuel production is possible at scale
EIB-Vice-President Nicola Beer said: “E-fuels are a crucial part of achieving a competitive net-zero economy, particularly in the mobility and transport sector. Game-changing technologies like Ineratec’s play a vital role in this transition. Together with the European Commission and Breakthrough Energy, through the EIB’s venture debt product, we are supporting an innovative startup in scaling up production and advancing research to make e-fuels a viable, sustainable alternative to fossil fuels.”
INERATEC CEO Tim Boeltken said: “INERATEC’S Frankfurt production plant will show that e-fuel production is no longer a technological concept but a scalable reality. Reliable production of certifiable e-SAF is possible in the near-term – at commercial scale, that will be a breakthrough for sustainable aviation. This investment from EIB and Breakthrough Energy Catalyst is a sign of confidence in the INERATEC technology and approach.”
Mario Fernandez, Head of Breakthrough Energy Catalyst, adds: “We are delighted to be working with INERATEC. This ground-breaking project will bring us a decisive step closer to the decarbonisation of aviation.”
The financing reinforces EIB position as the ‘The Climate Bank’, a priority in the EIB Group’s 2024-2027 Strategic Roadmap, and supports the objectives of the European Commission’s RefuelEU aviation regulations.
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
EIB venture debt is a quasi-equity investment product suitable for early and growth stage ventures, combining a long-term loan with an instrument linking the return to the performance of the company. Since 2015, the EIB has invested €6 billion in Venture Debt, backing over 200 companies and realising over 50 exits. With the backing of InvestEU, the EIB aims to support European ventures and scale-ups in the cleantech, deep-tech and life sciences sectors.
INERATEC is committed to defossilizing and decarbonizing the world. The company produces e-Fuels and e-chemicals: carbon-neutral fossil fuel substitutes for use in the aviation, shipping and chemical industries. Its modular, scalable plants use renewable hydrogen and biogenic CO2 to produce synthetic kerosene, gasoline, diesel, waxes, methanol or natural gas. It is building what will be the world’s largest e-fuels plant to date, in Frankfurt, which will produce up to 2,500 tonnes of ultra-low-carbon aviation fuel per year. The company is based in Karlsruhe, Germany and backed by diverse international investors. www.ineratec.com
Breakthrough Energy is committed to accelerating the world’s journey to a clean energy future. The organization funds breakthrough technologies, advocates for climate-smart policies, and mobilizes partners around the world to take effective action, accelerating progress at every stage.
Breakthrough Energy Catalyst is a novel platform that funds and invests in first-of-a-kind commercial projects for emerging climate technologies. By investing in these opportunities, Catalyst seeks to accelerate the adoption of these technologies worldwide and reduce their costs.
Catalyst currently focuses on five technology areas: clean hydrogen, sustainable aviation fuel, direct air capture, long-duration energy storage, and manufacturing decarbonization. In addition to capital, Catalyst leverages the team’s energy-infrastructure-investing and project-development expertise to work with innovators on advancing their projects from the development stage to funding and ultimately, to construction. Learn more about Breakthrough Energy and Catalyst at breakthroughenergy.org.
Source: European Parliament
Question for written answer E-000245/2025
to the Commission
Rule 144
Nora Junco García (ECR), Diego Solier (ECR)
Morocco, a country with a limited gross domestic product per capita and an economy still dependent on traditional sectors, is experiencing significant economic growth thanks to long-term strategies. This development is having a direct impact on Spain, especially in strategic sectors such as industry and logistics. Massive foreign investment, extremely favourable fiscal conditions and projects such as the development of the port of Tanger Med, which already exceeds the port of Algeciras in terms of traffic, are evidence of a model that is keeping Spain’s competitiveness in check.
However, Spain is not only facing an external challenge. Misguided policy decisions have contributed to weakening essential infrastructures such as the rail corridor to Algeciras, hampering its competitiveness. Moreover, the Spanish Government has allowed a worrying dependence on Morocco in strategic areas such as the control of migratory flows and natural resources, compromising national sovereignty and economic stability.
All this proves that the economic balance within the European Union is at stake. In view of the above:
Submitted: 21.1.2025
Source: GlobeNewswire (MIL-OSI)
HOUSTON, Jan. 29, 2025 (GLOBE NEWSWIRE) — Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) (“Adams” or the “Company”) announced today that its stockholders have voted at a special meeting of the Company’s stockholders (the “Special Meeting”) to approve the pending acquisition of the Company by an affiliate of Tres Energy LLC. Under the terms of the merger agreement that was approved at the Special Meeting, Adams stockholders will receive $38.00 per share in cash for each share of Adams common stock they own immediately prior to the effective time of the merger.
Approximately 77% of the Company’s outstanding shares were voted at the Special Meeting, and the merger was approved by over 76% of the Company’s outstanding shares. The final voting results on the proposals voted on at the Special Meeting will be set forth in a Form 8-K that will be filed by the Company with the U.S. Securities and Exchange Commission (the “SEC”).
The merger is expected to close in early February 2025, subject to customary closing conditions.
Forward-Looking Statements and Information
This communication contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this communication that are not statements of historical fact, including statements about the timing of the proposed transaction, Adams’s ability to consummate the proposed transaction and the expected benefits of the proposed transaction, may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future of the Company based on current expectations and assumptions relating to the Company’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the risk that a condition of closing of the proposed transaction may not be satisfied or that the closing of the proposed transaction might otherwise not occur, (ii) risks related to disruption of management time from ongoing business operations due to the proposed transaction, (iii) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of Adams, (iv) the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Adams to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (v) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, including in circumstances requiring the Company to pay a termination fee, (vi) unexpected costs, charges or expenses resulting from the Merger, (vii) potential litigation relating to the Merger that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (viii) worldwide economic or political changes that affect the markets that the Company’s businesses serve which could have an effect on demand for the Company’s products and services and impact the Company’s profitability, and (ix) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, cyber-security vulnerabilities, crude oil pricing and supply issues, retention of key employees, increases in fuel prices, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in Adams’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of Adams’s Annual Report on Form 10-K for the year ended December 31, 2023 and in the Company’s other filings with the SEC.
These forward-looking statements speak only as of the date of this communication, and Adams does not assume any obligation to update or revise any forward-looking statement made in this communication or that may from time to time be made by or on behalf of the Company, whether in response to new information, future events, or otherwise, except as required by applicable law.
There can be no assurance that the proposed transaction will in fact be consummated. We caution investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this communication. The Company undertakes no obligation or duty to update or revise any of these forward-looking statements after the date of this communication, whether in response to new information, future events, or otherwise, except as required by applicable law.
About Adams Resources & Energy, Inc.
Adams Resources & Energy, Inc. is engaged in crude oil marketing, transportation, terminalling and storage, tank truck transportation of liquid chemicals and dry bulk and recycling and repurposing of off-spec fuels, lubricants, crude oil and other chemicals through its subsidiaries, GulfMark Energy, Inc., Service Transport Company, Victoria Express Pipeline, L.L.C., GulfMark Terminals, LLC, Phoenix Oil, Inc., and Firebird Bulk Carriers, Inc. For more information, visit www.adamsresources.com.
About Tres Energy LLC
Tres Energy LLC is a privately held limited liability company that invests in and operates strategic energy assets across the United States. For more information, visit www.tres-energy.com.
Company Contact
Tracy E. Ohmart
EVP, Chief Financial Officer
tohmart@adamsresources.com
(713) 881-3609
Source: European Parliament
Corrie Hermann. – Dear President of the European Parliament, dear Roberta Metsola, dear Presidents, dear Members, Commissioners, excellencies, distinguished guests, this story about one Holocaust victim is dedicated to every one of the 6 million victims whom we deplore today.
My father, Hermann Pál, was born on 27 March 1902 in Budapest, in a well-to-do family. At the time, Budapest was still the second capital of the Habsburg Empire – the era which Stefan Zweig depicts in Die Welt von Gestern. The Jewish citizenry had become gradually an integral part of the community, and joined intensively in the professional, cultural and financial life.
Hermann Pál was intelligent and musical, and was admitted, at the age of 15, as a cello student at the famous Franz Liszt Academy, established in 1875 – the cradle of many generations of top musicians from Hungary. His best friend became the violinist Székely Zoltán, who would become a worldwide-known soloist and the first violinist of the New Hungarian String Quartet. Pál developed not only as a cellist but also as a composer. His teachers were Kodály and Bartók.
Even before the formal completion of his training, he reaped his first success in a private concert at the house of Arnold Schönberg with the ‘Sonata for Cello Solo’, which Kodály had composed a few years earlier. A performance of this sonata at a concert in Switzerland, which was organised by the International Society of Contemporary Music, was the first step in his international career.
But in the meantime, the First World War had raged in Europe. The Habsburg Empire was no more. Hungary’s wings had been clipped by the Trianon Treaty, and the new leader, Admiral Horthy, was the first one to introduce antisemitic laws. The young cellist went to Berlin and changed his name from the Hungarian Hermann Pál to Paul Hermann.
In Berlin, musical life was blooming. Paul took lessons at the Staatliche Academische Hochschule für Musik. To earn a living, he became a teacher at the progressive Volksmusikschule Berlin-Neukölln and he played in all kinds of ensembles: Baroque music, the great classics – Haydn, Mozart, Beethoven – and contemporary compositions by Hindemith, Ernst Toch and, of course, Kodály and Bartók.
The tie with Zoltán Székely was to endure all his life. Zoltán had settled in the Netherlands. Together they gave concerts which were favourably reviewed in the Netherlands, Germany and England. In London they stayed often at the house of a Dutch couple, Jacob de Graaff and Louise Bachiene. De Graaff was a wealthy businessman. He and his wife were lovers of art and music, and liked to entertain young artists. They admired the two musicians so much that in 1927 they bought a Stradivarius violin for Zoltán and, in 1928, a Gagliano cello for Paul. That cello has a leading part in this story.
Louise de Graaff corresponded frequently with relations in the Netherlands, and when Paul Hermann was scheduled to play in Amsterdam, she urged her young niece, Ada Weevers, to go to the concert and meet the artist. This meeting was such a success that they became engaged and married in 1931. They settled in an apartment in a new Berlin quarter, Charlottenburg. I was born in 1932 and there are pictures of my father holding me on the balcony.
But in 1933 came bad luck. On 30 January, Hitler became Reichskanzler in Germany and a threatening atmosphere for Jewish people becomes immediately acute. Jews are fired from public functions. Paul Hermann loses his job. The little family seeks refuge with Ada’s parents in the Netherlands. In the summer holiday, they stay near the seaside and, when swimming, Ada gets caught in a vortex in the waves and nearly drowns. She inhales water, it leads to pneumonia and she dies a few months later.
Paul Hermann joins Hungarian colleagues in Brussels. Together they perform as the Gertler Quartet. They tour Belgium, France, Switzerland, Italy, Hungary. He has left me with my maternal grandparents; a younger sister of my mother takes loving care of me. Every time my father visits is delightful. The whole family adores him.
After a few years in Brussels, Paul Hermann moves to Paris and continues his international career. On 4 August 1939, I turned seven. I remember him coming, always with his cello. Only recently, I found a letter my father wrote to a friend telling me about all the difficulties he had to get permission from the French authorities to cross the border to Holland. Foreign Jews are already under suspicion.
But I only know it’s my birthday, a party. As a present, my father gives me the new French book, ‘Histoire de Babar, le petit éléphant‘, and he teaches me my first French words: ‘Babar entre dans l’ascenseur, il monte dix fois en haut et descend dix fois en bas mais le garçon lui dit “ce n’est pas un joujou, monsieur l’éléphant”‘.
But again, the atmosphere is threatening. War breaks out at the end of August. Borders are closing. All foreign visitors return hastily. That winter, Western Europe is mobilised, but the fighting is in the east. We can still correspond. But in the spring, Hitler looks toward France. The French army is preparing the defence. Paul Hermann joins a régiment de marche de volontaires étrangers to assist the French army. In June, the Germans are in Paris. Northern France, Belgium and the Netherlands are occupied and under German rule. As a schoolchild, I remember the little boards everywhere: ‘Verboden voor Joden‘.
In France, the southern region is at first not occupied. People feel relatively safe there. Hermann and his cello stay first with the de Graaff couple, who have moved from London to the region south of Bordeaux, but then he moves to a room in Toulouse. He has some pupils and can give a few recitals. Censorship makes corresponding very difficult. We get only very few letters.
Sometimes he can visit Ada’s brother, Jan Weevers, who has an agricultural business in a village about 150 km from Toulouse. This brother-in-law supports him as much as he can. But in 1942, all France is occupied. The terror of the Gestapo reigns also in Toulouse. In Budapest, Berlin, Paris, Paul Hermann has been able to flee from antisemitism. Now this is not possible anymore. He takes false papers, names himself de Cotigny and hopes for the best.
But on 21 April 1944, he is arrested in a street raid, taken to the Toulouse prison and transported to Drancy, the assembling camp near Paris, from where the transports for the concentration camps departed.
In May 1944, he is put in a wagon with 60 other men as a part of transport number 73 from Drancy. While the train is waiting at the station, he manages to write a note to his brother-in-law and throws it out of the train. A kind passenger, who probably realises this could be a last message, posts it. Miraculously, it reaches Jan Weevers. It reads:
«On nous a dit que nous allions travailler à l’Organisation Todt. Nous sommes pleins d’espoir malgré tout. Quant à mes instruments, je te prie de sauver ce que tu peux.»
There is hardly any transportation, but Jan Weevers manages to go to Toulouse, where Paul’s rooms have been sealed by the Gestapo. Spoils of war. He forces a window and exchanges the precious Gagliano cello for a cheap student’s instrument. He takes it home. Paul’s cello is saved.
Transport 73 is not put to work for the organisation Todt. It is sent all through Europe to Kaunas in Lithuania. We don’t know what happened, but only a handful of the 900 prisoners who arrived in Kaunas will return after the war.
In the Netherlands, 1944-1945 is the hardest year of the war. There is no food, no heating. The infrastructure is heavily destructed. In May 1945, the Canadians entered the city where we lived. The Nazi regime capitulates, and it is immense joy.
Only weeks later, we hear what has happened in France. Investigations by Jan Weevers have been in vain. Will Paul Hermann return? In Tony Judt’s standard book Postwar, we read about the chaos in Middle Europe: many millions of displaced persons roam in deplorable conditions through what is left of Germany. Some returned home after months or years. Many don’t. Gradually we realise Paul will never come back.
Surrounded by a beloved extended family, I grow up, go to the university to study medicine, marry, have a family. As a doctor, I work mainly in public health. And at the end of my career, I am elected in the Netherlands Parliament for the Green Party. After retirement, I am reminded of a pile of handwritten music scores which have been laying around for more than 60 years. They are old compositions of my father. He played music with his colleagues in all kinds of combinations.
The Dutch foundation Forbidden Music Regained, which focuses on the work of composers who were persecuted by the Nazis, is interested. They are greatly impressed by the quality of the music, and organise concerts and recordings. My son Paul, named after his grandfather, develops into the coordinator of this legacy and makes it accessible to musicians all over the world.
When he’s visiting cousins in Los Angeles, they introduce him to the Recovered Voices project of the Los Angeles Colburn School of Music, which is also aimed at persecuted composers. Top cellist Clive Greensmith is enthusiastic about Hermann’s music, especially about a draft for a piece for cello and orchestra. Paul has a friend, an Italian composer, Fabio Conti, who makes the draft into a complete piece for cello and orchestra using themes from other Hermann compositions. Greensmith plays the premiere in 2018, in Lviv, Ukraine.
But another staff member in Los Angeles, Carla Shapreau, says: ‘Yes, this is the music. But where is that Gagliano cello?’ In 1953, Jan Weevers took the cello to the Netherlands. It has been sold to finance my studies, but we don’t know who bought it.
Carla enlists the help of Oxford-based biography writer Kate Kennedy, who is working on a book about the duality of cellists and their cellos. Kate also gets under the spell of the Hermann story, and she looks for the cello literally all over the world – asking cellists, luthiers, instrument dealers, music schools, browsing through auction catalogues. Who knows the whereabouts of a Gagliano cello made in 1730 with the text ‘Ego sum anima musicae’ – I am the soul of music – on the side? But Kate does not find it. The publication date of her book nears; she feels defeated.
