● MONDAY, October 23

Danger of frauds by substituting data in banking accounts

The number of cyber frauds that involve business entities that import goods and raw materials has increased in Moldova. Hackers infect the information systems of companies with malware and launch phishing campaigns and consequently obtain passwords to email accounts. Using these passwords, they illegally access and actively monitor the electronic mailbox. The hackers can thus read the business correspondence with foreign factories and plants. When accessing email messages by which the goods delivery and payment conditions are negotiated by Moldovan businesses and foreign companies, the hackers replace the copies of contracts for the provision of services and banking data that are contained in the invoices sent by foreign companies. Later they make Moldovan importers to transfer money to bank accounts specially opened by accomplices for the purpose.

Discrimination against women with disabilities is a sad reality in Moldova, statement

The discrimination against women with disabilities is a sad reality in the Republic of Moldova. These women are discriminated in the relations with state institutions, are excluded from the labor market and cannot take part in the political life, UN Women Representative to Moldova Asya Varbanova said in the opening of the national forum of women with disabilities on October 23. Asya Varbanova noted that the women with disabilities make up 48% of the persons with disabilities in Moldova. They are active, have potential to change something and can contribute to developing the community and the country. These women have ideas that should be put into practice, should be analyzed and taken into account when state policies are worked out. According to the UN Women Representative, even if steps have been taken to combat discrimination against women with disabilities in Moldova, a lot is yet to be done. The broader representation of women will contribute to better observance of human rights in the Republic of Moldova.

Over 3m saplings to be planted during Greening Campaign

More than 3 million saplings will be planted on an area of 555 hectares within the National Greening Campaign that opens on October 28 and will last for two months. Natural regeneration works will be performed on 250 hectares. The subdivisions of the Forestry Agency “Moldsilva”, the local public authorities and all those who are interested in nature in Moldova are invited to take part in the campaign. Minister of Agriculture, Regional Development and Environment Vasile Batca told a news conference that the other ministries, agencies or local public authorities will receive an invitation to take part from “Moldsilva” on October 23. “The campaigns will include the planting of trees and bushes on areas managed by “Moldsilva”. The forests are in need of regeneration,” stated the minister.

● TUESDAY, October 24

National Institute for Economic Research updates economic growth forecast

The National Institute for Economic Research has updated its economic growth forecast for 2017, given the developments in the first semester and some indicators recorded in August and September. The new forecast is of 2.4%, which is lower than the figure projected at the start of the year and in May. Positive trends were witnessed in the first half of the year, such as the growth in external trade and the rise in the amounts collected into the budget. Also, for the first time in the last few years investments increased, but not enough to play a decisive role in the formation of the GDP, said the Institute’s director Alexandru Stratan. On the other hand, some of the important indicators in GDP formation are lower than the projected ones. For example, the Institute anticipated a 4.2% growth in industry, but the growth is of only 1.2% and was seen especially in August and September. As to agriculture, even if the situation seems to have improved during the last few months, this sector will not stage a 4.2% growth, as it was forecast.

● WEDNESDAY, October 25

IMF mission to visit Moldova

An International Monetary Fund (IMF) mission led by Ben Kelmanson will visit Chisinau during October 25 – November 7, 2017. The mission will hold discussions with the authorities in preparation of the 2017 Article IV consultation and in the context of the second review of Moldova’s IMF-supported program under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements. The mission will take stock of the recent economic developments and the progress in authorities’ program implementation, update and assess the macroeconomic outlook, and discuss with the authorities their macroeconomic policies in the period ahead..

World Bank ready to offer preferential loans to Moldova

The World Bank is interested in developing the bilateral relations with the Republic of Moldova and is ready to offer preferential loans at the lowest interest rate in Europe for implementing investment projects of national importance in different areas, Frank Heemskerk, WB Executive Director for Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, Israel, Macedonia, Moldova, Montenegro, Romania, the Netherlands, and Ukraine, stated in a meeting with Deputy Prime Minister Octavian Calmac, Minister of Economy and Infrastructure. Frank Heemskerk informed Octavian Calmac that the World Bank is ready to release a loan of US$25 million to Moldova for implementing climate change projects with an impact on economic developments, environment, infrastructure, etc. Furthermore, the WB offered Schwarz-Gruppe a loan for implementing a project to extend the Kaufland chain, which is a division of the German concern, to the Republic of Moldova. The official noted that the given decision was taken because the German concern is a reliable partner that fulfills all the assumed commitments.

