● MONDAY, November 07

IMF discusses Moldova’s request for financing

The Executive Board of the International Monetary Fund (IMF) comes together on November 7 to discuss the reform program for Moldova that is to be supported by a three-year Extended Credit Facility and Extended Fund Facility (ECF/EFF) arrangement. According to a press release of the National Bank of Moldova, access under this arrangement is proposed to be set at 75 percent of Moldova’s quota in the Fund (about US$ 182.7 million). The new ECF/EFF arrangement will first and foremost aim to make swift upfront improvements in financial sector governance and supervision, especially to assess and ensure transparency in the shareholder structure of the Moldovan commercial banks.

Warning about counterfeit pesticides on sale

The number of cases of illegal trade in pesticides identified by inspectors of the National Food Safety Agency is on the rise given that the inspectors could not monitor the market of phytosanitary products owing to the state moratorium on state inspections that expired on November 1. Head of the Phytosanitary Product and Fertilizer Control Division Mihail Negrescu told a news conference that 75% of the products withdrawn from the market had the instructions in the Ukrainian language. This shows that the goods were smuggled as the legally imported merchandize has this information translated into Romanian. Mihail Negrescu said the contraband pesticides cost less and have bright packaging and do not have laser inscriptions to show production date and consignment number.

Over 20,000 visitors expected at “Made in Moldova 2017”

The sixteenth exhibition and sale “Made in Moldova” will take place at the start of February 2017. The exhibit entitled “By quality towards competitiveness” will include three business forums: Moldovan-Russian; Moldovan-Romanian-Ukrainian, and Moldovan-Austrian. For the first time this year, the Romanian business entities will be allotted a separate pavilion. Head of the Chamber of Trade and Industry Sergiu Harea told a news conference that the program of the event will include discussions with local and central public authorities on the customs and fiscal legislation and on the development of the business sector. “All these together will offer the participating business entities the possibility of promoting the business, of identifying new partners in foreign trade and for investments, including opportunities of knowing what new legislation was adopted,” he stated.

Importation of pork in luggage maintains risk of African swine fever

Moldova will keep the restriction on the import of pork from Ukraine until the hotbeds in the neighboring country are annihilated. In a news conference, director general of the National Food Safety Agency Gheorghe Gaberi said the Agency during a month prevented the import of almost half a tonne of pork from Ukraine into Moldova. The meat was found in the luggage of passengers. Gheorghe Gaberi noted that the risk of African swine fever on Moldova’s territory persists because the consumers bring meat in bags into the country.

31 PARE 1+1 investment projects approved

The committee for the surveillance of the program to attract remittances to the economy PARE 1+1 approved financing for 31 investment projects. The grant aid for these investment projects totals over 6 million lei. Iulia Iabanji, head of the Organization for the Development of Small and Medium-Sized Enterprises, said of the total projects that will be financed, 29% belong to migrant workers who returned home from abroad, while 71% will be implemented by relatives of the first degree of migrant workers. “Of the projects approved for financing, 19 are businesses founded or managed by young people. Their implementation will contribute to the creation of about 130 new jobs,” stated Iulia Iabanji. Nineteen businesses are started in agriculture to grow grains, vines, plants, animals and bees. Eight businesses will provide services, while four will work in the processing industry.

● TUESDAY, November 08

IMF Executive Board approves US$178.7 million arrangements for Moldova

On November 7, 2016 the Executive Board of the International Monetary Fund (IMF) approved three-year arrangements under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) with the Republic of Moldova to support the country’s economic and financial reform program. The cumulative access under the arrangements is SDR 129.4 million (about US$178.7 million, or 75 percent of the Republic of Moldova’s quota). An amount equivalent to SDR 26 million (about US$35.9 million) will be made available to the Moldovan authorities immediately following the approval of the arrangements. The remaining amount will be phased in over the duration of the program, subject to five semi-annual program reviews. Following the Executive Board discussion on Moldova, Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, said the Moldovan authorities have developed a comprehensive program—to be supported by a three-year arrangement under the Extended Fund Facility and the Extended Credit Facility—to strengthen the economy and address key vulnerabilities. The program aims at reinforcing the recent economic stabilization and advancing a broad structural reform agenda, particularly in the financial sector. Strong commitment to sound policies and a significant improvement in economic governance will be crucial to raising long-term growth prospects.

