● MONDAY, July 6

Acting economy minister mediates in disputes in activity of Giurgiulesti Port

Acting Deputy Prime Minister and Minister of Economy Stephane Bride discussed with representatives of the administration of Moldova’s Railways in the Giurgiulesti port possibilities of resolving the disputes that appeared between these and the administration of the Giurgiulesti Free International Port over the railway checkpoint. The dialogue was held within Stephane Bride’s fact-finding visit to the Port. The Ministry said that during a meeting with the Prime Minister earlier, it was decided to build a modern checkpoint in the Port in the near future. Until then, the two institutions are to coordinate the work of the temporary checkpoint set up there so that this does not affect their activity.

Bill providing for exemption of farmers from income tax finalized

The farmers remained with a significant dose of dissatisfaction after the July 6 meeting of the special commission for working out the package of legislative amendments in support of the farmers. Alexandru Slusari, chairman of the Union of Agricultural Producers Association of Moldova, said that even if the bill providing for the exemption of farmers from paying the income tax was finalized today, the agricultural producers are not fully satisfied as the agriculture subsidization fund wasn’t increased. “Regretfully, we are forced to accept the situation created as a result of the deprecation of the Moldovan leu. In this situation, which was created mainly artificially, we are told that the budget is tight. We understand this, but the farmers do not bear the blame for the actions or inaction of the state authorities,” said Alexandru Slusari. According to him, the authorities could identify possibilities for covering a part of the exaggerated costs incurred by the farmers and a more profound approach is needed.

● TUESDAY, July 7

Moldova needs to urgently have its energy sector reformed

A country in Moldova’s situation needs to urgently have its energy sector reformed as this sector works mainly in a nontransparent way, with less efficient bodies, said Deputy Director of the Energy Community Secretariat Dirk Buschle. In an interview for Radio Free Europe, Buschle said the reformation of the energy sector is an objective that must be achieved by a member state of the Energy Community. This objective became in fact a precondition for the financing needed, for example, for modernizing the energy infrastructure, to be provided by such institutions as the EIB, EBRD and the World Bank. “As a precondition, the investors demand reforming the sector and consider that the membership in the Energy Community, which Moldova has, it a guarantee that the reforms will be completed,” said Dirk Buschle. He noted that the legislation should be amended and the Energy Community is ready to provide support. Alongside the Moldovan authorities, the Energy Community Secretariat drafted a bill on electric power and natural gas in accordance with the so-called Third Energy Package. The bill is now debated publicly and, if it’s implemented, Moldova will take a step forward in the process of reforming the sector.

Electricity tariffs must be raised gradually, deputy minister

The electricity tariffs must be raised gradually, not at once and not in the amount requested by the providers, acting deputy minister of economy Valeriu Triboi said in a discussion with journalists on July 7. He stated that the authorities are trying to directly hold negotiations with the electric power producer – the Cuchurgan Power Plant – but until Moldova has only one supplier, it is vulnerable and foreign partners are being looked for to ensure interconnection with the EU’s electricity system. As to the demands to increase tariffs, the director of the National Agency for Energy Regulation (ANRE) Sergiu Ciobanu said that a thorough analysis is needed to set correct and transparent tariffs. Buts such an analysis can last for half a year or even a year. However, given the difficult situation in the country, the decision will be taken faster.

Platform finantare.gov.md updated

The platform finantare.gov.md was updated by being added two new financing lines intended for developing Moldovan companies. The lines include the loan provided by the Government of Poland and the grants offered by the Ministry of Foreign Affairs of Norway. The portal provides information about all the opportunities of financing businesses, including the interest rates, backers, participating banks or institutions, grace periods, available sum and other details. According to the Economic Council working under the Prime Minister, benefitting from the lending scheme, grants or subsidies, the Moldovan entrepreneurs can develop their businesses and significantly increase the quality of exports and the capacity to export, becoming thus more competitive and creating new jobs.

Transparency in decision-making process is ensured selectively at local level, NBA

Moldova has the legal framework needed to ensure a transparent and participative decision-making process, but this does not efficiently work at local level. Most of the local public authorities apply the information in decision-making selectively and fragmentarily, the jurist of the National Business Agenda (NBA) Viorel Parvan says in a comment. According to the jurist, among the most frequent deviations is the absence of a website with a relevant division, non-informing of the sides about the initiation of the decision drafting process and the lack of public debates. The local public authorities do not inform the community about most of the documents issued and adopted by these or inform the people selectively. The law on transparency in the decision-making process is not observed for a number of reasons, including the insufficient knowledge of the legal provisions, the lack of technical and financial resources and the absence of instruments for imposing penalties for non-observance of transparency in decision-making.

Construction inspectors to be penalized for inappropriate work

Democratic MP Marcel Raducan put forward an amendment by which punishment is instituted for construction inspectors who do inappropriate inspection work. According to the MP, one inspector should examine a construction during several days, while some of the inspectors issue even by 2-3 permits a day. The members of the Parliament’s commission on economy, budget and finance accepted the given amendment. Several years ago, the legislative body adopted legislative changes to de-monopolize construction inspection. Now the citizens can choose the inspector they want, but, according to Marcel Raducan, these inspectors put mainly stamps rather than fulfill their obligations.