Moldovan apples returned from Russia

About 20 tonnes of Moldovan apples were sent back from Russia following checks at the border crossing point “Krupetskii” in Kursk region. The apples were to be delivered to a plant in Bryansk. According to a press release placed on the website of the Federal Service for Veterinary and Phytosanitary Surveillance of Russia, the Oriental fruit moth was detected in the consignment. Earlier, after several consignments of Moldovans plums were returned from Russia, director general of the National Food Safety Agency Gheorghe Gaberi said it is normal for some of the fruits to contain pests. The consignments of plums that were returned from Russia until now because they contained the Oriental fruit moth, which is a quarantine object on the territory of this state, have been examined in Moldova and no irregularities were identified in them.

Apple harvest this year larger than in 2016

The apple harvest this year is larger and of a higher quality than last year. The producers have bigger chances of exporting apples to the markets of the EU and Russia, where the harvest is lower and the apples were damaged by frost. Executive director of the Association of Fruit Producers and Exporters “Moldova Fruct” Iurie Fala said about 430,000 tonnes of apples will be harvested this year. “The quality is higher and the quantity is by about 3% larger than last year at a time when the harvest in the European Union is by 23% lower, while the large producing countries have a minus of 30% like Poland or of 46% like Germany,” he stated.

● THURSDAY, October 26

Government and EBRD strengthen cooperation relations

The support and expertise of the European Bank for Reconstruction and Development are important for the Republic of Moldova, either it is about the energy sector, the business community or road infrastructure, Prime Minister Pavel Filip stated in a meeting with EBRD directors. The Premier noted the EBRD’s assistance in supporting the discussion platform between the Government and the business community. As a result of this dialogue, the number of institutions with inspection duties and of permissive documents was reduced, while the salary reporting procedure and the procedure for obtaining permits of stays by foreigners were simplified. The obligation to have stamp and employment record book was eliminated and the Labor Code was amended.

15 companies sign application to create first IT Park in Moldova

Fifteen IT companies from Moldova signed an application addressed to the Ministry of Economy and Infrastructure concerning the creation of the IT Park “Moldova IT Park”. The Ministry has 30 days to examine the package of documents and take a decision as to the launch of the procedure for creating the IT park. In the application signing ceremony, Ana Chirita, executive director of the National Association of ICT Companies, said the goal of the project is to generate preconditions for developing the information technology industry, create new jobs and attract national and foreign investment. The application submitted to the Ministry of Economy and Infrastructure was signed by Alfasoft SRL, ICS ES Technosoft SRL, Esempla Systems SRL, IM FBS-Group SRL, IM Inther Software Development SRL, Invensis Soft SRL, Meta-Sistem SRL, Nocsoft SRL, ICS Qsystems SRL, Ritlabs SRL, Simpals Dev SRL, Simpals Studio SRL, Starlab SRL, ICS Switchover SRL, and Webtech SRL.

Mandatory health information on food labels

The companies will be obliged to indicate 243 health components on labels of food products, others than those that refer to the reduction of the risk of infection and the development and health of children. The information refers to vitamins, organic acids, salts, biotins, microelements, enzymes, etc. The bill was drafted by the Ministry of Health, Labor and Social Protection and was proposed for public debates. The authors of the bill say the goal is to increase the access to information and the protection level of the population’s health and to adjust the conditions on the domestic market to those on the EU market.

