● MONDAY, July 9

One-stop shop for managing and issuing permissive documents opened in Chisinau

The business entities will no longer have to queue up for hours at public agencies, losing time and money, for obtaining permissive documents. As of July 9, they will be able to do this online, at any hour and regardless of the whereabouts, through the permissive documents management and issuing automated information system that was launched in Chisinau. That developed the system, said that 152 permissive documents provided by 32 issuing agents and local authorities will be gradually available on the platform. The system is available for any applicant online through the web portal accessible from any computer of mobile deice. The system ensures access to electronic services with a digital signature regardless of the physical location of the applicant.

● TUESDAY, July 10

Without EU funds, budget deficit will double, economic expert

If the Republic of Moldova does not receive the macro-financial assistance from the EU, if this is suspended as the European Parliament recommended last week, Moldova’s budget deficit for this year will double, economic expert Sergiu Gaibu stated in the program “People’s Council” on 10TV channel. According to him, the budget deficit is now about 5 billion lei. If the macro-financial assistance is not provided, this will rise to over 10 billion lei. “The government will have to review the budget and to rebalance it. Most of the times, they partially solve the problem with internal refinancing and partially with state securities. They could find a foreign financing alternative or could review some of the expenditure positions,” stated Sergiu Gaibu.

Auditor’s qualification certificate excluded from category of permissive documents

The auditor’s qualification certificate for general audit was struck off the list of permissive documents issued by the competent authorities to private individuals and legal entities for practicing entrepreneurial activities. A bill to amend a number of legal acts to this effect was approved by the Cabinet. Under the bill, the auditor’s qualification certificate for general audit cannot be included in the category of permissive documents because it is a document associated more with the provision of a qualification status to the person, similar to that of the lawyers and notaries, not with a regulated permit for performing entrepreneurial activities.

120m lei subsidies transferred to agricultural producers

About 120 million lei has been transferred to the accounts of agricultural producers in the first half of this year based on 1,017 applications for subsidies. According to the Agency for Intervention and Payments in Agriculture (AIPA), the agricultural producers asked for subsidies for purchasing conventional agricultural equipment, respectively for building packing houses and cold storage facilities for fruit and vegetables. Most of the applications were submitted by farmers from the Cahul and Edinet districts.

Fuel prices to go up

Gasoline will be by 0.39 lei/liter more expensive, while diesel fuel by 0.25 lei/liter more expensive. The National Agency for Energy Regulation announced the fuel price ceilings for July 11-24. During the next two weeks, the price ceiling of gasoline will be 19.49 lei/liter, while of diesel fuel – 17.25 lei/liter. Compared with the current fuel price ceilings, for June 26 – July 9, the average Platts quotations rose by US$ 25.42 per tonne of gasoline (+3.64%) and by US$ 14.80 per tonne of diesel fuel (+2.29%). The average exchange rate of the national currency against the US dollar was 16.8275 lei/USD. Thus, the rise in the average Platts quotations recalculated in Moldovan lei was 0.39 lei per liter of gasoline and 0.25 lei per liter of diesel fuel, including VAT.

Order to increase fuel price ceilings suspended

The National Agency for Energy Regulation (NAER) said the price ceilings for July 11-25 will remain the same as during the past two weeks – 19.10 lei/liter of gasoline A-95 and 17,00 lei/liter of diesel fuel. The decision was taken after the Chisinau City Court suspended the Agency’s July 10 order that announced higher price ceilings – by 0.39 lei per liter of gasoline and by 0.25 lei per liter of diesel fuel. The Ministry of Economy and Infrastructure said that together with the Agency for Consumer Protection and Market Surveillance, they submitted an additional application by which they challenged the NAER’s order to raise the fuel price ceilings. They also asked to suspend the order until an irrevocable court judgment is passed on the civil lawsuit filed on June 12.

