● MONDAY, July 27

Those who work unofficially encouraged to denounce employer

The State Tax Inspectorate of Chisinau municipality calls on the employees not to accept being paid salaries unofficially. “The underground economy undermines the financing of social security systems, hampers the implementation of coherent economic policies and can lead to distortion of social equity,” it is a said in a communique of the Inspectorate. The Inspectorate warns the people about the disadvantages of illicit work such as the lack or reduced leave allowance, lack or limitation of the right to go leave and to be away from work on particular events, lack of insurance against particular risks, lack of allowances for temporary incapacity for work, maternity leave and child benefit. Those who are employed illegally also do not enjoy the protection provided by the legislation that regulates the right to work, the right to association and the right to negotiate an individual work contract and are limited in their right to get a bank loan.

Objectives set through budget policies in 2014 were 64% achieved

Both the planning and fulfillment of the 2014 state budget were based on expenditure programs and sub-programs and this fact contributed to a better monitoring of the way in which the executive achieved the government objectives, says a study carried out by the independent think tank “Expert-Grup”. The authors established that the objectives set in these programs were 64% fulfilled. “Expert-Grup” considers the framework for managing the public debt is rather weak and poses budget instability risks. Speaking about the problem of allocation of financial resources from the Government’s reserve fund, expert Iurie Morcotilo said the practice of redirecting money from this fund, intended for emergencies, to different events and trips hasn’t been excluded.

Mediation center under Chamber of Trade to start work in autumn

The mediation center under the Chamber of Trade and Industry will begin work in autumn, when the new law on mediation takes effect, the center’s director Andrei Balan announced in a meeting with a group of mediators on July 27. Andrei Balan explained the particularities of the new law on mediation, such as exemption from paying the state tax, mandatory fulfillment of the reconciliation deals in mediation, etc.

● TUESDAY, July 28

National producers present at largest footwear exhibition in world

Five national companies from both sides of the Nistru River are taking part in the largest footwear and accessories exhibition in the world held in Germany’s Dusseldorf on July 29 – 31. The common stand of Moldova displays products by “Oldcom”, “Vitalie Burlacu”, “Cristina” and by “Floare” and “Tighina” based in Transnistria. The participation in the exhibition was organized by the Light Industry Employers Association with support from the EU and UNDP, within the Support to Confidence Building Measures Program. The exhibition in Dusseldorf is a large-scale one. This year it will bring together 880 brands. The exhibitors are able to strengthen their visibility on the international market and to establish business contacts.

Budget amendment must be top priority of new Government, ex-minister

The amendment of the budget must be the top priority of new Government. The survival of the budget system depends on the reassessment of the macroeconomic framework, the disposable finances, the costs and financial consolidation, says an analysis presented by the Independent Analytical Center “Expert-Grup” on July 28. Analysis author, ex-minister of finance Veaceslav Negruta, who returned to the NGO sector after leaving the Government, said that Moldova entered serious financial difficulties after the development partners suspended the provision of financing. “The failure to get 3 billion lei in foreign financing (grants and loans that were to be offered to Moldova) means that the Government lacks financial coverage and this absence will become more pronounced. There is no possibility of substituting the external financial resources that will not enter the budget as the country does not have access to lending resources on international markets. Moreover, the internal lending resources became more expensive. The weighted average rate of state securities on the primary market, which is the interest rate paid by the government for borrowing at internal level, reached 16.3% in the first half of this year, as opposed to 5.5% at the beginning of 2014,” stated Negruta.

● WEDNESDAY, July 29

Number of issued licenses allowing using radio frequencies on the rise

The number of applicants for licenses allowing using radio frequencies of the limited state resources has increased. According to the National Regulatory Agency for Electronic Communications and Information Technology, 42 such licenses were issued in the first half of this year, an increase of 44% compared with the corresponding period last year. In most of the cases, the licenses were issued to providers of broadcasting services and retransmission of audiovisual program services. At the request of the providers of electronic communication networks and services, the Agency issued 16 licenses for using numbering resources based on which there were allocated 209,100 telephone numbers.

Strike at Moldova’s Railways

Employees of the state-run company Moldova’s Railways are protesting against the two-month delay in paying salaries. The company’s director Vladimir Cebotari said the protest is mounted by units from different subdivisions of Moldova’s Railways and the company’s operational activity is not affected. “There is a spirit of protest at the company. The situation is old as we paid salaries with a delay of 60 days earlier too, but we pay them. We daily make payments, depending on the amounts we collect,” said the director.

● THURSDAY, July 30

Energy Community Secretariat welcomes ANRE’s decision to adjust tariffs

The Energy Community Secretariat welcomes the Moldovan Regulatory Authority (ANRE) Board’s decision of July 18 to increase the electricity and gas tariffs to end-consumers towards more cost reflective prices and adopting tariffs for access to electricity distribution networks. The ANRE makes reference to the information published on the Energy Community Secretariat’s website, which says that the adjustment of the electricity end-user tariffs was necessary to avoid a possible security of supply crisis, escalated by the recent depreciation of the Moldovan currency. The Secretariat’s Deputy Director Dirk Buschle said: “ANRE’s decision constitutes a necessary pre-condition for stabilizing Moldova's energy sector, but further, more fundamental reform steps will need to follow.”

