ECO-BUS WEEKLY DIGEST 7 December 13. Most important Economy & Business news by IPN
● MONDAY, December 7
Termoelectrica successfully completes program to modernize infrastructure
Termoelectrica has successfully implemented the program to modernize and rehabilitate the infrastructure that was planned for 2020. This will enable to more efficiently provide heating services for consumers during the cold period of the year, the company said in a press release. The investments this year amounted to 682 million lei and were made in electricity and heat production in a cogeneration regime and in the supply of heat and hot water. The largest part of the resources went to extensively repair 50 sections of heat pipes with a total length of 15 km and the thermal insulation of over 8.5 km of overground heat pipes – 230 million lei. A sum of 380 million lei was allocated for rehabilitating and maintaining heating equipment at production sources. Termoelectrica director general Veaceslav Eni said the company in the course of this year initiated new projects, provided the consumers with new communication channels, offered reliable energy solutions that will lead to the diminution of costs and continued to supply the country with electrical energy produced at home and with heat for the about 500,000 consumers in Chisinau.
Restrictions for public eating places at filling stations and airports
After the authorities on November 30 decided that the restaurants, bars and cafés could work until 10pm, restrictions were also introduced for public eating places situated at filling stations, shopping centers, airports, international ports and international border crossing points. These will also be unable to work between 10pm and 7am. Decision No. 36 taken by the National Extraordinary Public Health Commission on December 4 provides that the public authorities will organize a special working regime for employees from 7:30pm until 4pm, with a lunch break of 30 minutes.
Ex-managers of three insolvent banks arrested. Three of them hospitalized
Six persons, among who are former managers of the three insolvent banks – Banca de Economii, Unibank and Banca Socială – were officially charged on two counts. The “representatives of the Shor holding” were also indicted, the Prosecutor General’s Office has said. The six persons were arrested last Friday on suspicion of involvement in the robbing of the baking system. The prosecutors charged them with large-scale swindle and money laundering in the interests of a criminal organization. Last Saturday and Sunday, after long hearings in which the lawyers for the accused asked for replacement of judges and for postponements, the judges accepted prosecutors’ requests, ordering to place five suspects under arrest for 30 days. When being questioned by prosecutors, four of them made use of their right not to make statements.
EBRD and NBM promote swap line to help meet demand for leu financing
Moldovan companies can now benefit from loans denominated in the local currency, leu, provided by the European Bank for Reconstruction and Development (EBRD) and its partner financial institutions thanks to an agreement with the National Bank of Moldova (NBM), quoting a press release of the NBM. The EBRD has secured reliable access to leu liquidity in the form of swap transactions up to a total of US$ 30 million and will continue local currency lending to companies to help them mitigate risks related to currency exchange. The agreement comes after the EBRD implemented similar mechanisms in Ukraine, Georgia and Azerbaijan. Now the NBM and EBRD identified acceptable conditions for implementing the project in Moldova too.
Labor supply in Moldova remains vulnerable to economic crises, study
During the past five years, the population’s activities have been profoundly influenced by such phenomena as aging, external migration and structural problems of the supply in the national economy. With the diminution of the population, the employment rate among the economically active population declined. The gradual diminution of the employment rate affects the development dynamics of the national labor market, says a study of the labor market in the Republic of Moldova that was presented by the Association for Democracy Development “DECID”. In a news conference, Mariana Yatsko, study author, said the study centers on the main characteristics of the labor market in 2015-2020. There are mentioned the challenges and policy directions aimed at ensuring integration in line with the requirements. It was determined that the labor supply in Moldova continues to be vulnerable to economic crises. “During the economic crises, if we speak about 2008-2009, the unemployment rate rose significantly, to over 6%, with decline tendencies during the next years. At first sight, there are general positive dynamics on the labor market, with the unemployment rate being under 4% in 2019. However, owing to the pandemic since this March, the necessity of more profound and complex analysis of the unemployment situation on the labor market appeared,” explained the author.