All irrigation systems in Moldova date from Soviet period and are worn-out

In Moldova there are 78 irrigation systems and these were all built in the Soviet period. Of these, only ten were rehabilitated and modernized during the past ten years though the Compact program implemented in Moldova since 2010 with the financial support of the U.S. Government. In a response to an inquiry made by IPN Agency, Moldova’s Water Agency says the other 68 irrigation systems, even if they are old, are functional. But their technical state is unsatisfactory. They have a low output and consume a lot of electricity. Economic expert Viorel Chivriga said the 78 irrigation systems were installed on areas that vary between 130 and 690 ha and most of these are worn-out. Statistics show less than 10% of the farmland is irrigated. The existence of irrigation systems does not mean that the areas covered by these are irrigated. The plots are parceled out and belong to different owners.

● WEDNESDAY, July 11

Transnistrian entrepreneurs will be further exempted from customs duties

The period during which the Transnistrian business entities that perform import-export operations throng the Pervomaisk-Cuchurgan border crossing point and that are not registered with the Public Services Agency will enjoy exemptions from customs duties will be extended. The issue was discussed in a Cabinet meeting that centered on issues related to the integrated border management. According to the Government’s press service, the deadline expires on July 18 this year. The proposal to extend this until January 1, 2019 that was formulated in the meeting was accepted.

Court of Auditors presents opinion on audit of fulfillment of 2017 state budget

The Court of Auditors formulated an audit opinion with reservations on the Government’s report concerning the fulfilment of the state budget for 2017. Court member Tatiana Kunetski, in hearings at the parliamentary commission on economy, budget and finance, said the reservations refer to financial and compliance aspects. The audit draws attention to the non-presentation of consolidated information about the financial reports of the central public authorities and the territorial-administrative units, these not being covered by the Government’s report. As to the financial aspects, Tatiana Kunetski noted the audit ascertained the non-confirmation, by mutual verifications with other managers, of state budget revenues in the amount of 926.9 million lei. Also, mutual verifications concerning mandatory contributions paid by winemakers to the value of about 20 million lei weren’t ensured between the Ministry of Finance and the State Tax Service.

Investments of over €1bn are expected to come to Moldova during next five years, statement

A contract for the provision of public services for working out, implementing and internationally promoting the program on citizenship by investment was signed by Minister of Economy and Infrastructure Kiril Gaburici and the leader of the consortium MIC Holding LLC and Henley&Partners Government Services Ltd, which won the contest, on July 11. The minister noted the investments during the next five years are expected to rise to €1.3 billion. According to the Ministry of Economy and Infrastructure, the goal of the program is to consolidate the perception and competitiveness of Moldova at foreign level so as to attract direct foreign investment to the strategic development areas set by the Government. The winner presented the best plan for implementing the program.

Whole government procurement process to take place online

The Cabinet on July 11 approved the technical concept of the automated information system “State Government Procurement Register (MTender)”. According to Minister of Finance Octavian Armasu, the electronic government procurement diminishes costs by 5% to 30% and increases the coverage of public procurement opportunities, which leads to a rise in the number of bids. MTender will also help make savings for identifying opportunities, printing, logistics and other costs, of 150 lei to 1,200 lei per bidder per government procurement procedure. The process will be much shorter.

Agreements to finance interconnection with power networks of Romania approved

The Cabinet on July 11 approved the draft laws on the ratifications of the lending agreements with the European Bank for Reconstruction and Development and the European Investment Bank for the interconnection of the electric power networks of Moldova and Romania. The EBRD and EIB provide by a loan of €80 million each. The project includes the construction, equipment and placing into operation of the electricity interconnections between Moldova and Romania, which consist of a Back-to-Back station in Vulcanesti, a 400kV power transportation line between Vulcanesti and Chisinau, the extension of the station in Chisinau and of the station in Vulcanesti, of 400kV.

● THURSDAY, July 12

Revision of fuel prices formation methodology is most indicated option, “Expert Grup”

The revision of the current methodology for forming fuel prices remains the most indicated option given the particularities of the oil products market and the way in which the new methodology was approved in 2016. Moreover, the components of the price ceilings can be reviewed in a transparent way, by involving all the interested sides, so as to exclude disagreements in the implementation of the methodology, as it happens now. The independent think tank “Expert Grup” issued a new note on the oil products market of Moldova. According to note author Vadim Gumene, programs director at “Expert-Grup”, any initiative that refers to sensitive issues from socioeconomic viewpoint need very through justification, based on empirical assessments by including methods and scenarios that would anticipate the modification of the status-quo, mandatorily the rise in quotes and the aligning of excise duties with the minimum of assumed commitments.

