● MONDAY, November 14
Customs Service to work based on new organogram
Starting with next year, the Customs Service will work based on a new organogram that envisions the transfer of powers and responsibilities to customs offices and cutting of administrative posts. The new changes will be accompanied by salary raises whose size will depend on performance, Customs Service director general Vitalie Vrabie said in a meeting. In a press release, the institution says that according to the new organogram, the seven customs offices will be merged and three subdivisions will be created: North, Center and South. The number of employees will be reduced to 1,520, down from 1,728 at present.
● TUESDAY, November 15
Credit Risk Register put into operation
The National Bank of Moldova announced that the implementation of the Credit Risk Register project has been completed. Now the National Bank will be able to concentrate detailed, reliable and prompt information related to credit risk to which licensed banks are exposed. The Credit Risk Register accumulates detailed information from the licensed banks of the Republic of Moldova about the totality of loans granted. This information is reported to the National Bank of Moldova, in accordance with the regulations that came into force on July 1, 2016. In a press release, the National Bank says the availability of the complex operational data allows the central bank to identify the respective risk not only by sector, but also by group of banks or at each bank. It also contributes to early identification of portfolio credit risks, ensuring an analytical and interpretative investigation process when the National Bank of Moldova takes remedial action.
Price ceilings for gasoline and diesel fuel reduced
The National Agency for Energy Regulation on November 15 announced the fuel price ceilings for the next two weeks. The price ceilings for gasoline and diesel fuel were both decreased, by 0.8 lei and 0.9 lei respectively. For a liter of gasoline coded 95, the price ceiling for the next two weeks is 15.98 lei. Diesel fuel will cost 13.86 lei at most. The new price ceilings will be applied between November 16 and November 29.
● WEDNESDAY, November 16
Patent holders take to streets again Nov. 18
The holders of patents for entrepreneurial activity on November 18 will mount a new protest in front of the Government Building to demand that the ban on patent-based entrepreneurial activity from January 1, 2017 should be annulled. In a news conference at IPN, president of the Small Business Association Eugen Roscovanu said about 200 people are expected to take part in the protest that will continue in front of the Parliament Building. Eugen Roscovanu said patent holders during the last two weeks took part in meetings of the Premier’s Economic Council, where they had heated discussions with its members and with representatives of the State Main Tax Inspectorate. A person informed about a number of companies that work in the underground economy or avoid paying taxes. Later this person was threatened. They consider some members of the Economic Council or officials of the Tax Inspectorate protect business entities that work illegally. In another case, a member of the Small Business Association who distributed leaflets by which the people were invited to come to the November 18 protest was threatened and told to stop. Eugen Roscovanu said this is pressure exerted on the small business.
Capacities of Marculesti Airport could be expanded
The possibility of increasing the capacities of the Marculesti Airport and its modernization by erecting adjoining buildings and infrastructure was discussed during a visit by Prime Minister Pavel Filip to the airport. “We inherited an airport that was managed not so efficiently as to make it profitable. We will identify the problems and constraints faced by these state-owned companies. I think enormous potential exists here and it should and will be realized after we find a more pragmatic approach and establish a clear objective how we can transform this enterprise,” stated the Premier. The airport has a double destination – civil and military. It provides airport services and aircraft rental and storage services. It is located at the intersection of commercial and economic ways. The airport’s resident companies benefit from customs and fiscal concessions and can retail, pack, sort, mark goods and do other related operations. The investments made in the airport in May 2009 – September 2016 totaled US$13.87 million.
Moldova’s wines presented at Vinexpo Tokyo
For the first time, the national products promoted under the umbrella of the national brand Wine of Moldova took part in the exhibit Vinexpo Tokyo in Japan on November 15-16. The event brought together wine companies from 15 countries, which presented 500 different wine and spirits brands. Gheorghe Arpentin, director of the National Office of Vine and Wine, said the Wine of Moldova becomes more popular on foreign markets and this contributes to strengthening the image of wine abroad and to increasing the number of consumers of Moldovan wine. Moldova’s Ambassador to Japan Vasile Bumacov said the stand Wine of Moldova was among the most attractive ones and impressed the visitors of the exhibition. “Our winemakers were besieged owing to the high-quality wines and their specific style. The journalists were impressed by the fact that Moldova has made wines for thousands of years and by the successful combination of our wines and the remarkable Japanese gastronomy,” stated the diplomat.
