● MONDAY, June 13

Japanese companies encouraged to start businesses in Moldova 

Moldova reiterates its interest in developing efficient cooperation relations with Japan in areas of common interest, especially by exchanging know-how and attracting investments. The Japanese investors can find in Moldova attractive platforms for developing businesses for the export of products, including to the EU, Deputy Minister of Economy Vitalie Iurcu said in an investment forum organized by the Ministry of Economy and Moldova’s Embassy in Bucharest, in cooperation with the commercial section of the Embassy of Japan in Romania. According to the Ministry of Economy’s press service, the forum entitled “Day of investment and business opportunities in the Republic of Moldova” intended for Japanese companies that work in Romania involved about 13 companies. These operate in such areas as infrastructure development, telecommunications, financial-banking sector, legal consultancy, building, IT, energy efficiency, production of industrial equipment, etc.

Financial assistance for ten education centers for children from diaspora 

The Bureau for Diaspora Relations has launched a program to create ten education centers abroad and to elaborate a syllabus for teaching the Romanian language for children from the diaspora. The goal is to maintain and develop linguistic, cultural and emotional ties between the diaspora members and their native country Moldova. In a press release, the Bureau says that together with the Ministry of Education and the International Organization for Migration, it will work out a Romanian language syllabus with elements of culture and civilization for children from the diaspora within a new subprogram of grants called Education Centers in the Diaspora.

● TUESDAY, June 14

Rate of inflation continues to go down 

The growth rate of consumer prices for the past 12 months was 7.9% in May 2016, a decrease of 0.4 percentage points on a month before and of 0.2 percentage points on May 2015. It thus remained outside upper limit of the interval of ±1.5 percentage points of the inflation target of 5%. The annual rate of inflation continues the downward trend witnessed at the beginning of this year. These developments confirm the last National Bank’s forecast concerning the gradual diminution of the annual inflation amid modest internal demand, following the April adjustment of the electric power tariffs, the diminution of the prices of food products and energy resources at regional and world levels and owing to the high comparison base of 2015.

Over 30 entrepreneurs sign contracts to get financing within PARE 1+1 program 

More than 30 business entities that are beneficiaries of the program to attract remittances to the national economy “PARE 1+1” will soon receive over 6.6 million lei in grants for developing businesses. The money will be transferred based on the contracts for the provision of non-reimbursable assistance that were signed with the Organization for the Development of Small and Medium-Sized Enterprises, which manages the program, on June 14. In a press release, the Organization says its experts estimated that the investments made by the 34 entrepreneurs will attract about 22.7 million lei, while the initiated businesses will create over 200 jobs. Tudor Lupashko, director of the Organization’s Center for Business Consultancy and Assistance, said the signing of the financing contracts represents a first step towards starting businesses, while for the existent entrepreneurs this is a possibility of extending their businesses and orienting to export.

● WEDNESDAY, June 15

Consultations on National Wine Day underway 

The Ministry of Agriculture and Food Industry and the National Office of Vine and Wine launched consultations on the organization of the National Wine Day. This year the holiday will take place on October 1-2, while the location is yet to be agreed. The subject was discussed in a roundtable meeting staged by the Ministry of Agriculture and Food Industry, the National Office of Vine and Wine, the Tourism Agency and the Exhibitions Center “Moldexpo”. There was presented the draft conception of the National Wine Day. The participants in the meeting suggested returning to the tradition of mounting the winemakers’ parade.

Gas stations raise fuel prices 

A number of filling stations on June 14 posted higher fuel prices after the National Agency for Energy Regulation raised the retail price ceiling. Thus, one liter of gasoline and liquefied petroleum gas costs by 0.10 lei more on average, while of diesel fuel – by 0.5 lei more. For the next two weeks, the Agency set the price ceiling at 16.25 lei per liter of gasoline coded 95, up from 16.21 lei during the past two week, at 14.35 lei per liter of diesel fuel, an increase of 0.52 lei, and at 7.29 lei per liter of liquefied petroleum gas, up from 7.20 lei. The Agency’s press officer Anatol Barbei has told that the price ceiling for diesel fuel was raised so much following the increase in the Platt’s quotations on the international market. The Agency will monitor the prices at service stations so as to make sure that they are within limits.