New methods of fighting poverty proposed by “Viitorul” Institute

The Institute for Development and Social Initiative “Viitorul” put forward a bill that is designed to fight poverty by supporting the disfavored areas. The bill is to be submitted to the Government and Parliament for consideration. The bill was drafted in order to define the legal regime of the disfavored areas and to institute the national framework for regulating these areas so that they interact with the regional and national development policies. “Viitorul” director Igor Munteanu said that owing to a number of factors related to demography, environment, quality of soil and other aspects, some of the communities in Moldova are underdeveloped compared with others and the population there has lower incomes, being consequently much poorer.

Budget will not feel lack of macro-financial assistance, but Moldova will generally be affected, opinion

Moldova’s budget will not seriously feel the absence of the EU macro-financial assistance, but the country will be generally affected by this. The conclusion can also be drawn from the authorities’ nervous reaction to the EU’s announcement about the suspension of the first tranche of the promised macro-financial assistance, invitees of the talk show “Key issue” produced by NTV Moldova channel. Socialist MP Vladimir Golovatiuc said the budget revenues rose, but the Republic of Moldova will feel the lack of the money promised by the EU. “The budget will not feel the absence of the EU macro-financial assistance, but it will be cynical to say that the country will not be affected and that the economy grows,” stated the politician. According to him, the budget could have increased by 2 billion lei and this money is now needed in Moldova.

Farmers to benefit from technical assistance in working out business plans

The Moldovan farmers who want to raise loans in advantageous conditions within the program “Moldova’s Orchard” will benefit from technical assistance in designing business plans and hastening the investment projects. The announcement was made in the first meeting of the Board of Supervisors of the technical assistance in support of the implementation of activities carried out by “Moldova’s Orchard”. According to the Ministry of Agriculture, Regional Development and Environment, Minister Liviu Volconovici in the meeting welcomed the provision of technical assistance after the signing of the contract between the European Investment Bank and the Government of Moldova in July 2014, based on which a loan of €120 million lei was provided. By training and experience exchange, the beneficiaries will be helped to develop agricultural businesses.

● FRIDAY, July 13

Moldova has fewer nationals working in the country than abroad, expert

Moldova is the only country in the world where the citizens employed in the country are fewer in number than those who went to work abroad. Also, the average salary in Moldova is the lowest in Europe, economic expert Veaceslav Ionita saying in the talk show “Direct access” produced by NTV Moldova channel. “We have more Moldovans working abroad than in Moldova. During the past 15 years, the nationals working abroad sent home over US$ 27 billion and the salary in Moldova was US$ 19 billion lei. So, we earned less in the country than the volume of remittances,” said the expert.

Differing opinions about citizenship by investment program

Experts have contradictory opinions about the citizenship by investment program. Some say by this program money of a dubious origin or even the funds that were earlier stolen from the banking system could enter the country. The authorities assure this will not happen as a number of filters will be used to examine those who will apply for Moldovan nationality and to check their financial resources. Economic expert Veaceslav Negruta said this program is associated with the fiscal amnesty bill as it was introduced in Parliament in the same period and was signed by the same group of MPs. Therefore, there are suspicions that the money stolen from the banking system will be reintroduced into the country. The Government initiated this program by the model of Malta. The granting of nationality in exchange for buying state securities is the only element that makes the program initiated in Moldova different.

State-run companies change founder

A number of 192 state-run enterprises and 71 joint stock companies in which the state owns shares and which were founded by ministries or other central administrative authorities subordinated to the Government will be transferred under the management of the Public Property Agency based on the law on state-owned enterprises and municipal enterprises that was adopted on November 23, 2017. The law stipulates that the duty of founder or shareholder in the name of the Government is performed by the Public Property Agency that is now directly subordinated to the Executive, not to a minister, as earlier.