Financial autonomy of local public authorities is limited, study
The financial autonomy of the local public authorities (LPAs) in the Republic of Moldova is limited. Financial centralization manifested through the restraining of own revenues expanded, said the public association Association for Democracy Development “DECID” that presented a study of administrative and financial decentralization. According to the authors, well-projected and implemented fiscal de-centralization, including the distribution of expenditure responsibilities, allocation of income resources for the local public authorities and intergovernmental fiscal transfers, can support the reduction of poverty. At the same time, a badly conceived de-centralization program can be harmful to the poverty combating objective. In a news conference, Angela Secrieru, one of the study authors, said that financial de-centralization is important for the Republic of Moldova. International experience suggests that when the fiscal decentralization level is considered low, the central authorities, in cooperation with the local authorities, should identify means for increasing the own fiscal revenues of LPAs and transferred local revenues by a permanent law, without necessarily increasing total fiscal pressure.
● TUESDAY, December 8
Moldova, Japan to sign new grant agreement by exchange of notes
Moldova and Japan in the course of this month will sign by exchange of notes a new grant agreement aimed at supporting the national health system. The Japanese side’s readiness to sign a new agreement was stated by Japan’s Ambassador in Chisinau Katayama Yoshihiro in a meeting with Minister of Foreign Affairs and European Integration Aureliu Ciocoi. In the meeting, the diplomats also discussed current aspects of the Moldova-Japanese relations, new objectives in the bilateral cooperation and the agenda of priority events between the two sides, it is said in a press release issued by the Ministry of Foreign Affairs. Aureliu Ciocoi expressed his gratitude for the assistance provided by the Government of Japan through the agency of programs of official development assistance offered to the Republic of Moldova in a bid to contribute to the country’s economic and social modernization. He welcomed the organization of the first meeting of the parliamentary friendship group and the Moldovan-Japanese business forum.
Legal action taken over attempt to dispossess state of building of Consulate in Odessa
The prosecutors instituted criminal proceedings for abuse of power in the attempt to dispossess the Republic of Moldova of the building of the Consulate situated in Odessa, Ukraine. It was determined that on February 27, 2019, there was adopted a Government decision on the transfer of a publicly owned building under the private ownership of the state, with an exchange contract being signed. The Prosecutor General’s Office said that in the absence of an anticorruption assessment and without evaluating the cost of the building offered instead, it was accepted the proposal of the working group set up by order No. 36/2018 of the Prime Minister (Pavel Filip, e.n.) to exchange the building located at 2/2Б Postmitnogo St in Odessa, which was managed by the Ministry of Foreign Affairs and European Integration, for the following privately owned property – a lot that is 0.0397 ha and the residential building that is 402.2 m2 in area, with annexes, situated at 6/4-A Tinysta St in Odessa.
Carriers demand to amend fiscal policy, threaten with general strike
The Road Transport Employers Association demanded to urgently modify the budgetary-fiscal policy by introducing instruments for stimulating the road passenger transportation sector from financial and fiscal viewpoints. The Association sent a letter to the senior state administration, the parliamentary commissions and groups. The carriers also demand to adopt administrative measures to terminate the public-private partnership contract for the use of the property of state-owned bus terminals, to stop the abuses of fiscal bodies and to enforce the law norms by which the terminals renting business is protected. On December 3, the Council of the Road Transport Employers Association decided that the ignoring of these demands will lead to a general strike of carriers. The letter says that the passenger transport operators found themselves in a serious situation owing to chronic problems that have been ignored by the authorities during many years. The consequences of these were amplified by the COVID-19 pandemic. The transport sector continues to be managed artificially, in the absence of a central specialized body in the field of transport and infrastructure.