Common register of real estate agents to be set up in Moldova

The Chisinau-based Union of Real Estate Agents announces the completion of the process of working out a common register of companies and specialists authorized to work in the area of real estate. The next stage is the unification of the databases of companies so that all the real estate offers are brought together on uniuneaimobiliara.md by the end of this month. The register is designed to support both those that sell or purchase real estate and the authorities. It will contribute to reducing the risks faced by consumers as anyone will be able to verify the professional reputation of the partners and to see their experience and qualifications.

● WEDNESDAY, July 8

State-owned companies should be privatized because they are not profitable, experts

Experts in economy consider the state-owned companies should be privatized, even if they are convinced that the process will be nontransparent. Such statements were made in the talk show “Politics” on TV 7 channel. Economic analyst Victor Ciobanu said that if the state-run companies are privatized, in four-five years they will contribute to forming the budget. “These companies work at a loss and do not bring money into the state budget. They should be thus denationalized. In time these enterprises become lower in value. Let’s take “Moldtelecom”, which in 1997 was put up for privatization for several hundred million dollars. Now it does not cost so much,” he stated. Doctor of Economy Sveatoslav Mihalache, though he is for privatizing the state-owned companies, considers that the privatization process will be very nontransparent. “I don’t think the privatization will be transparent with the current political class ruling the country,” he said.

Investment and export opportunities provided by Moldovan agriculture

Moldova has over 2.5 million hectares of farmland, which is more than the farmland possessed by even larger EU countries, and the agricultural sector, which now provides jobs to over 1/3 of the country’s population, has a much greater potential. Investments are needed for Moldova to increase the competitiveness of its agricultural products, to have more products with high value added and to reduce imports. The issue was discussed in the international conference “High Value Agriculture in Moldova: Investment and Export opportunities” that was staged by the Millennium Challenge Corporation and the Millennium Challenge Account (MCA) Moldova. In the opening of the conference, MCA Moldova executive director Valentina Badrajan said the Compact nears completion, as it ends this September. During the last five years, since its launch, a number of irrigation systems were rehabilitated and a very good road was built between Sarateni and Soroca.

First applications for financing from Polish loan accepted

The unit for implementing the assistance loan provided by the Government of Poland to Moldova received 18 applications for financing to the value of €20 million. Two of the applications, in the amount of €2.7 million, were accepted. Ludmila Juc, press officer of the Ministry of Agriculture and Food Industry, has told  that one applicant asked for assistance for renovating a pig farm in Floresti district, while the other one – for building a cold storage complex in Briceni district. Another ten files, for financing of €9 million, are being examined.

Liquefied petroleum gas gets cheaper

Four oil companies informed the National Agency for Energy Regulation (ANRE) that they will decrease the retail prices of liquefied petroleum gas by 0.5 lei a liter on average today and tomorrow, July 8 and 9. Another two companies already reduced the price of liquefied petroleum gas from 10 lei to 9.47 lei per liter. The decisions follow downward trends in the import prices of liquefied petroleum gas starting with May. In January, the average price of liquefied petroleum gas was US$438 or 7,225 lei/tonne, in April –US$459 or 7,918 lei/tonne, while in June the price of a tonne of liquefied petroleum gas fell by US$55 or 486 lei to US$404 or 7,432 lei.

● THURSDAY, July 9

Veaceslav Negruta: Moldova missed chance to get external financing this year

Moldova has no chance to get external financing this year and the only thing it can do is to save the financial assistance that it can receive in 2016, ex-minister of finance Veaceslav Negruta said in the talk show “Moldova live” on the public TV channel Moldova 1. “The lack of a program with the IMF and the absence of a Cabinet make the negotiations on the resumption of external financing impossible. The banking system is our biggest problem. The political statements concerning the nationalization of three banks only scared the foreign backers. The National Bank governor Dorin Dragutanu also made a mistake by saying that it is the ruling parties that should take a decision as to the liquidation or nationalization of Banca de Economii. He thus admitted to political interference in the work of the central bank, which has the status of independent institution,” said Negruta.

Stephane Bride: Moldova’s economy resisted also due to DCFTA

Moldova’s economy resisted in harsh regional conditions and even grew in the first months of this year also due to the effects of the Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, which was ratified a year ago and came provisionally into force on September 1, 2014, acting Minister of Economy Stephane Bride said in a news conference on July 9. He noted that despite the external conditions – economic crises in a number of CIS states, the conflict in Ukraine and the bans imposed by Russia – Moldova saw an economic growth of almost 5% in the first quarter of this year. Industry grew by over 4%, while the long-term investments by 2.4%.

