● MONDAY, June 25

Octavian Armasu: “First House 2” will help budget-funded employees to purchase home

The program “First House 2” is designed to help the people working in the public sector to purchase a home. After applying to this program, the given employees will receive a monthly compensation from the state. Minister of Finance Octavian Armasu developed the issue in the talk show “Reply” on Prime TV channel. The minister said the salaries in the public sector are smaller than in the private sector and the budget-funded employees thus have smaller chances of benefiting from the “First House” program without the support of the state.

Commercial bank penalized with fine of over 362,000 lei

The Executive Board of the National Bank of Moldova imposed a fine of over 362,000 lei on the commercial bank “Banca de Finante si Comert” SA (FinComBank) and reprimanded the members of the bank’s Board that managed he bank in the period of the inspection. The National Bank said the decision was taken as a result of a comprehensive inspection carried out at the bank, during which the violations were identified.

Tomato leaf miners identified in Ialoveni district

The National Food Safety Agency reported two hotbeds of tomato leaf miners identified on a protected plot in Ialoveni district. The affected plants were destroyed. It was recommended setting traps for capturing these pests inside the greenhouse and on the adjoining area. The law provides that the private individuals and legal entities, regardless of the type of ownership and legal organizational form, in the cultivation process are obliged to take measures to prevent the appearance and spread of pests.

“Comertbank” fined by central bank

The Executive Board of the National Bank of Moldova fined the commercial bank “Comertbank” 1.7 million lei and the members of the bank’s Board over 550,000 lei, with reference to a press release of the central bank. The decision was taken following a comprehensive inspection carried out at the bank, during which a number of violations were identified.

Court of Auditors ascertains irregularities in management of public property in Balti

The Court of Auditors identified a number of irregularities in the management of property by the local public authorities of Balti municipality in 2017. Assessing the real estate used in the education process, it was determined that the balance value of this decreased by about 67.1 million lei, while the value of the publicly owned land diminished by about 16.6 million lei. The draft audit report on the financial situations related to the budgetary process and public property management in Balti in 2017 was examined in the June 25 meeting of the Court of Auditors. As a result of the audit, the Court of Auditors approved an opinion with reservation, determined by the effect of the related distortion: 110.6 million lei in the accounting documents and 22.05 million lei in the report on the revenues and costs. The irregularities that served as a basis for the audit opinion refer to a number of aspects, such as the distortion and diminution of the elements of non-financial assets managed by the Division of Education, Youth and Sport.

● TUESDAY, June 26

American companies encouraged to invest in Moldova

The economic and investment opportunities of Moldova were discussed in a roundtable meeting in Washington. Hosted by the American-Central European Business Association, the event brought together representatives of American federal and government trade agencies, companies, development partners and of international financial institutions. Attending the event, Prime Minister Pavel Filip said the Moldovan Government’s participation in the complex reform process is designed to ensure a stable and attractive investment climate for foreign investors. “We are a pro-business Government and want to attract larger foreign investment so as to be able to make social investment. The first reforms done by the executive were focused namely on the improvement of the business climate,” he stated.

Cherry hydrocooling system put into operation in Moldova

A cherry hydrocooling system was installed and put into operation at a company in Moldova. The innovative equipment cools the cherries with a cold water jet during seven minutes. After they are hydrocooled, the cherries are kept in a cold storage facility and are later calibrated and packed in the packing asked by the buyer. The system enables to cool the cherries in a short period of time and the fruit can be kept for up to 30 days. The producer can thus constantly supply cherries and negotiate advantageous extra-season prices. The cherries stored in cold storage facilities without being hydrocooled can be kept for 7-9 days only.

Gasoline and diesel fuel cheapened by 0.05 and 0.09 lei

The National Agency for Energy Regulation announced the fuel price ceilings for June 27 – July 10. A liter of gasoline ‘95’ will cost at most 19.10 lei, down 0.05 lei, while a liter of diesel fuel – at most 17 lei, down 0.09 lei. According to the Agency, compared with the current fuel prices, the average Platts quotes during June 12-25 decreased by 13.26 dollars per tonne of gasoline (-1.86%) and by 14.66 dollars per tonne of diesel fuel (-2.22%). The average exchange lei of the national currency against the US dollar was 16.8264 lei/dollar. Thus, the reduction in the Platts quotes recalculated in Moldovan lei was 0.05 lei/liter of gasoline and 0.09 lei/liter of diesel fuel, including VAT.

