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Category: Finance

  • MIL-OSI Reportage: BNZ expands investment offering by launching High Growth Funds for the BNZ KiwiSaver Scheme and YouWealth

    Source: BNZ statements

    From today, members of the BNZ KiwiSaver Scheme and investors in YouWealth have the option of investing into High Growth Fund options.

    The two High Growth Funds invest 100% in growth assets, providing the potential for higher returns for those who are more long-term minded and understand that it means holding investments through the market cycle which can have its ups and downs.

    BNZ’s General Manager of Wealth Peter Forster says the funds provide those with a long investment timeframe with the opportunity to take a more aggressive approach.

    “We’re excited to give our customers the choice of a fund that will suit people who are prepared to weather the inevitable market turbulence through their investment journey,” he says.

    BNZ has chosen to charge the same low 0.45% per annum fee for the two High Growth Funds as it does across the majority of its BNZ KiwiSaver Scheme and YouWealth funds (the exceptions being the BNZ KiwiSaver Scheme Cash (0.30% p.a. and Default (0.35% p.a. funds).

    “A management fee of just 0.45% for funds that invest 100% in equities represents real value in a market where investors are frequently charged in excess of 1% for more aggressive funds,” says Mr Forster.

    BNZ is also launching an updated version of its KiwiSaver Navigator tool today that will recommend the High Growth Fund when appropriate.

    The tool will provide users with a detailed breakdown of steps they need to take to get back on track if they are not currently predicted to reach their savings targets. These steps could include increasing contribution rate, changing fund choice or delaying retirement or first home purchase.

    BNZ customers can request a KiwiSaver Navigator session by visiting a BNZ branch or over the phone.

     

    Disclaimer:

    BNZ Investment Services Limited, a wholly owned subsidiary of Bank of New Zealand (‘BNZ’), is the issuer and manager of the BNZ KiwiSaver Scheme and YouWealth. Download a copy of the relevant Product Disclosure Statement from bnz.co.nz/kiwisaver or bnz.co.nz/youwealth.

    Investments made in the BNZ KiwiSaver Scheme or YouWealth do not represent deposits or other liabilities of BNZ or any other member of the National Australia Bank Limited group, and are subject to investment risk, including possible delays in repayment and loss of income and principal invested. None of BNZ or any other member of the National Australia Bank Limited group, the Supervisor, and any director of any of them, the Crown or any other person guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme or YouWealth, or the repayment of capital.

    The post BNZ expands investment offering by launching High Growth Funds for the BNZ KiwiSaver Scheme and YouWealth appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: BNZ Foundation backs marine restoration, social vehicle leasing and community support network in first round of partnerships

    Source: BNZ statements

    Restoring marine biodiversity, empowering low-income families with affordable low-emissions transport, and developing new ways to support New Zealanders facing financial difficulty are the focus of three projects selected for support through the BNZ Foundation’s inaugural grant round.

    $590,000 will go to three charitable programmes: Revive Our Gulf, Waka Aronui, and a new partnership aimed at improving community resilience.

    “This marks a significant milestone for the Foundation as we transition from planning to action,” says Dan Huggins, BNZ Foundation Chair. “After 18 months laying the groundwork for the Foundation, we’re delighted to now be in the position to provide tangible support to projects that will make a significant, positive difference for New Zealand.

    “The organisations we are partnering with share our vision for a more inclusive, resilient, and sustainable Aotearoa and align with our funding mandate to make strategic investments in the areas of regenerating biodiversity and improving financial wellbeing,” Mr Huggins says.

    Restoring the Hauraki Gulf’s marine ecosystem

    Revive Our Gulf—spearheaded by the Mussel Reef Restoration Trust in collaboration with iwi and research partners—is set to receive a significant boost with a three-year, $450,000 commitment from the BNZ Foundation.

    The project is at the forefront of restoring the Hauraki Gulf’s soft sediment kūtai (green lipped mussel) reefs: vital ecosystems that once flourished in the region. The project aims to increase biodiversity, enhance water quality, and re-establish critical natural habitats for marine life.

    Revive Our Gulf has already deployed over 350 tonnes of mussels in experimental mussel beds in the Hauraki Gulf. As these beds continue to grow in number, thorough monitoring becomes increasingly important. The BNZ Foundation’s financial support will fuel the development of a comprehensive programme for monitoring, evaluating, and reporting on the Gulf’s health and the effectiveness of restoration efforts.

    Empowering low-income families with sustainable transportation

    Currently in the second year of a three-year pilot in south Auckland, Waka Aronui is a social car leasing programme which aims to provide low-income whānau with safe, affordable, and low-emissions vehicles to support an equitable transition to a greener future.

    Many low-income families grapple with costly, high-interest vehicle finance, often leading to unaffordable, poorly maintained, and uninsured vehicles. The pilot, spearheaded by the Ākina Foundation and the Manukau Urban Māori Authority, has shown promising results, improving financial and mental wellbeing, along with environmental benefits through CO2 emissions reductions.

    With a $110,000 grant from the BNZ Foundation, a comprehensive feasibility study will explore options to scale the programme to new regions across New Zealand as well as the potential to incorporate new solutions such as vehicle sharing and e-bikes.

    Growing the financial wellbeing of New Zealanders

    Thanks to seed funding from a range of philanthropic foundations, including a $30,000 contribution from the BNZ Foundation, The Centre for Sustainable Finance: Toitū Tahua is establishing a new partnership between corporates, iwi and community organisations to support more resilient communities. The partnership aims to foster collaboration between corporates and community organisations and encourage new practices, products and services that ensure New Zealanders facing economic hardship can always access essential goods and services.

    “These partnerships reflect our commitment to impactful investment. It’s about taking a targeted approach, making every dollar count, and ensuring that our resources bring about substantial and lasting positive change for the country,” says Mr Huggins.

    John McCarthy, BNZ Foundation Independent Trustee, says, “The investment decisions we make are deeply rooted in the principles of Kaitiakitanga and Manaakitanga, values that all our partners embody. We look forward to working closely with them and accelerating positive change for our communities.”

    For more information on the BNZ Foundation and its funding programmes, please visit bnz.co.nz/bnzfoundation.

    The post BNZ Foundation backs marine restoration, social vehicle leasing and community support network in first round of partnerships appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Reportage: BNZ’s new low-cost rate loans make it easier for businesses to invest in green assets

    Source: BNZ statements

    Sustainability is increasingly front of mind for New Zealand businesses, from small startups to large corporates. Surveys by the Sustainable Business Network (SBN) reveal a strong commitment to sustainable practices among NZ corporates, while Stats NZ has found that a third of local businesses are investing in climate change measures. Yet, as RNZ reports, a significant gap remains: While the vast majority of the country’s small to medium sized enterprises (SMEs) are concerned about sustainability, more than 40 per cent report that they lack the knowledge and resources to become more sustainable. 

    Recognising this gap, BNZ has announced a refresh of its Green Business Loan proposition, including a limited time, low-cost rate Green Asset Finance Loan. This initiative is designed to help SMEs finance no and low emission vehicles and machinery such as electric forklifts, cars, trucks and buses, at a market leading fixed interest rate of 5.5% p.a. for up to five years, capped at $500k per customer. 

    “At BNZ, we’ve made a strategic commitment to help build a resilient, regenerative and inclusive Aotearoa for the long term and helping our SME customers reach their sustainability goals plays a huge role in achieving that,” says Alex West, BNZ’s Head of Sustainable Finance – Growth Sectors. 

    Supporting businesses to be more sustainable is not only key for New Zealand to achieve its climate change commitments, but also brings a range of other benefits, from supporting biodiversity and enhancing water quality to improving labour practices and delivering better social outcomes for our communities. 

    And as West points out, it also makes strong business sense.  

    “Switching to electric and plug in hybrid vehicles with BNZ’s Green Asset Finance Loan can significantly reduce fuel and maintenance costs, in addition to the emissions benefits. Being sustainable doesn’t mean sacrificing your bottom line – it’s actually crucial for long term financial success,” he says. 

    While BNZ’s Green Asset Finance offer is focused on clean transport and machinery assets, West says that the Bank’s wider Green Business Loan proposition can support a diverse range of sustainability initiatives. 

    “At BNZ, we’re seeing a growing desire among our customers to embark on their own sustainability journeys. They range from those who are already incorporating sustainability into their businesses to many who are keen to make a difference but don’t know exactly where to start.  

    “Our role is to be there as a trusted advisor, to guide and support them through the process. We collaborate closely with our customers, understanding their unique needs and aspirations, and together, develop sustainable finance solutions to not only benefit their businesses but also contribute positively to our communities and environment.” 

    South Island Forklifts’ sustainable shift with BNZ 

    South Island Forklifts, a forklift rental company in Christchurch that has been operating since 1999, has made a major move towards sustainability, investing heavily in eco-friendly electric forklifts, with the help of a Green Business Loan from BNZ. 

    “We saw adopting green electric forklifts as a logical step for us,” says the owner of South Island Forklifts, Jason Donnithorne. “These forklifts are the future of our industry, and we are dedicated to assisting our customers switch to a more sustainable fleet. 

    In addition to the environmental benefits of eliminating the need to regularly change used engine and transmission oils, green electric forklifts also have lower operating costs than fuel-powered forklifts. This is because the electricity they use is typically much cheaper than diesel or gasoline.   

    “With BNZ’s Green Business Loan, we’ve been able to purchase these environmentally friendly machines, which not only match our sustainability values but also offer cost savings to our customers. 

    “Our aim is to set an example,” he says. “We want to show the industry that making sustainable choices is not just beneficial for the planet – it’s good for business too.” 

    To discover how a BNZ Green Business or Green Asset Finance Loan can help your business reach its sustainability goals, visit our website or speak to your banker.

    Summary: BNZ Green Asset Loan  

    • Low-cost rate loans are available to finance a broad range of green assets. 
    • Market leading interest rate of 5.5% p.a., fixed for up to 5 years. 
    • Maximum loan of up to $500,000 per customer. For lending over $500,000, speak to a BNZ banker about what we can do.
    • Available until 17 May 2024 or until the total amount available is exhausted, for new and existing business customers with their main banking relationship with BNZ.
    • Eligibility criteria, terms and fees apply, including those that apply to the base product. 

    The post BNZ’s new low-cost rate loans make it easier for businesses to invest in green assets appeared first on BNZ Debrief.

    MIL OSI Analysis –

  • MIL-OSI Russia: IMF Executive Board Concludes Post Financing Assessment Discussions with South Africa

    Source: IMF – News in Russian

    September 4, 2024

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Post Financing Assessment (PFA)[1], and endorsed the Staff Appraisal on a lapse-of-time basis. South Africa’s capacity to repay the Fund is assessed as adequate.

    The new government of national unity that took office in June faces significant challenges, including declining real per capita growth, high unemployment, poverty, and inequality, and a rising level of public debt. The new administration has committed to address these challenges by continuing ongoing structural reforms aimed at addressing supply constraints and bolstering inclusive growth, while maintaining fiscal discipline.

    Growth slowed to 0.7 percent in 2023, depressed in part by widespread power shortages and disruptions at rails and ports. Unemployment remained elevated, reaching 32 percent at end-2023. Following decisive monetary policy tightening during 2022 and early 2023, inflation fell within the SARB’s 3–6 percent target range last year, moderating further to 5.1 percent in June 2024. The current account deficit widened to 1.6 percent of GDP in 2023 (from
    0.5 percent in 2022), driven by higher imports. The budget deficit remained in line with the revised budget target thanks to robust revenues and expenditure restraint, although public debt continued to rise to just above 74 percent of GDP.

    Looking ahead, growth is expected to reach 1 percent in 2024, on the back of improved investor sentiment and electricity generation, stabilizing at 1.4 percent in the medium term, as structural bottlenecks ease only gradually. Inflation is projected to decline toward the midpoint of the target range 2025Q2. The current account deficit is expected to increase modestly to 2.2 percent of GDP by 2029, as imports accelerate in line with domestic demand. The fiscal deficit is projected to remain elevated over the medium term, given rising debt service, support to state-owned enterprises, and sizeable spending on public wages and transfers. As a result, public debt is not expected to stabilize. Risks to the outlook are broadly balanced, with faster reform implementation under the new government of national unity representing an upside risk to growth, while downside risks largely relate to the uncertain external environment and an inability of the new government to agree on needed fiscal and structural reforms.

    Executive Board Assessment[2]

    South Africa’s economy has shown resilience in the face of massive disruptions, but persisting structural challenges risk a further erosion of living standards. Despite unprecedented electricity shortages and bottlenecks at rails and ports last year, growth stayed positive, as economic agents adapted. However, per-capita income growth continued to decline, public debt rose further, and unemployment and poverty rates remained at unacceptably high levels.

    The new government should use the opportunity of a new mandate to implement bold reforms to address long-standing challenges and achieve the economy’s full potential. Such a mandate can turn the economy around from the path of weak growth, high debt, and deteriorating living standards toward high growth, fiscal sustainability, and shared prosperity. This requires determined structural and fiscal reforms, complemented by prudent monetary and financial policies. The new administration should build on the existing reform agenda but increase its ambition and accelerate implementation to put the economy on a permanently higher and more inclusive growth path.

    Structural reforms are paramount to support job creation, growth, and prosperity. Wide-ranging electricity and transportation-sector reforms, including to foster private sector participation, are indispensable to reinvigorating activity, boosting exports, and supporting the green transition. Product-market reforms improving business environment and removing obstacles to trade, complemented by labor-market reforms, are essential to boost investment and employment. Strengthening governance and reducing corruption are essential to reap reform gains, which should be broadly distributed.

