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

MONDAY, January 22

Current government managed to ensure economic stability, not yet development, opinion


The current government managed to ensure economic and social stability, but the situation concerning development is much more difficult, political analyst Anatol Taranu stated in the program “Reply” on Prime TV channel. “The Government here had more drawbacks and a few accomplishments. These accomplishments could not imprint the element of development to the Moldovan economy and the social sphere,” said Anatol Taranu. He noted the Republic of Moldova has a good Prime Minister as this this managed to stabilize the situation, but he expects that Pavel Filip will also ensure development. The case of the mayor of Orhei Ilan Shor is a serious shortcoming of the current Government.

420 national companies to take part in “Made in Moldova” exhibit

As many as 420 companies from Moldova announced their participation in this year’s edition of the exhibition and fair “Made in Moldova” that will take place at “Moldexpo” between January 31 and February 4. Besides companies from Moldova, the exhibition will involve companies from another ten countries, including Ukraine, Belarus, Russia, Romania, Turkey, and Iran. Sergiu Harea, chairman of the Chamber of Trade and Industry, told a news conference that such a record figure, compared with 370 companies that took part in the exhibit in 2017, shows that this event has gained in popularity. The participating companies will display their products in three pavilions that are 3,100 square meters in area.

Recommendations concerning Moldovan-Russian relations amid new geopolitical realities

The experience of the Moldovan-Russian cooperation during many years, the good results in different areas and the multitude of mutually advantageous actions are not fully used by the two states. The renewal of the bilateral dialogue should be based namely on these postulates and should involve a respectful attitude to Moldova’s external development course. The development of a new format of the Moldovan-Russian cooperation will be possible specifically in such conditions. These are the conclusions of a study of the Moldovan-Russian relations in the context of the new geopolitical and eastern neighborhood realities that was conducted by the Foreign Policy Association (APE). Study author Natalia Stercul, APE programs director, in a press club meeting said the problematic areas related to the closing of positions on the fundamental aspects of the Moldovan-Russian relations need to be reviewed. A basis for political confidence should be developed, which would be the key to the success of the subsequent cooperation. Ambiguity, political opportunism and instigation in the political relations between the two states should be avoided. This will take the relationship between Moldova and Russia to a new qualitative level and will contribute to establishing a solid basis for the renewed cooperation platform.

False information is disseminated about gas price formation methodology, regulator

Inaccurate and even false information about the methodology of forming the natural gas price is disseminated in the public sphere, the National Agency for Energy Regulation has said. Under the tariff methodology and the Law on Natural Gas, the regulated prices and tariffs in the natural gas sector are determined as annual average values. Thus, the regulated tariffs and prices are calculated and approved based on the forecast value of the annual average price of natural gas, not on half-yearly or quarterly prices. However, the institution will analyze the results of the activity on the natural gas market in 2017, including the import price forecast for 2018, and will then approve the new natural gas supply tariffs. The assessment will take into account all the factors that are decisive in determining the formation of natural gas prices, including the evolution of the exchange rate and import price.

TUESDAY, January 23

Simplified procedure for obtaining work permit expected to contribute to investment attraction

The simplification of the legislation on the obtaining of the right to stay and work permit by foreigners would contribute to attracting investors, said experts invited to the program “Issue of the Day” produced by Canal2 channe. Director of the Bureau for Migration and Asylum Olga Poalelungi said the aspects that refer to the issuing of documents for foreigners were problematic because the given duties were distributed among a number of institutions. The modification of the legislation that eases the obtaining of the right to stay and work permit for foreigners is very beneficial to the environment and for attracting foreign investors. “The mechanism defined in the law envisions a very simple procedure for issuing documents to foreign investors, depending on the value of the real investment in the country’s economy and on the number of newly created jobs,” stated Olga Poalelungi.