The book Cello is published. Cellists everywhere read it. And then Kate gets a mail from a Chinese cello professor, Jian Wang, acting as jury member for the Concours Reine Elisabeth here in Brussels in 2022. He has noticed a cello. It is in the possession of the Robert Schumann Musik Hochschule in Düsseldorf, and only their best students are permitted to play it. At a presentation of Kate’s book Cello in the Wigmore Hall in London, where my father performed 100 years ago, Australian Sam Lucas plays, on Paul Hermann’s cello, one of his compositions.
Between 1920 and 1940, Paul Hermann played the same cello in all Western and Central Europe. Searching for this icon of European culture has connected people from all over the world: from Europe to Los Angeles to China to Australia. And its amazing story has captured interest everywhere.
For me, this is a reunion in spirit with the father whom I have missed for 85 years.
Hitler has burned books, destroyed paintings and buildings, murdered millions of people. But music is invincible.
Ego sum anima musicae. Freude, schöner Götterfunken. Alle Menschen werden Brüder.
Source: GlobeNewswire (MIL-OSI)
WILLIAMSPORT, Pa., Jan. 29, 2025 (GLOBE NEWSWIRE) — Penns Woods Bancorp, Inc. (NASDAQ: PWOD)
Penns Woods Bancorp, Inc. achieved net income of $17.7 million for the twelve months ended December 31, 2024, resulting in basic and diluted earnings per share of $2.35.
Highlights
Net Income
Net income from core operations (“core earnings”), which is a non-GAAP measure of net income excluding net securities gains or losses, was $4.4 million and $18.4 million, respectively, for the three and twelve months ended December 31, 2024 compared to $5.6 million and $16.7 million for the same periods of 2023. Core earnings per share (non-GAAP) for the three months ended December 31, 2024 were basic $0.58 and diluted $0.57 while basic and diluted for the twelve months ended December 31, 2024 were $2.44. Basic and diluted core earnings per share for the three and twelve month periods of 2023 were $0.77 and $2.36, respectively. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.78% and 8.48%, respectively, for the three months ended December 31, 2024, compared to 1.02% and 12.63% for the corresponding period of 2023. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.83% and 9.46%, respectively, for the twelve months ended December 31, 2024, compared to 0.79% and 9.93% for the corresponding period of 2023. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, core earnings per share and tangible book value per share to the comparable GAAP financial measures is included at the end of this press release.
Net Interest Margin
The net interest margin for the three and twelve months ended December 31, 2024 was 2.98% and 2.83% respectively, compared to 2.73% and 2.80% for the corresponding periods of 2023. The increase in the net interest margin for the three month period was driven by an increase in the rate collected on interest-earning assets of 34 basis points (“bps”), while the decrease in the net interest margin for the twelve month period was driven by a 74 bps increase in the rate paid on interest-bearing liabilities. The overall increase in interest rates over the periods resulted in increases to both the yield on the earnings asset portfolio and the rate paid on interest-bearing liabilities. Driving the increase in the yield and interest income on the earning assets portfolio was the repricing of legacy assets coupled with portfolio growth. The average loan portfolio balance increased $47.4 million and $106.9 million, respectively, for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023 as the average yield on the portfolio increased 31 bps and 61 bps, resulting in an increase in taxable equivalent interest income of $2.0 million and $16.5 million, for the periods. The three and twelve month periods ended December 31, 2024 were impacted by an increase of 57 bps and 66 bps in the yield earned on the securities portfolio as legacy securities matured with the funds reinvested at higher rates, which resulted in an increase in taxable equivalent interest income of $285,000 and $1.5 million, respectively. Short-term borrowings decreased leading to a decrease of $1.8 million and $3.9 million, respectively, in expense for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023. The rate paid on interest-bearing deposits increased 37 bps and 96 bps, respectively, or $2.1 million and $13.8 million in expense, for the three and twelve month periods ended December 31, 2024 compared to the corresponding periods of 2023 due to the rate environment, an increase in competition for deposits, and a migration of deposit balances from core deposits to higher rate time deposits. The rates paid on time deposits significantly contributed to the increase in funding costs as rates paid for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023 increased 29 bps and 87 bps, respectively, or $1.7 million and $9.9 million in expense, as deposit gathering campaigns continued to focus on time deposits with a maturity of five to twenty-four months. In addition, brokered deposits have been utilized to assist with funding the loan portfolio growth and contributed to the increase in time deposit funding costs, while lowering the reliance on higher cost short-term borrowings.
Assets
Total assets increased to $2.2 billion at December 31, 2024, an increase of $27.5 million compared to December 31, 2023. Net loans increased $36.9 million to $1.9 billion at December 31, 2024 compared to December 31, 2023, as continued emphasis was placed on commercial loan growth and indirect auto lending. The investment portfolio decreased $10.7 million from December 31, 2023 to December 31, 2024.
Non-performing Loans
The ratio of non-performing loans to total loans ratio increased to 0.47% at December 31, 2024 from 0.17% at December 31, 2023, as non-performing loans increased to $8.9 million at December 31, 2024 from $3.1 million at December 31, 2023. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have been classified as individually evaluated loans that have a specific allocation recorded within the allowance for credit losses. Net loan charge offs of $228,000 and $540,000 for the three and twelve months ended December 31, 2024, respectively, impacted the allowance for credit losses, which was 0.63% of total loans at December 31, 2024 compared to 0.62% at December 31, 2023. Exposure to non-owner occupied office space is minimal at $14.1 million at December 31, 2024 with none of these loans being delinquent.
Deposits
Deposits increased $116.6 million to $1.7 billion at December 31, 2024 compared to December 31, 2023. Noninterest-bearing deposits decreased $14.2 million to $456.9 million at December 31, 2024 compared to December 31, 2023. Core deposits declined $17.8 million as deposits migrated from core deposit accounts into time deposits as market rates and competition for deposits increased. Core deposit gathering efforts remained focused on increasing the utilization of electronic (internet and mobile) deposit banking by our customers. Core deposits have remained stable at $1.2 billion over the past five quarters. Interest-bearing deposits increased $130.8 million from December 31, 2023 to December 31, 2024 due to growth in the time deposit portfolio of $80.8 million as customers sought a higher rate of interest. Brokered deposit balances increased $53.6 million to $178.3 million at December 31, 2024 as this funding source was utilized to supplement funding loan portfolio growth, while reducing the need to draw upon available borrowing lines. A campaign to attract time deposits with a maturity of five to twenty-four months commenced during the latter part of 2022 and has continued throughout 2023 and 2024 with current efforts centered on five months.
Shareholders’ Equity
Shareholders’ equity increased $13.7 million to $205.2 million at December 31, 2024 compared to December 31, 2023. During the three and twelve months ended December 31, 2024 there were no shares issued under the previously disclosed registered at-the-market offering. A total 31,066 shares for net proceeds of $632,000 were issued as part of the Dividend Reinvestment Plan during the twelve months ended December 31, 2024. Accumulated other comprehensive loss of $5.3 million at December 31, 2024 decreased from a loss of $9.2 million at December 31, 2023 as a result of a decrease in net unrealized loss on available for sale securities to $4.6 million at December 31, 2024 from a net unrealized loss of $6.4 million at December 31, 2023, coupled with a decrease in loss of $2.0 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $27.16 at December 31, 2024 compared to $25.51 at December 31, 2023, and an equity to asset ratio of 9.19% at December 31, 2024 and 8.69% at December 31, 2023. Tangible book value per share (a non-GAAP measure) increased to $24.97 at December 31, 2024 compared to $23.29 at December 31, 2023. Dividends declared for the three and twelve months ended December 31, 2024 and 2023 were $0.32 and $1.28 per share.
Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates sixteen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County, and United Insurance Solutions, LLC, which offers insurance products. Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.
NOTE: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Management uses the non-GAAP measure of net income from core operations in its analysis of the company’s performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because these certain items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact. The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies; or (vii) any potential adverse events or developments resulting from the merger agreement, dated December 16, 2024, between Penns Woods Bancorp, Inc. and Northwest Bancshares, Inc., including, without limitation, any event, change, or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement or the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or to successfully integrate the business and operations of Jersey Shore State Bank and Luzerne Bank with those of Northwest Savings Bank after closing. For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item 1A. Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.
Previous press releases and additional information can be obtained from the Company’s website at www.pwod.com.
| Contact: | Richard A. Grafmyre, Chief Executive Officer | |
| 110 Reynolds Street | ||
| Williamsport, PA 17702 | ||
| 570-322-1111 | e-mail: pwod@pwod.com | |
| PENNS WOODS BANCORP, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) |
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| December 31, | ||||||||||||
| (In Thousands, Except Share and Per Share Data) | 2024 | 2023 | % Change |
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| ASSETS: | ||||||||||||
| Noninterest-bearing cash | $ | 19,989 | $ | 28,969 | (31.00 | ) | % | |||||
| Interest-bearing balances in other financial institutions | 8,983 | 8,493 | 5.77 | % | ||||||||
| Total cash and cash equivalents | 28,972 | 37,462 | (22.66 | ) | % | |||||||
| Investment debt securities, available for sale, at fair value | 184,542 | 190,945 | (3.35 | ) | % | |||||||
| Investment equity securities, at fair value | 1,111 | 1,122 | (0.98 | ) | % | |||||||
| Restricted investment in bank stock | 20,032 | 24,323 | (17.64 | ) | % | |||||||
| Loans held for sale | 3,266 | 3,993 | (18.21 | ) | % | |||||||
| Loans | 1,877,078 | 1,839,764 | 2.03 | % | ||||||||
| Allowance for credit losses | (11,848 | ) | (11,446 | ) | 3.51 | % | ||||||
| Loans, net | 1,865,230 | 1,828,318 | 2.02 | % | ||||||||
| Premises and equipment, net | 27,789 | 30,250 | (8.14 | ) | % | |||||||
| Accrued interest receivable | 11,114 | 11,044 | 0.63 | % | ||||||||
| Bank-owned life insurance | 45,681 | 33,867 | 34.88 | % | ||||||||
| Investment in limited partnerships | 6,691 | 7,815 | (14.38 | ) | % | |||||||
| Goodwill | 16,450 | 16,450 | — | % | ||||||||
| Intangibles | 107 | 210 | (49.05 | ) | % | |||||||
| Operating lease right of use asset | 2,811 | 2,512 | 11.90 | % | ||||||||
| Deferred tax asset | 3,493 | 4,655 | (24.96 | ) | % | |||||||
| Other assets | 15,049 | 11,843 | 27.07 | % | ||||||||
| TOTAL ASSETS | $ | 2,232,338 | $ | 2,204,809 | 1.25 | % | ||||||
| LIABILITIES: | ||||||||||||
| Interest-bearing deposits | $ | 1,249,145 | $ | 1,118,320 | 11.70 | % | ||||||
| Noninterest-bearing deposits | 456,936 | 471,173 | (3.02 | ) | % | |||||||
| Total deposits | 1,706,081 | 1,589,493 | 7.33 | % | ||||||||
| % | ||||||||||||
| Short-term borrowings | 42,200 | 145,926 | (71.08 | ) | % | |||||||
| Long-term borrowings | 254,588 | 252,598 | 0.79 | % | ||||||||
| Accrued interest payable | 4,664 | 3,814 | 22.29 | % | ||||||||
| Operating lease liability | 2,889 | 2,570 | 12.41 | % | ||||||||
| Other liabilities | 16,685 | 18,852 | (11.49 | ) | % | |||||||
| TOTAL LIABILITIES | 2,027,107 | 2,013,253 | 0.69 | % | ||||||||
| SHAREHOLDERS’ EQUITY: | ||||||||||||
| Preferred stock, no par value, 3,000,000 shares authorized; no shares issued | — | — | n/a | |||||||||
| Common stock, par value $5.55, 22,500,000 shares authorized; 8,066,968 and 8,019,219 shares issued; 7,556,743 and 7,508,994 shares outstanding | 44,815 | 44,550 | 0.59 | % | ||||||||
| Additional paid-in capital | 63,193 | 61,733 | 2.37 | % | ||||||||
| Retained earnings | 115,331 | 107,238 | 7.55 | % | ||||||||
| Accumulated other comprehensive loss: | ||||||||||||
| Net unrealized loss on available for sale securities | (4,567 | ) | (6,396 | ) | 28.60 | % | ||||||
| Defined benefit plan | (726 | ) | (2,754 | ) | 73.64 | % | ||||||
| Treasury stock at cost, 510,225 shares | (12,815 | ) | (12,815 | ) | — | % | ||||||
| TOTAL SHAREHOLDERS’ EQUITY | 205,231 | 191,556 | 7.14 | % | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,232,338 | $ | 2,204,809 | 1.25 | % | ||||||
| PENNS WOODS BANCORP, INC. CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) |
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| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
| (In Thousands, Except Share and Per Share Data) | 2024 | 2023 | % Change |
2024 | 2023 | % Change |
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| INTEREST AND DIVIDEND INCOME: | ||||||||||||||||||||||||
| Loans including fees | $ | 25,759 | $ | 23,720 | 8.60 | % | $ | 99,780 | $ | 83,291 | 19.80 | % | ||||||||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable | 1,826 | 1,476 | 23.71 | % | 7,039 | 5,346 | 31.67 | % | ||||||||||||||||
| Tax-exempt | 59 | 107 | (44.86 | ) | % | 292 | 517 | (43.52 | ) | % | ||||||||||||||
| Dividend and other interest income | 607 | 614 | (1.14 | ) | % | 2,587 | 2,441 | 5.98 | % | |||||||||||||||
| TOTAL INTEREST AND DIVIDEND INCOME | 28,251 | 25,917 | 9.01 | % | 109,698 | 91,595 | 19.76 | % | ||||||||||||||||
| INTEREST EXPENSE: | ||||||||||||||||||||||||
| Deposits | 9,523 | 7,445 | 27.91 | % | 35,962 | 22,131 | 62.50 | % | ||||||||||||||||
| Short-term borrowings | 479 | 2,317 | (79.33 | ) | % | 4,503 | 8,401 | (46.40 | ) | % | ||||||||||||||
| Long-term borrowings | 2,686 | 2,207 | 21.70 | % | 10,353 | 6,099 | 69.75 | % | ||||||||||||||||
| TOTAL INTEREST EXPENSE | 12,688 | 11,969 | 6.01 | % | 50,818 | 36,631 | 38.73 | % | ||||||||||||||||
| NET INTEREST INCOME | 15,563 | 13,948 | 11.58 | % | 58,880 | 54,964 | 7.12 | % | ||||||||||||||||
| PROVISION (RECOVERY) FOR CREDIT LOSSES | 420 | (1,742 | ) | 124.11 | % | 121 | (1,479 | ) | 108.18 | % | ||||||||||||||
| NET INTEREST INCOME AFTER PROVISION (RECOVERY) OF CREDIT LOSSES | 15,143 | 15,690 | (3.49 | ) | % | 58,759 | 56,443 | 4.10 | % | |||||||||||||||
| NON-INTEREST INCOME: | ||||||||||||||||||||||||
| Service charges | 516 | 533 | (3.19 | ) | % | 2,067 | 2,090 | (1.10 | ) | % | ||||||||||||||