Government can access World Bank loan of US$12m

Starting with July 7, the Government can access the loan of US$12 million provided by the World Bank by signing the additional financing agreement to the Moldova Agricultural Competiveness Project (MAC-P). According to the Ministry of Agriculture and Food Industry, the additional financing will support small-scale farmers in coping with difficulties in exporting to Russia. In 2013-2014, theses sustained losses of about 150 million lei following the bans imposed by Russia. The additional financing agreement was signed by acting minister of agriculture Ion Sula and World Bank Country Manager for Moldova Alex Kremer on May 21, 2015. The US$12 million will be used to provide targeted compensatory grants to small-scale apple, plum and grape growers, with farms of less than 15 hectares, who sold their produce domestically for processing in the fall of 2014.

● FRIDAY, July 10

Liquidating three banks is a solution for overcoming crisis in banking system 

Adrian Lupusor, executive director of the Independent Analytical Center “Expert-Grup”, said an immediate solution for overcoming the crisis in the banking system of Moldova is to liquidate the three trouble-causing banks - Banca de Economii, Banca Sociala and Unibank. If these banks are liquidated, all the deposits must be paid back and the persons responsible for the crisis must be held accountable. The financial-banking regulatory system should be reformed. Such statements were made in the opening of the annual international conference MACRO-2015 “Promotion of economic and social security amid major risks”. The “Expert-Grup” executive director said that Moldova faces unprecedented risks caused by the internal situation, namely the political instability, endemic corruption and vulnerability of the economic sector, and by the external one – the crisis in Ukraine and Russia, which bring serious threats to the economic and social security of the state. The fundamental elements that ensure the security of the state, such as confidence in politicians, have been lately compromised.

Number of violations in communications sector declines 

The National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) said both the character and the number of identified violations suffered qualitative changes compared with the corresponding period of 2014. The number of contravention reports drawn up by the Agency in the period fell over 1.5 times – from 27 to 16. Of the 16 reports, six were against private individuals, while ten against legal entities. Twelve administrative cases were started against persons who sold uncertified and low-quality electronic communications equipment, who caused considerable perturbation in the mobile telephone networks and who illegally connected themselves or allowed connecting oneself to the electronic communications network.

Vice governor of Gagauzia: Crisis didn’t start in regions, but economic rehabilitation will start there 

The vice governor of the Autonomous Territorial Unit of Gagauzia Vadim Ceban said that even if the economic crisis started not in the country’s regions, but at central level, the economic rehabilitation will begin namely in regions. In this regard, the local authorities of Gagauzia have a number of initiatives aimed at attracting investments to the region and want stability to be ensured both at local and central levels. The official made such statements in the annual international conference MACRO-2015 “Promotion of economic and social security amid major risks”. The vice governor noted that the average salaries in Gagauzia are lower than the national average. Thus, the crisis and higher social tensions will be felt in Gagauzia more powerfully. Many young people and women from the region go to work in Russia or Turkey. Migration is continuous and about 84% of the young people and women go abroad to work for a long period or during a season. Almost 30% of the region’s population was abroad last year. In Gagauzia, over 25% of the families have at least one member suffering from a disability or with an invalidity degree.

Grain harvest lower than last year, but of a higher quality 

The Ministry of Agriculture and Food Industry said the average crop per hectare this year is by about 30% lower than the projections owing to the drought of April – June. According to the data provided by the Institute of Field Crop Research “Selectia”, the lower harvest is due to the decrease in the weight of 1,000 grains from 40 to 35 grams among the national sorts and from 43 to 35 grans among the Ukrainian sorts (Odessa). In percentage, this is a 17-20% decrease. As the average harvest is projected to be 2.5 tonnes per ha and the areas sowed with winter wheat total 340,000 ha, the production this year will represent about 850,000 tonnes. This is close to the average for the last five agricultural years and by about 250,000 tonnes less than in 2014.

Transnistrian administration politicizes economic and social projects, statement 

The Transnistrian administration refused to implement a number of social and economic projects treating them as a political subject or asking recognizing Transnistria as an independent entity for signing the agreements to implement these projects. The Reintegration Office’s head George Balan, in the international conference MACRO-2015 “Promotion of economic and social security amid major risks”, said that Tiraspol rejected a number of regional projects for such reasons. George Balan considers that if all the checkpoints set up on the banks of the Nistru River are removed tomorrow, the population of Moldova, including of the Transnistrian region, will continue to live absolutely normally. The problem is not solved owing to political views and to interests of foreign entities that do not want Moldova to integrate into particular communities.

● SATURDAY,  July 11

Veaceslav Negruta: Banking sector is Moldova’s key problem 

Economic and financial expert Veaceslav Negruta, former minister of finance, said the banking sector is the key problem of Moldova and all the deficiencies at macroeconomic level are due to serious and major difficulties encountered in this sector. He made such a statement in the international conference MACRO-2015 “Promotion of economic and social security amid major risks”. The second major problem is the lack of a functional Government enjoying political support. Veaceslav Negruta noted that the financial-banking legislation over the past one year and a half has been considerably modified even without the participation of lawmakers, mainly by assuming responsibility or by voting packages of laws without perceiving their essence. All the macroeconomic deficiencies generated by this sector affect other sectors. Some of the banks reported profit, but the enterprises reported losses.