● MONDAY, September 8
Walnut trees not very fruitful in southern Moldova
The walnut harvest in the southern districts is low this year. Chairman of the Association of Walnut Exporters of Moldova Dumitru Vicol has told that it’s not known why the walnut trees bloomed poorly in spring there. However, the crop on the rest of the country is average. On the whole, this year’s harvest will not be much lower than last year’s. Moldova exports annually 10,000 – 12,000 tonnes of walnut kernel. This is almost the entire produced quantity. The kernel is sold to the Arab countries, the EU and the CIS. Only 1% of the walnut kernel production remains in the country.
Sales of pay television services go up
The incomes earned from the sale of pay television services in the first half of this year increased against a slight decrease in the number of subscribers to pay television. Over half a year, the sales of such services rose by 3.1 million lei (+3.8%) to about 85.4 million lei, while the number of subscribers fell by 0.2% to 286,000. According to the situation on August 1 this year, 49.6% of the 286,000 subscribers to pay television used cable TV networks, 43.3% - IP TV networks, 5.3% - satellite networks, while 1.7% - MMDS networks.
Moldovan businessmen helped to establish partnerships in Ukraine and Romania
Moldovan businessmen are learning how to establish partnership relations with businesspeople from Romania and Ukraine at the Crossborder Forum of Entrepreneurs held in Chisinau on September 8. The event is staged by the Business Consulting Institute within the project “Competitiveness enhancement through human synergy in the border region”. Project coordinator Ana Mardare said the forum involves over 100 entrepreneurs from Moldova, Ukraine and Romania. It focuses on competition enhancement and establishment of partnerships between entrepreneurs from the border region. A similar meeting will take place in Iasi in October. In the Chisinau forum, there were presented the results of studies of the investment opportunities in agriculture and the food industry, transport, tourism and consultancy services. An investors’ guide was worked out based on them. Within the project, there will be held training sessions for entrepreneurs centering on competition enhancement, establishment of partnerships and starting of businesses in the border region.
Government must create fund for co-financing crossborder projects, MP
The Government of Moldova must set up a fund for co-financing crossborder projects, considers MP George Mocanu. The lawmaker has told that though the number of implemented projects and attracted investments increases in Moldova, the co-financing on the part of beneficiaries remains a problem. “Now the co-financing level is 10%, but, if a larger sum is attracted, for example of €3 million, it’s problematic for the beneficiaries to contribute €300,000,” said the official. The MP Monday took part in the Crossborder Forum of Entrepreneurs staged by the Business Consulting Institute in Chisinau. George Mocanu said that things moved on during the last several years and, owing to the support provided by the European Commission by different projects, such as “Competitiveness enhancement through human synergy in the border region”, a number of crossborder projects have been launched in Moldova recently.
● TUESDAY, September 9
Banca de Economii intends to purchase registered capital of Unibank
The National Bank of Moldova (NBM) is examining the application of Banca de Economii SA to purchase 100% of the registered capital of BC Unibank SA. In a communiqué, the NBM says the transaction does not imply the merger of the two banks. If a bank buys 100% of the capital of another bank after obtaining the consent of the central bank, both of the banks continue to work as separate entities, have their own administration and have the individual obligation to obey the legislation of the Republic of Moldova and the normative documents of the NBM.
Crossborder cooperation opportunities for entrepreneurs
Businessmen from Moldova, Romania and Ukraine can design cooperation projects in such areas as agriculture, tourism, transport and consultancy. Moreover, by joining forces, the Moldovan and Ukrainian entrepreneurs can penetrate the EU market and can offer the products and services that the European consumers need. In order to identify new projects and partners, Business Consulting Institute staged a Crossborder Forum of Entrepreneurs in Chisinau. Vitalii Galaciuc, the representative of the Ukrainian Association for Economic Development of Kolomyia, said he came to the forum accompanied by entrepreneurs from Ukraine to present their products that can hold interest for Moldovan businessmen and to establish new cooperation relations.
