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Category: Russian Federation

  • MIL-OSI Europe: G7 Leaders’ Statement on Extraordinary Revenue Acceleration (ERA) Loans

    Source: Government of Italy (English)

    25 Ottobre 2024

    At the initiative of the President of the Council of Ministers, Giorgia Meloni, the G7 Leaders have adopted a statement announcing that they have reached an agreement to provide a total of approximately $50 billion in loans to Ukraine, backed by the profits deriving from frozen Russian sovereign assets. This important result confirms the commitment undertaken by the G7 Leaders during the Summit held at Borgo Egnazia, in Italy’s Apulia Region, in June.

    MIL OSI Europe News –

  • MIL-OSI Canada: G7 Finance Ministers’ Statement on Extraordinary Revenue Acceleration (ERA) Loan Initiative

    Source: Government of Canada News

    G7 Finance Ministers’ Statement on Extraordinary Revenue Acceleration (ERA) Loan Initiative

    Washington, DC, 25 October 2024

    We, the G7 Finance Ministers, met in Washington, DC earlier today and were joined by Ukraine’s Finance Minister Sergii Marchenko.

    In line with the mandate we were given by G7 Leaders at the Apulia Summit in June, we are glad to announce our agreement on the operationalisation of the ERA Loan initiative for the benefit of Ukraine. We recall the G7 Leaders’ pledge that, consistent with all applicable laws and our respective legal systems, Russia’s sovereign assets will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine. We will stand by Ukraine for as long as it takes. 

    Today we approved the principles and technical features of the Extraordinary Revenue Acceleration (ERA) Loan initiative for the benefit of Ukraine that was announced by G7 Leaders at the Apulia Summit in June.

    The ERA Loan initiative will disburse approximately USD 50 billion (EUR 45 billion) for the benefit of Ukraine. Principal and interest will be repaid by extraordinary revenues stemming from the immobilisation of Russian sovereign assets (RSA) held in European Union (EU) jurisdictions, and possibly in other G7 countries, in line with our respective legal systems and international law, and by any other voluntary contributions.

    The ERA Loan initiative will comprise bilateral loans from G7 members. Today’s G7 approval of the principles and technical features will ensure consistency and coordination between constituent loans, while providing sufficient flexibility to account for the legal and institutional specificities of each lender. 

    The distribution of the flow of extraordinary revenues stemming from Russian sovereign assets to repay ERA lenders will be managed via the Ukraine Loan Cooperation Mechanism (ULCM) that was recently agreed by EU co-legislators. The distribution to repay G7 lenders will be proportional to the committed principal amount of each bilateral loan.

    Each bilateral loan will enter into force no later than 30 June 2025. Bilateral loans will be fully disbursed to the benefit of Ukraine between 1 December 2024 and 31 December 2027, in instalments that will reflect Ukraine’s urgent financing needs. The support from ERA loans is in addition to other sources of official support, including the EU Ukraine Facility and the IMF Extended Fund Facility. The loan proceeds will be disbursed through multiple channels. These include, but are not limited to, a Macro-Financial Assistance (MFA) loan from the EU, the IMF’s Multi-Donor Administered Account for Ukraine, and the new Financial Intermediary Fund for Ukraine at the World Bank.

    G7 members commit to closely cooperate to ensure coordination and consistency between constituent bilateral loans throughout the entire life of the ERA Loan initiative for the benefit of Ukraine.

    The term sheet with the key technical features of the ERA Loan initiative will be published in the coming days.

    MIL OSI Canada News –

  • MIL-OSI Canada: Statement by the Deputy Prime Minister and Minister of Finance on the Extraordinary Revenue Acceleration Loan Mechanism and Russian Sovereign Assets

    Source: Government of Canada News

    Statement by the Deputy Prime Minister and Minister of Finance on the Extraordinary Revenue Acceleration Loan Mechanism and Russian Sovereign Assets

    October 25, 2024 – Washington, D.C., United States of America

    Today, G7 Finance Ministers announced a final agreement on the Extraordinary Revenue Acceleration Loan Mechanism, which leverages frozen Russian Central Bank assets to ensure Ukraine’s victory and reconstruction from Russia’s illegal invasion.

    Following this announcement, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, issued the following statement:

    “At the beginning of Russia’s full-scale invasion of Ukraine, Canada and our allies took the unprecedented step of immobilizing close to C$381 billion (US$280 billion) in Russian sovereign assets, depleting Putin’s war chest. Within the G7, all countries have agreed that Russian sovereign assets will remain immobilized until Russia pays for the damage it continues to inflict on Ukraine.

    “Today, the G7 reached a final agreement to support Ukraine in its brave fight with an additional C$68 billion (US$50 billion), backed by future interest that will be accrued on frozen Russian assets. Canada was the first country to advocate for using these assets to support Ukraine, and we are proud to be providing the largest per capita contribution: C$5 billion (US$3.7 billion).

    “Canada’s firm position has always been that Russia, the aggressor, must pay for the destruction it has caused. It cannot be the sole duty of democracies and their citizens or of the brave people of Ukraine to pay for Putin’s war of aggression. Today’s announcement is historic because it accomplishes this; it guarantees frozen Russian Central Bank assets will be used to support the people of Ukraine.”

    MIL OSI Canada News –

  • MIL-OSI Russia: Transcript of IMFC Press Conference 2024 IMF Annual Meetings October 2024

    Source: IMF – News in Russian

    October 25, 2024

    Speakers:

    Kristalina Georgieva, Managing Director, IMF

    Mohammed Aljadaan, Chair, IMFC

    Moderator: Julie Kozack, Director of the Communications Department, IMF

    *****

    Ms. Kozack: Good afternoon, everyone. Thank you for joining us this afternoon. My name is Julie Kozack. I’m the Director of communications at the IMF. Welcome to this press briefing of the IMFC. And I am delighted to have with us here today the Chair of the IMFC, His Excellency Mohammed Aljadaan, Minister of Finance of Saudi Arabia, and also our Managing Director, Kristalina Georgieva. They will first share with you a few takeaways from the IMFC meeting that just concluded, and then we will have time for your questions.

    Your Excellency, the floor is yours.

    Mr. Aljadaan: Thank you. Thank you very much, and thank you to all of you for being here. And thank you, Julie. Good afternoon, everyone.

    I would like to thank all the IMFC members for their strong and focused collaboration. I would also like to congratulate Kristalina for her second term as Managing Director. We wish her every success. And I must say that personally, I would congratulate myself and the members for her accepting, actually, to spend the next five years with us.

    It’s important to note that the IMF was established 80 years ago at Bretton Woods. Since 1944, the world has changed dramatically, and the IMF and the World Bank have evolved along with that.

    The evolution continues, as we respond to many challenges facing the global financial system. Above all, our approach seeks common ground to achieve the common good for all. The IMFC members are pleased to report that the global economy has moved closer to a soft landing. Global growth is steady, and inflation continues to moderate. However, progress has been uneven across members. There is uncertainty, with risks tilted to the downside; medium‑term growth prospects remain muted; and global public debt has reached a record high.

    Going forward, we will work to further secure a soft landing, while stepping up our reform efforts to shift away from the low growth/high debt path.

    I want to report on a few developments very quickly.

    The IMFC members welcomed the completion of the review of the Poverty Reduction and Growth Trust, ensuring that the IMF is supporting low‑income countries to address balance of payments challenges. We encourage the IMF and the World Bank to further develop their proposal to support countries with sustainable debt but experiencing liquidity challenges. We supported the IMF’s efforts to strengthen its capacity development assistance and to secure appropriate financing. We welcomed the new 25th chair in the IMF’s Executive Board for sub‑Saharan Africa, which will strengthen the voice and the representation of the region. We also welcomed the new member, Liechtenstein, as our 191st member. That makes the IMF almost universal, short of possibly one or two members. And we reaffirmed our commitment to a strong, quota‑based, and adequately resourced IMF at the center of the Global Financial Safety Net.

    We have secured or are working to secure domestic approvals for our consent to the quota increase under the Sixteenth General Review of Quotas by mid‑November this year, as well as relevant adjustments under the New Arrangements to Borrow.

    Of particular importance is the commitment to improve the Common Framework for sovereign debt relief in low‑income countries so it is implemented in a more predictable, timely, and coordinated manner. Also, we appreciate the reforms of the Fund’s lending toolkit, particularly for the PRGT.

    Finally, I would note the review of the charges and the surcharges policy, which will alleviate the financial cost of the Fund’s lending for borrowing countries, while preserving their intended incentives and safeguarding the Fund’s financial soundness.

    The IMFC has achieved some important milestones in this meeting. This shows that the IMF is essential to that spirit of multilateralism born at the Bretton Woods, as we seek common ground to assure progress and prosperity for all IMF members.

    Now I will turn it to you, Your Excellency. Please, Kristalina.

    Ms. Georgieva: Thank you very much. Thank you very much, Minister Aljadaan. Congratulations for chairing another very engaged, substantive, and successful meeting and, again, one that starts right on time and finishes on the dot. You bring this discipline symbolically, as we have no time to waste. There are very important topics to bring the membership together on.

    You have presented the substance of the meeting and the achievements of the meeting. I would like to add to that three points.

    First, to recognize the good balance that was achieved between confidence and caution. Confidence that the world economy has proven resilient. Inflation is in retreat. And this is being done without a risk of recession. Caution, that the problems that we need to address are still in front of us. They are complex. We have to attend to the concerns of people that maybe inflation is going down, but price levels are high. We have to recognize that in front of us is a prospect for low growth and high debt, a burden that is particularly heavy on low‑income countries, and that we are operating in an environment that is more impacted by forces of fragmentation. They are driven by wars that are happening and still going on. They are driven by security concerns in countries. They are driven by concerns about competitiveness.

    And in this environment, the second observation I would like to make is the good balance between attention to the short‑term priorities and what needs to happen in the medium to long term. For the short term, the focus is on two things. One, how to‑‑for central banks to remain attentive, be evidence‑based, carefully monitor data to make sure that they don’t cut either too early or too late, and that the monetary policy continues to be well communicated so expectations are anchored on the basis of this communication. And also, two, in the short term, a focus on the fiscal side as an immediate priority. Fiscal buffers have been exhausted, yet fiscal pressures are high. And that attention to medium‑term fiscal consolidation that starts now‑‑is not delayed‑‑came through for many of our members.

    And in terms of the medium to long term, not surprisingly, a very substantive, deep discussion on what can be done to lift up growth prospects in countries; what can enhance productivity; what can be a factor for countries to achieve better outcomes for their people but also attention to the role a more vibrant global economy can play for this higher‑‑higher growth trajectory.

    And my third point is going to be about debt. This was an issue that a majority of members addressed. Recognizing that you cannot‑‑actually, one of the Ministers quoted me from a previous engagement, me saying “you cannot borrow your way out of debt.” The topic of debt was particularly important in terms of the work the Bank and the Fund are undertaking on our so‑called three‑pillar approach; and I want to update you on it, since it gained a lot of interest.

    The three‑pillar approach we are proposing‑‑it is in the context of the Global Sovereign Debt Roundtable and the broader work on debt‑‑is to support countries that are not yet in a position that requires debt restructuring but are faced with significant liquidity problems that, if not addressed‑‑if they’re not addressed, can turn into a risk for solvency in the future.

    Pillar I, reforms to boost growth and mobilize domestic revenues. Pillar II, adequate financing, including from international financial institutions and a call on us to work together. Pillar III, crowding-in private financing at a lower cost.

    I felt that that strong endorsement of this three‑pillar approach is going to give the Bank and the Fund the guidance and encouragement to do our best. You will see us identifying countries in which we apply that three‑pillar approach.

    You walked us through all the important achievements. To us, the staff of the Fund, what we particularly cherish is that over the last months, we agreed on three historic firsts‑‑never done before. First time in our history, reaching our precautionary balances target. First time ever reducing charges and surcharges that would save $1.2 billion to borrowing members, a 36 percent reduction. First time deploying net income to boost our lending capacity for low‑income countries.

    Mr. Aljadaan: Kristalina, I think this is just a very clear illustration that, despite all the discussion about fragmentation, three firsts are agreed by the members, very important firsts. So it just shows, really, that there is a lot of support to management and the Fund from the members.

    Sorry, continue.

    Ms. Georgieva: Oh, no. Thank you. And they have been agreed unanimously.

    So my heart goes to all the staff of the Fund and all the members of the Fund. My gratitude to them. And a very special thanks to Brazil, Poland, Saudi Arabia, the UAE, and the U.S. for contributions to the PRGT; and the UAE for a contribution to the Resilience and Sustainability Trust. And I want to thank the U.K. for committing in the meeting to directly transfer its share of the GRA income distribution to the PRGT, and they called for others to follow.

    So, all in all, what we can say is that the meeting demonstrates, when there are forces of fragmentation, bridges become even more important. And we, the IMF, we are a bridgebuilder. Thank you.

    Ms. Kozack: Thank you very much, Minister, Managing Director. We will now turn to your questions. Please do raise your hand if you have a question, and please do identify yourself. Let’s see. I’m going to start all the way over on this side of the room. There’s a gentleman in the fourth row. Yep. Let’s start there.

    QUESTION: Good afternoon. Actually, I have two questions for today. My first question is for the Managing Director. As you reflect on the Annual Meetings, how do you assess the global economy, the main challenges and opportunities? My second question will be for Your Excellency, Minister Mohammed Aljadaan. What are the pressing IMFC issues and objectives for the coming years? Thank you.

    Ms. Georgieva: Thank you for your question. The meetings have been very useful to see the unanimous understanding on the progress we have made and quite a close view across members on the challenges ahead.

    The achievements in terms of bringing inflation down to open up, again, space for a reduction of interest rates that can contribute to better growth prospects in countries was recognized by a vast majority of our members. And at the same time, there was no sense of complacency. Why? Because the conditions of the world economy are good‑‑growth at 3.2 percent, inflation down‑‑but risks are tilted to the downside. And they are both in terms of the importance of monetary policy to remain vigilant and avoid a risk of misjudgment in the direction of interest rate policies and also risks that stem from a more fragmented world economy.

    In terms of challenges, three stood out throughout the meetings.

    First, the fiscal challenge. How to bring fiscal balance after these multiple shocks and years in which fiscal resources had to be deployed more actively? How to do that without undercutting prospects for investing in growth.

    Second, how to identify and put in place structural reforms that can rapidly build prospects for higher productivity, higher growth in terms of labor market reforms, product market reforms, as well as reforms that can allow an acceleration of the green and digital transformation.

    And three, how to build more resilience to future shocks. What we learned over these last years is that we are in a more shock‑prone world, and that requires building resilience in our economies for the future.

    Ms. Kozack: Thank you. Minister.

    Mr. Aljadaan: I will make it very quickly, actually, because they are very much related; so I will not repeat what the Managing Director has said. But the IMFC is basically the Governors’ body of this institution. And the whole idea of the IMFC meeting is, A, to exchange views on, what can we then do together collectively, really, to help the world economy but also to give steer to the management of the institution. And that’s really the point that you mentioned, whether it is ensuring that we actually do the last mile of dealing with inflation properly. Second is trying to ensure that we find ways out of the high debt/low growth and to more productivity growth and a more coordinated approach. We also wanted to make sure that we also provide the right support to the institution through finalizing our legislative approvals for the quota increase, making sure that we also provide the support that the Fund needs. And whether it is the PRGT or the trust fund or otherwise, I think there is the pure IMFC technical work that happens, but then there is a lot of coordination between management, the IMFC, and then the regional funds, multilateral development institutions; that we need to make sure that they all also connect.

    Ms. Kozack: Very good. Thank you. All right. Let’s go to the middle. I am going to go to the second row, gentleman, gray jacket, white shirt. Yep, you.

    QUESTION: I thought I had grabbed the wrong jacket. Managing Director, it’s been a long set of meetings. There are a lot of issues to get through, but one of the things that’s been kind of hanging over this set of meetings has been the U.S. election. And I am just wondering if you could describe sort of how this has been discussed in these meetings, what you’re thinking about it. And you know, there could be a major turn inward by the United States as a result of this. How do you avoid‑‑how do you deal with that? What do you tell people to do about it? Thank you.

    Ms. Georgieva: The discussions ‑‑ we had a total of four meetings in different formats and themes. And the discussions in the meetings were about the problems we collectively face and how to go about them. In other words, the sentiment of the membership is, elections are for the American people. What is for us is to identify, what are the challenges and how the IMF can constructively address these challenges.

    Mr. Aljadaan: I agree.

    Ms. Georgieva: So, yeah‑‑

    Mr. Aljadaan: Go ahead.

    Ms. Georgieva: I was just going to say, it was what‑‑what are the problems of the world in advanced economies, in emerging markets, in low‑income countries? What can the IMF do to help different parts of the membership to address these problems?

    Mr. Aljadaan: I think, basically, the institution ‑‑ I think there is a clear recognition the institution has, you know, existed for the last 80 years. It worked with multiple administrations from both sides and has managed to have a very good relationship with our host. So, we just need to make sure that we continue that dialogue.

    Ms. Kozack: Very good. I will go to this side. Second row, gentleman in the gray shirt, at the end.

    QUESTION: Good afternoon. My question is meant for the IMF MD. I would like to know what the IMF doing to increase Africa’s voice on your Board. And like the Minister said earlier, they have added one more seat for Africa. I don’t think that is enough. What are you doing that to raise that to maybe two or three? Thank you.

    Ms. Georgieva: Thank you very much for this question.

    The most significant step we have taken to increase the voice and representation of Africa is to add a third chair for sub‑Saharan Africa around the Board table at the Fund. So up to November 1, we have 24 Executive Directors, representing 190, soon to be 19‑‑well, no. There are already 191 members. And as of November 1, we will have 25 Executive Directors. That means that the sub‑Saharan African countries will have a better representation of their issues. And these are, as you know, that’s a diverse group of countries. When we only have two Directors, that means constituencies that have 23, 22 countries, it is very difficult for this Executive Director to voice the concerns of each and every one of the members. Now they will have three Directors, and that brings them at par with other parts of the world. We have Executive Directors representing‑‑one represents 16 countries, another one representing 13. So now sub‑Saharan Africa is not going to be an outlier. And that would allow the‑‑and that, of course, means an Executive Director but also offices with advisors and Alternative Executive Directors from the constituency.

    Beyond that, this is really important‑‑ So imagine you sit around this Board table, and now you have more voice.

    Beyond that, there are two other things we do at the Fund. One is to work very hard to have diversity of our staff. So we actually are very proud. We set a target for sub‑Saharan Africa. We have exceeded it. So we have more people coming from this part of the world.

    And the second one is how we engage with these countries. We have, over time, built offices in a number of countries, including training centers. And that brings us closer, makes it easier to hear the concerns of citizens and authorities.

    Actually, next to us‑‑when we had the meetings, next to us was a proud son of Kenya.

    Where is Ceda? Is he here, or no?

    The Secretary of our Board is from Kenya. So Africa was very visible. We can say we had the Arab world. We had emerging markets, Europe; and we had Africa.

    Mr. Aljadaan: I think, to be honest, Africa is very important. And it is not only about how many chairs in the Board that represent Africa. Actually, a lot of voices within the Board and there are a lot of voices within the IMFC, in the Governors‑‑even if they are not from Africa, they actually do a lot of work for Africa. And I can say, I am one of them. I have absolutely the full dedication to making sure low‑income countries, and particularly in Africa, are supported and provided ‑‑ not only financial support but also technical support to‑‑you know, for them to graduate from low‑income country status.

    Ms. Georgieva: Yep. Half of the countries in sub‑Saharan Africa have programs with the Fund. And these programs are not just about the financing; they are about bringing capacity development, bringing excitement about growth for the future in these countries.

    Ms. Kozack: And I know many of you have questions. Unfortunately, we do have to bring this press briefing to an end. I want to thank you very much for joining us today. The full transcript of this press briefing will be made available on our website. And of course, if you have further questions, please do reach out to my time at Media Relations. Thank you so much for joining us.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Randa Elnagar

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/25/tr102524-transcript-of-imfc-press-briefing

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Canada: G7 Leaders’ Statement on Extraordinary Revenue Acceleration (ERA) Loans

    Source: Government of Canada – Prime Minister

    Today, we, the Leaders of the Group of Seven (G7), have reached a consensus on how to deliver approximately US$50 billion in Extraordinary Revenue Acceleration (ERA) loans to Ukraine.

    These loans will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets, in line with G7 respective legal systems and international law. The loan proceeds will be disbursed through multiple channels to support Ukraine’s budgetary, military and reconstruction assistance, as consistent with all applicable law and G7 members’ respective legal systems. Our aim is to begin disbursing the funds by the end of the year.

    We express our utmost appreciation for the timely implementation of this historic G7 Leaders’ decision by the Finance Ministers, who have agreed on a technical solution ensuring consistency, coordination, fair distribution of lending, and solidarity among all G7 partners. We are particularly grateful to the European Union and its Member States for their constructive engagement towards this remarkable result.

    Today’s announcement confirms that the G7 fulfills the commitment they made in June at the Apulia G7 Leaders’ Summit. Russian illegal and unprovoked aggression has caused untold harm to the people of Ukraine and to global peace and security. We will not tire in our resolve to give Ukraine the support it needs to prevail. Russia must end its illegal war of aggression and pay for the damage it has caused to Ukraine in line with international law.

    The G7 remains steadfast in its solidarity to support Ukraine’s fight for freedom, and its recovery and reconstruction. With the large amount of financing from the ERA loans to meet its pressing need, we have once again made clear our unwavering commitment to stand by Ukraine for as long as it takes. Time is not on President Putin’s side.

    MIL OSI Canada News –

  • MIL-OSI Economics: Transcript of Western Hemisphere Economic Outlook October 2024 Press Briefing

    Source: International Monetary Fund

    October 25, 2024

    PARTICIPANTS:

     

    RODRIGO VALDES

    Director of Western Hemisphere Department

    International Monetary Fund

     

    ANA CORBACHO

    Deputy Director ofWestern Hemisphere Department

    International Monetary Fund

     

    LUIS CUBEDDU

    Deputy DirectorWestern Hemisphere Department

    International Monetary Fund

     

    JULIE ZIEGLER

    Senior Communications Officer

    International Monetary Fund

     

      

    MS. ZIEGLER: Good morning.  Welcome everyone.  This is the press briefing for the Regional Economic Outlook for the Western Hemisphere.  My name is Julie Ziegler, and I am with the Communications Department at the Fund.  I’m going to introduce our panel today.  To my immediate left is Rodrigo Valdes, who.  the Director of the Western Hemisphere Department.  And he is joined by his Deputies, Ana Corbacho and Luis Cubeddu.  So, we are going to start with some opening remarks from Rodrigo, and then after that I will have some housekeeping items, and we will take your questions.  

     

    MR. VALDES: Thank you, Julie.  And good morning to everyone.  Welcome to this press briefing.  We have just released, and it is on the internet, our Annual Regional Economic Outlook for the Western Hemisphere.  This is a bit like the WEO, but for the region.  And here we have two important messages, two key messages.  

     

    The first one is that there is a need to rebalance macroeconomic policies in the region.  And the second one is the urgency to press on with structural reforms to boost potential output growth.  And I will explain this.  The monetary policy part of the first message, the rebalancing applies to several of the flexible exchange rate and inflation targeting countries in the region with different degrees of intensity.  The second message, the urgency to deepen reforms for growth, really applies to almost all economies in the region.  

     

    Over the last few years, the region has successfully weathered a series of major shocks in the world economy.  They showed resilience and they have adopted really macroeconomic policies in most countries that are at the top of the frontier of what we know.  And so far, largely the region has stayed in the sidelines, on the sidelines of global geopolitical tensions.  

     

    Now growth in the region is moderating as most economies are operating back near their potential.  What is concerning, however, growth in most countries is expected to return to its low historical average and this will not help with the region’s macroeconomic, fiscal and social challenges.  Overall, we expect growth in Latin America and the Caribbean — if we exclude Argentina, which has an important rebound next year, and Venezuela with its own dynamics — growth will moderate from 2.6 in 2023 to 2.2 in 2025, going through 2.6 also this year, 2024.  So we’re going back to the lower part of the 2 percent around these baseline projections.  We see the risks to near-term growth tilted to the downside, partly reflecting global risks, including importantly the persistent geopolitical tensions.

     

    Turning to inflation, in line with global trends and also reflecting the effect of tight policies, inflation has fallen markedly since the peak of mid-2022, and it is near the target in most countries.   However, it is not a target almost everywhere.  In the region, I would say that the last mile of this inflation has been rather long.   We expect to continue to see easing of monetary policy, but gradually on account of sticky services and inflation expectations not being perfectly re-anchored and also because inflation risks are generally tilted to the upside, reflecting basically commodity price volatility — the factors that I mentioned before of geopolitical risks and also new risks of fiscal slippages.  

     

    So, with the output gap and inflation gap mostly closed, what should policymakers do?  We think that they need to focus on rebuilding policy space and working on boosting potential growth – the messages I mentioned at the beginning.  This means rebalancing the policy mix and pushing forward with structural reforms.  

     

    Let me elaborate a bit more on the policy mix.   The current combination of macro policies is generally not everywhere, but generally tilted toward tight monetary policy while fiscal policy remains loose.  Although the earlier tightening of monetary policy by the region’s central banks was essential to bring inflation down, inflation is now close to target while monetary policy rates remain elevated in many countries.  At the same time, however, public debt levels are high and will continue raising if we do not have fiscal consolidation.  

     

    So, at this juncture it is necessary to rebalance policies, starting with strengthening public finances.  Most countries have quite ambitious fiscal consolidation plans, but their implementation –so from plans to reality — has been in such a way that they have been pushed back.  It is crucial in the region that these plans proceed without further delays to rebuild the buffers while protecting priority public spending, investment, and social spending.  Strengthening the current fiscal rules is also important so they can deliver these consolidation objectives.  

     

    A timely implementation of this fiscal consolidation is critical not only for fiscal sustainability, but also for supporting the normalization of monetary policy and the credibility of the frameworks more broadly.  With fiscal policy moving in the right direction, most central banks will be well placed to proceed with the monetary policy easing that we expect, while remaining on guard, of course, against risks of reemerging price pressures.  

     

    Let me now speak about the second point, that is the need to press with structural reforms and I will go from need to urgency.   As mentioned before, medium-term growth is expected to remain subdued, reflecting longstanding unresolved challenges which include low investment and especially low productivity growth.   Also, the region is suffering shifting demographics that will slow growth further.  The labor force is growing less than before, and this will weaken one essential engine for growth.  The impediments for growth are many and country specific, some are more common, and that reality is confronted with an ongoing reform agenda that is thin in many countries.  This could lead to a vicious cycle of low growth, social discontent and populist policies.  So greater efforts to advance with structural reforms are needed to boost potential growth and raise living standards.  

     

    We see that strengthening governance is a priority that cuts across all areas of growth.  This includes, for example, reinforcing the rule of law, improving government effectiveness, and, importantly, tackling crime more efficiently.   Improving the business environment and public investment is also needed to increase overall investment.  While reducing informality and making labor markets more attuned to more productivity gains is important.  This part of the labor market is also really important for women labor force participation, because this is one of the sources to offset the demographic headwinds.  

     

    These reforms will also be essential in positioning the region to fully harness the benefits of the global green transition and new technological advances.  It is disappointing that until now mining investment, for example, in the region has not picked up despite the new opportunities for green minerals.  This suggests, and I quote here, “we can do better,” as the IMF Managing Director stressed in her initial annual meeting speech, that also applies to our region.  