Scheme to invest in movie production and other audiovisual products

A scheme to invest in filmmaking and other  audiovisual productions will be implemented in Moldova. This state mechanism will ensure the reimbursement of 25% of the costs incurred on Moldova’s tertiary plus another 5% if the films and other audiovisual products are promoted. This is provided in a bill that was adopted by Parliament in the final reading on July 13. The goal is to create the regulations to facilitate the attraction of foreign investment to make films and other audiovisual products and to support the production of movies, serials, animated cartoons, documentaries, modern TV programs, reality shows, advertisements, etc. The authors of the bill that was drafted in concert with media experts aim to attract investments to the country, to develop the national filmmaking and audiovisual sectors and to contribute to increasing the volume of productions, including national ones.

Agreement to finance Moldova-Romania power interconnection ratified

The bill to ratify the lending agreement between Moldova and the European Investment Bank for the interconnection of the electric power networks of Moldova and Romania was ratified by Parliament on July 13. The EIB will provide a loan of €80 million for the purpose. The project envisions the construction, equipment and placing into operation of the electricity interconnections between Moldova and Romania, which consist of a Back-to-Back station in Vulcanesti, a 400kV power transportation line between Vulcanesti and Chisinau, the extension of the station in Chisinau and of the station in Vulcanesti, of 400kV.

MPs ratify financial agreement with IDA

The legislative body ratified the €24.9 million financing agreement between the Republic of Moldova and the International Development Association for the Economic Governance Development Policy Operation for Moldova that was signed in Chisinau on July 11, 2018. During the debates on the agreement, Minister of Finance Octavian Armasu said it involves a loan provided in the form of budget support that is to cover the general current budget deficit. The money will go to cover the budget costs, including those associated with public investments and road rehabilitation.

● SATURDAY, July 14

Strategy for developing nonbanking financial market for 2018-2022 adopted

The strategy for developing the nonbanking financial market for 2018-2022 and the plan of action for implementing this were passed by Parliament on July 13. The document defines action policies that contain over 60 measures that derive from the commitments assumed by Moldova through the Association Agreement with the EU. The strategy centers on four directions, namely the enhancement of surveillance of the activity of entities based on prevention and risk management; designing and implementation of the comprehensive regulatory framework by transposing the Community legislation, which would enable market participants and investors to benefit from the advantages of the common European market; development of the population’s financial culture concerning the services and instruments of the nonbanking financial market and improvement of consumer confidence, and development and consolidation of the institutional and operational capacities of the National Commission for Financial Markets for ensuring performance-based governance.

Chisinau Arena to be built by Turkish company

The Chisinau Arena will be designed and built by the Turkish company “Summa”. Only one bid was submitted to the tender contest and the selection commission, which consisted of representatives of a number of state entities, declared it qualified in all regards. Under the plan announced by the authorities, the building woks will start at the end of this August. Details were presented in a press briefing in the evening of July 13. According to Minister of Education, Culture and Research Monica Babuc, the company has a general experience in the building sector of at least three designing and construction projects implemented in 2013-2017, to the value of minimum €30 million per project. The company also erected sports facilities similar to the objective of the public-private partnership, such as arenas, stadiums and sports complexes, at least one project being implemented during the past five years.

Chisinau Arena project is not an economic one, opinion

The project to build the Chisinau Arena is not an economic one and will not bring profit. If someone thinks this is a feasible project with revenues, they are wrong as, if it has been an idea that brought money, the stadium would have been built by private companies long ago, expert in economic policies Veaceslav Ionita saying in the talk show “Black box”. Veaceslav Ionita wondered if the Chisinau Arena, being unprofitable, would not turn into ruins as it happened to other important facilities, such as the Chisinau Circus. “I would like to see a feasibility study not of the spending of money, but of investment the recovery. I would like to see a feasibility study that would show that the Chisinau Arena could cover the maintenance costs with its revenues,” stated the expert.