Entrepreneur’s governmental portal launched
The entrepreneur’s governmental portal presented today is designed, as the citizen’s portal, to bring comprehensive information about an economic agent closer to this, offering also related actions and data presented in blocks and enabling business entities to react to these. The presentation was made by Iurie Ţurcan, director of the e-Government Agency, in the launch. Iurie Ţurcan said that new blocks of data will be added the next few weeks after collecting information from citizens, who are invited to take part in public consultations. “We intend to add fiscal information and to make a connection with the Taxpayer’s Cabinet of the Tax Service so that general information about particular tax debts, tax overpayments or delays could be seen on this portal of the entrepreneur, while details will be available in the Taxpayer’s Cabinet,” stated Iurie Ţurcan, noting they also aim to make possible the downloading of information from the portal, signed electronically, with legal power.
PPPDA submits amendments to draft budgetary-fiscal policy
The MPs of the Party “Dignity and Truth Platform” (PPPDA) proposed a series of amendments to the draft budgetary-fiscal policy that was adopted by the MPs of the Party of Socialists and of the For Moldova platform, which includes the MPs of the Shor Party, on December 3. The PPPDA MPs demand to keep the personal exemptions for husbands/wives who do not work and not to allow to drastically increase the fines for entrepreneurs and the VAT rate for agricultural products. They ask that the draft should stipulate tax concessions for SMEs and should not cap local taxes, should keep the 15% discount on the payment of the property tax and land tax in advance. The MPs suggest not introducing the income tax on the interests of private individuals, not to allow access of unauthorized medicines to the market, not to allow introducing the “cigarette scheme” that would cause damage of 160 million lei to the state in the form of unpaid excise duties, to keep the current fiscal regime for freelancers working in the justice sector, to increase the salaries of teachers who work with children with disabilities and to keep the tax concessions for public associations of persons with disabilities.
After implementation of DCFTA, exports from left side of the Nistru rose essentially, study
After the provisions of the Deep and Comprehensive Free Trade Agreement with the European Union (DCFTA) started to be applied, the export of agricultural products from the left side of the Nistru increased essentially. Supplies of oleaginous seeds and fruit, alcoholic and nonalcoholic drinks have doubled. Exports of goods of the first group rose in monetary value from US$25.8 million in 2016 to US$57.5 million in 2019. Exports of alcoholic drinks increased from US$7.1 million to US$14.8 million. Exports of vegetables also grew significantly, from US$5.1 million in 2016 to US$9 million in 2019, shows a study that was presented in a press club meeting centering on the left side’s potential of exporting to the EU. The study reveals that the vegetal production in the districts from the left side of the Nistru, in relation to the vegetal production in the districts from the right side of the Nistru, of fruit, walnuts, berries, grapes, corn, soybean and potatoes is by 10% lower, of legumes, sunflower - by 20%, of winter wheat - by 30%, of rape and field vegetables - by 50%. However, the production of buckwheat on the left side of the Nistru exceeds the production on the right side ten times.
● Wednesday, December 9
Farmers take agricultural machinery to central Chisinau in protest
The farmers who on December 6 parked their agricultural machines at entrances to the capital city are taking the machinery to the Great National Assembly Square in protest at the budgetary-fiscal policy that is detrimental to farmers and at the lack of measures of support for the drought-stricken farmers. Vasile Myrzenko, executive director of the National Farmers Federation, said the farmers will set off towards central Chisinau at 11am. They are ready to remain in the central square of the capital city until they are heard by the authorities.
Agricultural machinery brought to central Chisinau, farmers determined to stay
About 150 tractors were taken to the Great National Assembly Square of Chisinau on Decembers 9 in protest. The farmers demand that the authorities propose solutions to their problems. They ask for compensations for the second-group grain crops and for amendments to the 2021 budgetary-fiscal policy. The farmers are determined to protest with their machinery downtown until the authorities provide an appropriate response. Vasile Myrzenko, executive director of the National Farmers Federation, said the farmers have to protest owing to the irresponsible attitude to them and the agricultural sector in general. “We have protested since summer and requested the Ministry of Agriculture, Regional Development and Environment, the Government and Parliament to take measures, to supplement the Subsidization Fund, the fund for compensating the losses of farmers who suffered because of the drought. Regrettably, it is the end of the year and we ascertain with indignation that they ignore the fact that there are villages in the Republic of Moldova, agricultural producers who provide jobs for thousands of people. If we now cannot pay salaries to workers, we cannot prepare for the next agricultural season as we cannot clear the debts for this year to suppliers and banks,” stated Vasile Myrzenko.
