● MONDAY, December 28

Central bank maintains base rate at 19.5% a year 

The base rate on the main short-term monetary policy operations will remain at the level of 19.5% a year. A decision to this effect was taken by the Executive Board of the National Bank of Moldova on November 26. The central bank also decided to maintain the interest rate on overnight loans at 22.5%, while that on overnight deposits – at 16.5% annually. The decision was taken with the aim of curbing and maintaining the rate of inflation around the target of 5% in the medium term, with a possible deviation of ±1.5 percentage points. The rate of inflation in October was 13.2%, up 0.6 percentage points on the previous month. The rise was mainly due to the increase in the contribution of the base rate and food prices to 4.8 and, respectively, 4.7 percentage points. The contribution made by the regulated prices was slightly over on September (3.4 percentage points).

● TUESDAY, December 29

New legal provisions on pensions 

The persons who reached retirement, but do not possess documents showing the length of service for different reasons, while the employer’s archive was lost will have the pension calculated based on the average salary of persons of the same profession. A bill to this effect was passed by Parliament in the first reading, The amendment made by the legislature refers to persons who, for particular reasons, such as fire, armed conflict, loss or destruction, do not possess documents showing the amount of money earned while working and the taxes paid on it.

● WEDNESDAY, December 30

Fuel prices go down again 

A number of oil companies announced new decreases in the prices of gasoline and diesel fuel. Starting with December 30, motorists will pay by about 0.40 lei less per liter of gasoline and by about 0.30 lei less per liter of diesel fuel. According to a communique of the National Agency for Energy Regulation, the average selling price of gasoline fell from 17.35 lei to 16.94 lei per liter, while of diesel fuel – from 14.95 lei to 14.64 lei per liter. The last time the retail prices of gasoline and diesel fuel were reduced on December 11, 2015, when they were decreased by 0.40 lei/liter and, respectively, 0.60 lei/liter on average. The calculations presented to the Agency by the oil companies show the decline in fuel prices at gas stations is due to the reduction in the import prices of gasoline and diesel fuel.

● THURSDAY, December 31

Dorin Chirtoaca: We borrowed money from banks so as to be able to pay salaries 

Mayor of Chisinau municipality Dorin Chirtoaca admits that they took out loans from banks so as to be able to pay salaries to employees. The issue was developed in the talk show “Place for dialogue” on Radio Moldova station. “We are forced by the situation to take out banks loans as we must pay salaries and support investment projects. This happens because the Government has an enormous debt to the Chisinau City Hall. It always happened during my mayoralty. The Government is either late or cuts the financial resources that it should allocate to the capital city. I think there are also political reasons behind,” stated Chirtoaca.

Contract for supply of natural gas with Gazprom extended 

The terms of the contracts for the supply and transportation of natural gas through Moldova, signed between “Gazprom” and “Moldovagaz”, were extended until December 31, 2016. In a press release, “Moldovagaz” says that for the contracts to be extended, the sides signed additional agreements to the contract concerning the conditions of supplying natural gas to the Republic of Moldova in 2007-2011 and to the contract concerning the conditions of transporting natural gas through the Republic of Moldova of 2011. Thus, the same European formula will be used in 2016 to set the price of natural gas for Moldovan end-users. The formula is based on the average arithmetic value of the selling price of natural gas set by “Gazprom” for the European countries and the quotations of oil products. The other contract conditions also remained unchanged.

● SATURDAY, January 2

National Bank: annual monetary policy rate remains at level of 19.5% 

The Executive Board of the National Bank of Moldova decided by a unanimous vote to maintain the monetary policy rate at the level of 19.5% a year. The decision is aimed at anchoring the inflationist anticipations so as to curb and maintain the rate of inflation around the target of 5.0% in the medium term, with a possible deviation of ±1.5 percentage points. In a press release, the central bank says exports and imports in the first ten months of 2015 decreased by 16.1% and 24.1% respectively compared with the corresponding period last year. The volume of freight declined by 17.6% on January-October 2014. Instead, the industrial production grew by 3.5%. However, the remittances transferred to Moldova through banks fell by 31.5%.

2015 state budget incomes were higher than in 2014 

The State Main Tax Inspectorate said the amounts collected into the state budget in 2015 are higher than the projections. The Inspectorate’s head Ion Prisacaru said that over 10.2 billion lei was collected into the state budget (100.2%), which is by about 2 billion lei more on 2014. According to the Inspectorate, the sums collected into the budgets of the territorial-administrative units represents 101.8%, into the state social insurance budget – 100.1% (+about 1bn lei on 2014), while into the mandatory health insurance funds – 101.3% on a year before. Thus, the incomes of the national public budget amounted to 24 billion lei, an increase of about 3 billion lei on 2014.

Thin layer of snow does not protect crops, agricultural producer 

If the temperatures continue to be low for a period, the crops could be affected, chairman of the Grain Producers Association Nicanor Buzovoi has told. According to him, the thin layer of snow now does not protect the wheat. Nicanor Buzovoi noted the wheat sown in autumn hasn’t been affected by the latest frost. “It is too early to say something now. If the frost persists, it will definitely affect the winter crops. The situation is rather critical when there are -15 degrees Celsius. The crops that manage to accumulate sugar and to develop strong roots can resist,” he said.

Circular about temporary implementation of state budget in 2016 

The costs for capital investments this year will be covered only for the passing objectives of 2015. The budget-funded employees will receive the annual bonuses and the announced salary rises only if the state budget for this year is approved. Such provisions are contained in a circular about the temporary implementation of the state budget in 2016 issued by the Ministry of Finance. The Ministry explains it issued the circular because the 2016 state budget hasn’t been adopted. The document provides that money for capital repair works will be allocated only for the passing tasks of 2015, which are being carried out and for which contracts were signed and are yet to be signed in 2016.