Investments in Free Economic Zones up 40% on last year

The employees of Free Economic Zones (FEZes) in January-September this year totaled 11,000, up 63% compared with the corresponding period last year. By the end of this year, the number of employees will rise to 12,500 and is expected to double during the next two years. The results achieved by the seven FEZes of the county in the first nine months of this year were presented by Deputy Prime Minister Octavian Calmac, Minister of Economy and Infrastructure, in a news conference. The Deputy Prime Minister said two new subzones of the Vulcanesti Free Enterprise Zone were created in 2017, in Ciadar-Lunga and Comrat. Another novelty is that the Government, following amendments made to the legislation, will be able to sign investment agreements to implement strategic projects for the national economy, which means additional guarantees for those interested in investing in Moldova. The seven FEZes attracted investments of US$350 million, over US$62 million of which so far this year. This is an increase of 40% compared with the first nine months of 2016. The largest investments, of US$150 million, were made in the Balti FEZ. By US$70 million was invested in the Ungheni and Chisinau FEZes. “During the next two years, we expect investments of up to US$280 million to be made in the Balti FEZ as this has the largest number of subzones,” stated Octavian Calmac.

Movement restrictions at Sculeni customs post

Movement restrictions will be imposed at the Sculeni customs post between October 26 and November 4 in connection with works to rehabilitate road infrastructure at the freight terminal of the Sculeni Customs Office of Romania. The Customs Service recommends freight carriers to choose other customs posts to cross the border so as to avoid congestion.

● FRIDAY, October 27

Daniel Ionita: Iasi-Ungheni-Chisinau gas pipeline could become functional next yearend 
 

The Iasi-Ungheni-Chisinau gas pipeline could become fully functional at the end of 2018 if the plan of action agreed by Romanian and Moldovan energy specialists is respected, Romania’s Ambassador in Chisinau Daniel Ionita stated in the program “Moldova live” on the public TV channel Moldova 1. Daniel Ionita said the Iasi-Ungheni-Chisinau gas pipeline is a strategic project that will ensure an essential thing for the Republic of Moldova – energy security – by diversifying the gas supply sources. “The given project goes straight now as a meeting of the joint intergovernmental commission specialized in economy was recently held in Bucharest and one of its sessions centered on energy interconnection and the participants agreed a plan of action on that occasion,” stated the diplomat.

Moldova-Agroindbank tops banking performance rankings 

Moldova-Agroindbank (MAIB) heads the banking performance rankings in Moldova, being followed by Mobiascanca, Moldindconbank (MICB) and Victoriabank (VB). The rankings were compiled by experts of the independent think tank “Expert-Grup”. For these banks, most of the calculated indicators continue to be within the limits accepted by the banking practice. In particular, these banks excel in profitability and market indicators and thus hold a significant share of the national banking market. Also, the capital adequacy and liquidity ratios are close to the average recorded in the sector, but are slightly over the limits recommended by banking literature. This is actually typical of a number of banks. Solidly capitalized in the context of the process of transposing the Basel III norms and with liquid assets in excess following the constraints existing in the lending process, the banks incur opportunity costs. This reveals the reduced development level of the national financial system and general intermediation mechanisms.

Some “cash-in” terminals do not yet accept new-type banknotes 

Some of the automated “cash-in” terminals do not accept new-type banknotes that were put into circulation by the National Bank of Moldova in October 2015. A part of these do not post information about the non-acceptance of such bills. As some of the terminals do not return the “swallowed” bills if the transaction is not completed, the person who initiated this and does not have sufficient banknotes of the old model will be unable to recover the money if only after contacting the operator and following their recommendations. In a response to an inquiry, the central bank says it recommended the nonbanking payment service providers to adjust the terminals before the issuing of the new banknotes. Some of the providers adjusted the equipment and the modernized banknotes are accepted, while others are in the process of adjustment. Some of the providers still post warnings at terminals about the temporary technical problems related to the acceptance of new bills. The National Bank of Moldova said it didn’t set a deadline for adjusting the equipment to the new banknotes and is now analyzing the problem so as to formulate new regulations if need be.

Trade with EU during first year of implementation of DCFTA developed, expert 

During the first years of implementation of the Deep and Comprehensive Free Trade Agreement (DCFTA), trade between Moldova and the EU witnessed positive developments. Even if export prices decreased, the volume of exports grew and the value of supplies to the EU consequently increased. On the other hand, imports declined under the influence of the modest growth of imports from the EU and the reduction in import prices. As a result, the commercial relations improved. The balance of trade deficit with the EU in 2016 halved compared with 2014. The findings are contained in an analysis conducted by Alexandru Fala, expert of the independent think tank “Expert Grup”. The expert said the liberalization of trade with the EU didn’t cause shocks for the vulnerable sectors of the national economy, such as agriculture. Moreover, the exports of agrifood products exceeded the imports of these goods from the EU.