PSRM suggests postponing introduction of higher VAT rate in agriculture
The MPs of the Party of Socialists (PSRM) propose introducing the VAT rate of 12% on agricultural products, up from the current rate of 8%, not from January 1, as the draft budgetary-fiscal policy for 2021 provides, but from July 1, 2021. The keeping of the VAT rate of 8% on primary agricultural production is one of the demands of the farmers who are protesting in central Chisinau. The PSRM registered an amendment to this effect to the bill that was given a first reading on December 3. In the current variant, the bill provides that the VAT rate in agriculture will be raised from 8% to 12%, while on fertilizers will be decreased from 20% to 12% as from January 1, 2021. Socialist MP Petru Burduja, deputy chairman of the Parliament’s commission on economy, budget and finance, in a press briefing said the revision of the current VAT regime applied to primary agricultural production is aimed at developing and enhancing the competiveness of national producers. The introduction of this measure on January 1, 2021 will create economic problems to farmers who didn’t manage to sell the whole crop of this year and who bought fertilizers at the current VAT rate.
Procedure for authorizing regular and irregular domestic flights agreed
The Cabinet approved the procedure for authorizing regular and irregular domestic flights that is stipulated in the regulations concerning the authorization of flights and the use of the national airspace by civil and state aircraft. The procedure for authorizing regular and irregular domestic flights until now has been specified only by the civil aeronautics regulations proposed by the State Civil Aviation Administration. The new regulations stipulate the method of authorizing regular and irregular commercial flights and the issuing of authorizations for regular and irregular flights to national or international air operators in accordance with the international practice.
Farmers interrupt protest until next Tuesday
The farmers who protested in the Great National Assembly Square of Chisinau on Decembers 9 decided to return home. They said that if they do not have an appropriate response until next Monday, 10am, they will return to central Chisinau in a larger number. The protesters noted that as a result of discussions with representatives of the Parliament’s commission on agriculture and food industry, they were assured that effort will be made to identify funds for paying compensations of 3,000 lei/ha to them and to keep the VAT rate at 8%. Vasile Myrzenko, executive director of the National Farmers Federation, thanked the participants in the protest and the police officers who maintained public order. He said the farmers took to the streets not to beg, but to seek justice. “We do not want more than we deserve,” stated Vasile Myrzenko. “The tractors are our tanks. With them we will fight against corruption in this country.”
13 trading places in Chisinau auctioned for almost 32m lei
Thirteen street trading places in Chisinau to the total value of almost 31.8 million lei, of the 15 proposed, were distributed in the second open auction. The contract for the use of a place is valid for five years. Most of the trading places were assigned for an average price of 2.5 million lei. These are situated in parks and green areas, near lakes and in other places in the districts of the capital city. In the first auction held on December 2, 11 trading places of the 15 available were allotted for over 20 million lei. The third auction will take place in the Centru district head’s office located at 43 Bulgară St on January 15, 2021, starting at 10am.
Monetary policy decision: base rate and operations remain at current level
The base rate on the main short-term monetary policy operations remains at the level of 2.65% a year. The interest rate on overnight loans is maintained at 5.15% annually, while that on overnight deposits at 0.15% annually. The monetary policy decision was adopted by the Executive Board of the National Bank of Moldova on December 9. “The decision reflects the continuity in creating monetary conditions for supporting the national economy. The decision was taken in a bid to ensure the inflation remains in the variation interval of ±1.5 percentage points from the inflation target of 5% in the medium term. The risk of deviation from the forecast inflation and the periodicity of propagation of impulses of the monetary policy adopted earlier were also taken into account,” the governor of the NBM Octavian Armașu told a news conference, noting this is the last monetary policy decision this year.
