● MONDAY, July 25
Over 40 Moldovan companies authorized to export fruit to Russia
More than 40 Moldovan companies obtained the right to export fresh fruit to the Russian Federation. The announcement was published on the website of Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor). Rosselkhoznadzor specifies that this right was given as an experiment, under the guarantee of the National Food Safety Agency, following a visit paid by Russian experts to Moldova recently.
Efficiency of subsidization of agriculture risks remains at low level, study
Even if the state subsidizes the insurance premiums in agriculture, the number of producers that insure crops and animals remains at the same level, shows a study carried out by the Institute for Development and Social Initiative “Viitorul”. In 2015, there were submitted 137 applications for subsidizing agricultural insurance. There were selected 128 beneficiaries. The insured area totaled 11,739 hectares, which is 0.56% of the crop fields, while the number of insured animals came to 5,497 or 0.35% of the total number of animals recorded at the end of 2015.
● TUESDAY, July 26
Moldova managed to do almost nothing in energy sector during 25 years, opinion
Moldova managed to do almost nothing in the energy sector during 25 years of Independence, with small exceptions. It remained vulnerable and dependent on the suppliers from the East, exactly how it was before the Independence. In an article published by IPN, the ex-director of the National Agency for Energy Regulation Victor Parlicov says the greatest accomplishment in the energy sector was achieved when Vladimir Voronin was President of Moldova, when the construction of the Tocuz-Mereni gas pipeline was forced. According to him, by this gas pipeline, the authorities of the Transnistrian region were deprived of the possibility of disconnecting the gas for Chisinau whenever they wanted. When this pipeline was built, Chisinau started to be supplied with gas directly from the transit gas pipeline. “But this is our only major accomplishment in the energy sector,” stated the expert.
Wheat prices do not cover producers’ costs
The producers sell food wheat at the price of 2,200 lei per tonne (2.2 lei/kg), while the price of fodder wheat is 2,050-2,150 lei/tonne, depending on districts, said the chairman of the National Association of Agricultural Producers “UniAagroProtect” Alexandru Slusari. According to him, the prices are lower than in the neighboring states Ukraine and Romania and do not cover the production costs. In a discussion held at the Ministry of Agriculture and Food Industry, Alexandru Slusari noted that in a month or a month and a half, the prices could be slightly higher. However, owing to the lack of money and the accumulated debts, many agricultural producers have to sell the wheat immediately after harvesting it.
German investor to create 1,500 jobs in Moldova
The German company Coroplast intends to create about 1,500 jobs in Moldova during the next few years. The investments are planned to total about €10 million. Prime Minister Pavel Filip on July 26 discussed the measures promoted by the Government to support the business sector with representatives of the German company. According to the executive’s press service, the Premier spoke about the next steps that will be taken to further improve the business sector and to facilitate foreign investment in Moldova. “We are aware that we must attract investment for developing the country and for making it attractive,” stated Pavel Filip.
● WEDNESDAY, July 27
IMF staff and Moldovan authorities reach staff-level agreement
IMF staff and the Moldovan authorities have reached a staff-level agreement on an economic reform program to be supported by a three-year Extended Credit Facility and Extended Fund Facility (ECF/EFF) arrangement. Access under this arrangement is proposed to be set at 75 percent of Moldova’s quota in the Fund (SDR 129 million, or about US$ 179 million). The information was provided by the IMF Office in Moldova after a delegation of IMF experts visited Moldova earlier. An International Monetary Fund mission, led by Ivanna Vladkova-Hollar, held discussions with the Moldovan authorities on an IMF-supported economic program in Chisinau from July 5-15, 2016 and subsequently in Washington.
Iurie Chirinciuc: We have many joint projects with Romania
The Republic of Moldova and Romania have a number of joint projects related to the construction and rehabilitation of roads and bridges between the two countries, Minister of Transport and Road Infrastructure Iurie Chirinciuc stated in the talk show “Place for dialogue” on Radio Moldova channel. According to the minister, the biggest project is to build a bridge over the Prut River, through which the Ungheni-Iasi-Targul-Mures highway will pass “It will be a European road, with four lanes, to which we will have access in two years. The distance between Chisinau and Iasi will be by about 30 km shorter. It is important that the construction works will start in our country. The costs are covered by the Romanian side,” he noted.
