● MONDAY, December 19
Air Moldova’s Chisinau-Bucharest flight available again
Air Moldova will provide again the Chisinau-Bucharest flight starting with December 19. The flight will be operated six times a week, except for Saturday, by an Embraer 190. On Mondays, Tuesdays, Wednesdays and Thursdays, the plane will take off in Chisinau at 7am and will land in Bucharest at 7:50am. It will then leave Bucharest at 9am and will arrive in Chisinau at 9:50am. On Fridays and Sundays, the flight will be operated in the evening. In Chisinau the plane will take off at 8:10pm and will arrive in Bucharest at 9pm. When back, the plan will leave at 9:50pm and will land at 10:40pm. One-way tickets cost €55 and up, while the return tickets €99 and up, with all taxes included. Air Moldova operates direct flights to 26 destinations.
ONG-uri: Iniţiativa legislativă privind amnistia fiscală şi de capital comportă riscuri mari
Iniţiativa legislativă privind amnistia fiscală şi de capital, votată în prima lectură, comportă mari riscuri de creştere a corupţiei, spălării banilor şi evaziunii fiscale. De această părere sunt mai multe organizaţii non-guvernamentale, care au prezentat luni, 19 decembrie, o notă de poziţie pe marginea acestei iniţiative legislative. În acest context, societatea civilă solicită retragerea proiectului de lege în cauză, dar şi a proiectului aferent, ambele aprobate cu o grabă fără precedent. Directorul executiv al Expert-Grup, Adrian Lupuşor, a declarat la o conferinţă de presă la IPN că această iniţiativă presupune mai multe costuri decât beneficii, mai ales că se propune o „aministie cu imunizare”, pentru că nu se va putea verifica provenienţa activelor nedeclarate – case, maşini, depozite bancare. Expertul consideră că amnistia de capital propusă ar putea duce a legalizarea actelor precedente de corupţie şi perpetuarea în funcţie a funcţionarilor corupţi, fapt ce vine în contradicţie cu obiectivele luptei împotriva corupţiei, prin faptul că instituţiile de resort nu vor putea verifica provenienţa activelor declarate.
Bidding for purchasing freight cars
The state-run company Moldova’s Railways announces a bidding contest to buy freight cars based on the project that is supported financially by the EBRD, EIB and the EU. A number of 12-15 new freight cars are to be purchased as a result of the bidding contest. There will also be chosen a contractor that will rehabilitate the locomotive depot in Basarabeasca. To exclude the human factor when taking decisions, the bidding will be conducted exclusively electronically. The program worked out by European IT specialists is designed to create optimal conditions for transparent and objective bidding. To implement the restructuring and reorganization project, Moldova’s Railways took out a loan of €50 million from the EBRD. The project will be co-financed by the EIB with €52.5 million, while the European Union will offer a grant of €5 million through the Neighborhood investment Fund. The goal of the project is to purchase locomotives, to rehabilitate the railway infrastructure, to implement the energy management information system at Moldova’s Runways and to simultaneously reform the whole railway sector.
Civil society requests to withdraw bill on capital and tax amnesty
The representatives of a number of nongovernmental organizations call on the authorities to withdraw the legislative initiative on capital and tax amnesty and the related bill that were passed by Parliament in the first reading. In a news conference at IPN, Nadejda Hriptievski, programs director at the Legal Resources Center of Moldova, said that if the two bills are adopted in the final reading, civil society will ask the Head of State to make use of his veto and not to promulgate them. If the President also ignores this appeal, the NGOs will ask the development partners to freeze the financing for Moldova. Nadejda Hriptievski said that four experienced Romanian organizations transmitted a petition to the President, Parliament and the Government of Romania whereby they ask to rethink or even suspend the budget support loan for Moldova if the Moldovan Parliament passes the bill on tax amnesty in the second reading. The petition was signed by Expert Forum (EFOR), the Romanian Center for European Policies (CRPE), Freedom House-Romania and the Group for Social Dialogue (GDS).
