ECO-BUS WEEKLY DIGEST March 15-21. Most important Economy & Business news by IPN
● MONDAY, March 15
PSRM: We are against “lockdown” on which Maia Sandu insists
The Party of Socialists of the Republic of Moldova (PSRM) insists on the fact that the economy should not be destroyed and say they are against the “lockdown” on which President Maia Sandu insists. The Socialists note the idea belongs to Maia Sandu, not to most of the members of the Supreme Security Council. “The giving of instructions to Parliament and the Government is not within the President’s remit. If she has proposals as to how to contain the pandemic, she should make them public, including by indicating the financial resources, if these imply costs,” IPN quotes the PSRM’s statement. The party noted Maia Sandu’s request to stop any economic activity during the next few weeks seems strange when the President continues to insist on snap parliamentary elections. The leader of the PSRM Igor Dodon also criticized the President’s decision to ask to declare a state of emergency in Moldova.
PDM against opening of schools and in favor of lockdown
The Democratic Party of Moldova (PDM) asks not to open the schools and suggests a number of proposals that were also presented in the March 13 meeting of the Supreme Security Council. The president of the PDM Pavel Filip said that after the meeting, he remained with the impression that the situation in the Republic of Moldova is very serious. He urged not to allow the teachers to become cannon fodder and not to allow the politicians to play with the people’s lives. “We do not have a functional government and until we have it, the PAS and PSRM will blame each other so as to avoid responsibility. The PAS does not want a functional government, believing that this way they do not bear responsibility. On the other hand, it is suitable for the PSRM to say that it is not in power, but to actually control this government. But who will think about the people,?” asked Pavel Filip.
Parliamentary parties’ position on proposals presented by Maia Sandu after SSC’s meeting
The parliamentary parties reacted differently to the proposals made public by President Maia Sandu after the meeting of the Supreme Security Council on March 13. PAS MP Dan Perciun noted on Facebook that if harsh restrictions are not introduced, a rate of 100 deaths a day could be reached in two-three weeks. “If we want to avoid this scenario, there is no other solution than a lockdown. I see that we are all tired of pandemic, restrictions and all have pertinent concerns about the impact of these measures on the incomes of the population and businesses. This is what makes such a decision so difficult to be taken. Our position is that the lockdown should be announced and should be accompanied by support measures for the people and companies,” said the MP.
Chisinau municipality intends to purchase 100 buses by direct negotiations
Mayor of Chisinau Ion Ceban asked his colleagues to make the necessary approaches for purchasing the 100 buses, which the municipality intends to buy, by direct negotiations. In the March 15 meeting of officials of Chisinau services, the mayor said the local councilors are to blame for the failure of the tender contest that was annulled after the National Dispute Resolution Agency ordered to review the bids. The decision by which the municipality chose ISUZU to purchase the 100 buses for the capital city under a public procurement contract was annulled last November after the other participants in the tender contest challenged the result. Last month, the Chisinau City Hall said it will announce a new tender contest to acquire the buses.
Ex-president of BEM to stand trial
Arrested four months ago in the bank fraud case, the former acting president of Banca de Economii (BEM) Viorel Bârcă will appear before judges for appropriation in considerable amounts. The Anticorruption Prosecutor’s Office completed the investigation and sent the case to court. According to the Prosecutor General’s Office, in July 2013 – September 2014, the ex-acting president of the BEM, acting in the interests of a criminal group, undertook the adoption of administrative, juridical and economic-financial decisions at the level of the bank’s administration, taking part as co-author in the stealing of US$100 million from the bank under liquidation. To hide the crime, he didn’t register the illegal transfers of money to a Russian bank in the accounting documents. He indicated this fact only on November 24, 2014, distorting this way the real situation concerning the accounting balance and liquidly of the bank.
● TUESDAY, March 16
Presidential administration remits SSC decision on pandemic crisis to Government
The presidential administration has submitted the Supreme Security Council’s decision with the recommended actions aimed at containing the COVID-19 pandemic to the Government. The Council suggests definite measures for supporting the population and the business community in this period, IPN reports, quoting the presidential press service. The measures include the compensation of the losses of salary earners, patent holders and other categories, caused by the state of emergency, with at least 1,000 lei a week, simplification of the procedures for registering the status of unemployed person and for setting unemployment benefit so that these are performed during three days, reduction of the minimum insurance period from 12 months to nine months and provisions of the right to unemployment benefit to young specialists.