    An ambitious fiscal consolidation is essential to restore the sustainability of public finances. Durable expenditure-based consolidation of at least 3 percent of GDP over the next three years is required to place debt on a sustained downward path, while protecting vulnerable groups. Reliance on gains on foreign reserves has helped lower borrowing needs but does not substitute for the needed fiscal consolidation. Any additional spending initiatives to lower inequality and improve health should be financed in a deficit-neutral way. Improving the institutional fiscal framework by adopting a debt rule, bolstering the procurement framework, and improving public-investment management can support the adjustment and mitigate fiscal risks.

    Monetary policy should carefully manage the descent of inflation to the mid-point of the target range and stay data dependent. Given continued uncertainty about the inflation outlook, rate cuts should be considered only once inflation declines sustainably towards the mid-point of the target range. Any change to the monetary policy framework should be carefully timed, well-coordinated and communicated to manage expectations and safeguard credibility.

    Financial policies should continue to support financial stability. Ongoing banking resolution and safety-net reforms, together with the new loss-absorbing capacity requirement, significantly strengthen crisis management tools and enhance depositors’ protection. Continued monitoring of risks remains critical, given the sovereign-financial sector nexus. Implementation of prudential regulations, along with the countercyclical buffer, could play a vital role.

    Staff assess that South Africa’s capacity to repay the Fund is adequate under the baseline and downside scenarios. South Africa is expected to be able to repay the Fund by end-2025 given ample reserves and manageable external debt service. Capacity to repay is also assessed as adequate under a downside scenario, where policies will need to be tightened to contain inflationary pressures and safeguard debt sustainability, while protecting vulnerable groups. The flexible exchange rate is expected to act as a shock-absorber. 

    South Africa: Selected Economic Indicators, 2022–26

    Social Indicators

    GDP               

     

    Poverty (percent of population)

    Nominal GDP
    (2022, billions of US dollars)

    407

    Lower national poverty line (2015)

    40

    GDP per capita
    (2022, in US dollars)

    6,712

    Undernourishment (2019)

    7

    Population characteristics

     

    Inequality
    (income shares unless otherwise specified)

    Total (2022, million)

    62

    Highest 10 percent of population (2015)

    53

    Urban population
    (2020, percent of total)

    67

    Lowest 40 percent of population (2015)

    7

    Life expectancy at birth
    (2020, number of years)

    64

    Gini coefficient (2015)

    65

    Economic Indicators

     

    2022

    2023

     

    2024

    2025

    2026

     

     

    Proj.

    National income and prices
    (annual percentage change unless otherwise indicated)

       Real GDP

    1.9

    0.7

    1.0

    1.3

    1.4

       Domestic demand

    3.9

    0.8

    1.2

    1.5

    1.5

         Private Consumption

    2.5

    0.7

    0.9

    1.2

    1.3

         Government Consumption

    0.6

    1.9

    1.2

    1.2

    1.3

         Gross Fixed Investment

    4.8

    3.9

    3.1

    2.8

    2.7

         Inventory Investment
    (contribution to growth)

    1.5

    -0.6

    0.0

    0.0

    0.0

       Net export
    (contribution to growth)

    -2.1

    -0.1

    -0.3

    -0.2

    -0.1

       Real GDP per capita 1/

    1.1

    -0.8

    -0.6

    -0.2

    -0.1

       GDP deflator

    5.0

    4.8

    4.9

    4.5

    4.5

       CPI (annual average)

    6.9

    5.9

    5.2

    4.6

    4.5

       CPI (end of period)

    7.4

    5.5

    4.8

    4.6

    4.5

    Labor market
    (annual percentage change unless otherwise indicated)

       Unemployment rate
    (percent of labor force, annual average)

    33.5

    33.1

    33.8

    34.2

    34.5

       Unit labor costs
    (formal nonagricultural)

    2.1

    -0.8

    -0.6

    -0.2

    -0.1

    Savings and Investment
    (percent of GDP)

    Gross national saving

    14.4

    15.0

    13.9

    13.7

    13.7

    13.7

    Investment (including inventories) 2/

    12.4

    15.4

    15.5

    15.4

    15.7

    15.8

    Fiscal position
    (percent of GDP unless otherwise indicated) 4/

    Revenue, including grants 4/

    25.0

    27.6

    26.8

    27.0

    27.0

    27.1

    Expenditure and net lending 5/

    34.6

    31.9

    32.7

    33.2

    33.4

    32.6

    Overall balance

    -9.6

    -4.3

    -5.9

    -6.3

    -6.4

    -5.5

    Primary balance

    -5.4

    0.3

    -0.9

    -0.9

    -0.8

    0.2

    Gross government debt 6/

    69.0

    70.8

    73.4

    75.0

    77.6

    79.3

    Government bond yield (10-year and over, percent) 7/

    9.7

    11.3

    11.6

    …

    …

    …

    Money and credit
    (annual percentage change unless otherwise indicated)

    Broad money

    9.4

    8.3

    6.5

    7.5

    7.5

    7.5

    Credit to the private sector 8/

    1.0

    8.9

    4.4

    5.9

    5.9

    5.9

    Repo rate (percent, end-period) 7/

    3.5

    7.0

    8.25

    …

    …

    …

    3-month Treasury bill interest rate (percent) 7/

    3.9

    6.5

    7.9

    …

    …

    …

    Balance of payments
    (annual percentage change unless otherwise indicated)

    Current account balance (billions of U.S. dollars)

    6.7

    -1.8

    -6.1

    -6.9

    -7.7

    -8.6

    percent of GDP

    2.0

    -0.5

    -1.6

    -1.8

    -1.9

    -2.0

    Exports growth (volume)

    -11.9

    7.4

    3.5

    3.5

    3.6

    3.7

    Imports growth (volume)

    -17.4

    14.9

    4.1

    4.0

    3.9

    3.8

    Terms of trade

    9.3

    -8.6

    -4.8

    -1.2

    -1.4

    -0.3

    Overall balance (percent of GDP)

    -1.0

    0.0

    0.5

    0.0

    0.0

    0.0

    Gross reserves (billions of U.S. dollars)

    55.5

    60.6

    62.5

    62.5

    62.5

    62.5

    in percent of ARA

    78.1

    88.9

    97.0

    95.3

    …

    …

    Total external debt (percent of GDP)

    50.5

    40.4

    41.5

    42.2

    43.6

    44.9

    Nominal effective exchange rate (period average) 7/

    -11.6

    -4.9

    -7.7

    …

    …

    …

    Real effective exchange rate (period average) 7/

    -10.1

    -1.4

    -9.0

    …

    …

    …

    Exchange rate (Rand/U.S. dollar, end-period) 7/

    14.7

    17.0

    18.4

    …

    …

    …

    Sources: South African Reserve Bank, National Treasury,
    Haver, Bloomberg, World Bank,
    and Fund staff estimates and projections.

    1/ Per-capita GDP figures are computed using
    STATS SA mid-year population estimates.                                                                                                                                                                                   

    2/ Inventories data are volatile and excluded from the
    investment breakdown to help clarify fixed capital formation developments.                                                                                                         

    3/ Consolidated government as defined in the budget unless otherwise indicated.                                                                                                                                                                       

    4/ Revenue excludes “transactions in assets and liabilities” classified
    as part of revenue in budget documents.  This item represents proceeds
    from the sales of assets, realized valuation gains from holding of
    foreign currency deposits, and other conceptually similar items,
    which are not classified as revenue by the IMF’s Government Finance Statistics Manual 2014.                              

    5/ The Eskom debt relief is treated as capital transfer above-the-line item.                                                                                                                                                                                                            

    6/ Central government.                                                                                                                                                                                                                             

    7/ Average January 1- April 19, 2023. For nominal and effective
    exchange rate, year on year change of average January 1-April 19.                                                                                                          

    8/ Other depository institutions’ “loans and securities” in all currencies.                                                                                                                                                                                                                                         

    [1] After completing an IMF lending program, a country may be subject to a Post Financing Assessment (PFA). It aims to identify risks to a country’s medium-term viability and provide early warnings on risks to the IMF’s balance sheets. For more details click here.

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

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Tatiana Mossot

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/04/pr24317-south-africa-imf-exec-board-concludes-post-fin-assess-discuss

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Russia: The Kingdom of Bahrain Implements the International Monetary Fund’s Enhanced General Data Dissemination System

    Source: IMF – News in Russian

    September 5, 2024

    Washington, DC: With the successful launch of the new data portal, the National Summary Data Page (NSDP) today, Bahrain has implemented a key recommendation of the IMF’s Enhanced General Data Dissemination System (e-GDDS) to publish essential macroeconomic and financial data. The e-GDDS is the first tier of the IMF Data Standards Initiatives that promote transparency as a global public good and encourage countries to voluntarily publish timely data that is essential for monitoring and analyzing economic performance.

    The implementation of the e-GDDS recommendations and the launch of the new data portal – ­ are a testament to Bahrain’s commitment to data transparency. The publication of the data through the NSDP will enable national decision-makers, domestic and international stakeholders, investors, and rating agencies to have easy access to information that the IMF’s Executive Board has identified as essential for monitoring a country’s economic and financial developments. More broadly, having data in line with the e-GDDS means it should be accessible in a standardized way to facilitate analysis of economic trends across countries and to provide an early detection of risks to help avert economic crises, thus supporting sustainable economic growth and development.

    Bert Kroese, Chief Statistician and Data Officer, and Director of the IMF’s Statistics Department, welcomed this major milestone in the country’s statistical development. “I am confident that Bahrain will benefit from using the e-GDDS as a framework for further development of its statistical system,” Mr. Kroese stated. The benefits, including better sovereign financing conditions for countries participating in the e-GDDS, have recently been reviewed by the IMF Executive Board in the context of the Tenth Review of the IMF Data Standards Initiatives.

    The NSDP will serve as a one-stop publication for disseminating data covering national accounts and prices, government operations and debt, the monetary and financial sector, and the external sector. Making this information easily accessible in one place and following a predetermined schedule, including in a format that allows machine-to-machine readability and transfer, will enable all users to simultaneously access timely data, ensuring greater transparency.

    A link to Bahrain’s NSDP is available on the IMF’s Dissemination Standards Bulletin Board. The data is provided by the Ministry of Finance and National Economy, the Central Bank of Bahrain, and the Information and eGovernment Authority. Today’s launch of the NSDP shows the country’s commitment to subscribe to the Special Data Dissemination Standard (SDDS) in the near future.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Mayada Ghazala

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/05/pr-24318-bahrain-bahrain-implements-imfs-enhanced-general-data-dissemination-system

    MIL OSI

    MIL OSI Russia News –

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

    Source: IMF – News in Russian

    September 5, 2024

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with the Republic of Latvia and endorsed the staff appraisal on a lapse-of-time basis without a meeting.

    The Latvian economy contracted with significant disinflation. After the post-pandemic recovery, growth contracted by 0.3 percent in 2023, due to tighter financial conditions and weak external demand. Headline inflation declined to 0.0 percent y/y in May 2024. However, core inflation still stood at 3.1 percent in April 2024. The financial sector has so far been resilient although risks are elevated. Fiscal performance in 2023 was stronger than expected, reflecting revenue buoyancy linked to inflation and expenditure under-execution. The current account deficit narrowed to 4 percent of GDP in 2023 from 4.8 percent in 2022, due to import contraction and lower energy prices. Russia’s war in Ukraine and the related geoeconomic fragmentation are adding to structural challenges amid multiple transitions, notably, climate change and energy, and aging and labor shortages. The economic consequences of Russia’s war in Ukraine continue to depress private investment and productivity, thus compromising further Latvia’s lagging income convergence.

    Amid high uncertainty, the outlook is for higher growth and the balance of risks is tilted to the downside. Real GDP growth is projected to increase to 1.7 and 2.4 percent in 2024 and 2025, respectively, underpinned by a recovery in private consumption, higher public investment, and stronger external demand. Growth in the medium-term is projected to continue at an average of around 2.5 percent, supported by public investment and reforms. Inflation is expected to continue to moderate. Headline inflation (annual average) is projected to decline to 2.0 percent in 2024. Meanwhile, core inflation (annual average) is projected to slow to 3.3 percent in 2024, reflecting persistent services inflation. Downside risks dominate, including risk to competitiveness associated with recent high wage growth, rising geopolitical tensions and deeper geoeconomic fragmentation, and weaker external demand.

    Executive Board Assessment[2]

    Latvia’s economy has encountered severe headwinds. The Latvian economy contracted with significant disinflation against the backdrop of geopolitical headwinds. Notably, Russia’s war in Ukraine and the related geoeconomic fragmentation are adding to long-standing challenges to productivity, investment, and labor supply, amid multiple transitions around climate change and energy, aging and labor shortages, and rising defense costs.

    Amid high uncertainty, growth is projected to rebound, but risks are tilted to the downside. Real GDP growth is projected to increase in 2024 and 2025, largely driven by a rebound in private consumption, higher public investment, and stronger external demand. The main risks stem from rising geopolitical tensions and deeper geoeconomic fragmentation, credit risks related to variable-rate loans, and weaker-than-expected external demand. Risks to competitiveness can also arise given recent high wage growth. Over the medium-term, delays in public investment and structural reforms could weigh on potential growth.

    Considering the improving outlook, staff recommends a less expansionary, neutral fiscal stance for 2024 and a tighter fiscal stance in 2025. Proactively identifying spending efficiency and better targeting social support, while protecting the most vulnerable, would help. Staff commends the authorities for the targeting of energy support measures. In 2025, the fiscal stance should be tighter to build buffers for future spending needs. Policy options to achieve this include reducing tax exemptions, raising revenue from property taxation, strengthening tax enforcement, and improving investment spending efficiency. Fiscal policy should remain flexible and evolve if risks materialize.