Veaceslav Negruta about initiative to liberalize capital: it is surprise of the year
The law on the liberalization of capital and fiscal stimulation or the so-called ‘amnesty law’ is the surprise of 2016. This initiative appeared in secret, being hidden from the foreign partners, and it is simply cynical for this to appear after the banking fraud was made the burden of ordinary taxpayers, ex-minister of finance Veaceslav Negruta stated in a public discussion at IPN entitled “Economic year 2016 in the view of entrepreneurs and experts”. The expert noted the bill was already registered when the IMF mission came to Chisinau, but the authorities didn’t propose this for discussion. “It was registered on December 1, but the IMF was kept at a distance. It was discovered by accident. This makes us think that the beneficiaries of this project are 8-10% of the population interested in legalizing property. The other 90% of the population have property registered in their name and they are not interested in legalizing this,” stated the ex-minister.
Expert Roman Chirca explains benefits of capital liberalization
Economic and financial expert Roman Chirca said the initiatives to liberalize the capital and provide tax concessions are still efficient in a society without internal struggles between oligarchs. He stated such an opinion in the public debate “Economic year 2016 in the view of entrepreneurs and experts”, staged by IPN News Agency. As to the law on liberalization of capital and fiscal stimulation, which was passed by Parliament in the first reading, the expert said it seems that the Government prepares a series of reforms, but does them without thinking much. “When there is a political crisis and after an election campaign, such a conception of capital liberalization is very raw. It does not come after a period of lull, when there is peace between oligarchs and the institutions function, when there is a lower level of tensions. An amnesty law is more efficient in such a case,” Roman Chirca. According to him, the first amnesty initiative was proposed by the Communists in 2007 and, even if it was a ‘fake’, it was useful as an experience. “I agree that there will be tens of waves of privatization and legalization of capital. Such initiatives will be for tens of years ahead. But I think this process should have been launched in a period when society was more prepared,” said the expert.
Leonid Cerescu: 2016 was marked by initiation of communication with business sector
The year 2016 was marked by the initiation of platforms of communication between political factors and the business sector. The fact that the economic entities started to be asked what should be done to improve their activity is something positive, chairman of the National Employers Confederation of Moldova Leonid Cerescu stated in the public discussion “Economic year 2016 in the view of entrepreneurs and experts”, organized by IPN News Agency. “If all these discussion platforms are continued, I hope in the future there will be adopted documents accepted by everyone,” said the employers’ leader. He noted that compared with 2015, political stability existed in 2016 and this changes the situation of the potential investors one way or another. The signing of the agreement with the IMF opens new perspectives for attracting new partners. “We would like the good initiatives initiated by decision makers, such as the amendment of the Labor Code, which has a special importance for the work of business entities, and the initiative to diminish the number of inspection bodies so as to remove the constraints on businessmen to be implemented till the end in 2017,” stated Leonid Cerescu.
Moldova signs lending agreements with EBRD and EIB for gas pipeline
The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) will provide by a loan of €41 million to Moldova for building the 120-km long Ungheni- Chisinau gas pipeline. The lending agreements were signed in Chisinau on December 19. The EU supports the project with €10 million worth of grants. The money will be transferred to the state-owned company “Vestmoldtransgaz” that will build and put into operation the gas pipeline and the interconnector between Romania and Moldova. “The EU fully supports this project that is of strategic interest for the Republic of Moldova as it will strengthen the country’s energy security and will simultaneously contribute to increasing the competitiveness of the energy market in Moldova, for the benefit of all the citizens,” Head of the EU Delegation to Moldova Pirkka Tapiola stated in the signing ceremony.