Government will avoid banking system when distributing Polish loan for agriculture
The Government decided to go around the banking system when they will distribute the €100 million loan provided by the Government of Poland for developing the agricultural and animal-breeding sectors of Moldova, Prime Minister Iurie Leanca announced in the program “Politics” on TV 7 channel. The money will be distributed by the Agency for Payments and Intervention in Agriculture and the Bureau for Implementation of the Grant provided by the Government of Japan. “This loan should have been distributed through the banking system. But, taking into account the fact that the bank will charge commissions, we decided to do it through the agency of these bodies. Thus, this money will be cheaper and the recipients will pay interest of about 1% a year,” said the Head of Government.
Problems related to financing of key areas can appear at yearend, ex-minister
Problems related to the financing of important areas can appear at the end of this year, former minister of finance Mihai Manoli said in an interview for Radio Free Europe. According to him, it’s good that Moldova chose to path to the EU, but it will have to deal with the consequences. Asked to comment on the statements of ex-minister of finance Veaceslav Negruta, who asserted that a hole of about 8.4 billion lei is being formed in the state budget, Manoli said he didn’t do calculations, but would give justice to Negruta. “I go sometimes to the Central Market, which is full of excellent grapes, fruit and vegetables, and become worried as I realize that the price at which these products are sold will prevent many of the producers from working next year,” he stated.
Train of Romanian Railway Group tests European gauge railway in Giurgiulesti
A train belonging to the Romanian Railway Group (GFR) was the first freight train that went through the Galati – Giurgiulesti border crossing point three days after the European gauge railway in southern Moldova was opened to traffic. According to a communiqué of the Grampet Group, the train consisting of 16 freight cars and a tank reached the destination - the oil terminal in Giurgiulesti port - last weekend. The new railway connection between Moldova and the European community allows performing import-export operations by all types of transport.
● WEDNESDAY, September 10
Minister assures irregularities in distributing agricultural subsidies will be removed
Minister of Agriculture and Food Industry Vasile Bumacov admitted that irregularities exist in the process of subsidizing the agricultural producers, but assured that he will take all the necessary measures to remove them. He made such assurances in the program “Politics” on TV 7 channel. Among the invitees of the program were representatives of organizations of agricultural producers, who harshly criticized the work of the Ministry of Agriculture and, especially, of the Agency for Payments and Intervention in Agriculture, accusing them of corruption. Fruit grower Aliona Mandatii, who is a member of the administration board of the association “Moldova-Fruct”, said the Agency intentionally delays providing subsidies to agricultural producers and asks for bribe in the amount of 20% of the requested sum.
Moldova’s wine exports to EU have increased
Although Moldova in the first eight months of this year exported by 6 million liters of wine fewer than in the corresponding period last year, the exports to the EU member states rose by almost 5 million liters after the EU abrogated the import quotas on Moldovan wine. According to a note issued by the Customs Service following an inquiry, almost 12 million liters of the total 57 millions liters exported so far this year were sold to the EU. In the first eight months of last year, Moldova exported over 62 million liters of wine, more than 7 million liters of which to the EU. Poland is the largest European importer of Moldovan wine. It imported over 3.2 million liters this year so far. The Czech Republic imported more than 3.1 million liters.
Moldova to receive third tranche of European money for energy sector reform
The European Commission will disburse the third tranche of €11.6 million of the money provided by the European Union to Moldova within the Support for the Reform of the Energy Sector Program by this yearend, Deputy Prime Minister and Minister of Economy Andrian Candu and EU Ambassador Pirkka Tapiola announced in a news conference. The cost of the program is over €42 million. Andrian Candu said that Moldova fulfilled 80% of the commitments made in the energy sector and thus received the largest part of the money within the support program. The rest of the commitments are being carried out. They are related mainly to the adoption of the Law on Renewable Sources of Energy and the formulation of normative documents for implementing the legislation in the field.