     

    From our side, through policy advice, capacity development, and financial support, we are ready to continue engaging, supporting countries in their efforts to strengthen their macroeconomic frameworks and increase economic resilience and growth opportunities.  

     

    With this, let me stop here and we are ready to take your questions.  Julie.

     

    MS. ZIEGLER: Thank you.  Before we take questions, let me please just go through a few housekeeping items.  I want to remind everyone first of all that this is on the record.  Also, as Rodrigo mentioned, the report has just been published for the Western Hemisphere Regional Economic Outlook and you can find it on imf.org.  

     

    So, when we go to your questions, I ask please that you raise your hand, that you state your name and your affiliation, and if you are online, please can you keep your cameras on.  We cannot go to you unless your camera is on.  So, I appreciate it if you keep your cameras on.

     

    Finally, please keep your questions brief.  We are going to start, as in practice in the past, with questions on the region, meaning the entire region, Western Hemisphere or the Caribbean.  We will get to country questions after that.  Please bear with us, but we would like to start with questions from the region — on the region.  

     

    Does anybody have a region-specific question?   Yes, please.  

     

    QUESTIONER: A question about protectionism.  How do you see the growing threat of resurgent protectionism, threat to macroeconomy and to markets as well?  And how do — how should the region prepare for that?   And then maybe another thing on insecurity, which is another theme as well.  How could it deter or curb investment in the region insecurity, please?   

     

    MS. ZIEGLER: Do we have any other questions on the region?  Please. The lady in the back.

     

    QUESTIONER: Thank you.  How are you analyzing the effect of the U.S. election and potential tariffs on emerging markets, particularly on interest rates and capital flows?  And on Latin America, do you think the fiscal stimulus measures in the region are compromising the efforts of central banks in combating inflation?  And does it endanger years of macro stabilization?   Thank you.  

     

    MS. ZIEGLER: Okay, one more.  

     

    QUESTIONER: I am sorry, The Financial Times has an article out just this morning saying that the EU is accelerating — well, within the block — accelerating or rating contingency plans for a possible Trump presidency.  The German Institute — Economic Institute — in Cologne says that a trade war could hit GDP growth in Germany by about 1.5 percent.  And I think Goldman Sachs has a forecast saying that the euro could fall by about 10 percent if those tariffs move forward.  So, I’m wondering if that is the biggest threat.  And then secondly, on outlook, I thought there would be a lot more optimism since inflation is decelerating — in the euro area and interest rates are being cut.  That — would lower the cost of borrowing and actually spur investment there.  So, if you could share your thoughts on that. Thank you.  

     

    MR. VALDES: Okay, so — let me start from the last question.  Why we are not more optimistic in the medium run given that inflation is coming to targets?  Reality is that there are two forces here.  The cycle around the trend and that part of the cycle has been readily well managed in the region.  We are back — to trend.  But that trend, unfortunately, is not very strong in terms of growth.  That does not depend on macro policies in the short run.  Macro policies can produce a stable environment, can facilitate that growth.  But ultimately it is investment.  It is the accumulation of capital, productivity, the labor force, what produces — that trend.  And there is this call for you need, the region, needs to refocus from micromanagement that was very important the last few years to this low trend because we are hitting capacity basically.  And this is across the region.  It’s the Caribbean.  It is Latin America.  Perhaps Central America.  A few countries are the higher growing countries right now because exactly that, because they have a bigger trend.  

     

    That brings me to the issue of trade for the region.  Trade is very important.  These are almost all open economies, small open economies.  I have to say, on trade at first, the region has been very protective of open trade.  If you look at measures against trade and across the globe, the region has been the ones that have put less constraints to that.  

    Second, in terms of the election, as we always say, we would not speculate on that.  No, that is not something that is a role of the Fund.  But what we can say is that open trade is good for the region depending on how is fragmentation at the end, if it happens.  Further fragmentation, where is the circles where is the near shoring, for example.  Some countries may even benefit, but others may suffer.  But we do not know yet.  What I can say though is that for this trend growth, open global economy is better for the region.  

     

    Two more things.  Security.  This is an issue that has been a new concern, I would say, for the macroeconomy.  We have — some estimates that this matters.  Matters for growth.  Matters for investment, and especially matters for the well-being of people.  So it’s something that in the region at least is top of mind — for households.  And . need to take it very, very seriously. It has macro impact in the region.  We will have a conference, by the way, in November on this precisely.  It’s not that we will become experts on this, but we want the financial community to be more on top of these issues.  

     

     And finally, let me mention this tension — fiscal-monetary policy.  I do not think it is the case that we are in a position that we are risking the two decades of very strong work that we have gained.   But at the same time, we are not well-balanced.  On average, some countries are better, some countries — less good.  A good balance between monetary policy and fiscal policy.   

     

    Debt dynamics are such that debt-to-GDP is increasing.  Plans are good, but they have been postponed in many countries.  So, we need to deliver on those.  And that will produce this opportunity to continue also easing monetary policy.  We have said that this is like a tango, and it is not an easy tango to have between the central bank and the Ministry of Finance.  But it is needed, this coordination. 

     

    Let me stop there. I do not know if my colleagues would like to add anything on this in general.  No?   Perfect.  

     

    MS. ZIEGLER: So before we go, just last call for regional.  These are on the region, not country specific All right, go ahead.  In the center.   

     

    QUESTIONER: Thanks very much. Just this is the 80th anniversary of the Bretton Woods institutions.  For most of that period, Washington-based financial institutions have had pretty much a monopoly on lending to Latin America.  We have just had a BRICS conference in Russia.  BRICS have a development bank.  There are other alternatives for Latin American countries for finance and development.  How does the IMF feel about that?  

     

    MS. ZIEGLER: Okay, maybe one more on the region. Okay, go ahead.  Right there.   

     

    QUESTIONER: Hi, good morning. Of course, there have been some glowing words about how Caribbean countries have handled their policies over the past couple of years.  But of course, we also know that several Caribbean countries are vulnerable, particularly as a result of climate change.  So, my question is, what policies or what reforms can we see that will help provide a buffer with regard to climate activity that has been affecting the Caribbean?  

     

    MS. ZIEGLER: Okay.

     

    MR. VALDES: Okay. Look, reality is that we have been working for years with other partners in terms of regional arrangements.   We have Development Banks in the region, the IADB, we have CAF, we have FLAR (Latin American Reserve Fund) as another arrangement that lends money to central banks.  So perhaps the issue here is not whether we have these new institutions, but how to coordinate well.  We are convinced that the more coordination, the less fragmentation, that everybody works together is better.  Nobody needs the monopoly of this, but we need to work together.

     

    In terms of the Caribbean, I will ask Ana to go a bit more in detail. But it is very important to face reality for the Caribbean.  And they are doing it.  There’s a striking number.  Countries in the Caribbean lose 2.5 percent of GDP in capital per year, on average.   It does not happen every year, but every 10 years you can have a 25 percent loss.  So, you have to be prepared for that.  And that means that fiscal policy has to be geared towards that.   This is a multilayer system.  You have to be careful with investment.   Investment has to be more resilient.   You have to work in the insurance side, in contingency bonds, for example.  So, there is a lot to do.  Some countries have been very good on that.  Let me take the case of Jamaica and the last hurricane.  They had some possibilities to use contingencies for that case.  

     

    But let me pass to Ana to add a bit.  

     

    MS. CORBACHO: Thank you.  Certainly, the Caribbean region is very vulnerable to climate change shocks.  And we are concerned that the patterns of these shocks may be changing, becoming more severe and more frequent, which certainly requires more action on the government side and the multilateral community to support Caribbean economies.   

     

    In particular on policy measures, what we have emphasized in our dialogue is the need to integrate better mitigation and adaptation strategies in public investment plans.  Also fostering more active participation of private finance in increasing investment for climate resilience, as well as reducing the consumption of fuels through electrification.  An upside for the Caribbean is the green energy transition.  It could certainly give countries a chance to enhance resilience by investing in renewable energies, and through that, boosting competitiveness and lower exposure to climate change shocks.  Thank you.  

     

    MS. ZIEGLER: Great. We are going to take some questions online.  She says the IMF reduced the growth prospects for Mexico.   Could you tell me about the greatest risk that my country faces and the possibilities to grow a little more?  

     

    We have another one. She said, is it possible for Mexico to achieve the reduction of the fiscal deficit from 6 percent to 3 percent as the government intends, while maintaining spending on social transfer programs and energy subsidies?  

     

    So, while we are on Mexico, anybody else on Mexico in the room?  Please go ahead.  Wait — for the mic, please.    

     

    QUESTIONER: A bit more about violence and the risk that it poses to all the general policies, the challenges.  

     

    MS. ZIEGLER: Thank you. 

     

    MR. VALDES: Well, let me first say that we are in the middle of the Article IV process with Mexico.  So you will have a lot of details after it goes through the Board and the Article IV is published.  You probably have seen also the concluding statement published a couple of weeks ago.  But I can add a couple of things here.  One, we see bottlenecks in certain areas, and energy is one.  Infrastructure more generally as something that is a constraint right now in Mexico to take more advantage of — the opportunities it has with nearshoring and other possibilities.  The government is working on this, and we support fully that these are constraints that need to be alleviated.  

     

    In terms of fiscal, I would not want to make any… I mean, let us wait — for the budget. There is always the possibility, as we mentioned in the concluding statement, of have revenue mobilization at some stage.  We see, though, very importantly that there are steps towards consolidation.

     

    In terms of violence.  Look, here, I think we need to recognize that macroeconomists at least do not know a lot about how violence has impacts on the economy and the economy on violence.  So, I think it is very important to invest more knowledge on this.  Our own estimates – and this is a broad estimate – it’s not for Mexico specifically, but if the region were able to cut by half the difference it has between homicides suffering to the level of the world economy, growth could increase about half a percentage point for a good 10 years.  And that is more or less aligned with other estimates that are around.  So, in terms of the macro, this is something that is important.  

     

    Now, easier said than done because then the next question is what to do.  And there is where I would not want to make any comment because — we really, as macroeconomists, know very little. But we know that it’s important.  

     

    QUESTIONER: Good morning.  Can you hear me?  

     

    MS. ZIEGLER: We can hear you.  If you bear with us, we can’t see you yet.

     

    QUESTIONER: Good morning, Julie. Good morning, Mr. Valdes. The projection for Ecuador is 0.3 percent in 2024.  We want to know if the projection includes the energy crisis in Ecuador that has worsened with power outages of up to 14 hours.  What impact can the energy crisis have in Ecuador?   And do you feel that it will affect the fiscal goals of the extended facility program that Ecuador has?  Is there a possibility of a recession this year?   

     

    MS. ZIEGLER: Thank you. We have also we had questions submitted on Ecuador from Evelyn Tapia from PROMESA.  Does Ecuador’s growth projection for 2024 and 2025 include the effects of the electricity crisis that the country is experiencing?  When is the review of the program’s goals expected to end so that the country can receive the second disbursement for the Fund?  And when would that disbursement be made effective?   

     

    Ecuador? Anything else?  Okay.

     

    MR. VALDES: Okay, so everybody to be on the same page. Ecuador has a program with the Fund, an EFF, and we are close to have the First Review of the program.  I will ask Ana to go into more details on the growth considerations and other considerations you may want to add.  But let me just say that the authorities have been implementing this very strongly.  So — we are very optimistic, at least from the side of the commitment from the authorities on their own program that has been supported — by the Fund.  There will be a mission soon for this Review.  And of course, this new shock about electricity that has to do with climate, again — is bad news.  At the same time, the first half of the year was a bit stronger than expected.  

     

    But let me ask Ana to elaborate.  

     

    MS. CORBACHO: Thank you, Rodrigo.  I want to emphasize, as Rodrigo did, that the authorities are making very strong progress in advancing their stabilization program.  They have taken very important fiscal measures that are already showing results with an improvement in their fiscal position.  And we also see liquidity conditions, and notably the reserve position of the country, being stronger than we had expected when we approved the program in May.  

     

    Now Ecuador faces a very difficult electricity crisis with the worst drought in many decades.  The situation is still unfolding, but we would expect that it would have an impact both on economic conditions and fiscal needs.  And as we have more information, we may need to revise then the growth outlook for ’24 and ’25.  As of now, because the first part of the year was stronger than we had expected, we actually increased our forecast for 2024 growth from 0.1 to 0.3 percent.  

     

    In terms of the program, we expect that this would be discussed at the board by the end of the year, and upon completion of that review, if it is successful, there would be availability of the second disbursement in the program of $500 million.  Thank you.  

     

    MS. ZIEGLER: Now let us turn to Argentina. And we will take a bunch of questions.  Don’t worry.  

     

    QUESTIONER: Hi, good morning.  Thank you very much for taking my question.  My first question will relate — related that yesterday Kristalina Georgieva had a meeting with our Economy Minister, Luis Caputo.  Can you tell us what were the conversation and is coming very soon a mission to Argentina?  Just to the review of Nine and Ten Review.  Thank you very much.  

     

    MS. ZIEGLER: Thank you. I am going to take a few questions in the room first.  Please go ahead.  

     

    QUESTIONER: Thank you.  Rodrigo, I wanted to ask you, after criticism from President Javier Milei decided to step aside from the day-to-day negotiations with Argentina, but I was hoping you could tell us if you’re still involved in the back office discussions with the rest of the team about the future program and the ongoing economic situation in Argentina.  And for Luis, you were in both meetings with Gita Gopinath and Kristalina Georgieva yesterday.  I wanted to know if, in your view, has the Argentine government gained enough credibility, you know, with the fiscal front and with the ongoing economic recovery to come to the Fund and ask for an increase in the exposition with a new program?  Thanks.  

     

    MS. ZIEGLER: Okay.  Let’s go online.

     

    QUESTIONER: So, question for Mr. Cubeddu.  My question is to know what was discussed in the meeting yesterday between Ms. Georgieva and Minister Caputo.  And also, if you could — well, if the IMF is concerned about the lack of reserve accumulation in the central bank in recent months, if is there the possibility of grant a waiver maybe in the Tenth Review?  Thank you.

     

    MS. ZIEGLER: Great, thanks.  Let’s take one more and we’ll pause after that.  The woman here in the red shirt, please.  

     

    QUESTIONER: Hello, good morning. I would like to know if — how important is for the Fund for Argentina to release its capital controls and if you are discussing new money to help that within a new program.  

     

    MS. ZIEGLER: Okay, let us pause, or maybe one.  I saw someone behind you had one more question, and then perhaps we can — yes, go ahead.  And then we will move on. 

     

    QUESTIONER: The IMF pointed out in its last — in its latest staff report that it was necessary to eliminate the exchange rate for exporters and move forward with the removal of exchange controls.  What is your opinion on what has been done so far?  And is it possible, as the — government claims to achieve growth without — with — capital controls?  

     

    MS. ZIEGLER: Okay.  

     

    MR. VALDES: Okay, thank you for the several questions in Argentina.  Let me start from one.  There were a couple of questions, that I just want to say that, as a matter of policy, we do not disclose the conversations between authorities and management.  No, this is not our job.  Second point I want to mention is that the teams have been interacting very actively and constructively for several weeks already.  Ana has mentioned, the authorities are here, and that engagement has continued.  

     

    And finally, I have delegated the Argentina case to Luis Cubeddu, as you know.  And really, I do not have anything else to add on this.  

     

    MR. CUBEDDU: Very good.  And to address a few questions on Argentina and perhaps maybe also to first mention, thank Rodrigo for the deep trust in this complex and important case.  This is obviously a team effort, and it involves the technical team in Western Hemisphere as well as other departments.  

     

    Maybe to stress from yesterday’s conversation, our management, both Kristalina and Gita, as well as us, staff, met with the Argentine authorities, with Minister Caputo and Central Bank President Bausili.  I think in our conversations we stressed and underscored the important progress that has been made, particularly in reducing inflation and establishing a very strong fiscal anchor.  We now have nine months of primary surpluses and overall balances under our belt.  I think we also underscored that this has also allowed an improvement in the central bank balance sheet as well as a strengthening of international reserves from extremely low levels. 

     

    In those conversations, we also emphasize that challenges remain and that sustaining the gains that we have seen so far will require that policies evolve and that appropriately balance domestic as well as external considerations and external objectives.  In this regard, — we discussed the need — to gradually unwind some of the existing ethics restrictions and controls.  But obviously, this should be done in a carefully calibrated way to ensure that the process is an orderly one.  

     

    With regards to moving forward and the questions related to the program.  I think our teams continue to work closely — with the Argentine authorities.  The — discussions — have deepened in an effort to better understand and fully understand their plans in the period ahead.  The engagement in which we are in is taking place within the context of the current EFF.  Although the authorities are also exploring the options whether to move to a new program.  Our hope is that we will be in a position to provide a bit more information on this in terms of the strategy of engagement over the coming weeks.  

     

    So, I think with this I tried to summarize some of your questions and, although happy to answer as needed.  Thank you.  

     

    MS. ZIEGLER: Okay, that is good.  Please go ahead.  

     

    QUESTIONER: So, there is a law of fair taxation that is awaiting approval in my country, Honduras.  How does the IMF evaluate the fiscal policies implemented by the Honduran government and their impact on the country macroeconomic stability?

     

    MS. ZIEGLER: Why do not you take that, and I will — I think we have a couple people online for Chile that will get queued up while you answer that question.  

     

    MR. VALDES: Anything else on Honduras?   No?  Okay.  

     

    QUESTIONER: The last week Honduras has been successful, passed [inaudible].  The program is technical.  An agreement, that has been reached.  My question is whether advantage or benefit will there be for the country with IMF — another multilateral organization?  Thank you.  

     

    MS. ZIEGLER: Okay.  

     

    MR. VALDES: Okay.  Do you want to go to Chile too?  

     

    MS. ZIEGLER: Sure.  We’re — getting near the end, so let’s take a couple of people online.   

     

    QUESTIONER: Hi, Julie.  

     

    MS. ZIEGLER: Hi.  

     

    QUESTIONER: This is a question for Mr. Valdes.   There’s two questions actually.   The first is there is some doubt here in Chile about the fiscal revenue for next year.  Now we are in the process of the law for the next year.  So specifically for the new tax compliance law, if it is going to get the fixed revenue that the government expects, how do you see that?  And you see there is a risk there?  And the second question is about the growth because the Central Bank of Chile expect the long-term GDP growth for Chile going to be nowhere in the next years, 10 years, to 1.8.  Little lower than the report that you report that you had foreseen.  Do you see some sign signal from the government for to actually increase the long-term growth?  Because you talk — in the report about streamline the process for investment permit, the [inaudible], I would say here, and the strength security.   I know you can talk a little longer about that.  That’s the question.  Thank you.   

     

    MS. ZIEGLER: Okay, I have one more to add on Chile: in the case of Chile, do you think there are any measures that are not on the government’s agenda that are relevant for growth?  And then what is your view of Chile’s fiscal accounts?  Just mentioning the S&P highlighted the country’s fiscal consolidation, and Fitch warned that Chile is unlikely to meet its fiscal deficit target for 2024.  So — let us take those, and I think those will be the last questions of the briefing.  

     

    MR. VALDES: Okay, thank you, Julie.  Well, let me start with — Honduras.  Honduras has a Fund-supported program.  It took some time to reach Staff-Level Agreement for the First and Second Reviews combined, but we managed to have Staff-Level Agreement a few days ago.  And we are now working to bring the program to the review to the Board.  

     

    What I can say is that this program it is very important to safeguard macroeconomic stability.  We are — we agree on the policies needed for that, and the commitment of the authorities is very important to do their part in terms of fiscal monetary policy and effects policies such that we safeguard the macroeconomic stability.  The review is also very important because it will facilitate the disbursement of different credits for from other partners.  So, for example, the IDB and the World Bank.  So overall, this review is important because we are agreeing on policies that are needed.

     

    In terms of the Ley de Justicia Tributaria, which is in Congress, first, let me say that this law, we understand that this proposal incorporates many suggestions from the position in the private sector, and we value enormously the dialogue that countries can have with the different partners on this, and we salute that.  

     

    Second, more to the content.  There are about 15 corporate income tax special regimes — in Honduras, and by any metric that is too high.  So, it is very important the effort that they are doing to consolidate and hopefully end into three regimes.  And also, it is important to say that Honduras has tax exemptions of around 7 percent of GDP.  That is way above also of what we observe in other places.  And it is also important to discuss whether those regimes, those exemptions, are worth having or not.  And this law exactly proposes some discipline, if you want, on this.  We estimate that it would yield about 1 percent of GDP in revenues in the medium run.  

     

    In terms of Chile, well, you know, I am a Chilean.  So, I will — and we have some rules at the Fund that we should not speak about our countries too much.  So, I will defer the questions to the Mission Chief Andrea, who is available for this.  Although I can say a couple of more broad issues.  I do not want to enter into the fiscal reform law or other things.  

     

    But let me just say that there are important measures taken in Chile align with this call that we have about potential output growth.  They are making efforts to make more predictable and to shorten also the process of permits for the different investments, and that’s — we value that enormously.  Also, there are initiatives to facilitate labor force participation for women.  And that is also something that the Fund for a long time has been advocating.  Of course, this is a marathon.  And in a marathon, you have to — you do not have one silver bullet until you get to the end of the marathon with a couple of measures.  It takes much more in Chile and all countries.  What to do is very country specific.  But as I mentioned before, around rule of law, around security, around predictability, around the labor market, are many other ideas that could be advanced.  Thank you.  

     

    MS. ZIEGLER: Take one more. I know you wanted to ask your questions.  

     

    QUESTIONER: Thank you for taking my question.  What are the IMF’s recommendations for Brazil given the worsening forecasts for public debt?  And the government is working on new measures to cut spending.  What is the importance of these measures?  And additionally, how will fiscal policies, you know, these new measures and higher interest rates, impact future growth?  Thanks.

     

    MS. ZIEGLER: Thanks.  And that is the last question.  

     

    MR. VALDES: Okay, so let me just react to — the question in the following sense.  Brazil has, as other countries, this challenge of how to implement a level of consolidation that is very important to stabilize debt and has a challenge that’s probably not everywhere.  And it is a difficult challenge.  Many of the expenditures are very rigid.  So politically speaking, it is more difficult.  You have to work in the taxation mechanisms that are there.  We understand that they are doing that.  We have recommended that for some time, and that should facilitate this.  

     

    Importantly, in this tango between the central bank and fiscal, we should not look only to the fiscal side.  We should also do it together with monetary policy.  So the growth effects of a consolidation should not be really bad.  First, it could be positive by itself by lowering risk premia, and second, opens up the possibility of — lower rates, and that is important.  

     

    Ana was the Mission Chief for Brazil and now is the reviewer of Brazil, so she may want to add something.  

     

    MS. CORBACHO: Yeah, I just want to say that in our baseline forecast, we do expect an improvement in the fiscal position of Brazil.  But what we have been emphasizing is that this improvement needs to be tackled and underpinned by very concrete revenue and spending measures.  Rodrigo mentioned the challenge of making the budget more flexible.  This will help Brazil have more space to respond to new spending priorities as well as shocks, unforeseen shocks.  It requires deep structural reforms in the big items of spending categories, in wages, in pensions, floors for certain items of the budget, and many more spending rigidities that are very particular to Brazil.  There’s also an agenda to foster revenue mobilization, particularly by reducing inefficient tax expenditures.  And after the groundbreaking VAT Reform, considering also reforms of personal income tax and corporate income tax.  Thank you.  

     

    MR. VALDES: If I just may add as a closing, that we will have the Regional Economic Outlook launch in Paraguay on November 4th.   The report has a couple of accompanying papers on fiscal and labor force participation, labor markets, that are pretty interesting, very detailed.  I hope useful.  Thank you.   

     

    MS. ZIEGLER: Thank you, Rodrigo.  Thank you, Ana.  Thank you, Luis.  This concludes the press briefing.  

     

    SPEAKER: Question on Colombia.

     

    MS. ZIEGLER: Okay.  We can take, if you agree, Colombia.   

     

    MR. VALDES: Yeah, but you should say it before.   Okay, go ahead.  

     

    QUESTIONER: You can do it in Spanish if it is easier for you.  And please, if you can answer in Spanish.   Dr. Rodrigo, for 11 years you have spoken about reforms, but I see that the reforms are really complicated.  Even today, Colombia has not been able to bring about a tax reform in order to collect $3 billion, a little billion dollars, which is just a minor amount at an international level.  What is truly recommended by the IMF so that the reforms will move forward and will not have to face the hurdles and the respective congresses, so that countries can improve their flow of investment and for the trade to truly be dynamic?  You know the history of Colombia.  We grew at 4 percent and now not even at 2 percent.  Thank you.  

     

    MR. VALDES: Thank you for the question.  I will answer in Spanish.  What you are showing is the difficulty in developing reforms.  And when we say, let us develop reforms, we do not do it in a vacuum without understanding that the policy is difficult and not because we face difficulties that would stop us from doing it.  It is key for the region to continue expediting, accelerating the development of reforms and hopefully for the benefit of growth and not only for other things.  And specifically, it is important to do it because of what you were saying, because the potential growth, even in the countries that grew faster 5 or 10 years ago, such as the Pacific Partnership or the Pacific Alliance, has reached an average again.  And we are worried that with that very low average, lower than emerging Europe and much lower than that of emerging Asia, obviously the social needs, the fiscal needs, will not be solved.  And therefore, the appeal is to double effort.  There’s no way of skipping the political effort.  

     

    MS. ZIEGLER: Okay.  If you — have any other questions, please feel free to reach out to us via email at media@imf.org.  Thank you all for attending.  

     

    *  *  *   *  *

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Julie Ziegler

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

    @IMFSpokesperson

    MIL OSI Economics –

  • MIL-OSI Russia: Transcript of Western Hemisphere Economic Outlook October 2024 Press Briefing

    Source: IMF – News in Russian

    October 25, 2024

    PARTICIPANTS:

     

    RODRIGO VALDES

    Director of Western Hemisphere Department

    International Monetary Fund

     

    ANA CORBACHO

    Deputy Director ofWestern Hemisphere Department

    International Monetary Fund

     

    LUIS CUBEDDU

    Deputy DirectorWestern Hemisphere Department

    International Monetary Fund

     

    JULIE ZIEGLER

    Senior Communications Officer

    International Monetary Fund

     

      

    MS. ZIEGLER: Good morning.  Welcome everyone.  This is the press briefing for the Regional Economic Outlook for the Western Hemisphere.  My name is Julie Ziegler, and I am with the Communications Department at the Fund.  I’m going to introduce our panel today.  To my immediate left is Rodrigo Valdes, who.  the Director of the Western Hemisphere Department.  And he is joined by his Deputies, Ana Corbacho and Luis Cubeddu.  So, we are going to start with some opening remarks from Rodrigo, and then after that I will have some housekeeping items, and we will take your questions.  

     

    MR. VALDES: Thank you, Julie.  And good morning to everyone.  Welcome to this press briefing.  We have just released, and it is on the internet, our Annual Regional Economic Outlook for the Western Hemisphere.  This is a bit like the WEO, but for the region.  And here we have two important messages, two key messages.  

     

    The first one is that there is a need to rebalance macroeconomic policies in the region.  And the second one is the urgency to press on with structural reforms to boost potential output growth.  And I will explain this.  The monetary policy part of the first message, the rebalancing applies to several of the flexible exchange rate and inflation targeting countries in the region with different degrees of intensity.  The second message, the urgency to deepen reforms for growth, really applies to almost all economies in the region.  

