● TUESDAY, September 1
New round to privatize public property
Two contests – an investment one and a commercial one – will take place within the new round of privatization of public property between August 28 and October 7, which is the deadline for the submission of bids. The movie theaters in Falesti and Leova districts will be privatized within the investment contest. Their initial selling price is over 1.2 million lei, while the minimum required volume of investments is 2.7 million lei made during three years. The commercial contest is held to sell state-owned shares in a joint stock company and in 18 state-run companies (undividable patrimonial complexes) and a building. The total price of the property exhibited for sale at this contest is over 743 million lei.
Moldovans speak more on mobile phone this year
The National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) said that the mobile telephony market in the first half of this year continued to be marked by a rise in the volume of voice traffic amid a slight increase in revenues from sales of such services. The total volume of traffic in mobile networks grew by about 5% on the same period last year to over 3.1 billion minutes. Sales of mobile phone services rose by 2.2% to 1.7 billion lei. The rise in the volume of traffic was the main factor that determined the 2.2% increase in the revenues earned by the main three mobile phone carriers. This rise is exclusively due to SA “Moldcell”, which increased its sales by 10.7% to 476 million lei.
Farmers demand paying subsidies by Sept. 10
The farmers demand increasing the agriculture subsidization fund and paying the overdue agricultural subsidies and compensations to farmers by September 10. They also demand creating commissions at the central and local levels to assess the situation and compile lists of companies that were the worst hit by the drought by the same date. In a petition to the authorities, representatives of farmers say that this year the harvest is by 50-60% lower owing to the weather conditions, while the depreciation of the national currency causes even more serious problems to the agricultural producers that cannot cover their costs.
● WEDNESDAY, September 2
One bid for investigating dubious transactions at three banks
A consortium of companies submitted a bid within the contest announced by the National Bank of Moldova (NBM) for investigating the irregularities and transactions that involved Banca Economii, Banca Sociala and Unibank. This consortium is formed of the companies Kroll and Steptoe & Johnson LLP. The deadline for applications was September 1. In a communique, the central bank says it will examine the bid and will present the results of the assessment the next days, in the meeting of the National Committee for Financial Stability. The final objective of this investigation is to provide the NBM with a clear chronological picture regarding the persons who managed the dubious transactions, who controlled the banks and who benefitted from the given transactions, to identify the irregularities and significant losses sustained by these banks and to work out and implement a strategy for recovering the assets.
Conference “Successful experiences of women entrepreneurs” to be held in Chisinau
The Organization for Developing the Sector of Small and Medium-Sized Enterprises stages a national conference entitled “Successful experiences of women entrepreneurs” in Chisinau for the first time. The event, which will take place on September 9, aims to promote and develop women entrepreneurship in the countries that take part in the international project “Women Entrepreneurship – a Job Creation Engine for South Eastern Europe” and to disseminate the successful practices in this area. The conference will present the opportunities for women to start businesses in Moldova. There will be discussed the main difficulties hampering the more active involvement of women in business and encouraged the spirit of entrepreneurship by presenting the successful practices of women entrepreneurs from nine states, three of whom are from Moldova and were nominated for the results achieved in Leadership, Orientation to the Client and Financial Education.
Revenues of over 270m lei from sale of wireless Internet services
The number of users of mobile Internet access services (through 3G, 4G networks and modems/cards/USB – dedicated access) in the first half of 2015 rose by over 51,200 (4.3%) compared with the end of 2014, to over 1.2 million. Most of these were users of 3G services. The statistical data of the ICT regulator ANRCETI show that the number of 4G mobile broadband users in the first six months of this year rose by 80% to 59,300, of 3G (UMTS/HSPA) mobile broadband users – by 9.3% to 1.29 million, while of users of dedicated access to wireless Internet – by 10.7% to 295,500.
Irrevocable decision: RED Union Fenosa will pay fine of over 186,000 lei
The Supreme Court of Justice upheld the decision of the Appeals Court by which RED Union Fenosa was fined over 186,000 lei for violating the legislation on competition. The money will be transferred to the state budget. The Competition Council said the decision to impose the fine was taken after the Council filed a lawsuit against RED Union Fenosa, accusing it of taking a dominant position on the market.