Zhang Yinghong: When Free Trade Agreement is signed, we will have more Moldovan products on Chinese market
China’s Ambassador to Moldova Zhang Yinghong said the signing of the Free Trade Agreement between the two states will increase the competiveness of the Moldovan products on the Chinese market. The Moldovan products have huge potential on the Chinese market, with the wines, walnuts and honey being in great demand there. China has been near the Republic of Moldova in the fight against COVID-19 and offered six lots of humanitarian aid to Moldova since the start of the pandemic. The diplomat underlined the friendly bilateral relations, saying China has supported financially a number of important projects in Moldova.
Farmers can file applications to get diesel fuel from Romania’s donation
As from March 16 until April 5, the Agency for Intervention and Payments in Agriculture (AIPA) will accept applications to distribute diesel fuel from the donation made by Romania as humanitarian aid, which is intended for the Moldovan farmers affected by last year’s drought, IPN reports, quoting the Ministry of Agriculture, Regional Development and Environment. According to the Ministry, the assistance is provided for partially covering the costs incurred by agricultural producers when sowing the winter crops and when performing the spring works. The quantity of diesel fuel per recipient is determined based on a number of indicators and coefficients. The necessary documents must be submitted by the applicant or the legal representative to the local subdivision of the AIPA. The deadline for submissions is April 5, 2021.
Pilot e-ticketing project launched in partnership with MAIB
The Chisinau City Hall on Match 16 launched the pilot electronic ticketing project in municipal public transport in partnership with Moldova Agroindbank (MAIB) and MasterCard. The project is implemented in 110 units of transport, on trolleybus routes No. 10, 22 and 30 and on bus routes No. 2, and 5. MAIB first vice president Aliona Stratan said Moldova Agroindbank aims to continuously develop the payment system and infrastructure and this project is one of the bank’s strategic projects to build a smart city. “In everything it has done and developed in the recent past, Moldova Agroindbank aims to bring comfort, convenience and swiftness for its customers. The payment system is very simple: you need any payment instrument, such as card, telephone or smart watch, to hold it near the payment terminal and you will make the payment without any commission. Initially, the conductor will remain in the trolleybus and will collect the fare from passengers. But later, payment terminals will be installed on the units of transport. We are sure that it is an important project for the inhabitants of the city and for visitors,” stated Aliona Stratan.
Fly UIA resumes flights between Ukraine and Moldova
The airline Fly UIA restarts the flights between Ukraine and Moldova on March 28. The flight program will enable to connect with international and domestic flights through the Boryspil International Kyiv Airport. The operator said the schedule of the Kiev-Chisinau-Kiev flights is as follows: Kiev (KBP) - Chisinau (KIV) – on Monday, Thursday and Sunday, and Chisinau (KIV) - Kiev (KBP) – on Monday, Tuesday and Friday.
Energy efficiency projects to be implemented at 14 schools in Chisinau
Energy efficiency and building thermal insulation pilot-projects will be put into practice at 14 lyceums and secondary schools in Chisinau. The Chisinau City Hall on March 16 signed contracts to this effect with firms that will execute the works. During 12 months, the ventilation and heating systems will be replaced, internal LED-based lighting systems and intelligent metering systems will be installed and the engineering systems will be repaired. The works are financed with money lent by the EIB and the EBRD and with a grant provided by the Energy Efficiency Fund. Deputy mayor Angela Kutasevich said the projects will improve the conditions of study for 8,000 students and all the technologies that will be applied when repairing the buildings will be based on green energy materials.
● WEDNESDAY, March 17
Agricultural subsidies paid with delay, National Farmers Federation asks to augment fund
The agricultural producers receive subsidies from the state with delays of several months to half a year and the farmers are thus unable to repay the loans taken out from banks or they pay penalties to banks for not making the payments on time. National Farmers Federation executive director Vasile Myrzenko has told IPN that many of the farmers who filed applications to the Agency for Intervention and Payments in Agriculture (AIPA) last year didn’t receive the subsidies to which they are entitled from the state, but they had to lend money from banks to make investments.