● THURSDAY, November 17
Preconditions for stimulating electronic trading
The Government approved a number of amendments and supplements to the Law on Electronic Trading. Deputy Prime Minister and Minister of Economy Octavian Calmac said the goal is to eliminate the shortcomings existing in the national legislation and regulations and to apply new regulations based on the European legislation, in accordance with the Moldova – EU Association Agreement. “The implementation of these regulations will offer more possibilities of developing online trading in Moldova,” stated Octavian Calmac. An important aspect in this regard is to stimulate the economic growth of enterprises and increase investments in innovations, which develop owing to the electronic systems and contribute to increasing the competitiveness of companies. The Consumer Protection Agency will provide all the relevant information to those interested in electronic trading.
2017 draft fiscal and customs policy approved by Government
The taxable income in 2017 will be increased by adjusting it to the rate of inflation (forecast at 5% for next year), up to 31,140 lei, as opposed to 29,640 lei this year. The income tax rates will remain the same - 7% on incomes up to 31,140 lei and 18% on larger incomes, IPN reports, quoting the draft fiscal and customs policy for next year that was endorsed by the Government. The personal annual exemption will increase from 10,128 lei this year to 10,620 lei in 2017. The increased personal exemption for particular groups of people will be raised from 15,060 lei to 15,840 lei, while the exemption for maintained persons will be 2,340 lei, up from 2,256 lei. The private individuals, who earn money from independent trading activities with other private individuals, without representing a legal organizational form of entrepreneurial activity, will pay a tax equal to 1% of their revenues, but not less than 3,000 lei a year. This applies to private individuals whose annual incomes from trading do not exceed 600,000 lei.
New requirements for Internet and storage service providers
The Internet and storage service providers will have to promptly inform the authorities if their clients perform illicit activities. They are obliged to provide information to help identify the service recipients. The Government on November 16 approved a bill to amend and supplement the Law on Electronic Trading. The document provides that this information can be presented to the Ministry of the Interior, the Information and Intelligence Service and the Prosecutor General’s Office. Under the bill, the Internet and storage service providers must ensure an easily accessible and visible device for the public for the purpose. Also, when processing personal data, the providers must be obliged to respect the confidentiality regime so that the data cannot be destroyed, modified, blocked, copied or spread illegally. If the personal data need to be processes for preventing, investigating and identifying acts of fraud related to the information society services, these are used without the consent of the person to whom the data refer.
Parliament accepts two loans from IMF
The legislative body on November 17, 2016 approved two state loans from the International Monetary Fund, of almost US$44 million and of about US$59 million. The money will be used to finance the state budget deficit. Minister of Finance Octavian Armasu said the two loans will be provided through two financing mechanisms. The first loan of 31 400 000 Special Drawing Rights (SDR) will be provided through the Extended Fund Facility. The interest rate on this is equal to the SDR interest rate. According to the minister, the commitment fee is 0.15% a year, while the service tax is 0.5% a year. If Moldova respects the repayment plan, the commitment fee will be refunded. The loan is repayable in 10 years.
● FRIDAY, November 18
Fiscal regulations for 2017
The Moldovan companies will be able to apply a management period different from the calendar year, as it is provided in a bill to amend and supplement a number of legal acts concerning the fiscal and customs policy objectives for next year approved by the Government. The bill stipulates that the Anticipated Individualized Fiscal Solution (AIFS) will start to be implemented next year. This is a certificate that will be issued by the State Tax Service at the request of private individuals or legal entities that perform entrepreneurial activities. By this the fiscal bodies will specify how the fiscal legislation will be applied in a particular situation or for particular transactions. When the AIFS is issued, this becomes mandatory for all the fiscal bodies, but only when the initially set conditions are strictly respected by the entrepreneurs and the fiscal legislation remains unchanged. The experience of a number of European states that apply the AIFS shows that the number of disputes between t economic operators and the fiscal authorities decreased. The Anticipated Individualized Fiscal Solution will be issued for money - €3,000 for large taxpayers and €1,500 for the other categories of taxpayers, according to the official exchange rate of the Moldovan leu when the payment is made.
Exports of vegetal products from Moldova diversity
A positive trend is witnessed in the export of vegetal products from Moldova – the assortment is diversified, while the Moldovan farmers discover new products that are in demand on foreign markets, director of the National Food Safety Agency Gheorghe Gaberi said in a news conference, quoted by IPN. Gheorghe Gaberi noted that Moldova’s exports of vegetal products during the first ten months of this year were larger than throughout 2015. In January-October, the exports came to almost 210,000 tonnes of fruit, as opposed to slightly over 155,000 tonnes in 2015. The fruit exports have diversified. Earlier, there were exported mainly apples, but now they also deliver abroad plums, apricots, peaches as well as raspberry, strawberries, cherries and grapes. Gheorghe Gaberi said the exports of berries and stone fruits bring a larger surplus value to producers.