Transparency within public authorities can reduce corruption, expert
The more transparent are the public authorities, the greater will be the maneuvering space for reducing corruption. In the Republic of Moldova, any area, starting with agriculture and ending with public administration, necessitates efforts and restructuring so as to be more transparent, economic expert Iurie Morcotylo stated in the public discussion “Economic year 2016 in the view of entrepreneurs and experts”, staged by IPN News Agency. According to the expert, the economic growth next year will depend on a lot of factors. It is expected that the public investment will be larger than this year. Furthermore, the inflation rate was stabilized. It is also anticipated that the external shocks will not be as great. “But this expected growth of 3% will be very small for the Republic of Moldova. An economy that grows by 7% a year needs tens of years to double the Gross Domestic Product. With 3% we will double the GDP per capita in 25 years,” stated the expert, adding that the economic and political elites haven’t so far found a strategic solution for restructuring the economy.
● TUESDAY, December 20
ANRE rejects request to increase electricity tariffs
The National Agency for Energy Regulation rejected the request to increase the electric power tariffs made by the joint stock company “Termoelectrica”. The decision was taken in the December 20 meeting of the Agency. The Agency’s director Sergiu Ciobanu said the request of SA “Termoelectrica” was rejected for the reason that there are no sufficient arguments in this regard. “The costs incurred by them perfectly fit the tariffs that they have today,” he stated. “Termoelectrica” director Veaceslav Eni said he is not satisfied with the Agency’s decision. “We consider the Agency interprets the provisions of the methodology and legislation incorrectly,” stated Veaceslav Eni. According to him, the price of gas used to generate electric power represents over 80% of the tariff and the power production costs increased.
Contract with Gazprom will be extended for three years
The contract with Russia’s gas giant Gazprom for the supply of natural gas to the Republic of Moldova will be extended for three years. The agreement is to be signed by the sides on December 21, stated Deputy Prime Minister Octavian Calmac, Minister of Economy. In a news conference on December 20, Octavian Calmac said the request to extend the contract was made to Gazprom in the November meeting of the Moldovan-Russian intergovernmental commission. “As regards the price of the supplied gas, this will be floating. What we can say is that we have an international conjuncture where the import prices of natural gas decline,” stated the minister.
Confirming the statements of his colleague, Deputy Minister of Economy Valeriu Triboi said that in the first quarter of this year Moldova purchased natural gas from Gazprom for US$223 per 1,000 cubic meters. The average price for the whole year will be about US$190. The price for the first quarter of next year will be known on January 15, 2017.
Emphasis in 2017 will be placed on laws harmonized with European ones, minister
“We managed to remove the shortcomings witnessed in 2014 - 2015 and to achieve all the objectives set for 2016 in the framework of the Association Agreement signed by the Republic of Moldova and the EU,” said Deputy Prime Minister Octavian Calmac, Minister of Economy, when presenting the Ministry’s accomplishments this year. Next year emphasis will be laid on the implementation of the laws harmonized with the European ones and on the extension of their application to the private sector. The national economy, especially the agricultural sector, managed to fully use the quotas provided by the EU. In some sectors, where the EU set floating quotas for grains, sugar, table grapes and plums, the quotas were doubled or even trebled. There were also launched negotiations to extend the commercial preferences with other partners. Free trade agreements are being negotiated with Egypt and China.
Premier’s Economic Council sums up results of 2016
The Economic Council working under the Prime Minister summed up the results achieved in 2016. Among these were the reform of the state inspections system and reduction in the number of authorizing documents such as authorizations and certificates, IPN reports, quoting the Government’s press service. In 2016, there was eliminated the obligation to possess stamp. Trade was facilitated and the procedure for obtaining working permits for foreigners was simplified. Attending the event, Prime Minister Pavel Filip spoke about the executive’s priorities and the archived objectives, including the regaining of development partners’ confidence, approval of the agreement with the International Monetary Fund and unlocking of external financing.
Three privatization rounds held in 2016
Three privatization rounds have been held this year and over 300 million lei was obtained as a result of these. According to Deputy Prime Minister and Minister of Economy Octavian Calmac, all the privatization procedures took place in a transparent way, most of these through the Moldova Stock Exchange. The process of selling public property will continue in 2017. The property that wasn’t sold in the previous privatization rounds will be exhibited at a price that will be by 5% lower. There will also be sold new property such as the power distribution enterprises RED Nord and RED Nord-Vest and telecoms carrier SA Moldtelecom. Asked about the initial selling price of this property, including of SA “Moldtelecom”, Octavian Calmac said the price was calculated, but a long period of time passed since then and the calculations will be updated.