Moldova’s GDP in 2020 down 7%
The Gross Domestic Product in 2020 declined by 7% to 206.3 billion lei following the restrictions imposed to contain the COVID-19 pandemic, shows an analysis by the National Bureau of Statistics. As the demand declined pronouncedly, the global value chains were disrupted and the level of uncertainty is high, the companies reduced investment and export activity. The effects were expanded by the unfavorable weather conditions that led to a significant decline in the agricultural sector. Last year, most of the sectors of the economy contributed negatively to the evolution of the Gross Domestic Product. Major influences are noticed on account of the agricultural sector and domestic trade in goods, retailing and wholesaling. In the crisis period, the economy was supported by the building sector. A positive influence was also exerted by investments in infrastructure that are financed from the Road Fund and foreign loans.
PAS MP suggests banning gaming advertising
Gaming advertising could be banned by law. The Parliament’s commission on environment and regional development approved a bill to amend the legislation in this regard. Bill author Dumitru Alaiba, MP of the Party of Action and Sodality, said the games of chance are described by specialists as a mental illness, dependence that destroys families as the persons who depend on such games take the last money from home to casinos. “The gaming advertising campaigns are overaggressive and are extremely generously paid so that these games become attractive to people. Regrettably, in a poor and corrupt country like hour, many people, including minors, become vulnerable, fall prey to the temptation to become rich swiftly. But this does not happen and dependence on games of chance appears and this destroys thousands of families,” stated Dumitru Alaiba.
Trade between Moldova and Japan followed positive trends in 2020
Trade between Moldova and Japan last year followed a positive trend despite the challenges generated by the pandemic crisis. Foreign trade grew by 9.5% compared with 2019, while exports rose by 18.27%, secretary general at the Ministry of Economy and Infrastructure Lilia Palii stated in a meeting with Japan’s Ambassador to Moldova Yoshihiro Katayama. In the discussions, the officials conferred on the agenda of the bilateral relations. In particular, they discussed the development of the commercial and economic relations between the two states and within the development assistance. Lilia Palii said Japan is a strategic partner of the Republic of Moldova. In this connection, it was noted the technical cooperation framework for supporting the SMEs and agriculture and for strengthening the institutional capacities of public functionaries. It was reiterated the importance of the activity of the Japanese investors in Moldova.
Chisinau wastewater treatment station 70% rehabilitated
The works to rehabilitate the wastewater treatment station in the municipality of Chisinau were 70% executed and are to be completed in November 2021. The data were presented in public hearings on the issue held by the Parliament’s commission on environment and regional development. Deputy mayor of Chisinau Ilie Ceban said the unpleasant smell at the wastewater treatment station is caused by the 500,000 tonnes of mud that are stored in the open air. With the money provided by the National Ecological Fund, a special cover was bought and this was placed over the mud. The unpleasant smell was this way reduced. But the station daily produces another 100 tonnes of mud.
● THURSDAY, March 18
Bill to cap fuel prices given first reading
The MPs gave a first reading to a bill that stipulates the method of capping fuel prices based on the methodology for calculating and applying the prices of oil products. The methodology is to be worked out, approved and supervised by the National Agency for Energy Regulation based on the Platt`s international quotations. Bill author Alexandru Oleinic said the analysis of the situation on the domestic market, including the evolution of prices compared with the fluctuation of prices on international markets and the behavior of oil companies, shows that the normative framework in the field should be fundamentally reviewed. The fuel prices in Moldova have always generated dissatisfaction in society. During the past two months, the prices of oil products have been raised for five times.
● FRIDAY, March 19
How is medical leave in case of COVID-19 paid
The medically insured persons diagnosed with COVID-19 receive an allowance for temporary incapacity for work, as in the case of other diseases. The medical institutions indicate the “ordinary disease” category in medical certificates. In a response to IPN, the National House of Social Insurance (CNAS) said the allowance for temporary incapacity for work caused by ordinary diseases or accidents that are not related to work is paid by the CNAS with resources form the state social insurance funds, except for the first five calendar days, which are paid by the employer, but only for 15 days cumulatively during a calendar year if there are several periods of temporary incapacity for work.