● WEDNESDAY, June 27

Court of Auditors ascertains deficiencies in management of Ecological Fund resources 

An audit performed by the Court of Auditors revealed serious deficiencies in the management of the resources of the National Ecological Fund in 2017. The audit report was examined in a meeting on June 26. According to the situation on December 31, 2017, the National Ecological Fund manages 345 investment projects where the value of contract works is 3.29 billion lei, including the Fund’s contribution of about 2.8 billion lei. The Fund’s resources last year were 79.5% used, this being the lowest level in the period between 2014 and 2017. The Board’s work was mainly focused on quantitative growth and less on the qualitative one.

Carriers going to Bulgaria could transit Romania without special authorizations 

Moldovan carriers that go to Bulgaria will be able to transit Romania without having special authorizations. The decision was taken by the joint Moldovan-Romanian commission that is meeting in Bucharest on June 26-27. According to the Ministry of Economy and Infrastructure of Moldova, the agenda of the first meeting day included a number of subjects concerning road freight and passenger transport and the road tax for motor vehicles that are not registered in Moldova that was introduced in Moldova this February.

Moldova Agroindbank heads bank performance rankings 

Moldova Agroindbank tops the rankings of the commercial banks with the best performance, being followed by Mobiasbanca and Moldindconbank. The rankings were compiled by experts of the Independent Think Tank “Expert-Grup” based on the bank performance assessment methodology at the end of this May. Amid enhanced performance, ProCreditBank and BCR Chisinau improved their ratings compared with the previous months. The experts said the banks with the most solid capital basis in relation to assets are: BCR Chisinau; Eximbank and EuroCreditBank. The banks with the largest liquid assets are: Victoriabank; Eximbank and BCR Chisinau. The banks with assets of the highest quality are: FinComBank; Mobiasbanca and EuroCreditBank. The banks with the highest return on capital are: Moldindconbank; Mobiasbanca and Moldova-Agroindbank, while the banks with the largest market share by the loan portfolio are: Moldova-Agroindbank; Moldindconbank and Mobiasbanca.

Internet service providers to offer content control applications 

The Internet service providers will offer end-users the possibility of installing applications for filtering the content with a negative impact on children. The Parliament’s commission on social protection, health and family on July 27 examined a bill to amend the legislation in this regard. Under the bill, the service providers will also introduce a chapter with information about Internet safety in the main menu of their official websites. The parents could thus control the content viewed by their children.

Parliament to examine new mechanism for forming prices of oil products 

The legislative body will examine a new mechanism for forming the prices of oil products and will adopt a series of relevant changes to the Law on the Oil Products Market. The new mechanism was discussed in the July 27 meeting of the Parliament’s commission on economy, budget and finance. This envisions that the calculations set based on commercial invoices and on the profit of 10% will be eliminated as these enable to manipulate the prices when the cost of oil products decreases.

● THURSDAY, June 28

Octavian Calmic: We have serious reservations about implementation of Association Agreement by private sector

The Premier’s economic adviser Octavian Calmic said they have serious reservations about the implementation of the Moldova – EU Association Agreement by the private sector. This subject is discussed and known insufficiently. The private sector needs to make big investments to align itself with the EU requirements. Octavian Calmic said Moldova has the capacity to export primary agricultural products, textiles, semi-manufactured products in the automotive sector. “We want to switch over to products with a higher valued added. It is a difficult process of industrializing the country, but we must admit that we lost the industry,” the adviser stated in the program “Emphasis on today” on TVR Moldova channel.

Strengthening Effectiveness of Social Safety Network Project under audit

A Court of Auditors team that audited the Strengthening the Effectiveness of the Social Safety Network Project formulated an opinion with reservations about the project’s financial situations by December 31, 2017. According to the team’s findings, the financial reports presented to the World Bank and the Ministry of Finance offer a real and truthful picture of the financial situations, except for the fixed assets (buildings) chapter that indicated a value of 2.3 million lei at the end of 2017. The audit report was examined in a public meeting of the Court of Auditors on June 27. Under the current regulations, if extensive repair works are performed on buildings managed by other institutions, the volume of works executed during the budgetary year is transferred to the managing institution. Given that the renovated buildings are managed by the General Government Building Administration Division, the designing services and executed works to the value of 2.3 million lei were to be transmitted to this.