● WEDNESDAY, January 24

Experts recommend reforming public procurement system

The reform of the public procurement system is needed in order to adjust the national system to the international standards and the Community acquis, under the commitments assumed by ratifying the Association Agreement with the EU. For the public procurement system to be efficient, an appropriate legal framework, corruption prevention institutions and a functional and effective appeal system are needed, in the interests of all the players, director of the Institute for Development and Social Initiative “Viitorul” Igor Munteanu stated in an event held to present the results of the monitoring of the decisions of the National Contestation Agency. “Viitorul” expert Viorel Pirvan said that during five months the Agency rejected 52% of the challenges, admitted 19% and partially 24%. Over half of the challenged procurement procedures refer to goods, while 10% to services. “The analysis of decisions showed that in some cases the National Contestation Agency has a selective attitude to the examined challenges submitted by economic operators and this has an impact on the adopted solutions,” stated the expert.

Moldova’s request to increase quotas on export to EU under examination

Moldova’s request to review the export quotas up was received and is being examined. A response will be transmitted to the Moldovan authorities in the immediate period, European Commissioner for Trade Cecilia Malmstrom stated in a meeting with Deputy Prime Minister for European Integration Iurie Leanca, who is in Brussels on a visit. According to the Government’s press service, Iurie Leanca and Cecilia Malmstrom agreed the priorities for the immediate period. Among these is the obtaining of an authorization for exporting Moldovan products of animal origin to the European market. The sides highlighted the importance of observing the intellectual property rights and of increasing the number of national companies with export potential to the EU.

Moldova borrows European waste monitoring norms

The Cabinet approved the list of waste following the transposition of the EU regulations on environment and waste management to the national legislation. By the Association Agreement with the EU, Moldova pledged to ensure strict monitoring and correct reporting of data concerning generated waste. Also, Moldova is a party to the Basel Convention and is obliged to monitor and report on the exported waste.

THURSDAY, January 25

Veaceslav Negruta: Moldova has one of highest offshorization levels of economic activity

The Republic of Moldova has one of the highest offshorization levels of the economic, social and political activity, Veaceslav Negruta, Transparency International expert, stated in the program “Politics” on TV8 channel. According to him, in the Republic of Moldova, besides everything that means public procurement, starting with pharmaceutical preparations and stationery, there are contracts with companies that have beneficiaries from offshore areas. A large part of the buildings have offshorized persons behind and it is about very large sums of money.

Public finances will be managed based on principles of good governance

The executive approved the public internal financial control development program for 2018-2020 and the plan of action for implementing this. The documents will enable to manage public finances based on the principles of good governance. By implementing these documents, the Government aims to improve public administration, diminish bureaucracy, minimize corruption risks and provide high-quality services for the people and the business community.

Causeni subzone of FEZ Balti to be modernized

In 2018, the Causeni branch of the Free Economic Zone (FEZ) Balti will be renovated by building networks, communications and access ways and by laying out the territory. For the purpose, the Cabinet decided to include the project “Opportunities for attractiveness of investments in the economy of the South Development Region” in the list of priority projects financed by the National Regional Development Fund for 2017 -2020.

SA “Moldtelecom” could be exempted from paying dividends for 2017

The Ministry of Economy and Infrastructure suggests that the joint stock company “Moldtelecom” should be exempted from paying dividends on the profit made in 2017. A draft decision proposed for public debates says the exemption will ensure the possibility of increasing investments in developing the provided services, of maintaining the high quality of services and of increasing profitability. The authors of the decision say “Moldtelecom” offers the population the whole range of telecommunications services, such as landline and mobile telephone, Internet, data transport and digital television. The analysis of revenues in 2015-2017 shows that the turnover on the fixed-line telephone market decreased amid the about 11% decline in sales. The application of lower tariffs for landline telephone services than the real costs is one of the major problems faced by the company during many years. These cover only 52.7% of the costs.

