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Kelso Mayor Hosts NRBE Overseer Helland
Impact of Ruzek Titan Development Discussed
Kelso Mayor Kenneth Curtis hosted Dennis Helland, a member of the National Reserve Bank of Eitoan Board of Overseers this morning at a meeting of the Mayor’s Roundtable in the Kotrova Conference Room at Kelso City Hall. The Roundtable, a sounding board for the leading lights of the nation’s financial, technology and manufacturing sectors, most powerful law firms and major trade unions is a tradition started in 1939 by Mayor Jon Romanovich has traditionally been an avenue for voicing the concerns of the nation’s business community, as well as the Kelso public. Today’s address by Mr. Helland was at the request of Mayor Curtis, as well as several concerned members of the City Council. Mr. Curtis was the recent standard bearer of the Socialist Party in the last presidential election. He has cultivated a positive relationship with the Kelso business community.
The visit was planned to allow leaders in the financial sector to further understand the thinking behind yesterday’s launch announcement for Kelso’s Ruzek Titan development project. Eyebrows have been raised about the involvement of foreign capital in the project, particularly among the left in the City Council. The Golden Throne’s Dienbank participation in major projects, particularly those involving higher risk or more complicated ones is not new in Eitoan finance, but usually have not been prominent in high profile deals. In his introductory remarks, Mayor Curtis explained “As mayor, I am excited by the opportunities presented to Kelso by Ruzek Titan. This will help maintain our flagship status in Eitoan business, and indeed, in western Greater Dienstad. I have heard from many Kelsoans about their concerns regarding the Reserve Bank’s decisions about financing, so I was delighted when Mr Helland agreed to address the Roundtable. I expect that we will leave this meeting with a better understanding of that process, and confidence to proceed with Ruzek Titan.” Representatives of several leading businesses had requested a meeting with the Reserve Bank Overseers, and Mr. Helland was dispatched to Kelso to fulfill that request. Among those attending the Roundtable were board of directors members from Kelso Charter Bank, KLE Financial Trust, aerospace giant Spatradev, Barsey Banking and Financial Services Consolidated, and Cygnet Manufacturing. In the NRBE response to the mayor’s request, the Board of Overseers President Bruce Sangui said “I am in receipt or your recent note and am pleased to have Overseer Dennis Helland accept the invitation to address the Roundtable. He is intimately familiar with the details regarding Ruzek Titan financing, and the regulations and guidelines governing high risk and foreign financing of major projects. I believe that he will answer any of your concerns satisfactorily.”
Mr. Helland has been a member of the Board of Overseers for eight years, serving under both the Ben-Joseph and Shrdlu administrations.
The National Reserve Bank's primary function, as defined by the Reserve Bank Act 1989 is to provide "stability in the general level of prices." The Reserve Bank is responsible for independent management of monetary policy to maintain price stability. The degree of price stability is determined through a Policy Target Agreement with the Treasurer. Policy Target Agreements are public documents and so the government cannot secretly change the targets to gain a short term surge in economic growth.
The National Reserve Bank also acts to supervise the Eitoan banking system to ensure that the system remains healthy, however it does not guarantee that a bank will not fail, or face problems. The main device of supervision is the granting and revocation of bank charters. All chartered banks are audited annually. There are 372 chartered banks. All chartered banks operating in Eitoan must issue a quarterly disclosure statement, and the National Reserve Bank supervises these.
The National Reserve Bank monitors foreign involvement in the Eitoan banking system, and overseas transactions in cooperation with the Treasury and Attorney General through the Foreign Financial Practices Task Force.
Mr. Helland served as a liaison between financial institutions and several copanies in the manufacturing sector prior to joining the Board of Overseers. In that liaison capacity he was an employee of Stalnev Motors. A native of Kelso Mr. Helland trained as an attorney, graduating from the law school at Dobrovice Territorial University. He was engaged in private practice, mostly negotiating financing for Stalnev Motors, and was eventually hired in by Stalnev, where he rose to head the financial section of the general counsel’s office. Gaining the confidence of Stalnev’s suppliers, the company then assigned him to represent a consortium of companies to negotiate with major banks. During his tenure at the NRBE he has worked closely with Overseers Dr. Evelyn Ives and Dr. Bohuslav Ryba. He is seen as being moderately conservative on the board, favoring a go-slow approach to reducing rates currently. That appoach has led to criticism of the Reserve Bank by some Socialists and Communists, and a few more liberal leaning Free Democrats.
Mr. Helland said
I want to thank Mayor Curtis and the Roundtable for this opportunity to present the thinking behind the Reserve Bank’s approval of Ruzek Titan financing. I hope this will answer some of the pressing issues, and remain open to followup questions.
We believe the distribution of stock ownership presented yesterday provides a cushion for any inpacts on performance of the Kelso Exchange. As designed, the magnitude of this project and ability of the prinicipals in equity should not present a threat to financial viability of any bank involved. Given the high expectations for the revenue stream, it would be absurd to view any foreign involvement in ownership of shares to be a realistic avenue for any malign intent to harm the Eitoan financial system. The heavy involvement of organizations that can bear the risks inherent in this project should shield smaller investors. We have also taken into consideration the preservation of existing viable residential neighborhoods, as raised both by the mayor and by members of the Dashez from Kelso. The preservation of key neighborhoods is strategic in limiting the scope of this project, and should be a factor in the expected revenue stream for investors.
We have limited the involvement of foreign banks within the Reserve Bank’s guidelines. Approval of this project does not expand the role of any foreign bank beyond our guidelines. The involvement of foreign banks has been determined by the merit of the Ruzek Titan in their evaluation of opportunities in the Eitoan market, and we have a long history of successful involvement with Diebank among others. Our investigation of risk to domestic charter banks is similarly based on the input of those banks. Where our review of their statements indicated an increase above 2.5% in gross impact of loan failure to the banks Charter Stability Index, thier participation in Ruzek Titan was reduced to an acceptable level. The gross impact on corporate credit availability has been analyzed and is expected to have a small upward impact on bank rates in the first half year of construction, but should ease afterward, and the board is condisering that in it’s short term planning.
Regarding foreign influence, as project financing is well within guidelines and participants have been vetted and all have a history of reliable partnership with Eitoan business, we have confidence that this will ot be of concern. All foreign participants are based in friendly countries. Some have expressed concern with a possible skilled labor crunch as construction gets underway. The Reserve Bank, in cooperation with the Attorney General and Department of Foreign Affairs has arranged for a special short term visa program for the qualified skilled trades, applicable to neighboring countries. We are pleased that the Agarese government has responded positively to this initiative. And I emphasize that this will apply to skilled labor, present for a short term period, mostly drawn from neighbors that have some expatriate communities present in Kelso that can help with housing and transportation.
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