Category: Canada

On 19 March 2025, the delegation of National Bank of Canada and representatives of ABA Bank paid a courtesy visit to the National Bank of Cambodia, highlighting its ongoing support of Cambodia’s banking sector development. National Bank of Canada is one of the largest banks in Canada and the shareholder of ABA Bank, the largest Cambodian commercial bank.

Led by Laurent Ferreira, President and CEO of National Bank of Canada, the delegation was warmly received by H.E. Dr. Chea Serey, Governor of the National Bank of Cambodia. The meeting bore fruitful discussions as parties went over various topics, including digital transformation, green finance, vast investment opportunities, and the role ABA has been playing in developing the country’s economy and attracting investors to the Kingdom.

During the meeting, Laurent Ferreira commended the National Bank of Cambodia’s unwavering efforts in the country’s financial development and highlighted its excellence in facilitating economic growth.

With that belief in mind, since 2014, National Bank of Canada has invested USD 900 million and reinvested all of ABA’s profit into strengthening its capital base, reinforcing ABA’s dedication to Cambodia’s sustainable growth and development.

“National Bank of Canada values the opportunity to operate in Cambodia through its full subsidiary, ABA Bank,” commented Laurent Ferreira. “Cambodia’s thriving economy and business-friendly environment provided fertile ground for ABA’s growth. Since our investment in 2014, ABA Bank, led by a competent leadership and dedicated staff, has flourished, validating our trust in Cambodia’s supportive business climate,” he concluded.

In time, ABA has evolved into a robust financial institution, supporting Cambodia’s economic growth. The Bank has extended $8.6 billion in loans to key economic sectors, including trade, tourism, manufacturing and agriculture.

ABA is also actively financing infrastructure projects for the country’s development. Recent financing include green bonds supporting a solar farm project, which will provide Cambodia with cheaper electricity, lowering production costs and boosting the country’s regional competitiveness. Additionally, ABA provided financing to Techo International Airport. This transformative project will boost Cambodia’s economic connectivity and drive growth in tourism and logistics.

Laurent Ferreira mentioned that the successful example of National Bank of Canada’s investing in a Cambodian bank enhances Cambodia’s profile in Canada as an attractive investment destination. National Bank of Canada actively promotes Cambodia to its customers seeking international expansion, reinforcing confidence in the Kingdom’s potential.

In August 2024, National Bank of Canada was key in facilitating high-level meetings between Cambodian government officials and Canadian private sector leaders and investors. The Investment Roadshow, led by His Excellency Sun Chanthol, showcased Cambodia’s promising investment landscape in the U.S. and Canada.

ABA Bank is proud of the recent meeting between the delegation of National Bank of Canada and the Governor of the National Bank of Cambodia, bolstering its dedication to supporting the country’s banking sector through innovative banking services and a customer-centric approach.

As the Cambodian banking sector regulator, the National Bank of Cambodia is crucial in ensuring financial stability, fostering innovation, and guiding sustainable growth. ABA Bank deeply appreciates NBC’s continuous guidance and visionary leadership, which has been instrumental in the Bank’s development and success.

ABA Bank’s journey is intrinsically linked to Cambodia’s prosperity. The bank remains dedicated to building a strong, sustainable banking sector that aligns with the country’s long-term development goals. With the continued support of the Royal Government of Cambodia, ABA looks forward to realizing the shared vision for a more prosperous and financially inclusive Cambodia.

About ABA Bank 

ABA Bank (www.ababank.com) is Cambodia’s largest commercial bank by assets, deposits, loans, and profitability, according to the Annual Supervision Report 2021-2023 of the National Bank of Cambodia. 

The Bank’s wide-reaching footprint covers 99 branches, 46 self-banking spots, 1,700+ self-banking machines, and advanced online and mobile banking platforms, providing more than 4.5 million customers with the convenience of modern financial services.

ABA Bank is a subsidiary of National Bank of Canada, one of the largest banks in Canada.

About National Bank of Canada

National Bank of Canada (www.nbc.ca) is a financial institution with around USD 334 billion in assets as of 31 January 2025 and a vast network of correspondent banks worldwide. National Bank of Canada holds credit ratings of “A” from S&P, “A+” from Fitch, and “A1” from Moody’s.