| Net debt securities losses, available for sale | (9 | ) | (68 | ) | 86.76 | % | (49 | ) | (193 | ) | 74.61 | % | ||||||||||||
| Net equity securities (losses) gains | (35 | ) | 50 | (170.00 | ) | % | (11 | ) | 15 | (173.33 | ) | % | ||||||||||||
| Bank-owned life insurance | 303 | 171 | 77.19 | % | 1,159 | 1,063 | 9.03 | % | ||||||||||||||||
| Gain on sale of loans | 463 | 314 | 47.45 | % | . | 1,484 | 1,046 | 41.87 | % | |||||||||||||||
| Insurance commissions | 128 | 113 | 13.27 | % | 553 | 529 | 4.54 | % | ||||||||||||||||
| Brokerage commissions | 163 | 127 | 28.35 | % | 684 | 575 | 18.96 | % | ||||||||||||||||
| Loan broker income | 543 | 264 | 105.68 | % | 1,384 | 992 | 39.52 | % | ||||||||||||||||
| Debit card income | 385 | 333 | 15.62 | % | 1,437 | 1,328 | 8.21 | % | ||||||||||||||||
| Other | 253 | 384 | (34.11 | ) | % | 910 | 930 | (2.15 | ) | % | ||||||||||||||
| TOTAL NON-INTEREST INCOME | 2,710 | 2,221 | 22.02 | % | 9,618 | 8,375 | 14.84 | % | ||||||||||||||||
| NON-INTEREST EXPENSE: | ||||||||||||||||||||||||
| Salaries and employee benefits | 7,032 | 6,284 | 11.90 | % | 26,256 | 25,062 | 4.76 | % | ||||||||||||||||
| Occupancy | 758 | 746 | 1.61 | % | 3,152 | 3,168 | (0.51 | ) | % | |||||||||||||||
| Furniture and equipment | 1,233 | 889 | 38.70 | % | 3,669 | 3,392 | 8.17 | % | ||||||||||||||||
| Software amortization | 339 | 250 | 35.60 | % | 996 | 843 | 18.15 | % | ||||||||||||||||
| Pennsylvania shares tax | 351 | 275 | 27.64 | % | 1,373 | 1,082 | 26.89 | % | ||||||||||||||||
| Professional fees | 523 | 640 | (18.28 | ) | % | 2,177 | 2,953 | (26.28 | ) | % | ||||||||||||||
| Federal Deposit Insurance Corporation deposit insurance | 385 | 456 | (15.57 | ) | % | 1,564 | 1,578 | (0.89 | ) | % | ||||||||||||||
| Marketing | 74 | 90 | (17.78 | ) | % | 283 | 684 | (58.63 | ) | % | ||||||||||||||
| Intangible amortization | 25 | 25 | — | % | 102 | 117 | (12.82 | ) | % | |||||||||||||||
| Merger expense | 735 | — | n/a | 735 | — | n/a | ||||||||||||||||||
| Other | 1,525 | 1,342 | 13.64 | % | 6,177 | 5,617 | 9.97 | % | ||||||||||||||||
| TOTAL NON-INTEREST EXPENSE | 12,980 | 10,997 | 18.03 | % | 46,484 | 44,496 | 4.47 | % | ||||||||||||||||
| INCOME BEFORE INCOME TAX PROVISION | 4,873 | 6,914 | (29.52 | ) | % | 21,893 | 20,322 | 7.73 | % | |||||||||||||||
| INCOME TAX PROVISION | 1,132 | 1,359 | (16.70 | ) | % | 4,154 | 3,714 | 11.85 | % | |||||||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS’ | $ | 3,741 | $ | 5,555 | (32.66 | ) | % | $ | 17,739 | $ | 16,608 | 6.81 | % | |||||||||||
| EARNINGS PER SHARE – BASIC | $ | 0.50 | $ | 0.77 | (35.06 | ) | % | $ | 2.35 | $ | 2.34 | 0.43 | % | |||||||||||
| EARNINGS PER SHARE – DILUTED | $ | 0.49 | $ | 0.77 | (36.36 | ) | % | $ | 2.35 | $ | 2.34 | 0.43 | % | |||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC | 7,555,168 | 7,255,222 | 4.13 | % | 7,535,397 | 7,112,450 | 5.95 | % | ||||||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED | 7,693,185 | 7,255,222 | 6.04 | % | 7,543,111 | 7,112,450 | 6.06 | % | ||||||||||||||||
| PENNS WOODS BANCORP, INC. AVERAGE BALANCES AND INTEREST RATES (UNAUDITED) |
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| Three Months Ended | ||||||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||
| (Dollars in Thousands) | Average Balance (1) |
Interest | Average Rate |
Average Balance (1) |
Interest | Average Rate |
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| ASSETS: | ||||||||||||||||||||||||
| Tax-exempt loans (3) | $ | 69,967 | $ | 453 | 2.58 | % | $ | 68,234 | $ | 478 | 2.78 | % | ||||||||||||
| All other loans | 1,806,212 | 25,401 | 5.59 | % | 1,760,509 | 23,342 | 5.26 | % | ||||||||||||||||
| Total loans (2) | 1,876,179 | 25,854 | 5.48 | % | 1,828,743 | 23,820 | 5.17 | % | ||||||||||||||||
| Taxable securities | 199,868 | 2,277 | 4.63 | % | 193,744 | 1,932 | 4.04 | % | ||||||||||||||||
| Tax-exempt securities (3) | 11,317 | 75 | 2.70 | % | 18,041 | 135 | 3.03 | % | ||||||||||||||||
| Total securities | 211,185 | 2,352 | 4.53 | % | 211,785 | 2,067 | 3.96 | % | ||||||||||||||||
| Interest-bearing balances in other financial institutions | 13,136 | 156 | 4.72 | % | 11,795 | 158 | 5.31 | % | ||||||||||||||||
| Total interest-earning assets | 2,100,500 | 28,362 | 5.38 | % | 2,052,323 | 26,045 | 5.04 | % | ||||||||||||||||
| Other assets | 137,840 | 130,421 | ||||||||||||||||||||||
| TOTAL ASSETS | $ | 2,238,340 | $ | 2,182,744 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||||||||||||||||||
| Savings | $ | 209,300 | 266 | 0.51 | % | $ | 222,740 | 229 | 0.41 | % | ||||||||||||||
| Super Now deposits | 220,792 | 1,070 | 1.93 | % | 227,113 | 1,129 | 1.97 | % | ||||||||||||||||
| Money market deposits | 323,181 | 2,656 | 3.27 | % | 293,542 | 2,217 | 3.00 | % | ||||||||||||||||
| Time deposits | 504,683 | 5,531 | 4.36 | % | 377,516 | 3,870 | 4.07 | % | ||||||||||||||||
| Total interest-bearing deposits | 1,257,956 | 9,523 | 3.01 | % | 1,120,911 | 7,445 | 2.64 | % | ||||||||||||||||
| Short-term borrowings | 38,495 | 479 | 4.96 | % | 163,088 | 2,317 | 5.63 | % | ||||||||||||||||
| Long-term borrowings | 256,521 | 2,686 | 4.17 | % | 235,998 | 2,207 | 3.71 | % | ||||||||||||||||
| Total borrowings | 295,016 | 3,165 | 4.27 | % | 399,086 | 4,524 | 4.50 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,552,972 | 12,688 | 3.25 | % | 1,519,997 | 11,969 | 3.12 | % | ||||||||||||||||
| Demand deposits | 454,612 | 457,546 | ||||||||||||||||||||||
| Other liabilities | 25,218 | 28,786 | ||||||||||||||||||||||
| Shareholders’ equity | 205,538 | 176,415 | ||||||||||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,238,340 | $ | 2,182,744 | ||||||||||||||||||||
| Interest rate spread (3) | 2.13 | % | 1.92 | % | ||||||||||||||||||||
| Net interest income/margin (3) | $ | 15,674 | 2.98 | % | $ | 14,076 | 2.73 | % | ||||||||||||||||
| 1. | Information on this table has been calculated using average daily balance sheets to obtain average balances. |
| 2. | Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings. |
| 3. | Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%. |
| Three Months Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Total interest income | $ | 28,251 | $ | 25,917 | ||||
| Total interest expense | 12,688 | 11,969 | ||||||
| Net interest income (GAAP) | 15,563 | 13,948 | ||||||
| Tax equivalent adjustment | 111 | 128 | ||||||
| Net interest income (fully taxable equivalent) (non-GAAP) | $ | 15,674 | $ | 14,076 | ||||
| PENNS WOODS BANCORP, INC. AVERAGE BALANCES AND INTEREST RATES (UNAUDITED) |
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| Twelve Months Ended | ||||||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||
| (Dollars in Thousands) | Average Balance (1) |
Interest | Average Rate |
Average Balance (1) |
Interest | Average Rate |
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| ASSETS: | ||||||||||||||||||||||||
| Tax-exempt loans (3) | $ | 69,448 | $ | 1,943 | 2.80 | % | $ | 66,863 | $ | 1,849 | 2.77 | % | ||||||||||||
| All other loans | 1,796,096 | 98,245 | 5.47 | % | 1,691,742 | 81,830 | 4.84 | % | ||||||||||||||||
| Total loans (2) | 1,865,544 | 100,188 | 5.37 | % | 1,758,605 | 83,679 | 4.76 | % | ||||||||||||||||
| Taxable securities | 202,934 | 9,072 | 4.47 | % | 189,804 | 7,263 | 3.83 | % | ||||||||||||||||
| Tax-exempt securities (3) | 13,045 | 370 | 2.84 | % | 23,872 | 654 | 2.74 | % | ||||||||||||||||
| Total securities | 215,979 | 9,442 | 4.37 | % | 213,676 | 7,917 | 3.71 | % | ||||||||||||||||
| Interest-bearing balances in other financial institutions | 11,074 | 554 | 5.00 | % | 10,916 | 524 | 4.80 | % | ||||||||||||||||
| Total interest-earning assets | 2,092,597 | 110,184 | 5.27 | % | 1,983,197 | 92,120 | 4.65 | % | ||||||||||||||||
| Other assets | 132,720 | 131,704 | ||||||||||||||||||||||
| TOTAL ASSETS | $ | 2,225,317 | $ | 2,114,901 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||||||||||||||||||
| Savings | $ | 215,107 | 1,077 | 0.50 | % | $ | 231,000 | 685 | 0.30 | % | ||||||||||||||
| Super Now deposits | 218,932 | 4,373 | 2.00 | % | 276,868 | 4,155 | 1.50 | % | ||||||||||||||||
| Money market deposits | 311,836 | 10,390 | 3.33 | % | 292,755 | 7,024 | 2.40 | % | ||||||||||||||||
| Time deposits | 460,869 | 20,122 | 4.37 | % | 293,252 | 10,267 | 3.50 | % | ||||||||||||||||
| Total interest-bearing deposits | 1,206,744 | 35,962 | 2.98 | % | 1,093,875 | 22,131 | 2.02 | % | ||||||||||||||||
| Short-term borrowings | 82,046 | 4,503 | 5.49 | % | 157,140 | 8,401 | 5.36 | % | ||||||||||||||||
| Long-term borrowings | 256,850 | 10,353 | 4.03 | % | 186,094 | 6,099 | 3.28 | % | ||||||||||||||||
| Total borrowings | 338,896 | 14,856 | 4.40 | % | 343,234 | 14,500 | 4.23 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,545,640 | 50,818 | 3.29 | % | 1,437,109 | 36,631 | 2.55 | % | ||||||||||||||||
| Demand deposits | 454,878 | 477,828 | ||||||||||||||||||||||
| Other liabilities | 30,680 | 31,243 | ||||||||||||||||||||||
| Shareholders’ equity | 194,119 | 168,721 | ||||||||||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,225,317 | $ | 2,114,901 | ||||||||||||||||||||
| Interest rate spread (3) | 1.98 | % | 2.10 | % | ||||||||||||||||||||
| Net interest income/margin (3) | $ | 59,366 | 2.83 | % | $ | 55,489 | 2.80 | % | ||||||||||||||||
| 1. | Information on this table has been calculated using average daily balance sheets to obtain average balances. |
| 2. | Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings. |
| 3. | Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%. |
| Twelve months ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Total interest income | $ | 109,698 | $ | 91,595 | ||||
| Total interest expense | 50,818 | 36,631 | ||||||
| Net interest income (GAAP) | 58,880 | 54,964 | ||||||
| Tax equivalent adjustment | 486 | 525 | ||||||
| Net interest income (fully taxable equivalent) (non-GAAP) | $ | 59,366 | $ | 55,489 | ||||
| (Dollars in Thousands, Except Per Share Data, Unaudited) | Quarter Ended | ||||||||||||||||||||||||
| 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | |||||||||||||||||||||
| Operating Data | |||||||||||||||||||||||||
| Net income | $ | 3,741 | $ | 4,801 | $ | 5,390 | $ | 3,808 | $ | 5,555 | |||||||||||||||
| Net interest income | 15,563 | 15,056 | 14,515 | 13,746 | 13,948 | ||||||||||||||||||||
| Provision (recovery) for credit losses | 420 | 740 | (1,177 | ) | 138 | (1,742 | ) | ||||||||||||||||||
| Net security (losses) gains | (44 | ) | 36 | (19 | ) | (33 | ) | (18 | ) | ||||||||||||||||
| Non-interest income, excluding net security (losses) gains | 2,754 | 2,385 | 2,044 | 2,495 | 2,239 | ||||||||||||||||||||
| Non-interest expense | 12,980 | 10,884 | 10,996 | 11,623 | 10,997 | ||||||||||||||||||||
| Performance Statistics | |||||||||||||||||||||||||
| Net interest margin | 2.98 | % | 2.88 | % | 2.83 | % | 2.69 | % | 2.73 | % | |||||||||||||||
| Annualized cost of total deposits | 2.22 | % | 2.27 | % | 2.14 | % | 2.01 | % | 1.89 | % | |||||||||||||||
| Annualized non-interest income to average assets | 0.48 | % | 0.43 | % | 0.37 | % | 0.45 | % | 0.41 | % | |||||||||||||||
| Annualized non-interest expense to average assets | 2.32 | % | 1.95 | % | 1.98 | % | 2.10 | % | 2.02 | % | |||||||||||||||
| Annualized return on average assets | 0.67 | % | 0.86 | % | 0.97 | % | 0.69 | % | 1.02 | % | |||||||||||||||
| Annualized return on average equity | 7.28 | % | 9.60 | % | 11.12 | % | 8.03 | % | 12.60 | % | |||||||||||||||
| Annualized net loan charge-offs (recoveries) to average loans | 0.05 | % | 0.07 | % | (0.09 | ) | % | 0.08 | % | (0.05 | ) | % | |||||||||||||
| Net charge-offs (recoveries) | 228 | 328 | (396 | ) | 380 | (209 | ) | ||||||||||||||||||
| Efficiency ratio | 70.73 | % | 62.26 | % | 66.25 | % | 71.41 | % | 67.78 | % | |||||||||||||||
| Per Share Data | |||||||||||||||||||||||||
| Basic earnings per share | $ | 0.50 | $ | 0.64 | $ | 0.72 | $ | 0.51 | $ | 0.77 | |||||||||||||||
| Diluted earnings per share | 0.49 | 0.64 | 0.72 | 0.51 | 0.77 | ||||||||||||||||||||
| Dividend declared per share | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | ||||||||||||||||||||
| Book value | 27.16 | 26.96 | 26.13 | 25.72 | 25.51 | ||||||||||||||||||||
| Tangible book value (Non-GAAP) | 24.97 | 24.77 | 23.93 | 23.50 | 23.29 | ||||||||||||||||||||
| Common stock price: | |||||||||||||||||||||||||
| High | 34.06 | 23.98 | 21.08 | 22.64 | 23.64 | ||||||||||||||||||||
| Low | 23.74 | 19.29 | 17.17 | 18.44 | 20.05 | ||||||||||||||||||||
| Close | 30.39 | 23.79 | 20.55 | 19.41 | 22.51 | ||||||||||||||||||||
| Weighted average common shares: | |||||||||||||||||||||||||
| Basic | 7,555 | 7,544 | 7,529 | 7,513 | 7,255 | ||||||||||||||||||||
| Fully Diluted | 7,693 | 7,544 | 7,529 | 7,513 | 7,255 | ||||||||||||||||||||
| End-of-period common shares: | |||||||||||||||||||||||||
| Issued | 8,067 | 8,065 | 8,052 | 8,036 | 8,019 | ||||||||||||||||||||
| Treasury | (510 | ) | (510 | ) | (510 | ) | (510 | ) | (510 | ) | |||||||||||||||
| (Dollars in Thousands, Unaudited) | Quarter Ended | ||||||||||||||||||||||||
| 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | |||||||||||||||||||||
| Financial Condition Data: | |||||||||||||||||||||||||
| General | |||||||||||||||||||||||||
| Total assets | $ | 2,232,338 | $ | 2,259,250 | $ | 2,234,617 | $ | 2,210,116 | $ | 2,204,809 | |||||||||||||||
| Loans, net | 1,865,230 | 1,863,586 | 1,855,054 | 1,843,805 | 1,828,318 | ||||||||||||||||||||
| Goodwill | 16,450 | 16,450 | 16,450 | 16,450 | 16,450 | ||||||||||||||||||||
| Intangibles | 107 | 133 | 158 | 184 | 210 | ||||||||||||||||||||
| Total deposits | 1,706,081 | 1,700,321 | 1,648,093 | 1,618,562 | 1,589,493 | ||||||||||||||||||||
| Noninterest-bearing | 456,936 | 452,922 | 461,092 | 471,451 | 471,173 | ||||||||||||||||||||
| Savings | 208,340 | 211,560 | 218,354 | 220,932 | 219,287 | ||||||||||||||||||||
| NOW | 212,687 | 218,279 | 209,906 | 208,073 | 214,888 | ||||||||||||||||||||
| Money Market | 308,977 | 321,614 | 320,101 | 299,916 | 299,353 | ||||||||||||||||||||
| Time Deposits | 340,844 | 328,294 | 310,187 | 292,372 | 260,067 | ||||||||||||||||||||
| Brokered Deposits | 178,297 | 167,652 | 128,453 | 125,818 | 124,725 | ||||||||||||||||||||
| Total interest-bearing deposits | 1,249,145 | 1,247,399 | 1,187,001 | 1,147,111 | 1,118,320 | ||||||||||||||||||||
| Core deposits* | 1,186,940 | 1,204,375 | 1,209,453 | 1,200,372 | 1,204,701 | ||||||||||||||||||||
| Shareholders’ equity | 205,231 | 203,694 | 197,087 | 193,517 | 191,556 | ||||||||||||||||||||
| Asset Quality | |||||||||||||||||||||||||
| Non-performing loans | $ | 8,904 | $ | 7,940 | $ | 6,784 | $ | 7,958 | $ | 3,148 | |||||||||||||||
| Non-performing loans to total assets | 0.40 | % | 0.35 | % | 0.30 | % | 0.36 | % | 0.14 | % | |||||||||||||||
| Allowance for credit losses on loans | 11,848 | 11,588 | 11,234 | 11,542 | 11,446 | ||||||||||||||||||||
| Allowance for credit losses on loans to total loans | 0.63 | % | 0.62 | % | 0.60 | % | 0.62 | % | 0.62 | % | |||||||||||||||
| Allowance for credit losses on loans to non-performing loans | 133.06 | % | 145.94 | % | 165.60 | % | 145.04 | % | 363.60 | % | |||||||||||||||
| Non-performing loans to total loans | 0.47 | % | 0.42 | % | 0.36 | % | 0.43 | % | 0.17 | % | |||||||||||||||
| Capitalization | |||||||||||||||||||||||||
| Shareholders’ equity to total assets | 9.19 | % | 9.02 | % | 8.82 | % | 8.76 | % | 8.69 | % | |||||||||||||||
| * Core deposits are defined as total deposits less time deposits and brokered deposits. | |||||||||||||||||||||||||
| Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) |
||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data, Unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| GAAP net income | $ | 3,741 | $ | 5,555 | $ | 17,739 | $ | 16,608 | ||||||||||||
| Net securities losses, net of tax | 35 | 14 | 47 | 141 | ||||||||||||||||
| Merger expenses, net of tax | 581 | — | 581 | — | ||||||||||||||||