Alexandru Slusari: Premier suggested that chances for agricultural package to be passed are slim
The chairman of UniAgroProtect Alexandru Slusari said the farmers hoped that their demands to remedy the situation in agriculture will be fulfilled when the agricultural package is adopted. However, after they were promised that this package will be passed in July at the latest, Parliament went on vacation and the package was adopted in the first reading only, while Prime Minister Valeriu Strelet in a recent meeting suggested that the chances for this package to be passed in the second reading are slim owing to the position of the IMF. In an interview for Radio Free Europe, Alexandru Slusari said that when he met with the Premier the last time, he told him that his signature is also present on a number of the bills from this package. “He told us to go to those with whom we negotiated, but he is a person who represents a party of the ruling alliance,” he stated, noting that a part of the farmers consider that by the promise that the package will be passed, made by Head of Parliament Andrian Candu, the Democratic Party wanted to delay things so that the agricultural producers didn’t stage protests.
● THURSDAY, September 3
Reforms will unlock investment, EBRD
Reforms will unlock investment in the country. This is the message transmitted by a senior delegation from the European Bank for Reconstruction and Development (EBRD), led by Francis Malige, Managing Director for Eastern Europe and the Caucasus, which visited Moldova on September 1-2 for high-level talks. According to a press release of the Bank, discussions focused on the EBRD’s investment in Moldova, its strategic priorities and the urgent need to reform the business climate in the country. “Moldova is going through a particularly difficult time – a banking crisis, currency weakening and a sharp economic decline. To attract investment which will generate jobs and boost the economy, the country urgently needs to reform, clean up its banks and fight corruption; and I am pleased to see that the government seems to share a sense of these priorities,” said Francis Malige. In a meeting with Prime Minister Streleț, Francis Malige reinforced the EBRD’s strong commitment to supporting the Moldovan economy and economic reforms.
Moldovans speak less on landline, but pay more for this service
The number of users of the landline home phone service and the volume of voice traffic in the landline networks in the first half of this year continued to decrease. However, the revenues obtained by the providers have increased. The National Regulatory Agency for Electronic Communications and Information Technology said the number of home phone customers decreased by 0.8% compared with the end of 2014, to 1.2 million, while the total volume of voice traffic declined by 21.4% to 1.7 billion minutes. The penetration rate of the landline service fell to 34%. The revenues received by SA “Moldtelecom” from landline phone services in the period rose by 0.8% to over 476 million lei. The aggregated revenues of the 22 alternative landline service providers grew by 5.3% to more than 31.8 million lei.
First class train tickets at price of second class tickets
Starting with September 7, the passengers of the modernized trains running on the Chisinau – Ocnita and Chisinau – Ungheni routes will be able to purchase first class tickets at the price of second class tickets. The reduction will be of 10 lei on average, acting director of the state-run Moldova’s Railways Iurii Topala has told. The decision is aimed at stimulating the population to travel by train and at increasing the company’s revenues from passenger traffic. On September 15, Moldova’s Railways will launch a new offer. During two weeks, the passengers will be able to buy tickets online for only 1 leu for any train route in Moldova.
● FRIDAY, September 4
Sales of Internet access services exceed half a billion lei
The number of subscribers to fixed Internet access services and the revenues from these services continued to grow in the first half of 2015. The statistical data of the National Regulatory Agency for Electronic Communications and Information Technology show that the total sales of such services in the period rose by 14% or 63.4 million lei compared with the corresponding period last year, to over 517 million lei, while the number of subscribers increased by 1.8% or over 9,100 to more than 518,400. Of the 61 active fixed Internet access service providers, Sun Communications and Starnet Solutii reported the largest sales. The sales of the first company rose by 37.6% to 23.2 million lei, while of the second company – by 22.4% to over 119.6 million lei.