It is headquartered in Montreal and has branches across Canada, serving 2.8 million clients. National Bank of Canada is the leading bank in Quebec, where it is the partner of choice among SMEs.

The bank’s securities are listed on the Toronto Stock Exchange (TSX: NA). Clients in the United States, Europe, and other parts of the world are served through a network of representative offices, subsidiaries, and partnerships.

Image Source: Pixabay

The world is different. After a four-year restoration of the traditional globalist US elite, a majority of the American electorate seems to have rejected it. President Trump is indeed a transformational president, and his reversal of many traditional elements of US domestic and foreign policy are triggering dramatic action in other parts of the world. 

Many Americans and European had been critical of Germany’s self-imposed fiscal strait jacket In March, Berlin adopted a 500 bln euro infrastructure campaign and will no longer include military spending in the calculation of the debt break.

The European Commission is moving to allow members to have greater fiscal leeway. The UK’s Labour government has opted to boost defense spending by cannibalizing its foreign aid budget. The Polish government is seeking nuclear weapons, either its own or foreign deployment. By the end April, Europe is expected to announce a “reassurance force” for Ukraine. Several countries have offered some trade concessions in hope of avoiding, or at least minimizing, US tariffs. 

The UN vote, which for the first time the US sided with Russia, Iran, and China over Europe on a security issue, signals the greatest crisis in the Atlantic alliance since at least the Suez Crisis (1956). The territorial overture to Greenland, part of NATO-member Denmark, sparked some talk of the deployment of European forces, whose purpose would not be to deter China or Russia. Trump’s actions and threats have given UK Prime Minister Starmer an excellent opportunity to re-boot the UK-European relationship post-Brexit.

Trump’s harassment of Canada, a member of the British commonwealth, though Starmer and apparently King Charles did not raise this issue in defense Canada in talks with Trump, shifted the balance in Canadian politics. Trudeau was in a precarious position and his resignation as Liberal Party leader was driven by domestic developments and considerations.

However, Carney, the former governor of both the Bank of Canada and the Bank of England is the new prime minister and Liberal Party voters appeared to see him as the most capable to deal with Trump. Conservative Party leader Poilievre was running ahead in the polls but now the Liberals under Carney seem more likely to win the April 28 election. Regardless of the election outcome, the US insult and threat will likely spur Canada to develop closer ties with Europe and is reportedly fueling consumer and tourist boycott in both.

Trump’s key claim is that America’s traditional allies have taken advantage of it more than its traditional rivals. His wrath appears more aimed at them that Russia or China. He asserts that the EU was created to “screw” the US, though the historical record tell as different story, and US officials often encouraged the integration of Europe, even as it pushed back against proposals for a European army or dollar rival.

Many Americans do seem to believe that the chronically large trade deficits reflect unfair foreign trade practices that are making the US poorer. Yet, it is difficult to square this with the economic data. It is true that the US has been running a current account deficit since 1982, while Japan has been reporting a surplus since 1981 and Germany since 2002. Yet, the US economy has consistently outperformed them. US real GDP per capita rose at an annual rate of 1.8% between 1980 and 2023. In contrast, real per capita GDP rose at 1.4% pace in Germany and 1.5% in Japan.

Moreover, a significant portion of US imports come from the foreign affiliates of US-headquartered companies. For historical reasons, US companies pursued a strategy foreign direct investment strategy rather than a traditional export-oriented approach to serve foreign demand. Since the US data began more than 60 years ago, sales by affiliates of US multinationals outstripped US exports by magnitudes. 

To be sure, and contrary to conventional wisdom, the critical driver is not cheap labor. After all, US foreign direct investment and the employment by the affiliates of US companies are greater in the G10 economies than in sub-Saharan Africa. A better explanation is that US foreign direct investment is more likely to be in or near important customers and markets, which are often in higher income economies.

To overcome US and European protectionism of 1980s and a strong yen, Japan auto and parts companies adopted a direct investment strategy as well. They too did not move to sub-Saharan Africa or the interior of South America, or the Caribbean, but also located near their most foreign market, the US. This includes Mexico. 

