ECO-BUS WEEKLY DIGEST August 31- September 6. Most important Economy & Business news by IPN

● WEDNESDAY, September 2

Ion Chicu: Iasi-Ungheni-Chisinau gas pipeline will be used only as alternative source

The Iasi-Ungheni-Chisinau gas pipeline is an alternative for the supply of the Republic of Moldova with gas and will be used only if its utilization will be reasonable from economic viewpoint, Prime Minister Ion Chicu stated. “It was put into operation technically. It is an event on which we should congratulate each other, for having such a gas pipeline. It is an alternative possibility for supplying the Republic of Moldova with gas if problems on the traditional route appear. For now, either we want it or not, this traditional Russia-Ukraine route that enters the Republic of Moldova through the south and through Transnistria is the most reasonable one from economic viewpoint,” said Ion Chicu. However, the Premier does not rule out that the gas coming from Romania in the nearest future could be cheaper than the one supplied by the Russian Federation.

Nonbank payment service provider fined 33,000 lei

A nonbank payment service provider was warned and fined after committing a number of violations. The decision to penalize the provider was taken by the Executive Board of the National Bank of Moldova. The nonbank payment service provider violated provisions of the law on payment services and digital currency and regulations of the central bank. The violations include the non-protection of funds received from users of payment services, non-inclusion of the payment agent in the register of companies that issue digital currency and non-informing of the central bank about the modification of data in the documents presented when registering agents.

● THURSDAY, September 3

MP to notify PGO of purported illegalities at Micăuți quarry

MP Lilian Carp intends to notify the Prosecutor General’s Office (PGO) of the alleged illegalities committed at the Micăuți quarry. According to him, the extraction of mineral resources takes place in breach of the law and the ecological norms. Locals complained that the works performed there cause ecological problems and create unbearable living conditions. “The extraction of mineral deposits without changing the purpose of farmland and without compensating for the losses sustained by removing the land from the agricultural circuit, the lack of coordinated and approved technical projects, of technological plans and plans to develop extraction works and projects to cultivate the land became a norm for the Micăuți quarry, which extracted and continues to extract deposits from land that is owned by the local public authorities of Micăuți commune,” the MP stated in a press briefing.

NBM’s official reserve assets go up

The official reserve assets of the National Bank of Moldova (NBM) at end-August were US$3.391,02 billion, an increase of US$ 105.51 million compared with end-July, when these came to US$3.285,51 billion. According to the NBM, the increase in the official reserve assets was due to the net inflows related to the foreign currency reserve requirements for licensed banks - US$62.64 million, as well as to the net interventions on the domestic currency market in the form of currency purchases - US$46.00 million. Other factors included the registration of loans and grants in favor of the Ministry of Finance for investment projects - US$12.37 million.

Marian Pocaznoi named vice director of ANRCETI

Marian Pocaznoi was appointed as vice director of the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) for a new term in office, by a Government decision approved on September 3. Under the decision, Marian Pocaznoi will hold the post for a four-year term as of September 17.

Government approves changes to state budget law

The Government approved amendments to the 2020 state budget law. The revenues were reduced by 649.5 million lei to 37.2 billion lei, while the expenditure by 1.8 billion lei to 53.2 billion lei. The budget deficit was set at 15.9 billion, by 1.2 billion less than the deficit approved in July. Prime Minister Ion Chicu said the diminution of the revenues and of the expenditure is due to the economic situation that was seriously affected by the pandemic. Many of the businesses stopped work. At the same time, the costs increased, primarily for helping the healthcare sector, for purchasing medical equipment, for opening new specialized wards in hospitals and, surely, for assisting categories of people who were seriously affected by the pandemic.

● FRIDAY, September 4

Igor Dodon about Russian loan: There is certainty we will get this loan

The first concrete discussions on the agreement for the lending of €200 million by Russia have been held this week. It is projected that the agreement will be negotiated and signed in November, President Igor Dodon stated in the program “President Responds”. “Work on the loan goes on. We were informed by the minister of finance that the first concrete discussions on articles of the agreement have been held this week. I think in October we will end the negotiations on the agreement and could sign it later,” said President Dodon.

German company invests US$5m in Moldova

The German company Magnetec Components SRL, which forms part of the German concern Magnetec-Gesellschaft für Magnettechnologie mbH, started operating at the Balti Free Economic Zone. By now the German company managed to create over 70 jobs in Moldova, investing a total of about US$5 million. In the inaugural event, Minister of Economy and Infrastructure Sergiu Railean said the Republic of Moldova has investment potential that should be realized despite all the challenges. “I’m glad every time a new investor decides to expand the business in the Republic of Moldova. We are making effort to create appropriate conditions for foreign investors and the fact that these choose our country as a destination for business confirms that we are successful,” stated the minister.

● SATURDAY, September 5

Central bank to oversee nonbanking financial system

The National Bank of Moldova will be empowered to supervise the nonbanking financial system. More exactly, the Bank will license, authorize and issue the permit for state registration, will regulate and supervise the activity of insurers, reinsurers and intermediaries in insurance or reinsurance and also of the National Bureau of Motor Insures of the Republic of Moldova, savings and loan associations, credit bureaus and nonbanking lending organizations. This is provided in a bill introduced into Parliament. The Government, which drafted the bill, said the given provisions derive from the need to strengthen the whole financial market and to prevent eventual risks related to the nonbanking financial sector. The regulation mechanism proposed by this bill is widely applied worldwide.

Alexandru Slusari seeks details about Chisinau Arena form prosecutor general

The vice president of the Party “Dignity and Truth Platform” Alexandru Slusari publicly asked that the prosecutor general or his deputy should give a press briefing or should come to Parliament to present detailed information about the “considerable waste of public funds” in the case of the Chisinau Arena. MP Alexandru Slusari said the initial budget costs of €43 million for the project already rose to €48 million and this is not yet the final sum. “No one knows when the facility will be put into operation,” he posted on a social networking site. “I will not calm down until the authors of the scheme involving the National Arena are held criminally accountable. 69 hectares of arable land were withdrawn from the circuit of Stăuceni commune where the people didn’t receive portions as a result of the agrarian reform. Plahotniuc’s Parliament adopted this bill, while Dodon promulgated it. It happened based on a feasibility study conducted badly and with ill intention by order of the Ministry of Economy managed by Gaburici. The Arena was built on 10 hectares, while the other 59 hectares were pledged and possibly re-pledged and Moldova risks losing them at any moment.”