    Although Latvia has some fiscal space, structural fiscal measures are needed to provide buffers for medium to long term spending pressures. Over the medium term, options for fiscal consolidation include (i) broadening the bases of corporate income tax (CIT) and personal income tax (PIT), including by reducing the shadow economy; (ii) broadening the base of property taxes; (iii) reducing tax exemptions and fossil fuel subsidies, and (iv) rationalizing spending on goods and services. Given this scaling-up of public investment amid high uncertainty and cost overrun, enhanced public investment management is warranted to mitigate fiscal risks. The mission welcomes the healthcare reform aimed to generate efficiency gains, while mitigating risks and supporting solidarity. Staff also welcomes the government’s pension reform efforts and recommends linking the retirement age to life expectancy. Latvia should swiftly implement the NRRP. 

    Although the financial sector has so far been resilient, continued monitoring of macrofinancial vulnerabilities and spillovers is warranted. The banking sector remained well capitalized and liquid, with a low NPL ratio. However, given heightened risks, continued monitoring of financial sector vulnerabilities is important. Notably, regular risk-based monitoring of banks’ asset quality and liquidity should continue, supported by tailored stress tests. Any households’ financial distress related to variable-interest-rate mortgage loans should be addressed through the consumer bankruptcy framework, supplemented by the social protection system for the most vulnerable. The new untargeted interest subsidy scheme for variable-interest-rate mortgages should not be renewed at its expiration in 2024. The authorities should refrain from further initiatives to increase taxation on bank profits given their adverse impact on bank capital and financial stability. Staff welcomes the continued efforts to mitigate cybersecurity risk.

    While the current macroprudential policy stance is broadly appropriate, the recent adjustment to the borrower-based measures for energy-efficient housing loans should be reconsidered. The overall policy stance strikes the right balance between maintaining financial stability and the need to extend credit to the economy. However, borrower-based macroprudential measures should be relaxed only when their presence is overly stringent from the financial stability perspective.

    Latvia has made significant progress in strengthening its AML/CFT frameworks and governance reforms. Staff commends the authorities’ effort to pursue AML/CFT reforms and supports the authorities’ priorities to prepare for the 6th round of MONEYVAL evaluation. Staff welcomes the authorities’ reforms to digitalize the procurement system and the continued implementation of Latvia’s anti-corruption plan and national strategy.

    Structural reforms should be accelerated to enhance productivity and resilience. Accelerating corporate reforms could boost investment and productivity by improving capital allocation and access to finance. Given the aging population and skill mismatch, Latvia should continue to address reforms to boost high-skilled labor supply which will enhance investment in productivity. Efforts should focus on promoting training and internal labor mobility toward priority sectors (green and transition, digitalization, health). Further streamlining product and service markets regulations could boost competition, innovation, and productivity. Staff welcomes the ongoing overhaul of the administrative procedures and their digitalization. Implementing measures to promote digital transformation of the economy could help reduce labor shortages and support productivity. Regarding the green and energy transition, more vigorous climate policy is needed. Staff encourages the authorities to expedite the adoption of the climate law and the National Energy and Climate Plan (NECP). The authorities should aim to achieve a robust balance between fiscal support, carbon pricing or taxation, and norms while addressing distributional concerns. Staff welcomes the ongoing work on climate adaptation. Latvia should continue to enhance energy security, and boost investment in clean energy and connection.

    Table 1. Latvia: Selected Economic Indicators, 2019–25

     

    2019

    2020

    2021

    2022

    2023

    2024

    2025
               

    Proj.

    National Accounts

        (Percentage change, unless otherwise indicated)

    Real GDP

    0.6

    -3.5

    6.7

    3.0

    -0.3

    1.7

    2.4

    Private consumption

    0.0

    -4.3

    7.3

    7.2

    -1.3

    2.4

    2.3

    Public consumption

    5.6

    2.1

    3.5

    2.8

    7.0

    2.3

    2.2

    Gross capital formation

    0.7

    -10.0

    24.9

    -3.6

    5.1

    2.6

    2.7

    Gross fixed capital formation

    1.5

    -2.2

    7.2

    0.6

    8.2

    3.1

    3.1

    Exports of goods and services

    1.3

    0.4

    9.0

    10.3

    -5.9

    3.0

    2.6

    Imports of goods and services

    2.2

    -1.1

    15.1

    11.1

    -2.8

    3.0

    2.5

    Nominal GDP (billions of euros)

    30.6

    30.1

    33.3

    38.4

    40.3

    42.4

    44.8

    GDP per capita (thousands of euros)

    15.9

    15.8

    17.6

    20.5

    21.4

    22.5

    23.9

    Savings and Investment

    		              

    Gross national saving (percent of GDP)

    22.2

    24.3

    21.1

    20.3

    19.0

    19.1

    18.9

    Gross capital formation (percent of GDP)

    22.8

    21.4

    25.0

    25.0

    23.0

    22.8

    22.5

    Private (percent of GDP)

    18.9

    17.2

    21.2

    21.7

    19.4

    18.7

    18.6

    HICP Inflation

    		              

    Headline, period average

    2.7

    0.1

    3.2

    17.2

    9.1

    2.0

    2.4

    Headline, end-period

    2.1

    -0.5

    7.9

    20.7

    0.9

    3.9

    1.6

    Core, period average

    2.7

    1.1

    2.0

    11.3

    9.8

    3.3

    3.1

    Core, end-period

    1.9

    0.9

    4.7

    15.2

    4.0

    3.7

    2.8

    Labor Market

    		              

    Unemployment rate (LFS; period average, percent)

    6.3

    8.1

    7.6

    6.9

    6.5

    6.5

    6.5

    Nominal wage growth

    7.2

    6.2

    11.7

    7.5

    11.9

    8.5

    7.0

    Consolidated General Government 1/

    (Percent of GDP, unless otherwise indicated)

    Total revenue

    37.3

    37.7

    37.6

    37.2

    38.5

    38.6

    38.7

    Total expenditure

    37.7

    41.4

    43.2

    40.9

    42.0

    42.0

    41.4

    Basic fiscal balance

    -0.4

    -3.7

    -5.5

    -3.7

    -3.5

    -3.4

    -2.7

    ESA fiscal balance

    -0.5

    -4.4

    -7.2

    -4.6

    -2.2

    -2.9

    -2.7

    General government gross debt

    36.7

    42.7

    44.4

    41.8

    43.6

    44.7

    44.8

    Money and Credit

    Credit to private sector (annual percentage change)

    -2.3

    -4.4

    11.9

    7.1

    5.1

    …

    …

    Broad money (annual percentage change)

    8.0

    13.1

    9.2

    5.1

    2.7

    …

    …

    Balance of Payments

    		              

    Current account balance

    -0.6

    2.9

    -3.9

    -4.8

    -4.0

    -3.7

    -3.5

    Trade balance (goods)

    -8.6

    -5.1

    -8.3

    -10.7

    -9.3

    -8.8

    -8.8

    Gross external debt

    117.1

    122.1

    110.5

    102.3

    98.5

    94.9

    86.6

    Net external debt 2/

    18.1

    13.6

    10.3

    8.1

    7.5

    10.7

    13.5

    Exchange Rates

    		              

    U.S. dollar per euro (period average)

    1.12

    1.14

    1.18

    1.05

    1.08

    …

    …

    REER (period average; CPI based, 2005=100)

    123.0

    124.5

    125.0

    129.7

    136.8

    …

    …

    Terms of trade (annual percentage change)

    0.9

    1.8

    -1.6

    -0.6

    3.6

    -0.1

    0.9

    Sources: Latvian authorities; Eurostat; and IMF staff calculations.

    1/ National definition. Includes economy-wide EU grants in revenue and expenditure.

    2/ Gross external debt minus gross external assets.

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

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

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Boris Balabanov

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/05/pr-24319-latvia-imf-executive-board-concludes-2024-article-iv-consultation

    MIL OSI

    MIL OSI Russia News –

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

    Source: IMF – News in Russian

    September 6, 2024

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

    Following a series of shocks in recent years, Togo continues to face headwinds, including persistent challenges of food security and terrorist attacks, while broader development needs remain acute. Fiscal expansion implemented in response to the shocks has helped preserve robust economic growth but has also pushed up public debt, reversing the debt reduction achieved during the 2017–20 ECF-arrangement, eroding fiscal space and buffers to absorb shocks, and contributing to regional vulnerabilities in the West African Economic and Monetary Union (WAEMU). In response to these challenges, in March 2024, the International Monetary Fund approved the authorities’ request for a new arrangement under the Extended Credit Facility.

    Against a background of a substantial strengthening of fiscal revenue and a beginning of fiscal consolidation in 2023, the macroeconomic outlook is broadly favorable. Growth is expected to remain robust, while fiscal revenue is expected to rise further. There are no substantial domestic or external disequilibria, with low inflation and a well-contained current account deficit.

    The outlook is however subject to elevated risks, including from a potential intensification of terrorism, potential difficulties in securing affordable regional financing, and banking sector challenges. In the longer run, economic performance is also subject to the risk of weakening debt sustainability should efforts to achieve sufficient fiscal consolidation while maintaining robust growth disappoint.

    The 2024 Article IV consultation focused on how the Togolese authorities can best (i) anchor macroeconomic stability by ensuring fiscal consolidation to enhance debt sustainability, (ii) conduct structural reforms to lay the basis for sustained growth, and (iii) strengthen social inclusion to accelerate progress towards the Sustainable Development Goals and support medium-term growth prospects.  

    Executive Board Assessment[2]

    Executive Directors agreed with the thrust of the staff appraisal. They commended the authorities’ policies, which enabled Togo to weather the series of shocks of recent years relatively well, with continued growth and progress towards the Sustainable Development Goals. However, significant challenges remain, including from the sharp increase in the debt burden in recent years and terrorist attacks at the northern border, while development needs remain acute. Against this background, Directors encouraged the authorities to maintain full commitment to the recently approved ECF arrangement with the Fund and continue their efforts to strengthen debt sustainability and implement reforms to boost inclusive growth and reduce poverty. These efforts should be well communicated to ensure social cohesion and supported by the Fund’s capacity development.

    Directors underscored the importance of continued growth‑friendly fiscal consolidation, guided by the dual fiscal anchor adopted under the ECF, to ensure debt sustainability and create fiscal buffers. They welcomed the recent large increase in fiscal revenue and called for further measures, comprising tax policy and revenue administration elements. Such measures could be considered as a part of an overarching fiscal strategy that considers taxation and spending together to help reach both efficiency and income distribution goals. In that context, creating space for priority spending, particularly on health and education, will be imperative to promote social inclusion while expanding cash transfers could further improve the social safety nets. The authorities should also continue to strengthen public financial management, including the oversight of state‑owned enterprises.

    Directors noted that to boost growth it will be important to strengthen the business environment, accelerate productivity gains, and attract more private investment. Strengthening of the governance and anti‑corruption frameworks will be key. In this regard, they encouraged the authorities to request an IMF governance diagnostic assessment. Directors noted the dynamic economic activity at the special economic zone while encouraging cautious implementation of industrial policies, considering their cost and benefits. The authorities should also continue addressing the existing financial sector vulnerabilities and increasing the capacity of banks to provide credit to the private sector. Improving access to infrastructure and utilities and building climate resilience, potentially with support by an RSF arrangement, remains key. Further enhancing data provision to the Fund is also important.

    It is expected that the next Article IV Consultation with Togo will be held in accordance with the Executive Board decision on consultation cycles for members with Fund arrangements.

    Table 1. Togo: Selected Economic and Financial Indicators, 2020–29

     

    2020

    2021

    2022

    2023

    2024

    2025

    2026

    2027

    2028

    2029

    Estimates

    Projections

    (Percentage change, unless otherwise indicated)

    Real GDP

    2.0

    6.0

    5.8

    5.6

    5.3

    5.3

    5.5

    5.5

    5.5

    5.5

    Real GDP per capita

    -0.4

    3.5

    3.3

    3.1

    2.8

    2.8

    3.0

    3.0

    3.0

    3.0

    GDP deflator

    1.8

    2.5

    3.7

    2.9

    2.2

    2.0

    2.0

    2.0

    2.0

    2.0

    Consumer price index (average)

    1.8

    4.5

    7.6

    5.3

    2.7

    2.0

    2.0

    2.0

    2.0

    2.0

    GDP (CFAF billions)

    4,253

    4,621

    5,069

    5,507

    5,927

    6,366

    6,850

    7,371

    7,932

    8,536

    Exchange rate CFAF/US$ (annual average level)

    575

    554

    622

    606

    …

    …

    …

    …

    …

    …

    Real effective exchange rate (appreciation = –)

    -2.0

    -1.4

    2.3

    -5.4

    …

    …

    …

    …

    …

    …

    Terms of trade (deterioration = –)

    -1.3

    6.5

    -0.1

    4.4

    -2.7

    -2.5

    0.4

    1.1

    1.0

    0.7

    Monetary survey

     (Percentage change of beginning-of-period broad money)

    Net foreign assets

    14.1

    5.6

    -0.6

    6.2

    2.7

    2.4

    3.0

    2.8

    2.2

    2.2

    Net credit to government

    -1.6

    -0.3

    8.0

    0.2

    -2.9

    1.0

    1.2

    2.0

    0.2

    0.2

    Credit to nongovernment sector

    0.2

    6.0

    10.7

    1.5

    9.4

    4.0

    4.4

    4.6

    4.8

    4.8

    Broad money (M2)

    11.4

    12.3

    14.9

    8.5

    8.8

    7.4

    7.6

    7.6

    7.6

    7.6

    Velocity (GDP/end-of-period M2)

    2.1

    2.1

    2.0

    2.0

    2.0

    2.0

    2.0

    2.0

    2.0

    2.0

    Investment and savings

    (Percent of GDP, unless otherwise indicated)