Vitalie Zaharia: Reorganization of “Moldova’s Post Office” bothers particular persons
The reorganization of the state-run company “Moldova’s Post Office” bothers particular persons who left the comfort zone and have to work and thus disseminate false information and attack the company’s director, acting director general Vitalie Zaharia stated in a news conference at IPN on March 19. The company’s acting director general noted the accusations made against “Moldova’s Post Office” and against him should be substantiated. “Moldova’s Post Office” is not affiliated and does not become involved in politics. It only steps up efforts so that it remains the national operator, near the people. We realize very well that all these beneficial changes and processes that were started worry particular persons, including from the company, who were removed from the comfort zone and made to work. Particular forces from outside are also bothered as they probably were stripped of particular schemes together with my appointment and they want to see the company weakened and inefficient. Only by multiple, beneficial results for the employees, the company, we will manage to change the work conditions, to increase the salaries, to modernize the postal technologies and to change the customers’ and everyone’s perception of “Moldova’s Post Office”,” stated Vitalie Zaharia.
ACC collects data from over 4,000 water meters remotely
SA “Apă-Canal Chisinau” collects data from more than 4,000 consumers remotely, through smart water meters. The number of such meters has increased and is yet to be extended, said the supplier, enumerating a series of advantages generated by such a system for collecting and transmitting data. According to ACC, the implementation of this remote water meter reading system has both economic and social benefits. This system enables to remotely read each installed meter, in any place - multistory buildings, industrial enterprises, offices, etc. An advantage is the possibility of integrating automatically the meter readings into the invoicing system, which facilitates the work of calculation engineers.
Avia Invest invested in airport primarily from current activity, PPA vice director
The company that manages the Chisinau International Airport, Avia Invest, the previous year made investments mostly from current activity and the resources that constituted the object of lending contracts, said vice director of the Public Property Agency (PPPA) Mihail Sotski, who responded in Parliament to a question put by PPPDA MP Arina Spătaru. Mihail Sotski said the response does not refer to the situation of 2020, for which no data exist yet.
● SATURDAY, March 20
Number of e-Waste collection points to be raised
The number of e-Waste collection points will increase from 128 to 200, thanks to the new project dedicated to e-waste management, which was launched on March 18 on Global Recycling Day. The collection points will be created in Chisinau and other localities in the country. The project “Recycle e-waste, achieve the SDGs” is implemented with the financial support of the GEF Small Grants Program, implemented by UNDP Moldova, and continues the project “Clean city with recycled e-Waste”, IPN reports, quoting a press release of UNDP. The first laboratory class on electrical and electronic equipment waste will be arranged within the College of Ecology, which will be equipped with various samples, which will allow to study and visualize in detail the types of materials of which they are composed.
Average rate on new loans released in lei at 7.4% in February
The new loans provided this February came to 2.673,2 billion lei, down 12.5% on last February. The loans released in national currency represented 74% of all the loans, those in foreign currency – 24.4%, while the foreign currency-linked loans - 1.5%, IPN reports, with reference to data published by the National Bank of Moldova. The loans repayable in one to five years remained the most attractive ones, constituting 53.4% of the released loans. The legal entities accounted for 34.7% of these loans. The average rate on new loans provided in national currency was 7.4%, on loans in foreign currency – 4.13%, while on foreign currency-linked loans – 4.41%.
Volume of cash collected in two months 3.5% down
The volume of cash collected in January-February 2021 decreased by 3.5% compared with the corresponding period last year to 19.721,3 billion lei, IPN reports, quoting the National Bank of Moldova. The decline was due to the 1% decrease in amounts collected from the sale of consumer goods that represented 54.5% of the total volume of cash. The given development was supported by the reduction in all the sources of cash collection. The cash released by licensed banks in the first two months of this year rose in volume by 0.9% compared with the same period last year to 20.355,0 billion lei. The given change followed the 2.4% rise (136.2m lei) in the volume of cash released for purchasing currency from private individuals to 5.769,2 billion lei, which is equal to US$332.2 million.