     

    Over the last few years, the region has successfully weathered a series of major shocks in the world economy.  They showed resilience and they have adopted really macroeconomic policies in most countries that are at the top of the frontier of what we know.  And so far, largely the region has stayed in the sidelines, on the sidelines of global geopolitical tensions.  

     

    Now growth in the region is moderating as most economies are operating back near their potential.  What is concerning, however, growth in most countries is expected to return to its low historical average and this will not help with the region’s macroeconomic, fiscal and social challenges.  Overall, we expect growth in Latin America and the Caribbean — if we exclude Argentina, which has an important rebound next year, and Venezuela with its own dynamics — growth will moderate from 2.6 in 2023 to 2.2 in 2025, going through 2.6 also this year, 2024.  So we’re going back to the lower part of the 2 percent around these baseline projections.  We see the risks to near-term growth tilted to the downside, partly reflecting global risks, including importantly the persistent geopolitical tensions.

     

    Turning to inflation, in line with global trends and also reflecting the effect of tight policies, inflation has fallen markedly since the peak of mid-2022, and it is near the target in most countries.   However, it is not a target almost everywhere.  In the region, I would say that the last mile of this inflation has been rather long.   We expect to continue to see easing of monetary policy, but gradually on account of sticky services and inflation expectations not being perfectly re-anchored and also because inflation risks are generally tilted to the upside, reflecting basically commodity price volatility — the factors that I mentioned before of geopolitical risks and also new risks of fiscal slippages.  

     

    So, with the output gap and inflation gap mostly closed, what should policymakers do?  We think that they need to focus on rebuilding policy space and working on boosting potential growth – the messages I mentioned at the beginning.  This means rebalancing the policy mix and pushing forward with structural reforms.  

     

    Let me elaborate a bit more on the policy mix.   The current combination of macro policies is generally not everywhere, but generally tilted toward tight monetary policy while fiscal policy remains loose.  Although the earlier tightening of monetary policy by the region’s central banks was essential to bring inflation down, inflation is now close to target while monetary policy rates remain elevated in many countries.  At the same time, however, public debt levels are high and will continue raising if we do not have fiscal consolidation.  

     

    So, at this juncture it is necessary to rebalance policies, starting with strengthening public finances.  Most countries have quite ambitious fiscal consolidation plans, but their implementation –so from plans to reality — has been in such a way that they have been pushed back.  It is crucial in the region that these plans proceed without further delays to rebuild the buffers while protecting priority public spending, investment, and social spending.  Strengthening the current fiscal rules is also important so they can deliver these consolidation objectives.  

     

    A timely implementation of this fiscal consolidation is critical not only for fiscal sustainability, but also for supporting the normalization of monetary policy and the credibility of the frameworks more broadly.  With fiscal policy moving in the right direction, most central banks will be well placed to proceed with the monetary policy easing that we expect, while remaining on guard, of course, against risks of reemerging price pressures.  

     

    Let me now speak about the second point, that is the need to press with structural reforms and I will go from need to urgency.   As mentioned before, medium-term growth is expected to remain subdued, reflecting longstanding unresolved challenges which include low investment and especially low productivity growth.   Also, the region is suffering shifting demographics that will slow growth further.  The labor force is growing less than before, and this will weaken one essential engine for growth.  The impediments for growth are many and country specific, some are more common, and that reality is confronted with an ongoing reform agenda that is thin in many countries.  This could lead to a vicious cycle of low growth, social discontent and populist policies.  So greater efforts to advance with structural reforms are needed to boost potential growth and raise living standards.  

     

    We see that strengthening governance is a priority that cuts across all areas of growth.  This includes, for example, reinforcing the rule of law, improving government effectiveness, and, importantly, tackling crime more efficiently.   Improving the business environment and public investment is also needed to increase overall investment.  While reducing informality and making labor markets more attuned to more productivity gains is important.  This part of the labor market is also really important for women labor force participation, because this is one of the sources to offset the demographic headwinds.  

     

    These reforms will also be essential in positioning the region to fully harness the benefits of the global green transition and new technological advances.  It is disappointing that until now mining investment, for example, in the region has not picked up despite the new opportunities for green minerals.  This suggests, and I quote here, “we can do better,” as the IMF Managing Director stressed in her initial annual meeting speech, that also applies to our region.  

     

    From our side, through policy advice, capacity development, and financial support, we are ready to continue engaging, supporting countries in their efforts to strengthen their macroeconomic frameworks and increase economic resilience and growth opportunities.  

     

    With this, let me stop here and we are ready to take your questions.  Julie.

     

    MS. ZIEGLER: Thank you.  Before we take questions, let me please just go through a few housekeeping items.  I want to remind everyone first of all that this is on the record.  Also, as Rodrigo mentioned, the report has just been published for the Western Hemisphere Regional Economic Outlook and you can find it on imf.org.  

     

    So, when we go to your questions, I ask please that you raise your hand, that you state your name and your affiliation, and if you are online, please can you keep your cameras on.  We cannot go to you unless your camera is on.  So, I appreciate it if you keep your cameras on.

     

    Finally, please keep your questions brief.  We are going to start, as in practice in the past, with questions on the region, meaning the entire region, Western Hemisphere or the Caribbean.  We will get to country questions after that.  Please bear with us, but we would like to start with questions from the region — on the region.  

     

    Does anybody have a region-specific question?   Yes, please.  

     

    QUESTIONER: A question about protectionism.  How do you see the growing threat of resurgent protectionism, threat to macroeconomy and to markets as well?  And how do — how should the region prepare for that?   And then maybe another thing on insecurity, which is another theme as well.  How could it deter or curb investment in the region insecurity, please?   

     

    MS. ZIEGLER: Do we have any other questions on the region?  Please. The lady in the back.

     

    QUESTIONER: Thank you.  How are you analyzing the effect of the U.S. election and potential tariffs on emerging markets, particularly on interest rates and capital flows?  And on Latin America, do you think the fiscal stimulus measures in the region are compromising the efforts of central banks in combating inflation?  And does it endanger years of macro stabilization?   Thank you.  

     

    MS. ZIEGLER: Okay, one more.  

     

    QUESTIONER: I am sorry, The Financial Times has an article out just this morning saying that the EU is accelerating — well, within the block — accelerating or rating contingency plans for a possible Trump presidency.  The German Institute — Economic Institute — in Cologne says that a trade war could hit GDP growth in Germany by about 1.5 percent.  And I think Goldman Sachs has a forecast saying that the euro could fall by about 10 percent if those tariffs move forward.  So, I’m wondering if that is the biggest threat.  And then secondly, on outlook, I thought there would be a lot more optimism since inflation is decelerating — in the euro area and interest rates are being cut.  That — would lower the cost of borrowing and actually spur investment there.  So, if you could share your thoughts on that. Thank you.  

     

    MR. VALDES: Okay, so — let me start from the last question.  Why we are not more optimistic in the medium run given that inflation is coming to targets?  Reality is that there are two forces here.  The cycle around the trend and that part of the cycle has been readily well managed in the region.  We are back — to trend.  But that trend, unfortunately, is not very strong in terms of growth.  That does not depend on macro policies in the short run.  Macro policies can produce a stable environment, can facilitate that growth.  But ultimately it is investment.  It is the accumulation of capital, productivity, the labor force, what produces — that trend.  And there is this call for you need, the region, needs to refocus from micromanagement that was very important the last few years to this low trend because we are hitting capacity basically.  And this is across the region.  It’s the Caribbean.  It is Latin America.  Perhaps Central America.  A few countries are the higher growing countries right now because exactly that, because they have a bigger trend.  

     

    That brings me to the issue of trade for the region.  Trade is very important.  These are almost all open economies, small open economies.  I have to say, on trade at first, the region has been very protective of open trade.  If you look at measures against trade and across the globe, the region has been the ones that have put less constraints to that.  

    Second, in terms of the election, as we always say, we would not speculate on that.  No, that is not something that is a role of the Fund.  But what we can say is that open trade is good for the region depending on how is fragmentation at the end, if it happens.  Further fragmentation, where is the circles where is the near shoring, for example.  Some countries may even benefit, but others may suffer.  But we do not know yet.  What I can say though is that for this trend growth, open global economy is better for the region.  

     

    Two more things.  Security.  This is an issue that has been a new concern, I would say, for the macroeconomy.  We have — some estimates that this matters.  Matters for growth.  Matters for investment, and especially matters for the well-being of people.  So it’s something that in the region at least is top of mind — for households.  And . need to take it very, very seriously. It has macro impact in the region.  We will have a conference, by the way, in November on this precisely.  It’s not that we will become experts on this, but we want the financial community to be more on top of these issues.  

     

     And finally, let me mention this tension — fiscal-monetary policy.  I do not think it is the case that we are in a position that we are risking the two decades of very strong work that we have gained.   But at the same time, we are not well-balanced.  On average, some countries are better, some countries — less good.  A good balance between monetary policy and fiscal policy.   

     

    Debt dynamics are such that debt-to-GDP is increasing.  Plans are good, but they have been postponed in many countries.  So, we need to deliver on those.  And that will produce this opportunity to continue also easing monetary policy.  We have said that this is like a tango, and it is not an easy tango to have between the central bank and the Ministry of Finance.  But it is needed, this coordination. 

     

    Let me stop there. I do not know if my colleagues would like to add anything on this in general.  No?   Perfect.  

     

    MS. ZIEGLER: So before we go, just last call for regional.  These are on the region, not country specific All right, go ahead.  In the center.   

     

    QUESTIONER: Thanks very much. Just this is the 80th anniversary of the Bretton Woods institutions.  For most of that period, Washington-based financial institutions have had pretty much a monopoly on lending to Latin America.  We have just had a BRICS conference in Russia.  BRICS have a development bank.  There are other alternatives for Latin American countries for finance and development.  How does the IMF feel about that?  

     

    MS. ZIEGLER: Okay, maybe one more on the region. Okay, go ahead.  Right there.   

     

    QUESTIONER: Hi, good morning. Of course, there have been some glowing words about how Caribbean countries have handled their policies over the past couple of years.  But of course, we also know that several Caribbean countries are vulnerable, particularly as a result of climate change.  So, my question is, what policies or what reforms can we see that will help provide a buffer with regard to climate activity that has been affecting the Caribbean?  

     

    MS. ZIEGLER: Okay.

     

    MR. VALDES: Okay. Look, reality is that we have been working for years with other partners in terms of regional arrangements.   We have Development Banks in the region, the IADB, we have CAF, we have FLAR (Latin American Reserve Fund) as another arrangement that lends money to central banks.  So perhaps the issue here is not whether we have these new institutions, but how to coordinate well.  We are convinced that the more coordination, the less fragmentation, that everybody works together is better.  Nobody needs the monopoly of this, but we need to work together.

     

    In terms of the Caribbean, I will ask Ana to go a bit more in detail. But it is very important to face reality for the Caribbean.  And they are doing it.  There’s a striking number.  Countries in the Caribbean lose 2.5 percent of GDP in capital per year, on average.   It does not happen every year, but every 10 years you can have a 25 percent loss.  So, you have to be prepared for that.  And that means that fiscal policy has to be geared towards that.   This is a multilayer system.  You have to be careful with investment.   Investment has to be more resilient.   You have to work in the insurance side, in contingency bonds, for example.  So, there is a lot to do.  Some countries have been very good on that.  Let me take the case of Jamaica and the last hurricane.  They had some possibilities to use contingencies for that case.  

     

    But let me pass to Ana to add a bit.  

     

    MS. CORBACHO: Thank you.  Certainly, the Caribbean region is very vulnerable to climate change shocks.  And we are concerned that the patterns of these shocks may be changing, becoming more severe and more frequent, which certainly requires more action on the government side and the multilateral community to support Caribbean economies.   

     

    In particular on policy measures, what we have emphasized in our dialogue is the need to integrate better mitigation and adaptation strategies in public investment plans.  Also fostering more active participation of private finance in increasing investment for climate resilience, as well as reducing the consumption of fuels through electrification.  An upside for the Caribbean is the green energy transition.  It could certainly give countries a chance to enhance resilience by investing in renewable energies, and through that, boosting competitiveness and lower exposure to climate change shocks.  Thank you.  

     

    MS. ZIEGLER: Great. We are going to take some questions online.  She says the IMF reduced the growth prospects for Mexico.   Could you tell me about the greatest risk that my country faces and the possibilities to grow a little more?  

     

    We have another one. She said, is it possible for Mexico to achieve the reduction of the fiscal deficit from 6 percent to 3 percent as the government intends, while maintaining spending on social transfer programs and energy subsidies?  

     

    So, while we are on Mexico, anybody else on Mexico in the room?  Please go ahead.  Wait — for the mic, please.    

     

    QUESTIONER: A bit more about violence and the risk that it poses to all the general policies, the challenges.  

     

    MS. ZIEGLER: Thank you. 

     

    MR. VALDES: Well, let me first say that we are in the middle of the Article IV process with Mexico.  So you will have a lot of details after it goes through the Board and the Article IV is published.  You probably have seen also the concluding statement published a couple of weeks ago.  But I can add a couple of things here.  One, we see bottlenecks in certain areas, and energy is one.  Infrastructure more generally as something that is a constraint right now in Mexico to take more advantage of — the opportunities it has with nearshoring and other possibilities.  The government is working on this, and we support fully that these are constraints that need to be alleviated.  

     

    In terms of fiscal, I would not want to make any… I mean, let us wait — for the budget. There is always the possibility, as we mentioned in the concluding statement, of have revenue mobilization at some stage.  We see, though, very importantly that there are steps towards consolidation.

     

    In terms of violence.  Look, here, I think we need to recognize that macroeconomists at least do not know a lot about how violence has impacts on the economy and the economy on violence.  So, I think it is very important to invest more knowledge on this.  Our own estimates – and this is a broad estimate – it’s not for Mexico specifically, but if the region were able to cut by half the difference it has between homicides suffering to the level of the world economy, growth could increase about half a percentage point for a good 10 years.  And that is more or less aligned with other estimates that are around.  So, in terms of the macro, this is something that is important.  

     

    Now, easier said than done because then the next question is what to do.  And there is where I would not want to make any comment because — we really, as macroeconomists, know very little. But we know that it’s important.  

     

    QUESTIONER: Good morning.  Can you hear me?  

     

    MS. ZIEGLER: We can hear you.  If you bear with us, we can’t see you yet.

     

    QUESTIONER: Good morning, Julie. Good morning, Mr. Valdes. The projection for Ecuador is 0.3 percent in 2024.  We want to know if the projection includes the energy crisis in Ecuador that has worsened with power outages of up to 14 hours.  What impact can the energy crisis have in Ecuador?   And do you feel that it will affect the fiscal goals of the extended facility program that Ecuador has?  Is there a possibility of a recession this year?   

     

    MS. ZIEGLER: Thank you. We have also we had questions submitted on Ecuador from Evelyn Tapia from PROMESA.  Does Ecuador’s growth projection for 2024 and 2025 include the effects of the electricity crisis that the country is experiencing?  When is the review of the program’s goals expected to end so that the country can receive the second disbursement for the Fund?  And when would that disbursement be made effective?   

     

    Ecuador? Anything else?  Okay.

     

    MR. VALDES: Okay, so everybody to be on the same page. Ecuador has a program with the Fund, an EFF, and we are close to have the First Review of the program.  I will ask Ana to go into more details on the growth considerations and other considerations you may want to add.  But let me just say that the authorities have been implementing this very strongly.  So — we are very optimistic, at least from the side of the commitment from the authorities on their own program that has been supported — by the Fund.  There will be a mission soon for this Review.  And of course, this new shock about electricity that has to do with climate, again — is bad news.  At the same time, the first half of the year was a bit stronger than expected.  

     

    But let me ask Ana to elaborate.  

     

    MS. CORBACHO: Thank you, Rodrigo.  I want to emphasize, as Rodrigo did, that the authorities are making very strong progress in advancing their stabilization program.  They have taken very important fiscal measures that are already showing results with an improvement in their fiscal position.  And we also see liquidity conditions, and notably the reserve position of the country, being stronger than we had expected when we approved the program in May.  

     

    Now Ecuador faces a very difficult electricity crisis with the worst drought in many decades.  The situation is still unfolding, but we would expect that it would have an impact both on economic conditions and fiscal needs.  And as we have more information, we may need to revise then the growth outlook for ’24 and ’25.  As of now, because the first part of the year was stronger than we had expected, we actually increased our forecast for 2024 growth from 0.1 to 0.3 percent.  

     

    In terms of the program, we expect that this would be discussed at the board by the end of the year, and upon completion of that review, if it is successful, there would be availability of the second disbursement in the program of $500 million.  Thank you.  

     

    MS. ZIEGLER: Now let us turn to Argentina. And we will take a bunch of questions.  Don’t worry.  

     

    QUESTIONER: Hi, good morning.  Thank you very much for taking my question.  My first question will relate — related that yesterday Kristalina Georgieva had a meeting with our Economy Minister, Luis Caputo.  Can you tell us what were the conversation and is coming very soon a mission to Argentina?  Just to the review of Nine and Ten Review.  Thank you very much.  

     

    MS. ZIEGLER: Thank you. I am going to take a few questions in the room first.  Please go ahead.  

     

    QUESTIONER: Thank you.  Rodrigo, I wanted to ask you, after criticism from President Javier Milei decided to step aside from the day-to-day negotiations with Argentina, but I was hoping you could tell us if you’re still involved in the back office discussions with the rest of the team about the future program and the ongoing economic situation in Argentina.  And for Luis, you were in both meetings with Gita Gopinath and Kristalina Georgieva yesterday.  I wanted to know if, in your view, has the Argentine government gained enough credibility, you know, with the fiscal front and with the ongoing economic recovery to come to the Fund and ask for an increase in the exposition with a new program?  Thanks.  

     

    MS. ZIEGLER: Okay.  Let’s go online.

     

    QUESTIONER: So, question for Mr. Cubeddu.  My question is to know what was discussed in the meeting yesterday between Ms. Georgieva and Minister Caputo.  And also, if you could — well, if the IMF is concerned about the lack of reserve accumulation in the central bank in recent months, if is there the possibility of grant a waiver maybe in the Tenth Review?  Thank you.

     

    MS. ZIEGLER: Great, thanks.  Let’s take one more and we’ll pause after that.  The woman here in the red shirt, please.  

     

    QUESTIONER: Hello, good morning. I would like to know if — how important is for the Fund for Argentina to release its capital controls and if you are discussing new money to help that within a new program.  

     

    MS. ZIEGLER: Okay, let us pause, or maybe one.  I saw someone behind you had one more question, and then perhaps we can — yes, go ahead.  And then we will move on. 

     

    QUESTIONER: The IMF pointed out in its last — in its latest staff report that it was necessary to eliminate the exchange rate for exporters and move forward with the removal of exchange controls.  What is your opinion on what has been done so far?  And is it possible, as the — government claims to achieve growth without — with — capital controls?  

     

    MS. ZIEGLER: Okay.  

     

    MR. VALDES: Okay, thank you for the several questions in Argentina.  Let me start from one.  There were a couple of questions, that I just want to say that, as a matter of policy, we do not disclose the conversations between authorities and management.  No, this is not our job.  Second point I want to mention is that the teams have been interacting very actively and constructively for several weeks already.  Ana has mentioned, the authorities are here, and that engagement has continued.  

     

    And finally, I have delegated the Argentina case to Luis Cubeddu, as you know.  And really, I do not have anything else to add on this.  

     

    MR. CUBEDDU: Very good.  And to address a few questions on Argentina and perhaps maybe also to first mention, thank Rodrigo for the deep trust in this complex and important case.  This is obviously a team effort, and it involves the technical team in Western Hemisphere as well as other departments.  

     

    Maybe to stress from yesterday’s conversation, our management, both Kristalina and Gita, as well as us, staff, met with the Argentine authorities, with Minister Caputo and Central Bank President Bausili.  I think in our conversations we stressed and underscored the important progress that has been made, particularly in reducing inflation and establishing a very strong fiscal anchor.  We now have nine months of primary surpluses and overall balances under our belt.  I think we also underscored that this has also allowed an improvement in the central bank balance sheet as well as a strengthening of international reserves from extremely low levels. 

     

    In those conversations, we also emphasize that challenges remain and that sustaining the gains that we have seen so far will require that policies evolve and that appropriately balance domestic as well as external considerations and external objectives.  In this regard, — we discussed the need — to gradually unwind some of the existing ethics restrictions and controls.  But obviously, this should be done in a carefully calibrated way to ensure that the process is an orderly one.  

     

    With regards to moving forward and the questions related to the program.  I think our teams continue to work closely — with the Argentine authorities.  The — discussions — have deepened in an effort to better understand and fully understand their plans in the period ahead.  The engagement in which we are in is taking place within the context of the current EFF.  Although the authorities are also exploring the options whether to move to a new program.  Our hope is that we will be in a position to provide a bit more information on this in terms of the strategy of engagement over the coming weeks.  

     

    So, I think with this I tried to summarize some of your questions and, although happy to answer as needed.  Thank you.  

     

    MS. ZIEGLER: Okay, that is good.  Please go ahead.  

     

    QUESTIONER: So, there is a law of fair taxation that is awaiting approval in my country, Honduras.  How does the IMF evaluate the fiscal policies implemented by the Honduran government and their impact on the country macroeconomic stability?

     

    MS. ZIEGLER: Why do not you take that, and I will — I think we have a couple people online for Chile that will get queued up while you answer that question.  

     

    MR. VALDES: Anything else on Honduras?   No?  Okay.  

     

    QUESTIONER: The last week Honduras has been successful, passed [inaudible].  The program is technical.  An agreement, that has been reached.  My question is whether advantage or benefit will there be for the country with IMF — another multilateral organization?  Thank you.  

     

    MS. ZIEGLER: Okay.  

     

    MR. VALDES: Okay.  Do you want to go to Chile too?  

     

    MS. ZIEGLER: Sure.  We’re — getting near the end, so let’s take a couple of people online.   

     

    QUESTIONER: Hi, Julie.  

     

    MS. ZIEGLER: Hi.  

     

    QUESTIONER: This is a question for Mr. Valdes.   There’s two questions actually.   The first is there is some doubt here in Chile about the fiscal revenue for next year.  Now we are in the process of the law for the next year.  So specifically for the new tax compliance law, if it is going to get the fixed revenue that the government expects, how do you see that?  And you see there is a risk there?  And the second question is about the growth because the Central Bank of Chile expect the long-term GDP growth for Chile going to be nowhere in the next years, 10 years, to 1.8.  Little lower than the report that you report that you had foreseen.  Do you see some sign signal from the government for to actually increase the long-term growth?  Because you talk — in the report about streamline the process for investment permit, the [inaudible], I would say here, and the strength security.   I know you can talk a little longer about that.  That’s the question.  Thank you.   

     

    MS. ZIEGLER: Okay, I have one more to add on Chile: in the case of Chile, do you think there are any measures that are not on the government’s agenda that are relevant for growth?  And then what is your view of Chile’s fiscal accounts?  Just mentioning the S&P highlighted the country’s fiscal consolidation, and Fitch warned that Chile is unlikely to meet its fiscal deficit target for 2024.  So — let us take those, and I think those will be the last questions of the briefing.  

     

    MR. VALDES: Okay, thank you, Julie.  Well, let me start with — Honduras.  Honduras has a Fund-supported program.  It took some time to reach Staff-Level Agreement for the First and Second Reviews combined, but we managed to have Staff-Level Agreement a few days ago.  And we are now working to bring the program to the review to the Board.  

     

    What I can say is that this program it is very important to safeguard macroeconomic stability.  We are — we agree on the policies needed for that, and the commitment of the authorities is very important to do their part in terms of fiscal monetary policy and effects policies such that we safeguard the macroeconomic stability.  The review is also very important because it will facilitate the disbursement of different credits for from other partners.  So, for example, the IDB and the World Bank.  So overall, this review is important because we are agreeing on policies that are needed.

     

    In terms of the Ley de Justicia Tributaria, which is in Congress, first, let me say that this law, we understand that this proposal incorporates many suggestions from the position in the private sector, and we value enormously the dialogue that countries can have with the different partners on this, and we salute that.  

     

    Second, more to the content.  There are about 15 corporate income tax special regimes — in Honduras, and by any metric that is too high.  So, it is very important the effort that they are doing to consolidate and hopefully end into three regimes.  And also, it is important to say that Honduras has tax exemptions of around 7 percent of GDP.  That is way above also of what we observe in other places.  And it is also important to discuss whether those regimes, those exemptions, are worth having or not.  And this law exactly proposes some discipline, if you want, on this.  We estimate that it would yield about 1 percent of GDP in revenues in the medium run.  

     

    In terms of Chile, well, you know, I am a Chilean.  So, I will — and we have some rules at the Fund that we should not speak about our countries too much.  So, I will defer the questions to the Mission Chief Andrea, who is available for this.  Although I can say a couple of more broad issues.  I do not want to enter into the fiscal reform law or other things.  

     

    But let me just say that there are important measures taken in Chile align with this call that we have about potential output growth.  They are making efforts to make more predictable and to shorten also the process of permits for the different investments, and that’s — we value that enormously.  Also, there are initiatives to facilitate labor force participation for women.  And that is also something that the Fund for a long time has been advocating.  Of course, this is a marathon.  And in a marathon, you have to — you do not have one silver bullet until you get to the end of the marathon with a couple of measures.  It takes much more in Chile and all countries.  What to do is very country specific.  But as I mentioned before, around rule of law, around security, around predictability, around the labor market, are many other ideas that could be advanced.  Thank you.  

     

    MS. ZIEGLER: Take one more. I know you wanted to ask your questions.  

     

    QUESTIONER: Thank you for taking my question.  What are the IMF’s recommendations for Brazil given the worsening forecasts for public debt?  And the government is working on new measures to cut spending.  What is the importance of these measures?  And additionally, how will fiscal policies, you know, these new measures and higher interest rates, impact future growth?  Thanks.

     

    MS. ZIEGLER: Thanks.  And that is the last question.  

     

    MR. VALDES: Okay, so let me just react to — the question in the following sense.  Brazil has, as other countries, this challenge of how to implement a level of consolidation that is very important to stabilize debt and has a challenge that’s probably not everywhere.  And it is a difficult challenge.  Many of the expenditures are very rigid.  So politically speaking, it is more difficult.  You have to work in the taxation mechanisms that are there.  We understand that they are doing that.  We have recommended that for some time, and that should facilitate this.  

     

    Importantly, in this tango between the central bank and fiscal, we should not look only to the fiscal side.  We should also do it together with monetary policy.  So the growth effects of a consolidation should not be really bad.  First, it could be positive by itself by lowering risk premia, and second, opens up the possibility of — lower rates, and that is important.  

     

    Ana was the Mission Chief for Brazil and now is the reviewer of Brazil, so she may want to add something.  

     

    MS. CORBACHO: Yeah, I just want to say that in our baseline forecast, we do expect an improvement in the fiscal position of Brazil.  But what we have been emphasizing is that this improvement needs to be tackled and underpinned by very concrete revenue and spending measures.  Rodrigo mentioned the challenge of making the budget more flexible.  This will help Brazil have more space to respond to new spending priorities as well as shocks, unforeseen shocks.  It requires deep structural reforms in the big items of spending categories, in wages, in pensions, floors for certain items of the budget, and many more spending rigidities that are very particular to Brazil.  There’s also an agenda to foster revenue mobilization, particularly by reducing inefficient tax expenditures.  And after the groundbreaking VAT Reform, considering also reforms of personal income tax and corporate income tax.  Thank you.  