    Gross domestic investment

    21.4

    23.4

    25.9

    28.0

    26.0

    24.4

    25.0

    25.8

    26.7

    27.2

    Government

    9.3

    8.2

    9.7

    11.5

    9.3

    7.3

    7.7

    8.3

    8.9

    9.4

    Nongovernment

    12.1

    15.2

    16.2

    16.5

    16.7

    17.1

    17.3

    17.5

    17.8

    17.8

    Gross national savings

    21.1

    21.2

    22.5

    25.1

    22.7

    21.0

    21.9

    23.3

    24.4

    24.9

    Government

    2.2

    3.6

    1.4

    4.8

    4.4

    4.3

    4.7

    5.3

    5.9

    6.4

    Nongovernment

    18.9

    17.6

    21.0

    20.3

    18.3

    16.8

    17.2

    18.0

    18.5

    18.5

    Government budget

    Total revenue and grants

    16.6

    17.1

    17.6

    19.8

    19.0

    18.8

    19.2

    19.7

    20.1

    20.5

    Revenue

    14.1

    15.3

    15.1

    16.8

    16.9

    17.3

    17.8

    18.3

    18.7

    19.3

    Tax revenue

    12.5

    14.0

    13.9

    14.8

    15.2

    15.7

    16.2

    16.7

    17.2

    17.7

    Expenditure and net lending (excl. banking sector operation)

    23.7

    21.8

    26.0

    26.6

    23.9

    21.8

    22.2

    22.7

    23.1

    23.5

    Overall primary balance (commitment basis, incl. grants)

    -4.7

    -2.5

    -5.9

    -3.9

    -4.0

    -0.5

    -0.6

    -0.8

    -1.0

    -1.1

    Overall balance (commitment basis, incl. grants, excl. banking sector operations)

    -7.0

    -4.7

    -8.3

    -6.7

    -4.9

    -3.0

    -3.0

    -3.0

    -3.0

    -3.0

    Overall balance (commitment basis, incl. grants)

    -7.0

    -4.7

    -8.3

    -6.7

    -6.4

    -3.0

    -3.0

    -3.0

    -3.0

    -3.0

    Overall primary balance (cash basis, incl. grants)

    -4.7

    -3.4

    -5.9

    -3.9

    -4.0

    -0.5

    -0.6

    -0.8

    -1.0

    -1.1

    Overall balance (cash basis, incl. grants, excl. banking sector operations)

    -7.1

    -5.6

    -8.3

    -6.7

    -4.9

    -3.0

    -3.0

    -3.0

    -3.0

    -3.0

    Overall balance (cash basis, incl. grants)

    -7.1

    -5.6

    -8.3

    -6.7

    -6.4

    -3.0

    -3.0

    -3.0

    -3.0

    -3.0

    External sector

    Current account balance

    -0.3

    -2.2

    -3.5

    -2.9

    -3.3

    -3.3

    -3.1

    -2.5

    -2.3

    -2.3

    Exports (goods and services)

    23.3

    23.7

    26.6

    25.5

    25.6

    25.5

    26.1

    26.3

    26.3

    26.2

    Imports (goods and services)

    -32.3

    -34.0

    -38.8

    -36.2

    -35.7

    -34.8

    -34.4

    -34.2

    -34.0

    -34.0

    External public debt1

    27.6

    27.3

    26.2

    25.9

    27.4

    28.7

    29.6

    30.4

    30.6

    30.2

    External public debt service (percent of exports)1

    6.9

    5.2

    8.3

    8.2

    8.4

    9.1

    9.1

    8.2

    7.2

    6.5

    Domestic public debt2

    34.6

    37.6

    41.2

    42.1

    42.4

    39.8

    36.9

    34.6

    32.8

    31.8

    Total public debt3

    62.2

    64.9

    67.4

    68.0

    69.8

    68.6

    66.5

    65.0

    63.4

    62.0

    Total public debt (excluding SOEs)4

    60.1

    63.0

    65.8

    66.6

    68.6

    67.6

    65.7

    64.3

    62.8

    61.5

    Present value of total public debt3

    …

    …

    …

    60.5

    61.0

    58.3

    54.7

    51.8

    49.1

    47.4

    Sources: Togolese authorities and IMF staff estimates and projections.

    1 Includes state-owned enterprise external debt.

    2 Includes domestic arrears and state-owned enterprise domestic debt.

    3 Includes domestic arrears and state-owned enterprise debt.

    4 Includes domestic arrears.

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

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

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Tatiana Mossot

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/06/pr24320-togo-imf-exec-board-concludes-2024-aiv-consult

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI United Nations: As floods hit dozens of countries, WFP urges investment to protect weather-battered communities

    Source: World Food Programme

    Photo: WFP/Mumit M. Bangladesh is currently grappling with severe floods that have impacted nearly 6 million people, particularly in the southeastern and northeastern regions of the country.

    ROME – As the United Nations World Food Programme (WFP) responds to flood emergencies across the globe, the agency is calling for investment and concerted action to prepare vulnerable communities for more frequent extreme climate events that threaten to damage crops, displace communities and disrupt food systems.

    The number of floods in WFP’s areas of operation has increased this year, with at least 21 countries already facing significant flooding, and more expected. The floods exacerbate ongoing crises and threaten food security, while also slowing down efforts to deliver critical relief. In 2023, climate extremes drove 72 million people into crisis or emergency levels of hunger, a 26 percent increase from the previous year. 

    “Rich and poor countries alike are suffering severe floods and record-breaking storms, and with each passing year extreme climate events are becoming the new normal,” said WFP Assistant Executive Director Valerie Guarnieri. “When flood events come on top of conflict, displacement and hunger, they multiply the strain on communities and governments. Investing in early action and preparedness is essential to protect people’s access to food and this is a core priority for WFP.”

    In 2023, WFP assisted almost 18 million people in 60 countries with solutions and services to manage climate risks. WFP’s support for early warning systems and ‘anticipatory action’ – where help arrives before disaster strikes – reached 36 countries, covering over 4.1 million people. WFP-supported climate risk insurance programmes provided 5.1 million people in 27 countries with financial protection.

    In flood-affected Bangladesh, WFP recently provided cash assistance to 120,000 families before floods hit – one of WFP’s largest anticipatory action programmes to date. WFP has also been supporting cash-for-work schemes that help rebuild critical infrastructure. From Bangladesh to Somalia, WFP is working with governments and communities to analyse climate risks, strengthen early warning systems and expand climate protection.

    “Climate shocks are predictable. By investing in preparedness, we can help reduce the impact of extreme weather and safeguard food security amid the climate crisis,” said Guarnieri. Evidence generated by WFP in Bangladesh and Nepal shows that anticipatory action investments have reduced the cost of humanitarian responses to floods in affected areas by up to 50 percent.

    The recent spate of floods worldwide has seen WFP responding on several fronts, most recently in Asia and West Africa. 

    • In Myanmar, on the government’s request, WFP is gearing up to expand its flood response operations to also reach those affected by Yagi, one of the strongest typhoons to hit Southeast Asia in decades. 
    • In Laos, WFP teams are on the ground helping the government and partners assess needs and, over the coming days, 100 metric tonnes of rice will be distributed to affected families. 
    • Chad, Mali, Niger, and Nigeria have been among the hardest hit in some of the worst flooding Western and Central Africa have ever experienced, with more than four million people have been affected. WFP is ramping up its support, targeting a million people across the region – distributing food and cash. WFP is also advocating for expanded anticipatory action and improvements to early warning systems to help respond more effectively. 
    • In war-torn Sudan, the worst floods in 40 years are adding to the misery caused by the war. WFP has provided food assistance to 41,000 people affected by the flooding and continues operations to assist those affected by the conflict. But floods are complicating the delivery of lifesaving aid.
    • In South Sudan, massive flooding is affecting over 735,000 people, most of whom already face extremely high levels of food insecurity. WFP has been planning for a worst-case scenario and initially plans to reach 1.2 million people from mid-September. The flooding is also creating challenges for WFP’s logistics operations, with a sharp increase in airdrops as many communities have become inaccessible.

    Forecasts suggest major flooding events will likely continue across Asia, the Sahel, Sudan and South Sudan over the next few months. As La Niña takes over from El Niño, floods and increased tropical storm activity are more likely in Southern Africa, northern South America and Southeast Asia. In addition to the La Niña pattern, the current extremely warm ocean temperatures are fuelling what is expected to be an exceptionally active 2024 hurricane season in the Caribbean.

    For photos, click here.

    #                 #                   #

    The United Nations World Food Programme is the world’s largest humanitarian organization saving lives in emergencies and using food assistance to build a pathway to peace, stability and prosperity for people recovering from conflict, disasters and the impact of climate change.

    Follow us on X, formerly Twitter, via @wfp_media 

    MIL OSI United Nations News –

  • MIL-OSI USA: Deputy Administrator Isobel Coleman at Transforming Global Humanitarian Response for the 21st Century

    Source: USAID

    DEPUTY ADMINISTRATOR ISOBEL COLEMAN: Thank you, Secretary [Antony] Blinken, Foreign Secretary [David] Lammy, Mr. [Ilan] Goldfajn, and Mr. [Børge] Brende for bringing us together today. 

    As you all have emphasized, every year, global humanitarian needs reach record highs. Today, more than 80 percent of the countries where USAID works, encompassing roughly two billion people, are fragile or conflict-affected states. 

    Our humanitarian assistance spending in response to crises has tripled in the last decade, while development assistance has been flat.  

    In other words, we’re dedicating more and more of our resources to responding to crises – instead of investing in long-term efforts to prevent them. 

    This is not sustainable.

    The solution requires all of us – humanitarian, development, and peace practitioners, governments, and the private sector – to more effectively meet the staggering global humanitarian needs while continuing to drive development gains. 

    This is why, in January, USAID launched an Agency-wide initiative to align our humanitarian, development, and peace efforts across our policy, planning, and programming – so that even while responding to crises, we are also making critical investments in long term stability and prevention. 

    We are taking practical steps to change the way we work, such as conducting an information campaign to increase the use of existing award flexibilities, aligning our humanitarian and development strategic planning processes, and co-hosting a global forum with the UK, Germany, the World Bank, UNICEF, and WFP on social protection in fragility and conflict.

    USAID is also leveraging funding from the Global Fragility Act to facilitate the kinds of private investment that can be so pivotal to preventing and more sustainably addressing global humanitarian needs. 

    Today, I am pleased to announce that we have partnered with the US Development Finance Corporation to create a new specialized unit to focus on identifying promising investment opportunities in fragile environments – where investments are often more complicated, riskier, and time-consuming. 

    We are eager to partner with you in catalyzing these critical investments, which align with so many of the goals we’ve discussed today. 

    I commend this group for your commitment to breaking down silos and identifying more sustainable and cost-effective ways to address the staggering global humanitarian needs we face today. 

    USAID is committed to advancing this agenda with you. 

    MIL OSI USA News –

  • MIL-OSI USA: USAID Joins PepsiCo, Unilever, Danone, McCormick & Company, and Nespresso to Launch Collaboration to Advance Women for Resilient Agricultural Supply Chains

    Source: USAID

    Today, USAID joined consumer goods multinational companies PepsiCo, Unilever, Danone, McCormick & Company, and Nespresso in launching a new public-private partnership that aims to accelerate gender equality and enhance environmental sustainability in agricultural supply chains. The new initiative, Advancing Women for Resilient Agricultural Supply Chains, aligns with the Women in the Sustainable Economy (WISE) initiative – a partnership launched by Vice President Kamala Harris in 2023 to bolster women’s economic security in sectors that address climate change. 

    With a planned, collective investment of $50 million to start – including over $11 million of USAID funding – this new agricultural supply chain initiative will help catalyze industry-level change through learning, scaling, and providing evidence on how supporting women in agricultural supply chains can help deliver environmental sustainability goals. The initiative will drive scale by bringing in new organizations and additional funds, with a total target of $90 million over the next five years. 

    In parallel, USAID also welcomed the Skoll Foundation as the newest partner to WISE through its support of the USAID-led Climate Gender Equity Fund – a public-private partnership with Amazon, Reckitt, the UPS Foundation, and the Visa Foundation that seeks to increase access to climate finance for women-led and women-benefiting organizations working at the forefront of climate action. Three of its newest grantees – Altree Capital, The Rallying Cry, and Villgro Philippines – were also announced. 

    Finally, Acumen, Germany, Heading for Change, the Republic of Cyprus, and the United Kingdom announced $339 million in new aligned commitments to advance the WISE Initiative through their independent efforts that advance WISE objectives. The Millennium Challenge Corporation, the U.S. International Development Finance Corporation, and the U.S. Department of Energy announced $289 million in additional aligned U.S. government commitments to the WISE initiative. In all, today’s announcements total $681 million in direct and aligned commitments – bringing the collective commitment of 33 governments, corporations, foundations, and civil society organizations to a total of over $2 billion towards the WISE Initiative. 

    For more information about the WISE Initiative, please visit ClimateLinks or email wise@usaid.gov.

    Advancing Women for Resilient Agricultural Supply Chains Women in the Sustainable Economy WISE

    MIL OSI USA News –

  • MIL-OSI: PayMate Announces Intent to Acquire DigiAsia

    Source: GlobeNewswire (MIL-OSI)

    Valuing DigiAsia at US $400 Million

    Introduces PayMate in Indonesia with Immediate Market Share Expansion, Targeting 2025 Public Listing

    MUMBAI, India and NEW YORK, Sept. 24, 2024 (GLOBE NEWSWIRE) — PayMate India (“PayMate”), a leading provider of B2B payments and services with reputable investors such as Visa & Lightbox, today announced that it has entered into a binding term sheet (the “Proposed Transaction”) for the potential acquisition of DigiAsia Bios Pte Ltd., Singapore, a leading Fintech-as-a-Service (FaaS) company in Indonesia and a fully owned subsidiary of DigiAsia Corporation (NASDAQ: FAAS) (“DigiAsia”).