In his first term, Trump renegotiated the North American Free-Trade Agreement (NAFTA) and replaced it with the USMCA (US, Mexico, Canada Agreement) with more robust domestic content rules, which encouraged US, European and Japanese companies to locate production in the free-trade area. Now, in an apparent reversal, the Trump administration argues near-shoring and friend-shoring are not good enough. Only onshoring will suffice. 

On April 2, the US is expected to announce details of its reciprocal and possibly more sectoral tariff strategy. The administration appears to have two conflicting goals. One is to reduce trade barriers for US goods, promoting exports. The other is to raise revenue to help fund the tax cuts it is pursuing which go beyond simply making permanent the Tax Cuts and Job Program of the first Trump’s first term. The more successful the first is, the less success the second can be.

Bannockburn’s World Currency Index (BWCI), a GDP-weighted basket of the 12 currencies of the 12 largest economies, rose by about 1% in March. It was the third consecutive monthly gain and the largest since November 2023. This reflects the appreciation of nearly all the currencies against the dollar. The South Korean won, which lost about 0.5% was the exception to the generalization. The Japanese yen eked out a minor gain through March 28, and the Chinese yuan was nearly flat. It rose by about 0.2%. 

Among the G10 components, the euro’s 4.1% gain was the strongest, followed by sterling rise of a little more than 3%. Among the emerging market members, the Russian ruble’s nearly 6% advance was the strongest, while the Indian rupee and Brazilian real rose more than 2%. The BWCI peaked on March 18 at a four-month high, the same day the Dollar Index recorded a five-month low. 

The dollar’s weakness in Q1 coincided with a pullback in US equities. European investors bought a record amount of US shares in 2024, which helped lift the greenback. That process seems to have been reversed in this year. Also, interest rate differentials move against the dollar. The US two-year yield fell by about 30 bp, while the German two-year yield slipped by about five basis points and Japan’s two-year yield rose by a little more than 25 bp. Even more dramatic was the 10-year rate moves. The US 10-year yields fell by the around 30 bp, the same as the two-year, but with fiscal expansion plans, eurozone 10-year rates rose 25-35 bp, a little less than 15 bp in the UK, and the 10-year JGB yield increased by a little more than 45 bp. 

U.S. Dollar:Russia’s invasion of Ukraine in 2022 was a shock. Decoupling from China 2023-2024 was another shock. A third shock is emanating from the US as the new administration reverses many traditional positions and launches a trade war, seemingly aimed at US allies, but it is also an assault on US multinational companies’ foreign direct investment strategy that entails servicing foreign demand more by producing locally than exports. The US has suspended its $25 mln financial contribution to the WTO, which is more symbolic than a budget savings. Reciprocal tariffs, which the administration says will take into account not only tariff differentials, but also non-tariff barriers to trade, are to be announced April 2. More sectoral tariffs, including on lumber, copper, semiconductors, and pharma have also been threatened though the dates are no known. The certainty of some tariffs and the uncertainty of others have seen consumer confidence implode. The net result is likely to be weaker growth and firmer prices. Ultimately, we suspect the former will spur the Federal Reserve into resuming its easing cycle that began last year. In addition to tariffs, significant government layoffs and the crackdown on legal immigration will also act as headwind on economic growth. Meanwhile, Canada and Europe appear to be engaged in a consumer boycott against the US, which includes a sharp drop in tourist plans. This could also lead to further deterioration of the US trade balance as tourism is understood to be the export of hospitality services. 

Euro:March may have been turning point for Europe. Faced with growing threats from the United States, the new German government announced a 500 bln euro 10-year infrastructure initiative and removed defense spending from its debt brake. The EU is moving toward granting greater fiscal flexibility to its members, with similar emphasis as Germany–infrastructure and defense. This shift, which reduces the downside tail risks, at the same time as the eurozone composite PMI gradually recovers, spending Q1 25 above the 50 boom/bust level, and German sentiment improves. Eurozone 10-year yields rose by about 30 bp in March but the periphery premium over the core did not increase, as it often does in a rising interest rate environment. The ECB delivered its sixth rate quarter-point rate cut in the easing cycle that began last June. The deposit rate now stands at 2.75%. ECB President Lagarde has suggested the neutral rate is around 1.75%. The swaps market is pricing in about almost an 85% chance of another quarter-point cut in April, but the pace is expected to slow. The market has one cut fully discounted in H2 25. The terminal rate is seen near 1.75%. 