● WEDNESDAY, December 21
Chisinau-Socola (Iasi) train to temporarily run four times a week
The Chisinau-Socola (Iasi) train will run for four times a week on a temporary basis as of December 23, 2016. Besides Saturday and Sunday, routes will also be provided on Friday and Monday. Contacted by IPN, communicator of Moldova’s Railways Eliza Botnari said the new schedule was approved for the period until January 16, 2017 inclusive. If the number of passengers is higher, the period will be prolonged. The train leaves the Chisinau Train Terminal at 6:43am and returns at 5:12pm. Before the trip, the passengers can obtain additional information about the schedule of the trains provided by Moldova’s Railways on (022) 83 27 33/ (022) 83 27 34.
● THURSDAY, December 22
Discount registration of cars with foreign numbers will fix an older mistake, statements
The Government is trying to fix an older mistake by allowing owners of vehicles imported into Moldova before November 1, 2016 to register these with a 70% discount off the excise value, but not all are satisfied with such a solution. The issue was developed in the talk show “Moldova live” on the public TV channel Moldova 1. “Any mistake costs. They allowed the people to invest and bring these cars and we cannot force them to abandon their property. On the other hand, those who paid all the taxes and registered their vehicles are disadvantaged. Those who allowed the Moldovans to use cars with foreign registration numbers by paying only the vignette pursued political goals and aimed to obtain more votes. The Government found a compromise solution, but this solution does not satisfy everyone,” stated economic expert of the independent think tank “Expert-Grup” Dumitru Budeanski.
Moldova to get US$45m in budget support
The Republic of Moldova will receive US$45 million in budget support based on a financing agreement signed with the International Development Association (IDA) and a lending agreement signed with the International Bank for Reconstruction and Development (IBRD). In the December 22 sitting, Parliament voted to ratify the accords with the two institutions. The ratification bills provide that the money will go to improve the predictability of the business climate in Moldova, create equal competition conditions, reduce costs, strengthen the financial sector’s stability, promote transparency and improve access to financing. Minister of Finance Octavian Armasu said that about US$17 million will be disbursed under the agreement with the IDA and over US$27 million under the agreement with the IBRD. “The loans are designed to finance the deficit and national debt. The national debt next year will represent 42% of the GDP. The agreements are aimed at supporting reform programs that will generate economic development, while the growth of 3-4% a year enables us to repay this debt,” he stated.
Concession agreement on geological exploration in Moldova to be negotiated
The Government approved the results of the closed bidding to choose the concessionaire of the mineral exploration works on Moldova’s territory, which was won by the American company Frontera International LLC. Bids to the contest were submitted by Frontera International LLC and Overseas Minerals Corporation of the UK during August 5 – October 5, 2016. The concession agreement regarding hydrocarbon exploration and development will be negotiated and signed by the Ministry of Environment with the winning company for a period of 40 years. The state will get not less than 1% of the revenues earned from the sale of hydrocarbons. The company will start work within two years of the signing of the concession agreement.
Foreign investor ready to set up cancer center in Moldova
A Turkish investor is willing to open a cancer center in Moldova. The intention was announced by the vice president of Bozlu Holding SA Ismail Dernek, president of Healthcare Group, in a meeting with Prime Minister Pavel Filip. According to the Government’s press service, the Premier said the executive supports the implementation of this idea. The Cabinet approved a series of legislative amendments whereby the monopoly on the treatment services in this sector is annulled. The bill is in Parliament and is to be passed in the final reading. “We need qualitative services in oncology, but also a higher number of institutions that provide such services. The patients must have access to high-quality medical services,” stated Pavel Filip.