    Under the terms of the Proposed Transaction, an enterprise valuation of US $400 Million for DigiAsia’s business has been determined. Additionally, post the Proposed Transaction, PayMate intends to invest up to US $25 Million in cash, the aggregate financing structure and terms will be finalized in mutual agreement. PayMate and DigiAsia will continue joint due diligence on both entities, identification of the right transaction structure, entering into definitive agreements and the necessary corporate and regulatory approvals of PayMate and DigiAsia which is expected to take up to 60 days. Subsequent to the closing of the Proposed Transaction, PayMate intends to initiate proceedings to list the combined entity in India.

    About PayMate

    PayMate India Ltd – a leading digital B2B payments company that empowers businesses of all sizes to enhance financial efficiency and streamline B2B payments. The platform simplifies and digitizes B2B payment processes, optimizing working capital, and ensuring timely supplier payments. PayMate’s solutions encompass Accounts Payable, Accounts Receivable, Invoice Discounting, Cross Border and Embedded Finance. In FY24, PayMate processed USD 10.5 billion in transactions, serving over 522,000 customers worldwide. With a strong presence in India, CEMEA, and APAC regions, PayMate is the trusted partner for businesses seeking to streamline payment processes.

    For more information, visit https://paymate.in/ or follow us on LinkedIn.

    About DigiAsia

    DigiAsia is a leading Fintech as a Service (FaaS) provider operating a B2B2X model offering its complete Fintech solution in emerging markets. DigiAsia’s fintech architecture offers small and medium business enterprises (SMEs) comprehensive embedded finance APIs to streamline processes across the commerce value chain of distributors and customers. DigiAsia’s embedded fintech solutions equally address democratizing digital finance access that supports financial inclusion of underbanked merchants and consumers in emerging markets resulting in growth for enterprise business. The suite of B2B2X solutions provided by DigiAsia include, but are not limited to, cashless payments, digital wallets, digital banking, remittances and banking licenses. DigiAsia has recently established a strategic initiative to develop its embedded FaaS enterprise solution with AI capabilities in Southeast Asia, India, and the Middle East, with plans for global expansion. For more information, please visit DigiAsia’s Corporate website here or Investor Relations website here.

    Forward-Looking Statements:

    This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “anticipate”, “project”, “targets”, “optimistic”, “confident that”, “continue to”, “predict”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements including, but not limited to, statements concerning DigiAsia and the Company’s operations, financial performance and condition are based on current expectations, beliefs and assumptions which are subject to change at any time. DigiAsia cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world including those discussed in DigiAsia’s Form 20-F under the headings “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business Overview” and other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date it is made and DigiAsia specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.

    PayMate Contact DigiAsia Company Contact:
       
    Vishvanathan Subramanian Subir Lohani
       
    Wholetime Director & Chief Financial Officer Chief Financial Officer and Chief Strategy Officer
       
    91-22-2661 6178 646-480-0142
       
    Email: corporate@paymate.co.in Investor Contact:
       
      MZ North America
       
      Email: FAAS@mzgroup.us

    The MIL Network –

  • MIL-OSI: Eightco Regains Compliance with Nasdaq Listing Requirements

    Source: GlobeNewswire (MIL-OSI)

    Easton, PA, Sept. 24, 2024 (GLOBE NEWSWIRE) — Eightco Holdings Inc. (NASDAQ: OCTO) (the “Company” or “Eightco”) today announced that the Company received formal notice from The Nasdaq Stock Market LLC (“Nasdaq”) that the Company has regained compliance with Nasdaq’s minimum bid price requirement (the “Bid Price Requirement”) set forth in Nasdaq Listing Rule 5550(a)(2), as well as Nasdaq’s stockholders’ equity requirement (“Equity Requirement”) set forth in Nasdaq Listing Rule 5550(b)(1).

    To regain compliance with the Bid Price Requirement, the Company’s Common Stock was required to maintain a minimum closing bid price of $1.00 or more for a minimum of 10 consecutive trading days. The Notice confirmed that the Company’s Common Stock maintained a closing bid price above $1.00 for the last 20 consecutive trading days. Accordingly, this requirement had been met.

    The notice also indicated that the Company had reported stockholders’ equity of $13,428,553 in its recently filed Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which exceeded the required minimum stockholders’ equity of $2,500,000. As a result, the Company had also regained compliance with the Equity Requirement.

    The Company’s Common Stock will continue to trade on The Nasdaq Capital Market tier of Nasdaq under the symbol “OCTO”.

    About Eightco

    Eightco (NASDAQ: OCTO) is committed to growth of its subsidiaries, made up of Forever 8, an inventory capital and management platform for e-commerce sellers, and Ferguson Containers, Inc., a provider of complete manufacturing and logistical solutions for product and packaging needs, through strategic management and investment. In addition, the Company is actively seeking new opportunities to add to its portfolio of technology solutions focused on the e-commerce ecosystem through strategic acquisitions. Through a combination of innovative strategies and focused execution, Eightco aims to create significant value and growth for its portfolio companies and stockholders.

    For additional information, please visit www.8co.holdings

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical fact could be deemed forward looking. Words such as “plans,” “expects,” “will,” “anticipates,” “continue,” “expand,” “advance,” “develop” “believes,” “guidance,” “target,” “may,” “remain,” “project,” “outlook,” “intend,” “estimate,” “could,” “should,” and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based on management’s current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: Eightco’s ability to maintain compliance with the Nasdaq’s continued listing requirements; unexpected costs, charges or expenses that reduce Eightco’s capital resources; Eightco’s inability to raise adequate capital to fund its business; Eightco’s inability to innovate and attract users for Eightco’s products; future legislation and rulemaking negatively impacting digital assets; and shifting public and governmental positions on digital asset mining activity. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Eightco’s actual results to differ from those contained in forward-looking statements, see Eightco’s filings with the Securities and Exchange Commission (the “SEC”), including in its Annual Report on Form 10-K filed with the SEC on April 1, 2024. All information in this press release is as of the date of the release, and Eightco undertakes no duty to update this information or to publicly announce the results of any revisions to any of such statements to reflect future events or developments, except as required by law.

    For further information, please contact:
    Investor Relations
    investors@8co.holdings

    The MIL Network –

  • MIL-OSI: Diamondback Energy, Kinetik Holdings and EPIC Midstream Announce Transformative Transactions for EPIC Crude

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Sept. 24, 2024 (GLOBE NEWSWIRE) — Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik”) and EPIC Midstream Holdings LP (“EPIC Midstream”), today announced a series of transactions to support the continued growth and strengthened financial profile of EPIC Crude Holdings, LP (“EPIC Crude”), an affiliate of EPIC Midstream, including:  

    • Diamondback and Kinetik (together, the “Partners”) acquired a 30% equity interest in EPIC Crude. The Partners now each own 27.5% of EPIC Crude.
    • EPIC Midstream continues to own a 45% equity interest in and manage the operations of EPIC Crude.
    • Diamondback is converting its existing commitment on EPIC Crude into a significantly larger volume commitment of 200 MBpd to accommodate additional crude barrels from Diamondback’s newly completed merger with Endeavor Energy Resources. As a result of that merger, Diamondback is the third largest crude producer in the Permian Basin.
    • Kinetik is also entering into a new transportation arrangement with EPIC Crude and a new connection between Kinetik’s crude gathering system and the EPIC Crude pipeline.
    • The combined long-term volume commitments from the Partners are expected to commence in 2025 and extend until 2035, fully supported by minimum volume commitments (“MVC”) and representing over 33% of EPIC Crude’s volume capacity.
    • EPIC Crude and its Partners are continuing to focus on reducing controllable costs and enhancing financial returns which will further maximize value for all stakeholders of EPIC Crude.
    • Taken together, these actions will position EPIC Crude for long-term success while increasing its long-term strategic alignment with Diamondback and Kinetik.

    EPIC Crude continues to transport more than 600 MBpd and has secured MVCs or contracts for approximately 90% of 2025 total volumes while substantially extending the weighted average contract life. EPIC Crude’s differentiated strategy helps its customers gain access to all markets and docks in Corpus Christi, in addition to the Dated Brent market through the EPIC dock.

    “Along with our execution over the past couple of years, these transactions position EPIC Crude for continued strategic and financial success,” said Brian Freed, Chief Executive Officer of EPIC Midstream. “The business continues to be transformed, and the strategic importance of this asset is supported by our Partners’ long-term commitments. EPIC Crude continues to be a critical asset for Permian Basin crude production egress to the Corpus Christi market.”

    “This series of transactions signifies a major step in ensuring reliable, cost-effective takeaway out of the basin for our expanded crude portfolio for a significant period of time, and positions EPIC Crude to be our preferred crude pipeline given our increased ownership stake and expanded governance role in the joint venture,” said Kaes Van’t Hof, President and Chief Financial Officer of Diamondback.

    “We are excited to partner with Diamondback, Ares Management funds and EPIC Midstream on these transactions,” said Jamie Welch, President and Chief Executive Officer of Kinetik. “Our volume commitment, alongside Diamondback, will generate incremental value for our crude customers seeking access to a premium market.”

    “Going forward, we believe EPIC Crude is even better positioned for shared business, customer and owner success,” said Robert Kimmel, Partner in the Ares Private Equity Group. “We remain excited to partner with Brian and his team in this transformative next chapter for EPIC Crude.”

    EPIC Crude’s financial profile continues to strengthen and is supported by continued improvement expected in its credit ratings. Its improving leverage, investment grade customers, and long-term contract profile provide a strong foundation for the business.

    EPIC Crude has the only remaining opportunity for a large-scale, highly economic crude oil pipeline expansion in the Permian. The potential expansion project is highly economic given its limited capital requirements, mostly focused on additional pumps for the existing pipeline. EPIC Crude anticipates the potential expansion project will be carried out with fully underwritten contracts, with the Partners having an option for approximately one-third of the expansion capacity.

    About EPIC Midstream

    EPIC was formed in 2017 to build, own and operate midstream infrastructure in the Delaware, Midland and Eagle Ford basins. EPIC’s Crude Oil Pipeline and NGL Pipeline each span approximately 700 miles and transport crude and natural gas liquids for delivery from the Permian and Eagle Ford basins into the Corpus Christi market. The Crude Oil Pipeline connects to the Port of Corpus Christi, including EPIC’s Marine Terminal, third-party export terminals and local refineries. EPIC’s NGL Pipeline has connectivity to EPIC’s operated fractionation complex in Robstown, Texas as well as Gulf Coast refiners, petrochemical companies and export markets. EPIC is a portfolio company of funds managed by the Private Equity Group of Ares Management. For more information, visit www.epicmid.com.

    About EPIC Crude

    EPIC Crude Holdings, LP (“EPIC Crude”) was formed in 2017 to build and operate the EPIC Crude Oil Pipeline, a 700-mile, 30” crude oil pipeline that extends from Orla, Texas to the Port of Corpus Christi and services the Midland, Delaware and Eagle Ford basins. The Crude Oil Pipeline is currently operating at a capacity of greater than 600,000 barrels per day (bpd) and has a maximum capacity of 1,000,000 bpd, as well as total operational storage of approximately 7,500,000 barrels. EPIC Crude includes terminals in Orla, Pecos, Saragosa, Crane, Wink, Midland, Helena and Gardendale, with Port of Corpus Christi connectivity and export access.

    About Diamondback Energy, Inc.

    Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

    About Kinetik Holdings Inc.

    Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com. 

    Investor and Media Contacts:

    EPIC Midstream Holdings, LP
    Mike Garberding
    Chief Financial Officer        
    (346) 231-1776
    mike.garberding@epicmid.com

    Kinetik
    Alex Durkee
    Investor Relations        
    (713) 574-4743
    adurkee@kinetik.com

    Diamondback
    Adam Lawlis
    Investor Relations
    (432) 221-7467
    alawlis@diamondbackenergy.com

    The MIL Network –

  • MIL-OSI: Silvaco Expands its Victory TCAD and Digital Twin Modeling Platform to Planar CMOS, FinFET and Advanced CMOS Technologies

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., Sept. 24, 2024 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO, “Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation, today announced that its 2024 TCAD Baseline Release simulation platform with digital twin modeling, provides support for planar CMOS, FinFET and Gate-All-Around (GAA) transistor technologies, enabling semiconductor companies to accelerate technology development.

    Silvaco’s latest TCAD technology platform, enables advanced CMOS Process and Device simulation to support the development of next-generation semiconductor devices. This platform boosts performance, yield and efficiency across the evolving semiconductor design and manufacturing landscape. The solution enables highly accurate 3D process simulation, using digital twin-like precision and integrates stress simulation to model deformed structures. Additionally, the platform supports cryogenic applications through an atomistic quantum transport approach, enabling straightforward modeling of transistor structures down to 1 Kelvin.

    “Our TCAD platform has gained significant traction in the Display, Photonics, Memory and Power Semiconductor markets, where our solutions have been instrumental in driving innovation and enhancing performance,” said Dr. Babak Taheri, Chief Executive Officer, Silvaco. “We have now extended our comprehensive suite of tools to the advanced CMOS market, enabling next-generation advancements in technologies to address growing markets such as foundries, 5G, AI and high-performance computing. Our newly released TCAD platform has been utilized by a strategic customer for the past few years and is now available for broad market adoption. This new capability for advanced CMOS technology enables customers to accelerate their technology development with significant cost savings.”