(As of March 28, indicative closing prices, previous in parentheses)  

Spot: $1.0825 ($1.0375) Median Bloomberg One-month forecast: $1.0755 ($1.0300) One-month forward: $1.0845($1.0395) One-month implied vol: 7.6% (7.6%)  

Japanese Yen:  The dollar bottomed against the yen on March 11 near JPY146.55, its lowest level, a five-month low, a day after the premium the US offers over 10-year JGBS was squeezed to its narrowest since August 2022. As US rates and the premium over Japan widened, the greenback recovered toward the March high (JPY151.30). We look for the dollar to pullback toward JPY148.50-JPY149.00 as we anticipate that the US real sector data will catch-up to the weakness seen in recent survey data. The Japanese economy is off to a poor start this year, with industrial production and the tertiary activities index (services) contracting in January. Household spending was soft, and the preliminary March composite PMI fell to its lowest since February 2022 (48.5). With core inflation at 3% in February, and well above the 2% target, the Bank of Japan remains in a tightening mode, but it is not in a hurry. While the swaps market has a little more than an 80% chance that the next hike is delivered in July, up slightly in recent weeks, the next rate hike is not fully discounted in the until October. 

Spot: JPY149.85 (JPY150.65) Median Bloomberg One-month forecast: JPY149.25 (JPY152.00) One-month forward: JPY149.35 (JPY150.10). One-month implied vol: 9.4% (10.8%) 

British Pound:  The dimmer economic prospects prompted the Chancellor of the Exchequer Reeves to cuts spending and rely on tackling tax avoidance to maintain the fiscal buffer of almost GBP10 bln that was identified last fall. The Office for Budget Responsibility cut this year’s growth forecast in half to 1%. It sees almost a 50% chance that the targets are missed, forcing more difficult decisions in the fall. The US tariffs and a most rise in borrowing costs could be the catalyst. The recently announced US auto tariffs could impact almost a fifth or around $12 bln of UK auto exports. The UK may be vulnerable to the reciprocal tariff threat. While US and UK tariffs on each other’s goods are nearly the same, the UK has a 20% VAT, which the US administration argues gives it an unfair trade advantage. The UK may also be vulnerable if the US seeks to offset the UK digital tax through tariffs. The Bank of England meets next on May 7 and the swaps market is discounting around a 75% chance of a cut, down from 90% probability seen at the end of February. The market has about 50 bp of cuts in the remainder of the year, while at the end of February, there was almost a 40% chance of another cut before year-end. For the last three weeks, sterling has mostly consolidated in a little more than a cent-and-a-half range above $1.2850. The $1.30 level was breached a few times, but it did not get above $1.3015. The breakout of the range will likely indicate the direction of the next 1-2-move. 

Spot: $1.2940 ($1.2575) Median Bloomberg One-month forecast: $1.2900 ($1.2400) One-month forward:$1.2945 ($1.2580) One-month implied vol: 6.7% (7.5%)  

Canadian Dollar:   Canada has been targeted by the Trump administration. It is not limited to tariff threats, but some reports suggest the US is contemplating forcing Canada out of the intelligence-sharing group, Five-Eyes, and makes overtures about incorporating Canada into the US. This has thrown a spanner into the Conservative’s electoral hopes. Carney, the former Bank of Canada, and Bank of England governor won the Liberal Party leadership contest, and within two weeks, called for a snap election (April 28). Under Carney, the Liberals are adopting more pro-business platform and jettisoning some of Trudeau’s unpopular policies. The polls give the Liberals a small advantage, within the margin of error. The Bank of Canada delivered a quarter-point rate cut in March, and although the monetary cycle is not over, a cut at the April 16 meeting looks unlikely. The US dollar fell for the second consecutive month against the Canadian dollar after rising for five months through January. It was the first back-to-back monthly decline since the end of 2023. The April 2 US tariff announcement is likely more important factor for the exchange rate than the high-frequency economic data. Given the relative size, the trade war will hurt the Canadian economy in the first instance harder than the US economy. This seems to make the Canadian dollar vulnerable. Still, and even after the auto tariff announcement, the US dollar is in the lower end of March’s range below CAD1.4300. 