     

    MR. VALDES: If I just may add as a closing, that we will have the Regional Economic Outlook launch in Paraguay on November 4th.   The report has a couple of accompanying papers on fiscal and labor force participation, labor markets, that are pretty interesting, very detailed.  I hope useful.  Thank you.   

     

    MS. ZIEGLER: Thank you, Rodrigo.  Thank you, Ana.  Thank you, Luis.  This concludes the press briefing.  

     

    SPEAKER: Question on Colombia.

     

    MS. ZIEGLER: Okay.  We can take, if you agree, Colombia.   

     

    MR. VALDES: Yeah, but you should say it before.   Okay, go ahead.  

     

    QUESTIONER: You can do it in Spanish if it is easier for you.  And please, if you can answer in Spanish.   Dr. Rodrigo, for 11 years you have spoken about reforms, but I see that the reforms are really complicated.  Even today, Colombia has not been able to bring about a tax reform in order to collect $3 billion, a little billion dollars, which is just a minor amount at an international level.  What is truly recommended by the IMF so that the reforms will move forward and will not have to face the hurdles and the respective congresses, so that countries can improve their flow of investment and for the trade to truly be dynamic?  You know the history of Colombia.  We grew at 4 percent and now not even at 2 percent.  Thank you.  

     

    MR. VALDES: Thank you for the question.  I will answer in Spanish.  What you are showing is the difficulty in developing reforms.  And when we say, let us develop reforms, we do not do it in a vacuum without understanding that the policy is difficult and not because we face difficulties that would stop us from doing it.  It is key for the region to continue expediting, accelerating the development of reforms and hopefully for the benefit of growth and not only for other things.  And specifically, it is important to do it because of what you were saying, because the potential growth, even in the countries that grew faster 5 or 10 years ago, such as the Pacific Partnership or the Pacific Alliance, has reached an average again.  And we are worried that with that very low average, lower than emerging Europe and much lower than that of emerging Asia, obviously the social needs, the fiscal needs, will not be solved.  And therefore, the appeal is to double effort.  There’s no way of skipping the political effort.  

     

    MS. ZIEGLER: Okay.  If you — have any other questions, please feel free to reach out to us via email at media@imf.org.  Thank you all for attending.  

     

    *  *  *   *  *

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Julie Ziegler

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/25/tr-102524-press-briefing-western-hemisphere-department

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI China: Xi’s trip to BRICS summit marks new chapter of unity, development for Global South: Chinese FM

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

    Xi’s trip to BRICS summit marks new chapter of unity, development for Global South: Chinese FM

    BEIJING, Oct. 25 — Chinese President Xi Jinping’s trip to the 16th BRICS Summit has marked a new chapter of solidarity and self-strengthening of BRICS nations, and opened up new prospects for development and prosperity of the Global South, Foreign Minister Wang Yi has said.

    China, Wang said after Xi’s trip to the Russian city of Kazan, has once again played a vital role as a driving force of BRICS cooperation as well as a core member of the Global South.

    During the summit, Xi elaborated on the direction and fundamental principles of greater BRICS cooperation, emphasized that BRICS nations were gathering for their shared pursuit, and called for joint efforts to build BRICS into a primary channel for strengthening solidarity and cooperation among Global South nations and a vanguard for advancing global governance reform, said Wang, also a member of the Political Bureau of the Communist Party of China Central Committee.

    Xi pointed out that BRICS countries should build a BRICS committed to peace, innovation, green development, justice, and closer people-to-people exchanges, and act as defenders of common security, pioneers of high-quality development, promoters of sustainable development, forerunners in reforming global governance, advocates for harmonious coexistence among all civilizations, and announced eight pragmatic measures to support the high-quality development of BRICS cooperation, Wang said.

    Noting that a consensus was reached to invite a new group of countries to become BRICS partner nations at the Kazan Summit, Wang said the BRICS mechanism is fundamentally different from the cliques characterized by rigid Cold War mentalities and bloc confrontations, and it is certain to inject strong momentum into achieving an equal and orderly multipolar world as well as a universally beneficial and inclusive economic globalization.

    The collective rise of the Global South is a distinctive feature of the great transformation across the world, Wang said, adding that as Xi said in Kazan, the Global South countries marching together toward modernization is monumental in world history, yet the road to prosperity for the Global South will not be straight.

    Xi called on BRICS countries, who stand at the forefront of the Global South, to use collective wisdom and strength to uphold peace and come forward together to form a stabilizing force for peace, reinvigorate development and make themselves the main driving force for common development, and to promote together the development of all civilizations and be advocates for exchanges among civilizations, Wang noted.

    This year marks the 75th anniversary of the establishment of diplomatic relations between China and Russia, Wang said, noting that during the meeting between Xi and Russian President Vladimir Putin, the two heads of state believed that China and Russia have found the right way to get along with each other, which features non-alliance, non-confrontation and not targeting any third party.

    The global community has paid extensive attention to Xi and Indian Prime Minister Narendra Modi’s bilateral meeting, their first formal one in five years, Wang said.

    During the meeting, Xi urged the two countries to maintain a sound strategic perception of each other, work together to find the right and bright path for big, neighboring countries to live in harmony and develop side by side, facilitate each other’s pursuit of development aspirations, and set an example in boosting the strength and unity of developing countries, Wang said.

    He added that the two leaders also agreed to work together to ensure peace and tranquility in the border areas and bring the relationship back to sound and steady development at an early date.

    MIL OSI China News –

  • MIL-OSI USA News: G7 Leaders’ Statement on Extraordinary Revenue Acceleration (ERA)  Loans

    Source: The White House

    Today, we, the Leaders of the Group of Seven (G7), have reached a consensus on how to deliver approximately $50 billion in Extraordinary Revenue Acceleration (ERA) loans to Ukraine.

    These loans will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets, in line with G7 respective legal systems and international law. The loan proceeds will be disbursed through multiple channels to support Ukraine’s budgetary, military and reconstruction assistance, as consistent with all applicable law and G7 members’ respective legal systems. Our aim is to begin disbursing the funds by the end of the year.

    We express our utmost appreciation for the timely implementation of this historic G7 Leaders’ decision by the Finance Ministers, who have agreed on a technical solution ensuring consistency, coordination, fair distribution of lending, and solidarity among all G7 partners. We are particularly grateful to the European Union and its Member States for their constructive engagement towards this remarkable result.

    Today’s announcement confirms that the G7 fulfills the commitment they made in June at the Apulia G7 Leaders’ Summit. Russian illegal and unprovoked aggression has caused untold harm to the people of Ukraine and to global peace and security. We will not tire in our resolve to give Ukraine the support it needs to prevail. Russia must end its illegal war of aggression and pay for the damage it has caused to Ukraine in line with international law.

    The G7 remains steadfast in its solidarity to support Ukraine’s fight for freedom, and its recovery and reconstruction. With the large amount of financing from the ERA loans to meet its pressing need, we have once again made clear our unwavering commitment to stand by Ukraine for as long as it takes. Time is not on President Putin’s side.

    ###

    MIL OSI USA News –

  • MIL-OSI Economics: AI-powered drone swarms transform industries beyond defense, reveals GlobalData’s Technology Foresights

    Source: GlobalData

    AI-powered drone swarms transform industries beyond defense, reveals GlobalData’s Technology Foresights

    Posted in Disruptor

    While drone swarms have been an area of technological development for many years, their practical applications have only recently gained significant momentum, particularly following increased attention during the Russia-Ukraine war, as reflected in Google search trends. The rapid advancement in AI technologies has further accelerated drone swarm control capabilities, enabling the integration of computer vision algorithms and geospatial data to recognize patterns and automate previously impossible operations. This evolution has led to drone swarms finding diverse applications across multiple industries, earning recognition as a high-impact innovation, according to Technology Foresights, an innovation intelligence platform by GlobalData, a leading data and analytics company.

    The latest advancement in drone swarm technology significantly enhances operational efficiency by eliminating the traditional requirement of one operator per drone. This breakthrough achieves advanced autonomy through onboard intelligent agents, developed using human-in-loop and trustworthy AI systems. These agents can independently assess their surroundings, exchange target data with other drones, and make mission-priority decisions without requiring constant communication with the control station. This innovation addresses a critical weakness in swarm-based warfare systems, where electronic warfare tactics frequently overwhelm communication systems and disrupt the data connection between drones and their control stations.

    Sourabh Nyalkalkar, Practice Head of Innovation Products at GlobalData, comments: “In an era marked by escalating geopolitical tensions, drone warfare has emerged as a pivotal element in modern military operations, with armed forces globally embracing unmanned aerial vehicles for a diverse range of tactical and reconnaissance missions. In a significant development, defense industry major Thales recently showcased a full-scale demonstration of drone swarm deployment, featuring multiple autonomy levels that significantly reduce operator cognitive burden. The company’s expertise in this domain has not gone unnoticed, as Thales has been recognized as one of the leaders in drone swarm control innovation, according to Technology Foresights.”

    In response to the current geopolitical climate and growing military demand for advanced drone capabilities, drone swarm control technology is expected to experience significant growth. Patent analysis reveals that over 50% of technology patents in this field have been granted within the past three years, with major corporations holding the majority share.

    Though smaller in proportion, startup-owned patents are rapidly increasing, accompanied by growing investment activity in the sector. Recent developments highlight this trend, as demonstrated by Ukrainian startup Swarmer securing $2.7mn in funding for the development and commercialization of its AI-based swarm control technology, Styx, while another US-based startup, EchelonAI, entered into M&A with Skyfire.

    Nyalkalkar continues: “The innovation landscape in drone swarm control technologies extends well beyond the defense sector, with significant developments emerging from the communications and networking industry. Telecommunication companies are rapidly adopting drone swarms for various applications, including network optimization, infrastructure monitoring, and emergency coverage deployment in critical areas.”

    The technology’s development ecosystem is diverse and competitive, with over 100 companies actively innovating in this space. While defense industry leaders like Thales, RTX, Northrop Grumman, and BAE Systems continue to advance military applications, specialized drone manufacturers such as SZ DJI, Skydio, and Tevel are making significant contributions.

    Additionally, major telecommunications players including Qualcomm, Ericsson, Verizon, and AT&T are developing their own drone swarm solutions, while geospatial solution providers like Here and Geofrenzy are expanding the technology’s capabilities.

    Nyalkalkar concludes: “The rapid advancement of AI technology has catalyzed unprecedented growth in drone swarm applications across diverse sectors. Retail and logistics giants such as Amazon, Walmart, and UPS are developing autonomous master-slave drone networks for last-mile delivery, while agritech companies such as Nileworks are creating innovative solutions for crop monitoring.

    “As drone swarm control technologies continue to evolve beyond traditional entertainment and light shows, this dynamic field promises exciting developments and transformative applications across multiple industries in the coming years.”

    MIL OSI Economics –

  • MIL-OSI Russia: Dmitry Chernyshenko: All regions of Russia and eight friendly countries participate in the Abilympics championship

    Translation. Region: Russian Federation –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Deputy Prime Minister Dmitry Chernyshenko attended the events of the final of the National Championship of Professional Skills among the Disabled and People with Limited Health Abilities “Abilympics”, which started at Gostiny Dvor in Moscow.

    Dmitry Chernyshenko attended the events of the final of the National Championship of Professional Skills among the Disabled and People with Disabilities “Abilympics”, which started in Gostiny Dvor in Moscow

    October 26, 2024

    Dmitry Chernyshenko attended the events of the final of the National Championship of Professional Skills among the Disabled and People with Disabilities “Abilympics”, which started in Gostiny Dvor in Moscow

    October 26, 2024

    Dmitry Chernyshenko attended the events of the final of the National Championship of Professional Skills among the Disabled and People with Disabilities “Abilympics”, which started in Gostiny Dvor in Moscow

    October 26, 2024

    Dmitry Chernyshenko attended the events of the final of the National Championship of Professional Skills among the Disabled and People with Disabilities “Abilympics”, which started in Gostiny Dvor in Moscow

    October 26, 2024

    Previous news Next news

    Dmitry Chernyshenko attended the events of the final of the National Championship of Professional Skills among the Disabled and People with Disabilities “Abilympics”, which started in Gostiny Dvor in Moscow

    The Deputy Prime Minister emphasized the importance of the championship and noted that in 10 years, Abilympics has come a long way, increasing the number of participants from 250 to 120 thousand.

    “We have more than 1.2 million children with various types of disabilities who need to be given the opportunity to compete and be active citizens of society. And, as President Vladimir Putin instructed, to realize their potential and talents. And we saw a lot of talent at the championship. Today, representatives of all regions of the country are here, including new subjects. What is noteworthy is that eight friendly countries are also participating in these competitions. I believe that the most important result of “Abilympics” is that 93% of participants find work after the championship,” said Dmitry Chernyshenko.

    The Deputy Prime Minister also expressed gratitude to the Moscow government, where the Abilympics finals are traditionally held. He emphasized that he is grateful to businesses that responsibly approach the creation of jobs for people with disabilities.

    The Deputy Prime Minister visited the venues where the championship was held. At the stand of the Ministry of Industry and Trade of Russia, he was presented with the latest technical rehabilitation equipment for people with disabilities. He also got acquainted with the exhibition and sale of goods from entrepreneurs who opened their own businesses.

    In addition, the Deputy Prime Minister spoke with participants and experts in various competencies, including Pottery, Industrial Robotics, Graphic Design, and Character Design/Animation.

    At Gostiny Dvor, the Deputy Prime Minister was accompanied by Deputy Minister of Education Olga Koludarova, Minister of the Moscow Government, Head of the Moscow Department of Labor and Social Protection of the Population Evgeny Struzhak, and Head of the National Center “Abilympics” of the Institute for the Development of Professional Education Dina Makeeva.

    “Over the past 10 years, the movement has become an important part of the system of professional education and employment of people with disabilities. Thanks to Abilympics, thousands of talented schoolchildren, students and working citizens have the opportunity to demonstrate their skills and abilities, as well as find a job they like. And we are confident that the Abilympics movement will continue to develop. This year, regional centers for the development of the movement opened in the Donetsk People’s Republic and the Kherson region. We hope that in the future, Abilympics will open its representative offices in all regions of our country,” noted Dina Makeeva.

    The championship competitions in 2024 will be held in 50 approved core competencies in 11 areas of the economy: education, IT technologies, arts and crafts, creative industries, industry, catering, services, economics and management, construction, and medical professions. The judging will be carried out by 277 experts from 52 subjects of the Russian Federation.

    It is also planned to hold competitions in 12 competencies and 1 presentation competence of the championship with the participation of representatives of friendly states in person: the Republic of Azerbaijan, the Republic of Abkhazia, the Republic of Belarus, the Republic of Zimbabwe and the State of Qatar. Representatives of the Republic of Armenia, the Republic of Nicaragua and the People’s Republic of China will participate remotely.

    Over 10 years, the number of subjects of the Russian Federation where regional Abilympics championships are held has increased from 29 to 89, and the number of competitive competencies has grown from 29 to 206.

    The project operator is the National Center “Abilympics” of the Institute for the Development of Professional Education, Ministry of Education of the Russian Federation.

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

    MIL OSI Russia News –

  • MIL-OSI: Trustco Reports Third Quarter 2024 Net Income of $12.9 Million; Skillful Application of Strong Fundamentals Produce Solid Results

    Source: GlobeNewswire (MIL-OSI)

    Executive Snapshot:

    • Average Loan portfolio continues to grow:
      • On average, total loans were up $127.0 million or 2.6% for the third quarter 2024 compared to the third quarter 2023
    • Continued solid financial results:
      • Key metrics for third quarter 2024:
        • Net income of $12.9 million versus $12.6 million for the second quarter 2024
        • Net interest income of $38.7 million, up from $37.8 million compared to the second quarter of 2024
        • Return on average equity (ROAE) of 7.74% versus 7.76% for the second quarter 2024
    • Capital continues to grow:
      • Consolidated equity to assets increased 6.2% to 10.95% as of September 30, 2024 from 10.31% as of September 30, 2023
      • Book value per share as of September 30, 2024 was $35.19, up from $34.46 compared to June 30, 2024

    GLENVILLE, N.Y., Oct. 21, 2024 (GLOBE NEWSWIRE) —

    TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced third quarter 2024 net income of $12.9 million or $0.68 diluted earnings per share, compared to net income of $14.7 million or $0.77 diluted earnings per share for the third quarter 2023; and net income of $37.6 million or $1.97 diluted earnings per share for the nine months ended September 30, 2024, compared to net income of $48.9 million or $2.57 diluted earnings per share for the nine months ended September 30, 2023. Average loans increased $127.0 million or 2.6% for the third quarter 2024 over the same period in 2023.   TrustCo was able to increase the balances of home equity lines of credit (HECLs) outstanding through an aggressive campaign to encourage existing customers to utilize their HECLs in place of the higher rates on other products.  The objective was to meet customer needs and encourage increased utilization through existing HECLs.

    Overview

    Chairman, President, and CEO, Robert J. McCormick said “Hard, consistent work on the fundamentals of banking once again have served the Trustco Bank team well and enabled us to post strong results under challenging circumstances. Our bankers posted one modest success after another – which accumulated into solid performance. We continued to hold the line on demand accounts and capitalized on strong customer relationships which enabled us to direct the flow into competitively-priced CDs, rather than to non-bank investment products. Not having to purchase expensive deposits or pay excessive rates, helped keep interest expense down, contributing to increased net interest income. We have continued to sell home equity products at favorable rates where origination of purchase mortgages lagged due to lack of sales volume. We booked these new loans at higher interest rates, also boosting net interest margin. Once again, loans reached a new all-time high. All of these efforts by our team resulted in net income of $12.9 million for the quarter.”

    Details

    Average loans were up $127.0 million or 2.6% in the third quarter 2024 over the same period in 2023. Average residential loans and home equity lines of credit, our primary lending focus, were up $50.4 million, or 1.2%, and $60.0 million, or 18.7%, respectively, in the third quarter 2024 over the same period in 2023. Average commercial loans also increased $18.1 million, or 6.9%, in the third quarter 2024 over the same period in 2023. Average deposits were up $15.3 million, or 0.3% for the third quarter 2024 over the same period in 2023. We believe the increase in time deposits compared to the prior year continues to reflect the desire of customers to have additional funds in the safety and security offered by TrustCo’s long history of conservative banking, while earning a competitive interest rate. As we move forward, the objective is to encourage customers to retain these additional funds in the expanded product offerings of Trustco Bank (the “Bank”) through aggressive marketing and product differentiation.

    Net interest income was $38.7 million for the third quarter 2024, an increase of $883 thousand, or 2.3%, compared to the prior quarter, driven by loan growth at higher interest rates and lower cost of deposits, partially offset by lower investment earnings and a decrease in interest on federal funds sold and other short-term investments. The net interest margin for the third quarter 2024 was 2.61%, up 8 basis points from 2.53% in the second quarter of 2024. The yield on interest earnings assets increased to 4.11%, up 5 basis points from 4.06% in the second quarter of 2024. The cost of interest bearing liabilities decreased to 1.94% in the third quarter 2024 from 1.97% in the second quarter 2024. The Bank has seen success in retaining deposits while lowering the rates on time deposits, and still being competitive in the markets it serves. The Federal Reserve’s decision regarding whether to cut or hold rates in upcoming meetings will have an effect on the Bank’s ability to continue to manage deposit costs. Further reductions should help margin expansion in future quarters. Non-interest expense decreased $259 thousand over the prior quarter as a result of the Bank’s ongoing efforts to control expenses.

    Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of $500 thousand in the third quarter of 2024, which is the result of a provision for credit losses on loans of $400 thousand, and provision for credit losses on unfunded commitments of $100 thousand. The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.95% as of September 30, 2024 and 2023, respectively. The allowance for credit losses on loans was $50.0 million at September 30, 2024, compared to $47.2 million at September 30, 2023. Nonperforming loans (NPLs) were $19.4 million at September 30, 2024, compared to $17.9 million at September 30, 2023. NPLs were 0.38% and 0.36% of total loans at September 30, 2024 and 2023, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 256.9% at September 30, 2024, compared to 264.2% at September 30, 2023. Nonperforming assets (NPAs) were $21.9 million at September 30, 2024, compared to $19.1 million at September 30, 2023.  

    At September 30, 2024, our equity to asset ratio was 10.95%, compared to 10.31% at September 30, 2023. Book value per share at September 30, 2024 was $35.19, up 7.3% compared to $32.80 a year earlier.

    A conference call to discuss third quarter 2024 results will be held at 9:00 a.m. Eastern Time on October 22, 2024. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 034120. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 285814.   The call will also be audio webcast at https://events.q4inc.com/attendee/854762065, and will be available for one year.

    About TrustCo Bank Corp NY

    TrustCo Bank Corp NY is a $6.1 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 138 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at September 30, 2024.

    In addition, the Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.

    Forward-Looking Statements

    All statements in this news release that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers’ business, including deposit balances, with us, the impact of the Federal Reserve’s actions regarding interest rates, and the growth of loans and deposits throughout our branch network. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; and other risks and uncertainties under the heading “Risk Factors” in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

     
    TRUSTCO BANK CORP NY
    GLENVILLE, NY
             
    FINANCIAL HIGHLIGHTS
             
    (dollars in thousands, except per share data)
    (Unaudited)
        Three months ended        
        9/30/2024   6/30/2024   9/30/2023        
    Summary of operations                    
    Net interest income   $ 38,671     $ 37,788     $ 42,221              
    Provision for credit losses     500       500       100          
    Net gains on equity securities     23       1,360       –          
    Noninterest income, excluding net gains on equity securities     4,908       4,291       4,574          
    Noninterest expense     26,200       26,459       27,460          
    Net income     12,875       12,551       14,680          
                         
    Per share                    
    Net income per share:                    
    – Basic   $ 0.68     $ 0.66     $ 0.77          
    – Diluted     0.68       0.66       0.77          
    Cash dividends     0.36       0.36       0.36          
    Book value at period end     35.19       34.46       32.80              
    Market price at period end     33.07       28.77       27.29          
                         
    At period end                    
    Full time equivalent employees     735       753       764          
    Full service banking offices     138       138       143          
                         
    Performance ratios                    
    Return on average assets     0.84   %   0.82   %   0.96   %      
    Return on average equity     7.74       7.76       9.32          
    Efficiency ratio (1)     59.65       62.84       58.33          
    Net interest spread     2.17       2.09       2.55          
    Net interest margin     2.61       2.53       2.85          
    Dividend payout ratio     53.16       54.57       46.65              
                             
    Capital ratios at period end                        
    Consolidated equity to assets     10.95   %   10.73   %   10.31   %          
    Consolidated tangible equity to tangible assets (2)     10.94   %   10.72   %   10.30   %      
                         
    Asset quality analysis at period end                    
    Nonperforming loans to total loans     0.38   %   0.38   %   0.36   %      
    Nonperforming assets to total assets     0.36       0.35       0.31          
    Allowance for credit losses on loans to total loans     0.99       0.99       0.95          
    Coverage ratio (3)   2.6x   2.6x   2.6x        
                         
                         
    (1) Non-GAAP measure; calculated as noninterest expense (excluding ORE expense) divided by taxable equivalent net interest income plus noninterest income (excluding net gains on equity securities).
    See Non-GAAP Financial Measures Reconciliation.
    (2) Non-GAAP measure; calculated as total shareholders’ equity less $553 of intangible assets divided by total assets less $553 of intangible assets. See Non-GAAP Financial Measures Reconciliation.
    (3) Calculated as allowance for credit losses on loans divided by total nonperforming loans.
                         
                         
    FINANCIAL HIGHLIGHTS, Continued
               
    (dollars in thousands, except per share data)
    (Unaudited)
        Nine Months Ended            
        09/30/24   09/30/23            
    Summary of operations                    
    Net interest income $   113,037       133,238              
    Provision (Credit) for credit losses     1,600       (100 )            
    Net gains on equity securities     1,383       –              
    Noninterest income, excluding net gains on equity securities     14,042       13,841              
    Noninterest expense     77,562       82,466              
    Net income     37,552       48,798              
                         
    Per share                    
    Net income per share:                    
    – Basic $   1.97       2.57              
    – Diluted     1.97       2.57              
    Cash dividends     1.08       1.08              
    Book value at period end     35.19       32.80              
    Market price at period end     33.07       27.29              
                         
    Performance ratios                    
    Return on average assets     0.82   %   1.08              
    Return on average equity     7.68       10.57                  
    Efficiency ratio (1)     60.80       55.70                  
    Net interest spread     2.08       2.78                  
    Net interest margin     2.52       3.01            
    Dividend payout ratio     54.70       42.11                  
                             
    (1) Non-GAAP measure; calculated as noninterest expense (excluding ORE expense) divided by taxable equivalent net interest income plus noninterest income (excluding net gains on equity securities).
    See Non-GAAP Financial Measures Reconciliation.
                         
