● MONDAY, September 12
Ministry of Finance does not support idea of provision of tax concessions for farmers
The Ministry of Finance does not support the idea of providing tax concessions for the farmers affected by this year’s severe drought. Minister Dumitru Budianschi said the offering of tax concessions to framers is not a solution as the state budget does not have other revenues than the collected taxes. The executive’s policy is to support business entities by programs aimed at ensuring the development of businesses, not by tax concessions that endanger the sustainability of the budget.
Air Moldova halts sale of tickets to and from Moscow
Air Moldova airline informed that it stopped the sale of tickets to and from Moscow. The passengers who bought tickets for the October 1 flights need to send an email to the address booking@airmoldova.md to receive a refund. Several days ago, Air Moldova announced that it decided to resume the flights to Moscow, which were suspended in February, on October 1. In reaction, the Civil Aviation Authority banned the operating of flights through Russian airspace by national operators. The institution made reference to the Significant Safety Concern Directive SSC/AIR-01/05-2022/RUS issued by the International Civil Aviation Organization and to the decision to suspend all the certificates and permits issued to Russian airlines taken by the European Aviation Safety Agency.
National Plum Festival to be staged at end-September
The National Plum Festival is likely to be held each year on the third Sunday in September. The authors of a relevant bill, a group of PAS MPs, said the initiative is aimed at promoting the Republic of Moldova as a state with high potential for cultivating and processing plums. Data show that plum growing is one of the oldest in Moldova. Plums come second after apples by the volume of production and by the areas occupied by orchards and ranks first by these indicators among stone fruits.
Wine in PET bottles to be certified only by lots
The National Food Safety Agency has announced the suspension of compliance certificates issued on September 5 for wine in PET bottles that were certified by series. This way, the wine products in PET packing will be certified only by batches.
● Tuesday, September 13
Maia Sandu: Government makes attempts to review gas price calculation formula
President Maia Sandu said uncertainty in the energy sector persists as there is no response from Gazprom as to the situation concerning natural gas supplies after October 1. The Russian gas company can halt the supplies of gas to Moldova after October 1 for the reason that the audit to determine the debts of Moldovagaz wasn’t completed. In reality, such a decision by Gazprom would derive from the expected change in the calculation formula that will generate a lower purchase price.
Termoelectrica has crude oil reserves for a month and a half, counselor
If the supply of natural gas to Moldova is stopped, SA “Termoelectrica”, which supplies the municipality of Chisinau with heat, can switch over to an alternative source for producing electrical energy and heat - crude oil. The current stores of crude oil are enough for a month and a half, Tudor Gîrbu, counselor on public amenities in the mayor general’s office, stated in the ordinary meeting of officials of municipal services.
EU offers €15m grant to Moldova to improve energy efficiency
The European Union provides the Republic of Moldova with a €15 million grant for improving the energy efficiency of a number of national medical institutions. The grant agreement was signed between the Ministry of Infrastructure and Regional Development and the European Investment Bank on Tuesday. According to the authorities, when the money is disbursed, the public buildings that will be chosen within the project will have their thermal insulation improved and will benefit from modern lighting systems and efficient heating and cooling systems with lower consumption.
NBM: Interest rates on loans and deposits remained unchanged
The Executive Board of the National Bank of Moldova (NBM) on September 13 decided to maintain unchanged the values of the main monetary regulation instruments. This way, the base rate applied to the main short-term monetary policy operations was maintained at the level of 21.5 percent annually. The interest rates on overnight loans and deposits remained unchanged at 23.5 percent and 19.5 percent, respectively.
Peak inflation will be witnessed at end of third quarter or start of fourth quarter, governor
The annual rate of inflation continued its upward trend and reached 34.3% at the end of August, up 0.8 percentage points on July, being slightly lower than the last projected level. If there are no serious shocks, peak inflation will be witnessed at the end of the third quarter or the start of the fourth quarter. Afterward, the inflation will follow a downward trend. In a news conference, the governor of the National Bank of Moldova Octavian Armașu said the acceleration of prices on the domestic market has been due to the rise in food and energy prices at international and regional levels.