| Non-GAAP core earnings | $ | 4,357 | $ | 5,569 | $ | 18,367 | $ | 16,749 | ||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Return on average assets (ROA) | 0.67 | % | 1.02 | % | 0.80 | % | 0.79 | % | ||||||||||||
| Net securities losses, net of tax | 0.01 | % | — | % | — | % | — | % | ||||||||||||
| Merger expenses, net of tax | 0.10 | % | — | % | 0.03 | % | — | % | ||||||||||||
| Non-GAAP core ROA | 0.78 | % | 1.02 | % | 0.83 | % | 0.79 | % | ||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Return on average equity (ROE) | 7.28 | % | 12.60 | % | 9.14 | % | 9.84 | % | ||||||||||||
| Net securities losses, net of tax | 0.07 | % | 0.03 | % | 0.02 | % | 0.09 | % | ||||||||||||
| Merger expenses, net of tax | 1.13 | % | — | % | 0.30 | % | — | % | ||||||||||||
| Non-GAAP core ROE | 8.48 | % | 12.63 | % | 9.46 | % | 9.93 | % | ||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Basic earnings per share (EPS) | $ | 0.50 | $ | 0.77 | $ | 2.35 | $ | 2.34 | ||||||||||||
| Net securities losses, net of tax | — | — | 0.01 | 0.02 | ||||||||||||||||
| Merger expenses, net of tax | 0.08 | — | 0.08 | — | ||||||||||||||||
| Non-GAAP basic core EPS | $ | 0.58 | $ | 0.77 | $ | 2.44 | $ | 2.36 | ||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Diluted EPS | $ | 0.49 | $ | 0.77 | $ | 2.35 | $ | 2.34 | ||||||||||||
| Net securities losses, net of tax | — | — | 0.01 | 0.02 | ||||||||||||||||
| Merger expenses, net of tax | 0.08 | — | 0.08 | — | ||||||||||||||||
| Non-GAAP diluted core EPS | $ | 0.57 | $ | 0.77 | $ | 2.44 | $ | 2.36 | ||||||||||||
| (Dollars in Thousands, Except Share and Per Share Data, Unaudited) | Quarter Ended | |||||||||||||||||||
| 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | ||||||||||||||||
| Total shareholders’ equity | $ | 205,231 | $ | 203,694 | $ | 197,087 | $ | 193,517 | $ | 191,556 | ||||||||||
| Goodwill | (16,450 | ) | (16,450 | ) | (16,450 | ) | (16,450 | ) | (16,450 | ) | ||||||||||
| Intangibles | (107 | ) | (133 | ) | (158 | ) | (184 | ) | (210 | ) | ||||||||||
| Tangible shareholders’ equity | $ | 188,674 | $ | 187,111 | $ | 180,479 | $ | 176,883 | $ | 174,896 | ||||||||||
| Shares outstanding | 7,556,743 | 7,554,488 | 7,541,474 | 7,525,372 | 7,508,994 | |||||||||||||||
| Book value per share | $ | 27.16 | $ | 26.96 | $ | 26.13 | $ | 25.72 | $ | 25.51 | ||||||||||
| Tangible book value per share (Non-GAAP) | $ | 24.97 | $ | 24.77 | $ | 23.93 | $ | 23.50 | $ | 23.29 | ||||||||||
Source: European Parliament
Priority question for written answer P-000356/2025
to the Commission
Rule 144
Gaetano Pedulla’ (The Left)
On 24 January, the bank Monte dei Paschi di Siena (MPS) announced a EUR 13.3 billion buyout bid for Mediobanca. The Italian State, through the Ministry of Economy, still has an 11.7 % share in MPS, despite the obligation to sell the entire stake by 2024 set by the European Commission, which in 2017 authorised the bank’s rescue, waiving State aid rules in doing so.
Since 2017, MPS has received a total of EUR 7 billion in public funding and has undertaken costly staff redundancy plans – the last of which affected 4 125 employees – again with the financial support of the State.
It should also be noted that, despite the size of the public share, the government in fact appoints the bank’s top management.
In view of the above, can the Commission answer the following questions:
Submitted: 27.1.2025
Source: United Nations 4
By Vibhu Mishra
Four years after the military coup which plunged Myanmar into turmoil, the country is facing an unprecedented “polycrisis,” marked by economic collapse, intensifying conflict, complex climate hazards and deepening poverty, according to a new report by the UN Development Programme (UNDP).
Myanmar’s Enduring Polycrisis: Four Years into a Tumultuous Journey, launched on Wednesday, points to the bleak picture of a nation in freefall, with nearly half the population living below the poverty line, essential services crumbling and the economy in disarray.
With no political resolution in sight, the crisis is expected to worsen in the coming year.
“The coming year will test Myanmar’s resilience to its limits,” the report warns, calling for urgent international engagement to mitigate further suffering and prevent total collapse.
“A more stable and peaceful Myanmar that thrives on a legal economy, protects it human and natural resource assets and invests in the safety and prosperity of all its people is also in the self-interest of its neighbours and the international community writ large,” it added.
Source: UNDP
Myanmar’s economy has sharply declined since 2021.
Since 2020, Myanmar’s gross domestic product (GDP) has contracted by nine per cent, reversing the economic progress of the previous decade.
Inflation reached 25.4 per cent reached in 2024, further eroding household purchasing power. The trade deficit ballooned to 2.2 per cent of GDP, exacerbated by severe restrictions on cross-border commerce, and the currency plummeted over 1,330 kyat per US dollar in 2021 to 4,520 in 2025, making imports unaffordable and sending prices soaring.
The economic situation worsened further as the country was blacklisted by the Financial Action Task Force (FATF) for failing to combat money laundering and terrorist financing.
Against this backdrop, Myanmar’s illicit economy is thriving and it has become the world’s leading producer of opium and heroin, and one of the largest manufacturers of methamphetamines.
The jade industry, valued at billions of dollars annually, remains largely unregulated, fuelling corruption and environmental degradation. Illegal gambling, human trafficking, and scam operations have flourished along the country’s porous borders.
Myanmar’s ongoing conflict has displaced more than 3.5 million people within the country and driven many more across its borders. Internally displaced persons (IDPs) lack vital assistance and protections, and host communities are reeling under the strained resources.
Hunger is reaching catastrophic levels and agricultural productivity has declined by 16 per cent since 2021, largely due to conflict and climate-related disasters.
Fertilizer shortages, skyrocketing fuel prices, and trade disruptions have driven the price of the staple rice up by 47 per cent in some regions. The western state of Rakhine is particularly vulnerable, with food production projected to meet only 20 per cent of local needs by mid-2025, raising fears of famine-like conditions.
Public services are also severely affected, with over half of the country lacking access to electricity and hospitals out of service in conflict zones.
The dire economic and security situation has led to an exodus of Myanmar’s youth, with 3.7 million having migrated to Thailand by 2023. Many face exploitation and forced labour due to restrictive legal migration pathways, while those who remain are at risk of forced conscription into the military.
School enrolment rates have also dropped significantly as access to educational facilities has been disrupted by conflict and economic hardships. In the 2023/2024 academic year, over 20 per cent of children were not attending school.
The outlook for Myanmar remains precarious. If current trends continue, poverty will rise further, migration will intensify and the country’s fragile economy will struggle under the weight of continued conflict and international isolation, the report warns.
Despite Myanmar’s deepening crisis, opportunities for recovery exist.
The report highlights the resilience of local communities and the potential of civil society organizations in rebuilding social cohesion. Engaging the diaspora through education and skills development could help retain and attract talent, while expanding opportunities for women in business and employment could boost household incomes.
Agricultural revitalisation, through climate-resilient crops and irrigation, is crucial for food security, while investment in environmental protection – such as reforestation and mangrove restoration – could safeguard jobs in the future.
US Senate News:
Source: United States Senator John Kennedy (Louisiana)
Watch Kennedy’s comments here.
WASHINGTON – Sen. John Kennedy (R-La.) explained why Congress must focus on spending cuts over the next six months even as it bolsters America’s national defense, extends its 2017 tax cuts, addresses inflation and grows the country’s economy enough to pay down its national debt in a speech on the Senate floor.
Key excerpts of Kennedy’s speech are below:
“If we don’t extend those tax cuts, it is going to drive our GDP and our economy on a journey to the center of the Earth. Even my Democratic friends know those tax cuts have to be extended, but we have got other things we have to do, too. We are deficit spending. We are spending money around here like it was pond water, like it was ditch water. . . . I don’t want to blame it all on President Biden, but, if the shoe fits, wear it, Cinderella.”
. . .
“We have now got $36 trillion worth of national debt. . . . That is the most debt we have ever had, well over 100% of GDP. So, we have got to renew the tax cuts, . . . and we have got to stop the deficit spending, and we have got to reduce our debt—but there’s more. There’s more.
“We have got to increase defense spending because President Xi is working with President Putin, who is working with the Ayatollah in Iran. . . . I don’t want America to be the world’s policeman, but I don’t want President Xi or President Putin or the Ayatollah in Iran to be the world’s policemen either. Weakness invites the wolves, and we have got to start spending more money on defense.
“Now you don’t have to be Einstein’s cousin to figure out that all the things that I just described that we have to do in the next year-to-six-months could be called ‘competing interests’—tax cuts, stop deficit spending, reduce the debt, but find more money for defense. Something has got to give . . . we are going to have to reduce spending.
“Since 2019, the American population has grown 2%. We are not having babies. Two percent—and that is after all the illegal immigration. Do you know what has happened to our budget? It has gone up [nearly] 55%.”
. . .
“We’re going to have to reduce spending to pre-pandemic levels, and that is what this [Office of Management and Budget] memorandum today—which temporarily held up the spending of some money, consistent with President Trump’s executive orders—was the first baby step toward. That is what this is all about. That is what this is all about. The world is not going to spin off its axis.”
. . .
“So, I hope all the folks today will go home and take off their Batman t-shirts, wash them [because they’re] probably a little sweaty. I hope everybody will go home—those who drink, have a cocktail—take their meds and put this all in perspective. That’s what that OMB memorandum was all about.”
. . .
“If you don’t believe we’re going to have to cut spending substantially in order to get out of this mess that has been created, then you shouldn’t be driving.”
Watch Kennedy’s full speech here.
Source: GlobeNewswire (MIL-OSI)
Wellington Central, New Zealand, Jan. 29, 2025 (GLOBE NEWSWIRE) — AMERANY, a leading innovator in the cryptocurrency staking sector, is proud to announce the launch of its groundbreaking staking protocol, designed to enhance passive income opportunities for cryptocurrency investors significantly. With a Total Value Locked (TVL) approaching $200 million, AMERANY stands as one of the largest staking protocols on the market, supporting a wide array of tokens across Ethereum (ETH), Optimism (OP), Arbitrum (ARB), Manta, and other networks.
Staking redefines the utility of staked assets by allowing them to be used for additional staking in different programs or platforms, thereby offering holders the chance to accumulate more rewards. AMERANY’s protocol enables users of ETH, OP, ARB, and other supported tokens to connect to smart contracts, facilitating the reuse of their tokens for extra rewards, making it an attractive option for those looking to maximize their cryptocurrency holdings.
AMERANY has quickly positioned itself as the largest provider regarding the number of supported staking tokens, offering high potential returns to its users. The staking market has seen substantial growth in 2024, with Ethereum staking, led by AMERANY, capturing most of the market’s total value locked.
Supported tokens within the AMERANY ecosystem include, but are not limited to, BNB, LINK, UNI, APT, FTM, USDC, USDT, and other stablecoins, WBTC, as well as wSOL – which is one of the few platforms that allows Ethereum users to purchase and stake SOL.
Plans to expand support to more tokens are underway, promising even greater flexibility and earning potential for users.
The benefits of staking are manifold. It promotes competition among security providers, lowers barriers for new protocols, and strengthens the resilience of Ethereum, Optimism, Arbitrum, Manta, and other supported networks against attacks. Validators earn income through this process, and stakeholders can increase efficiency by diversifying their staked assets across multiple protocols.
“In addition to staking, AMERANY offers staking services and liquid pools for over 60 tokens, with attractive APR yields,” said Eric Smith, CEO at AMERANY. “Our mission is to provide cryptocurrency holders with innovative ways to maximize their investments, and our staking protocol is a testament to this commitment.”
About AMERANY
AMERANY is a leading cryptocurrency staking and staking protocol built on Ethereum, Optimism, Arbitrum, Manta, and other networks. It aims to revolutionize how cryptocurrency holders generate passive income by providing innovative staking and staking solutions. With a TVL approaching $200 million, AMERANY is at the forefront of the staking market, offering high potential returns and supporting a wide range of tokens.
Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. Cryptocurrency mining and staking involves risk. There is potential for loss of funds. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.
Source: Government of Canada regional news (2)
Alberta’s government is committed to ensuring Jasper residents, businesses and not-for-profits are supported as the community recovers from last summer’s wildfire. Since the beginning of the wildfire, more than $170 million has been provided from across the provincial government to support Jasper residents and businesses as the community recovers and rebuilds.
The donation-matching initiative with the Canadian Red Cross is just one part of the Alberta government’s commitment to help Jasper and its residents recover. To support Jasper’s recovery, the province has provided more than $12 million through a donation-matching initiative with the Canadian Red Cross into the Canadian Red Cross’s 2024 Alberta Wildfires Appeal to support the families and residents most affected by the wildfires.
“Alberta has worked tirelessly with the Canadian Red Cross to help Jasper and Jasperites recover from last year’s wildfire. Initiatives we have collaborated on, such as the small business supports program, have already provided support to over 270 Jasper businesses by using more than $12 million in matching funds from the Government of Alberta. We continue to stand shoulder-to-shoulder with the people of Jasper as they, and their municipality, recover.
Through the Canadian Red Cross’s 2024 Alberta Wildfires Appeal, every $1 donation made was matched with a $1 donation from Alberta’s government over the span of 30 days. The contribution from the province through this donation-matching initiative has helped fundraise more than $40 million to provide affected families, residents, businesses and not-for-profits of Jasper with a variety of supports. These supports include financial assistance, navigation supports and the small business supports program.
