● MONDAY, May 23

New airline in Moldova’s air transport sector

A new airline entered Moldova’s air transport market. This will operate regular flights to a number of destinations in Europe and Russia. FlyOne director Nicu Berla told a news conference that the company was founded in 2015 and employs specialists with rich experience in the field. FlyOne is a private company that focuses mainly on passenger transportation. The representatives of the airline said FlyOne since this April has operated charter flights to Antalya, Heraklion and Rhodos, while from June will provide regular flights to nine destination in Europe and Russia, including Verona, Parma, London, Dublin, Lisbon, Barcelona, Moscow, St. Petersburg, and Voronej.

IMF mission comes to Chisinau

An International Monetary Fund (IMF) mission led by Ivanna Vladkova-Hollar will be visiting Chisinau during May 23 – 27, 2016. The experts will have meetings with a number of officials, including Speaker of Parliament Andrian Candu and Prime Minister Pavel Filip. The purpose of the mission is to continue the policy dialogue and advance the discussions on the reform measures put forward by the authorities as critical inputs towards a broader program agenda. At this time, the IMF team will not have the mandate to conclude an agreement on a Fund-supported program.

Pavel Filip: For us agreement with IMF is a key one

For the Republic of Moldova, the agreement with the International Monetary Fund is a key one and the relations with the development partners and the atmosphere inside the country depend on this accord, Prime Minister Pavel Filip said in a meeting with the IMF mission led by Ivanna Vladkova-Hollar on May 23. According to the Government’s press service, the Premier expressed his gratitude to the IMF officials for the prompt answer and their readiness to continue the continue the policy dialogue and advance the discussions on the reform measures put forward by the Government and the National Bank of Moldova as critical inputs towards a broader program agenda. In this connection, Pavel Filip reiterated the Government’s determination to advance the reforms and to change Moldova’s image, restoring the confidence of the development partners and the people.

● TUESDAY, May 24

Losses in agriculture cannot be yet assessed, Agriculture Ministry 

The ground frost of the end of this April affected the fruit trees because they started to bud earlier, but the damage done to them cannot be yet assessed. The assertions that Briceni district will lose about 100,000 tonnes of apples cannot be true, Minister of Agriculture and Food Industry Eduard Grama and other representatives of the Ministry said in a roundtable meeting centering on the frost in northern Moldova and its effects on crops. Mihai Suvac, division head at the Ministry of Agriculture and Food Industry, said the sprouting this year began by one month earlier. “We know that the highest probability of frosts is at the end of April and at the start of May, when the trees start to bloom. But this year the blooming was close to an end and the fruit began to form in that period. When the temperatures fell suddenly, in parts to -5 … -7 degrees Celsius, the apple trees were affected. It is now impossible to determine how much the trees were affected as fructification regulation or the so-called fruit falling of June is to occurs. The fruits that the tree cannot maintain fall down,” he stated.

Moldovan entrepreneurs can benefit from financial support within COSME 

The entrepreneurs in Moldova can benefit from financial assistance within the European Program for the Competiveness of Small and Medium-Sized Enterprises (COSME) 2014-2020. Through the agency of this program, the managers of enterprises, including young entrepreneurs, can get support for easier gaining access to new markets, especially on the territory of the European Union. These will also benefit from support for creating favorable conditions for starting and developing businesses. A number of entrepreneurs were informed about the program in an event staged by the Organization for the Development of Small and Medium-Sized Enterprises. According to the Organization’s director general Iulia Iabanji, the program is intended for business support organizations of Moldova, small and medium-sized enterprises, entrepreneurs, national and regional authorities. A preliminary condition for putting these financial instruments into practice is to create an efficient partnership between the EU institutions and the business support organizations of Moldova.

Foreign investors inquire about Government’s reform agenda 

The reform agenda of the Government aimed at improving the investment climate and at supporting the business environment was discussed in a meeting of Prime Minister Pavel Filip and representatives of the business community, members of the American Chamber of Commerce in Moldova, the European Business Association and the Foreign Investors Association on May 24. “The Government has a lot of will and is determined to do reforms. At the same time, the values guiding us create the preconditions needed for ensuring transparency in activity and sincere discussions with society. As regards the views, I want to say that our final goal or the country project is to ensure good living conditions for the people at home, in a country built on the European values. Only this way can we create a favorable business environment for everyone,” said Prime Minister Pavel Filip.

● WEDNESDAY, May 25

National Bank penalizes currency exchange facilities 

The National Bank of Moldova penalized 47 currency exchange facilities. It withdrew the activity licenses in three of the cases, suspended the activity of 13 facilities and imposed a fine. The facilities were penalized for incorrect reporting or non-reporting of information about the applied currency exchange rates to the National Bank of Moldova, non-utilization of cash registers or non-posting of the necessary information in a visible place for private individuals. In a press release, the central bank says the currency exchange facilities also didn’t have the set level of floating assets in the share capital and didn’t amend the documents annexed to the application for issuing the license. Over 370 inspections were carried out at currency exchange facilities between January 1 and May 20 this year.