● TUESDAY, December 10
Profit in banking system on the wane
The banking sector during the first nine months of this year witnessed increases in assets, loans, own funds, deposits of private individuals and legal entities. According to the National Bank of Moldova, the level of liquidity in the sector is high. At the same time, the quality of the loan portfolio worsened insignificantly, while the profit made in the period declined compared with the corresponding period last year. On September 30, the profit in the banking system came to 1.151,3 billion, decreasing by 35% on the same period last year. The decline was mainly due to the 29.5% rise in costs that are not related to interest, primarily due to the larger depreciation of the financial assets. The costs related to interests diminished by 1.9%. The returns that are not related to interest rose by 11.4%., while those from interest decreased by 2.87% following the reduction in the average rate on loans in national currency from 8.07 % on September 30, 2019 to 7.68% on September 30, 2020, and in currency from 5.21% to 4.91%. The total revenues came to 5.6 billion lei, up 2.8% or 152.6 million lei compared with the corresponding period last year.
Rise in retirement age can lead to failure of pension system, economist
The budget does not have financial resources for putting into practice the Socialist MPs’ legislative proposal to reduce retirement age to 57 for women and to 62 for men. The implementation of this proposal can lead to the failure of the pension system, Stas Madan, senior economist of the independent think tank “Expert-Grup”. According to the economist, another reaction to such a law is that the state during many years to come will not have fiscal space for increasing pensions. At the same time, the social insurance contributions will inevitably rise and this is increased pressure on the business community. This will happened even if the pensions are kept at the current level as the extension of the number of budget-funded employees will imply a significant budgetary effort. Stas Madan said the pandemic amplifies the unsustainability of this proposal. This is unsustainable from financial-budgetary viewpoint even in conditions of normal economic activity, not to mention the pandemic conditions.
● FRIDAY, December 11
NBM recommends banks not to pay dividends
The National Bank of Moldova (NBM) recommends the licensed banks to refrain from distributing dividends to shareholders and from redeeming own funds instruments until the audit companies present the audited financial situations for the end of 2020. In a press release, the NBM said the decision was taken in a move to ensure the stability and viability of the licensed banks in connection with the negative effects of the COVID-19 pandemic and the forecasts that the pandemic will yet spread.
PAS MPs suggest amendments to budgetary-fiscal policy
The MPs of the Party of Action and Solidarity (PAS) proposed a number of amendments to the state budget and budgetary-fiscal policy for 2021 that were given a first reading. Among these is the introduction of a zero tax on reinvested profit for micro-enterprises with up to nine employees. According to the MPs, such a measure will help the most vulnerable business entities and will stimulate employers to keep the employee and to invest in business. In a news conference, MP Radu Marian said that almost half of the enterprises in the crisis period reported twice lower sales revenue. “I want everyone to understand that each saved business means more intense consumption, an economy that remains afloat, more money collected into the budget for schools, roads or pensions. This measure will benefit 50,000 companies, active enterprises. The costs for the state budget are not so high – approximately 15-20 million lei, while the benefits for these enterprises are very important,” explained the MP.
PPPDA proposes amendments to draft budgets
The draft budgets for next year that were adopted in the first reading contain doubtful costs, as the Party “Dignity and Truth Platform” (PPPDA) considers. The party demands to reduce these costs given the current pandemic crisis and proposes a number of amendments. MP Alexandru Slusari in a press briefing said that the costs for the Ministry of Home Affairs for 2021 are to be increased by 226 million lei, for the Ministry of Justice – by 204 million, for the Ministry of Defense – by 155 million lei, for the SIS – by 45 million lei, etc. Many of these costs are not justified and should be reviewed. The allocation of 76 million lei for the National Arena and of 11 million lei for setting up embassies in Belarus and Turkey and the consulate in Ukraine are also unjustified. The PPPDA suggests increasing the agriculture subsidization fund for supporting the farmers who cultivate second-group grain crops by 800 million lei.