Administrator of air navigation services provider “MoldATSA” fired
Minister of Transport and Road Infrastructure Iurie Chirinciuc signed an order to dismiss the administrator of the autonomous state-owned enterprise “MoldATSA” (Moldavian Air Traffic Services Authority) Veaceslav Frunze. In a communique, the Ministry of Transport and Road Infrastructure says that among the reasons for the decision was the unfounded diminution by the director of bonuses intended for the enterprise’s inspectors at a time when these benefits for the administration were illegally kept. The minister noted that the task of the new manager will be to reorganize the administrative apparatus that turned out to be exaggeratedly large and inefficient.
Bread prices could have been increased as a result of cartel agreement
The Competition Council suspects a cartel agreement as a result of which some of the producers, including the largest bakery “Franzeluta”, increased the bread prices. On September 4, the Council met with representatives of the Association of Bakers and the National Association of Baking and Grinding Industries to discuss the issue. According to the head of the Competition Council Viorica Carare, the decision to increase the bread prices by 15% on average is ‘illegal and against the competition rules’. “There are signs that it was a cartel agreement. Moreover, we know companies that took part in the agreement, but which are not members of the two associations. According to our information, most of the economic entities didn’t increase the prices of bread. Those who did it didn’t furnish us with arguments in this regard,” she stated. If it’s proven that it was a cartel agreement, the economic entities that are parties to this agreement will be penalized. The fine can be 2% to 4% of the turnover for the previous year.
● SATURDAY, September 5
Association of Bakers: Each producer should individually set bread prices
The Association of Bakers issued a new communique that rectifies the previous one, of August 13. Thus, the Association no longer suggests increasing bread prices by 15%, saying each producer should decide individually whether to raise the prices or not. “The Association of Bakers of Moldova informs that the members of the Association do not support the rise of about 15% in the bread prices, as it was specified in the communique of August 13, and communicates that each bread producer will decide independently whether to increase the prices or not, depending on the own production costs,” reads the communique. The Association’s head Igor Cojuhari explained that such a decision was taken following the suspension of the higher electricity and gas tariffs. “Some of the producers increased the bread prices by 1-2%, while others by 5%. The prices of some types of bread were raised by even 20%. The prices of flour and wheat are decreasing now. Furthermore, if the previous electricity and gas tariffs are maintained, raising the bread prices won’t be necessary. Thus, each economic entity should individually set the bread prices, depending on the costs incurred for raw material,” he stated.
Over 2,000 applications for agricultural subsidies
The Agency for Intervention and Payments in Agriculture received 2,017 applications for agricultural subsidies to the value of 314.3 million lei. The Ministry of Agriculture and Food Industry said most of the applicants asked for subsidies for building greenhouses, planting fruit trees, purchasing agricultural machinery and constructing cold storage facilities. As many as 414 applications for subsidies of over 44.8 million lei were transmitted to the State Treasury, which will pay these subsidies. Over 90 applications for subsides of 57 million lei were transmitted to inspectorates, while almost 1,200 applications for subsidies of over 160 million lei are being examined. Another 300 applications for subsidies of almost 50 million lei are being verified and are to be introduced in the Agency’s electronic database. The Agency also received applications for emergency assistance from 862 agricultural companies for apples and from 317 companies for plums. The applicants asked for assistance of 181 million lei for apples and of 27 million lei for plums. The farmers who cultivated plums fully received compensations, while those who supplied apples for processing were compensated only partially because the budget was used up. At the end of 2014, there were 443 agricultural companies that hadn’t received the assistance of 72 million lei they asked.
Simplified border crossing regime for Authorized Economic Operators
A pilot-project to recognize the Authorized Economic Operators of the EU (AEO) is being implemented at the Leuseni customs post until the end of this year. Vasile Spac, senior inspector at the customs post, in a program on Radio Moldova station said the companies that possess AEO certificates benefit from a facilitated border crossing regime and go through a special lane, being exempted from a number of customs control forms. The project is implemented by the Customs Service of Moldova in cooperation with the National Customs Authority of Romania. The objective is to simplify the border crossing procedure for economic entities not only from Romania, but also from any other EU member state that use AEO certificates. “At the next stage, we will work to obtain the reciprocal recognition of the AEOs in Moldova and the EU. This objective is stipulated in the Association Agreement,” said Corneliu Croitoru, head of the Customs Service’s Customs Control Organization Division.