                         
    CONSOLIDATED STATEMENTS OF INCOME
                         
    (dollars in thousands, except per share data)
    (Unaudited)
        Three months ended
        9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
    Interest and dividend income:                    
    Interest and fees on loans   $ 52,112     $ 50,660     $ 49,804     $ 49,201     $ 47,921  
    Interest and dividends on securities available for sale:                    
    U. S. government sponsored enterprises     718       909       906       750       672  
    State and political subdivisions     –       1       –       1       –  
    Mortgage-backed securities and collateralized mortgage                    
    obligations – residential     1,397       1,451       1,494       1,533       1,485  
    Corporate bonds     361       362       476       477       473  
    Small Business Administration – guaranteed                    
    participation securities     90       94       100       102       107  
    Other securities     2       2       3       3       2  
    Total interest and dividends on securities available for sale     2,568       2,819       2,979       2,866       2,739  
                         
    Interest on held to maturity securities:                    
    Mortgage-backed securities and collateralized mortgage                    
    obligations – residential     62       65       68       70       73  
    Total interest on held to maturity securities     62       65       68       70       73  
                         
    Federal Home Loan Bank stock     153       147       152       149       131  
                         
    Interest on federal funds sold and other short-term investments     6,174       6,894       6,750       6,354       6,688  
    Total interest income     61,069       60,585       59,753       58,640       57,552  
                         
    Interest expense:                    
    Interest on deposits:                    
    Interest-bearing checking     311       288       240       165       102  
    Savings     770       675       712       707       639  
    Money market deposit accounts     2,154       2,228       2,342       2,500       2,384  
    Time deposits     18,969       19,400       19,677       16,460       11,962  
    Interest on short-term borrowings     194       206       204       201       244  
    Total interest expense     22,398       22,797       23,175       20,033       15,331  
                         
    Net interest income     38,671       37,788       36,578       38,607       42,221  
                         
    Less: Provision for credit losses     500       500       600       1,350       100  
    Net interest income after provision for credit losses     38,171       37,288       35,978       37,257       42,121  
                         
    Noninterest income:                    
    Trustco Financial Services income     2,044       1,609       1,816       1,612       1,627  
    Fees for services to customers     2,482       2,399       2,745       2,563       2,590  
    Net gains on equity securities     23       1,360       –       –       –  
    Other     382       283       282       299       357  
    Total noninterest income     4,931       5,651       4,843       4,474       4,574  
                         
    Noninterest expenses:                    
    Salaries and employee benefits     12,134       12,520       11,427       12,444       12,393  
    Net occupancy expense     4,271       4,375       4,611       4,209       4,358  
    Equipment expense     1,757       1,990       1,738       1,852       1,923  
    Professional services     1,863       1,570       1,460       1,561       1,717  
    Outsourced services     2,551       2,755       2,501       2,532       2,720  
    Advertising expense     339       466       408       384       586  
    FDIC and other insurance     1,112       797       1,094       1,085       1,078  
    Other real estate expense (income), net     204       16       74       (12 )     163  
    Other     1,969       1,970       1,590       4,776       2,522  
    Total noninterest expenses     26,200       26,459       24,903       28,831       27,460  
                         
    Income before taxes     16,902       16,480       15,918       12,900       19,235  
    Income taxes     4,027       3,929       3,792       3,052       4,555  
                         
    Net income   $ 12,875     $ 12,551     $ 12,126     $ 9,848     $ 14,680  
                         
    Net income per common share:                    
    – Basic   $ 0.68     $ 0.66     $ 0.64     $ 0.52     $ 0.77  
                         
    – Diluted     0.68       0.66       0.64       0.52       0.77  
                         
    Average basic shares (in thousands)     19,010       19,022       19,024       19,024       19,024  
    Average diluted shares (in thousands)     19,036       19,033       19,032       19,026       19,024  
                         
                         
                         
    CONSOLIDATED STATEMENTS OF INCOME, Continued
               
    (dollars in thousands, except per share data)
    (Unaudited)
        Nine Months Ended            
        09/30/24   09/30/23            
    Interest and dividend income:                        
    Interest and fees on loans $   152,576       138,255                  
    Interest and dividends on securities available for sale:                        
    U. S. government sponsored enterprises     2,533       2,055                  
    State and political subdivisions     1       1                  
    Mortgage-backed securities and collateralized mortgage                        
    obligations – residential     4,342       4,613                  
    Corporate bonds     1,199       1,510                  
    Small Business Administration – guaranteed                        
    participation securities     284       335                  
    Other securities     7       7                  
    Total interest and dividends on securities available for sale     8,366       8,521                  
                         
    Interest on held to maturity securities:                    
    Mortgage-backed securities-residential     195       226                  
    Total interest on held to maturity securities     195       226                  
                         
    Federal Home Loan Bank stock     452       351                  
                         
    Interest on federal funds sold and other short-term investments     19,818       20,213                  
    Total interest income     181,407       167,566                  
                         
    Interest expense:                    
    Interest on deposits:                    
    Interest-bearing checking     839       217                  
    Savings     2,157       1,824                  
    Money market deposit accounts     6,724       4,954                  
    Time deposits     58,046       26,525                  
    Interest on short-term borrowings     604       808                  
    Total interest expense     68,370       34,328                  
                         
    Net interest income     113,037       133,238                  
                         
    Less: Provision (Credit) for credit losses     1,600       (100 )                
    Net interest income after provision (credit) for credit losses     111,437       133,338                  
                         
    Noninterest income:                    
    Trustco Financial Services income     5,469       4,813                  
    Fees for services to customers     7,626       8,085                  
    Net gains on equity securities     1,383       –                  
    Other     947       943                  
    Total noninterest income     15,425       13,841                  
                         
    Noninterest expenses:                    
    Salaries and employee benefits     36,081       38,798                  
    Net occupancy expense     13,257       13,218                  
    Equipment expense     5,485       5,758                  
    Professional services     4,893       4,684                  
    Outsourced services     7,807       7,507                  
    Advertising expense     1,213       1,494                  
    FDIC and other insurance     3,003       3,215                  
    Other real estate expense, net     294       536                  
    Other     5,529       7,256                  
    Total noninterest expenses     77,562       82,466                  
                         
    Income before taxes     49,300       64,713                  
    Income taxes     11,748       15,915                  
                         
    Net income $   37,552       48,798                      
                             
    Net income per common share:                    
    – Basic $   1.97       2.57              
                         
    – Diluted     1.97       2.57              
                         
    Average basic shares (in thousands)     19,019       19,024              
    Average diluted shares (in thousands)     19,034       19,024              
                         
                         
                         
                         
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
     
    (dollars in thousands)
    (Unaudited)
        9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
    ASSETS:                    
                         
    Cash and due from banks   $ 49,659     $ 42,193     $ 44,868     $ 49,274     $ 45,940  
    Federal funds sold and other short term investments     473,306       493,920       564,815       528,730       461,321  
    Total cash and cash equivalents     522,965       536,113       609,683       578,004       507,261  
                       
    Securities available for sale:                  
    U. S. government sponsored enterprises     90,588       106,796       128,854       118,668       121,474  
    States and political subdivisions     26       26       26       26       34  
    Mortgage-backed securities and collateralized mortgage                  
    obligations – residential     222,841       218,311       227,078       237,677       233,719  
    Small Business Administration – guaranteed                    
    participation securities     15,171       15,592       16,260       17,186       17,316  
    Corporate bonds     54,327       53,764       53,341       78,052       76,935  
    Other securities     701       688       682       680       657  
    Total securities available for sale     383,654       395,177       426,241       452,289       450,135  
                         
    Held to maturity securities:                    
    Mortgage-backed securities and collateralized mortgage                    
    obligations-residential     5,636       5,921       6,206       6,458       6,724  
    Total held to maturity securities     5,636       5,921       6,206       6,458       6,724  
                         
    Federal Reserve Bank and Federal Home Loan Bank stock     6,507       6,507       6,203       6,203       6,203  
                       
    Loans:                  
    Commercial     280,261       282,441       279,092       273,515       268,642  
    Residential mortgage loans     4,382,674       4,370,640       4,354,369       4,365,063       4,343,006  
    Home equity line of credit     393,418       370,063       355,879       347,415       332,028  
    Installment loans     14,503       15,168       16,166       16,886       16,605  
    Loans, net of deferred net costs     5,070,856       5,038,312       5,005,506       5,002,879       4,960,281  
                       
    Less: Allowance for credit losses on loans     49,950       49,772       49,220       48,578       47,226  
    Net loans     5,020,906       4,988,540       4,956,286       4,954,301       4,913,055  
                         
    Bank premises and equipment, net     33,324       33,466       33,423       34,007       32,135  
    Operating lease right-of-use assets     37,958       38,376       39,647       40,542       41,475  
    Other assets     98,730       102,544       101,881       96,387       97,310  
                       
    Total assets   $ 6,109,680     $ 6,106,644     $ 6,179,570     $ 6,168,191     $ 6,054,298  
                       
    LIABILITIES:                  
    Deposits:                  
    Demand   $ 753,878     $ 745,227     $ 742,997     $ 754,532     $ 773,293  
    Interest-bearing checking     988,527       1,029,606       1,020,136       1,015,213       1,033,898  
    Savings accounts     1,092,038       1,144,427       1,155,517       1,179,241       1,235,658  
    Money market deposit accounts     477,113       517,445       532,611       565,767       610,012  
    Time deposits     1,952,635       1,840,262       1,903,908       1,836,024       1,581,504  
    Total deposits     5,264,191       5,276,967       5,355,169       5,350,777       5,234,365  
                       
    Short-term borrowings     91,450       89,720       94,374       88,990       103,110  
    Operating lease liabilities     41,469       42,026       43,438       44,471       45,418  
    Accrued expenses and other liabilities     43,549       42,763       37,399       38,668       47,479  
                       
    Total liabilities     5,440,659       5,451,476       5,530,380       5,522,906       5,430,372  
                       
    SHAREHOLDERS’ EQUITY:                  
    Capital stock     20,058       20,058       20,058       20,058       20,058  
    Surplus     257,644       257,490       257,335       257,181       257,078  
    Undivided profits     442,079       436,048       430,346       425,069       422,082  
    Accumulated other comprehensive loss, net of tax     (6,600 )     (14,268 )     (14,763 )     (13,237 )     (31,506 )
    Treasury stock at cost     (44,160 )     (44,160 )     (43,786 )     (43,786 )     (43,786 )
                       
    Total shareholders’ equity     669,021       655,168       649,190       645,285       623,926  
                         
    Total liabilities and shareholders’ equity   $ 6,109,680     $ 6,106,644     $ 6,179,570     $ 6,168,191     $ 6,054,298  
                         
    Outstanding shares (in thousands)     19,010       19,010       19,024       19,024       19,024  
                         
     
    NONPERFORMING ASSETS
                 
    (dollars in thousands)
    (Unaudited)
        9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023
    Nonperforming Assets            
                 
    New York and other states*            
    Loans in nonaccrual status:            
    Commercial   $ 466   $ 741   $ 532   $ 536   $ 540  
    Real estate mortgage – 1 to 4 family     15,320     14,992     14,359     14,375     14,633  
    Installment     163     131     149     151     93  
    Total non-accrual loans     15,949     15,864     15,040     15,062     15,266  
    Other nonperforming real estate mortgages – 1 to 4 family     –     –     –     3     5  
    Total nonperforming loans     15,949     15,864     15,040     15,065     15,271  
    Other real estate owned     2,503     2,334     2,334     194     1,185  
    Total nonperforming assets   $ 18,452   $ 18,198   $ 17,374   $ 15,259   $ 16,456  
                 
    Florida            
    Loans in nonaccrual status:            
    Commercial   $ 314   $ 314   $ 314   $ 314   $ 314  
    Real estate mortgage – 1 to 4 family     3,176     2,985     2,921     2,272     2,228  
    Installment     5     22     –     15     65  
    Total non-accrual loans     3,495     3,321     3,235     2,601     2,607  
    Other nonperforming real estate mortgages – 1 to 4 family     –     –     –     –     –  
    Total nonperforming loans     3,495     3,321     3,235     2,601     2,607  
    Other real estate owned     –     –     –     –     –  
    Total nonperforming assets   $ 3,495   $ 3,321   $ 3,235   $ 2,601   $ 2,607  
                 
    Total            
    Loans in nonaccrual status:            
    Commercial   $ 780   $ 1,055   $ 846   $ 850   $ 854  
    Real estate mortgage – 1 to 4 family     18,496     17,977     17,280     16,647     16,861  
    Installment     168     153     149     166     158  
    Total non-accrual loans     19,444     19,185     18,275     17,663     17,873  
    Other nonperforming real estate mortgages – 1 to 4 family     –     –     –     3     5  
    Total nonperforming loans     19,444     19,185     18,275     17,666     17,878  
    Other real estate owned     2,503     2,334     2,334     194     1,185  
    Total nonperforming assets   $ 21,947   $ 21,519   $ 20,609   $ 17,860   $ 19,063  
                 
                 
    Quarterly Net (Recoveries) Chargeoffs            
                 
    New York and other states*            
    Commercial   $ 65   $ –   $ –   $ –   $ –  
    Real estate mortgage – 1 to 4 family     104     (74 )   (78 )   219     (26 )
    Installment     11     (2 )   36     23     14  
    Total net (recoveries) chargeoffs   $ 180   $ (76 ) $ (42 ) $ 242   $ (12 )
                 
    Florida            
    Commercial   $ –   $ –   $ –   $ –   $ –  
    Real estate mortgage – 1 to 4 family     –     17     –     –     –  
    Installment     42     7     –     6     –  
    Total net (recoveries) chargeoffs   $ 42   $ 24   $ –   $ 6   $ –  
                 
    Total            
    Commercial   $ 65   $ –   $ –   $ –   $ –  
    Real estate mortgage – 1 to 4 family     104     (57 )   (78 )   219     (26 )
    Installment     53     5     36     29     14  
    Total net (recoveries) chargeoffs   $ 222   $ (52 ) $ (42 ) $ 248   $ (12 )
                 
                 
    Asset Quality Ratios            
                 
    Total nonperforming loans (1)   $ 19,444   $ 19,185   $ 18,275   $ 17,666   $ 17,878  
    Total nonperforming assets (1)     21,947     21,519     20,609     17,860     19,063  
    Total net (recoveries) chargeoffs (2)     222     (52 )   (42 )   248     (12 )
                 
    Allowance for credit losses on loans (1)     49,950     49,772     49,220     48,578     47,226  
                 
    Nonperforming loans to total loans     0.38 %   0.38 %   0.37 %   0.35 %   0.36 %
    Nonperforming assets to total assets     0.36 %   0.35 %   0.33 %   0.29 %   0.31 %
    Allowance for credit losses on loans to total loans     0.99 %   0.99 %   0.98 %   0.97 %   0.95 %
    Coverage ratio (1)     256.9 %   259.4 %   269.3 %   275.0 %   264.2 %
    Annualized net (recoveries) chargeoffs to average loans (2)     0.02 %   0.00 %   0.00 %   0.02 %   0.00 %
    Allowance for credit losses on loans to annualized net chargeoffs (2)   56.3x N/A N/A 49.0x N/A
     
    * Includes New York, New Jersey, Vermont and Massachusetts.
    (1) At period-end
    (2) For the three-month period ended
                 
     
    DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY –
    INTEREST RATES AND INTEREST DIFFERENTIAL
     
    (dollars in thousands)                        
    (Unaudited)   Three months ended     Three months ended  
        September 30, 2024     September 30, 2023  
        Average   Interest Average     Average   Interest Average  
        Balance     Rate     Balance     Rate  
    Assets                        
                             
    Securities available for sale:                        
    U. S. government sponsored enterprises   $ 95,073     $ 718 3.02 %   $ 119,406     $ 672 2.25 %
    Mortgage backed securities and collateralized mortgage                        
    obligations – residential     241,792       1,397 2.29       269,535       1,485 2.19  
    State and political subdivisions     26       – 6.75       34       – 6.74  
    Corporate bonds     55,041       361 2.63       80,331       473 2.36  
    Small Business Administration – guaranteed                        
    participation securities     16,663       90 2.15       19,801       107 2.15  
    Other     701       2 1.14       686       2 1.17  
                             
    Total securities available for sale     409,296       2,568 2.51       489,793       2,739 2.24  
                             
    Federal funds sold and other short-term Investments     465,922       6,174 5.27       494,597       6,688 5.37  
                             
    Held to maturity securities:                        
    Mortgage backed securities and collateralized mortgage                        
    obligations – residential     5,779       62 4.29       6,877       73 4.22  
                             
    Total held to maturity securities     5,779       62 4.29       6,877       73 4.22  
                             
    Federal Home Loan Bank stock     6,507       153 9.41       6,203       131 8.45  
                             
    Commercial loans     279,199       3,807 5.45       261,061       3,398 5.21  
    Residential mortgage loans     4,375,641       41,811 3.82       4,325,219       39,321 3.64  
    Home equity lines of credit     380,422       6,245 6.53       320,446       4,946 6.12  
    Installment loans     14,443       249 6.87       15,959       256 6.37  
                             
    Loans, net of unearned income     5,049,705       52,112 4.12       4,922,685       47,921 3.89  
                             
    Total interest earning assets     5,937,209     $ 61,069 4.11       5,920,155     $ 57,552 3.88  
                             
    Allowance for credit losses on loans     (49,973 )             (47,077 )        
    Cash & non-interest earning assets     187,166               172,523          
                             
                             
    Total assets   $ 6,074,402             $ 6,045,601          
                             
                             
    Liabilities and shareholders’ equity                        
                             
    Deposits:                        
    Interest bearing checking accounts   $ 1,000,333     $ 311 0.12 %   $ 1,050,313     $ 102 0.04 %
    Money market accounts     499,408       2,154 1.72       625,031       2,384 1.51  
    Savings     1,122,673       770 0.27       1,282,641       639 0.20  
    Time deposits     1,880,021       18,969 4.01       1,494,402       11,962 3.18  
                             
    Total interest bearing deposits     4,502,435       22,204 1.96       4,452,387       15,087 1.34  
    Short-term borrowings     87,677       194 0.88       110,018       244 0.88  
                             
    Total interest bearing liabilities     4,590,112     $ 22,398 1.94       4,562,405     $ 15,331 1.33  
                             
    Demand deposits     742,164               776,885          
    Other liabilities     80,502               81,411          
    Shareholders’ equity     661,624               624,900          
                             
    Total liabilities and shareholders’ equity   $ 6,074,402             $ 6,045,601          
                             
    Net interest income, GAAP and non-GAAP tax equivalent (1)       $ 38,671           $ 42,221    
                             
    Net interest spread, GAAP and non-GAAP tax equivalent (1)         2.17 %         2.55 %
                             
                             
    Net interest margin (net interest income to                        
    total interest earning assets), GAAP and non-GAAP tax equivalent (1)       2.61 %         2.85 %
                             
    Tax equivalent adjustment (1)         –             –    
                             
                             
    Net interest income       $ 38,671           $ 42,221    
                             
    (1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure. See Non-GAAP Financial Measures Reconciliation.
                             
                             
                             
    DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY –
    INTEREST RATES AND INTEREST DIFFERENTIAL, Continued
                             
    (dollars in thousands)                        
    (Unaudited)   Nine Months Ended     Nine Months Ended  
        September 30, 2024     September 30, 2023  
        Average   Interest Average     Average   Interest Average  
        Balance     Rate     Balance     Rate  
    Assets                        
                             
    Securities available for sale:                        
    U. S. government sponsored enterprises $   111,570       2,533 3.03 % $   120,243       2,055 2.28 %
    Mortgage backed securities and collateralized mortgage                        
    obligations – residential     250,343       4,342 2.31       278,252       4,613 2.21  
    State and political subdivisions     26       1 6.80       34       1 6.74  
    Corporate bonds     61,221       1,199 2.61       83,732       1,510 2.41  
    Small Business Administration – guaranteed                        
    participation securities     17,438       284 2.17       20,876       335 2.14  
    Other     697       7 1.34       686       7 1.02  
                             
    Total securities available for sale     441,295       8,366 2.53       503,823       8,521 1.69  
                             
    Federal funds sold and other short-term Investments     489,934       19,818 5.40       540,570       20,213 5.00  
                             
    Held to maturity securities:                        
    Mortgage backed securities and collateralized mortgage                        
    obligations – residential     6,053       195 4.29       7,205       226 4.18  
                             
    Total held to maturity securities     6,053       195 4.29       7,205       226 4.18  
                             
    Federal Home Loan Bank stock     6,350       452 9.49       5,957       351 5.89  
                             
    Commercial loans     278,981       11,232 5.37       249,738       9,716 5.19  
    Residential mortgage loans     4,364,821       123,046 3.76       4,269,494       114,227 3.57  
    Home equity lines of credit     365,932       17,522 6.40       305,075       13,598 5.96  
    Installment loans     15,319       776 6.76       15,015       714 6.35  
                             
    Loans, net of unearned income     5,025,053       152,576 4.05       4,839,322       138,255 3.81  
                             
    Total interest earning assets     5,968,685       181,407 4.05       5,896,877       167,566 3.79  
                             
    Allowance for credit losses on loans     (49,419 )             (46,812 )        
    Cash & non-interest earning assets     187,963               173,521          
                             
                             
    Total assets $   6,107,229           $   6,023,586          
                             
                             
    Liabilities and shareholders’ equity                        
                             
    Deposits:                        
    Interest bearing checking accounts $   999,839       839 0.11 % $   1,088,859       217 0.03 %
    Money market accounts     522,636       6,724 1.72       613,119       4,954 1.08  
    Savings     1,142,313       2,157 0.25       1,363,052       1,824 0.18  
    Time deposits     1,881,027       58,046 4.12       1,343,762       26,525 2.64  
                             
    Total interest bearing deposits     4,545,815       67,766 1.99       4,408,792       33,520 1.02  
    Short-term borrowings     91,551       604 0.88       121,911       808 0.89  
                             
    Total interest bearing liabilities     4,637,366       68,370 1.97       4,530,703       34,328 1.01  
                             
    Demand deposits     734,604               793,890          
    Other liabilities     82,233               81,771          
    Shareholders’ equity     653,026               617,224          
                             
    Total liabilities and shareholders’ equity $   6,107,229           $   6,023,588          
                             
    Net interest income, GAAP and non-GAAP tax equivalent (1)         113,037             133,238    
                             
    Net interest spread, GAAP and non-GAAP tax equivalent (1)         2.08 %         2.78 %
                             
                             
    Net interest margin (net interest income to                        
    total interest earning assets), GAAP and non-GAAP tax equivalent (1)       2.52 %         3.01 %
                             
    Tax equivalent adjustment (1)         –             –    
                             
                             
    Net interest income         113,037             133,238    
                             
    (1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure. See Non-GAAP Financial Measures Reconciliation.
                             

    Non-GAAP Financial Measures Reconciliation

    Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

    Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

    Net interest income is commonly presented on a taxable equivalent basis. That is, to the extent that some component of the institution’s net interest income will be exempt from taxation (e.g., was received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added back to the net interest income total. Management considers this adjustment helpful to investors in comparing one financial institution’s net interest income (pre- tax) to that of another institution, as each will have a different proportion of tax-exempt items in their portfolios. Moreover, net interest income is itself a component of another financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest earning assets. Additionally, management and many financial institutions also present net interest spread, which is the average yield on interest earning assets minus the average rate paid on interest bearing liabilities. For purposes of these measures as well, taxable equivalent net interest income is generally used by financial institutions, again to provide investors with a better basis of comparison from institution to institution. We calculate taxable equivalent net interest margin by dividing net interest income, adjusted to include the benefit of non-taxable interest income, by average interest earning assets. We calculate taxable equivalent net interest spread as the difference between average yield on interest earning assets, adjusted to include the benefit of non-taxable interest income, and the average rate paid on interest bearing liabilities.

    The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, excluding net gains on equity securities. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

    We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below. We have not presented a reconciliation of taxable equivalent net interest income, taxable equivalent net interest margin or taxable equivalent net interest spread to the most directly comparable GAAP measure, as there was no difference between the taxable equivalent measure and comparable GAAP measure for any period presented in this release.

     
    NON-GAAP FINANCIAL MEASURES RECONCILIATION
                   
    (dollars in thousands)              
    (Unaudited)              
        9/30/2024 6/30/2024 9/30/2023      
    Tangible Book Value Per Share              
                   
    Equity (GAAP)   $ 669,021   $ 655,168   $ 623,926        
    Less: Intangible assets     553     553     553        
    Tangible equity (Non-GAAP)   $ 668,468   $ 654,615   $ 623,373        
                   
    Shares outstanding     19,010     19,010     19,024        
    Tangible book value per share     35.16     34.44     32.77        
    Book value per share     35.19     34.46     32.80        
                   
    Tangible Equity to Tangible Assets              
    Total Assets (GAAP)   $ 6,109,680   $ 6,106,644   $ 6,054,298        
    Less: Intangible assets     553     553     553        
    Tangible assets (Non-GAAP)   $ 6,109,127   $ 6,106,091   $ 6,053,745        
                   
    Tangible Equity to Tangible Assets (Non-GAAP)     10.94 %   10.72 %   10.30 %      
    Equity to Assets (GAAP)     10.95 %   10.73 %   10.31 %      
                   
        Three months ended   Nine Months Ended
    Efficiency Ratio   9/30/2024 6/30/2024 9/30/2023   9/30/2024 9/30/2023
                   
    Net interest income (GAAP)   $ 38,671   $ 37,788   $ 42,221     $ 113,037   $ 133,238  
    Taxable equivalent adjustment     –     –     –       –     –  
    Net interest income (fully taxable equivalent) (Non-GAAP)     38,671     37,788     42,221       113,037     133,238  
    Non-interest income (GAAP)     4,931     5,651     4,574       15,425     13,841  
    Less: Net gains on equity securities     23     1,360     –       1,383     –  
    Revenue used for efficiency ratio (Non-GAAP)   $ 43,579   $ 42,079   $ 46,795     $ 127,079   $ 147,079  
                   
    Total noninterest expense (GAAP)   $ 26,200   $ 26,459   $ 27,460     $ 77,562   $ 82,466  
    Less: Other real estate expense, net     204     16     163       294     536  
    Expense used for efficiency ratio (Non-GAAP)   $ 25,996   $ 26,443   $ 27,297     $ 77,268   $ 81,930  
                   
    Efficiency Ratio     59.65 %   62.84 %   58.33 %     60.80 %   55.70 %
                   
       
    Subsidiary: Trustco Bank
       
    Contact: Robert Leonard
    Executive Vice President
    (518) 381-3693

    The MIL Network –

  • MIL-OSI: RBB Bancorp Reports Third Quarter 2024 Earnings and Declares Quarterly Cash Dividend of $0.16 Per Common Share

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Oct. 21, 2024 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as “the Company,” announced financial results for the quarter ended September 30, 2024.

    Third Quarter 2024 Highlights

    • Net income totaled $7.0 million, or $ 0.39 diluted earnings per share
    • Return on average assets of 0.72%, compared to 0.76% for the quarter ended June 30, 2024
    • Net interest margin of 2.68% compared to 2.67% for the quarter ended June 30, 2024
    • Repurchased 508,275 shares of common stock for $11.0 million during the quarter ended September 30, 2024, and completed the authorized program
    • Book value and tangible book value per share(1) increased to $28.81 and $24.64 at September 30, 2024, up from $28.12 and $24.06 at June 30, 2024

    The Company reported net income of $7.0 million, or $ 0.39 diluted earnings per share, for the quarter ended September 30, 2024, compared to net income of $7.2 million, or $ 0.39 diluted earnings per share, for the quarter ended June 30, 2024. 

    “Loans increased at a 6% annualized rate in the third quarter as our work to expand lending and deposit relationships began to deliver results,” said David Morris, Chief Executive Officer of RBB Bancorp. “Net interest margin increased slightly, and we are optimistic that it will continue to expand from here.  We continue to work through our non-performing loans and believe we will be able to resolve the majority of them by mid-2025.”

    “The team has done an excellent job building on the Bank’s reputation as one of the premier Asian-centric financial institutions,” said Christina Kao, Chair of the Board of Directors. “Returning the Bank to growth has been a priority for the Board of Directors as we believe it will enhance long-term shareholder value.”

    (1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

    Net Interest Income and Net Interest Margin

    Net interest income was $24.5 million for the third quarter of 2024, compared to $24.0 million for the second quarter of 2024. The $580,000 increase was due to an increase in interest income of $1.5 million offset by an increase in interest expense of $959,000. The increase in interest income was due mostly to higher interest income on loans held for investment (“HFI”) of $2.0 million, partially offset by lower interest income on investment securities of $504,000. The increase in loan interest income was mostly due to higher average loans HFI of $54.4 million combined with a 9 basis point increase in the HFI loan yield. The decrease in investment income was attributed to lower average balances and a lower portfolio yield as proceeds from maturing short-term commercial paper were invested into loans and interest-earning cash. The increase in interest expense was due to higher average interest-bearing deposits of $42.3 million in the third quarter of 2024.

    Net interest margin (“NIM”) was 2.68% for the third quarter of 2024, an increase of 1 basis point from 2.67% for the second quarter of 2024. The increase was due to a 5 basis point increase in the yield on average interest-earning assets, partially offset by a 3 basis point increase in the overall cost of funds. The yield on average interest-earning assets increased to 5.94% for the third quarter of 2024 from 5.89% for the second quarter of 2024 due mainly to a 9 basis point increase in the yield on average loans HFI to 6.13% for the third quarter of 2024. The increase in the loan yield was largely attributed to nonaccrual loan activity in the current and prior quarter, including both the recapture of interest income for fully paid off nonaccrual loans and reversals of interest income for loans migrating to nonaccrual status. Such activity increased the third quarter loan yield by 1 basis point and decreased the second quarter loan yield by 7 basis points. Average loans represented 84% of average interest-earning assets in the third quarter of 2024, unchanged from the second quarter of 2024.