Moldovan leu has depreciated by about 9% against U.S. dollar so far this year
The Moldovan leu is relatively stable against the main foreign currencies, but has depreciated by about 9% against the U.S. dollar so far this year. It has also slightly appreciated against the euro given that the euro depreciated against the U.S. dollar on international stock exchanges, the governor of the National Bank of Moldova Octavian Armașu stated in a news conference. He assured that there are sufficient reserves for interventions.
● Wednesday, September 14
Vladimir Bolea: All farmers’ demands were satisfied
The authorities already satisfied the demands formulated by farmers, but the farmers have the right to protest, said Minister of Agriculture Vladimir Bolea. According to him, the authorities help the farmers affected by this year’s severe drought by allowing them to pay the required taxes by November 25. A relevant derogation from the law is to be approved by the Commission for Exceptional Situations (CES). The famers will also not be penalized by the Tax Inspectorate or banks if they delay the payments but it goes only to the debts accumulated due to this year’s drought, not yet to historical debts.
Digitalized and automated export through international parcel post
The Customs Service and Moldova’s Post Office have launched the digitalized and automated export through international parcel post. The digitization will benefit the Government of the Republic of Moldova, which will earn more from electronic trade, and also the buyers who will use swift and accessible postal services. The digitalization and automation of exports through international parcel post were ensured with financial support from the EBRD and USAID.
● Thursday, September 15
Agricultural producers can pay land tax by November 25
Agricultural producers registered as legal entities and private individuals registered as entrepreneurs will be able to pay the land tax by November 25. The Commission for Exceptional Situations decided to extend the time limit for a period of two months.
Moldova is a reliable investment destination, Moldova Business Week 2020
Moldova Business Week 2022 - the event that promotes the Republic of Moldova as an investment destination – was launched in Chisinau. The Moldovan authorities assure the potential investors that Moldova offers tax concessions and labor force to them. A training center will be soon opened in Chisinau to train as many specialists as possible. In the opening of the event, Prime Minister Natalia Gavrilița said that despite the regional challenges, the Republic of Moldova remains a favorable destination for foreign investors. “I’m glad that we built and continue to build reliable bridges with the business community. During the past two years alone, we managed to attract a number of investment projects from such countries as Belgium, the Netherlands, Turkey, the U.S., Germany, Lithuania, and the UK. Such areas as information and communication technology, outsourcing, research and development, production of electronic equipment and renewable energy become very attractive to investors,” stated the official.
Octavian Armașu: Recent shocks proved we have a strong and resilient banking system
The banking system of the Republic of Moldova remains stable and is an element of internal stability, said the Governor of the National Bank of Moldova (NBM) Octavian Armașu. In the launch of Moldova Business Week 2022, he said that since the war in Ukraine started, the national banking system has coped with the demand of liquidity, which shows that the system is strong and resilient.
● Friday, September 16
Moldovans borrowed over 13bn lei from nonbank organizations
The Moldovans in the first half of this year borrowed 13.7 billion lei from nonbank lending organizations and savings and loan associations, up slightly over 20% compared with the first quarter of 2021. According to the National Commission for Financial Markets, the total value of the assets owned by the nonbank lending sector was by 2.4 billion lei higher than in the second quarter of 2021 and was 14.8 billion lei on June 30, 2022. On the same date, the own capital of nonbank lending organizations came to over 4.6 billion lei, rising by 12.5% during a year, while the own capital of savings and loan associations totaled over 415.4 million, up 8% on June 30, 2021.
Fuel prices for weekend
A liter of diesel fuel the next three days will cost 26.90 lei, by 0.20 lei less. A liter of gasoline COR 95 will be sold for 24.14 lei, by 0.02 lei more.
● Saturday, September 17
Natalia Gavrilița: Transnistrian region will have to pay in advance for gas
If Gazprom fully stops the natural gas supplies to the Republic of Moldova, the Transnistrian region will have to pay in advance for the bought gas, said Prime Minister Natalia Gavrilița. According to her, the Transnistrian region, as the right bank of the Nistru River, will be supplied with natural gas purchased from the international market. In accordance with the market rules, the gas needs to be paid in advance. Premier Gavrilița said the uncertainty over energy aspects persists as Gazprom does not say it trenchantly if it will supply or not natural gas to the Republic of Moldova after October 1. From October 1, the Republic of Moldova is to pay a smaller gas price, but there is a risk that Gazprom will fully halt the supplies by invoking the absence of an end result in the audit to determine the debts of Moldovagaz.
