● THUESDAY, December 26
Fuel price caps increased for next two weeks
Over the next two weeks price caps for a liter of gasoline and diesel fuel will be by 0.13 leu and 0.07 lei higher, respectively, as per the latest National Energy Regulatory Agency’s fortnightly update. In particular, a liter of regular 95 gasoline will cost no more than 17.54 lei at the pump, compared to 17.41 lei in the previous two weeks; and diesel fuel will cost 15.72 lei, compared to 15.65 lei. The updated price caps will be effective until January 9.
Chisinau should require compliance with Free Trade Agreement from Tiraspol, IDIS expert
The companies on the left bank of the Nistru river export 40% of their products to European Union states, and the Tiraspol alleged authorities are ready to extend the Free Trade Agreement for the coming year, but Chisinau ought to insist on them respecting the responsibilities they have assumed, suggests IDIS Viitorul expert Ion Tăbârță. During the IDIS-hosted “15 Minutes of Economic Realism”, in partnership with Radio Free Europe, Ion Tăbârță stated that the economy of the Transnistria region has been in a grave recession for the past few years. Starting with 2014, its main macroeconomic parameters have worsened. Gross Domestic Product has fallen by 7.5%, industrial production - by 20%, exports - by 26%, imports by 47%, and market consumption capacity by 21%. Population income has fallen by 33%. Meanwhile, the regional budget has managed to cover only 60% of the necessary costs.
● WEDNESDAY, December 27
The Goods of 2017 in Agriculture. An IPN Campaign
In 2017, relative to 2016, the yield on vegetable agricultural products was of higher quality. Wheat production has grown by almost 20%. Autumn barley has grown by 12%. Corn – 34%, soy – 27%, sunflower – 11%. The total yield in fruit has grown by 3.2%, seeds – by 3.4%, stone fruits – 3%. Fruit-bearing shrubs and strawberries have reached a yield 15% higher than last year, and the volume of vegetable and potato production has grown by 22%.
The Goods of 2017 in winemaking. An IPN Campain
During 2017 the Moldovan wines have obtained over 300 medals, around 60% of which were golden and 10% - Grand Gold. Moldovan wines are currently exported in over 40 countries of the world. Under the umbrella “Wine of Moldova. A legend Alive”, a record number of local wine and divine producers have gathered on The National Wine Day 2017. The amount of certified batches of wines with Protected Geographical Indications has reached 2939000 liters. The Wine and Vine Register of the Republic of Moldova was launched. Currently, over 74 winemakers and 24739 vineyards are registered.
Moldova surpasses plum export quota for 2017
Three years into the DCFTA with the EU, in 2017 Moldova was able to surpass the plum export quota for the first time, and was able for the first time to export fresh cherries to the European Union. The Ministry of Agriculture, Regional Development and Environment marks this as one of the major achievements of 2017. In an answer to IPN, the Ministry mentions that fruit exports have amounted to 200 thousand tons. The number of economic agents who export to the EU is on the rise. Food-grade grapes have been exported by 38 sellers, fresh apples – 9, fresh plums – 53.
● THURSDAY, December 28
ECAA membership provided steady progress for Moldovan civil aviation in 2017
Joining the European Common Aviation Area (ECAA) in 2012, has allowed Moldova to develop its aviation market. Today, the Chişinău International Airport manages flights to over 40 cities, offering hundreds of connections. 2017 saw the launch of routes such as Geneva, Berlin, Krasnodar. Ticket prices have fallen considerably, claims the Civil Aviation Authority (AAC) in an answer to IPN. A notable achievement for civil aviation in 2017, mentioned by both the AAC and the Ministry of Economy and Infrastructure is the commencing of upgrades to the Chişinău International Airport runway. “The bearing index of the runway layer has risen from 51 to 70, allowing the Chisinau airport to serve any kind of aircraft, without restrictions, including large fuselage planes. Furthermore, runway lighting has been upgraded on the 1km sector of the runway, allowing to expanding the current landing category from II to III, and will facilitate landing in very low visibility conditions,” IPN learned from the Ministry.
Fourteen railroad stations proposed for closure
Fourteen railroad stations which are reported as unproductive are proposed to be closed down. An amendment to that effect, submitted by the Ministry of Economy and Infrastructure, has been put up for public debates. The following stations are proposed for closure: Halt km 111, Halt km 1507, Zaim, Kulima, Greceni, Kiriutnea, Mereni, Bahmut, Hiliuţ, Glodeni-Răuțel-Glodeni, Târdea, Cobâlea, Ghizdita, and Hadjimus. It has been reported that the stations are generating annual losses of 15 million lei. However, the former stations will continue to be used as simple halts where trains will stop to load and unload passengers. Timetables will remain unchanged and no layoffs will occur as staff will be transferred to other functional railroad stations.