Tarom postpones launch of Timisoara – Chisinau flight

The Romanian airline Tarom put off the launch of the Timisoara – Chisinau – Timisoara flight that was scheduled for July 2. The reason invoked by the company is the low demand in the period. According to the quoted source, the flight will be most probably launched in autumn. “The passengers who bought tickets for this flight will reach the destination by other flights operated by the company, via Bucharest, or can ask for a full refund,” it is said in the company’s press release.

● FRIDAY, June 29

NAER didn’t appropriately implement financial reporting legislation last year, audit 

An audit by the Court of Auditors concerning the financial situations of the National Agency for Energy Regulation (NAER) on December 31, 2017 shows the institution does not appropriately implement the accounting norms and the financial reporting legislation. Under the legal provisions, the audited authority was to organize and keep accounting records in accordance with the National Accounting Standards, but this applied the accounting and financial reporting norms typical of the budgetary system. In the June 28 meeting of the Court of Auditors, it was noted that the property managed by the NAER last yearend came to about 23.5 million lei. The debts represented 10 million lei or about 43% of this sum. The Agency forms its budget for the next year based on regulatory payments set at a sufficient level for covering the costs needed to ensure its activity, in accordance with the law. Thus, the Agency’s 2017 budget provided for revenues of 30.8 million lei and an expenditure of 44.1 million lei, with a budget deficit of over 13 million lei.

Oil products could be resold by license holders 

The holders of licenses allowing to import and sell wholesale oil products will be able to resell the oil products. In its June 29 meeting, the Cabinet approved relevant regulations in a move to facilitate the wholesaling of oil products. “Now that the National Agency for Energy Regulation regulates and caps the retail prices of oil products, the restriction on resale is no longer appropriate in the current market conditions,” Minister of Economy and Infrastructure Kiril Gaburici said when presenting the draft law.

Tires will be sold only with label identical to that used in EU 

The suppliers and distributors of tires will be able to sell these only with the label identical to that used in the EU. The Cabinet on June 29 approved the regulations that define the responsibilities of traders in tires, the testing methods and the parameters by which the tires will be classified. The label stuck to the tread will contain data about the energy efficiency class, wet grip class and external noise class. By the first two parameters, the tires will be allotted one of the seven classes, from A to G, while the value of noise is to be indicated in decibels. The correctness of the declared classes will be checked by the Agency for Consumer Protection and Market Surveillance.

National Network for Rural Development created in Moldova 

Organizations operating in agriculture and rural development united under an “institutional umbrella” called the National Network for Rural Development of Moldova. The Network will ensure the facilitation and consolidation of participation in the politic dialogue in the national agro-rural context. Based on this platform, the interested sides could communicate with the responsible national authorities on the agro-rural policy and the initiatives proposed for a better performance of the agricultural and talk development sectors. The field players and their representatives could agree common positons. The meeting to create the Network was held on June 29. The Network will play the role of a bridge between the public authorities and the representatives of field groups of interests and will consolidate the capacities of the member organizations so as to offer feedback to the adminstrtaion concerning the situation in the rural sector. Another objective is to promote an efficient flow of information, exchange of knowledge, ideas and good practices between the interested sides by staging training seminars, roundtable meetings, debate workshops and conferences.

● SATURDAY, June 30

IMF approves new disbursement for Moldova

Moldova will receive the third tranche of almost US$34 million from the International Monetary Fund following a decision taken by the institution’s Executive Board on June 29. A sum of US$22.5 million was already transferred to the accounts of the National Bank of Moldova, while the other US$11.25 million will reach Moldova next week. According to the Government’s press service, Prime Minister Pavel Filip said the allocation of a new tranche of the IMF assistance represents recognition of the executive’s efforts to fulfil the commitments assumed under the agreement with the IMF and to do the agreed reforms. The Premier thanked the IMF experts for their cooperation with the Moldovan authorities, reiterating the Government’s determination to complete the initiated reforms whose results will be felt directly by the citizens.