Spot: CAD1.4315 (CAD 1.4460) Median Bloomberg One-month forecast: CAD1.4340 (CAD1.4400) One-month forward: CAD1.4300 (CAD1.4440) One-month implied vol: 6.5% (8.5%) 

Australian Dollar:The Reserve Bank of Australia began its easing cycle in February but has signaled a cautious approach. It is most likely to stand pat at the April 1 meeting, but the disappointing February employment report that showed a nearly 36k full-time job loss, which practically offset in full the January gain did boost odds of cut at the following meeting on May 20. Cyclone Alfred that hit in early March will adversely impact short-term growth metrics, the labor market, and may keep prices firm. Meanwhile, a national election has been called for May 3. All seats in the House of Representatives and a little more than half of the Senate are at stake. The latest polls suggest that the incumbent Labor Party has improved and is now ahead of the Liberal-National coalition. Prime Minister Albanese hopes to be the first prime minister in a couple of decades to enjoy re-election. Just before the election announcement, he announced tax cuts, an extension of the energy rebate, and an in increase in the threshold at which the tax for the government health-care system is triggered. The budget deficit projected to widen to about 1.5% of GDP from 1.0% in the current fiscal year, which runs through the end of June. The Australian dollar rose by about 1% in March, but it looks vulnerable in the near-term, but the risk-reward is not favorable as it is hovering around the middle of its $0.6200-$0.6400 trading range. It was turned back from its attempt at the year’s high seen in February near $0.6410. A break of the $0.6185-$0.6200 area warns of the risk of a return toward the year’s low a little below $0.6100. 

Spot: $0.6285 ($0.6210) Median Bloomberg One-month forecast: $0.6290 ($0.6300) One-month forward: $0.6290 ($0.6215)  One-month implied vol: 8.5% (9.9%)  

Mexican Peso:With inflation back within target and the economy weak, Mexico’s central bank delivered two half-point rate cuts in Q1 25. Mindful of these economic conditions, the central bank offered dovish foreign guidance indicating that if the economy evolves as expect, it will deliver another 50 bp cut at its next meeting (May 15). From the dollar’s spike peak in early February, when 25% tariffs on Mexico’s exports to the US looked imminent to the mid-March low, the US dollar fell by nearly 6.8%. The March low, slightly below MXN19.85, was the greenback’s low since shortly after the US election last November. We suspect that marks an important low and see potential in the coming weeks returning to the March high near MXN21.00. President Sheinbaum is winning strong praise for her interactions with the US administration. Her domestic support is over 80%. While Canada is seeking closer ties with Europe, Mexico has fewer options to offset the challenges posed by its northern neighbor. In the month through March 28, the Canadian dollar rose by about 1.25% against the dollar, almost half as much as the peso but to paraphrase Galileo, it did move. And year-to-date, the peso is up 2% while the Canadian dollar has not appreciated by 0.75%. Bolsa rose by nearly 7.5% in Q1 25 compared with less 1% gain in the Toronto Stock Exchange Composite. 

Spot: MXN20.3750 (MXN20.55) Median Bloomberg One-month forecast: MXN20.5350 (MXN20.75) One-month forward: MXN20.46 (MXN20.75) One-month implied vol: 13.0% (13.3%) 

Chinese Yuan:  The Chinese economy continues to lag Beijing’s hopes, and this has produced a stream of reform and stimulus measures. None of which has proved to end the deflation or ensure that the growth and inflation targets are met. Yet, the recent technological developments, like DeepSeek and BYD’s rapid charging system for electric vehicles and combining AI with robotics has captured investors’ imaginations. The index of Chinese companies that trade in Hong Kong is up 18% so far this year, putting it among the top performers. Officials closely manage the exchange rate, and through various means, keep it broadly stable against the US dollar. The dollar was confined to about a 1.6% range in Q1 25 after a 4% range in Q4 24. Officials tolerate a bit more movement in the offshore yuan but have intervened via liquidity in Hong Kong at times to temper it. In Q1 25, the dollar traded about a 2.15% range against the offshore yuan after about a 5.25% range in Q4 24. 