Seven groups of producers get US$6 million worth of grants

Seven groups of producers on July 30 received certificates confirming that they obtained grants to the total value of US$6 million for implementing investment projects within the program of grants for post-harvest infrastructure of the World Bank-funded Moldova Agriculture Competitiveness (MAC-P) Project. The seven groups of producers took part in the third call for grants held in April – June 2015 and made investments of about US$4 million, US$1.6 million of which represents grants. The third call for grants involved 16 cooperatives of agricultural entrepreneurs. The assessment and selection commission accepted 14 applications for financing. Financing was provided for building seven cold storage facilities with a capacity of 170 to 1,500 tonnes in Ialoveni, Causeni, Edinet (two), Cahul, Ungheni, and Hancesti.

Pellet factory set up with support of Government of Japan

The first factory making pellets from biomass, built with the assistance of the Government of Japan, was put into operation in Pascani village of Criuleni district. The event coincided with the 15th anniversary of the launch of the Moldovan-Japanese project of assistance to non-privileged farmers 2KR. The pellet factory will supply raw material for heating to 25 nursery schools and schools that were outfitted with special boilers from the money provided by the Government of Japan. “Moldova pledged to make sure that the biomass represents at least 25% of the used energy resources by 2020. Moldova has biomass to cover even 30% of the used energy resources,” said the technical director of the Unit for Implementing and Administering the 2 KR Project Vasile Bumacov, ex-Minister of Agriculture and Food Industry.

● FRIDAY, July 31

Agricultural package passed in first reading

The package of legislative amendments to support the famers was unanimously passed by Parliament in the first reading in the evening of July 30. It is not yet clear when the bill will be debated in the second reading given that the Government’s endorsement is needed for some of the bills from the package, while today, July 31, the MPs meet for the last time before the vacation, which will last until September.One of the bills passed in the first reading envisions the application of the zero income tax for economic entities working in agriculture, regardless of the organizational form, during three consecutive fiscal periods, starting with January 1, 2015. The agricultural producers will have to calculate the income tax, but will not pay the calculated sums into the budget on condition that they use this money for investment purposes and for purchasing the resources needed for agricultural production, in accordance with the list approved by the Government.

Parliament votes to create virtual IT parks and to offer concessions to them

The legislative body on July 31 adopted a bill to set up virtual IT parks whose goal is to create better conditions for the activity of this important sector and to provide greater opportunities for attracting investments and incomes into the state budget. The law also provides significant concessions for the IT sector. The document, which was passed in the first reading, stipulates that the IT companies will be exempted from VAT and customs duties on the import of computation equipment and will pay a common tax of 7%. Furthermore, the new legal framework offers conditions for systematizing inspections, which can be carried out only once in three years, legalizing the salaries paid ‘in envelope’, taking the IT companies out of the underground economy, etc.

● SATURDAY,  August 1

 Moldova implements European standards on packaging 

The recycled plastic materials and articles intended to come into contact with food must be sufficiently inert to preclude substances from being transferred to food in quantities large enough toendanger people’s health or can modify the organoleptic properties of the food. Such provisions are contained in the sanitary regulations on recycled plastic materials and articles intended to come into contact with food that were approved by the Government. According to the Ministry of Health, the safety of food contact materials requires evaluation as chemicals can migrate from the materials into food. The materials should be manufactured in compliance with EU regulations, including good manufacturing practices, so that any potential transfer to foods does not raise safety concerns, change the composition of the food in an unacceptable way or have adverse effects on the quality of foods.

Rise in electricity tariffs can lead to vicious circle, opinions 

The rise in electric power tariffs was inevitable at a time when the rate of inflation rose by almost 47% in 2009. Such a decision will yet lead to successive price rises that will affect first of all the socially deprived groups of people. The subject was discussed in a roundtable meeting centering on the improvement of the energy efficiency program for families on low incomes. Technical director of the company “Termoelectrica” Iurie Razlovan said the rise in tariffs does not mean that the money for public utilities will be collected. “We thus enter a vicious circle - the tariffs were adjusted, but money is not collected. We must understand that this will lead to debts and to problems inside companies, and a balance should be established here,” he stated.

Farmers can apply for compensations from August 1 

The farmers who sustained losses as a result of the ban imposed by Russia on the import of Moldovan fruit in 2014 can submit applications for compensations from August 1. The announcement was made by the Agency for Intervention and Payments in Agriculture. The special commissions set up in mayor’s offices will examine the applications submitted by farmers, will draw up the lists of applicants and will present these to the local services of the Agency by September 7. After verifying the eligibility of the submitted files, the applications and lists will be transmitted to the central specialized commission of the Ministry of Agriculture and Food Industry. In the end, based on the recommendations of the central commission, the Agency, during 15 workdays, will draw up the documents needed to transfer the compensations to the bank account of the applicant. The Ministry of Finance will make sure that the money is distributed.