● TUESDAY, June 21

Fujikura concern to invest about €3.2m in Moldova

Fujikura Automotive MLD will invest approximately €3.2 million in a line for making cables for the automotive industry. The company was chosen as a resident of the Free Enterprise Zone “Expo-Business-Chisinau” as a result of a public contest. Under the plan, the production process will start in the third quarter of this year. According to the press office of the Ministry of Economy, towards the end of the first year of work the company will create about 700 new jobs and will then increase the figure to 900. To ensure the appropriate quality of production, Fujikura Automotive MLD plans to implement a program to train the personnel within an internal cycle and at the Fujukura Automotive subsidiaries abroad. The whole production is intended for clients from the EU.

Moldova and China could sign bilateral free trade agreement

Moldova and China plan to sign a bilateral free trade agreement. The issue was discussed by Deputy Prime Minister and Minister of Economy Octavian Calmac and China’s Ambassador in Chisinau Zhong Yinghong. The two agreed that the initiation of discussions on the sinning of the accord will be included in the agenda of the meeting of the Moldovan-Chinese commission for economic cooperation that is to take place in Chisinau by the end of this year. According to the Ministry of Economy’s press office, Zhong Yinghong said the Chinese authorities pay special attention to the development of the bilateral relations with Moldova and plead for their extension in different areas, especially in trade, transport and infrastructure. In the meeting, the two officials discussed the development of the bilateral commercial-economic relations and the process of implementing three projects financed with the grant of 60 million Yuan (over €2.6 million) that was provided by the Government of China.

World Bank supports extension of successful businesses within MAC-P Project

The World Bank is ready to support the extension of businesses that turned out to be successful within the Moldova Agriculture Competitiveness Project (MAC-P). Minister of Agriculture Eduard Grama and WB representatives Anatol Gobjila and Olga Sainciuc discussed the signing of an additional financing agreement between Moldova and the International Development Association. According to the Ministry of Agriculture and Food Industry, the document envisions the extension of businesses financed during the first phase of the project, especially within the component “Enhancing market access potential”. The additional financing agreement will also provide for the restructuring of the project so as to reallocate the money that remained from the component “Compensations for supporting sales” to the component “Strengthening food safety management”.

Business incubator managers offer consultancy to entrepreneurs

The entrepreneurs and those who want to start a business can obtain professional consultancy through the support offices initiated within the business incubators operating in nine districts of the country. The Organization for the Development of Small and Medium-Sized Enterprises (ODIMM) staged the first information session. In a press release, ODIMM says the Business Consultancy Center was initiated to facilitate the entrepreneurs’ access to information about the process of starting a business and of promoting business development opportunities through programs run by ODIMM and other similar organizations of Moldova.

Amendments to Law on Oil Products do not meet market economy norms, expert

Even if the amendments and supplements to the Law on Oil Products came into force over two months ago, no statement from agricultural producers about the intention to import oil products for the needs of their companies came so farm, Victor Parlicov, expert in energy matters at the Institute for Development and Social Initiatives “Viitorul”, said when presenting an analysis in the field. Speaking about the experience of Croatia in capping retail oil prices, which was borrowed by Moldova, Victor Parlicov said that unlike Croatia, where only one company is specialized in the sale of oil products and also in production, in Moldova there are many companies and the introduction of oil price ceilings is not in accordance with the norms of a market economy.

● WEDNESDAY, June 22

“Expert-Grup”: Economic crisis in Transnistria is worsened by political decisions

The economic crisis in the Transnistrian region is becoming worse amid the reduction in internal demand, weakening of export activities and major political disagreements before the ‘presidential elections’, the independent think tank “Expert-Grup” says in the June edition of the publication “Transnistrian Economic Realities”. The convergence indicator that determines the level of rapprochement between the two banks of the Nistru River in the second quarter of 2016 fell to 94.8% from 97.1% in the corresponding period last year. The Transnistrian economy, which shrank by 20% in 2015, does not show signs of recovery. Amid the dramatic reduction in the population’s incomes, including remittances, and the deficit of foreign currency, imports fell by about 1/3 in the second quarter of 2016 on a year before.

Experts formulate suggestions for improving new law on SMEs

The new law on Small and Medium-Sized Enterprises (SMEs), which was drafted by the Ministry of Economy and passed by Parliament in the first reading, contains only one measure aimed at supporting entrepreneurs. This is the institution of consultative inspections for the first three years of work. Eugen Giletski, expert of the Institute for European Politics and Reforms (IRPE), in a public debate said it is not enough to make a jump in the development of his sector to which a key role is given in the EU in increasing the prosperity of the country and the people. The expert said the number of newly created SMEs remains constant year on year, while that of employed persons decreases. Many enterprises prefer to employ persons unofficially given that they do not enjoy real support on the part of the state institutions. The small entrepreneurs complain about the bureaucratized procedures for obtaining authorizing documents for doing business and about the fact that they have to offer bribe.