Vlad Plahotniuc: We must continue on European path if we want performance 

The chairman of the Moldova Business People Association, politician Vlad Plahotniuc, in the opening of the forum of this organization, underlined the necessity of continuing on the path of European integration and the pro-European reforms that are simultaneously necessary for the economic and social development of the country. “The people want peace and order in the country. To offer them these, we must continue on the European path, which allows us to achieve economic and social results equal to those that we daily see and admire in the European countries,” said Vlad Plahotniuc. In his speech, he also referred to the necessity of promoting and continuing reforms, especially those that can stimulate the development of the business community. “Strengthening the rule of law is my personal preoccupation and determination. Our common goal, my and of the government, is for the respect for the law and social equity to become the most important characteristic of the government.

Number of users of mobile Internet access services up 3.7% 

The number of users of mobile broadband Internet access services in the first quarter of this year increased by over 53,900 or 3.7% compared with the end of 2015, exceeding 1.5 million. The Internet traffic rose by 25% on the first quarter of 2015 to 12.8 million GB. The sales of Internet access services grew by 22.8% to over 163.9 million lei. The data were presented by the National Regulatory Agency for Electronic Communications and Information Technology. According to the Agency, the data furnished by the three telecommunications carriers – Orange Moldova, Moldcell and Moldtelecom – the number of users of mobile Internet through the 4G networks increased by 31% to 173,600. The number of users of 3G Internet rose by 8.8% to 1.3 million, while of those who used dedicated mobile Internet access – by 0.4% to 299,700. As a result, the mobile broadband Internet perpetration rate per 100 residents grew by 3.8% to 42.5%.

Export of wood from Moldova halted 

The export of wood from Moldova was stopped for an indefinite period. A decision to this effect was taken by the Government in its May 25 meeting. It is aimed at conserving the natural resource and at restoring the wooded areas. According to Minister of Environment Valeriu Munteanu, the draft Government decision was approved in April, but was not published following concerns expressed by the Ministry of Economy as to the possible blocking of the export of half-finished products made from imported wood of conifers.

● THURSDAY, May 26

Government approves two bills from package designed to stabilize financial sector 

The Government approved two bills included in the package of laws for harmonizing the national legislation regulating the financial-banking sector with the directives of the European Union. These are the bill on settlement in the payment system and the bill on financial guarantee contracts. The bill on the definitive character of settlement in the payment system and the settlement of financial instruments institutes a common legal framework that will regulate the payment system and the settlement of financial instruments through the agency of the interbank information payment system of the National Bank of Moldova. The bill is aimed at reducing the systemic risks associated with transactions in the payment system. It will ensure the definite character of settlement, will protect the payment and transfer orders and will standardize the system of regulations applied within the settlement and payment system.

Bill to strengthen independence of ANRE approved 

The Government approved a new draft law on energy that is designed to strengthen the independence of the National Agency for Energy Regulation. The new law empowers the Agency to impose fines on energy sector companies. The document defines the procedure for imposing fines for the identified violations by the Agency and the norms of guaranteeing the right of the energy sector companies to defend themselves and to avoid possible abuses on the part of the regulatory authority. The new law on energy modifies the procedure for naming the directors of the Agency’s Administration Board. These will be chosen at a public transparent contest organized by Parliament, based on principles of professionalism. The Agency’s budget will be approved by the Administration Board, which will later inform Parliament about the taken decision and will present it to the Audit Office for examination.

EBRD allocates €3m for rehabilitating thermoelectric system in Balti 

The thermoelectric system in Balti municipality will be rehabilitated with a grant of €3 million provided by the European Bank for Reconstruction and Development (EBRD). The Government on May 25 approved the grant agreement between the Republic of Moldova, SA CET-Nord and EBRD for financing the project to rehabilitate the thermoelectric system. According to Deputy Prime Minister and Minister of Economy Octavian Calmac, the project is aimed at optimizing the thermal and electricity system in Balti municipality. The grant will be allocated from the funds of the Eastern Europe Energy Efficiency and Environment Partnership (E5P).

Fuel prices go up, Premier seeks public debate on price rises 

The gas stations in the morning of May 26 increased the price of gasoline by 0.6 lei and of diesel fuel by 1.10 lei on average. In connection with the rise in fuel prices, Prime Minister Pavel Filip asked to immediately launch a public debate on the issue, by engaging energy sector companies and civil society in it. According to the Government’s press service, the debate is needed for transparently examining the validity of the arguments invoked for increasing fuel prices and the economic opportunity of the rises. In a letter addressed today to the administration of the National Agency for Energy Regulation, Pavel Filip asks for clarification as to the implementation of the legislation concerning prices in the energy sector. The Premier says he fully respects the Agency’s independence and realizes the crucial importance of regulating the oil prices by it in accordance with the law. Therefore, the price formation method in Moldova must be correct and transparent. This is the reason why a solid public debate, with clear economic arguments, is needed with all the relevant economic and social factors.

