● MONDAY, June 17

Pavel Filip: Program with IMF helped us restore foreign partners’ confidence

The memorandum signed by the Republic of Moldova and the International Monterey Fund in November 2016 helped the Moldovan authorities restore foreign partners’ confidence, Prime Minister Pavel Filip said in a meeting with the IMF staff mission that is visiting Chisinau. According to the Government’s press service, the interlocutors discussed the recent economic and social developments in Moldova, the progress made in implementing the memorandum with the IMF and the actions that are to be taken to implement this. “We will take all the necessary steps to have a successful IMF mission in autumn,” stated Pavel Filip. Head of the IMF mission Ben Kelmanson said the goal of the visit to Moldova is to collect facts about the macroeconomic situation and to discuss the budgetary-fiscal, monetary and other relevant policies ahead of the second program review that is due in fall 2017.

Conditions for granting status of Authorized Economic Operator to be simplified

The status of Authorized Economic Operator (AEO) than ensures simplified clearance will be provided in simplified conditions. Such provisions are contained in the draft fiscal and customs policy document for 2018 that was proposed by the Ministry of Finance for public consultations. The time limit for performing export operations by the economic operator that applies for such a status is cut from three years to one year. The economic operator is to export goods made in Moldova frequently and on a regular basis, at least five export operations during three consecutive calendar months. The obligation not to have debts to the national public budget could be excluded for applicants for the AEO. The customs bodies could be empowered to provide simplifications and concessions that derive from the AEO status to persons who settled outside Moldova’s customs territory and who meet the conditions and obligations defined in the legislation of the host countrie

● TUESDAY, July 18

Moldova didn’t implement provisions of memorandum with IMF, opinions

The Republic of Moldova has serious shortcomings in the process of implementing the memorandum signed with the IMF, said experts invited to the TV channel. Deputy head of the Party “Platform Dignity and Truth” Alexandru Slusari said the main shortcomings are witnessed in the banking system, justice sector and the fight against corruption. Ex-minister of finance Mihai Manole said the recovery of the money stolen from the banking system is another problem. “Nothing of the embezzled funds has been recovered. We have convictions, but do not have an end result. We also face problems with the budget deficit. If Moldova does not get those €100 million from the EU, it will be unable to cover the budget deficit and will thus have to provide explanations to the IMF,” he said. Economic analyst Victor Ciobanu said the government is not interested in doing reforms. “The most important reforms are usually done during the first year after elections. If the government is ill-intentioned, it cannot deliver the promises related to reforms,” he stated.

Traders in flowers informed about upcoming inspections

The State Tax Service has issued a press release whereby the traders in flowers are informed about inspections that will be carried out throughout of July 18. The Service said that during the first half of this year, tax inspectors imposed fines totaling over 13 million lei following more than 5,000 surprise visits. The fines were imposed for not using cash registers, for selling goods in the absence of certificates of origin and for illegal entrepreneurial activity. The Fiscal Code and the Contravention Code stipulate fines of 4,500 to 7,000 lei for such offenses.

● WEDNESDAY, July 19

Higher average salary forecast in economy

The average salary in the economy is projected to rise to 5,600 lei, up 300 lei compared with the size approved at the end of 2016. The changes were made by the Government in accordance with the updated forecast of the macroeconomic indicators for 2018-2020. The forecast average salary in the economy is used to determine the calculation basis for social benefits and to annually reexamine the monthly salaries of teachers.

● THURSDAY, July 20

Moldova to negotiate new agreement with IFC

The Cabinet approved the initiation of negotiations on a consultancy agreement between the Government of the Republic of Moldova represented by the Ministry of Economy and the International Finance Corporation (IFC). Based on the agreement, the Republic of Moldova will benefit from US$ 3.2 million in technical assistance to increase investments and promote exports. In particular, consultancy services will be provided in three key areas, which are also the project’s objectives: improvement of the business climate, strengthening of market access with emphasis on the agro-industrial sector, and increase in the investment protection level. The agreement will take effect when it is ratified by Parliament. A component part of the World Bank Group, the International Finance Corporation provides loans, capital and technical assistance to encourage investments in the private sector in developing countries.

Draft law on meal vouchers passed in final reading

The bill on meal vouchers was adopted by Parliament in the final reading by 54 votes in favor. The meal vouchers will be provided as an employee bonus and employers will not be obliged to introduce them. The nominal value of a meal voucher per working day is 45 lei. This sum is not taxable. The value of the meal voucher will be indexed annually, proportionally to the inflation rate set for January-December of the previous year. The meal vouchers will be provided at the end of each month, depending on the number of workdays the next month. A salary earner will be able to use a number of meal vouchers equal to the number of worked days at the most. It is not allowed converting the vouchers into money, but one can add money to buy something on them.

● FRIDAY, July 21

Chisinau glass factory resumes work

The state-owned company “Fabrica de sticla din Chisinau” (“Chisinau glass factory”) resumed production activity on July 20, after almost a year of the halt. The reopening was possible owing to investments made in the most important production sections of the company. Since the factory stopped work on August 11, 2016 until now, investments came to 85 million lei. The most important development directions during the next few years are: purchase of quality control equipment; modernization and replacement of outdated equipment; modernization of the energy segment; reconstruction and extension of finished products storage areas; identification of new export markets; modernization of the accounting system and augmentation of sales volumes. Another strategic objective is to build a new colored glass production section so that then new product is launched at the end of 2018.

Moldova to borrow €82m for Ungheni-Chisinau gas pipeline

Parliament carried in the first reading a bill to ratify two lending agreements to the value of €82 million for building the Ungheni-Chisinau gas pipeline with the length of 117 km. One of the agreements envisions the allocation by the European Bank for Reconstruction and Development of €41 million as a sovereign loan. Additionally, the European Union will allocate €10 million in the form of a grant into the state budget to cover the initial financial contribution of €10 million that is to be made from the state budget. The interest rate on the sovereign loan that will be raised from the EBRD is standard and will be calculated according to EURIBOR + 1% a year. The loan will be repaired with money collected as natural gas transportation tariffs. Under the second lending agreement, the European Investment Bank will contribute €41 million as a sovereign loan for the construction of the gas pipeline. The financing contracts were signed in December 2016.