● WEDNESDAY, 09 November

Government and World Bank negotiate US$45m agreement

After the IMF approved a new program with the Republic of Moldova, which ensures access to financing of US$178.7 million, the Government of Moldova resumed the negotiations with the World Bank on a new US$45 million financing agreement. The negotiations started at the World Bank Office in Chisinau. The proposed operation is a key component of the Strategic Partnership for the Republic of Moldova for 2014-2017 and is a program of structural reforms in the area of investment climate and improvement of access to investment funds. According to the Government’s press service, the opening of negotiations on this budget support program was possible following the assumption and fulfillment by the Moldovan authorities of a series of reforms.

Farmers who invested in business to get almost 2m lei

Nearly 2 million lei will be provided to farmers who applied to the Sustainable Land Management Program of the Moldova Competitive Agriculture Project (MAC-P), fourth Call. These are six Moldovan framers who invested in the own business. Five of these invested financial resources in purchasing No-Till sowers, while one farmer build an anti-erosional lake that is less than 1 hectare in area.

Average official salary for 2017 projected at 5,300 lei

The average monthly official salary for next year was estimated at 5,300 lei, in accordance with the macroeconomic forecast for 2015-2018.

Premier seeks plan for extending works on Chisinau-Ungheni road

Prime Minister Pavel Filip instructed Minister of Transport and Road Infrastructure Iurie Chirinciuc to present a plan of action for extending the project to rehabilitate the Chisinau-Ungheni road by this weekend. “We have enough money for road rehabilitation, but it is not used,” the Premier said in the November 9 meeting of the Cabinet. He reminded that this important project with a budget of €180 million is financed by the EIB and EBRD. Of this sum, €60 million is a grant.

● THURSDAY, November 10

New possibilities of introducing oil products through Eastern border of Moldova
The Government endorsed a series of amendments by which the method of introducing oil products through the Eastern border of the Republic of Moldova is modified. Thus, the Customs Service will clear oil products introduced through the border crossing point Novosavitskaya – Cuciurgan at the Bender 2 customs post on a temporary basis, until December 31, 2016. The measure was taken at the request of business entities importing lubricants and fuels that operate on the right side of the Nisru and in order to make sure that the Republic of Moldova, including the Transnistrian region, is supplied with oil products.

IMF publishes Memorandum of Economic and Financial Policies of Moldova

The International Monetary Fund (IMF) Office in Moldova on its website published the Memorandum of Economic and Financial Policies of Moldova and the Government’s letter of intent. Earlier, the Moldovan authorities said that after the document is published, they will provide detailed explanations about the reforms envisioned by this. The letter of intent says weak governance in Moldova’s financial sector, left unaddressed for years, enabled a large and well-orchestrated bank fraud in late 2014, with pronounced economic and social costs. Against that backdrop, real GDP contracted by ½ percent in 2015, public and public-guaranteed debt rose by 11 percent of GDP, the exchange rate depreciated some 25 percent, international reserves fell by one-third, and monetary conditions had to be tightened significantly to prevent a sharp increase in inflation. The situation has stabilized in recent months, but remains fragile. A concerted effort, with the financial and technical support of the international partners, will be critical to restoring confidence and allowing for broad-based inclusive growth.

SMEs analyze new development opportunities

Representatives of small and medium-sized enterprises of Moldova on November 10 met at an annual conference of SMEs. In his welcoming speech, Prime Minister Pavel Filip said the Moldovan SMEs showed that they can develop. These rose to a figure of 50,000 or 97% of all the companies that work in the country. The SMEs account for 55% of the exiting jobs and for 38% of the GDP. Among the actions taken by the authorities to support this sector of the economy, the Premier mentioned the decrease in the number of inspections and of inspection bodies and optimization of authorizing documents needed for starting and developing a business, whose number will be reduced from 414 to about 200 by the end of this year. Pavel Filip reiterated that entrepreneurs’ problems are a priority for the state institutions as the entrepreneurs create jobs and pay salaries, essentially contributing to improving living standards.

SMEs analyze new development opportunities

Representatives of small and medium-sized enterprises of Moldova on November 10 met at an annual conference of SMEs. In his welcoming speech, Prime Minister Pavel Filip said the Moldovan SMEs showed that they can develop. These rose to a figure of 50,000 or 97% of all the companies that work in the country. The SMEs account for 55% of the exiting jobs and for 38% of the GDP. Among the actions taken by the authorities to support this sector of the economy, the Premier mentioned the decrease in the number of inspections and of inspection bodies and optimization of authorizing documents needed for starting and developing a business, whose number will be reduced from 414 to about 200 by the end of this year. Pavel Filip reiterated that entrepreneurs’ problems are a priority for the state institutions as the entrepreneurs create jobs and pay salaries, essentially contributing to improving living standards.