National Bank appoints members of Administration Committee and Board of Moldindconbank
The Executive Board of the National Bank of Moldova nominated the members of the Administration Committee and Board of the commercial bank Moldindconbank. The Administration Committee consists of chairman Aureliu Cincilei, first deputy chairman Victor Cibotaru and deputy chairpersons Iurie Ursu and Svetlana Magdaliuc. The Board is formed of five members. Lithuanian citizen Giedrius Steponkus, who is a former member of the Supervisory Board and vice president of the Vilnius Stock Exchange, member of Banking Stakeholder Group, was named as chairman. The other Board members are: Nicolae Dorin, president of the Moldovan Banks Association who was earlier president and first vice president of BC Mobiasbanca, Anna Gheorghiu, former first vice president of BC Moldova-Agroindbank and president and first vice president of BC Moldindconbank, Elena Punga, ex-administrative director in the regional network of branches and local offices of Mobiasbanca, and Aureliu Cincilei, vice governor of the National Bank of Moldova.
● SATURDAY, November 19
Vegetal products that Moldova can export
The medicinal plants and essence and oleaginous plants are very popular on the European markets and the Moldovan farmers could satisfy this demand if they invested more in this field. Particular types of fruit, like the flat peaches, are also in demand abroad, said the director of the National Food Safety Agency Gheorghe Gaberi. In a news conference, Gaberi said the pharmaceutical industry develops and the demand for medicinal plans on foreign markets is very great and this is an area that the Moldovan farmers could easily assimilate. Perfumery is another area that needs raw material in considerable volumes. The areas sowed with essence and oleaginous plants, such as lavender, have been expanded in Moldova during the last few years. These plants bring large revenues to producers, especially because they can be cultivated in the absence of irrigation systems. According to the Agency’s director, investments are required in fruit production. Apples are produced in large quantities by other countries too, such as Poland, and Moldova does not yet cope with the competition, especially because sorts that are less popular are grown here. The Moldovan farmers could focus on growing early season apples as there are some free niches in this regard.
Authorities looking for solutions to launch export of grapevine cuttings to EU
Even if the Republic of Moldova produces high-quality grapevine cuttings, these cannot be exported to the European Union. The authorities are looking for solutions to convince decision-makers in Brussels to allow exporting grapevine cuttings from Moldova even if the country is not an EU member, director of the National Food Safety Agency Gheorghe Gaberi has said. According to him, there is an EU directive that bans the import of grapevine cuttings from non-EU member states. But now that Moldova and the EU fully benefit from the Deep and Comprehensive Free Trade Regime, the Moldovan authorities are holding talks with Brussels so that the export of such cuttings from Moldova is allowed. It’s not fair that EU countries can export grapevine cuttings to Moldova, while Moldova cannot.
New regulations on declaration of customs value of goods in force
Starting with November 19, 2016 the Customs Service will apply the EU norms concerning the declarations of the customs value of imported goods. The lowest amount for which a Customs Value Declaration is not mandatory rose to €5,000, up from €300 until now. The regulations enable the business entities to use the imported goods on condition that they later present conclusive documents to show their customs value and provide a guarantee that would cover the difference between the import duties set depending on the customs value and the duties set provisionally by the customs bodies.
Beekeepers urged to promote consumption of honey at internal level
Minister of Agriculture and Food Industry Eduard Grama, in a discussion with beekeepers, said the Moldovan bee honey is increasingly popular abroad, but the consumption of honey in the country is not promoted. The people do not eat much honey, while the honey that remains in the country is not of the highest quality. Eduard Grama gave the example of Bulgaria, where they offer to choose between sugar or honey in all cafes and restaurants. “Honey is served is packets of 8-10 grams and this is a promotional method. Regretfully, in Moldova, if you ask honey in a restaurant, they bring you honey from a jar kept in the fridge. If you do not ask, you are not offered,” he stated. Eduard Grama insisted that the consumption of honey should be promoted. Packing of honey in small amounts implies large costs, but a solution is for the beekeepers to form associations. “Don’t think that someone owes you something. Start from the idea that you must combine forces and develop,” said the minister.
Pavel Filip: Agriculture is a strategic sector for Moldova
The agricultural sector is a strategic one for the Republic of Moldova both from economic viewpoint and from the viewpoint of the social impact because a large number of people work in this sector, Prime Minister Pavel Filip said in a festive event staged by the Ministry of Agriculture and Food Industry on the occasion of the Farmer’s Day. According to the Premier, this year the Government managed to increase the agriculture subsidization fund and to implement a number of projects to finance agriculture and to also enable the farmers to directly import diesel fuel for field works. Pavel Filip said that following the approval of the new program by the International Monetary Fund, Moldova will get US$110 million by the end of the budgetary year. A part of this money will go to develop the economy, including aeroculture. The program does not oblige to reduce agricultural subsidies and to increase the retirement age, as it is speculated in society.