● THURSDAY, June 23

Measures to strengthen banking system

The Government approved a bill to adjust the Law on Financial Institutions and the Law on the State Registration of Legal Entities and Private Individuals. The amendments are aimed at strengthening the National Bank of Moldova, ensuring increased powers to supervise and control commercial banks, which, for their part, are obliged to ensure greater transparency. The document provides, inter alia, that the permission of the National Bank of Moldova is needed for purchasing or subscribing for shares of commercial banks. The central bank will have the right to institute special administration if it ascertains a concerted approach of shareholders that own more than 50% of the share capital of a bank, which wasn’t authorized by it.

Government will support financially inventors when these register creations abroad

Moldovan inventors will benefit from support from the state in the process of patenting abroad inventions and sorts of plants created in Moldova. The regulations stipulate mechanisms for financially supporting legal entities that initiated external patenting procedures. This way the development of the innovation capacities of research institutions, university and business centers will be ensured. Based on the regulations, the inventors will have a part of the costs incurred when patenting inventions and sorts of plants abroad covered by the state, in particular those associated with the submission and examination of the patent application, documentation and technical examination of the sort of plant.

More possibilities for developing rural tourism

Owners can locate tourist accommodation facilities of pension type on their farmland. This is provided in the amendments to the Land Code approved by the Cabinet. Minister of Agriculture and Food Industry Eduard Grama said that at practical level, the purpose of the farmland is not changed as the owners of pensions carry out agricultural activities, possess fruit tree orchards and berry plantations and keep domestic animals. On the other hand, the location of pensions on farmland will create new employment opportunities in rural areas and will increase the number of villagers engaged in non-farming work. This will ensure sustainable rural development.

Deposit guarantee sum for private individuals will be higher

The bank deposit guarantee sum for private individuals will be raised from 6,000 to 20,000 lei. Parliament passed a bill to this effect in the first reading on June 23. Unaffiliated MP Iurie Leanca, who is one of the authors of the bill, said the initiative is aimed at protecting bank depositors. The sum of 20,000 lei will be provided from the Bank Deposit Guarantee Fund if the bank is deprived of license or is liquidated.

● FRIDAY, June 24

Customs and State Tax Services intensify cooperation in combating illegal transactions

The State Tax Service and the Customs Service on June 24 signed a memorandum of cooperation to stimulate the exchange of information with a view to intensifying the efforts aimed at preventing and combating tax evasion and corruption. “The signing of this memorandum will bring benefits to the whole society. We hope that those who practice illegal activities will feel even more the pressure applied by the given bodies,” Minister of Finance Octavian Armasu said in the signing event. The head of the State Main Tax Inspectorate Sergiu Puscuta said the signed memorandum will enable to advance the existing cooperation and to concentrate the joint efforts on those segments where the risk of tax evasion and illegal activities is bigger. Customs Service director general Vitalie Vrabie noted that one of the main tasks of the institution he heads is to collect import duties.

● SATURDAY, June 25

Moldova ratifies WTO Trade Facilitation Agreement

Moldova became the 84th member of the World Trade Organization (WTO) that ratified the Trade Facilitation Agreement. Deputy Prime Minister and Minister of Economy Octavian Calmac presented the instrument of ratification of the accord by Moldova to the WTO Director General Roberto Azevêdo. According to the Ministry of Economy, the Trade Facilitation Agreement is the first multilateral agreement negotiated within the WTO that will offer Moldova new opportunities of access to international markets and will optimize the transfrontier flow of goods by ensuring a higher level of safety of the business sector by implementing measures to reduce bureaucracy and corruption.

Restrictions for large trucks during dog days

The Ministry of Transport and Road Infrastructure announces traffic restrictions for large trucks during the hot weather. Thus, on days with temperatures higher than 30 degrees Celsius, the large trucks are banned from moving on the streets between 10am and 8pm. The restrictions do not apply to vehicles that transport passengers, living animals and products of animal or vegetal origin and to the vehicles of emergency services.

Winter wheat harvest could exceed average for last ten years

The winter wheat harvest this year is projected to be slightly higher than the average for the last ten years. According to the forecasts of the State Hydrometeorological Service, the sunflower seeds crop will also be one of the highest in the last ten years. The State Hydrometeorological Service anticipated that the wheat harvest in 2016 will total 2.8-3.1 tonnes/ha. The average for the last yen years was 2.7 tonnes/ha. The average harvest of sunflower seeds is expected to be of 1.6-1.8 tonnes/ha. During the last ten years, the average was of 1.4 tonnes/ha.