Spot: CNY7.2625 (CNY7.2785) Median Bloomberg One-month forecast: CNY7.2890 (CNY7.3500) One-month forward: CNY7.1800 (CNY7.1855) One-month implied vol: 4.9% (4.8%)

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A $1,000 investment in a growth stock is a great way to start building long-term wealth, but it is important to set the right expectations. Most strong growth companies take years to reach their potential. This means you need to focus on fundamentals, market opportunity, and long-term vision rather than short-term hype. The Toronto Stock Exchange has several growth stocks that fit that profile, and now could be a good time to buy while valuations remain reasonable.

In this article, I’ll highlight one top dividend-paying growth stock from the tech sector that could be a smart addition to your portfolio today.

Open Text stock

One TSX stock that checks all the right boxes for long-term growth could be OpenText (TSX:OTEX), one of Canada’s top enterprise software providers. This Waterloo-based company helps businesses manage and protect their digital information with a wide range of solutions, including cloud and content management, cybersecurity, and artificial intelligence (AI)-powered analytics.

Currently, OTEX stock is trading at $37.90 per share with a market cap of $10 billion. And for those who like a little income on top of growth, OpenText offers a quarterly dividend with a solid annualized yield of 4%.

That said, the stock hasn’t had the smoothest ride lately, as it has declined by 28% over the past year. While that might look concerning at first glance, it could also mean this growth stock is sitting at a more attractive entry point for long-term investors.

What’s behind the recent dip?

Besides the ongoing macroeconomic challenges and the broader market volatility, another big reason behind the pullback could be its lower-than-expected revenue in recent quarters. In the second quarter (ended December 2024) of its fiscal 2025, the company’s total revenue slipped 13% YoY (year over year) to US$1.34 billion. A lot of that drop came from lower customer support and license revenues. In addition, OpenText is still adjusting from the divestiture of its application modernization and connectivity business, which impacted comparisons from last year.

But the interesting part is that even with that decline in sales, OpenText delivered strong profits and cash flows. In the latest quarter, the company posted adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of US$501 million with a strong margin of 37.6% and generated US$307 million in free cash flow. That shows its business model has resilience even when top-line growth slows.

Why this might be a smart long-term growth pick

Even amid macroeconomic challenges, OpenText isn’t just cutting costs and riding it out. In fact, it’s actively investing in its future. Its management considers the current phase a shift toward a new era of multi-cloud, AI, and cybersecurity-driven services. That’s why the company has rolled out its next-gen cloud platform, called Titanium X, which mainly tries to help businesses better integrate data, security, and artificial intelligence.

It’s also making big moves in the AI space with its OpenText Aviator platform and opentext.ai strategy, which mainly focuses on helping customers tap into generative AI tools safely and efficiently. Put it all together, and you get strong free cash flow, a focus on cloud and AI innovation, and a dividend while you wait. Given these factors, OpenText could be a smart bet for patient investors who want to buy a solid growth stock on a pullback.

VVT Medical, a developer of minimally invasive treatments for venous insufficiency, announced that it has received conditional approval from the TSXv to list its common shares.

The Kfar Saba, Israel–based company has already secured $6.5 million in funding toward its listing and seeks to reach at least $8 million in total financing. DXI Capital Corp. has agreed to acquire all outstanding shares and has acquired a holding company that will then acquire VVT Medical to facilitate its listing in Toronto.

“This approval represents a significant milestone for VVT Medical as we accelerate our global growth strategy and drive increased value for our shareholders,” VVT Medical CEO Erez Tetro said in a news release.

