ECO-BUS WEEKLY DIGEST February 22-28. Most important Economy & Business news by IPN

● MONDAY, February 22

COVID-19 crisis could widen gender pay gap, NGO

The COVID-19 crisis risks turning the pay gap between women and men into a precipice. The pressure to withdraw from the labor market increases as a result of the inability to combine the professional duties with childcare responsibilities. As primary effects of the pandemic crisis and the restrictions imposed by the authorities during the quarantine period, the women became less active on the labor market, worked fewer hours or started to work remotely. These aspects had a negative impact on the remuneration, the pay gap between women and men becoming even wider. In the absence of polices and measures to simulate employment and the return to work among women, the pay gap risks widening considerably in time. In a press release, the Partnership for Development Center says the difference between the salaries of men and women in the Republic of Moldova has followed a negative trend during the past eight years. The discrepancy between the average salary of men and that of women rises constantly, being now of 14.1%.  The annual financial losses of women came to over 17,000 lei in 2020.

Moldovan leu in January depreciated by 0.2% against U.S. dollar

The Moldovan leu depreciated by 0.2% against the U.S. dollar in average values the previous month, from 17.2567 USD/MDL last December to 17.2916 USD/MDL. According to the National Bank of Moldova, the degree of covering the net demand of currency from business entities with the net supply of currency from private individuals in January 2021 was 93.7%, as against 105.6% in December 2020. Compared with a month ago, the net supply of currency from private individuals declined by US$75.2 million (-30%), while the net demand of currency from business entities decreased by US$49.9 million (-21%). The National Bank made net purchases in the amount of US$1.5 million from the local interbank market given the surplus of currency witnessed during the last decade of January.

● WEDNESDAY, February 24

Employers from hospitality industry seek moratorium on inspections

The employers from the hospitality industry (hotels, restaurants and cafes) asked for a moratorium on inspections, for technical unemployment benefit for the sector’s employees who had to stay at home due to the pandemic and to lift some of the restrictions imposed by the National Extraordinary Public Health Commission. For their part, officials of the Ministry of Health, Labor and Social Protection said these restrictions, including the ban on working after 10am applying to hotels, restaurants and cafes, were imposed due to the alarming situation caused by COVID-19 and to the higher number of infected patients hospitalized in a serious state. In the hearings held by the Parliament’s commission on economy, budget and finance on February 23, Aneta Zasavitski, president of the National Association of Restaurants and Recreational Facilities of the Republic of Moldova, said their turnover decreased significantly and the revenues are now lower than the costs. The restrictions affected the companies and their personnel, including their families. The Labor Code does not stipulate mechanisms for easily laying off the personnel that are not needed and compensations that the business entities cannot cover need to be paid.

Fuels increase in price again

Fuel sellers posted against higher fuel prices on February 24. The rises of 0.50 to 0.62 lei per liter come only a week after the last increase in the prices of gasoline, diesel fuel and liquefied petroleum gas. Now, gasoline of “95” type is sold for an average price of 18.30 lei a liter, as opposed to 17,70 lei until now, diesel fuel for 15.60 lei a liter, as against 14.90-15.00 lei, while the liquefied petroleum gas for almost 11 lei a liter, up from 10.35 lei. Fuel prices started to be raised in the middle of last December. Then, the prices rose by 0.60 lei per liter on average. In the middle of January, the fuel prices were increased by 1 leu per liter on average. In February, this is the third increase in prices already.

In 2010-2019, Moldova’s Railways was dispossessed of assets by different methods, commission

In 2010-2019, the state-run enterprise Moldova’s Railways was dispossessed of assets by different methods, such as the purchase of spare parts and diesel fuel at exaggerated prices, stealing of diesel fuel and appropriation of land and even pieces of platforms. These are some of the preliminary conclusions of the parliamentary commission that was created to analyze the economic-financial situation at the enterprise and the activity of the railway transport sector in 2010-2020. In a news conference, Socialist MP Oleg Lipskii, who is the commission’s head, said that in 20 days of the creation of the commission, they received responses from a number of state institutions. The response provided by the National Anticorruption Center shows that a series of criminal cases were started during ten years, but no one was held accountable. The responses and the questioning of representatives of the Security and Intelligence Service show that the responsible ministry, the Government and the Public Property Agency had been informed about the real situation at the enterprise in the period. Oleg Lipskii noted the modernization of trains at a factory in Romania took place in the absence of a feasibility study and no one knows how much these works cost in reality. Of the five modernized trains, only two are functional, while the rest are defective.