    The overall cost of funds increased to 3.57% in the third quarter of 2024 from 3.54% in the second quarter of 2024 due to a higher average cost of interest-bearing deposits in the third quarter of 2024 as compared to the second quarter of 2024. The overall funding mix remained relatively unchanged from the second quarter of 2024 as the ratio of average noninterest-bearing deposits to average total funding sources remained relatively unchanged at 16% for the third and second quarters of 2024. The all-in spot rate for total deposits was 3.53% at September 30, 2024.

    Provision for Credit Losses

    The Company recorded a provision for credit losses of $3.3 million for the third quarter of 2024 compared to $557,000 for the second quarter of 2024. The third quarter provision took into consideration factors including changes in the loan portfolio mix, higher specific reserves, the outlook for economic conditions and market interest rates, and credit quality metrics, including higher nonperforming, special mention and substandard loans at the end of the third quarter of 2024 as compared to the end of the second quarter of 2024.

    Noninterest Income

    Noninterest income for the third quarter of 2024 was $5.7 million, an increase of $2.3 million from $3.5 million for the second quarter of 2024. This increase was mostly due to a $2.8 million recovery of a fully charged off loan, which had been acquired in a bank acquisition (included in other income), partially offset by lower net gain on other real estate owned (“OREO”) of $292,000. 

    Noninterest Expense

    Noninterest expense for the third quarter of 2024 was $17.4 million, an increase of $297,000 from $17.1 million for the second quarter of 2024. This increase was due to higher salaries and employee benefits expense of $475,000 due in part to higher loan production and higher other expenses of $304,000 due to higher loan related expense. These increases were partially offset by lower insurance and regulatory assessments of $323,000 and lower legal and professional expenses of $302,000, the latter being due to reimbursed legal costs from nonaccrual loan payoffs. The annualized noninterest expenses to average assets ratio was 1.78% for the third quarter of 2024, down from 1.79% for the second quarter of 2024. The efficiency ratio was 57.51% for the third quarter of 2024, down from 62.38% for the second quarter of 2024 due mostly to higher noninterest income.

    Income Taxes

    The effective tax rate was 26.9% for the third quarter of 2024 and 25.9% for the second quarter of 2024. The effective tax rate for 2024 is estimated to range between 26.0% and 28.0%.

    Balance Sheet

    At September 30, 2024, total assets were $4.0 billion, a $122.3 million increase compared to June 30, 2024, and a $78.9 million decrease compared to September 30, 2023.

    Loan and Securities Portfolio

    Loans HFI totaled $3.1 billion as of September 30, 2024, an increase of $44.2 million compared to June 30, 2024 and a $29.1 million decrease compared to September 30, 2023. The increase from June 30, 2024 was primarily due to a $62.5 million increase in commercial real estate (“CRE”) loans, a $5.6 million increase in single-family residential (“SFR”) mortgages and a $2.2 million increase in commercial and industrial (“C&I”) loans, partially offset by a $22.3 million decrease in construction and land development (“C&D”) loans and a $2.2 million decrease in Small Business Administration (“SBA”) loans. The loan to deposit ratio was 98.6% at September 30, 2024, compared to 99.4% at June 30, 2024 and 97.6% at September 30, 2023. 

    As of September 30, 2024, available-for-sale securities totaled $305.7 million, a decrease of $19.9 million from June 30, 2024. As of September 30, 2024, net unrealized losses totaled $23.2 million, a $6.9 million decrease due to decreases in market interest rates, when compared to net unrealized losses as of June 30, 2024.

    Deposits

    Total deposits were $3.1 billion as of September 30, 2024, a $68.6 million increase compared to June 30, 2024 and a $61.9 million decrease compared to September 30, 2023. The increase during the third quarter of 2024 was due to an increase in interest-bearing deposits, while noninterest-bearing deposits remained relatively stable at $543.6 million as of September 30, 2024 compared to $543.0 million as of June 30, 2024. The increase in interest-bearing deposits included an increase in time deposits of $49.6 million and an increase in non-maturity deposits of $18.3 million. The increase in time deposits included a $26.6 million increase in wholesale deposits (brokered deposits, collateralized State of California certificates of deposit and deposits acquired through internet listing services). Wholesale deposits totaled $147.3 million at September 30, 2024, and $120.7 million at June 30, 2024. Noninterest-bearing deposits represented 17.6% of total deposits at September 30, 2024 compared to 18.0% at June 30, 2024.

    Credit Quality

    Nonperforming assets totaled $60.7 million, or 1.52% of total assets, at September 30, 2024, compared to $54.6 million, or 1.41% of total assets, at June 30, 2024. The $6.1 million increase in nonperforming assets was mostly due to two loans that migrated to nonaccrual totaling $13.3 million and consisted of a C&D loan and a CRE loan, offset by $6.1 million in payoffs with no losses and $1.2 million in partial charge-offs of nonaccrual loans.

    Special mention loans totaled $77.5 million, or 2.51% of total loans, at September 30, 2024, compared to $19.5 million, or 0.64% of total loans, at June 30, 2024. The $58.0 million increase was primarily due to one $43.6 million C&D loan for a completed hotel construction project, CRE loans totaling $25.2 million and C&I loans totaling $1.2 million. The increase was partially offset by one $11.7 million C&D loan, which migrated from special mention to substandard during the third quarter of 2024. All special mention loans, including the $11.7 million C&D loan which migrated to substandard rating, are all paying current.

    Substandard loans totaled $79.8 million, or 2.58% of total loans, at September 30, 2024, compared to $63.1 million, or 2.07% of total loans, at June 30, 2024. The $16.8 million increase was primarily due to downgrades of two C&D loans totaling $21.7 million and one $3.3 million CRE loan, offset by loan payoffs of $6.7 million and charge-offs of $1.2 million. Of the substandard loans at September 30, 2024, there are  $19.2 million which are paying current.

    30-89 day delinquent loans, excluding nonperforming loans, decreased $645,000 to $10.6 million as of September 30, 2024, compared to $11.3 million as of June 30, 2024. The decrease in past due loans was mostly due to 12 loans totaling $4.7 million that returned to current status and other decreases totaling $784,000, partially offset by new delinquent loans totaling $4.9 million, of which $4.1 million were 30 days past due.

    As of September 30, 2024, the allowance for credit losses totaled $44.5 million and was comprised of an allowance for loan losses of $43.7 million and a reserve for unfunded commitments of $779,000 (included in “Accrued interest and other liabilities”). This compares to the allowance for credit losses of $42.4 million comprised of an allowance for loan losses of $41.7 million and a reserve for unfunded commitments of $624,000 at June 30, 2024. The $2.1 million increase in the allowance for credit losses for the third quarter of 2024 was due to a $3.3 million provision for credit losses, including higher specific reserves of $2.5 million, offset by net charge-offs of $1.2 million. The increase in specific reserves and charge-offs in the third quarter of 2024 was primarily due to a decrease in the estimated fair value of collateral dependent loans, including estimated selling costs. Charge-offs in the third quarter of 2024 were related to one C&D loan and one CRE loan, which were written-down to their estimated fair value. The allowance for loan losses as a percentage of loans HFI was 1.41% at September 30, 2024, compared to 1.37% at June 30, 2024. The allowance for loan losses as a percentage of nonperforming loans was 72% at September 30, 2024, a decrease from 76% at June 30, 2024. The decrease in the allowance for loan losses as a percentage of nonperforming loans was due in part to an increase in individually evaluated loans, which required no allowance for loan losses.

        For the Three Months Ended
    September 30, 2024    		     For the Nine Months Ended
    September 30, 2024    		  
    (dollars in thousands)   Allowance for loan losses     Reserve for unfunded loan commitments     Allowance for credit losses     Allowance for loan losses     Reserve for unfunded loan commitments     Allowance for credit losses  
    Beginning balance   $ 41,741     $ 624     $ 42,365     $ 41,903     $ 640     $ 42,543  
    Provision for credit losses     3,145       155       3,300       3,718       139       3,857  
    Less loans charged-off     (1,210 )     —       (1,210 )     (1,991 )     —       (1,991 )
    Recoveries on loans charged-off     9       —       9       55       —       55  
    Ending balance   $ 43,685     $ 779     $ 44,464     $ 43,685     $ 779     $ 44,464  


    Shareholders’ Equity

    At September 30, 2024, total shareholders’ equity was $509.7 million, a $1.6 million decrease compared to June 30, 2024, and a $7.2 million increase compared to September 30, 2023. The decrease in shareholders’ equity for the third quarter of 2024 was due to common stock repurchases of $11.0 million and common stock cash dividends paid of $2.9 million, offset by net income of $7.0 million, lower net unrealized loss on available-for-sale securities of $4.8 million and equity compensation activity of $528,000. Book value per share and tangible book value per share(1) increased to $28.81 and $24.64 at September 30, 2024, up from $28.12 and $24.06 at June 30, 2024.

    On February 29, 2024, the Board of Directors authorized the repurchase of up to 1,000,000 shares of common stock. The repurchase program permitted shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Securities and Exchange Commission (“SEC”) Rules 10b5-1 and 10b-8. The Company repurchased 508,275 shares at a weighted average share price of $21.53 during the third quarter of 2024 and completed the authorized program.

    Dividend Announcement

    The Board of Directors has declared a common stock cash dividend of $0.16 per common share, payable on November 12, 2024 to shareholders of record on October 31, 2024.

      Contact:
    Lynn Hopkins, Chief Financial Officer
      (213) 716-8066
      lhopkins@rbbusa.com

    (1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.


    Corporate Overview

    RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of September 30, 2024, the Company had total assets of $4.0 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

    Conference Call

    Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, October 22, 2024, to discuss the Company’s third quarter 2024 financial results.

    To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 392446, conference ID RBBQ324. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 51366, approximately one hour after the conclusion of the call and will remain available through November 5, 2024.

    The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at http://www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

    Disclosure

    This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

    Safe Harbor

    Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; our ability to attract and retain deposits and access other sources of liquidity; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants;  fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system; the impact of future or recent changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters, including Accounting Standards Update 2016-13 (Topic 326, “Measurement of Current Losses on Financial Instruments, commonly referenced as the Current Expected Credit Losses Model, which changed how we estimate credit losses and may further increase the required level of our allowance for credit losses in future periods; market disruption and volatility; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuances of preferred stock; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2023, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)

    		  
        September 30,     June 30,     March 31,     December 31,     September 30,  
        2024     2024     2024     2023     2023  
    Assets                                        
    Cash and due from banks   $ 26,388     $ 23,313     $ 21,887     $ 22,671     $ 23,809  
    Interest-earning deposits with financial institutions     323,002       229,456       247,356       408,702       306,982  
    Cash and Cash Equivalents     349,390       252,769       269,243       431,373       330,791  
    Interest-earning time deposits with financial institutions     600       600       600       600       600  
    Investment securities available for sale     305,666       325,582       335,194       318,961       354,378  
    Investment securities held to maturity     5,195       5,200       5,204       5,209       5,214  
    Mortgage loans held for sale     812       3,146       3,903       1,911       62  
    Loans held for investment     3,091,896       3,047,712       3,027,361       3,031,861       3,120,952  
    Allowance for loan losses     (43,685 )     (41,741 )     (41,688 )     (41,903 )     (42,430 )
    Net loans held for investment     3,048,211       3,005,971       2,985,673       2,989,958       3,078,522  
    Premises and equipment, net     24,839       25,049       25,363       25,684       26,134  
    Federal Home Loan Bank (FHLB) stock     15,000       15,000       15,000       15,000       15,000  
    Cash surrender value of bank owned life insurance     59,889       59,486       59,101       58,719       58,346  
    Goodwill     71,498       71,498       71,498       71,498       71,498  
    Servicing assets     7,256       7,545       7,794       8,110       8,439  
    Core deposit intangibles     2,194       2,394       2,594       2,795       3,010  
    Right-of-use assets     29,283       30,530       31,231       29,803       29,949  
    Accrued interest and other assets     70,644       63,416       65,608       66,404       87,411  
    Total assets   $ 3,990,477     $ 3,868,186     $ 3,878,006     $ 4,026,025     $ 4,069,354  
    Liabilities and shareholders’ equity                                        
    Deposits:                                        
    Noninterest-bearing demand   $ 543,623     $ 542,971     $ 539,517     $ 539,621     $ 572,393  
    Savings, NOW and money market accounts     666,089       647,770       642,840       632,729       608,020  
    Time deposits, $250,000 and under     1,052,462       1,014,189       1,083,898       1,190,821       1,237,831  
    Time deposits, greater than $250,000     830,010       818,675       762,074       811,589       735,828  
    Total deposits     3,092,184       3,023,605       3,028,329       3,174,760       3,154,072  
    FHLB advances     200,000       150,000       150,000       150,000       150,000  
    Long-term debt, net of issuance costs     119,433       119,338       119,243       119,147       174,019  
    Subordinated debentures     15,102       15,047       14,993       14,938       14,884  
    Lease liabilities – operating leases     30,880       32,087       32,690       31,191       31,265  
    Accrued interest and other liabilities     23,150       16,818       18,765       24,729       42,603  
    Total liabilities     3,480,749       3,356,895       3,364,020       3,514,765       3,566,843  
    Shareholders’ equity:                                        
    Common Stock     259,280       266,160       271,645       271,925       277,462  
    Additional paid-in capital     3,520       3,456       3,348       3,623       3,579  
    Retained Earnings     262,946       262,518       259,903       255,152       247,159  
    Non-controlling interest     72       72       72       72       72  
    Accumulated other comprehensive loss, net     (16,090 )     (20,915 )     (20,982 )     (19,512 )     (25,761 )
    Total shareholders’ equity     509,728       511,291       513,986       511,260       502,511  
    Total liabilities and shareholders’ equity   $ 3,990,477     $ 3,868,186     $ 3,878,006     $ 4,026,025     $ 4,069,354  
    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
    (In thousands, except share and per share data) 

    		  
        For the Three Months Ended     For the Nine Months Ended  
        September 30,
    2024    		     June 30,
    2024    		     September 30,
    2023    		     September 30,
    2024    		     September 30,
    2023    		  
    Interest and dividend income:                                        
    Interest and fees on loans   $ 47,326     $ 45,320     $ 47,617     $ 138,193     $ 148,369  
    Interest on interest-earning deposits     3,388       3,353       3,193       11,781       6,096  
    Interest on investment securities     3,127       3,631       4,211       10,369       10,321  
    Dividend income on FHLB stock     326       327       290       984       814  
    Interest on federal funds sold and other     258       255       252       779       716  
    Total interest and dividend income     54,425       52,886       55,563       162,106       166,316  
    Interest expense:                                        
    Interest on savings deposits, NOW and money market accounts     5,193       4,953       3,106       14,624       8,180  
    Interest on time deposits     22,553       21,850       21,849       67,725       54,424  
    Interest on long-term debt and subordinated debentures     1,681       1,679       2,579       5,039       7,668  
    Interest on other borrowed funds     453       439       440       1,331       2,428  
    Total interest expense     29,880       28,921       27,974       88,719       72,700  
    Net interest income before provision for credit losses     24,545       23,965       27,589       73,387       93,616  
    Provision for credit losses     3,300       557       1,399       3,857       3,793  
    Net interest income after provision for credit losses     21,245       23,408       26,190       69,530       89,823  
    Noninterest income:                                        
    Service charges and fees     1,071       1,064       1,057       3,127       3,200  
    Gain on sale of loans     447       451       212       1,210       258  
    Loan servicing fees, net of amortization     605       579       623       1,773       1,959  
    Increase in cash surrender value of life insurance     402       385       356       1,169       1,036  
    Gain on OREO     —       292       190       1,016       190  
    Other income     3,221       717       332       4,311       982  
    Total noninterest income     5,746       3,488       2,770       12,606       7,625  
    Noninterest expense:                                        
    Salaries and employee benefits     10,008       9,533       9,744       29,468       28,935  
    Occupancy and equipment expenses     2,518       2,439       2,414       7,400       7,242  
    Data processing     1,472       1,466       1,315       4,358       3,969  
    Legal and professional     958       1,260       1,022       3,098       6,907  
    Office expenses     348       352       437       1,056       1,163  
    Marketing and business promotion     252       189       340       613       892  
    Insurance and regulatory assessments     658       981       730       2,621       2,043  
    Core deposit premium     200       201       236       602       708  
    Other expenses     1,007       703       638       2,298       2,445  
    Total noninterest expense     17,421       17,124       16,876       51,514       54,304  
    Income before income taxes     9,570       9,772       12,084       30,622       43,144  
    Income tax expense     2,571       2,527       3,611       8,342       12,752  
    Net income   $ 6,999     $ 7,245     $ 8,473     $ 22,280     $ 30,392  
                                             
    Net income per share                                        
    Basic   $ 0.39     $ 0.39     $ 0.45     $ 1.22     $ 1.60  
    Diluted   $ 0.39     $ 0.39     $ 0.45     $ 1.22     $ 1.60  
    Cash Dividends declared per common share   $ 0.16     $ 0.16     $ 0.16     $ 0.48     $ 0.48  
    Weighted-average common shares outstanding                                        
    Basic     17,812,791       18,375,970       18,995,303       18,261,702       18,991,579  
    Diluted     17,885,359       18,406,897       18,997,304       18,313,086       19,013,838  
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)    		  
        For the Three Months Ended  
        September 30, 2024     June 30, 2024     September 30, 2023  
    (tax-equivalent basis, dollars in thousands)   Average
    Balance    		     Interest
     & Fees    		     Yield /
    Rate    		     Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		     Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		  
    Interest-earning assets                                                                        
    Cash and cash equivalents(1)   $ 260,205     $ 3,646       5.57 %   $ 255,973     $ 3,608       5.67 %   $ 270,484     $ 3,445       5.05 %
    FHLB Stock     15,000       326       8.65 %     15,000       327       8.77 %     15,000       290       7.67 %
    Securities                                                                        
    Available for sale(2)     298,948       3,105       4.13 %     318,240       3,608       4.56 %     369,459       4,187       4.50 %
    Held to maturity(2)     5,198       46       3.52 %     5,203       46       3.56 %     5,385       48       3.54 %
    Mortgage loans held for sale     1,165       23       7.85 %     3,032       57       7.56 %     739       13       6.98 %
    Loans held for investment:(3)                                                                        
    Real estate     2,888,528       43,495       5.99 %     2,828,339       41,590       5.91 %     2,968,246       43,583       5.83 %
    Commercial     179,885       3,808       8.42 %     185,679       3,673       7.96 %     187,140       4,021       8.52 %
    Total loans held for investment     3,068,413       47,303       6.13 %     3,014,018       45,263       6.04 %     3,155,386       47,604       5.99 %
    Total interest-earning assets     3,648,929     $ 54,449       5.94 %     3,611,466     $ 52,909       5.89 %     3,816,453     $ 55,587       5.78 %
    Total noninterest-earning assets     242,059                       240,016                       250,083                  
    Total average assets   $ 3,890,988                     $ 3,851,482                     $ 4,066,536                  
                                                                             
    Interest-bearing liabilities                                                                        
    NOW     55,757       277       1.98 %   $ 56,081     $ 276       1.98 %   $ 55,325     $ 201       1.44 %
    Money Market     439,936       4,093       3.70 %     431,559       3,877       3.61 %     403,300       2,656       2.61 %
    Saving deposits     164,515       823       1.99 %     164,913       800       1.95 %     123,709       249       0.80 %
    Time deposits, $250,000 and under     1,037,365       12,312       4.72 %     1,049,666       12,360       4.74 %     1,285,320       14,090       4.35 %
    Time deposits, greater than $250,000     819,207       10,241       4.97 %     772,255       9,490       4.94 %     717,026       7,759       4.29 %
    Total interest-bearing deposits     2,516,780       27,746       4.39 %     2,474,474       26,803       4.36 %     2,584,680       24,955       3.83 %
    FHLB advances     150,543       453       1.20 %     150,000       439       1.18 %     150,000       440       1.16 %
    Long-term debt     119,370       1,295       4.32 %     119,275       1,296       4.37 %     173,923       2,194       5.00 %
    Subordinated debentures     15,066       386       10.19 %     15,011       383       10.26 %     14,848       385       10.29 %
    Total interest-bearing liabilities     2,801,759       29,880       4.24 %     2,758,760       28,921       4.22 %     2,923,451       27,974       3.80 %
    Noninterest-bearing liabilities                                                                        
    Noninterest-bearing deposits     528,081                       529,450                       571,371                  
    Other noninterest-bearing liabilities     52,428                       51,087                       67,282                  
    Total noninterest-bearing liabilities     580,509                       580,537                       638,653                  
    Shareholders’ equity     508,720                       512,185                       504,432                  
    Total liabilities and shareholders’ equity   $ 3,890,988                     $ 3,851,482                     $ 4,066,536                  
    Net interest income / interest rate spreads           $ 24,569       1.70 %           $ 23,988       1.67 %           $ 27,613       1.98 %
    Net interest margin                     2.68 %                     2.67 %                     2.87 %
                                                                             
    Total cost of deposits   $ 3,044,861     $ 27,746       3.63 %   $ 3,003,924     $ 26,803       3.59 %   $ 3,156,051     $ 24,955       3.14 %
    Total cost of funds   $ 3,329,840     $ 29,880       3.57 %   $ 3,288,210     $ 28,921       3.54 %   $ 3,494,822     $ 27,974       3.18 %

    _________________
    (1) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3) Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.

    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)    		  
        For the Nine Months Ended  
        September 30, 2024     September 30, 2023  
    (tax-equivalent basis, dollars in thousands)   Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		     Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		  
    Interest-earning assets                                                
    Cash and cash equivalents(1)   $ 293,597     $ 12,560       5.71 %   $ 177,393     $ 6,812       5.13 %
    FHLB Stock     15,000       984       8.76 %     15,000       814       7.26 %
    Securities                                                
    Available for sale(2)     312,352       10,302       4.41 %     332,007       10,245       4.13 %
    Held to maturity(2)     5,203       140       3.59 %     5,610       151       3.60 %
    Mortgage loans held for sale     1,802       105       7.78 %     295       16       7.25 %
    Loans held for investment:(3)                                                
    Real estate     2,851,625       126,852       5.94 %     3,041,393       134,791       5.93 %
    Commercial     181,716       11,236       8.26 %     214,618       13,562       8.45 %
    Total loans held for investment     3,033,341       138,088       6.08 %     3,256,011       148,353       6.09 %
    Total interest-earning assets     3,661,295     $ 162,179       5.92 %     3,786,316     $ 166,391       5.88 %
    Total noninterest-earning assets     242,802                       244,822                  
    Total average assets   $ 3,904,097                     $ 4,031,138                  
                                                     
    Interest-bearing liabilities                                                
    NOW   $ 56,924       851       2.00 %   $ 59,476     $ 511       1.15 %
    Money Market     427,884       11,496       3.59 %     431,299       7,315       2.27 %
    Saving deposits     162,207       2,277       1.88 %     118,550       354       0.40 %
    Time deposits, $250,000 and under     1,087,501       38,476       4.73 %     1,141,290       33,905       3.97 %
    Time deposits, greater than $250,000     792,310       29,249       4.93 %     729,699       20,519       3.76 %
    Total interest-bearing deposits     2,526,826       82,349       4.35 %     2,480,314       62,604       3.37 %
    FHLB advances     150,182       1,331       1.18 %     179,707       2,428       1.81 %
    Long-term debt     119,276       3,886       4.35 %     173,780       6,584       5.07 %
    Subordinated debentures     15,012       1,153       10.26 %     14,794       1,084       9.80 %
    Total interest-bearing liabilities     2,811,296       88,719       4.22 %     2,848,595       72,700       3.41 %
    Noninterest-bearing liabilities                                                
    Noninterest-bearing deposits     528,624                       624,781                  
    Other noninterest-bearing liabilities     52,955                       58,786                  
    Total noninterest-bearing liabilities     581,579                       683,567                  
    Shareholders’ equity     511,222                       498,976                  
    Total liabilities and shareholders’ equity   $ 3,904,097                     $ 4,031,138                  
    Net interest income / interest rate spreads           $ 73,460       1.70 %           $ 93,691       2.47 %
    Net interest margin                     2.68 %                     3.31 %
                                                     
    Total cost of deposits   $ 3,055,450     $ 82,349       3.60 %   $ 3,105,095     $ 62,604       2.70 %
    Total cost of funds   $ 3,339,920     $ 88,719       3.55 %   $ 3,473,376     $ 72,700       2.80 %

    _______________
    (1) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3) Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.

    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    		  
      At or for the Three Months Ended     At or for the Nine Months
    Ended September 30,    		  
      September 30,   June 30,     September 30,                  
        2024     2024     2023     2024     2023  
    Per share data (common stock)                                  
    Book value $ 28.81     $ 28.12     $ 26.45     $ 28.81     $ 26.45  
    Tangible book value(1) $ 24.64     $ 24.06     $ 22.53     $ 24.64     $ 22.53  
    Performance ratios                                  
    Return on average assets, annualized   0.72 %     0.76 %     0.83 %     0.76 %     1.01 %
    Return on average shareholders’ equity, annualized   5.47 %     5.69 %     6.66 %     5.82 %     8.14 %
    Return on average tangible common equity, annualized(1)   6.40 %     6.65 %     7.82 %     6.81 %     9.58 %
    Noninterest income to average assets, annualized   0.59 %     0.36 %     0.27 %     0.43 %     0.25 %
    Noninterest expense to average assets, annualized   1.78 %     1.79 %     1.65 %     1.76 %     1.80 %
    Yield on average earning assets   5.94 %     5.89 %     5.78 %     5.92 %     5.88 %
    Yield on average loans   6.13 %     6.04 %     5.99 %     6.08 %     6.09 %
    Cost of average total deposits(2)   3.63 %     3.59 %     3.14 %     3.60 %     2.70 %
    Cost of average interest-bearing deposits   4.39 %     4.36 %     3.83 %     4.35 %     3.37 %
    Cost of average interest-bearing liabilities   4.24 %     4.22 %     3.80 %     4.22 %     3.41 %
    Net interest spread   1.70 %     1.67 %     1.98 %     1.70 %     2.47 %
    Net interest margin   2.68 %     2.67 %     2.87 %     2.68 %     3.31 %
    Efficiency ratio(3)   57.51 %     62.38 %     55.59 %     59.90 %     53.64 %
    Common stock dividend payout ratio   41.03 %     41.03 %     35.56 %     39.34 %     30.00 %

    ____________________

    (1) Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
    (2) Total deposits include non-interest bearing deposits and interest-bearing deposits.
    (3) Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.