● FRIDAY, November 11

Trans-Oil Group inaugurates expanded Grain Export Terminal at Giurgiulesti Port

Trans-Oil Group expanded the Grain Export Terminal at the Giurgiulesti International Free Port. Deputy Prime Minister and Minister of Economy Octavian Calmac, in a ceremony held to celebrate the completion of the grain export terminal expansion project, said the grain terminal opens up new possibilities for Moldova’s grain exports and also offers considerable support to agricultural producers as these will be able to swifter and in much more advantageous conditions export products to regional and international markets. “By this project, Trans-Oil Group has doubled the capacity of its Grain Export Terminal. This will contribute to making our products more competitive and accessible on international markets,” stated Octavian Calmac. In this connection, the Deputy Prime Minister noted that in the near future, in parallel with the development of the port’s capacities, an investment project will be designed and implemented to develop the infrastructure of the port and adjoining area, especially of Giurgiulesti.

New round to privatize state property

The Public Property Agency announced that a new round to privatize 54 state-owned facilities to the value of 1.41 billion lei will take place between November 11 and December 16, 2016. The Ministry of Economy said outcry auctions will be staged to sell 23 state-owned shareholdings assessed at over 773 million lei, according to the initial selling price. A commercial contest will also be held to privatize a building and 13 state-owned companies as undivided patrimonial complexes, estimated at over 585 million lei.

Measures to protect interests of depositors of savings and loan associations

A bill to supplement the Law on Savings and Loan Associations was approved by the Cabinet two days ago. Aurelia Doina, a member of the Administration Board of the National Commission for Financial Markets (NCFM), said the proposed changes will better protect the rights and interests of depositors of savings and loan associations. The range of non-banking financial services in rural areas, where these associations works, will be extended. The bill envisions the creation of a guarantee fund for deposits made at savings and loan associations. The goal is to compensate the depositors-private individuals in case of forced or voluntary liquidation of savings and loan associations or of their insolvency. The contributions to the fund will be set by the NCFM for maintaining 1.0% of the balance of deposits at savings and loan associations at the end of each term. For some of the associations, the NCFM can set special contributions, depending on risk, so as to guarantee the accepted deposits.

Objectives of new IMF program

The new program of the IMF for Moldova envisions a series of long-term objectives. The country pledged not to allow the external debt to increase through state-owned companies. In order to improve the management of the given entities, a bill on state-owned and municipal companies was worked out to make audit and quarterly reporting mandatory at these companies. The capacities of the National Agency for Energy Regulation will be strengthened so as to improve the methodologies of setting utility tariffs. The poverty reduction strategy will be updated and new social policy instruments will be designed to support the vulnerable groups of people in case of tariffs rises, Deputy Prime Minister and Minister of Economy Octavian Calmac stated in a news conference. The program provides for the enhancement of the competitiveness of the national economy, ensuring of economic and budget stability, overcoming of vulnerabilities in the sectors of the economy, obtaining of progress in implementing sector reforms and the adopted strategies, as regards the augmentation and diversification of exporta, attraction of investments and reformation of the state economic and commercial policies.

● SATURDAY, November 12

Solutions for owners of motor vehicles registered in Transnistria

The holders of driver’s licenses issued by the Moldovan constitutional authorities who will travel on public roads on the right side of the Nistru River by motor vehicles registered in the Transnistrian region risk to be fined. A bill to this effect was recently approved by the Government and is to be passed by Parliament. The authorities suggest solutions for this category of drivers so that thy avoid penalties. One of them is to register the motor vehicles on the right side of the Nistru. A facilitated vehicle registration regime will be applied during two months. Head of the General Fiscal and Customs Policy Legislation Division of the Ministry of Finance Dorel Noroc said that after the law is adopted, the owners of such vehicles will be able to register them on the right side of the Nistru by paying only 30% of the excise duty set for 2016 between December 1, 2016 and February 1, 2017.

Experts warn about shortcomings in management of state-owned companies

The results of the management of state-owned companies and commercial organizations with state capital in Moldova point to shortcomings related to transparency and reveal the necessity of stepping up efforts in order to remove the drawbacks concerning public access to information about the performance of these entities. Such conclusions are contained in a note of position on transparency at state-owned companies and commercial organizations with state capital published by the independent analytical center “Expert-Grup”. Note author Vadim Gumene, programs director at “Expert-Grup”, said that despite the efforts made by the Government to privatize public property, this continues to account for an important share in a number of spheres of the national economy. Therefore, the management, control and reporting at economic entities with state capital are very important, including from the perspective of sustainable corporate management practices.