    “Nanotechnology, like GAA, exhibits advanced quantum physical effects,” said Tillmann Kubis, Associate Professor in the Elmore Family School of Electrical and Computer Engineering at Purdue University. “Over the past six years, our team of scientists has collaborated with Silvaco to enable the simulation of full devices, such as nanowires and GAAs, powered by NEMO5 which is an NEGF-based atomistic quantum transport simulation tool developed at Purdue and licensed by Silvaco. This collaboration is now enabling Silvaco’s TCAD simulation performance with atomistic accuracy.”

    “This latest release of our TCAD platform is the culmination of years of intensive development, refinement and industry collaboration in order to meet the demanding needs of designing in advanced CMOS process technologies,” said Eric Guichard, Senior VP and General Manager TCAD Business Unit, Silvaco. “The latest release of our TCAD platform now incorporates digital twin modeling for CMOS technologies, as well as atomistic simulation technologies to provide a highly competitive and attractive alternative solution for semiconductor companies designing in advanced Planar CMOS, FinFET and emerging GAA process technologies.”

    About Silvaco

    Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high-performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

    Safe Harbor Statement

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended, that are intended to be covered by the “safe harbor” provisions of those sections. Forward-looking statements include, but are not limited to, statements regarding the Company’s expectations, beliefs, intentions, plans, or strategies related to the release and adoption of its 2024 TCAD Baseline Release simulation platform, the anticipated benefits of this platform for advanced CMOS, FinFET, GAA, and other emerging technologies, and the potential advantages for customers in terms of performance, cost savings, and accelerated technology development. Forward-looking statements are typically identified by the use of words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “estimate,” “potential,” “continue,” and similar expressions, although not all forward-looking statements contain these words.

    These statements are based on the Company’s current expectations and assumptions and are subject to risks, uncertainties, and other factors, including those described in the Company’s most recent Quarterly Report on Form 10-Q and other filings with the Securities and Exchange Commission. These factors may cause actual results to differ materially from those expressed or implied by forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

    Media Contact
    Tyler Weiland
    +1 972-571-7834
    press@silvaco.com

    Investor Relations:
    Greg McNiff
    investors@silvaco.com

    The MIL Network –

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

    Source: BNZ statements

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








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

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

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

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

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

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

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

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

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

    Tracing BNZ’s roots in Wellington

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

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

    A brief history

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

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

     

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

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

     

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

    BNZ Centre, Wellington 1984

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

     
     

     

     

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

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

    MIL OSI Analysis –

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

    Source: BNZ statements

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

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

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

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

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

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

    MIL OSI Analysis –

  • MIL-OSI Reportage: The economy in ten pics

    Source: BNZ statements

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

     

    View PDF here

     

    Chart 1: So it begins

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

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

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

    Chart 2: Chop

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

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

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

    Chart 3: Joining the rate race

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

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

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

    Chart 4: US sniffles

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

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

    Chart 5: Jobs growth stalled

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

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

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

    Chart 6: Relocating for work

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

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

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

    Chart 7: Green f(lags)

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

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

    Chart 8: No retail respite

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

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

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

    Chart 9: Housing market in focus

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

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

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

    Chart 10: Food for thought

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

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

    To subscribe to Mike’s updates click here

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

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

    MIL OSI Analysis –

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

    Source: IMF – News in Russian

    September 10, 2024

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

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

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

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

    Executive Board Assessment

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

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

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

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

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

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

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

    Dominican Republic: Selected Economic Indicators

    Population (millions, 2023)                                                     10.7

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

    Quota                                     477.4 million SDRs / 0.10% of total

    Poverty (2021, share of population)                            23.9

    Main exports                                             tourism, gold, tobacco

    Unemployment rate (2023, percent)                             5.3

    Key export markets                                          U.S., Canada, Haiti

    Adult literacy rate (percent, 2022)                               95.5

    Projection

    2019

    2020

    2021

    2022

    2023

    2024

    2025

    Output

    (Annual percentage change, unless otherwise stated) 

    Real GDP

    5.1

    -6.7

    12.3

    4.9

    2.4

    5.1

    5.0

    Nominal GDP (RD$ billion)

    4,562

    4,457

    5,393

    6,261

    6,820

    7,453

    8,149

    Nominal GDP (US$ billion)

    89.0

    78.9

    94.5

    113.9

    121.8

    …

    …

    Output gap (in percent of potential output)

    -0.5

    -6.3

    -1.9

    -0.8

    -1.7

    -0.8

    -0.5

    Prices

     

     

     

     

     

     

     

    Consumer price inflation (end of period)

    3.7

    5.6

    8.5

    7.8

    3.6

    3.7

    4.0

    Exchange Rate

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

    51.2

    56.5

    57.1

    55.0

    56.0

    …

    …

    Exchange rate (RD$/US$ – eop) 1/

    52.9

    58.2

    57.3

    56.2

    58.0

    …

    …

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

    -3.2

    -8.1

    6.5

    6.3

    -1.9

    -2.9

    0.0

    Government Finances

    (In percent of GDP) 

    Consolidated public sector debt 2/

    53.3

    71.1

    62.2

    58.8

    59.3

    58.4

    57.4

    Consolidated public sector overall balance 2/

    -3.3

    -9.0

    -3.7

    -3.6

    -4.0

    -4.0

    -3.8

    Consolidated public sector primary balance

    0.5

    -4.2

    0.7

    0.0

    0.4

    0.7

    0.7

    NFPS balance

    -2.3

    -7.6

    -2.5

    -2.7

    -3.1

    -3.1

    -3.1

     Central government balance

    -3.5

    -7.9

    -2.9

    -3.2

    -3.3

    -3.1

    -3.1

    Revenues and grants

    14.4

    14.2

    15.6

    15.3

    15.7

    16.3

    15.2

    Primary spending

    15.1

    18.9

    15.4

    15.7

    15.8

    15.9

    14.8

    Interest expenditure

    2.7

    3.2

    3.1

    2.8

    3.1

    3.4

    3.5

    Rest of NFPS

    1.1

    0.3

    0.4

    0.6

    0.2

    0.0

    0.0

    Financial Sector

    (Annual percentage change; unless otherwise stated) 

    Broad money (M3)

    11.7

    21.2

    13.4

    6.3

    14.3

    11.5

    10.7

    Credit to the private sector

    11.8

    5.3

    11.6

    16.6

    19.6

    15.8

    11.5

    Net domestic assets of the banking system

    8.6

    2.5

    11.5

    9.7

    13.1

    13.5

    10.1

    Policy interest rate (in percent) 1/

    4.5

    3.0

    3.5

    8.5

    7.0

    …

    …

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

    6.7

    3.1

    2.3

    9.9

    8.6

    …

    …

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

    12.4

    9.9

    9.2

    13.5

    13.6

    …

    …

    Balance of Payments

    (In percent of GDP) 

    Current account

    -1.3

    -1.7

    -2.8

    -5.8

    -3.6

    -3.4

    -3.4

    Goods, net

    -10.2

    -8.6

    -12.5

    -15.1

    -13.0

    -12.9

    -12.7

    Services, net

    5.7

    1.8

    3.9

    4.8

    6.0

    6.6

    6.5

    Income, net

    3.2

    5.2

    5.7

    4.5

    3.5

    2.9

    2.7

    Capital account

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    Financial account 3/

    3.6

    5.3

    5.7

    6.7

    5.1

    3.5

    4.3

    Foreign direct investment, net

    3.4

    3.2

    3.4

    3.6

    3.6

    3.5

    3.5

    Portfolio investment, net

    2.4

    7.1

    2.2

    2.9

    2.0

    1.5

    1.3

    Financial derivatives, net

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    Other investment, net

    -2.3

    -5.1

    0.1

    0.2

    -0.5

    -1.5

    -0.5

    Change in reserves (-increase)

    -1.3

    -2.5

    -2.4

    -1.3

    -0.9

    -0.2

    -0.9

    GIR (in millions of US dollars)

    8,782

    10,752

    12,943

    14,441

    15,464

    15,660

    16,883

    Total external debt (in percent of GDP)

    41.9

    56.3

    48.6

    40.5

    43.3

    43.5

    42.5

     of which: Consolidated public sector

    27.3

    40.3

    35.6

    33.2

    33.9

    32.9

    32.2

     

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

    1/ Latest available.

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

    3/ Excluding reserves. 

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

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

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Meera Louis

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

    @IMFSpokesperson

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

    MIL OSI

    MIL OSI Russia News –

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

    Source: IMF – News in Russian

    September 10, 2024

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

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

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

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

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

    Executive Board Assessment

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

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

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

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

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

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

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

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

    Botswana: Selected Economic and Social Indicators, 2020-20291
     

    2020

    2021

    2022

    2023

    2024

    2025

    2026

    2027

    2028

    2029
     

    Projection

    (Annual percent change, unless otherwise indicated)

    National Income and Prices

    		                    

    Real GDP

    -8.7

    11.9

    5.5

    2.7

    1.0

    5.2

    4.8

    4.0

    4.0

    4.0

    Nonmineral

    -3.5

    7.9

    4.9

    2.6

    5.1

    4.1

    4.4

    4.4

    4.4

    4.5

    GDP per capita (US dollars)

    5,863

    7,244

    7,726

    7,250

    7,341

    8,003

    8,602

    9,146

    9,726

    10,437

    GNI per capita (US dollars)2

    5,872

    7,174

    7,220

    6,963

    7,150

    7,733

    8,290

    8,798

    9,344

    10,027

        Consumer prices (average)

    1.9

    6.7

    12.2

    5.1

    3.8

    4.5

    4.5

    4.5

    4.5

    4.5

    Diamond production (millions of carats)

    16.9

    22.7

    24.5

    25.1

    21.1

    23.3

    25.0

    25.5

    26.0

    26.4

    Money and Banking

    		                    

    Monetary Base

    -3.8

    -8.8

    -5.3

    33.1

    8.7

    9.7

    9.3

    9.2

    9.3

    9.3

    Broad money (M2)

    5.9

    5.0

    6.8

    9.3

    8.7

    9.7

    9.3

    9.2

    9.3

    9.3

    Credit to the private sector

    5.3

    5.4

    4.7

    5.6

    8.5

    11.0

    11.0

    11.0

    11.0

    11.0

    (Percent of GDP, unless otherwise indicated)

    Investment and Savings

    		                    

    Gross investment (including change in inventories)

    32.8

    27.4

    25.0

    30.3

    35.4

    34.1

    35.0

    35.5

    36.7

    37.5

    Public

    6.5

    5.5

    5.4

    7.1

    8.4

    7.0

    6.2

    6.0

    5.5

    5.2

    Private

    26.3

    21.9

    19.6

    23.2

    26.9

    27.1

    28.8

    29.5

    31.2

    32.3

    Gross savings

    26.6

    28.1

    24.9

    29.9

    33.4

    35.6

    36.2

    36.8

    37.3

    37.7

    Public

    -4.3

    0.7

    4.0

    3.0

    2.4

    4.2

    5.4

    6.1

    5.9

    5.5

    Private

    30.8

    27.5

    20.8

    26.9

    31.0

    31.4

    30.9

    30.7

    31.4

    32.2

    Central Government Finances3

    		                    

    Total revenue and grants

    25.6

    29.0

    29.1

    28.4

    28.2

    28.8

    28.6

    28.8

    27.6

    26.7

    SACU receipts

    9.1

    6.5

    5.5

    9.1

    9.6

    7.0

    6.4

    6.6

    6.3

    5.9

    Mineral revenue

    5.3

    10.6

    13.3

    7.4

    5.8

    9.5

    9.9

    9.8

    8.9

    8.4

    Total expenditure and net lending

    36.5

    31.4

    29.1

    33.1

    34.2

    30.6

    29.1

    28.3

    27.1

    26.2

    Overall balance (deficit –)

    -10.9

    -2.4

    0.0

    -4.7

    -6.0

    -1.7

    -0.5

    0.5

    0.5

    0.5

    Non-mineral non-SACU balance4

    -25.3

    -19.5

    -18.8

    -21.3

    -21.3

    -18.2

    -16.7

    -15.9

    -14.7

    -13.8

    Net Debt

    15.3

    12.8

    12.6

    16.9

    22.2

    21.6

    20.2

    18.2

    16.2

    14.6

    Total central government debt5

    18.7

    18.7

    18.1

    20.1

    22.6

    22.1

    20.7

    20.1

    20.0

    20.0

    Government deposits with the BoB6

    3.4

    5.9

    5.5

    3.3

    0.4

    0.4

    0.6

    1.9

    3.8

    5.5

    External Sector

    		                    

        Trade balance

    -13.2

    -3.5

    2.7

    -2.4

    -6.9

    -0.9

    0.2

    0.3

    0.0

    0.0

    Current account balance

    -10.3

    -1.7

    -1.2

    -0.6

    -2.0

    1.5

    1.2

    1.2

    0.6

    0.2

    Overall Balance

    -11.7

    -1.4

    1.8

    0.6

    -0.9

    1.3

    1.3

    1.5

    0.9

    0.5

    Nominal effective exchange rate (2018=100)7

    94.0

    94.1

    90.8

    86.4

    –

    –

    –

    –

    –

    –

    Real effective exchange rate (2018=100)7

    94.4

    97.7

    99.1

    94.7

    –

    –

    –

    –

    –

    –

    Terms of trade (2005=100)

    140.5

    178.9

    161.3

    152.7

    125.9

    162.2

    171.4

    176.6

    181.6

    186.6

    External central government debt5

    7.8

    8.4

    7.5

    8.9

    8.3

    6.7

    5.6

    4.8

    3.9

    3.5

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

    4,944

    4,806

    4,281

    4,757

    4,587

    4,879

    5,198

    5,600

    5,852

    6,014

    Months of imports of goods and services8

    6.4

    6.6

    7.1

    7.3

    6.3

    6.0

    5.8

    5.6

    5.4

    5.1

    Months of non-diamond imports8

    9.3

    8.7

    8.2

    8.8

    7.9

    7.8

    7.6

    7.5

    7.2

    7.1

    Percent of GDP

    31.2

    27.1

    21.8

    24.2

    23.3

    22.3

    21.5

    21.7

    20.8

    19.6

    Sources: Botswana authorities and IMF staff estimates and projections.