Farmers surprised by new prices of oil products 

The farmers are astounded at the changes made in the prices of oil products lately. These consider the reductions and rises in the prices of diesel fuel during the last three weeks are manipulating. The head of the National Farmers Union “UniAgroProtect” Alexandru Slusari, in a press release, says that after the oil companies raised the prices of diesel fuel by 1.1 lei at the request of the Government at the end of May, the National Agency for Energy Regulation (NAER) set the price ceiling at 13.83 lei per liter, a decrease of 0.80 lei compared with the prices announced by operators. “It seems that we have witnessed a show during several weeks. The oil companies increase the prices of diesel fuel by 1.1 lei. The Government makes a call to the NAER, which intervenes and reduces the prices by 0.30 lei. In two weeks, the prices are raised again by 0.52 lei so as to compensate the oil companies for the inconvenience caused after the 1.1 lei rise in prices was corrected by the NAER,” said Alexandru Slusari, noting that the diesel fuel prices during the last three weeks rose by 1.3 lei per liter.

Discussions on repair of Hancesti-Leova-Cantemir and Soroca-Arionesti roads 

The Ministry of Transport and Road Infrastructure on June 15 staged the first meeting with representatives of the Italian company that is to repair the Hancesti – Leova – Cantermir and Soroca –Arionesti roads. The first road segment is to be repaired in two stages, first 42 km and then 41 km. The second road segment is 31 km long. Minister Iurie Chirinciuc said Serenissima Costruzioni became the winner of the tender contest announced by the Ministry last September. On May 6, there were signed the contracts with this company, while on June 14 the contract with the company that will supervise the works and the observance of the contract clauses. This is also an Italian firm – IRD Engineering.

Irrigation of farmland more accessible to farmers 

The farmers who intend to set up pumping stations and pressure pipes on publicly owned farmland will spend less money on the necessary cadastral documentation. The Ministry requested to amend the order on measures to standardize the making of cadastral documentation when working out cadastral plans and updating geometrical plans, at the request of farmers. In accordance with the made amendments, for placing irrigation systems, a geometrical plan will the drawn up only for the portion of land where these systems will be set up, not for the whole plot. Thus, the costs will be lower.

● THURSDAY, June 16

Better conditions for financing businesses of young people 

The time limit of five working days of delay in paying the interest rate on loans provided within the National Youth Empowerment Program will be extended to 30 working days. The program is intended for young founders of enterprises or associations, legal entities and private individuals aged between 18 and 30 who are involved in entrepreneurial activities. The loans of at most 300,000 lei are repayable in not more than five years. 60% of the financing represents the loan with interest, while 40% is a grant.

Number of institutions with inspection powers to be reduced 

The number of inspection bodies will be decreased significantly. Thus, of 33 inspection bodies existing now, only 11 will remain, alongside five independent regulators. The goal of the inspection bodies reform is to diminish the administrative burden on the business community, eliminate the situations of abuse, optimize state control and make it transparent. “By this bill, the number of entities with inspection powers is reduced and predictability and transparency are ensured in state inspections, which no longer leave room for corruption,” stated Prime Minister Pavel Filip.

New leveraging tools for developing tourism 

The villages and towns with touristic heritage and infrastructure for receiving and accommodating guests will obtain the status of tourist settlement. Such a provision is contained in a bill to amend and supplement the legislation on tourism that was approved by the Government. The bill, which was drafted by the Tourism Agency, is aimed at improving and modernizing the legislation in the field in accordance with the market requirements. Thus, there will be drawn up the Tourism Satellite Account that will collect data about the costs associated with the accommodation, food and cultural services offered to tourists. The Account will provide exhaustive information to those who want to visit Moldova for planning the expenses. These will be able to learn more about Moldova as an attractive tourist destination.

Chisinau to host EU-Moldova meeting on economy and public finances 

A meeting of Cluster I “Economic dialogue, management of public finances, statistics, financial services, control and anti-fraud provisions”, of the Moldova – EU Sub-Committee on Economic, Social and Sector Aspects, will take place in Chisinau next week. The issue was discussed in the June 15 meeting of the governmental commission for European integration, chaired by Prime Minister Pavel Filip. According to the executive’s press office, the responsible institutions, including the Ministry of Economy and the Ministry of Finance, reported on the preparedness level of the Moldovan authorities for this meeting in the context of the efforts made to restore the confidence of the people and the development partners of Moldova.

