ECO-BUS WEEKLY DIGEST January 25-31. Most important Economy & Business news by IPN

● MONDAY, January 25

Parking garage to be built near central market of Chisinau

A parking garage is to be erected in the immediate vicinity of the Central Square of Chisinau. The relevant project was drafted and is to be presented for consultations. “Commercial places for those who sell now in that part of the market will be built on the first floor. The second and third floors will be used as parking places,” deputy mayor of Chisinau Inga Ionesii stated in the ordinary meeting of officials of municipal services. The parking project forms part of the conception to modernize the Central Market. Under the conception, public parking lots will be set up on the streets Armenească, Tighina and Varlaam. The Market’s administration, together with the General Public Transport and Communications Division, prepared an agreement. After this agreement is signed, the project to execute the works on the parking lots will be ordered.

PAS MP suggests eliminating ban on car spare parts

PAS MP Dumitru Alaiba registered a bill that provides for the elimination of the ban on the bringing of car spare parts and accessories into and out of Moldova from the Customs Code. The MP noted that only the import of new parts is now allowed, without clear argumentation. The current conditions favor the monopolies and maintaining of exaggerated prices on the market. On the other hand, these favor smuggling of used spare parts and corruption.“I consider this ban is unjustified. It excessively encourages corruption, creating a space for smuggling. Both in Europe and in the U.S., there are specially created places where damaged vehicles are stored, but many of their parts that are original are in a good state. None of the neighboring countries have such bans as the one imposed in our country by law, while traffic safety, sincerely speaking, does not suffer because of this,” the author said in the informative note to the bill.

● TUESDAY, January 26

Electricity tariffs  decreased

The electricity tariffs were lowered. Household users served by “Premier Energy” SRL, whose installations are connected to low voltage power lines, of 0.4 kV, will pay 1.51 lei/kW, by 0.17 lei less than at present. A decision to this effect was approved by the National Agency for Energy Regulation. The household users served by SA “Furnizarea Energiei Electrice Nord” will pay 2.04 lei/kWh, by 0.1 lei less than the current tariff. The decision takes effect on February 1, 2021.

Moldova’s properties on Ukraine’s territory should be inventoried, hearings

The secretary of state at the Ministry of Foreign Affairs and European Integrations Dumitru Socolan said Moldova’s assets and properties situated on the territory of Ukraine should be inventoried and a professional team of lawyers should be hired to defend the country’s interests at the highest level. According to the information provided by the Public Property Agency, protocols to recognize Moldova’s ownership rights over 47 properties situated in the neighboring country were signed in 2002-2006. Later, the process was stopped owing to a number of problems and was resumed in 2011, when it was agreed to recognize “altogether” the ownership rights of one side over properties situated on the territory of the other side. Now, 25 properties of those agreed then are not recognized by Ukraine, while 20 properties were registered as Moldova’s assets in the neighboring country.

● WEDNESDAY, January 27

Depreciation of leu against euro derives from developments on international markets, expert

The euro during the past three months has appreciated slowly, but steadily against the Moldovan leu. At the start of last September, one euro cost 19.67 lei, while on January 25 this year it reached a high of 21.29 lei. Today, January 27, one euro is sold for 21.09 lei. Economist Alexandru Fala, programs director at the Independent Think Tank “Expert Grup”, has told that the depreciation of the leu against the euro derives from the developments on international markets and Moldova cannot influence the situation. “The euro has appreciated significantly on the international markets, especially against the dollar, and this thing automatically leads to the appreciation of the euro against the leu,” stated Alexandru Fala. The expert said the depreciation of the leu favors those who have revenues in euros, but disfavors the persons who perform transactions in euros on the market in Moldova, for purchasing real estate, cars, etc. The main risk of the depreciation of the national currency is related to the rise in prices. The imported goods grow more expensive as one must pay more lei for them. However, given the global economic recession, which determined a rather serious decline in prices worldwide, the Moldovans will not seriously feel the depreciation of the national currency.