Non-utilization of patents does not bring profit, AGEPI director 

The intellectual property sector remains a challenge for the Republic of Moldova. More information is required and the intellectual property rights should be respected. IPN had a discussion on the issue with Lilia Bolocan, director general of the State Agency on Intellectual Property (AGEPI). The intellectual property is private property. After registration, the owner is responsible for the protection of the property. A protection certificate offers exclusive rights over the registered property. No one can use it without the consent of the owner. If there is a registered brand name for particular products and/or services, other persons can make or sell identical or similar products under the same brand name only with the consent of the owner. Thus, the owner can sue those persons and claim damages. The protection of intellectual property in Moldova can be requested by submitting an application directly to the AGEPI (national procedure) or through the World Intellectual Property Organization (international procedure). The procedures for intellectual property types are different, as is the length. They consist of several stages, such as examination of the application submission conditions, publication in the Intellectual Property Bulletin, followed by a period of three months for those interested to submit observations, examination and issuing of the decision to register or reject the application. To register a trademark for one class of products or services, with protection enjoyed during ten years, the applicant will pay €490. The private individuals and small and medium-sized enterprises can benefit from 50% discounts. According to Lilia Bolocan, money for extending the duration of the invention patents after the first five years can be obtained only by owners that used the intellectual property rights and implemented the innovation.

Pavel Filip: Government expects IMF assistance in doing reforms 

The Government expects support and assistance from the International Monetary Fund (IMF) in doing important reforms, Prime Minister Pavel Filip stated in a meeting with the IMF mission led by Ben Kelmanson. Pavel Filip said the measures aimed at improving the business climate have already produced results and such efforts will be continued. Special attention was devoted to the public administration reform, where substantial progress was made. Among the Government’s mid-term and long-term priorities, the Premier mentioned education, rule of law and road infrastructure improvement. For his part, the IMF mission chief Ben Kelmanson said progress has been noticed in particular sectors, but the efforts need to be continued. The goal of the mission is to take stock of the recent economic developments and the progress made by the authorities in fulfilling the commitments under the IMF-supported program, to update and assess the macroeconomic outlook. The results of the review will be presented in the final report.

Price of pack of cigarettes without filter to rise by up to 5 lei 

The lowest selling price of cigarettes without filter will be 10 lei a pack, while of those without filter with holder – 12 lei a pack, as opposed to 7 lei a pack at present. A bill to this effect was passed by Parliament on October 27. The lowest price of cigarettes with filter remains 16 lei a pack. Bill author Iurie Chiorescu said in Parliament it was noticed that the lowest limit of 7 lei a pack for cigarettes without filter is not sufficient for helping achieve the assumed objectives – to increase the state budget revenues and to protect the population’s health.

● SATURDAY, October 28

Tax inspectors impose fines on taxi firms

Sixteen taxi companies and drivers were fined a total of 11.7 million lei as a result of inspections carried out by employees of the State Tax Service during October 17-25. Of this sum, 10 million lei has been already paid. According to the State Tax Service, during the inspections performed in concert with the National Patrolling Inspectorate and the National Auto Transport Agency with the aim of fighting illegal passenger transportation among taxi firms, it was established that some of the cab drivers illegally provided passenger transportation services.

Prices of authorizations for international road transport to be decreased 

Parliament voted a bill to reduce the prices of authorizations for international road transport in the first reading. The authors of the bill said the prices of such authorizations in Moldova are much higher than in the neighboring states. Furthermore, the national carriers pay the most expensive Green Card insurance and a road tax that is almost twice higher. As a result, the carriers lose clients and are noncompetitive on the market compared with other road carriers of the region. Some of the taxes will be reduced from €700 to €120 or even ten times for a route, from €30 to €3, depending on the route. MP Oleg Lipskii, one of the authors of the bill, said in Parliament that owing to the high taxes, about 40 road carriers stopped work, while others registered transport companies in the neighboring states and work there. The number of new units of transport purchased by national carriers decreased considerably.