“Securing a listing on the Toronto Stock Exchange will enhance our access to capital markets, empowering us to further innovate and expand our portfolio of patient-focused solutions addressing venous insufficiency — a $60 billion market currently underserved, with only about 2% of patients receiving effective treatments.”

The FDA in 2023 cleared VVT Medical’s ScleroSafe platform, which delivers endovenous chemical ablation to treat superficial varicose veins. The patented coaxial, double-lumen catheter is designed for treating small peripheral veins, providing what the company describes as an efficient, non-thermal, non-tumescent treatment. VVT Medical’s portfolio also includes V-Block, which adds a permanent biomedical implant to the ScleroSafe technology and is meant to treat larger central veins.

“Combining FDA approval with strong endorsement from leading medical societies, such as the American Venous Forum (AVF), for the use of existing reimbursement codes significantly bolsters our U.S. expansion strategy,” Tetro said. “As the sole standalone company in the U.S. market with FDA approval for our novel non-thermal treatment, we are uniquely positioned.”

The copper and gold mining project developed by the Canadian mining company Euro Sun Mining in the Rovina area in Hunedoara County, just shortlisted by the European Commission under the Critical Raw Material Act (CRMA), lost its environmental permit last year, and Hungary’s consent is needed for getting a new one, according to Profit.ro.

The permitting process for the shortlisted extraction projects will not exceed 27 months under CRMA – but this will pose challenges in the case of the Rovina project.

The project envisages the deforestation of 200 hectares and will spread over 698.33 hectares, impacting the surface and deep waters, leading to a possible significant effect on the environment of another state, according to the environmental NGO Declic, which challenged in court the permit.

The EC adopted on March 25 a list of 47 Strategic Projects under the Critical Raw Material Act (CRMA), among which three projects are to be developed in Romania by Euro Sun Mining (Canada), Salrom (Romania, state-owned), and Verde Magnesium (backed by US private equity investor Amerocap), to boost domestic strategic raw material capacities.

The Rovina project, developed by the local company Samax Romania, controlled by Euro Sun Mining, a company listed on the Toronto Stock Exchange, had obtained environmental approval in 2022, but the administrative act was challenged in court by the Declic, an NGO with environmental protection activities. Last spring, the Cluj Court of Appeal decided definitively to cancel the environmental permit.

The Rovina project covers an area of ​​approximately 27.7 square kilometers and comprises three different deposits, Rovina, Colnic, and Cireșata, which would be exploited in several phases over a period of roughly 17 years. 

The final feasibility study projects an average gold equivalent production of 146,000 ounces (4.5 tonnes)/year over the first ten years, consisting of 106,000 ounces (3.3 tonnes) of gold and 19 million pounds (9,000 tonnes) of copper per year, at an average total cost of USD 790 per gold equivalent ounce. 

iulian@romania-insider.com

(Photo source: Mariodeambrogiomd/Dreamstime.com)

Let’s talk about money. Like it has in many past elections, money and the economy have become a focal point. And party leaders are facing scrutiny when it comes to their own portfolios business dealings past or present. 

Many readers have asked CBC for more clarity on the different financial terms leaders have argued over — from investments, to assets, tax cuts, tax havens and blind trusts.

Liberal Leader Mark Carney has gotten a lot of questions about his assets and investments. Think stocks, mutual funds, real estate and businesses, basically whatever he either owns or has put money into with the intention of making more money.

Ahead of calling the election, Carney announced he had placed all of his assets other than cash and real estate into a blind trust.

Carney has also faced questions about reports that two investment funds he co-chaired while at Brookfield Asset Management were registered in Bermuda, a tax haven that benefits investors by avoiding some Canadian taxes, according to information obtained by Radio-Canada.

• What issue matters the most to you this federal election, and why? Share your personal stories with us at ask@cbc.ca.

Investments, assets, blind trusts, tax-free savings accounts and potential conflicts of interest are weaving themselves into this campaign in sometimes confusing ways. So let’s break it down.

Investment and assets

Conservatives, including the party’s leader Pierre Poilievre and ethics critic Michael Barrett have criticized Carney’s role in those Brookfield investment funds and called on him to publicly disclose all of his holdings before they were put into the blind trust.