Pavel Filip: Moldova is officially attractive again at international level
Moldova is officially attractive again at the international level. This is how Prime Minister Pavel Filip commented on the International Monetary Fund’ announcement about the reaching of a staff-level agreement with the Moldovan authorities. “It is an important step for the economic credibility of Moldova. Our reforms of the last few months have been validated and new steps are to be taken to modernize the country. The reforms continue and will result in decent living conditions for the people. I want to thank my colleagues from the Government and the parliamentary alliance for the fact that we together managed to stabilize the country at political and economic levels,” the Premier wrote on his Facebook page.
2016 budget must be modified before approval of program with IMF, experts
Until the Executive Board of the IMF approves a new cooperation program with the Moldovan authorities, the Government must amend the 2016 state budget, consider experts of the Institute for Development and Social Initiative “Viitorul”. “The 2016 budget provides for revenues of 52.7 billion lei. This figure, even if Moldova has a program with the IMF and even if all the financing promised by the European Commission and other donors is provided in the form of budget support, is unreal,” “Viitorul” expert and ex-MP Veaceslav Ionita said in a debate. Expert Sergiu Gaibu said the external donors whose money go to implement investment projects in Moldova could review some of the points of the financing agreements signed earlier with the Moldovan authorities, which is normal given that things changed.
Experts forecast 5% economic decline in Transnistria
The economic situation in the Transnistrian region continues to worsen. After the region’s economy contracted by about 20% in 2015, this will continue to decline in 2016 too and is expected to decrease by about 5-6%. The estimates were made by the Independent Analytical Center “Expert-Grup” in the most recent number of the “Regional economic magazine: the Transnistrian region”, which was published with the assistance of the Support to Confidence Building Measures Program that is financed by the EU and implemented by UNDP. According to the experts, the economic recession of 2016 will be caused by the reduction of the three main components of the aggregated demand. These are: the 5% decline in the consumption of households amid the reduction in salaries and remittances; the decline in the regional administration’s consumption amid the enormous budget deficit that is estimated at about 15% of the 2016 Gross Regional Product and the reduction in the capital investments of companies by 10-12% amid the limitation of access to loans and the exodus of capital from the region.
● THURSDAY, July 28
Two new areas to benefit from support within Competitive Agriculture Project
The Cabinet requested Parliament to ratify the financing agreement (second additional) between the Republic of Moldova and the World Bank’s Independent Development Association for implementing the Competitive Agriculture Project, signed on July 8, 2016. Minister of Agriculture and Food Industry Eduard Grama said the value of the additional financing is US$10 million. The project supports activities aimed at increasing the competitiveness of agricultural producers, improving access to export markets, modernizing the food safety system and integrating the sustainable land management practices, including by grants.
Patent holders urged to carry out independent activities
The Cabinet approved amendments to the Law on the Entrepreneur’s Patent, suggesting that the patent holders should carry out independent activities. These activities will be registered by a notification to the mayor’s office or the local office of the State Tax Service, based on an application. The cap on revenues will be doubled from 300,000 lei to 600,000 lei a year. The sales tax will be 1%, but not less than 3,000 lei a year. Those who will perform independent activities will be exempted from paying local taxes, such as the tax for laying out the territory, the tax for commercial units/service provision. According to the authors of the bill, the entrepreneur’s patent was instituted in 1998 with the aim of supporting private individuals to start own businesses so that these later developed the business under different legal and organizational forms, such as individual enterprise or limited liability company. International practice shows that such regulations are no longer used. The European system of small business regulation and stimulation provides for a series of rights and obligations designed to strengthen competition and include the entrepreneurs from this segment into the economic circuit based on general principles, without distorting state revenues.