Entrepreneurs optimistic about prospects of doing business in Moldova 

The entrepreneurs are more optimistic about the prospects of doing business in Moldova, shows the Business Barometer for the first quarter compiled by the France – Moldova Chamber of Commerce and Industry, the Moldovan-German Business Association (MDW) and Magenta Consulting. Compared with the previous barometer, the opinions collected from 610 companies operating in different areas of activity show that the situation has improved and the conditions of doing business became more predictable. In a news conference, the head of the France – Moldova Chamber of Trade and Industry Emmanuel Skoulios said that among the factors mentioned by the respondents are the imposition by the Government of a moratorium on state inspections at business entities, the appointment of a new governor at the National Bank of Moldova and the ensuring of particular stability in society.

Tiraspol takes action to diminish local crisis 

The Transnistrian administration took measures to reduce the fiscal burden on entrepreneurs and to diminish the economic crisis faced by the region. Among these are the institution of a moratorium on fiscal inspections and the cutting of some taxes. The issue was discussed in a meeting of the anti-crisis committee. Thus, the officials in charge said that besides the moratorium on fiscal inspections, it was decided to reduce the tariffs for the entrepreneur’s patent from 8.7 to 8.1 Transnistrian rubles. The taxes for patent provided to young specialists for juridical and logopedic services, for making bread and cakes, for sowing clothes, for making shoes and other activities were almost halved.

● FRIDAY, June 17

WB: Moldova’s poor are better-off but face big risks for the future

Moldova has made good progress in reducing poverty and boosting shared prosperity, but the drivers of this progress in the past are likely to exercise a much more limited role, says the World Bank’s latest Poverty Assessment Report for Moldova. The report says that in the past several years, the country has experienced rapid economic growth, accompanied by significant progress in poverty reduction and shared prosperity. The economy has been growing at 5 percent annually since 2000. At the same time, the national poverty rate dropped from 68 to 27 percent between 2000 and 2004 and continued the downward trend to 11.4 percent in 2014. Nonetheless, Moldova remains one of the poorest countries in Europe and faces challenges in sustaining the progress.

Modern procurement system with equal chances for businesses is needed, experts

The national public procurement witnesses a low level of transparency and competitiveness. The public procurement area favors fraud and abuse. At the same time, the possible losses in public procurement affect the development of infrastructure and public services and simultaneously lead to the deterioration of the business climate and the quality of life. These are the main findings of the report on public procurement in Moldova that was presented by experts of the Institute for Development and Social Initiatives “Viitorul” on June 17. Expert Diana Enachi said the new law on public procurement envisions broader access to information about procurement contracts and a more active role of civil society in monitoring public procurement. It stipulates a new approach to contracts, based on the quality-price ratio. This will enable to purchase goods, services and works of a higher quality and will increase the efficiency of public costs.

● SATURDAY, June 18

Budgetary-fiscal policy passed in final reading

Parliament adopted the 2016 budgetary-fiscal policy in the last reading. A series of provisions were excluded from the initial document such as the rise in land tax and in the import duties on cars. Unaffiliated MP Stefan Creanga, who heads the commission on economy, budget and finance, said the proposal to increase the tax on farmland and the norms concerning the rise in excise duties on means of transport imported into Moldova were excluded. The price of vignette (road tool) will not be raised. The tax on motor vehicles was also excluded.

Irrigation discussed in working meeting chaired by PM

The problem of provision of farmers with high-quality and sufficient water resources for irrigation was discussed in a working meeting called by Prime Minister Pavel Filip. In the discussions, the Premier requested the officials in charge to identify viable solutions to facilitate farmers’ access to water for irrigation. According to the Government’s press office, in Moldova there are about 50,000 hectares of orchards, vineyards, vegetable fields and greenhouses that need to be irrigated. If possibilities of using underground water in irrigation in a controlled and measured way are created, the farmers will be able to develop their businesses and to have constant production, including in periods of drought.