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

    2 Based on Atlas method from the World Bank.

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

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

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

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

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

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

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

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

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

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

    @IMFSpokesperson

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

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    MIL OSI Russia News –

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

    Source: IMF – News in Russian

    September 10, 2024

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

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

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

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

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

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

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

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

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

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

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

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

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


    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Camila Perez

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

    @IMFSpokesperson

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

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    MIL OSI Russia News –

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

    Source: IMF – News in Russian

    September 11, 2024

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

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

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

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

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

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

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

    Building on Macroeconomic Stability

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

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

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

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

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

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

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

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

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

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

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

    From Stability to Prosperity

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

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

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

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

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

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

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

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

    A Path to a Low-Carbon Future

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

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

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

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

    Reforms for Enhanced Growth and Stability

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

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

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

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

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

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

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

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

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

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

    IMF’s Commitment to CCA Stability and Growth

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

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

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

    Conclusion

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

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

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

    Thank you.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Angham Al Shami

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

    @IMFSpokesperson

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

    MIL OSI

    MIL OSI Russia News –

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

    Source: IMF – News in Russian

    September 13, 2024

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

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

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

    Executive Board Assessment[2]

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

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

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

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

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

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

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

    Denmark: Selected Economic Indicators

    2023

    2024

    2025

    proj.

    Output

    Real GDP growth (%)

    2.5

    1.9

    1.6

    Employment

    Unemployment rate (%)

    2.8

    2.9

    3.0

    Prices

    Inflation (%, average)

    3.4

    1.8

    2.2

    General Government Finances

    Revenue (% GDP)

    50.1

    49.6

    48.8

    Expenditures (% GDP)

    46.8

    47.8

    48.0

    Fiscal balance (% GDP)

    3.3

    1.8

    0.9

    Public debt (% GDP)

    29.7

    28.2

    27.3

    Money and Credit

    Domestic credit growth (%)

    3.2

    …

    …

    3-month interbank interest rate (%)

    3.4

    …

    …

    10-year government bond yield (%)

    2.4

    …

    …

    Balance of Payments

    Current account (% GDP)

    9.8

    9.0

    9.3

    International reserves (% change)

    1.3

    …

    …

    Exchange Rate

    ULC-based REER (% change)

    -0.4

    …

    …

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

     

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

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

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Boris Balabanov

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

    @IMFSpokesperson

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

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    MIL OSI Russia News –

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

    Source: IMF – News in Russian

    September 17, 2024

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

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

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

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

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

    Executive Board Assessment[3]

    Curaçao

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

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

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

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

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

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

    Sint Maarten

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

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

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

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

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

     

    The Monetary Union of Curaçao and Sint Maarten

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

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

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

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

    (Percent of GDP unless otherwise indicated)

     

    2020

    2021

    2022

    2023

    2024

    2025

    Prel.

    Prel.

    Prel.

    Prel.

    Proj.

    Real Economy

    Real GDP (percent change)

    -18.0

    4.2

    7.9

    4.2

    4.5

    3.5

    CPI (12-month average, percent change)

    2.2

    3.8

    7.4

    3.5

    3.2

    2.4

    CPI (end of period, percent change)

    2.2

    4.8

    8.4

    3.1

    3.2

    2.4

    GDP deflator (percent change)

    2.2

    3.8

    4.0

    3.5

    3.2

    2.4

    Unemployment rate (percent) 1/

    13.1

    13.5

    7.2

    7.0

    6.9

    6.6

    Central Government Finances 2/

    Net operating (current) balance

    -15.0

    -10.6

    0.7

    0.6

    0.0

    0.5

    Primary balance

    -13.2

    -8.8

    2.0

    2.5

    2.0

    1.9

    Overall balance

    -14.5

    -10.0

    1.0

    1.3

    0.1

    0.5

    Central government debt 3/

    87.1

    90.3

    81.6

    70.8

    65.4

    61.1

    General Government Finances 2, 4/

    Overall balance

    -15.7

    -10.4

    0.3

    0.9

    -0.3

    -0.1

    Balance of Payments

    Current account

    -27.2

    -18.6

    -26.8

    -19.7

    -17.9

    -16.5

    Goods trade balance

    -37.0

    -41.6

    -47.9

    -38.3

    -40.4

    -39.9

       Exports of goods

    10.7

    12.5

    18.0

    16.9

    16.5

    16.2

       Imports of goods

    47.7

    54.1

    65.9

    55.2

    56.9

    56.1

    Service balance

    9.6

    21.7

    20.5

    18.4

    22.6

    23.7

       Exports of services

    29.3

    37.2

    48.6

    46.6

    50.3

    51.3

       Imports of services

    19.7

    15.6

    28.1

    28.2

    27.7

    27.6

    External debt

    197.3

    194.8

    180.9

    177.1

    169.1

    164.0

    Memorandum Items

    Nominal GDP (millions of U.S. dollars)

    2,534

    2,740

    3,075

    3,318

    3,578

    3,789

    Per capita GDP (U.S. dollars)

    16,492

    18,135

    20,648

    22,160

    23,775

    25,065

    Credit to non-government sectors (percent change)

    0.1

    -9.7

    3.2

    2.5

    …

    …

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

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

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

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

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

     

     

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

    (Percent of GDP unless otherwise indicated)

     

    2020

    2021

    2022

    2023

    2024

    2025

    Est.

    Est.

    Est.

    Est.

    Proj.

    Real Economy

     

    		    

    Real GDP (percent change) 1/

    -20.4

    7.1

    13.9

    3.5

    2.7

    3.0

    CPI (12-month average, percent change)

    0.7

    2.8

    3.6

    2.1

    2.5

    2.3

    Unemployment rate (percent) 2/

    16.9

    10.8

    9.9

    8.6

    8.5

    8.2
       

    Government Finances

     

    		    

    Primary balance excl. Trust Fund operations 3/

    -8.7

    -5.4

    -0.6

    1.5

    0.9

    0.9

    Current balance (Authorities’ definition) 4/

    -9.6

    -6.3

    -1.5

    0.5

    -0.1

    0.0

    Overall balance excl. TF operations

    -9.3

    -5.9

    -1.1

    1.0

    0.2

    0.2

    Central government debt 5/

    56.1

    55.3

    49.3

    49.0

    46.2

    44.1
       

    Balance of Payments

     

    		    

    Current account

    -25.5

    -24.6

    -3.9

    -7.5

    -7.8

    -3.0

    Goods trade balance

    -40.7

    -49.8

    -59.2

    -59.3

    -62.4

    -60.5

       Exports of goods

    11.8

    11.4

    14.1

    14.8

    13.1

    11.2

       Imports of goods

    52.4

    61.2

    73.2

    74.1

    75.5

    71.7

    Service balance

    20.2

    33.1

    62.8

    60.3

    62.6

    65.2

       Exports of services

    34.4

    51.0

    78.7

    81.4

    81.5

    83.9

       Imports of services

    14.3

    17.9

    15.9

    21.1

    18.9

    18.7

    External debt 6/

    274.3

    253.7

    213.6

    206.3

    200.8

    194.0
       

    Memorandum Items

    		    

    Nominal GDP (millions of U.S. dollars)

    1,141

    1,268

    1,479

    1,563

    1,645

    1,733

    Per capita GDP (U.S. dollars)

    26,796

    29,646

    34,437

    36,088

    37,570

    39,160

    Credit to non-gov. sectors (percent change)

    2.4

    1.3

    4.5

    1.0

    …

    …
               

       Sources:

    		            

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

    		            

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

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

    		  

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

    		  

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

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

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

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

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

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Reah Sy

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

    @IMFSpokesperson

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

    MIL OSI

    MIL OSI Russia News –

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

    Source: Hong Kong Information Services

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

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

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

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

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

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

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

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

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

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

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

    MIL OSI Asia Pacific News –

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

    Source: GlobeNewswire (MIL-OSI)

    24 September 2024

    Notification no. 94/2024

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

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

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

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

    Attachment

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

    About AGF Management Limited

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

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

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

    About AGF Investments

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

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

    About Archer

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

    * SMArtX Awards Criteria and Methodology

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

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

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

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

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

    Media Contact

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

    The MIL Network –

  • MIL-OSI Europe: The OSCE Mission to BiH Donates Specialized Equipment to Police K9 Units across the country

    Source: Organization for Security and Co-operation in Europe – OSCE

    Headline: The OSCE Mission to BiH Donates Specialized Equipment to Police K9 Units across the country

    The OSCE Mission to Bosnia and Herzegovina has donated specialized equipment to K9 police units. (OSCE) Photo details

    The OSCE Mission to Bosnia and Herzegovina (Mission) has donated today specialized equipment to K9 police units across the country. The donation includes essential work gear and is part of the Mission’s project on Addressing Security and Safety Risks of Illegal Possession, Misuse, and Trafficking of Small Arms and Light Weapons (SALW) and their Ammunition in Bosnia and Herzegovina. K9 units will receive muzzles, Kevlar suits, training sleeves, scent detection boxes, specialized SALW suitcases, alpinist equipment for dogs as well as a scent detection carousel, altogether worth approximately EUR 70,000
    The equipment will increase the weapons and explosives detection capacities of various agencies across BiH, including the BiH Border Police, the State Investigation and Protection Agency (SIPA), the Police of Brčko District BiH, the Republika Srpska Ministry of Interior, the Federal Police Administration, as well as the Ministries of Interior of the Tuzla Canton, Una-Sana Canton, and Zenica-Doboj Canton.
    “We are proud to be able to provide this gear to our partners across the country. It will significantly enhance the ability of police K9 units to detect concealed weapons, ammunition, and explosives,” said Ambassador Brian Aggeler, Head of the OSCE Mission to BiH. “This donation would not have been possible if it were not for our international partners and the support that they have provided to the Project. Through our joint efforts we can help BiH address serious security threats and increases safety for all citizens,” he added.
    Mlađen Božović, Chief of Cabinet of the Minister of Security, expressed his satisfaction with the ongoing efforts to equip police agencies, enhancing their operational capabilities in the fight against illegal arms trade. He stated that: “These criminal activities present an increasing security challenge for all countries. Police agencies must adapt by continually strengthening their capacity to detect illegal weapons and disrupt smuggling routes. Preventing the illegal arms trade remains a top priority for the Ministry of Security of Bosnia and Herzegovina. Our goal is to enhance security and prevent criminal activities related to weapons by curbing smuggling, both in the region and across the European Union member states.”
    The OSCE Mission to BiH remains committed to support authorities at all levels in mitigating security risks posed by the illegal possession, misuse, and trafficking of SALW and their ammunition. By this commitment, the Mission contributes to creating a safer and more secure environment for all citizens of Bosnia and Herzegovina.
    The multi-year project: Addressing Security and Safety Risks of Illegal Possession, Misuse, and Trafficking of Small Arms and Light Weapons (SALW) and their Ammunition in Bosnia and Herzegovina is implemented by the Mission thanks to the generous support provided by Austria, the Czech Republic, the European Union, Germany, France, Liechtenstein, Norway, Slovakia, Türkiye, and the United States.

    MIL OSI Europe News –

  • MIL-OSI: Paycor Unveils Innovative Features to Redefine Time-Off Management

    Source: GlobeNewswire (MIL-OSI)

    CINCINNATI, Sept. 24, 2024 (GLOBE NEWSWIRE) — Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (HCM) software, today announced a suite of innovative features designed to transform time-off management for the modern workforce. These cutting-edge additions to Paycor’s HCM platform streamline time-off operations through automation, real-time visibility and proactive controls to drive efficiency and promote employee well-being.

    “It’s so important for workers to feel in control of their time, and Paycor’s new time-off features help leaders address this pain point,” said Ryan Bergstrom, Chief Product & Technology Officer at Paycor. “Our new experience helps workers unplug, empowers employees and leaders to take control of time-off management, reduces stress, and ensures smooth operations. We’re proud to offer flexible solutions that not only meet the needs of today’s workforce but also set a new standard for the future of work.”

    Key benefits include:

    Better Insights & Visibility to Help Leaders Make Decisions
    Paycor now offers seamless integration of time-off requests with scheduling, providing leaders with real-time visibility of these requests while building schedules. This feature allows for enhanced productivity and coordination through comprehensive visibility into time-off schedules for employees and leaders. Seamless integration across our ecosystem through APIs and data streams, including automatic syncing to cloud-based calendars, ensures accurate and up-to-date information.

    Faster Communication and Approvals
    Time Off Advisor provides employees with peak time visibility through blackout dates and balance forecasting, enabling better planning and communication with managers for time-off planning. Within this module, leaders can establish predefined criteria for automatically approving or denying time off requests. Additionally, managers can conveniently manage approvals on-the-go through preferred methods, such as the mobile app or email.

    Prevent Burn-out and Encourage Time Away
    Paycor Paths offers bite-sized training to empower leaders to recognize and prevent causes of burnout while easily accessing time-off balances and requests to identify potentially at-risk employees via the COR Leadership Dashboard.

    Paycor has received several accolades for these enhancements, including “Best Advance in Time” and “Best Advancement in Online Coaching Tools” from Brandon Hall Group and “Business Intelligence Solution” from Titan Business Awards.

    To learn more about how our time experience can streamline operations and provide flexibility to your workforce, visit Paycor Time & Attendance.