Fluctuation of exchange rate, what it depends on and what we should know about it. IPN debate
The fluctuation of the exchange rate in the period is a reason for concern for many people. This year it comes together with health, social, economic and political concerns that are more pronounced that in other periods. Experts invited to public debate “Fluctuation of exchange rate, what it depends on and what we should know about it” discussed why this phenomenon happens and what should be known and done to diminish these concerns. Igor Boțan, the standing experts of project, said the financial problems are solved by the National Bank of Moldova (NBM) whose key objective is to ensure and maintain the stability of price. “If we take this objective into account, we understand how the NBM acts when it sets the exchange rate. The exchange rate is set based on the supply and demand on the market. But we should first give the definition – the exchange rate is the price of a currency of a country expressed in monetary units of another country,” stated the expert, noting there are several exchange rates applied by the NBM – the reference exchange rate that is set daily and the market exchange rate that is formed at interbank level. According to him, there are many factors that influence the exchange rate. These are internal economic factors related to the volume of production, labor productivity, quality of goods, purchasing power, etc. These factors have great inertia, but often generate sudden fluctuations.
Veaceslav Negruța: Trend on currency market is also related to winter holidays
Veaceslav Negruța, economic expert of Transparency International Moldova, noted that the inversion of the trend witnessed recently on the currency market, as regards the euro and the dollar, is related to the winter holidays. In public debate “Fluctuation of exchange rate, what it depends on and what we should know about it?”, the ex-minister of finance said this tendency that is different from that of the last two months will persist at least until January 10, but afterward will most probably return to the previous state. The expert of TI-Moldova said the currency segment should not be separated from a general macro-financial context. As a result of the COVID-19 pandemic and the drought, serious deformations in the economy appeared and the financial resources are reoriented to other priorities. Therefore, it will be hard to stage a return. A plan of anti-crisis and financial stabilization measures is needed, including in the public finance sector. This would give more predictability to the subsequent measures of the NBM in its monetary policies and in its interventions on the currency market. The plan should be worked out as a result of broad discussions and should facilitate the process of taking appropriate decisions, including for the currency market, and reduce the eventual nervousness of the population. In another development, Veaceslav Negruța said the state of the economy is the first indicator that determines the price of a foreign currency in the Republic of Moldova. Respectively, the decisive factor is the export of goods and services produced in Moldova, which later offers the necessary quantity of currency on the domestic market.
Igor Boțan: Objective factors influence exchange rate, not politicians’ wishes
As long as the National Bank of Moldova (NBM) has the freedom to fulfill its duties, in accordance with the law, objective factors influence the exchange rate, not the wishes of politicians who, before the elections, want to make presents to the citizens or to transform the country into an industrial building site, expert Igor Boțan said, commenting on political statements that the exchange rate should have been modified in favor of particular economic groups. The expert developed the issue in public debate “Fluctuation of exchange rate, what it depends on and what we should know about it?” Igor Boțan considers the given statements were an attempt to see the reactions of representatives of international financial institutions and the National Bank, which actually appeared without delay. Afterward, things returned to normality. The message that the National Bank should remain an independent institution has considerable influence. “We saw all these things. They persisted and were overcome and things are now more or less normal, but this normality framework has its own margin of fluctuation,” stated the expert. According to Igor Boțan, as long as the National Bank of Moldova is independent, with a relatively developed legislation, Moldova’s economy is an open one. “So, the situation should be regarded as a cyber-system, which is all the factors that influence the economy and, respectively, the people’s interests should be taken into account,” he said, noting he does not think the currency exchange facilities act as they want as the exchange rate is set by the NBM.