Restrictions related to African swine fever lifted in Palanca and Tudora

The restrictions determined by the African swine fever in the protection area – Palanca village and in the supervision area – Tudora village were lifted by a decision taken by the Stefan Voda District Council based on the results of laboratory tests that showed the virus was absent. According to the Agency, sentinel pigs were introduced in Palanca, where a hotbed of African swine fever was identified on January 2 this year. The blood serum samples taken from these pigs in 14 days showed the virus was not present. The restrictions were thus lifted. Only the restrictions concerning the repopulation will remain valid for another 45 days of the introduction of sentinel pigs.

Young specialists in Transnistria to be exempted from paying income tax

The supreme soviet of the Transnistrian region voted to exempt the young professionals who work in such areas as healthcare, education and social assistance in rural areas from paying the income tax. The concession will be valid for five years of the moment the job is taken up. Furthermore, the initiative envisions special conditions for individual entrepreneurs working in agriculture.

Nine communities to get grants to implement economic projects

Nine localities in Moldova will receive grants to implement economic projects and start new businesses. The communities will get by US$ 25,000 from the Government of Switzerland and from the contribution of the local authorities, associations of native people and local business entities. According to the manager of the project “Migration and Local Development” Olesea Cazacu, the communities have fewer chances of developing without a viable economic environment. UNDP provides a new approach to the development of the local business community, namely improvement of infrastructure, bringing together of producers from a particular area, creation of local brands, etc. for making the settlements more attractive for current entrepreneurs and potential investors.

● FRIDAY, January 26

Daniel Ionita: “Transgaz” is interested in purchasing “Vestmoldtransgaz”


The national gas transportation and distribution company “Transgaz” of Romania expressed interest in purchasing the Moldovan company “Vestmoldtransgaz” that was founded to build the Ungheni-Chisinau gas pipeline, Romania’s Ambassador to Moldova Daniel Ionita stated in the program “In Depth” on ProTV Chisinau channel. According to the ambassador, the Romanian company submitted a bid to this effect and was the only bidder in this project. There is major interest on both sides of the Prut in having this gas pipeline built by this yearend.

Housing sector’s debts for heat should be frozen, expert

The historical debts to the heat supplier of the housing sector should be frozen so as not to block the reorganization of the associations that manage the sector, said expert of the Institute for Development and Special Initiative “Viitorul” Victor Parlicov. According to him, over 2.5 billion lei in debts to the heat supplier have accumulated during 26 years and the housing sector accounts for 98% of these debts. In a public debate, the expert said 80% of the associations that now manage the housing sector have an outdated legal form. Their reorganization into Associations of Condominium Co-owners is blocked as these are obliged to assume the historical debts of the buildings.

Revenues generated by state-owned property expected to be larger in 2018

The state-owned companies are to transfer 28 million lei deductions from the net profit made in 2017 to the state budget. The dividends on shares held by the state in joint stock companies this year are expected to total 69.8 million lei. Besides, the 2018 state budget will also include other revenues from the property owned by the state, such as leasing out of natural resources, equipment and non-agricultural land and interest on budgetary accounts.

World Bank reiterates support for strengthening Moldova’s energy security

The bill on transparent energy market based on which the World Bank will offer Moldova a loan of €70 million is close to being finished. The subject was discussed in a meeting of Minister of Economy and Infrastructure Chiril Gaburici and a team of World Bank experts led by the WB Country Manager for Moldova Anna Akhalkatsi, who are paying a working visit to the Republic of Moldova. Chiril Gaburici reiterated that the ensuring of energy security, including by diversifying the access ways to energy resources, is one of the priorities. This objective can be achieved by implementing projects to interconnect the thermoelectric and natural gas systems of Moldova and the EU though Romania’s systems.

Cash transfers from abroad up 13% last December

The money transferred from abroad to private individuals in Moldova through licensed banks in December 2017 came to US$ 106.22 million, up 13% on December 2016. In the course of 2017, the cash transfers totaled US$ 1.199,9 billion, an increase of 11.2% on a year before. According to the data presented by the National Bank of Moldova on its website, last December the transfers in favor of private individuals came from three areas: the EU (33.8%), the CIS (33.2%) and the rest of the world (33%).

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