Grants for empowering women from diaspora 

The Diaspora Women Empowerment is a new subprogram of grants provided within the Diaspora Engagement Hub that was launched by the Bureau for Diaspora Relations. According to the Bureau, the new subprogram, which is the fourth one, will offer support to projects designed to improve the social and economic conditions of women by transferring knowledge and abilities, including by creating innovative services and taking part in community initiatives. The activities can be staged both in Moldova and abroad. Five grants of 5,000 Swiss francs each (equal to over 100,000 lei) will be provided as part of the subprogram. Those who want to take part in the contest of grants can submit projects between June 1, 2016 and March 31, 2017 for several priority areas: community development; education and mentoring; health; social entrepreneurship; counseling and advocacy; social services.

● FRIDAY, May 27

Moldovan poultry producers sound alarm 

The poultry producers of Moldova warn that their business is affected because the authorities didn’t impose import quotas on meat from Ukraine as they did in the case of dairy products. In a letter addressed to the authorities, associations of agricultural producers say the poultry industry is in danger. According to the authors of the letter, the authorities initially drafted a decision to suspend the exclusion of import duties on milk and meat products from Ukraine by the end of this year. But the point concerning the import of meat and edible bird entrails was removed from the final decision. The local producers are thus bewildered.

Parliament adopts new law on SMEs 

The small and medium-sized companies, which represent 97% of all the business entities of the country, will be able to better cooperate with the authorities, using a special platform. This is provided in the new Law on Small and Medium-Sized Enterprises that was approved by Parliament in the first reading on May 27. Deputy Minister of Economy Valeriu Triboi said the bill was drafted by the Government. This envisions the adjustment of the national legal framework on SMEs to the European one. The strengthening of the communication platform by constituting the Consultative Council for Small and Medium-Sized Enterprises is a new element.

Fixed telephone services market in recession 

The fixed telephone services market continued to see a decline in the number of subscribers, voice traffic and revenues in the first three months of this year. In the period, the number of subscribers fell by over 2,100 to about 1.2 million. The voice traffic decreased by 12% to 516.4 million minutes, while sales on this segment declined by 10.9% to about 236 million lei. According to the regulator, the data presented by the 24 active providers of fixed telephone services showed the decline in the total number of subscribers was due to the decrease in the number of clients of SA “Moldtelecom” by over 7,300. The number of subscribers of the alternative providers rose by over 5,100 cumulatively. Consequently, the fixed telephone penetration rate per 1000 people decreased slightly to about 33.8%.

● SATURDAY, May 28

Conclusions of IMF mission after visit to Moldova 

An International Monetary Fund (IMF) mission led by Ivanna Vladkova-Hollar visited Chisinau during May 23–27. The IMF experts and the Moldovan authorities made progress in developing a common view on key problems, such as the need to strengthen governance. “Discussions focused on the authorities’ strategy for financial sector reforms and ensuring the long-term safety and soundness of Moldova’s banks. Progress was made in developing a common view on key problems, such as the need to strengthen governance and tackle non-transparent shareholder structures in the banks, but some issues remain outstanding,” said Ivanna Vladkova-Hollar.

One month left for installing POS terminals 

The business entities whose sales from retail and wholesale trade and service provision exceeded 2 million lei last year are obliged to install POS terminals by July 1 this year and to ensure the possibility of making payments with the help of cards. The savings and loan associations and microfinance organizations make an exception. The State Tax Service warns that this requirement is stipulated in the Law on Entrepreneurship and Companies. The provision does not refer to the ambulatory trade network where sales in the period exceeded 500,000 lei. The business entities whose sales exceeded 2 million lei last year are not obliged to install POS terminals if the payments were made exclusively cashless, except for those made by commercial banks, and when the mentioned trade or service provision activities were performed in villages, except for those that form part of municipalities and towns.

Agriculture Ministry to prepare legislative initiative on agriculture insurance 

The Ministry of Agriculture and Food Industry will draft a bill on the provision of damage in case of natural disasters in agriculture on condition that the farmland is insured. This is one of the solutions agreed in a new meeting that centered on insurance in agriculture. The participants in the meeting, representatives of farmers and insurance companies, proposed creating a legal framework that would motivate the farmers to insure the farmland and would exclude compulsoriness. The participants supported the idea that the insurance premiums are now too high given that a lot of risks are being insured. Thus, the insurance mechanism that is to be worked out could envision a strict number of specific types of instance that would allow reducing the insurance premium.