    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)    		  
        At or for the quarter ended  
        September 30,     June 30,     September 30,  
        2024     2024     2023  
    Credit Quality Data:                        
    Special mention loans   $ 77,501     $ 19,520     $ 31,212  
    Special mention loans to total loans     2.51 %     0.64 %     1.00 %
    Substandard loans   $ 79,831     $ 63,076     $ 71,401  
    Substandard loans to total loans     2.58 %     2.07 %     2.29 %
    Loans 30-89 days past due, excluding nonperforming loans   $ 10,625     $ 11,270     $ 19,662  
    Loans 30-89 days past due, excluding nonperforming loans, to total loans     0.34 %     0.37 %     0.63 %
    Nonperforming loans   $ 60,662     $ 54,589     $ 40,146  
    OREO     —       —       284  
    Nonperforming assets   $ 60,662     $ 54,589     $ 40,430  
    Nonperforming loans to total loans     1.96 %     1.79 %     1.29 %
    Nonperforming assets to total assets     1.52 %     1.41 %     0.99 %
                             
    Allowance for loan losses   $ 43,685     $ 41,741     $ 42,430  
    Allowance for loan losses to total loans     1.41 %     1.37 %     1.36 %
    Allowance for loan losses to nonperforming loans     72.01 %     76.46 %     105.69 %
    Net charge-offs   $ 1,201     $ 551     $ 2,206  
    Net charge-offs to average loans     0.16 %     0.07 %     0.28 %
                             
    Capital ratios(1)                        
    Tangible common equity to tangible assets(2)     11.13 %     11.53 %     10.71 %
    Tier 1 leverage ratio     12.19 %     12.48 %     11.68 %
    Tier 1 common capital to risk-weighted assets     18.16 %     18.89 %     17.65 %
    Tier 1 capital to risk-weighted assets     18.74 %     19.50 %     18.22 %
    Total capital to risk-weighted assets     24.79 %     25.67 %     26.24 %

    ______________
    (1) September 30, 2024 capital ratios are preliminary.
    (2) Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.

    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)

    		  
    Loan Portfolio Detail   As of September 30, 2024   As of June 30, 2024     As of September 30, 2023  
    (dollars in thousands)   $   %   $       %   $       %
    Loans:                                          
    Commercial and industrial   $ 128,861   4.2 %   $ 126,649       4.2 %   $ 127,655       4.1 %
    SBA     48,089   1.6 %     50,323       1.7 %     50,420       1.6 %
    Construction and land development     180,196   5.8 %     202,459       6.6 %     259,778       8.3 %
    Commercial real estate (1)     1,252,682   40.5 %     1,190,207       39.1 %     1,164,210       37.3 %
    Single-family residential mortgages     1,473,396   47.7 %     1,467,802       48.2 %     1,505,307       48.2 %
    Other loans     8,672   0.2 %     10,272       0.2 %     13,582       0.5 %
    Total loans (2)   $ 3,091,896   100.0 %   $ 3,047,712       100.0 %   $ 3,120,952       100.0 %
    Allowance for loan losses     (43,685 )       (41,741 )             (42,430 )        
    Total loans, net   $ 3,048,211       $ 3,005,971             $ 3,078,522          

    _______________
    (1) Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
    (2) Net of discounts and deferred fees and costs of $467, $645, and $383 as of September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

    Deposits   As of September 30, 2024   As of June 30, 2024     As of September 30, 2023  
    (dollars in thousands)   $   %   $       %   $       %
    Deposits:                                          
    Noninterest-bearing demand   $ 543,623   17.6 %   $ 542,971       18.0 %   $ 572,393       18.1 %
    Savings, NOW and money market accounts     666,089   21.5 %     647,770       21.4 %     608,020       19.3 %
    Time deposits, $250,000 and under     926,877   30.0 %     921,712       30.5 %     848,868       26.9 %
    Time deposits, greater than $250,000     808,304   26.1 %     790,478       26.1 %     687,365       21.8 %
    Wholesale deposits(1)     147,291   4.8 %     120,674       4.0 %     437,426       13.9 %
    Total deposits   $ 3,092,184   100.0 %   $ 3,023,605       100.0 %   $ 3,154,072       100.0 %

    ___________________
    (1) Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

    Non-GAAP Reconciliations

    Tangible Book Value Reconciliations

    Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of September 30, 2024, June 30, 2024, and September 30, 2023.

                           
    (dollars in thousands, except share and per share data)   September 30,
    2024    		     June 30,
    2024    		     September 30,
    2023    		  
    Tangible common equity:                        
    Total shareholders’ equity   $ 509,728     $ 511,291     $ 502,511  
    Adjustments                        
    Goodwill     (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible     (2,194 )     (2,394 )     (3,010 )
    Tangible common equity   $ 436,036     $ 437,399     $ 428,003  
    Tangible assets:                        
    Total assets-GAAP   $ 3,990,477     $ 3,868,186     $ 4,069,354  
    Adjustments                        
    Goodwill     (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible     (2,194 )     (2,394 )     (3,010 )
    Tangible assets   $ 3,916,785     $ 3,794,294     $ 3,994,846  
    Common shares outstanding     17,693,416       18,182,154       18,995,303  
    Common equity to assets ratio     12.77 %     13.22 %     12.35 %
    Tangible common equity to tangible assets ratio     11.13 %     11.53 %     10.71 %
    Book value per share   $ 28.81     $ 28.12     $ 26.45  
    Tangible book value per share   $ 24.64     $ 24.06     $ 22.53  


    Return on Average Tangible Common Equity

    Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights), and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

        Three Months Ended     Nine Months Ended September 30,  
    (dollars in thousands)   September 30,
    2024    		     June 30,
    2024    		     September 30,
    2023    		     2024     2023  
    Net income available to common shareholders   $ 6,999     $ 7,245     $ 8,473     $ 22,280     $ 30,392  
    Average shareholders’ equity     508,720       512,185       504,432       511,222       498,976  
    Adjustments:                                        
    Average goodwill     (71,498 )     (71,498 )     (71,498 )     (71,498 )     (71,498 )
    Average core deposit intangible     (2,326 )     (2,525 )     (3,165 )     (2,525 )     (3,398 )
    Adjusted average tangible common equity   $ 434,896     $ 438,162     $ 429,769     $ 437,199     $ 424,080  
    Return on average common equity     5.47 %     5.69 %     6.66 %     5.82 %     8.14 %
    Return on average tangible common equity     6.40 %     6.65 %     7.82 %     6.81 %     9.58 %

    The MIL Network –

  • MIL-OSI USA: Deputy Administrator Isobel Coleman on Building Nutritional Resilience in Food Security

    Source: USAID

    DEPUTY ADMINISTRATOR ISOBEL COLEMAN: Thank you, Ambassador [Jeff] Prescott for hosting me and this discussion here today. 

    It’s a great opportunity to renew our commitment to prioritizing nutrition ahead of the next Nutrition for Growth Summit in Paris next year. 

    Over just the past five years, we’ve faced a number of disruptions to global food security: A global pandemic, increasing climate-related disasters, and global food crises exacerbated by Russia’s unprovoked war on Ukraine. 

    Currently, there are 56 active conflicts in the world, the highest number since World War II. Because of this, as we all know, even though humanitarian needs are rising, there are still not nearly enough resources available to meet global needs.

    Worldwide, most recent estimates indicate that well over 700 million people are undernourished, lacking adequate food to live healthy, active lives. 

    It is estimated that a staggering 45 million children under the age of five are experiencing acute malnutrition at any given time, and every year, up to two million of these children die as a result. 

    Malnutrition devastates every aspect of a child’s body. Those who survive experience lasting consequences, robbing them of the ability to live, think, create, and thrive because of lack of access to basic, life-sustaining nutrition. 

    The United States remains committed to addressing malnutrition in all its forms. 

    With the scale of child wasting today, we need to make sure that as many children as possible can be reached.

    So, we all know we need to get even smarter and more strategic about the way we do this work. 

    Fortunately, one year ago WHO released new guidelines for child wasting prevention and management which have helped us do just that, providing a helpful framework to update our efforts to combat malnutrition and making us more effective in our work. 

    For example, the guidelines emphasize the importance of strengthening coordination between WFP and UNICEF for more effective prevention and treatment of moderately wasted children and severely wasted children.

    In addition, the guidelines highlight the necessity of prevention programming in addition to treatment – to prevent children from becoming wasted in the first place. 

    This is not only the most humane approach, but the most strategic and the most cost-effective. 

    Without appropriate prevention, we know the billions spent today on treatment will continue in perpetuity.

    And recognizing the critical role that community healthcare workers already play in meeting local needs, the guidelines empower community health workers with proper training to treat wasting and malnutrition at home – resulting in fewer trips to clinics, and fewer expensive, in-patient stays at government facilities. 

    The new guidelines also enable us to be more nimble, allowing severely malnourished children who are quickly improving to gradually consume less Ready-to-Use Therapeutic Food as they recover, which nutritionists agree is beneficial to a child’s long-term health.

    This allows us to channel this powerful resource to the children who need it the most.

    USAID has been focused on implementing the guidelines’ recommendations in order to reach more children – and we’ve been working hand-in-hand with WFP and UNICEF to develop and implement a joint strategy for phasing in these guidelines in priority humanitarian contexts. 

    Just last month, USAID provided $100 million to each partner to support those efforts. 

    The WHO guidelines brought attention to the growing evidence base of nutrition research and helped to identify where we have gaps in evidence still to be filled. 

    Last week, I announced USAID’s first policy paper on Cost-Effectiveness because we have learned from the global body of impact evaluation evidence that there are some programs that deliver extraordinary returns. 

    I committed the agency to infusing rigorous evidence more broadly and deeply across all our programming to maximize our “impact per dollar.” 

    Today, I am pleased to announce that USAID will host an evidence summit on wasting research in December of this year, which will bring together researchers to discuss the latest findings from nutrition experts and to identify gaps in evidence in order to shape future research. 

    Following the evidence sometimes requires shifting some of our investments in activities that are demonstrably “good”, because the evidence shows we could make greater progress toward the same objectives through other approaches.

    It’s hard to stop a program that is doing some good, but that’s exactly what we need to do when we know we could achieve even more by working in a different way. 

    This kind of evidence-driven collaboration is an important step toward determining and implementing the most cost-effective malnutrition programming – which we at USAID view as a paramount priority and a moral obligation as we seek to create the greatest impact possible with each dollar we spend. 

    In closing, I want to thank Special Envoy [Brieuc] Pont for his steadfast leadership in preparing for the next Nutrition for Growth Summit in France next year. The U.S. government is a proud member of the Troika, which brings together hosts of Nutrition for Growth past, present, and future together with the Governments of Japan and France. 

    In 2021, USAID was proud to put forward a commitment focused on prevention and treatment of childhood wasting. 

    Going into 2025, we strongly believe this will be a critical opportunity for the entire global nutrition community to recommit to both evidence and action.

    MIL OSI USA News –

  • MIL-OSI USA: Shaheen, Ricketts, Tillis, Durbin Congratulate Moldova on a Successful Referendum Election

    US Senate News:

    Source: United States Senator for New Hampshire Jeanne Shaheen
    (Washington, DC) – U.S. Senators Jeanne Shaheen (D-NH) and Pete Ricketts (R-NE), Chair and Ranking Member of the U.S. Senate Subcommittee on Europe and Regional Security Cooperation, along with U.S. Senators Thom Tillis (R-NC) and Dick Durbin (D-IL), Co-Chair of the U.S. Senate Ukraine Caucus, issued the following joint statement in response to reports of a successful referendum in Moldova, which constitutionally affirms its EU membership aspirations: 
    “Following reports of a successful referendum election, we applaud the people of Moldova for enshrining into their constitution a commitment to a more democratic, European future—a rebuke of Moscow’s attempt at malign influence in the country.  
    “As the people of Moldova reaffirm their goal of European Union membership, we are clear-eyed that achieving it will be no small feat. In its thirty-three years of independence, Moldova has repeatedly contended with Russian attempts to retain influence, whether through Moscow’s military presence in Transnistria, inside Moldova’s internationally recognized borders, or through rampant mis- and disinformation campaigns. Moldova has also grappled with significant ripple effects from Russia’s full-scale invasion of its neighbor, Ukraine, including disruptions in its energy supply, significant inflation and an unprecedented influx of refugees – to which the Moldovan people responded with generosity.  
    “We also welcome the initial results from the presidential contest and an encouraging preliminary statement from the OSCE’s observation mission which described the elections as ‘well-managed’. We hope that the upcoming run-off elections, to be held on November 3, will also be conducted in the same manner and look forward to working with Moldova’s government as it continues strive toward Western integration.” 
    Earlier this year, Shaheen led a Congressional delegation to Moldova with U.S. Senator Chris Murphy (D-CT). Shaheen and Murphy hosted a roundtable with civil society groups and free media organizations to discuss the threat that disinformation poses to its democracy and the nation’s efforts to combat Russian campaigns that have threatened to undermine Moldovan elections. The delegation also met with Moldova’s Prime Minister Dorin Recean and President Maia Sandu. Durbin met with Moldovan President Maia Sandu in Chicago last year. 

    MIL OSI USA News –

  • MIL-OSI USA: ICYMI: U.S. News highlights Senator Coons’ efforts to support returned American hostages and wrongful detainees

    US Senate News:

    Source: United States Senator for Delaware Christopher Coons

    WASHINGTON – In case you missed it, U.S. News & World Report’s Olivier Knox devoted his “Decision Points” column to U.S. Senator Chris Coons’ (D-Del.) package of legislation to make American hostages and wrongful detainees financially whole after their return home. The column focused primarily on his Stop Tax Penalties on American Hostages Act, which would end the IRS’ practice of charging fines and late fees for non-payment of taxes on hostages and wrongful detainees while they are unjustly held abroad.

    As Knox lays out, Senator Coons was inspired to take action after speaking with Jason Rezaian, a Washington Post reporter who was wrongfully detained for 544 days in Iran’s Evin Prison. When Rezaian returned to the United States, he faced financial stressors – a tanked credit score and a $21,000 IRS bill – because the government’s current system lacks provisions for those held hostage overseas.

    In response, Senator Coons introduced his bipartisan Stop Tax Penalties on American Hostages Act with Senator Mike Rounds (R-S.D.), which would stop the IRS from charging fines and late fees to hostages and wrongful detainees for failing to pay their federal taxes while being held unjustly abroad. Additionally, Senator Coons has also introduced the Fair Credit for American Hostages Act with Senator Thom Tillis (R-N.C.), which would empower former hostages and detainees to restore credit scores that may have been negatively impacted during their detention. His Retirement Security for American Hostages Act with Senator Bill Cassidy, M.D. (R-La.) would ensure that hostages and wrongful detainees aren’t penalized in the calculation of their Social Security benefits. 

    Last month, Senator Coons also published an op-ed in The Wall Street Journal highlighting his work on these bills and his advocacy for American hostages and wrongful detainees.

    U.S. News: A Different Kind of Crisis for Released American Hostages

    Enter Sen. Chris Coons, a Delaware Democrat who holds the seat filled for decades by President Joe Biden, and a member of the Senate Foreign Relations Committee. Coons, who says he’s been interested in the plight of Americans detained overseas since he was a Capitol Hill intern decades ago and met the parent of a young U.S. citizen imprisoned abroad, has introduced a suite of legislation aimed at helping wrongful detainees.

    …

    “I started with a simple proposition that if you’re released after wrongful detention, you shouldn’t have to pay late fines and fees to the IRS,” Coons says.

    The senator credits Rezaian with the idea for the tax bill and Paul Whelan – the 54-year-old former U.S. Marine arrested in Russia in December 2018 and held until he was freed in a prisoner swap in August – with the Social Security idea. In addition to Whelan, Coons has met with Vladimir Kara-Murza and Evan Gershkovich, who were also freed in that exchange, and with other Americans unjustly held abroad.

    …

    “There’s some disagreement between the House and Senate about passing a clean bill,” Coons says. “I really hope we’ll just pass the clean bill on both sides and send it to the President’s desk.”

    MIL OSI USA News –

  • MIL-OSI United Kingdom: UK strengthens national security and bolsters Ukraine’s war chest with £2.26 billion military loan

    Source: United Kingdom – Executive Government & Departments

    Ukraine will receive further funding to purchase essential military equipment to defend itself against Russia’s illegal invasion, as the Chancellor today announces that the Government will loan a further £2.26 billion in new money to Ukraine.

    • UK announces £2.26 billion loan to Ukraine backed by profits from sanctioned Russian sovereign assets
    • Forms Britain’s contribution to the $50 billion loan announced at the G7 Leaders’ Summit in June
    • New money for Ukraine will bolster equipment on the frontline

    The new £2.26 billion is the UK’s contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme, in which $50 billion from G7 countries will be delivered to Ukraine for its military, budget and reconstruction needs. The loan will be repaid using the extraordinary profits on immobilised Russian sovereign assets.

    The Chancellor Rachel Reeves made the announcement alongside Defence Secretary John Healey while visiting Ukrainian personnel who are being trained in the UK. More than 45,000 personnel have been trained in the UK under Operation INTERFLEX and the scheme has been extended to at least the end of 2025.

    The UK’s £2.26 billion loan is earmarked as budgetary support for Ukraine’s military spending, enabling the Ukrainians to invest in key equipment to support their efforts against Russia, such as air defence, artillery and wider equipment support. It comes on top of the UK’s existing £3 billion a year military aid for Ukraine, which the Prime Minister re-committed to within his first week in office.

    The UK has sent around 400 different capabilities to Ukraine, with Defence Secretary John Healey MP recently announcing that the UK will supply 650 Lightweight Multirole Missile systems to Ukraine to boost the country’s air defences.

    Chancellor of the Exchequer Rachel Reeves, said:

    Our support for Ukraine and her men and women in their fight for freedom from Putin’s aggression is unwavering and will remain so for as long as it takes.

    This new money is in Britain’s national interest because the frontline of our defence – the defence of our democracy and shared values – is in the Ukrainian trenches. A safe and secure Ukraine is a safe and secure United Kingdom.

    The $50 billion G7 ERA scheme was first announced at the G7 Leaders’ Summit in Apulia, Italy, in June this year. Russia’s obligation under international law to pay for the damage it has caused to Ukraine is clear and this G7 agreement is an important step to ensuring this happens. Today the UK has announced its contribution to the scheme and will introduce domestic legislation in the coming weeks to enable the transfer of the new funds to Ukraine as quickly as possible.

    The loan is on top of the £12.8 billion already committed in military, economic and humanitarian support to Ukraine.

    The funding comes alongside the UK and international partners introducing the largest and most severe package of sanctions ever imposed on a major economy. Without this, Russia would have over $400 billion more for its war machine – enough to fund its illegal invasion for a further four years. The war is having an economic and human cost for Russia; it is soaking up 40% of Russia’s annual budget and last month the country suffered its highest rate of daily casualties since the war began.

    The loan announcement comes ahead of the Chancellor’s attendance of the International Monetary Fund Annual Meetings in Washington D.C. later this week, at which she will underline on the international stage that the UK and its partners stand united and will not let aggressors like Putin succeed. Earlier this month Prime Minister Keir Starmer hosted Ukrainian President Volodymyr Zelenskyy in Downing Street to discuss his victory plan for Ukraine.

    Defence Secretary John Healey, said:

    By using the money generated from these sanctioned Russian assets, we can help turn the tables on Putin’s war machine. This urgent funding will directly support Ukraine’s defence using the proceeds from assets that had helped fuel Putin’s aggression.

    The UK is stepping up our support to Ukraine, speeding up supplies of vital equipment and boosting our defence industries. We will stand with Ukraine for as long as it takes.

    Updates to this page

    Published 22 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: ROK-UK Joint Statement on DPRK-Russia Cooperation

    Source: United Kingdom – Executive Government & Departments

    Joint statement between the Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom David Lammy and Minister of Foreign Affairs of the Republic of Korea Cho Tae-yul.

    We condemn in the strongest terms the Democratic People’s Republic of Korea (DPRK)’s continued unlawful arms transfers and the reported deployment of its troops to the Russian Federation to support Russia’s unlawful war of aggression in Ukraine. Such cooperation between Russia and the DPRK is not only in violation of multiple UNSC resolutions, but also prolongs the suffering of the Ukrainian people and threatens global security, including those in the ROK and the UK, and demonstrates the desperation of the DPRK and Russia. We are committed to providing the support Ukraine requires to secure a just and lasting peace.

    We are closely monitoring what Russia provides to the DPRK in return for its provision of arms and military personnel, including Russia’s possible provision of materials and technology to the DPRK in support of Pyongyang’s military objectives. We are also deeply concerned about the possibility for any transfer of nuclear or ballistic missile-related technology to the DPRK, which would jeopardize the international non-proliferation efforts and threaten peace and stability on the Korean Peninsula and across the globe. We take note that the security of the Indo-Pacific and Euro-Atlantic are more closely intertwined than ever, and commit ourselves to closely monitoring the situation and actively pursuing necessary measures together with the international community to deter further unlawful, reckless and destabilising behaviour.

    Updates to this page

    Published 22 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI China: Ukrainian president, US defense secretary meet on defense issues

    Source: China State Council Information Office

    Ukrainian President Volodymyr Zelensky and visiting U.S. Secretary of Defense Lloyd Austin discussed defense issues during their meeting on Monday, according to the presidential press service.

    The talks touched upon Ukraine’s request to use long-range weapons to attack military targets inside Russia.

    Zelensky and Austin also addressed increasing the production of attack drones, cruise missiles, artillery shells and air defense equipment.

    Austin announced a new U.S. military assistance package for Ukraine worth 400 million U.S. dollars, which includes ammunition, military equipment and weapons.

    Since February 2022, the United States has provided 64.1 billion dollars in military aid to Ukraine, according to the fact sheet release by the U.S. Department of State in October this year.

    MIL OSI China News –

  • MIL-OSI China: Putin, Serbia’s Vucic affirm strong ties in first call in 2 yrs

    Source: China State Council Information Office

    Serbian President Aleksandar Vucic revealed on Sunday that he had a friendly and personal conversation with Russian President Vladimir Putin, marking their first phone call in over two and a half years.

    In a statement shared on social media, Vucic reiterated Serbia’s stance on maintaining independence in its foreign policy, including its decision not to impose sanctions on Russia. “Some will criticize me for this, but Serbia is a sovereign and independent country that makes its own decisions,” Vucic said.

    Describing the ten-minute call as cordial, Vucic said they spoke as “long-time acquaintances and friends,” with Putin adding a personal touch that he appreciated. According to Vucic, Putin reiterated his stance, saying twice during the conversation: “What is good for Serbia is good for Russia, and what is good for the Serbian people is good for the Russian people.”

    Vucic acknowledged Serbia’s difficult geopolitical position, citing international pressure to align with broader European sanctions. However, he emphasized that Serbia has maintained its independence in decision-making.

    The phone call coincided with the commemoration of the 80th anniversary of Belgrade’s liberation in World War II. The central event, held on Sunday, included the national anthems of Serbia and Russia and was attended by Pyotr Tolstoy, deputy chairman of the State Duma of the Russian Federation. 

    MIL OSI China News –

  • MIL-Evening Report: What’s at stake in elections in Georgia and Moldova this week: a stark choice between Russia and the West

    Source: The Conversation (Au and NZ) – By Adam Simpson, Senior Lecturer, International Studies, University of South Australia

    Two former Soviet republics have important elections this week that will likely be pivotal in their respective journeys toward tighter integration with the West against the backdrop of rising Russian influence and the Ukraine war.

    What happens in Georgia and Moldova is being closely watched across the European Union and Moscow. Russia has invested heavily in trying to influence the outcomes of both elections. If it succeeds, this will be a cause of significant concern in other ex-Soviet states, as well as the West.

    Moldova takes a tentative step towards the EU

    On Sunday, Moldovans voted in the first round of their presidential election. A referendum was also on the ballot to amend the country’s Constitution to include an aspiration to join the EU.

    Pre-election polls had suggested the referendum would easily pass and the popular pro-EU president, Maia Sandu, would be re-elected.

    However, Russia launched a significant “propaganda blitz” ahead of the vote, including credible allegations of widespread vote buying, to undermine the electoral process.

    Sandu won the first round comfortably, with over 42% of the vote, though not by enough to avoid a run-off on November 3. The country’s pro-Russia parties are now likely to coalesce behind the second-place candidate in an attempt to oust her.

    The referendum, however, teetered on the edge of failure before narrowly passing by the tightest of margins.

    Though Moldova’s negotiations with the EU were certain to continue under Sandu regardless of the outcome, the result was nonetheless concerning. It demonstrates the strength of Russia’s influence operations to destabilise a nation seen as key to security on the eastern boundaries of the EU and NATO.

    Moldova has a 1,200-kilometre border with Ukraine in the east and borders Romania, an EU and NATO member, in the west.

    Polling suggests a majority of Moldovans condemned Russia’s invasion of Ukraine, but a significant minority retain pro-Russian views.

    Russia also has a history of interference in Moldova’s sovereignty.

    Moldova declared independence in 1991 during the dissolution of the Soviet Union but Transnistria, a small part of the country along the border with Ukraine, was taken over by separatists in a military operation backed by Russian troops.

    Following Russia’s full-scale invasion of Ukraine in 2022, the Parliamentary Assembly of the Council of Europe formally recognised Transnistria as Moldovan territory still occupied by Russia.

    What’s at stake in Georgia?

    On the day of Moldova’s vote, tens of thousands of pro-EU supporters staged a demonstration in Tblisi, Georgia’s capital, calling for their country to choose a pro-EU path in their own election

    The Georgian Dream party has been in power since 2012 and while it remains nominally pro-EU, it has gradually shifted towards a more pro-Russia stance.

    The Georgian Dream-dominated legislature recently passed an antidemocratic, Putinesque law that requires groups receiving at least 20% of their funding from overseas to register as “agents of foreign influence”. And earlier this month, it passed a sweeping anti-LGBTQ+ bill that bans same-sex marriages, adoption by same-sex couples and changing one’s gender on identity documents.

    The EU suspended Georgia’s accession process after the foreign agents law was passed and has recently cancelled €121 million (A$196 million) in funding due to “democratic backsliding”. This month, the European Parliament also overwhelmingly adopted a resolution calling for a freeze on EU funding to Georgia until its undemocratic laws are repealed.

    The opposition parties are now working together to try to remove Georgian Dream from power, support the re-election of the current pro-EU president and return the country to the road of rapid integration with the EU.

    Polls show support for joining the EU remains very high at nearly 80%. However, as the Moldovan election demonstrates, this may not necessarily be reflected in the vote on election day.



    Read more:
    ‘We do not want to be like Russia’: a first-hand account of Georgia’s fight for democracy

    Russian interference

    Russia has long meddled in its southern neighbour. After an invasion of Georgia in 2008, Russian troops supported two pro-Russian breakaway republics, South Ossetia and Abkhazia, as they had done in Transnistria.

    Russia has now established military bases in both regions, as well as a new naval base in Abkhazia to serve as a permanent base for parts of Russia’s Black Sea fleet.

    These incursions set the stage for Russia’s invasion of Crimea and eastern Ukraine in 2014. As the post-Soviet Baltic states have argued, the lack of an adequate response from the West to these invasions set the stage for Russia’s full-scale invasion of Ukraine.

    Georgians are understandably concerned that Russia may invade their country again. Polls suggest two-thirds of people support joining NATO.

    There are concerns that Saturday’s election could also be tainted. The Parliamentary Assembly of the Council of Europe issued a declaration earlier this month, saying there are “alarming reports” indicating the Russian-backed Georgian Dream party might be “preparing to steal” the election.

    The report accused the ruling party of a “massive intimidation campaign” against opposition candidates and their supporters, including physical attacks. It also said the Central Election Commission has apparently been brought under the control of Georgian Dream.

    The opposition and civil society groups claimed electoral fraud after the 2020 elections, which resulted in mass protests and a political crisis when the opposition boycotted parliament.