About 90% of state-owned companies witness declines in revenues owing to COVID-19
The pandemic crisis seriously affected the state-owned companies in Moldova. Almost 90% of these report declines in revenues and, consequently, almost 50% of them witness higher indebtedness, says a study conducted by the Independent Think Tank “Expert-Grup”. According to the study, the COVID-19 crisis affected the state-owned companies at other levels too. Almost 40% of the representatives of these companies said that since March they have witnessed difficulties owing to disruptions in the supply chain or diminution of the demand for products and services, while 11% of the entities were affected by the lower labor productivity. However, 22% of the state-owned companies weren’t affected by the crisis, like those that benefit from support from such state programs as “Good Roads” that could maintain the turnover for the companies operating in this sector, said one of the study authors Dumitru Pîntea.
Veaceslav Ioniță: It is not right to engage NBM in short-term political processes
It is not right to engage the National Bank of Moldova (NBM) in short-term political processes. “The National Bank is in society and it is influenced by what is happening in society, while the politicians, even if they decide to make suggestions, should do this prudently so that this is not seen as interference in the NBM’s activity,” Veaceslav Ioniță, economic expert of the Institute for Development and Social Initiatives “Viitorul”, stated in IPN’s public debate “Fluctuation of exchange rate, what it depends on and what we should know about it?” Veaceslav Ioniță said the exchange rate in the Republic of Moldova is relatively the same because the margin is very small. In times of stability, the difference between the purchase and sale of currency at currency exchange facilities is very small compared with any other country. The margin rises in times of instability when the exchange rate goes up or down. The expert noted that the NBM is an independent institution, but it is not isolated from society and it should hear the signals coming from society. The leu started to depreciate exactly after the political statements according to which the exchange rate should have been modified in favor of particular economic groups, but the fluctuation that followed is not related to politics, but to a decision taken by the NBM.
● SATURDAY, December 12
Firewood is by 3-5% more expensive this year
The price of firewood this year is by 3-5% higher. The average selling price is 730.50 lei/m3 without VAT for hardwood species and 416.79 lei/m3 without VAT for softwood species. Contacted by IPN for details, Nicolae Cojocaru, chief forestry engineer at “Moldsilva” Agency, said the final price includes all the performed works. If the firewood is taken to storehouses, its price increases. It is planned that 541,800 cubic meters of wood will be collected this year and over 430,000 cubic meters of these will be firewood. About 360,000 cubic meters will be hardwood species, while 70,000 cubic meters will be softwood species. The collection process will last for another at least two weeks, stated Nicolae Cojocaru.
Moldova’s external debt at 62% of GDP
The gross external debt of the Republic of Moldova on December 31, 2019 was US$7.416,08 billion, up 1.3% compared with the end of 2018. This is 62% of the Gross Domestic Product, quoting the National Bank of Moldova. The nonfinancial organization accounted for 40.4% of the gross external debt (+0.3 percentage points compared with 2018), the intragroup lending within direct investment for 25.7% (+0.5 percentage points), the public administration for 23.2% (-0.1 percentage points) etc. The public and publicly guaranteed external debt represented 25.9% of the external debt, totaling US$1.919,15 billion. The non-guaranteed pubic debt came to US$5.496,93 billion.
Fuel prices go up
A number of filling stations posted higher fuel prices. The price of gasoline is now by 0.60 lei on average higher, while of liquefied petroleum gas by 0.40 lei higher. Currently, the gasoline coded 95 costs 16.05 lei a liter, diesel fuel – 13.45 lei, while liquefied petroleum gas – 9.32 lei.
Average gross monthly earnings in September at 7,991.3 lei
The average gross monthly earnings of an employee in September were 7,991.3 lei, according to a study presented by the National Bureau of Statistics. According to the study, two thirds of all the salary earners (66.7%) had earnings lower than the average per country (7,991.3 lei). Almost each second employee (47.3%) had a salary lower than 6,000 lei, 31.5% - between 6,000 and 10,000 lei, while 21.2% - over 10,000 lei. The distribution by economic activities shows a concentration of employees with “small salaries” in a number of areas, such as accommodation and public food activities, where almost each second person has a salary lower than 4,000 lei, while each third person has a salary ranging between 4,000 to 6,000 lei.