Post of chairman of the Chamber of Trade and Industry filled
The deputy chairman of the Chamber of Trade and Industry Sergiu Harea was promoted to the post of chairman of the institution. The decision was taken in an extraordinary meeting of the Chamber’s Congress. Sergiu Harea has higher education in economy, finance and accounting. He earlier worked for a number of public institutions. In 1999, he was hired at the Chamber of Trade and Industry as a consultant and was afterward promoted up to deputy chairman.
Procedure for starting trading businesses simplified
The coming into force of the amendments to the Law on Domestic Trade on July 19 will make the starting of a business possible in one day only. So far, an authorization for working in trade was issued during 70 days on average, Deputy Minister of Economy Vitalie Iurcu told a news conference. The trading business can be now started following a notification submitted to the local public authorities. By the notification, the business entity will inform the local authorities about the planned business and its location. This will also declare on own responsibility that it meets the legal requirements for operating in the trade sector and will pledge to obey the law.
Changes to legislation that regulations subsidization in agriculture
The agriculture subsidization fund will be renamed the National Fund and will represent at least 4% of the annual state budget incomes. Such provisions are contained in a legislative initiative that was passed by Parliament in the first reading on July 28. Unaffiliated MP Ion Balan, who is the author of the bill, said they suggest implementing a new monitoring system so as to prevent the artificial rise in investment costs. Software will be designed to monitor the selling prices of agricultural machinery and devices.
● FRIDAY, July 29
Germany offers €2m for technical professional education
The Government of Germany offers Moldova €2 million for developing technical professional education by dual system that combines apprenticeships in a company and vocational education at a vocational school. An agreement to this effect was signed between the Ministry of Education, the Ministry of Agriculture and Food Industry and the German Agency for International Cooperation on July 28. The project will be implemented in 2016-2018. For the purpose, the project team and the two ministries will intensely cooperate with the private sector. The dual education system will enable the future specialists to learn the skills needed in the job and to train in accordance with the employer’s requirements. Thus, 30% of the training program consists of theory classes taught at the vocational schools, while 70% of practical courses at the company.
Moldova-Russia roadmap discussed in Moscow
Expert-level consultations were held in Moscow on the draft roadman for restoring and stimulating the commercial relations between Moldova and Russia for 2016 – 2017. According to the Ministry of Economy, the groups of experts discussed a wide range of problems related to the commercial-economic relations between the two states that were included in the roadmap drafted by the sides. In particular, they conferred on the export of Moldovan season vegetal products and animal products, the extension of the list of goods that can be supplied to Russia, including wines and cans, and aspects of the bilateral cooperation in energy, transport, agriculture, industry, investments and migration.
Results of administration and denationalization of public property in 2015
In Moldova, there are 251 state-run companies, six of which are located abroad. In 11 joint stock companies, the state owns over 25% of the share capital. The information was presented by Minister of Economy Octavian Calmaca in Parliament, while reporting on the administration and denationalization of public property in 2015. According to the minister, the value of the public property is about 25 billion lei. The net profit in 2015 rose by about 11% on 2014. Significant rises in revenues were reported by Air Moldova, Moldelectrica and Moldova’s Post Office. The sales revenues of 75 state-run companies decreased, mainly at Moldova’s Railways, the Chisinau Glass Factory and the Marculesti International Airport. Among the reasons are the modification of circumstances on the domestic and foreign markets and the depreciation of the national currency.
Parliament names four members of Supervisory Board of National Bank
The legislative body on July 29 appointed Dumitru Ursu, Alexandru Pelin, Valeriu Iasan and Vadim Enicov as members of the Supervisory Board of the National Bank of Moldova. The Supervisory Board is a collegial board responsible for the organization of an efficient system of independent public surveillance of the work of the central bank. Its members are named for a seven-year term, but this can be extended at the suggestion of the Parliament’s commission on economy, budget and finance.
Conventional unit will be equal to 50 lei
A conventional unit will be equal to 50 lei. An amendment to this effect was passed by Parliament on July 29. Initially, bill author – the Ministry of Justice – proposed that the conventional unit should represent 1% of the average monthly salary set for the period when the offense was committed. Raisa Apolschii, the head of the parliamentary commission on appointments and immunities, said the MPs suggested a number of amendments, but it was ultimately decided to set a fixed sum of 50 lei.