    Why these elections matter

    These elections in Georgia and Moldova are crucial for reinforcing democratic rights in vulnerable former Soviet states. Any outcome that shifts their trajectory towards Russia will likely result in increased repression of both minorities, including the LGTBQ+ community, and the political opposition.

    Wins by pro-Russian candidates and parties – legitimate or otherwise – will also drive greater military and economic integration with Russia. Despite popular support in both countries for joining NATO, wins by Russian-backed candidates will likewise undermine support for Ukraine in its war with Russia.

    While it looks like pro-EU results might have squeaked through in Moldova, the elections in Georgia are potentially more hazardous for European relations.

    The stakes in both elections could not be higher.

    Adam Simpson does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. What’s at stake in elections in Georgia and Moldova this week: a stark choice between Russia and the West – https://theconversation.com/whats-at-stake-in-elections-in-georgia-and-moldova-this-week-a-stark-choice-between-russia-and-the-west-240675

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Russia: Rosneft Improves Carbon Management System

    MILES AXLE Translation. Region: Russian Federation –

    Source: Rosneft – Rosneft – An important disclaimer is at the bottom of this article.

    The 7th scientific and practical conference “Environmental Safety. Current Issues of Law Enforcement Practice and Improvement of Activities in the Sphere of Environmental Protection” was held in Samara. The conference was organized by the Rosneft Scientific Institute.

    The event was attended by more than 120 representatives of industrial enterprises and research institutes, higher education institutions, large engineering and manufacturing companies.

    Traditionally, one of the most important areas of work of the scientific forum is the development of carbon management in the oil and gas industry.

    Since 2021, the Company’s Samara scientific institute has been conducting an inventory of greenhouse gas emissions; during this time, work has been completed for more than 50 Rosneft enterprises.

    Samara specialists are creating a database of low-carbon technologies and decarbonization methods, conducting research and development work and feasibility studies of measures to reduce greenhouse gas emissions. The institute has proposed a number of solutions to reduce methane emissions at flare units to minimize the impact of technological processes at oil and gas producing enterprises on the environment.

    Responsible attitude to the environment is an integral part of the corporate culture and one of the key principles of Rosneft. The Company’s strategic focus is to achieve net carbon neutrality by 2050. The strategy’s goals are planned to be achieved through measures to reduce emissions, use low-carbon generation, develop energy-saving technologies, carbon capture and storage technologies, use the potential of natural absorption, and others.

    The scientific conference also considered issues of land reclamation, waste disposal, and practical aspects of obtaining permits in the field of environmental protection. The company is constantly improving approaches to managing environmental protection activities, increasing the scale of environmental measures and providing the necessary investments. Rosneft is focused not only on improving the environmental friendliness of its business and minimizing its impact on the environment, but also on achieving a total positive impact on ecosystems.

    Reference:

    Since 2016, a specialized expert center has been operating on the basis of the Rosneft Scientific Institute in Samara, which is engaged in the development and implementation of relevant environmental protection design products for Rosneft enterprises.

    Department of Information and Advertising of PJSC NK Rosneft October 21, 2024

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

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

    http://vvv.rosneft.ru/press/nevs/item/220930/

    MIL OSI Russia News –

  • MIL-OSI Russia: Moscow Healthcare Professionals Gain Access to Innovative Online Tracking Tool

    Source: Center for Diagnostics and Medicine

    Medical professionals in Moscow now have access to an advanced online service for tracking the utilization of diagnostic equipment. Developed by experts at the Center for Diagnostics and Telemedicine, this tool will be available to all outpatient departments. It facilitates the analysis of medical equipment usage dynamics, assesses operational efficiency, and enables more effective redistribution of workloads. This announcement was made by Yuri Vasilev, Senior Consultant in Radiology and CEO of the Center for Diagnostics and Telemedicine under the Moscow Healthcare Department.

     “The recent years have witnessed transformative advancements in the digitalization of healthcare in Moscow. We continue to expand our portfolio of digital services. Our team at the Center for Diagnostics and Telemedicine has created an information dashboard that enables the analysis and monitoring of diagnostic equipment utilization. This dashboard integrates data from all digital diagnostic equipment linked to the EMIAS Unified Radiology Information Service, which is accessible to 155 medical organizations in the Moscow Healthcare Department. Now, specialists in outpatient departments can independently access real-time data on the utilization of both their own devices and those in other medical centers, facilitating improved planning, load redistribution, patient flow management, and informed decision-making. This initiative enhances the accessibility of radiological diagnostics,” stated Yuri Vasilev.

     The service includes customizable filtering options by medical organization, imaging studies type, district, and device type. Data is processed across more than 20 parameters, including equipment utilization percentage, number of studies, shift details, as well as information regarding the medical organization and specific devices. Users can also view utilization data in tabular format for specified periods, with updates being made regularly. To ensure optimal service operation, a feedback for users has been integrated.

     The new tracking service was developed by the Center for Diagnostics and Telemedicine under the Moscow Healthcare Department. Radiologist here currently interpret over 100,000 imaging studies weekly, with a reported 11% increase in studies conducted in the first half of 2024 compared to the same period last year. In response to this growing volume, various analytical dashboards are being developed, with approximately 75 already in place.

     The Center for Diagnostics and Telemedicine is a leading scientific organization within the Moscow Healthcare Department. It specializes in interpretation imaging studies, coordinates radiology departments management, and enhances the quality of diagnostic studies through standardization efforts. Furthermore, the Center plays a vital role in disseminating best medical practices and implementing innovative technologies across healthcare facilities, not only in Moscow but throughout Russia.

    MIL OSI Russia News –

  • MIL-OSI Russia: Dmitry Chernyshenko: Over 120 thousand people have taken part in the Abilympics championship in 10 years

    MILES AXLE Translation. Region: Russian Federation –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    The final of the National Championship of Professional Skills among Disabled People and People with Limited Health Abilities “Abilympics” will be held at the Gostiny Dvor Exhibition Center in Moscow from October 26 to 29.

    October 21, 2024

    The final of the National Championship of Professional Skills among Disabled People and People with Limited Health Abilities “Abilympics” will be held at the Gostiny Dvor Exhibition Center in Moscow from October 26 to 29.

    October 21, 2024

    Previous news Next news

    The final of the National Championship of Professional Skills among Disabled People and People with Limited Health Abilities “Abilympics” will be held at the Gostiny Dvor Exhibition Center in Moscow from October 26 to 29.

    The final of the National Championship of Professional Skills among Disabled People and People with Limited Health Abilities “Abilympics” will be held in the Gostiny Dvor Exhibition Center in Moscow from October 26 to 29. The championship is being implemented within the framework of the federal project “Professionalism”. This year it will be held under the motto “Dream! Act! Win!”

    “In 2024, the Russian Abilympics movement turns 10. This is an important event in the history of inclusive education in Russia. Over the past time, the championship has become more than just a competition for people with disabilities, but a real guide to the world of professions. It helps schoolchildren, students and specialists realize their potential and develop talents – in accordance with the national goal set by President Vladimir Putin. Over 120 thousand people have taken part in the championship at all stages over 10 years. We are especially proud of the high level of employment: more than 93% have already found work, including those who are still studying,” said Deputy Prime Minister Dmitry Chernyshenko.

    The main goal of the Russian movement “Abilympics” is to form mechanisms for the comprehensive professional rehabilitation of people with disabilities and limited health capabilities, as well as the development of socio-cultural inclusion in society.

    Today, the championship covers all 89 regions of the country, and the number of competitive competencies has increased sevenfold over 10 years – from 29 to 206. About 2.5 thousand enterprises have become partners of the movement at all levels, and all key decisions are now made with the participation of representatives of public organizations of disabled people.

    “The Abilympics Championship includes two main stages. This year, regional stages were held from March to June in 89 subjects of the Russian Federation. Over 25 thousand people competed in 206 competencies, of which over 10 thousand were with disabilities of the first and second groups. I would like to note separately that this year the Donetsk and Lugansk People’s Republics, the Kherson and Zaporizhia regions held regional championships for the first time on the basis of their professional institutions. I thank all the organizers for this work,” said Minister of Education Serhiy Kravtsov.

    Traditionally, the final of the national championship will be held in Moscow, where innovative approaches to ensuring special educational needs are widely implemented and an accessible environment is actively being formed. The site will host competitions in 50 basic and 11 presentation competencies, more than 1 thousand people from all regions of the country will compete for medals and the title of the best in their competence. This event is the largest and most recognizable in Russia in the field of skill development among disabled people and people with disabilities.

    This year, the championship final will be attended by more than 12 thousand people, including participants, heads of executive authorities of the regions of Russia, representatives of all-Russian organizations of the disabled, employer organizations, manufacturers of equipment for people with disabilities, educational and non-profit organizations, as well as delegations from friendly countries. Guests of the championship will be treated to a variety of events and activities: a job fair, career guidance consultations and testing, as well as many master classes.

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

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

    http://government.ru/nevs/53066/

    MIL OSI Russia News –

  • MIL-OSI USA: FBI and CISA Issue Public Service Announcement Warning of Tactics Foreign Threat Actors are Using to Spread Disinformation in the 2024 U.S. General Election

    News In Brief – Source: US Computer Emergency Readiness Team

    WASHINGTON – The Federal Bureau of Investigation (FBI) and the Cybersecurity and Infrastructure Security Agency (CISA) issued their final four-part joint public service announcement (PSA) today titled “Just So You Know: Foreign Threat Actors Likely to Use a Variety of Tactics to Develop and Spread Disinformation During the 2024 U.S. General Election Cycle.” This PSA highlights efforts by foreign actors to spread disinformation in the lead-up to the 2024 U.S. general election with the goal of casting doubt on the integrity of the democratic process and sowing partisan discord. Foreign adversaries are using a variety of sophisticated disinformation campaigns, often leveraging new tools, such as generative artificial intelligence (AI), to craft and spread misleading content. 

    “As we approach Election Day, it is important to remember that while elections are political, election security is not. Election security is national security. Our foreign adversaries are looking to attack our democratic process to further their own objectives, and we need the help of all Americans in ensuring they are not successful,” said CISA Senior Advisor Cait Conley.  “There has been incredible effort across local, state and federal governments to ensure the security and integrity of our nation’s election infrastructure. Americans should be confident that their votes will be counted as cast.  They should also know that our foreign adversaries will try to make them believe otherwise. We encourage everyone to remain vigilant, verify the information they consume, and rely on trusted sources like their state and local election officials.” 

    The PSA highlights specific examples of tactics we have seen used by Russia and Iran during the 2024 election cycle to target all Americans. These include things from mimicking national level media outlets like the Washington Post and Fox News and creating inauthentic news sites posing as legitimate media organizations to using paid influencers to hide their hand. It is important for voters to critically evaluate information sources, particularly as disinformation campaigns evolve to use AI-generated content. Both agencies urge the American public to rely on trusted information from state and local election officials and to verify claims through multiple reliable sources before sharing them on social media or other platforms. 

    For more information on how to protect yourself from disinformation, visit the official websites of the FBI and CISA’s dedicated election security webpage, cisa.gov/Protect2024.  

    ###

    About CISA 

    As the nation’s cyber defense agency and national coordinator for critical infrastructure security, the Cybersecurity and Infrastructure Security Agency leads the national effort to understand, manage, and reduce risk to the digital and physical infrastructure Americans rely on every hour of every day.

    Visit CISA.gov for more information and follow us on X, Facebook, LinkedIn, Instagram. 

    MIL OSI USA News –

  • MIL-OSI Russia: Moscow Healthcare Workers Get Access to Innovative Online Tracking Tool

    MILES AXLE Translation. Region: Russian Federation –

    Source: Center for Diagnostics and Medicine

    Moscow medical workers have gained access to a modern online service for tracking the use of diagnostic equipment. Developed by specialists from the Center for Diagnostics and Telemedicine, this tool will be available to all outpatient departments. It allows analyzing the dynamics of medical equipment use, assessing the efficiency of work and redistributing the workload more effectively. This was reported by Yuri Vasiliev, Senior Consultant in Radiology, General Director of the Center for Diagnostics and Telemedicine at the Moscow Department of Health.

    “In recent years, Moscow has seen transformative progress in the field of healthcare digitalization. We continue to expand our portfolio of digital services. Our team at the Diagnostics and Telemedicine Center has created a dashboard that allows us to analyze and track the use of diagnostic equipment. This dashboard combines data from all digital diagnostic equipment connected to the Unified Radiological Information Service EMIAS, which is accessible to 155 medical organizations of the Moscow Department of Health. Now, specialists from outpatient and polyclinic departments can independently receive real-time data on the load of both their equipment and the equipment of other medical centers, which helps improve planning, redistribution of workload, patient flow management, and informed decision-making. This initiative increases the availability of radiological diagnostics,” said Yuri Vasiliev.

    The service includes customizable filtering options by medical organization, type of research, region, and type of device. Data is processed by more than 20 parameters, including the percentage of equipment usage, number of studies, shift details, as well as information about the medical organization and specific devices. Users can also view equipment usage data in tabular form for specific periods, with updates occurring regularly. Feedback from users is provided to ensure optimal operation of the service.

    The new tracking service was developed by the Center for Diagnostics and Telemedicine at the Moscow Department of Health. Currently, radiologists conduct more than 100,000 studies weekly, and in the first half of 2024, the number of studies will increase by 11% compared to the same period last year. Due to the increase in the volume of studies, various analytical panels are being developed, about 75 of which have already been put into operation.

    The Diagnostics and Telemedicine Center is a leading scientific organization within the Moscow Department of Health. It specializes in image interpretation, coordinates the management of radiology departments, and improves the quality of diagnostic studies by standardizing them. In addition, the Center plays an important role in disseminating advanced medical experience and introducing innovative technologies in medical institutions not only in Moscow, but throughout Russia.

    MIL OSI Russia News –

  • MIL-OSI Russia: IMF Reaches Staff-Level Agreement on an Extended Credit Facility Arrangement with São Tomé and Príncipe

    Source: IMF – News in Russian

    October 21, 2024

    End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.

    • IMF staff and the São Toméan authorities have reached staff-level agreement on economic policies and reforms to be supported by a new 40-month arrangement under the Extended Credit Facility (ECF), updating the agreement reached last year. This renewed staff-level agreement is subject to IMF Management approval and IMF Executive Board consideration, contingent on the implementation of the agreed prior actions and the timely confirmation of the necessary financing assurances from the country’s development partners.
    • The authorities’ ambitious reform program aims at restoring macroeconomic stability while laying the foundations for faster and more inclusive growth. This includes a sizable and front-loaded fiscal adjustment while protecting the vulnerable. The program includes decisive near-term reforms in the electricity sector and medium-term structural reforms to facilitate the green energy transition and unleash the country’s growth potential.

    Washington, DC: An International Monetary Fund (IMF) team led by Mr. Slavi Slavov, Mission Chief for São Tomé and Príncipe, visited São Tomé during May 23 – June 5, 2024, and held virtual discussions in the recent months, to discuss with the São Toméan authorities IMF support for their policies and reform plans.

    At the end of the mission, Mr. Slavov issued the following statement:

    “The São Toméan authorities and the IMF team have reached a renewed staff-level agreement to support the authorities’ economic adjustment and reform policies with a new 40-month program supported by an arrangement under the Extended Credit Facility (ECF). The agreement is subject to approval by IMF’s Management and Executive Board in the period ahead, and is contingent on the implementation of prior actions by the authorities and the timely confirmation of the necessary financing assurances from the country’s development partners to cover the external financing gap.

    “São Tomé and Príncipe faced a very challenging 2023 and continues to struggle with high fuel import needs and depleted international reserves. Over the past few years, the country has been hit by multiple shocks, whose impact on the economy continues to reverberate. This includes the massive external shock in early 2023 when a major fuel exporter stopped supplying fuel on credit, opening a large external financing gap.

    “These factors, along with energy shortages, contributed to a slowdown of real GDP growth to 0.2 percent in 2022 and 0.4 percent in 2023. Inflation accelerated to 19.2 percent in April 2024 before declining to 12 percent in August, year-on-year. International reserves fell sharply.

    “The authorities’ program aims to restore macroeconomic stability, improve the living conditions of the population, foster the economic recovery, and promote sustainable and inclusive growth. The necessarily ambitious and front-loaded fiscal adjustment is crucial to lowering the high public debt and rebalancing the economy under a pegged exchange rate, but is designed with care to protect the vulnerable.

    “The authorities have already implemented significant reforms. They launched the Value-Added Tax in June 2023 and implemented a large fiscal adjustment in 2023. Fuel prices were adjusted, and explicit fuel subsidies have been eliminated in the aggregate. The central bank (Banco Central de São Tomé e Príncipe or BCSTP) ended monetary financing of the budget and implemented tightening measures.  

    “The authorities will make further efforts to strengthen tax and customs administration and to rationalize budgetary expenditures. These efforts will create the fiscal space for implementing growth-enhancing development programs that will help put public debt on a downward trajectory. In addition, the authorities will strengthen social safety nets and reinforce the existing targeted cash-transfer program for vulnerable households. Given the country’s high public debt, ensuring that new financing takes the form of highly concessional loans or ideally grants will be vital to ensure sustainability and also meet vital spending needs.

    “Moreover, the program will urgently implement near-term reforms to address the crisis in the electricity sector. This would alleviate pressures on public debt and foreign exchange reserves. To prevent implicit fuel subsidies and contain fiscal risks, the authorities will apply the fuel price adjustment mechanism in a truly automatic way on a monthly basis. The government will strengthen transparency and address governance weaknesses to reduce vulnerabilities to corruption. Finally, the authorities will strengthen the BCSTP, ensuring its autonomy and appropriate governance arrangements.

    “Over the medium term, structural reforms will unleash the country’s growth potential. These include the reform strategy for the energy sector with a focus on shifting towards renewable sources, encouraging domestic food production, fostering the tourism sector, adapting to climate change, and empowering women.

    “During the visit and subsequent virtual discussions, the mission met with President Carlos Vila Nova; Prime Minister Patrice Émery Trovoada; Minister of Planning and Finance Ginésio Valentim Afonso da Mata; Minister of Economy Disney Leite Ramos; Governor of the Central Bank Américo D’Oliveira dos Ramos; President of the Court of Auditors Ricardino Costa Alegre; other government officials; representatives of the private sector including banks; and development partners. The mission expresses its deep appreciation to the authorities for their cooperation and constructive policy dialogue.”

    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/2024/10/18/pr-24382-sao-tome-and-principe-imf-reaches-staff-level-agreement-on-an-ecf-arrangement

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Russia: Applications for the 2025 Winter PPS Competition are now open

    Translation. Region: Russian Federation –

    Source: State University Higher School of Economics – State University Higher School of Economics –

    On October 21, the Higher School of Economics launched the next contest to fill positions of professorial and teaching staff in Moscow, Saint Petersburg And Perm. The competitive application provides for the candidate to choose a preferred career path – academic, educational and methodological or practice-oriented. 273 vacancies are posted for the competition, documents are accepted until 15:00 on November 25.

    Of the 273 vacancies, 172 are offered in Moscow, 79 in St. Petersburg, and 22 in Perm. The Nizhny Novgorod campus is not participating in this competition.

    A total of 707 applications were submitted for the 2024 summer competition, including 476 in Moscow, 152 in St. Petersburg, 36 in Nizhny Novgorod, and 43 in Perm. Decisions on election to the position were made based on 598 applications (415, 106, 34, and 43 by campus, respectively).

    The competition for filling the positions of the teaching staff at the National Research University Higher School of Economics is as open as possible; external candidates have the same chances of winning as current HSE employees. Documents are submitted online in the electronic system – this simplifies the submission of the competition application, gives the opportunity to take part in the competition to people from different cities and countries.

    The selection for the 2025 winter competition consists of several stages.

    First, the applicant must submit the competition documents, then the specialized personnel commissions (there are 34 of them) will decide whether to continue their consideration or reject them, after which their examination will begin, and if necessary, interviews and personal appearances will be held. Any candidate for the position of faculty member can consult with the managers of the personnel commissions at any time and ask them any questions they may have, regardless of whether they are from HSE or not.

    More information about the stages of the competition can be found on its page, and explanations on the preparation of documents and criteria for assessing applicants are also posted here. The registration procedure for participation in the competition lasts more than a month – this time is enough to order and submit documents confirming the absence of restrictions on conducting educational activities.

    Each applicant must fill out the type of competition questionnaire that corresponds to their status. There are three types: “I am a teacher at HSE”, “I work at HSE under an employment contract, but I am not a teacher / I work under a civil contract”, “I am an external participant”. Completion of the competition questionnaire for all participants is carried out through a single personal account (SPA), to enter which university employees can use a corporate login and password. External participants must register in the SPA, after which a password will be sent to the email address they specified.

    When filling out the competition questionnaire, each participant will be asked to choose the closest professional (career) trajectories, within which he sees his professional development at HSE (first and second priorities). There are three such trajectories: academic, educational-methodological and practice-oriented. The candidate’s choice of a preferred career trajectory in the competition application must be confirmed by the data and indicators that he presents in his questionnaire.

    The core of the requirements for employees on the academic trajectory is publication activity in terms of scientific publications. The evaluation criteria for the educational-methodological and practice-oriented professional trajectories have been developed by specialized personnel commissions and approved by the academic councils of faculties/branches.

    In recent years, attention has been paid to the compliance of candidates working at the Higher School of Economics with the rules and principles of assessing student learning outcomes (preventing “grade inflation”). The questionnaire includes a question about taking courses to develop teaching skills, regardless of the chosen trajectory. If you have not completed such courses as part of your advanced training, you can start with independent study of the online course “Modern Approaches to Teaching and Learning”. Other opportunities are also available as part of the “Teach4HSE / We Teach at HSE” project.

    If the candidate has entered into an agreement on electronic interaction (this is only possible on the Moscow campus), he/she will be able to sign the application in electronic format using a simple electronic signature. If he/she has not entered into an agreement, then by November 25, it is necessary to either send a scan of the signed application to the e-mail addresses indicated on page in the section “Application for participation in the faculty competition”, or submit the original to the single reception office of the HSE University – Moscow, to the academic secretary – at the HSE University in St. Petersburg and Perm, or send the document by mail (this can be done before the end of the document acceptance period, notifying the university about sending and keeping the receipt). When filling out the questionnaire, you will be able to see the corresponding instructions.

    The results of the competition will be announced on February 13 by the Academic Councils of the branches (recommendation of professors, election of assistants, lecturers, senior lecturers, associate professors), on February 26 – by the Academic Council of the HSE in Moscow (voting for participants from the capital, for professors from the HSE in St. Petersburg and Perm). The format of the faculty competition will be determined before the meeting of the Academic Council of the HSE / branch at which the competition will be held, and posted on the HSE portal.

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

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

    http://vvv.hse.ru/nevs/edu/977901263.html

    MIL OSI Russia News –

  • MIL-OSI Russia: The General Physical Training Day brought together more than 2,000 first-year students and students of the NSU Specialized Scientific Center

    Translation. Region: Russian Federation –

    Source: Novosibirsk State University – Novosibirsk State University –

    As part of the Sports Festival of Friendship “Together We Are Strong!” another mass physical education event was held – “General Physical Training Day” among first-year students and students of the NSU SUNC.

    The festival received support from the All-Russian “Movement of the First” in the competition of project activities aimed at organizing leisure, education and development of youth, and the Department of Physical Education of NSU actively involves students and schoolchildren in various sports competitions.

    More than 2,000 people demonstrated their physical fitness in two exercises: young men did pull-ups and long jumps from a standing position, while young women also jumped and performed an abdominal exercise – lifting the body from a lying position to a sitting position in 1 minute.

    The winners among first-year students were:

    Abdominal exercise

    1st place – Anastasia Smirnova (IIR), result 63 2nd place – Alina Mordasova (GI), result 61 3rd place – Sofia Volkova (IFP), result 59

    Long jump from the spot 1st place — Ksenia Popova (FF), result 2252nd place — Anna Zubareva (FIT), result 220 3rd place — Irina Katsuk (FIT), Elizaveta Merkina and Polina Gnedenko (EF), result 205

    Among the guys, the leaders were:

    Pull-ups 1st place — Nikolay Morev (FEN), result 33 2nd place — Sergey Budyakov (IFP), result 26 2nd place — Mikhail Koshkin (IIR), result 26

    Long jump from the spot 1st place — Vladislav Kazarin (MMF), result 300 2nd place — Kirill Mulduyanov (MMF), result 290 3rd place — Alexey Koltyugin (GGF), result 285

    Students of the NSU SUNC showed the following results:

    Pull-up, boys 1st place – Gleb Markus, result 24, class 10-2 2nd place – Alexander Kornilov, result 23, class 11-1 3rd place – Arseniy Sadovsky, result 22, class 11-10

    Long jump from the spot, boys

    1st place — Alexander Kornilov, result 285, class 11-1 2nd place — Roman Desyatkin, result 280, class 11-1 3rd place — Gleb Markus, result 272, class 10-2

    1-Minute Press, Girls: 1st place — Arina Landl, result 52, class 10-2 1st place — Tatyana Vyshegorodtseva, result 52, class 10-7 3rd place — Sofia Belokopytova, result 50, class 10-6

    Standing long jump: 1st place – Anna Shcherbakova, result 215, class 9-3 2nd place – Arina Landl, result 210, class 10-2 2nd place – Diana Chun, result 210, class 11-2

    Congratulations to all winners and prize winners!

    The event was held with grant support#Movementsfirst#GrantsFirst #MovementsFirst

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

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

    https://vvv.nsu.ru/n/media/nevs/sports-physical department/day-ofp-gathered-over-2000-first-year-and-students-sunts-nsu/

    MIL OSI Russia News –

  • MIL-OSI: Marquette National Corporation Declares a Dividend of $0.28 per Share

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Oct. 21, 2024 (GLOBE NEWSWIRE) — Marquette National Corporation (OTCQX: MNAT) today announced that its Board of Directors declared a cash dividend of $0.28 per share. The dividend will be payable on January 2, 2025 to shareholders of record on December 20, 2024. As of September 30, 2024, Marquette National Corporation had 4,372,352 shares issued and outstanding.  

    Marquette National Corporation is a diversified bank holding company with total assets of approximately $2.20 billion. The Company’s banking subsidiary, Marquette Bank, is a full-service, community bank that serves the financial needs of communities in Chicagoland, offering an extensive line of financial solutions, including retail banking, real estate lending, trust, insurance, investments, wealth management and business banking to consumers and commercial customers. Marquette Bank has 20 branches located in: Chicago, Bolingbrook, Bridgeview, Evergreen Park, Hickory Hills, Lemont, New Lenox, Oak Forest, Oak Lawn, Orland Park, Summit and Tinley Park, Illinois. For more information visit: https://emarquettebank.com.

    Special Note Concerning Forward-Looking Statements
    This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies(including the effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business as a result of the upcoming 2024 presidential election or any changes in response to failures of other banks; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of the significant rate increases by the Federal Reserve since 2022); (vi) increased competition in the financial services sector (including from non-bank competitors such as credit unions and “fintech” companies) and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the Company; (xi) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xii) fluctuations in the value of securities held in our securities portfolio; (xiii) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xiv) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversity their exposure; (xv) the level of non-performing assets on our balance sheets; (xvi) interruptions involving our information technology and communications systems or third-party servicers; (xvii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xviii) the ability of the Company to manage the risks associated with the foregoing as well as anticipated.. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

    For more information:
    Patrick Hunt
    EVP & CFO
    708-364-9019
    phunt@emarquettebank.com

    The MIL Network –