● THURSDAY, January 28

Credit debts of Moldova’s Railways at 459.4m lei, PSRM seeks inquiry

The Party of Socialists suggests creating a commission of inquiry into the economic-financial situation at the state-run enterprise Moldova’s Railways that at the end of last year had a credit debt of 459.4 million. The salary arrears, partially for last October and November, totalled 35.5 million lei.The party noted that 275.7 million lei of the credit debt of 459.4 million lei represented the loan taken out based on the contract for purchasing diesel locomotives. Of the salary arrears of 35.5 million lei, 26.9 million lei constituted overdue contributions to the social insurance and health insurance budgets, while 5.5 million lei were debts to the budget. “The critical financial situation at ÎS “Calea Ferată din Moldova” is the result of the inefficient management during the previous periods, aggravated by the accentuated decline in the volume of freight and passenger traffic due to the impact of the COVID-19 pandemic on the economic situation in the Republic of Moldova and the neighboring countries. Therefore, we propose constituting a commission of inquiry,” said the Socialist MPs.

Situation at Moldova’s Railways is more serious than expected, MP

The deputy head of the Party “Dignity and Truth Platform”, MP Alexandru Slusari said the real situation at the state-owned enterprise Moldova’s Railways is more serious than it was expected. According to him, this was ascertained by the members of the Parliament’s commission on economy, budget and finance, who questioned the managers of the Public Property Agency and of Moldova’s Railways. “I didn’t receive a plausible response from the PPA to the question why the company during 14 months has been managed by an acting director, a faculty mate of Dodon, without experience in the field, assisted by a Socialist municipal councilor and a relative of Igor Dodon,” stated the MP. According to Alexandru Slusari, this strategic enterprise’s debts total 459 million lei, 69 million of which, not 35 million lei as it was rumored, being salary arrears.

● FRIDAY, January 29

CC asked to pronounce on right to receive salary at least equal to minimum subsistence level

The parliamentary group of the Party of Action and Solidarity (PAS) requested the Constitutional Court to pronounce on the citizens’ right to receive a salary at least equal to the minimum subsistence level. Also, the PAS MPs intend to introduce a bill to raise the minimum salary. The MP noted that most of these salary earners work for state institutions, doing essential work as cooks, drivers, keepers, etc. For their work, they are paid gross salaries lower than 2,235 lei. hus, an hour of work done by these people costs less than 12 lei.

Six areas assigned at auction to provide tenancy right

Six nonresidential areas of the 22 put up for auction by the Chisinau City Hall will be rented for a period of five years. The value of the transitions is of 256,000 lei. The spaces are between 3.5 and 302.6 square meters in area and their initial price varied between 1,500 lei and 500,000 lei. The remaining areas will be auctioned again later. The first auction of the kind this year was held on January 29. The decision to provide the tenancy right over nonresidential areas that are the property of the Chisinau City Hall was taken in 2017.

Base rate on main monetary policy operations remains 2.65%

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 January 29.  The mandatory reserves attracted in Moldovan lei and in non-convertible currency were kept at 32% of the calculation basis, while the mandatory reserves attracted in freely convertible currency at 30% of the calculation basis. The NBM said the decision was taken in order to maintain favorable monetary conditions for supporting domestic demand, lending and economic activity.

● SATURDAY, January 30

Milk and egg production down last year

The milk and egg production in 2010 declined by 12.4% and, respectively, 6.6% as a result of the decrease in production at agricultural enterprises and also at private households. According to the National Bureau of Statistics, the total agricultural output in 2020 represented 72.9% on 2019, according to preliminary estimates. The decline in the total production was due to the 35.9% decline in vegetal production, which determined a 26.1% reduction in the general index of the total agricultural output, and the 3.8% decrease (-1%) in animal production. The vegetal production in 2020 represented 64% of the total production, as opposed to 73% in 2019, while the animal production constituted 36%, as against 27% in 2019.