The province’s total assistance package of more than $170 million during and after the wildfire includes:
In addition to the assistance already provided, Alberta’s government remains ready to build $112 million worth of homes for displaced Jasperites, but the province cannot do that without land. If the federal government decides to step up and make land available, the province is ready to build the homes. Work with partners will continue to ensure that Jasper families and residents continue to have access to the supports and services they need during the community’s recovery.
Source: GlobeNewswire (MIL-OSI)
HOUSTON, Jan. 29, 2025 (GLOBE NEWSWIRE) — Superior Energy Services, Inc. (the “Company”) today announced that in connection with its previously announced plan to suspend the obligations of the Company to file periodic reports and other information pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company’s Board of Directors (the “Board”) determined the reverse stock split ratio to be 1-for-750 and the forward stock split ratio to be 750-for-1. These stock split ratios are within the ranges approved by written consent of the Company’s stockholders on December 16, 2024, pursuant to Section 228 of the Delaware General Corporation Law. The Board also determined to abandon all other stock split ratios within the ranges approved by written consent of the stockholders. As authorized by the Board, the Company will file with the State of Delaware certificates of amendment to the Company’s certificate of incorporation to effectuate the stock splits, which will become effective as of today. Following the effectiveness of the stock splits, the Company will file a Form 15 with the SEC certifying that it has fewer than 300 stockholders, which will suspend the Company’s obligations to file periodic reports and other information pursuant to the Exchange Act.
For more information regarding the going private transaction, please refer to the Schedule 13E-3 and accompanying Disclosure Statement filed with the SEC on January 6, 2025.
About Superior Energy Services
Superior Energy Services serves the drilling, completion and production-related needs of oil and gas companies through a diversified portfolio of specialized oilfield services and equipment that are used throughout the economic life cycle of oil and gas wells. In addition to operations in North America, both on land and offshore, Superior Energy Services operates in approximately 47 countries internationally. For more information, visit: www.superiorenergy.com.
Forward-Looking Statements
This press release contains, and future oral or written statements or press releases by the Company and its management may contain, certain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Generally, the words “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks”, “will” and “estimates,” variations of such words and similar expressions identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact regarding the Company’s financial position and results, financial performance, liquidity, strategic alternatives (including dispositions, acquisitions, and the timing thereof), market outlook, future capital needs, capital allocation plans, business strategies and other plans and objectives of our management for future operations and activities are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company’s management in light of its experience and prevailing circumstances on the date such statements are made. Such forward-looking statements, and the assumptions on which they are based, are inherently speculative and are subject to a number of risks and uncertainties, including but not limited to conditions in the oil and gas industry, U.S. and global market and economic conditions generally and macroeconomic conditions worldwide, (including inflation, interest rates, supply chain disruptions and capital and credit markets conditions) that could cause the Company’s actual results to differ materially from such statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of the Company, which could cause actual results to differ materially from such statements.
While the Company believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in the Company’s Form 10-K for the year ended December 31, 2023 and Form 10-Q for the quarter ended September 30, 2024 and those set forth from time to time in the Company’s other periodic filings with the Securities and Exchange Commission, which are available at www.superiorenergy.com. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION CONTACT:
Joanna Clark, Corporate Secretary
1001 Louisiana St., Suite 2900
Houston, TX 77002
Investor Relations, ir@superiorenergy.com, (713) 654-2200
US Senate News:
Source: United States Senator Jacky Rosen (D-NV)
WASHINGTON, D.C. – Today, U.S. Senator Jacky Rosen (D-NV), a member of the Senate Committee on Small Business and Entrepreneurship, and Committee Chair Joni Ernst (R-IA) introduced the Small Business Child Care Investment Act. This bipartisan legislation would increase the availability of affordable, high-quality child care for working families by allowing non-profit child care providers, that qualify as small businesses, to participate in Small Business Administration loan programs.
A recent report labeled the entire state of Nevada as a “child care desert,” and found that nearly 75 percent of children below the age of five don’t have access to a licensed child care provider. The report deemed the cost of child care a “huge concern” in Nevada and found it often to be more expensive than college tuition.
“The lack of affordable child care options in our communities hurts hardworking families at a time when they are already being squeezed by rising costs,” said Senator Rosen. “Our bipartisan bill will help increase the number of child care providers in Nevada and across the country by bolstering non-profits with access to much-needed federal resources, giving families greater access to care. I will continue working to lower costs of the everyday essentials that Nevadans rely on.”
“Finding affordable and high-quality childcare is one of the most pressing issues facing small businesses looking to hire and retain capable staff,” said Senator Ernst. “As chair of the Senate Committee on Small Business and Entrepreneurship, I’m proud to help alleviate the pressure on hardworking families, especially in rural areas. This commonsense legislation will clear the Washington red tape, expand options, and drive down costs in Iowa and across the country.”
“The Small Business Child Care Investment Act is a game-changer for families and communities across the United States. By empowering nonprofit child care providers to access critical small business loan programs, this legislation ensures they have the resources to expand, improve and sustain the high-quality child care that working families depend on. At Save the Children, we know that accessible and affordable child care is essential not only for children’s healthy development but also for economic stability. We applaud this bipartisan effort and urge swift action to make these vital investments a reality for families nationwide,” said Christy Gleason, Vice-President for Policy, Advocacy, and Campaigns at Save the Children.
“For too many parents balancing work and family responsibilities, finding reliable child care remains a significant challenge,” said Sarah Rittling, Executive Director of the First Five Years Fund. “We are thankful to Senators Rosen and Ernst for their bipartisan work on this innovative bill to support small, non-profit child care providers and expand access so more children and families can find and afford the care they need.”
“Access to quality child care providers is critical for hardworking families and a strong, stable economy. Yet across the country, providers are struggling to deliver care on razor thin margins and with limited resources. Increasing access to capital by allowing these nonprofit child care businesses to utilize Small Business Administration loans will support providers looking to enter the child care space, expand services, and increase quality. These resources can be especially crucial in rural communities where access to child care fails to meet the needs of many working families. We applaud Sens. Rosen (D-NV) and Ernst (R-IA) for their leadership and making child care more accessible with the introduction of the Small Business Childcare Investment Act,” said Michele Stockwell, President of the Bipartisan Policy Center Action.
“United Way of Southern Nevada is a long-standing partner of Nevada Ready! State Pre-K, a program enabling hundreds of children from qualifying families to attend preschool at no cost. We have seen firsthand the positive impact that affordable high-quality care and education options have provided not only for our children, but entire families,” said Julie Houchins, Senior Director of Early Education at the United Way of Southern Nevada. “The Small Business Child Care Investment Act allows nonprofit childcare and early education providers to grow their capacity so they can meet the needs of working families in Nevada. We are very grateful for this bipartisan effort that will help local children, parents, and businesses alike.”
The bipartisan Small Business Child Care Investment Act would:
Ensure that qualified non-profit providers have equal access to key SBA loan options that allow providers to invest in and expand their operations, which creates local jobs and gives working families more options for affordable and quality child care;
Ensure non-profit providers can access the larger and more flexible loan programs like 7(a) and 504 that can be used for real estate, construction, remodeling, and other expenses critical to maintaining and expanding high-quality child care operations.
Senator Rosen continues working to lower child care costs for Nevada’s hardworking families. Last year, she joined a bipartisan bill to provide child care services for police officers and support law enforcement families. During a confirmation hearing in the U.S. Senate Armed Services Committee, Senator Rosen secured a commitment from General David Allvin, Air Force Chief of Staff, to cut red tape in a program designed to make child care available for military families like Airmen at Nellis and Creech Air Force Bases who work overnight shifts. Additionally, Senator Rosen joined in helping to introduce the Child Care for Working Families Act, legislation that would help lower child care costs for an average American family to no more than $10-a-day.
Source: GlobeNewswire (MIL-OSI)
BOSTON, Jan. 29, 2025 (GLOBE NEWSWIRE) — Plymouth Rock Assurance has named Ethan Tarby as President and Chief Executive Officer of Plymouth Rock Assurance Corporation. Tarby had been serving as interim President and CEO since June 2024. He will lead Plymouth Rock’s Independent Agency Group, which manages more than $1.3 billion of personal auto, commercial auto, motorcycle and umbrella liability premium. Tarby will report to Andrew McElwee, President and Chief Operating Officer of The Plymouth Rock Company.
Tarby joined Plymouth Rock in March 2021 as Chief Marketing Officer of the Independent Agency Group and has taken on increasing levels of responsibility within the organization over the past three-plus years. As CMO, Tarby was responsible for marketing and distribution in the independent agency channel across the six states in which Plymouth Rock operates.
“We conducted a thorough executive search and believe that Ethan is the right person to lead Plymouth Rock’s Independent Agency Group,” said Jim Stone, Founder, Chairman and Chief Executive Officer of The Plymouth Rock Company. “His deep understanding of the business, coupled with his strategic vision and collaborative leadership, has earned the trust and respect of the entire organization.”
“It’s a privilege to lead Plymouth Rock’s Independent Agency Group at this exciting moment in time,” said Tarby. “We have a talented team and our focus will remain on profitably growing our business as a strong personal lines carrier. We want to be preferred by our independent agent partners and trusted by our customers, and I am thrilled to continue in this role towards those goals.”
Tarby is a seasoned insurance executive with more than 20 years of industry experience across diverse responsibilities, including distribution management and analytics in multiple channels, product management, corporate finance, operational excellence, and innovation and growth strategy. He holds degrees from Williams College and Duke University.
This news closely follows the appointment of Greg Kalinsky as President and Chief Executive Officer of the Plymouth Rock Management Company of New Jersey. Kalinsky will oversee Plymouth Rock’s direct-to-consumer auto business as the leader of the company’s Direct Auto Group.
About Plymouth Rock
Plymouth Rock was established to offer its customers a higher level of service and a more innovative set of products and features than they would expect from an insurance company. Plymouth Rock’s innovative approach puts customers’ convenience and satisfaction first, giving them the choice to do business the way they want – online, with a mobile app, by phone or by contacting their Plymouth Rock agent. Customers can chat, text or email to get answers quickly and easily. Plymouth Rock Assurance® and Plymouth Rock® are brand names and service marks used by separate underwriting, managed insurance and management companies that offer property and casualty insurance in multiple states. Taken together, the companies write and manage more than $2.3 billion in auto and home insurance premiums across Connecticut, Massachusetts, New Hampshire, New Jersey, New York and Pennsylvania. Each underwriting and managed insurance company is a separate legal entity that is financially responsible only for its own insurance products. You can learn more about us by visiting plymouthrock.com.
Media Contact:
V2 Communications on behalf of Plymouth Rock
plymouthrock@v2comms.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/37f07d67-36a0-4a40-8f69-57b88ed12bfd
Source: United Kingdom – Executive Government & Departments 3
Defence Secretary John Healey addressed the ADS Annual Dinner on 28 January 2025.
Good evening. Let me begin by thanking Kevin and his team at ADS for hosting this splendid event and for their work in promoting an industry that is the foundation for our way of life.
ADS is going from strength to strength, with a double digit increase in your membership last year.
You represent a commitment to innovation and excellence that are hallmarks of the British business spirit.
Yours is an industry which proves that we are still – at heart – a nation of makers and inventors. I know recent times haven’t been easy. And as Defence Secretary, I am grateful to you all.
This event brings us together from across the UK, across the industry and across the political divide.
I welcome this because defence policy and procurement commitments reach beyond political cycles.
I believe I’m the first Defence Secretary who’s spoken at this dinner, and tonight, you have two for the price of one with me as the warmup act for Penny Mourdant’s after dinner speech.
Penny is someone with a lifelong connection and commitment to our armed forces, who rose to become the first woman ever to hold the role of Defence Secretary.
I’ve had the privilege of six months in the role, part of a government taking on profound challenges in our economy, our public finances and our national security.
Yet, as a new government, we’ve already:
The point I want to make is that this is a new government that is delivering for defence.
Something which I was able to underline last Friday at Rolls Royce, announcing a major new contract over 8 years, which will boost British jobs, business and national security.
There’s incredible work being done there in Derby, by an incredible team, some of whom are here this evening.
It’s a big investment, but behind the numbers are 200 apprentices a year who now feel they have a future.
And suppliers – 92 per cent of which are British based – who now feel like have certainty.
What really struck me – and it happens every time I visit a defence site – is the deep sense of pride and purpose.
Defence workers are right to feel that way. Their efforts keep us all safe.
And as an industry, you also invest huge sums in research and development. One of the great strengths of the defence industry is that you force us to reach for the future.
Down the years, you’ve been responsible for some of the most significant innovations in history. Designed for times of war but which often produce lasting benefits for wider society well beyond the battlefield.
As a nation, we’re good – and rightly so – at taking pride in the professionalism of our soldiers, sailors and aviators.
But we know that that they are only as effective as the industry which equips them.
We must be better at celebrating the role of the coders, programmers, scientists and engineers who provide our forces with the tools they need to protect us.
It’s why I want us to not only change the way we work with the defence industry, but also change the way we see the defence industry.
On the way we work with industry, I hope the last few months serve as a glimpse of type of partnership we want to forge.
From industry involvement – for the first time ever – in our war gaming, to the creation of the new Defence Industrial Joint Council.
And on the way we see industry, we know we have much to do.
Right now, there’s growing security concerns for defence firms at university careers, you attend to offer young people a route to a better life.
You’re facing harassment and intimidation, forced to cancel events on campus. This is wrong.
This attitude takes for granted the privileged position we enjoy in Britain – to live in freedom and security… security our defence industry guarantees.
So, today – alongside the Business and Education Secretaries – I’ve written to Universities UK for assurances about your safety on campuses.
We’re also seeing defence firms ranked alongside tobacco and gambling in Environmental, Social and Governance audits. And pension funds divest from you.
I have no doubt the intentions are well-meaning. But they’re fundamentally flawed.
We don’t stop wars by boycotting our defence industry.
We stop wars by backing it.
Let’s not forget that national security is a pre-condition for economic security, investor confidence and social stability.
I will always be a fierce advocate for you in the Department, to wider government, to the City, to the British public and to whoever needs to hear it.
My challenge to you – as an industry – is to be louder and confident about your role.
As my friend – Jonny Reynolds– said to the President’s Reception earlier:
“You are exceptional in your importance… in helping to safeguard our national security and our way of life.
“But you are also exceptional in your contribution to our economy. Nearly half a million well paid jobs are directly owed to aerospace, defence, security and space sectors.”
To meet the challenges of this new era of threats, you’ve seen the direction we want to take with our Defence Industrial Strategy Statement of Intent.
And let me thank everyone who’s shared their insights so far in submissions to both our industrial strategy, and SDR consultations.
I know – for some – our Statement of Intent may have been met with a degree of scepticism. You’ve been here before… I get that…
New government, new ideas.
But old habits die hard and entrenched interests dig in.
Previous industrial strategies have produced policies – many of them good – but there wasn’t the plan, the structures and the relentless attention to reform needed to make change happen.
So, why will this be different?
First, it has to be different.
The war in Ukraine confronts us with the deep truth that when a country faces conflict or is forced to fight, its armed forces are only as strong as the industry which stands behind them…
That innovation and production capacity is a major part of our nation’s – and our alliance’s – deterrence.
And that industry’s constant purpose is to give the nation’s war fighters the advantage over our adversaries.
The last Defence Industrial Strategy was published in 2021, a year before Putin shattered the peace in Europe.
Ours will hardwire in these lessons and so too will the Strategic Defence Review.
Second, I’m driving deep reform to defence.
It doesn’t make news headlines, but it’s an essential foundation for implementing both the SDR and Defence Industrial Strategy.
For industry, it means you’ll be brought in earlier to the conversation on how we should fight…
We’ll ask you how you can help solve our problems rather than giving you a requirement to deliver.
You’ll also see the creation of a new role, the National Armaments Director, soon-to-be one of the most senior roles in UK Defence, sitting alongside the Chief of the Defence Staff and Permanent Secretary.
Their responsibilities will include:
Third, defence is part of our bigger British drive for growth – the government’s number one mission.
The Chancellor is speaking tomorrow about how we are going to meet this challenge.
But the message I want to reinforce is that defence is an engine for driving economic growth.
Fourth, we’ve proved we can do it by supporting Ukraine through Taskforce KINDRED and HIRST.
From the onset, when it took 287 days after Putin invaded to sign contracts for new NLAWs…
… to today, when we’ve created industrial bases for new capabilities – virtually from scratch…
Supplying – at scale – one of the most effective drone systems in Ukraine.
Restarted artillery barrel manufacturing in the UK to deliver hundreds to the front line.