● THURSDAY,  February 25

Chisinau City Hall launches again international tender contest to buy buses

The Chisinau City Hall launched again the international tender contest to purchase 100 new buses. The contest announcement was published on the platform “achizitii.md” and is to be published in the Official Journal of the European Union. The tender contest will last for 35 days. The results of the first tender contest held in 2020 were annulled. The new buses must be 12 meters long and must be outfitted with surveillance systems inside and outside and with air conditioning systems. The environmental class of the vehicles must be minimum Euro 5. The consignment of buses is to be delivered to Chisinau during six months of the signing of the purchase contract. The 100 new buses are to be bought at a cost of at most 270 million lei.

Necessities and priorities of economic recovery in Moldova, debates

There is a crisis of liquidities in Moldova, especially for the SMEs. As a result, the enterprises fulfill their obligations towards employees with difficulty and the working hours and salaries are thus reduced. If they intervene now, the situation can be remedied. The state intervention should focus mainly on a state emergency loan guarantee fund, especially for SMEs, and a mechanism for compensating for the cut working hours should be implemented, Adrian Lupușor, executive director of the independent think tank “Expert Grup”, stated in the debates “Investment and economic recovery plan for the Republic of Moldova: Necessities. Priorities. Sources”, which was staged by the Institute for European Polices and Reforms.
According to Adrian Lupușor, the measures should be aimed primarily at women, as polls show that they were the most affected ones, at employees of the informal sector, employees with low salaries and those whose work contracts are valid for a definite period of time, seasonal workers. It is important to create an anti-crisis cell for coordinating foreign funds. Mathieu Bousquet, Head of Unit at the European Commission, said that after the pandemic, the EU will remain near de Moldova. The multiannual indicative program for Moldova for 2021-2027 is being drafted. The EU is ready to support the reforms that refer to the preeminence of law, justice sector, fight against corruption, promotion of civic involvement. It is important to work out a new solid strategy for managing public finances and the EU is ready to help Moldova in this regard.

● FRIDAY, February 26

Another 13 places for ambulatory trading units allocated

Thirteen lots to the total value of 10.66 million lei were distributed in the fourth open auction to allocate places for ambulatory trading units in Chisinau. The most popular lot was the one located at Ismail St in Centru district. Its initial price was 350,000 lei, but it was ultimately sold for 2.45 million lei. Also, the lots situated on Alexandrescu St and in “Valea Morilor” Park were sold for 1.93 million lei and 1.45 million lei respectively. The period of validity of the contract is of five years.
At the first two auctions held in December 2020, there were allocated 28 trading places to the total value of 51.8 million lei, while at the third one held in January – 11 lots to the value of 26 million lei.

● SATURDAY, February 27

Maia Sandu: Prosecutors are at final stage of airport concession case

President Maia Sandu said the prosecutors are at the final stage of investigation of the case concerning the concession of the Chisinau International Airport and this will be soon sent to court. The subject was discussed by the Supreme Security Council. After the meeting that lasted for about six hours, President Sandu said that representatives of a number of institutions responsible for the monitoring of investments stipulated in the concession contract, for the investigation of suspicions of corruption and others were invited to the meeting. The discussions lasted long as this is a complex subject and there were presented many details, but these cannot be made public as the case is to be remitted to court.Maia Sandu noted that she requested the Public Property Agency to ask to hasten the examination of the case concerning the termination of the contact for the concession of the airport in court. The hearings were put off on the pretext of the pandemic, but this is a case of national interest and its examination should be speeded.