● FRIDAY, December 29
Official Gazette review, issue 29.12.2017
After an barrage of heated debates around the July electoral system change, today’s OG finally publishes the amended Election Code, although the Law that introduced the change required the publishing within two months. The delay could be explained (in the absence of any official clarifications) by the great number of other laws affected by the amendment. In the part dedicated to Presidential Decrees, the one standing out is whereby President Igor Dodon formally approves the resignation of six Cabinet members following a reshuffle. Meanwhile, the president vetoed the new nominations and thus exposed himself to an ad-hoc suspension by the Constitutional Court. The existing institutional blockage will surely create some problems, but not to the extent of rendering the Cabinet nonfunctional: we learn from the OG that the Cabinet approved a set of civil protection measures for 2018 (#1092), and a number of secondary legislation documents in various areas. Two of them concern electronic signatures, in particular their certification by specific service providers (#1140) and their use by public entities (#1141). The Cabinet also approved the Regulation to subsidize job creation (#1145) in a bid to increase employment and curb migration. Each new job created by eligible companies in 2018 will be subsidized by 40.000 lei.
Emissions and Pollutants Registry to be implemented in 2018
Starting with 2018, Moldova will implement the National Emissions and Pollutants Registry (RETP). According to the Ministry of Agriculture, Regional Development, and Environment, the document concept is a publicly accessible database, which will contain data on pollutants emitted or transferred, from a variety of sources that are potentially harmful to the environment. Svetlana Bolocan, Head of the Directorate for Waste and Chemical Substances Policies, mentioned during a workshop that the development of a national Registry will facilitate development of the national reports required by multilateral environment treaties that Moldova has joined.
New border checkpoint in Otaci
A new border checkpoint has been created in the vicinity of the “Otaci” crossing point. The customs post will work non-stop, in order to avoid traffic congestion and jams created by long-haul trucks. All customs procedures will take place in the customs control zone, 1.5 km away from the border, allowing the passage point to only register crossing instances and to authorize the exit of merchandise. According to a press release by the Customs Service, in the initial phase, the area will deal with export and re-export operations, whereas other customs services will be provided only based on pre-submitted requests. The new customs control area is on the R-9 Soroca-Otaci route (km 40), at the intersection of several traffic arteries, and will have a processing capacity of 120 trucks per day. The post also hosts a parking lot for 35 trucks, two warehouses, and an evidence room.
Fighting corruption by ‘decriminalizing’ economic violations is ‘mock reform’, says CPR
Promoting the Bill on “decriminalizing” certain economic infringements is suspicious in a time when the population’s level of trust in state institutions is very low, and the recovery of stolen assets along with punishment to those responsible for the theft has been on hold for past three years. That is the position the Center for Policies and Reforms (CPR). According to CPR, no “decriminalization” of financial infringement is acceptable, until the assets stolen during the banking fraud aren’t recovered and the culprits are punished. Any Government that would try to do otherwise, would become an accomplice to the theft. By promoting this Bill, Moldova joins the list of countries that only mime their fight against corruption.
The Goods of 2017 in foreign investment. An IPN Campaign
Top 5 from the Ministry of Economy and Infrastructure: Sumitomo Electric Bordnetze – manufacturing of cabling modules and electric equipment for the automotive sector - a total of $35 million to be invested, 2500 new jobs to be created; Dra Draexlmaier Automotive MLD – manufacturing of automotive electronics - investments of $20 million, 2500 new jobs to be created; Gebauer&Griller – manufacturing of automotive electric cabling - investments of $15 million, 800 new jobs to be created; Fujikura Automotive – manufacturing of automotive electric cabling - investments of $10 million, 1500 new jobs to be created; „Coroplast Harness Technology” – assembly of automotive cabling modules - investments of $10 million, 300 new jobs to be created.
More loans granted in 2017
The volume of new loans, in 11 months of 2017, has grown by 8,7% compared to the same period last year. This follows a 21.9% increase in loans in national currency. Individual loans in lei have grown by 34.4%, and business loans have grown by 15.5%. According to an answer provided to IPN by the National Bank of Moldova (BNM), this increase was determined by a decrease in interest rates for loans in lei, by an average of 4.1%, from 14.5% in 2016 to 10.4% in 2017. Experts from Independent Think Tank “Expert Grup” note that the financial sector has maintained stability in 2017, although commercial banks are still under the effects of the crisis, both in terms of image and financial situation, firm reform actions by the National Bank of Moldova have halted the downward trend, and have even managed to partially rehabilitate credibility in the eyes of foreign investors. Furthermore, decreases to loan interest rates can stimulate the economy towards new investment projects.
Freight volume rose 24.6% in 11 months
In January-November 2017, road, rail, inland waterways and air carriers moved a total 15.8 million tonnes of cargo, a 24.6 percent increase on the similar period last year. The Ministry of Economy&Infrastructure said in a press release the increment is mainly due to an overall improvement of the economic situation. Road freight transport had a 72% share of the total, with 11.4 million tonnes (+20.2%) transported in 11 months. Railroad transport rebounded and saw the first increased freight volumes in four years, accounting for 27.4% of the total. In 11 months, freight trains carried 4.3 million, or by 39% more than in the previous period last year. Waterways transport stagnated with a mere 123,800 tonnes (-1%).