Enhancing our own capabilities through Stormer and Starstreak…while Gravehawk, Snapper and Wasp have all been developed with breathtaking speed.
I don’t just want this to be the government’s new Defence Industrial Strategy, it needs to be a national endeavour… private and public… SMEs and primes… innovators and educators… trade associations and trade unions…
All creating a defence industry which is better and more integrated…
One that can keep our armed forces equipped… and innovating at wartime pace, ahead of our adversaries.
The Shadow Defence Secretary is familiar with the challenges.
I know he will play his part in holding us to account.
And I trust he – and his Party – will play their part in backing reforms that strengthen our country’s defence and its defence industry.
This is new era of threats, demands a new era for defence.
Change is essential, not optional.
Our success rests on a new partnership with innovators, investors and industry.
Our government is determined to meet the challenge, determined to deliver for defence.
Together, we will make Britain secure at home and strong abroad.
Thank you – enjoy your evening and I look forward to working with you over the coming years.
Published 29 January 2025
Source: Office of United States Attorneys
Members of the Charged Conspiracy Opened Bank Accounts for Over 1,000 Fake Businesses to Receive and Launder the Proceeds of Fraudulent Schemes, Causing Actual Losses of Over $60 Million and Intended Losses of Over $150 Million
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, and Patrick J. Freaney, the Special Agent in Charge of the New York Field Office of the United States Secret Service (“USSS”), announced today that ERICK JASON VICTORIA-BRTIO was extradited from the Dominican Republic and will appear in a federal courtroom in Manhattan later today. VICTORIA-BRITO is charged in a two-count Indictment with conspiring to commit bank fraud and money laundering from December 2017 through November 2022. In connection with the scheme, VICTORIA-BRITO and other members of the charged conspiracy registered over 1,000 fake businesses, used those fake businesses to open bank accounts to receive money stolen through business e-mail compromise schemes, and then laundered that money. Members of the conspiracy caused over $60 million in actual losses and attempted to steal over $150 million.
U.S. Attorney Danielle R. Sassoon said: “As we allege, Erick Jason Victoria-Brito and his co-conspirators ran an international bank fraud and money laundering scheme designed to help carry out business email compromise scams. These scams cause significant harm to businesses, nonprofits, and even local governments. As the successful extradition of Erick Jason Victoria-Brito shows, this Office and our partners will not rest until every individual responsible is held accountable.”
USSS Special Agent in Charge Patrick J. Freaney said: “This alleged scheme rained down financial ruin upon unwitting businesses and individuals. While the suspects operated with impunity across the nation and beyond, the U.S. Secret Service and its partners remained steadfast in building a strong case — no matter where the evidence took them. I commend the investigators and prosecutors for their commitment to disrupting this type of insidious fraud on behalf of all those victimized by it.”
As alleged in the Indictment, Superseding Indictments, and court filings:[1]
From at least December 2017 through at least November 2022, a group of individuals perpetrated a massive, international bank-fraud and money-laundering scheme (the “Fraud and Money Laundering Scheme”) designed to obtain and launder the proceeds of business e-mail compromise schemes. In a business email compromise scheme, a scheme member fraudulently induces a company or individual to send money to a bank account controlled by that scheme member or the scheme member’s compatriots.
The Fraud and Money Laundering Scheme operated across borders and preyed on businesses large and small. Between 2020 and 2021 alone, participants in the scheme stole tens of millions of dollars, targeting victims that included a major American sports organization, a publicly traded healthcare company, and a prominent international nonprofit organization, along with multiple city governments, law firms, construction companies, and investment funds. Participants in the Fraud and Money Laundering Scheme registered over 1,000 fake businesses, then used those businesses to open bank accounts. Those bank accounts then received the proceeds of business email compromise schemes. Once the stolen funds reached those fraudulent bank accounts, participants in the Fraud and Money Laundering Scheme worked quickly to take advantage of the international banking system by either withdrawing the money or helping to launder it by wiring it to overseas banks, thereby preventing victims from recouping their losses. The co-conspirators accomplished that primarily by wiring stolen money to banks in China, outside the reach of American banks. During the course of the charged conduct, members of the conspiracy participated in inflicting over $60 million in actual losses and attempted to inflict losses of over $150 million.
* * *
VICTORIA-BRITO, 30, of Hollywood, Florida, is charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Sassoon praised the outstanding investigative work of the New York City Police Department, USSS, U.S. Postal Inspection Service, and Homeland Security Investigations. Ms. Sassoon further thanked the U.S. Treasury Inspector General for Tax Administration, the Federal Bureau of Investigation, and Internal Revenue Service-Criminal Investigations for their assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Thomas S. Burnett and Amanda C. Weingarten are in charge of the prosecution.
The charges contained in the Indictment and Superseding Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Superseding Indictment, and the description of the Indictment and Superseding Indictment set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
Source: GlobeNewswire (MIL-OSI)
JESSUP, Md., Jan. 29, 2025 (GLOBE NEWSWIRE) — AirBoss Defense Group (ADG), the global leader in survivability for the assured mobility and chemical, biological, radiological, nuclear (CBRN) communities, is announcing that the U.S. government has selected the ADG Molded AirBoss Lightweight Overboot (MALO) for its CBRN overboot program contract. This is a three (3) year contract expected to be worth up to an aggregate amount of $82.3 million.
ADG has supplied overboots to the United States for over 20 years. The company has held the current contract for this requirement for many years and is proud to have been again selected as the supplier of choice for this critical personal protective equipment (PPE) item for American warfighters. CBRN overboots are in continuous demand by the Department of Defense and the MALO was designed to provide superior protection against chemical and biological threats while providing optimal fit and comfort. The MALO is the solution of choice and is the incumbent program overboot in over sixty countries, with over 6.1 million pair sold to date.
“Our company is pleased to continue providing unique protective and survivability solutions to support American warfighters,” said John Johns, President of ADG. “The MALO is a key component of CBRN protection systems procured by the Department of Defense and we look forward to providing this protective gear to ensure the safety of our warfighters in critical mission environments and challenging conditions.”
ADG has supported the CBRN and PPE needs of the Federal Government for more than two decades and continues to actively assist the Department of Defense to build a stable, secure, and resilient supply chain for high-quality PPE.
About AirBoss Defense Group (ADG)
ADG is a growing survivability company that provides military, law enforcement, medical providers, industrial providers and first responders with a diverse portfolio of protective equipment that spans the entire survivability spectrum. AirBoss Defense, an ADG brand, is a recognized world leader in rapid deployment negative pressure isolation shelters, CBRNE protective equipment, medical protective equipment, and personal respiratory protective products. AirBoss Defense’s emergency response and personal protective equipment is utilized by the Department of Defense, U.S. Department of State, FEMA, CDC, other government agencies and private companies.
For more information, please visit www.adg.com.
FORWARD LOOKING INFORMATION DISCLAIMER
Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future developments or ADG’ future performance, constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws, and can generally be identified by words such as “will”, “may”, “could” “expects”, “believes”, “anticipates”, “forecasts”, “plans”, “intends”, “should” or similar expressions. These statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events and performance.
Statements containing forward-looking information are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. ADG cautions that such forward-looking information involves known and unknown contingencies, uncertainties and other risks that may cause ADG’ actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by the forward-looking information. Numerous factors could cause actual results to differ materially from those in the forward-looking information, including without limitation: impact of general economic conditions, notably including its impact on demand for rubber solutions and products; dependence on key customers; global defense budgets, notably in the Company’s target markets, and success of the Company in obtaining new or extended defense contracts; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; ADG’ ability to maintain existing customers or develop new customers in light of increased competition; ADG’ ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof; ADG’ ability to successfully develop and execute effective business strategies; changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws; changes in trade policies or the imposition of new tariffs; current and future litigation; ability to obtain financing on acceptable terms and ability to satisfy the covenants set forth in such financing arrangements; environmental damage and non-compliance with environmental laws and regulations; impact of global health situations; potential product liability and warranty claims and equipment malfunction. There is increased uncertainty associated with future operating assumptions and expectations as compared to prior periods. This list is not exhaustive of the factors that may affect any of ADG’ forward-looking information.
All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking information. All subsequent written and oral forward-looking information attributable to ADG or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward-looking information contained herein is made as of the date of this press release and, whether as a result of new information, future events or otherwise, ADG disclaims any intent or obligation to update publicly this forward-looking information except as required by applicable laws. Risks and uncertainties about ADG’ business are more fully discussed under the heading “Risk Factors” in AirBoss of America Corp.’s (“AirBoss”) recent Annual Information Form and are otherwise disclosed in AirBoss’ filings with securities regulatory authorities which are available on SEDAR+ at www.sedarplus.com.
Contact: David Costello
Tel: 617.875.2492
Email: david@risingtidemhd.com
US Senate News:
Source: United States Senator Ron Wyden (D-Ore)
January 29, 2025
Washington, D.C. – Oregon’s U.S. Senators Jeff Merkley and Ron Wyden today issued the following statements in response to a federal judge blocking the Trump Administration’s executive order immediately stopping all federal loans and grants:
“The attack on these programs that allow families to get on their feet and thrive is the great betrayal coming from President Trump, who campaigned on helping working families, said Merkley, Ranking Member of the Senate Budget Committee and a senior member of the Senate Appropriations Committee. “In addition, Trump’s order cutting federal funds will have a huge impact on critical infrastructure projects in Oregon—like the Hood River-White Salmon and I-5 bridge replacement projects and the Port of Coos Bay’s transformative container port project—as well as funding to mitigate and fight wildfires, fulfill our commitments to Tribal communities, ensure clean air and water, and protect our public lands and wildlife. During the chaos caused by Trump’s constitutional crisis, Oregonians called my office after being shut out of their federal reimbursement systems and cut off from funding for their work to provide affordable housing, Head Start programs, and health care at federally qualified health centers. I’ll keep fighting to block these illegal cuts.”
“Chaos is not leadership. Ransacking resources from Oregonians counting on federal support for local law enforcement, schools, small businesses, firefighters, veterans, and more hurts each and every community I am honored to represent,” said Wyden, Ranking Member of the Senate Finance Committee. “Donald Trump ran on lowering prices for families, and instead he’s intentionally driving the economy into the ground, forcing all Americans who aren’t Elon Musk to accept a lower standard of living to help he and his buddies get richer and richer. Legal or not, he doesn’t care. This illegal unconstitutional act is now in a court of law, but it’s already playing out in the court of opinion with Oregonians voicing their outrage. The American people must keep the pressure on until every community counting on this funding is assured they will receive it just as Congress intended.”
According to the Oregon State Legislature, about 30% of Oregon’s budget is supported by federal aid, which is critical for supporting local communities. If allowed to go into effect, the directives in President Trump’s executive order could block funding in Oregon for:
PUBLIC SAFETY: Grants for law enforcement departments would cease to go out the door, undermining public safety in Oregon.
FIREFIGHTING: Grants to support firefighters would be halted—this includes grants that help states and localities purchase essential firefighting equipment.
HEALTH SERVICES: Over $106 million in federal funding for community health centers that provide health care for people across Oregon would be at risk, creating chaos for patients trying to get their prescriptions, a regular checkup, and more.
TRIBES: Funding to Tribes for basic government services like health care, public safety, programs, Tribal schools, and food assistance would be halted.
HEAD START: Funding for Head Start programs that provide comprehensive early childhood education for almost 10,000 children in Oregon would be at risk. Teachers and staff would not get paid, and programs may not be able to stay open.
COMBATTING FENTANYL CRISIS: Funding for communities to address the substance use disorder crisis and combat the fentanyl crisis would be cut off.
CHILD CARE: Child care programs in Oregon and across the country would be at risk to accessing the funding they rely on to keep their doors open.
K-12 SCHOOLS: Federal funding for our K-12 schools would be halted, preventing school districts in Oregon from accessing key formula grant funding including Title I and nearly $160 million in IDEA Grants (which help children with disabilities). This would pose tremendous financial burdens on schools in the middle of the school year.
INFRASTRUCTURE PROJECTS: Federally-funded transportation projects in Oregon and across the country—roads, bridges, public transit, and more—would be halted, including projects already under construction.
EMERGENCY PREPAREDNESS: Critical preparedness and response capability funding used to prepare for disasters, public health emergencies, and chemical, biological, radiological, or nuclear events would be frozen.
DISASTER RELIEF: Public assistance and hazard mitigation grants from the Disaster Relief Fund to state, Tribal, territorial, and local governments and non-profits to help communities quickly respond to, recover from, and prepare for major disasters would be halted—right as so many communities are struggling after severe natural disasters.
Source: The Conversation – USA – By Paul F. Clark, Professor of Labor and Employment Relations, Penn State
Whole Foods workers at the Philadelphia flagship store in the city’s Art Museum area voted to unionize on Jan. 27, 2025. They are the first store in the Amazon-owned grocery chain to do so.
Paul Clark, a professor of labor and employment relations at Penn State University, talked to Kate Kilpatrick, The Conversation U.S. Philadelphia editor, about why this is happening – and why in Philly.
The Whole Foods workers in Philadelphia voted 130-100 in favor of unionizing. What do we know about their grievances?
From what I understand, these workers have felt that compensation, benefits and work conditions were not what they should be. Some are long-standing employees and say they struggle to afford their basic necessities.
Why did the union drive effort succeed now, and in Philly?
In the last five years, there has been a surge in union organizing. There are a number of reasons for this. First is the labor market. Low unemployment emboldens workers to take the risk of organizing a union. If workers feel their employer can’t replace them or that they can easily get a similar job, they are less fearful of angering the employer by trying to organize.
The second reason is that the Biden administration was a labor-friendly administration – perhaps the most in history. The U.S. president appoints a majority of members to the National Labor Relations Board, which interprets and enforces the labor law that governs organizing. Under Biden, the NLRB regularly issued decisions that provided greater protection to workers and held employers accountable when they violated workers’ rights. During Republican administrations, the board’s decisions are generally pro-business and provide less protection to workers. So workers had the wind at their back in that regard.
Also recent polling shows that 70% of Americans approve of unions, compared with less than half of Americans just 15 years ago. The generally favorable view of unions creates a more supportive environment for organizing.
And the last factor is that Generation Z, the youngest group of workers, clearly wants more out of their work and employment than previous generations. So we see a lot of young workers across the country organizing at Starbucks, Trader Joe’s, Apple and now at Whole Foods and other stores.
Why Philadelphia? Philadelphia is a relatively strong union town. The percentage of the workforce that is represented by a union is higher in Philadelphia than in most cities and areas of the country. So when workers express interest in organizing in Philadelphia they get a lot of support. Other unions might turn out members for their rallies, pressure the company to not oppose the organizing drive and offer other aid and assistance.
The starting wage at the Philadelphia Whole Foods store is US$16 an hour. Is that considered low when the city’s minimum wage is just $7.25 an hour?
The minimum wage in Philadelphia is $7.25 because that is the federal minimum wage. States can institute a higher minimum wage if they choose to, but Pennsylvania is one of the few Northeast states that hasn’t adopted a minimum wage higher than the federal minimum. The minimum wages in New Jersey, New York and Massachusetts, for example, are $15 or above.
But the minimum wage in Pennsylvania is almost irrelevant because of today’s labor market. Unemployment is low, and many employers have to offer significantly more than the minimum wage to get workers.
And the minimum wage is supposed to be a starting wage for workers with little experience or seniority. What workers want is a living wage. According to the MIT Living Wage Calculator, a single person in Philadelphia needs to earn around $24 per hour to cover the basic costs of living. And Whole Foods is a profitable business. It’s part of Amazon, one of the most profitable, largest companies in the world. I think workers at these companies believe that they play an important role in generating those profits because of the work they do. And they think they should get a fair share of those profits.
How might the Whole Foods workers expect the company to fight back?
When employees win an organizing election as the Whole Food workers have, they have won a battle but not the war. The purpose of forming a union is to improve wages and benefits and working conditions, and you do that by negotiating a contract with the company. That is the next step in the process. But the law only requires employers to bargain with employees – to meet at reasonable times and exchange proposals. It doesn’t compel them to agree to anything.
The typical strategy of companies that aggressively oppose their workers having a union is to drag their feet in bargaining and not sign a contract. That is technically illegal, but labor law in the U.S. is relatively weak, and with good legal advice you can drag out bargaining for a very long time.
We’ve seen this with the Starbucks campaign. The first Starbucks store unionized in 2021. Over 540 stores have organized since then. And Starbucks workers at those stores still do not have a contract.