    About Paycor 
    Paycor’s human capital management (HCM) platform modernizes every aspect of people management, from recruiting, onboarding, and payroll to career development and retention, but what really sets us apart is our focus on leaders. For more than 30 years, we’ve been listening to and partnering with leaders, so we know what they need: a unified HR platform, easy integration with third party apps, powerful analytics, talent development tools, and configurable technology that supports specific industry needs. That’s why more than 30,000 customers trust Paycor to help them solve problems and achieve their goals. Learn more at paycor.com. 

    Media Relations:
    Carly Pennekamp
    513-954-7282
    PR@paycor.com

    Investor Relations:
    Rachel White
    513-954-7388
    IR@paycor.com

    The MIL Network –

  • MIL-OSI: TowneBank and Village Bank and Trust Financial Corp. Announce Agreement to Merge

    Source: GlobeNewswire (MIL-OSI)

    SUFFOLK, Va. and MIDLOTHIAN, Va., Sept. 24, 2024 (GLOBE NEWSWIRE) — Hampton Roads based TowneBank (NASDAQ: TOWN) and Village Bank and Trust Financial Corp. (NASDAQCM: VBFC) (“Village”), the parent company of Village Bank, today announced the signing of a definitive agreement and plan of reorganization pursuant to which TowneBank will acquire Village and Village Bank. The proposed transaction will enhance TowneBank’s continued and growing presence in the Richmond MSA while providing opportunity for diverse revenue synergies with Towne Financial Services Group and strategic capital deployment.

    “Our TowneBank family is humbled and excited to partner with Village Bank and its team members,” said G. Robert Aston, Jr., Executive Chairman of TowneBank. “We believe our partnership can bring additional products and expanded services to the clients of Village Bank while meaningfully enhancing our Richmond presence, which is core to our franchise and future growth.”

    “We’re excited to partner with TowneBank,” said Jay Hendricks, President and Chief Executive Officer of Village. “This merger is not just a business decision but a strategic move to enhance the value we deliver to our customers. This partnership will give us the ability to continue to meet our customers’ banking needs with greater resources and products while providing increased opportunities for our employees.” 

    Based on financials reported as of June 30, 2024, the combined companies would have total assets of $17.8 billion, loans of $12.1 billion and deposits of $14.9 billion. Under the terms of the agreement, shareholders of Village will receive $80.25 per share in cash for each share of Village outstanding common stock. This corresponds to an aggregate transaction value of approximately $120.0 million, based on Village common stock currently outstanding.

    TowneBank expects the transaction to be approximately 6% accretive to earnings per share with fully phased-in cost savings on a GAAP basis.

    In consideration of the transaction, extensive due diligence was performed by the management teams of TowneBank and Village. The definitive agreement was approved by the boards of directors of TowneBank and Village. The transaction is expected to close in the first half of 2025 and is subject to customary conditions, including regulatory approval, as well as the approval of Village’s shareholders.

    Piper Sandler & Co. served as the financial advisor and Troutman Pepper Hamilton Sanders LLP served as legal counsel to TowneBank in the transaction. Janney Montgomery Scott served as the financial advisor and Williams Mullen served as legal counsel to Village in the transaction.

    About TowneBank:
    Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

    Today, the bank operates over 50 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. TowneBank offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its controlled divisions and subsidiaries that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $17.1 billion as of June 30, 2024, TowneBank is one of the largest banks headquartered in Virginia.

    About Village Bank and Trust Financial Corp.
    Headquartered in Midlothian, Virginia, Village Bank and Trust Financial Corp. is the holding company for Village Bank. Village Bank was founded in 1999 and operates nine branch offices serving the greater Richmond Metropolitan area and Williamsburg, Virginia. Village Bank and Trust Financial Corp. had total assets of $747.7 million as of June 30, 2024. Additional information is available at the company’s website, http://www.villagebank.com.

    Media contact:
    G. Robert Aston, Jr., Executive Chairman, TowneBank, 757-638-6780
    William I. Foster III, Chief Executive Officer, TowneBank, 757-417-6482
    James E. Hendricks Jr., Chief Executive Officer, Village Bank and Trust Financial Corp., 804-419-1253

    Investor contact:
    William B. Littreal, Chief Financial Officer, TowneBank, 757-638-6813
    Deborah M. Golding, Vice President, Village Bank and Trust Financial Corp., 804-897-3900

    Cautionary Note Regarding Forward-Looking Statements
    This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and Village and their respective management teams regarding future events, many of which, by their nature, are inherently uncertain and beyond the control of TowneBank and Village. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management, including statements about (i) the benefits of the transaction, including future financial and operating results, cost savings, enhancement to revenue and accretion to reported earnings that may be realized from the transaction and (ii) TowneBank’s and Village’s plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts. In addition, these forward-looking statements are subject to various risks, uncertainties, estimates and assumptions with respect to future business strategies and decisions that are subject to change and difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Although TowneBank’s and Village’s respective management teams believe that estimates and assumptions on which forward-looking statements are based are reasonable, such estimates and assumptions are inherently uncertain. As a result, actual results may differ materially from the anticipated results discussed in these forward-looking statements because of possible uncertainties.

    The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the business of Village and Village Bank may not be successfully integrated into TowneBank, or such integration may take longer, be more difficult, time-consuming or costly to accomplish than expected; (2) the expected growth opportunities or cost savings from the transaction may not be fully realized or may take longer to realize than expected; (3) deposit attrition, operating costs, customer losses and business disruption following the transaction, including adverse effects on relationships with employees and customers, may be greater than expected; (4) the regulatory approvals required for the transaction may not be obtained on the proposed terms or on the anticipated schedule; (5) the shareholders of Village may fail to approve the transaction; (6) economic, legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which TowneBank and Village are engaged; (7) competitive pressures in the banking industry that may increase significantly; (8) changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; (9) an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize TowneBank’s or Village’s overall liquidity or capitalization; (10) changes in the creditworthiness of customers and the possible impairment of the collectability of loans; (11) insufficiency of TowneBank’s or Village’s allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; (12) adverse developments in the financial industry generally, such as the recent bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; (13) general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; (14) weather-related or natural disasters, acts of war or terrorism, or public health events (such as the COVID-19 pandemic); (15) changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect TowneBank’s or Village’s businesses; (16) cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; (17) competitors may have greater financial resources and develop products that enable them to compete more successfully; (18) changes in business conditions; (19) changes in the securities market; and (20) changes in the local economies with regard to TowneBank’s and Village’s respective market areas.

    Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in TowneBank’s reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Federal Deposit Corporation (“FDIC”) and Village’s reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the U.S. Securities and Exchange Commission (“SEC”). TowneBank and Village undertake no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

    Additional Information
    This press release does not constitute a solicitation of any vote or approval. Village will deliver a definitive proxy statement to its shareholders seeking approval of the transaction and related matters. In addition, each of TowneBank and Village may file other relevant documents concerning the proposed transaction with the FDIC and SEC.

    Investors, TowneBank shareholders and Village shareholders are strongly urged to read the definitive proxy statement regarding the proposed transaction when it becomes available and other relevant documents filed with the FDIC and SEC, as well as any amendments or supplements to those documents, because they will contain important information about TowneBank, Village and the proposed transaction. Free copies of the definitive proxy statement, as well as other filings containing information about Village, may be obtained after their filing at the SEC’s website (http://www.sec.gov). In addition, free copies of the definitive proxy statement, when available, also may be obtained by directing a request by telephone or mail to Village Bank and Trust Financial Corp., 13319 Midlothian Turnpike, Midlothian, Virginia 23113, Attention: Investor Relations (telephone: (804) 897-3900), or by accessing Village’s website at https://www.villagebank.com under “About Us Investor Relations.” The documents described above also may be obtained by directing a request by telephone or mail to TowneBank, 6001 Harbour View Boulevard, Suffolk, Virginia 23425, Attention: Investor Relations (telephone: (757) 638-6794), or by accessing TowneBank’s website at https://townebank.com under “Investor Relations.” The information on TowneBank’s and Village’s websites is not, and shall not be deemed to be, a part of this presentation or incorporated into other filings either company makes with the FDIC or SEC.

    TowneBank, Village, and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Village in connection with the proposed transaction. Information about the directors and executive officers of Village and other persons who may be deemed participants in the solicitation, including their interests in the transaction, will be included in the proxy statement when it becomes available. Information about TowneBank’s directors and executive officers can be found in TowneBank’s definitive proxy statement in connection with its 2024 annual meeting of shareholders, filed with the FDIC on April 11, 2024. Additional information about Village’s directors and executive officers can be found in Village’s definitive proxy statement in connection with its 2024 annual meeting of shareholders filed with the SEC on April 9, 2024. Free copies of each document may be obtained as described in the preceding paragraph.

    The MIL Network –

  • MIL-OSI Africa: United Nations General Assembly (UNGA) 79: African Development Bank calls on Development Finance Institution’s (DFI’s) to put peace into action to promote peace and stability in Africa

    Source: Africa Press Organisation – English (2) – Report:

    NEW YORK, United States of America, September 24, 2024/APO Group/ —

    The African Development Bank (www.AfDB.org) has urged Development Finance Institutions (DFIs) and other development partners to scale up innovative partnerships and initiatives to build peace and security in Africa, home to eleven of the world’s most conflict-affected states.

    Marie-Laure Akin-Olugbade, African Development Bank Vice-President for Regional Development, Integration and Business Delivery Complex led the charge during a session held September 21, on the sidelines of the 79th Assembly of the United Nations titled: Investing in Prevention: Scaling up Peace – A Call to Action for DFIs.

    Over the last 20 years, the level of global conflict has escalated, with one-fifth of Africa’s population residing in conflict affected areas, affecting the future of the world’s fastest-growing continent.

    “Our goal today is very clear. We would like to mobilise institutions to prioritise peace building and through innovative partnerships and new financial mechanisms.  This is a call for action.” Akin-Olugbade said in opening remarks.

    The New Agenda for Peace, which is at center stage of the UN’s Summit of the Future, highlights how different actors, including DFIs can serve as peace agents, and emphasises the role of partnerships, especially in the context of fragile and conflict affected countries, urging increased political and financial mobilisation to prevent conflicts.

    The effect of three decades of a devastating civil war in Mozambique are still evident, Amilcar Tivane, Mozambique’s Vice-Minister of Economy and Finance told participants, stressing the need for prevention.

    The  Mozambique government has learned innovative solutions to deal with the root causes of conflict and to address lingering security challenges in northern Mozambique such as terrorism and insurgency.  What has worked is a resilience building strategy together with partnerships, Tivane said. The country is also launching a new initiative for peace for the reconstruction of affected tourism areas

    « We have learned that prevention is critical, » he said. « Sometimes its difficult (for governments) to acknowledge that the social dimensions could have a significant impact.»

    Issa Faye, Director General of the Islamic Development Bank ( IsDB) said his institution’s blend of ordinary and concessional financing has been key to the successful  financial support for 32 fragile African countries out of the 52 they support. 

    The IsDB have aided thousands of refugees through programmes to address skills gap, training and education, combining economic empowerment and food security.

    Faye underlined Islamic financing as a concept framing a lot of the institution’s programmes and stressed the need to find alternative financing which is dedicated, responsive and resilient.

    Risk perception, another major constraint to financing peace initiatives in Africa, was the subject of Pradeep Kurukulasuriya, the Executive Secretary of the UN Capital Development Fund (UN CDF), submission. He offered a concrete example of successful de-risking of a peace initiative in Burundi.

    « UN DCRF works to de-risk so that larger streams of finance can flow from the larger and more established institutions, » he said.

    Since 2021, UNCDF has been working in collaboration with the UN Peacebuilding Fund and the Government of Burundi to address interconnected and transnational root-causes of instability and nature loss in the Kibara National Park and surrounding buffer zones. The joint initiative with several partners including UNESCO, uses a unique blended finance approach.

    Peace finance needs new a lens

    Itonde Kakoma, President of Interpeace said a new paradigm approach, which moved away from the donor focus and instead sees development partners investing in peace investment hubs and creating a pipeline of peace positive projects, is much needed.

    He said the need to connect development finance and peace building while leveraging the private sector to build peace, safety and social cohesion between communities living in complex environments, was more imperative than ever.

    « We have a conviction that the Sustainable Development Goals can be unlocked by peace finance, » Kakoma said.

    Other participants such as Elizabeth Spehar, Assistant Secretary General, United Nations Peacebuilding Support stressed the importance of inclusion and the role of DFI’s such as the African Development Bank.

    “We need the economic might of the DFI’s. We have to work on this together,” she said.

    Spehar paid tribute to the African Development Bank which emphasizes peace and security as public goods in its new Ten-year strategy (2024-2033). The Bank’s joint pilot project in Central African Republic with UNHCR has the UN “working with communities on the  peace part and the African Development Bank working on the employment part,” Spehar said.

    The Bank has been on the forefront of systematically addressing issues of fragility in Africa and has built up over 20 years of experience in building Africa’s resilience by providing intellectual leadership and dedicated financial instruments, such as the Transition Support Facility, which mobilizes additional resources for affected countries. The Bank’s Private Sector Credit Enhancement Facility allows it to do more private investments in these riskier markets.

    The audience also heard from the g7+, Asian Development Bank, Civil Society Platform for Peacebuilding and Statebuilding (CSPPS), the World Economic Forum (WEF), the Aswan Forum, UNHCR, and the African Union Peace Fund whose Director Dagmawit Moges spoke of the institution’s reforms and the importance of governance.

    “We’ve gone beyond theory and talk. We at the African Development Bank are interested in strengthening partnerships. We are not going to work in silos. We are looking forward to continuing this discussion at COP 29 and at the Africa Resilience Forum next year,” Akin-Olugbade said.

    MIL OSI Africa –