Under the current government ethics rules meant to guard against conflicts of interest, Carney had 60 days to disclose his assets to the ethics commissioner upon being sworn in and another 60 days before that information goes public.

Poilievre said both these issues are proof Carney wants “Canadians to blindly trust him” and that he was “dodging the same high taxes Liberals make Canadians pay.”

So what about Poilievre? The Conservative leader said Thursday he recently “brought [his] investments home after Trump began threatening the country,” and that he now only invests in Canadian stocks and companies. 

Poilievre has publicly disclosed his holdings before and after that move. Before, they were spread across the U.S., Europe and Asia and also included bitcoin. Now, they’re focused around an index fund whose top asset happens to be Carney’s old employer, Brookfield. 

The fund that oversees these Canadian investments, Vanguard FTSE Canada Index ETF, is listed on the Toronto Stock Exchange. But it is managed by Vanguard Group, an asset-management company based in the U.S. 

WATCH | Carney grilled over previous role overseeing funds worth $25B in tax haven 

Carney grilled over previous role overseeing funds worth $25B in tax haven

1 day ago

Duration 1:58

Liberal Leader Mark Carney faced more questions about his time at Brookfield Asset Management, overseeing two green investment funds registered in the offshore tax haven of Bermuda. Carney’s political opponents are using the issue to paint him as an out-of-touch friend of billionaires.

TFSAs

The nature of that ETF may seem a small detail, but it could present a quagmire next to Poilievre’s recent policy proposal to raise the amount Canadians can contribute to tax-free savings accounts (TFSAs) — with a caveat that the cash must be invested in Canadian companies. 

First, let’s look at what TFSAs are. A TFSA is an investment account managed through a brokerage, bank or financial advisor that is not taxed, even when withdrawn. There’s a limit to how much Canadians can contribute each year, which is set by the government.

The Stephen Harper government introduced TFSAs in 2009, eventually raising the annual contribution limit to $10,000. But the Justin Trudeau government brought it down to $5,000, then tied it to inflation. The contribution limit for this year is $7,000.

The money invested in a TFSA can grow tax-free, and can be invested in stocks, bonds, mutual funds and exchange-traded funds. Unlike a registered retirement savings plan (RRSP) account, you don’t owe the government anything when you withdraw the money.

It’s currently unclear how Poilievre’s proposed top-up will work. If elected, a Conservative government would have to define which companies the user invests their money into as Canadian, given how many hold assets abroad.

Blind trusts and conflicts of interest

Let’s dive back into blind trusts, and how they’re supposed to shield elected officials from conflicts of interest.

Carney has a 60-day window to disclose his finances to the ethics commissioner. That clock started ticking once he was sworn in as prime minister on March 14.

Within 120 days of taking office, a cabinet minister or parliamentary secretary has to divest controlled assets by selling them or putting them into a blind trust. At that time, their financial assets become publicly viewable.

According to the Conflict of Interest Act, the official must appoint a trustee to look after their blind trust. That person must be approved by the ethics commissioner.

That trustee cannot be a friend, family member or business partner, for example. They take full control of those assets and can provide general income reports for tax reasons, but not updates on specific investments.

Poilievre doesn’t have to put his assets in a blind trust because he is not a member of cabinet.

Political rivals — and CBC readers — have questioned whether Carney could be in a position to make decisions that would benefit his holdings, even if they’re in a blind trust.

According to Brookfield’s latest financial filings, the Liberal leader held stock options worth $6.8 million at the end of December. Stock options allow the holder to buy and sell shares in a company at an agreed-upon price.

Ian Stedman, a lawyer and associate professor who specializes in government ethics at York University’s School of Public Policy and Administration, says a blind trust isn’t “a perfect conflict of interest avoider” but it’s one of the best tools available. 

Carney has said he’s also set up “screens,” which include disclosing potential conflicts of interest to an administrator and agreeing to abstain from any discussions, decisions, debate or votes on the subject.

The Liberal leader has defended his time in private and central banking, saying it has made him an astute negotiator and policy planner.