Could the new Trump administration have any impact on how this plays out in Philly?
The fact that the Trump administration has taken over gives companies more confidence that the standard delay strategy will work.
On Jan. 28, 2025, President Donald Trump fired Jennifer Abruzzo, the general counsel of the NLRB. The general counsel is the official at the board who basically enforces the National Labor Relations Act. Abruzzo was very aggressive in holding employers accountable if they violated the act and in protecting the rights of workers who tried to organize.
Trump’s approach to labor law in his first four years in office was at the other extreme. He appointed as general counsel Peter Robb, who was seen as far less aggressive in protecting workers’ rights and his interpretations of the law were much more pro-business.
Under the Biden administration, if a company was coming to the bargaining table month after month and not agreeing to anything, the NLRB would eventually step in and cite the employer for not bargaining in good faith. The NLRB could find the employer guilty of unfair labor practices and genuinely put pressure on it to bargain a contract.
Based on the board’s actions during the first Trump administration, the board in the next few years will be more likely to allow companies to delay and delay in reaching a contract.
What leverage do the Whole Foods employees have?
They can go on strike. But Amazon has the resources to put up with a strike at one Whole Foods store forever.
Other Whole Foods stores may be considering union drives. The more stores that organize, the more momentum the Philadelphia store will have. But for now, these workers in Philly are going to have their work cut out for them.
That said, they won’t be alone. The Whole Foods workers organized with the UFCW Local 1776, which is basically a statewide union that’s been around for decades. It has a lot of resources and experienced and knowledgeable leaders, plus the resources of the national UFCW. So it’s going to lean into this fight, and these workers will also have a lot of support from the rest of the labor community in Philadelphia.
Earlier this month, three Congressional representatives from Pennsylvania wrote a letter to Jason Buechel, the Whole Foods CEO, and to Jeff Bezos, the Amazon founder, that expressed their concerns about efforts to suppress the union drive. Is that support typical?
It’s not unusual. But there is no legal basis for elected officials to intervene in a labor-management dispute. I’d put that under the heading of community support.
You have a lot of progressive elected officials in Philadelphia who are supportive of unions, and that’s true in Pennsylvania right up to the governor.
Paul F. Clark does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
– ref. Philly Whole Foods store becomes first to unionize – a labor expert explains what’s next and how Trump could stall workers’ efforts – https://theconversation.com/philly-whole-foods-store-becomes-first-to-unionize-a-labor-expert-explains-whats-next-and-how-trump-could-stall-workers-efforts-248513
Source: IMF – News in Russian
January 29, 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: An International Monetary Fund mission, led by Magnus Saxegaard, and comprising Christian Bogmans, Shinya Kotera, Yen Mooi, and Jonathan Pampolina conducted discussions for the 2025 Article IV consultation with the Slovak Republic virtually during December 4-13, 2024, and in Bratislava, Slovakia, during January 15-28, 2025. Sumiko Ogawa, Financial Sector Assessment Program (FSAP) mission chief, joined the concluding meeting. At the conclusion of the visit, the mission issued the following statement:
Slovakia, like much of the EU, faces headwinds related to geoeconomic fragmentation, high energy costs, and demographic change. Growth has held up in recent years, but at the cost of a much-increased fiscal deficit. Steadfast implementation of the authorities’ ambitious 4-year consolidation plan is needed to reverse the upward trajectory in public debt, alongside policies to strengthen financial resilience and structural reforms to bolster medium-term growth, including through efforts to strengthen governance and reduce vulnerability to corruption.
Economic Developments, Outlook, and Risks
The Slovak economy is recovering. The economy slowed sharply in 2022-23, but growth is estimated to have accelerated to 2.1 percent in 2024, outpacing that in the euro area. Private consumption was the main driver fueled by recovering real wages, the extension of household energy support, and more generous pensions. Meanwhile, an increase in public consumption partially offset a slowdown in EU-funded public investments. While inflation has declined from record-highs in 2023, it increased in 2024H2 due to higher global food price inflation. Core inflation is higher than in the euro area, driven by a tight labor market and strong nominal wage growth.
Economic growth is projected to moderate to 1.9 percent in 2025, before rising to 2.1 percent in 2026. The fiscal consolidation in 2025 will lower growth directly by slowing government spending, and indirectly as higher taxes put upward pressure on prices and dampen private consumption, though the effect will be partially mitigated by the one-year extension of household energy support and strong EU-funded public investments. Meanwhile external demand is expected to remain subdued. For 2026, higher growth in trading partners and increased capacity in the automotive sector is expected to boost exports. Inflation is projected to rise temporarily to 4.0 percent in 2025 and moderate to 3.2 percent in 2026. Adverse demographic trends and lower productivity growth imply that Slovakia’s medium-term growth, as projected by staff, is expected to be significantly lower than its pre-pandemic average, and below IMF forecasts of medium-term growth in other Central, Eastern, and Southeastern Europe (CESEE) countries with comparable income levels.
Risks to growth are tilted to the downside while risks to inflation are broadly balanced. Near term risks include a global slowdown or intensifying trade policy uncertainty which would weigh on growth and exert downward pressure on inflation. Domestically, slippages in fiscal consolidation could increase sovereign spreads and tighten financial conditions. A lack of political consensus on structural reforms and concerns about institutional quality could deter private investment and slow the disbursement of EU funds that have been critical in supporting public investment. A correction in real estate prices combined with an economic downturn could trigger losses for financial institutions. Meanwhile, continued strong nominal wage growth could undermine competitiveness and keep inflation elevated.
Fiscal Policy
Slovakia’s fiscal outlook is challenging. The fiscal deficit is projected to have increased to 5.7 percent in 2024 from 5.2 percent in 2023 due to a combination of revenue easing and higher spending that more than offset the 0.6 percent of GDP in net consolidation measures in the 2024 budget. This increase follows the 3.6 percentage points of GDP widening of the fiscal deficit in 2023. While the change in government in October 2023 meant time to finalize the 2024 budget was short, it is clear ex-post that robust growth combined with significant medium-term fiscal challenges would have warranted a tighter fiscal stance in 2024.
The mission welcomes the authorities’ ambitious fiscal consolidation targets for 2025-28, which is commensurate with the scale of Slovakia’s fiscal challenges.
The consolidation measures for 2025 are a step in the right direction. Several of the measures are welcome and will help reduce the deficit on a structural basis, including the increase in the basic VAT rate, and better targeting of child benefits. However, the increase in the number of items subject to reduced VAT rates deprives the government of much needed revenue, while the financial transactions tax (FTT) could weaken financial intermediation and increase incentives for informality.
The measures to lower Slovakia’s fiscal deficit closer to 2 percent of GDP by 2028 should be consistent with Slovakia’s long-term growth and climate objectives, while protecting the most vulnerable in society. While there is no definitive evidence that reducing spending is more effective than increasing revenues in terms of economic efficiency or equity, prioritizing the rationalization of expenditures moving forward would result in a more balanced fiscal consolidation, given the reliance on revenue-based measures thus far.
Safeguarding Slovakia’s strong fiscal framework is essential for the credibility of the consolidation effort. Aligning Slovakia’s national expenditure ceiling framework with the new EU fiscal rules avoids inconsistencies and streamlines the budget process but continued focus on the long-term fiscal outlook (beyond the horizon used for the EU fiscal framework) remains useful given Slovakia’s medium-term fiscal challenges. Slovakia’s strong and independent Council for Budgetary Responsibility can help by monitoring the impact of government policies on the long-term sustainability of public finances. Lastly, the mission recommends reforming the debt brake before it comes into effect in 2026, to avoid the risk of a disruptive fiscal consolidation.
The mission welcomes the government’s objective to increase absorption of EU funds. The Slovak government is working with the OECD and the European Commission to identify concrete measures to increase absorption. In this regard, there is a need to strengthen project management capacity, especially at the municipal level, while the preparation of a national investment plan could help guide the timely selection of investment projects.
Financial Sector Policy
The 2024 Financial Sector Assessment Program (FSAP)—an in-depth review of the financial sector—assessed the banking sector to be resilient against severe shocks, reflecting a healthy level of buffers and profitability. The residential real estate market remains a source of vulnerability. In particular, tighter financial conditions, an economic slowdown, and a decline in still-elevated house prices could put pressure on households’ repayment capacity and increase the riskiness of banks’ mortgage portfolios. Also, risks remain elevated in the office segment of the commercial real estate (CRE) market while banks with large exposures to firms facing geopolitical risks could be vulnerable to credit losses. That said, solvency stress tests indicate that banks have sufficient capital to withstand severe macro-financial shocks. Likewise, liquidity stress tests indicate that the banking system as a whole is resilient to funding and market liquidity shocks.
The current macroprudential stance is broadly appropriate, but the policy framework could be further developed over the medium term to help attenuate cyclical and structural risks.
Financial resilience could be bolstered by strengthening the supervision of less significant institutions (LSIs) as well as the crisis management framework.
Efforts to strengthen the AML/CFT framework should continue. In particular, the authorities should review the criteria for the application of ML/TF sanctions, strengthen coordination between the NBS and Financial Intelligence Unit, and introduce mechanisms to verify beneficial ownership information and sanction the submission of inaccurate information.
Structural Policy
Slovakia needs structural reforms to diversify its economy, enhance resilience to global shocks and sustain productivity growth. The success of the automotive sector has led to decades of strong growth but exposed Slovakia to global trends related to the green transition and automation. To improve resilience and sustain productivity growth the authorities should intensify efforts to promote innovation and technology adoption. In this context, the mission welcomes the increase in direct government R&D spending, but further efforts are needed to stimulate business R&D including in small firms and startups that are not yet profitable. At the same time, deepening the European single market would allow innovative firms to leverage economies of scale. Finally, advancing the capital market union would facilitate cross-border flows of capital including equity financing and venture capital, which is critical for supporting startups, particularly in countries with less-developed capital markets.
The automotive sector is facing headwinds related to the unfolding green transition and rapid rise of electronic vehicle (EV) production in other markets. To address these challenges, the authorities should encourage innovation across the entire domestic EV production supply chain, promote efforts to diversify the economy, and enhance Active Labor Market Policies (ALMPs) to facilitate the movement of workers across sectors.
The challenges of an aging population require policies to increase the labor force. Flexible working arrangements, shortening the 3-year long maximum parental leave period, and improved child and elderly care could increase female participation, while tax credits and restrictions on early retirement could raise labor force participation among the elderly. The recent easing of national visa rules for foreign workers in professions with shortages could boost migrant inflows, but further efforts are needed to integrate and retain migrants, including by scaling up language training and streamlining certification recognition. Increased focus on vocational education and training would help bring down Slovakia’s high youth unemployment.
Maintaining a favorable investment climate, strengthening governance, and reducing vulnerability to corruption will help lift the economy’s growth potential.
While greenhouse gas emissions have fallen by 50 percent since 1990, further efforts are needed to cut emissions by 55 percent by 2030 and to reach net-zero by 2050. Slovakia should move expeditiously to fully implement the ETS II scheme for road transport and buildings and could consider gradually raising environmental levies in these sectors until the scheme becomes operational in 2027. The authorities should continue exploring options to replace two coal-fired blast furnaces in the steel industry and phase out fossil fuel subsidies. Also, supporting environmental R&D and green technology would support mitigation efforts and economic diversification. Lastly, a more integrated energy market in Europe would encourage investment in renewables and enhance energy security and reduce energy prices.
The IMF team thanks the authorities and other interlocutors for their generous hospitality and constructive dialogue.
| Table 1. Slovakia: Selected Economic Indicators, 2020–2030 |
PRESS OFFICER: Boris Balabanov
Phone: +1 202 623-7100Email: MEDIA@IMF.org
https://www.imf.org/en/News/Articles/2025/01/29/mcs-012925-slovak-republic-staff-concluding-statement-of-the-2025-article-iv-mission
Source: Government of Canada regional news
Cranbrook Archives, Museum and Landmark Society (CAMAL), the new operator of Fort Steele Heritage Town, is planning new, dynamic, interactive and diverse visitor experiences that complement the site’s community traditions.
“Fort Steele isn’t just a tourism attraction for visitors,” said Spencer Chandra Herbert, Minister of Tourism, Arts, Culture and Sport. “It holds great historical value for our province and plays an important role in telling B.C.’s story. This new partnership is key to ensuring high-quality historic experiences at this site that will keep visitors coming back.”
The provincial heritage site and national historic site is a key attraction for the East Kootenay region of British Columbia, drawing visitors worldwide. Visitors can experience the 19th century through its restored buildings, interpreters and exhibits. There are more than 60 original or accurately reconstructed buildings from the 1890s, offering an immersive cultural and educational experience. It includes activities such as gold panning, stagecoach rides, tours and heritage trades demonstrations.
CAMAL is planning to work with area First Nations to find ways to collaborate on the site’s exhibits and programming. These initiatives aim to deepen visitors’ understanding and appreciation of the history and culture of Indigenous communities in British Columbia.
“We are dedicated to preserving and promoting Fort Steele, while bringing a renewed vibrancy to the site through innovative programs, storytelling and visitor experiences,” said Keith Powell, chair of the CAMAL. “We are excited to build upon the site’s legacy, focusing on Fort Steele’s role as an integral part of the local and regional tourism economy, and strengthening its position as a significant cultural and historical destination.”
CAMAL begins a six-year operations contract with the Province on April 1, 2025, with potential for renewal. CAMAL was selected as the site operator for Fort Steele Heritage Town following a publicly posted request-for-proposals process in late 2024.
Friends of Fort Steele Society has been operating Fort Steele Heritage Town from 2004 and will continue until March 2025. It oversaw numerous capital works developments, including a new visitor centre and focused efforts on repairing Fort Steele’s steam train. The Province provided $500,000 to support these projects, which are expected to be complete in spring and ready for the 2025 season.
The Province acknowledges the stewardship Friends of Fort Steel Society provided for this heritage site for more than 20 years.
Quick Facts:
Learn More:
To learn more about B.C. heritage sites, visit: https://www2.gov.bc.ca/gov/topic.page?id=499BEC462CB84EC48D983C16E0404090
Source: US State of Connecticut
Twenty-eight companies have already taken advantage of no-cost workshops held in New York City and Nashville to guide large employers in the design and implementation plan for neurodiversity initiatives within their organizations, offered through a partnership between UConn and Wells Fargo announced last year.
Employers in the greater-Boston area will have the next opportunity to join in on the program, presented by the Wells Fargo Center for Neurodiversity and Inclusive Employment at UConn, during the center’s upcoming workshop scheduled for Feb. 5, 2025 in Boston.
The workshop will be hosted by Loomis, Sayles & Company, the global asset manager headquartered at One Financial Center in Boston.
“We can’t wait to bring this groundbreaking program to companies in Boston and the Northeast,” says Judy Reilly, the executive director of UConn’s center. “Companies that have been struggling to get traction with neurodiversity initiatives are now mid-launch with their first neurodiversity internship program, engaging in company-wide education about autism and neurodivergence, and securing executive sponsorship with their workshop-developed business cases. They tell us that without the workshop, they would not have had access to the information they needed to make this kind of progress.”
“We’re delighted to host fellow Boston-area employers for this innovative workshop,” says Melissa Partridge, director of community investments at Loomis Sayles. “Learning how to create an environment that attracts and supports talented teams, including neurodivergent jobseekers and colleagues, enriches workplace culture by fostering diverse perspectives, creativity and problem-solving that drives success for everyone.”
This series of one-day workshops – supported by a $3.75 million grant from Wells Fargo – aims to provide instruction to key leaders from Fortune 500 companies to help design neurodiversity initiatives end-to-end.
The goal is to help leaders understand what neuroinclusion in the workplace looks like, and then apply that knowledge as they map out a plan for hiring and employment practice changes for their companies that enabled them to better support people who communicate, behave, think, and work differently.
The workshops are relevant to any company that has 1,000 or more employees, according to the center. Participants can expect to develop a clear understanding of the barriers that many highly skilled autistic and neurodivergent individuals face in obtaining and keeping employment, to draft the business case to secure executive leadership support for this work, and to actually begin designing the components of their neurodiversity employment ecosystem within their organization.
Established in 2021 with three initial industry partners – including Wells Fargo – the Center for Neurodiversity and Inclusive Employment at UConn quickly distinguished itself as a national leader on neuroinclusivity in employment. The center was renamed the Wells Fargo Center for Neurodiversity and Inclusive Employment at UConn in October 2024 in response to Wells Fargo’s shoulder-to-shoulder collaboration, expertise, and generous financial support.