Parliament ratifies agreement to finance project to renovate Moldova’s Railways
The legislative body ratified the financing agreement between the Republic of Moldova and the European Investment Bank within the project to reconstruct and rehabilitate the railway infrastructure and purchase rolling stock. The document provides that the state-run Moldova’s Railways will get €50 million for the purpose. The agreement was ratified by the votes of 59 MPs. The money will be disbursed in maximum 20 tranches of at least €500,000 each. The first part of the contract envisions the purchase of 11 electric diesel locomotives for transporting both passengers and freight. There will also be bought maintenance equipment. The second part of the contract refers to the rehabilitation of the railway infrastructure. The rehabilitation works will be concentrated on the corridors Bender-Chisinau-Ungheni-Balti-Ocnita and Bender-Basarabeasca-Etulia-Giurgiulesti.
● FRIDAY, December 23
Tapiola: EU is interested in democratic Moldova that continues reforms
EU Ambassador to Moldova Pirkka Tapiola issued a press statement whereby he assures that the EU is fully committed to help and support Moldova on its path of real and tangible reforms that will lead the country to another development level. “The Government of the Republic of Moldova received a transfer of €45.3 million from the EU. This transfer was possible owing to the IMF program as, what we call general conditions for transfer as budget support, were met. This actually means transparency in the budgetary process, a framework on banking surveillance and others, which were transposed to the IMF program and confidence was thus restored,” stated Pirkka Tapiola. The European official explained that as a result of negotiations, Moldova managed to ensure the approval of a three-year country program by the IMF Board on November 7 this year. “From our viewpoint, this result showed the establishment of a framework and this guarantees the return to macro-financial stability. If you consider in detail previous actions and the program, you will see that many aspects are present as to governance in the banking sector, banking surveillance and powers of the National Bank. These are problems stipulated in the program, which should be addressed to guarantee that such events as those of 2014 in the banking sector will not repeat,” stated Tapiola.
Exchange rate remains unchanged in Transnistrian region
The exchange rate in the Transnistrian region will remain unchanged for the next few months, but the foreign exchange and gold reserves have substantially increased in the recent months, the governor of the so-called Central Bank of the Transnistrian region Vladislav Tidva said. In a program on the TV channel ТSV, the new senior banker of Transnistria said the foreign exchange and gold reserves in the region are in a deficit of US$20 million. When the previous leader Yevgheny Shevchuk came to power in Transnistria in December 2011, this indicator was minus US$4 million. Such a huge deficit is also the result of the fact that the Central Bank during the last few months, with the consent of the previous leader, had sold currency outside the currency market, which is against the Transnistrian legislation.
Tax amnesty law weakens anti-corruption measures, IMF
The principles of the draft law on capital liberalization and tax stimulation appear counter to the objectives of the authorities’ economic reform program supported by the International Monetary Fund, IMF Resident Representative in Moldova Armine Khachatryan says in a press line on the tax amnesty law. “In particular, the law, in its current form, weakens anti-corruption measures and will impede the fight against money laundering and fraud. We will continue our dialogue with the authorities on how best to reconcile this legislation with the stated objectives of the program,” the IMF Resident Representative says in her message. “Our experience shows that successful tax amnesties are very hard to design, and we prefer to explore the scope for improving tax administration as a tool for bringing about greater taxpayer compliance and a fight against informality.”
● SATURDAY, December 24
New request to raise electric power supply tariffs
The National Agency for Energy Regulation received a new application to increase the electric power supply tariffs, this time from the joint stock company “Furnizarea Energiei Electrice Nord”. The application and materials that justify the necessity of raising the tariffs were published on the Agency’s website. The regulatory authority is obliged to examine the application within 180 calendar days. Earlier, in the middle of December, the companies of the Fenosa Group in Moldova also asked to increase the tariffs. The last time the National Agency for Energy Regulation updated the tariffs for the electric power supply services provided by SA “Furnizarea Energiei Electrice Nord” on March 12 this year. The new tariffs started to be applied on April 1.