For neurodivergent jobseekers – people with autism, ADHD, dyslexia, and other cognitive differences – traditional hiring processes and a general lack of knowledge about neurodiversity on employers’ parts can create obstacles to demonstrating their talents. They often experience higher rates of unemployment and underemployment.
The center’s overall focus is on improving career outcomes for neurodivergent individuals, providing innovative employer education, and fostering better connections between job seekers and companies.
The center also leads a University and Community Council that helps other higher educational institutions support neurodivergent individuals and connects them with resources and tools to help support their employment goals as well as a Neuroinclusive Candidate Network that helps individuals connect with companies, mentors, peers, events, and resources to support their career journeys.
“We have had overwhelmingly positive response from the companies that have participated in our workshops so far,” Reilly says. “These group workshops offer organizations across the country an actionable, no-cost pathway to design their own practices that tap into the strengths of current and future employees with cognitive differences. What’s really cool is that companies learn directly from the Wells Fargo team, whose award-winning neurodiversity program informs the workshop curriculum and whose lived experience provides invaluable insight and guidance to companies in a structured, sequential format they would not otherwise be able to access.”
Additional employer workshops are currently being planned for later this spring, to be held in Houston, Texas; London; Washington, D.C.; St. Louis, Missouri; and Columbus, Ohio.
Companies interested in participating in the upcoming Boston workshop are encouraged to email neurodiversity.employment@uconn.edu.
For more information about employer training and workshops and other opportunities available through the Wells Fargo Center for Neurodiversity and Inclusive Employment at UConn, please visit neurodiversity-employment.org.
Source: GlobeNewswire (MIL-OSI)
TORONTO, Jan. 29, 2025 (GLOBE NEWSWIRE) — Middlefield, on behalf of MRF 2025 Resource Limited Partnership (“MRF 2025” or the “Partnership”), is pleased to announce that it has filed a final prospectus relating to the initial public offering of MRF 2025 Class A and Class F units. The offering is being made in each of the provinces of Canada. Closing is scheduled for February 25, 2025.
The objectives of the Partnership are to provide investors with capital appreciation and significant tax benefits to enhance after-tax returns to limited partners, including the deductibility of 100% of their original investment. The Partnership intends to achieve these objectives by investing in an actively managed, diversified portfolio comprised primarily of equity securities of Canadian companies involved in the resource sector.
Middlefield is a leading provider of flow-through share funds in Canada and has a strong track record of delivering positive after-tax returns. Since 1983, Middlefield has sponsored 70 public and private flow-through funds and has acted as agent or manager for over $2.5 billion of resource investments.
The syndicate of agents for the offering is being co-led by CIBC Capital Markets and RBC Capital Markets and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Richardson Wealth Limited, Manulife Securities Incorporated, iA Private Wealth Inc., Canaccord Genuity Corp., Raymond James Ltd. and Wellington-Altus Private Wealth Inc.
For further information, please visit our website at www.middlefield.com or contact Nancy Tham in our Sales and Marketing Department at 1.888.890.1868.
This offering is only made by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from your CIRO registered financial advisor using the contact information for such advisor. Investors should read the prospectus before making an investment decision.
Source: GlobeNewswire (MIL-OSI)
ATLANTA, Jan. 29, 2025 (GLOBE NEWSWIRE) — Moody Capital Solutions, Inc. (Moody Capital), a leading investment bank based in Atlanta, Georgia, is pleased to announce the consolidation of the Capitalyst Advisory Group division into its operations. This strategic move is aimed at expanding Moody Capital’s investment banking services and integrating Capitalyst’s expertise into its business.
Richard Kreger, CEO of Moody Capital Solutions, welcomed Katherine Danielson and Todd Bertsch to the team: “We are thrilled to welcome the Capitalyst division into the Moody Capital family. This consolidation aligns with our commitment to providing top-tier investment banking services and strengthens our position in the market.”
Katherine Danielson, joining Moody Capital Solutions as Managing Director, founded Capitalyst Advisory Group to integrate scalable business practices with a focus on fundraising and successful exits. Katherine brings extensive experience from her leadership roles at Citigroup and Nomura Securities, as well as a dynamic and diverse background. Prior to her career in investment banking, Katherine served for seven years in the U.S. Army as a broadcast journalist, honing her ability to tell compelling stories and communicate effectively under pressure. She also founded the food manufacturing company Zen Monkey Overnight Oatmeal, demonstrating her entrepreneurial acumen and deep understanding of business operations. Katherine holds a Bachelor of Arts in International Relations and Global Studies from the University of Texas and an MBA from Cambridge Judge Business School. On joining Moody Capital, she said: “This is a fantastic opportunity for our team and clients. We look forward to leveraging Moody Capital’s resources and expertise to deliver even greater value and innovative solutions.”
Todd Bertsch, Managing Director of Capitalyst Advisory Group, brings over 25 years of expertise in investment banking, venture capital, and financial technology. A former leader at Bank of America Merrill Lynch, Cowen Inc., and Weild & Co., Todd has overseen operations generating over $100 million in revenues, specializing in capital raising, M&A, and corporate finance.
As co-founder of Gateway Financial Technologies, Todd revolutionized trading through direct market access via FIX protocols, positioning the firm as an industry leader. In venture capital, his role as a Venture Partner at VU Venture Partners has helped high-potential ventures secure funding and strategic partnerships.
Todd’s ability to balance financial, operational, and strategic priorities makes him a trusted advisor to businesses navigating growth. At Capitalyst, he provides tailored fundraising and M&A strategies, helping clients unlock value and achieve sustainable success.
The consolidation will enable Moody Capital to enhance its service offerings, particularly in the areas of capital raising, mergers and acquisitions, and other investment banking services. The integration of Capitalyst Advisory Group’s talented team will further solidify Moody Capital’s reputation as a premier investment banking firm.
For more information, please contact: info@moodycapital.com
About Moody Capital Solutions, Inc.:
Moody Capital Solutions, Inc. is a leading investment bank providing capital raising, mergers and acquisitions, and other investment banking services. Founded in 2002, Moody Capital is dedicated to delivering exceptional financial solutions to its clients.
About Capitalyst Advisory Group:
Capitalyst Advisory Group specializes in providing strategic financial advice and investment banking services to clients across various industries. Known for its innovative approach and commitment to client success, Capitalyst integrates scalable business practices with fundraising and successful exits in mind. Learn more at www.capitalystadvisorygroup.com.
Contact:
Moody Capital Solutions, Inc.
Richard H. Kreger
(845)448-8857
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Source: International Monetary Fund
The Board approved Ethiopia’s request for a four-year arrangement under the Extended Credit Facility (ECF arrangement) in July 2024 to support the authorities’ Homegrown Economic Reform Agenda. The Fund-supported program addresses macroeconomic imbalances, aiming to restore external debt sustainability, and lay the foundations for high, private sector-led growth. Strong ownership has underpinned early success of reforms, strengthening support for the authorities’ program. Foreign exchange (FX) market functioning is improving; and initial steps to modernize monetary policy, mobilize domestic revenue, enhance social safety nets, strengthen state-owned enterprises (SOEs), and anchor financial stability are promising, with continued commitment needed to sustain their success. Debt discussions with the Official Creditor Committee of the Common Framework are advancing. Staff assesses that there is sufficient progress towards an agreement on the key terms of a debt treatment consistent with reaching a moderate risk of debt distress by the end of the program.
Source: International Monetary Fund
January 29, 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: An International Monetary Fund mission, led by Magnus Saxegaard, and comprising Christian Bogmans, Shinya Kotera, Yen Mooi, and Jonathan Pampolina conducted discussions for the 2025 Article IV consultation with the Slovak Republic virtually during December 4-13, 2024, and in Bratislava, Slovakia, during January 15-28, 2025. Sumiko Ogawa, Financial Sector Assessment Program (FSAP) mission chief, joined the concluding meeting. At the conclusion of the visit, the mission issued the following statement:
Slovakia, like much of the EU, faces headwinds related to geoeconomic fragmentation, high energy costs, and demographic change. Growth has held up in recent years, but at the cost of a much-increased fiscal deficit. Steadfast implementation of the authorities’ ambitious 4-year consolidation plan is needed to reverse the upward trajectory in public debt, alongside policies to strengthen financial resilience and structural reforms to bolster medium-term growth, including through efforts to strengthen governance and reduce vulnerability to corruption.
Economic Developments, Outlook, and Risks
The Slovak economy is recovering. The economy slowed sharply in 2022-23, but growth is estimated to have accelerated to 2.1 percent in 2024, outpacing that in the euro area. Private consumption was the main driver fueled by recovering real wages, the extension of household energy support, and more generous pensions. Meanwhile, an increase in public consumption partially offset a slowdown in EU-funded public investments. While inflation has declined from record-highs in 2023, it increased in 2024H2 due to higher global food price inflation. Core inflation is higher than in the euro area, driven by a tight labor market and strong nominal wage growth.
Economic growth is projected to moderate to 1.9 percent in 2025, before rising to 2.1 percent in 2026. The fiscal consolidation in 2025 will lower growth directly by slowing government spending, and indirectly as higher taxes put upward pressure on prices and dampen private consumption, though the effect will be partially mitigated by the one-year extension of household energy support and strong EU-funded public investments. Meanwhile external demand is expected to remain subdued. For 2026, higher growth in trading partners and increased capacity in the automotive sector is expected to boost exports. Inflation is projected to rise temporarily to 4.0 percent in 2025 and moderate to 3.2 percent in 2026. Adverse demographic trends and lower productivity growth imply that Slovakia’s medium-term growth, as projected by staff, is expected to be significantly lower than its pre-pandemic average, and below IMF forecasts of medium-term growth in other Central, Eastern, and Southeastern Europe (CESEE) countries with comparable income levels.
Risks to growth are tilted to the downside while risks to inflation are broadly balanced. Near term risks include a global slowdown or intensifying trade policy uncertainty which would weigh on growth and exert downward pressure on inflation. Domestically, slippages in fiscal consolidation could increase sovereign spreads and tighten financial conditions. A lack of political consensus on structural reforms and concerns about institutional quality could deter private investment and slow the disbursement of EU funds that have been critical in supporting public investment. A correction in real estate prices combined with an economic downturn could trigger losses for financial institutions. Meanwhile, continued strong nominal wage growth could undermine competitiveness and keep inflation elevated.
Fiscal Policy
Slovakia’s fiscal outlook is challenging. The fiscal deficit is projected to have increased to 5.7 percent in 2024 from 5.2 percent in 2023 due to a combination of revenue easing and higher spending that more than offset the 0.6 percent of GDP in net consolidation measures in the 2024 budget. This increase follows the 3.6 percentage points of GDP widening of the fiscal deficit in 2023. While the change in government in October 2023 meant time to finalize the 2024 budget was short, it is clear ex-post that robust growth combined with significant medium-term fiscal challenges would have warranted a tighter fiscal stance in 2024.
The mission welcomes the authorities’ ambitious fiscal consolidation targets for 2025-28, which is commensurate with the scale of Slovakia’s fiscal challenges.
The consolidation measures for 2025 are a step in the right direction. Several of the measures are welcome and will help reduce the deficit on a structural basis, including the increase in the basic VAT rate, and better targeting of child benefits. However, the increase in the number of items subject to reduced VAT rates deprives the government of much needed revenue, while the financial transactions tax (FTT) could weaken financial intermediation and increase incentives for informality.
The measures to lower Slovakia’s fiscal deficit closer to 2 percent of GDP by 2028 should be consistent with Slovakia’s long-term growth and climate objectives, while protecting the most vulnerable in society. While there is no definitive evidence that reducing spending is more effective than increasing revenues in terms of economic efficiency or equity, prioritizing the rationalization of expenditures moving forward would result in a more balanced fiscal consolidation, given the reliance on revenue-based measures thus far.
Safeguarding Slovakia’s strong fiscal framework is essential for the credibility of the consolidation effort. Aligning Slovakia’s national expenditure ceiling framework with the new EU fiscal rules avoids inconsistencies and streamlines the budget process but continued focus on the long-term fiscal outlook (beyond the horizon used for the EU fiscal framework) remains useful given Slovakia’s medium-term fiscal challenges. Slovakia’s strong and independent Council for Budgetary Responsibility can help by monitoring the impact of government policies on the long-term sustainability of public finances. Lastly, the mission recommends reforming the debt brake before it comes into effect in 2026, to avoid the risk of a disruptive fiscal consolidation.
The mission welcomes the government’s objective to increase absorption of EU funds. The Slovak government is working with the OECD and the European Commission to identify concrete measures to increase absorption. In this regard, there is a need to strengthen project management capacity, especially at the municipal level, while the preparation of a national investment plan could help guide the timely selection of investment projects.
Financial Sector Policy
The 2024 Financial Sector Assessment Program (FSAP)—an in-depth review of the financial sector—assessed the banking sector to be resilient against severe shocks, reflecting a healthy level of buffers and profitability. The residential real estate market remains a source of vulnerability. In particular, tighter financial conditions, an economic slowdown, and a decline in still-elevated house prices could put pressure on households’ repayment capacity and increase the riskiness of banks’ mortgage portfolios. Also, risks remain elevated in the office segment of the commercial real estate (CRE) market while banks with large exposures to firms facing geopolitical risks could be vulnerable to credit losses. That said, solvency stress tests indicate that banks have sufficient capital to withstand severe macro-financial shocks. Likewise, liquidity stress tests indicate that the banking system as a whole is resilient to funding and market liquidity shocks.
The current macroprudential stance is broadly appropriate, but the policy framework could be further developed over the medium term to help attenuate cyclical and structural risks.
Financial resilience could be bolstered by strengthening the supervision of less significant institutions (LSIs) as well as the crisis management framework.
Efforts to strengthen the AML/CFT framework should continue. In particular, the authorities should review the criteria for the application of ML/TF sanctions, strengthen coordination between the NBS and Financial Intelligence Unit, and introduce mechanisms to verify beneficial ownership information and sanction the submission of inaccurate information.
Structural Policy
Slovakia needs structural reforms to diversify its economy, enhance resilience to global shocks and sustain productivity growth. The success of the automotive sector has led to decades of strong growth but exposed Slovakia to global trends related to the green transition and automation. To improve resilience and sustain productivity growth the authorities should intensify efforts to promote innovation and technology adoption. In this context, the mission welcomes the increase in direct government R&D spending, but further efforts are needed to stimulate business R&D including in small firms and startups that are not yet profitable. At the same time, deepening the European single market would allow innovative firms to leverage economies of scale. Finally, advancing the capital market union would facilitate cross-border flows of capital including equity financing and venture capital, which is critical for supporting startups, particularly in countries with less-developed capital markets.
The automotive sector is facing headwinds related to the unfolding green transition and rapid rise of electronic vehicle (EV) production in other markets. To address these challenges, the authorities should encourage innovation across the entire domestic EV production supply chain, promote efforts to diversify the economy, and enhance Active Labor Market Policies (ALMPs) to facilitate the movement of workers across sectors.
The challenges of an aging population require policies to increase the labor force. Flexible working arrangements, shortening the 3-year long maximum parental leave period, and improved child and elderly care could increase female participation, while tax credits and restrictions on early retirement could raise labor force participation among the elderly. The recent easing of national visa rules for foreign workers in professions with shortages could boost migrant inflows, but further efforts are needed to integrate and retain migrants, including by scaling up language training and streamlining certification recognition. Increased focus on vocational education and training would help bring down Slovakia’s high youth unemployment.
Maintaining a favorable investment climate, strengthening governance, and reducing vulnerability to corruption will help lift the economy’s growth potential.
While greenhouse gas emissions have fallen by 50 percent since 1990, further efforts are needed to cut emissions by 55 percent by 2030 and to reach net-zero by 2050. Slovakia should move expeditiously to fully implement the ETS II scheme for road transport and buildings and could consider gradually raising environmental levies in these sectors until the scheme becomes operational in 2027. The authorities should continue exploring options to replace two coal-fired blast furnaces in the steel industry and phase out fossil fuel subsidies. Also, supporting environmental R&D and green technology would support mitigation efforts and economic diversification. Lastly, a more integrated energy market in Europe would encourage investment in renewables and enhance energy security and reduce energy prices.
The IMF team thanks the authorities and other interlocutors for their generous hospitality and constructive dialogue.
| Table 1. Slovakia: Selected Economic Indicators, 2020–2030 |
PRESS OFFICER: Boris Balabanov
Phone: +1 202 623-7100Email: MEDIA@IMF.org