Authorities aim to bring Romanian gas to Chisinau by end of 2015
The feasibility study to extend the Iasi-Ungheni gas pipeline up to Chisinau will be ready by the start of the next year at the latest, while the constriction works will be completed by the end of 2015. Deputy Prime Minister and Minister of Economy Andrian Candu told a news conference that this is the goal set by the authorities. The EU provided €10 million for building the gas pipeline up to Chisinau, while the project costs €60-70 million. The minister said that in the discussions with representatives of Russia’s Gazprom, he realized that they understand the necessity of building an alternative gas pipeline. The company assumed commitments before the Moldovan consumers and, if particular circumstances prevent the supply of Russian gas to Moldova, Gazprom would be interested in cooperating with Romania, which could satisfy the energy necessities of Moldova.
Government approves regulations on administration of tariff quotas
The executive endorsed the regulations concerning the administration of tariff quotas on the import and export of goods into and out of Moldova following the coming into force of the Deep and Comprehensive Free Trade Agreement with the EU on September 1 this year on a temporary basis. The tariff quotas will be administered by the Customs Service based on the principle “first come, first served”. The sugar will be exported only after the producers obtain an authorization from the Licensing Chamber. The measure is aimed at ensuring the equitable distribution of the sugar quota among the local producers. An authorization will be also required for importing products used in the meat processing industry. It will allow sausage producers to import up to 5% of the quota per consignment. The authorization will be issued free of charge.
● THURSDAY, September 11
Sales in electronic communications sector go up
Sales in the electronic communications sector in April – June this year rose by 14.8% compared with the corresponding period last year, to 1.742 billion lei, shows a report by the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) that was published on September 10. Increases were reported on all the market segments, except for the landline telephone services where sales fell by 9.5% to 248.5 million lei. Sales of mobile phone services rose by 1.2% to 897.6 million lei, which is the largest volume among all the electronic communications services.
Turkey is third investor in Moldova by number of companies in which it invested
Turkey is one of the main investors in Moldova. It ranks tenth by the volume of investments in the registered capital, with US$20.5 million (11% of the total registered capital invested from abroad), and third by the number of companies in which it invested. In Moldova there are 977 companies with Turkish capital, according to the Economic and International Cooperation Division of the Ministry of Economy. Turkey is the key investor in southern Moldova, where it accounts for 44% of the investments made in this region. Turkey is also one of the major commercial partners of Moldova, after the CIS and the EU. In January – June, trade between the two countries was US$211.5 million. Exports in the period came to US$63.4 million, a decrease of 26.9% compared with the corresponding period last year. Imports fell by 21.7% to US$148.1 million.
Finance minister denies assertions of his predecessor
The consolidated and state budget in the first eight months of this year was 98.5% fulfilled in terms of incomes and there is no gap in the budget, said Minister of Finance Anatol Arapu, commenting on the assertions of his predecessor Veaceslav Negruta. “The problem is that the costs are not covered on time, according to plan, especially as regards the spending for investment projects, both those financed with budget money and those financed with foreign funds. The tender contests to purchase materials and works are held with delay. The utilization of the available financial resources remains a topical issue,” stated the minister.
Amendments to Law on Financial Institutions
A series of amendments to the Law on Financial Institutions were formulated based on the recommendations made by the International Monetary Fund and the World Bank after this year’s appraisal of the baking and nonbanking systems of Moldova. The bill with amendments was approved by the Government. National Bank governor Dorin Dragutanu said the goal of these changes is to specify notions from the law regulating the activity of the national financial institutions, especially concerning capital, and to strengthen the central bank’s capacities to supervise the baking sector.
Central bank to take decision on purchase of Unibank within 60 days
The National Bank of Moldova (NBM) will have to pronounce on the transaction to acquire Unibank by Banca de Economii (BEM) within 60 days of the presentation of the whole package of required documents. NBM governor Dorin Dragutanu confirmed that a relevant application was received and the central bank is now in correspondence with Banca de Economii. Minister of Finance Anatol Arapu said the proposal to merge Banca de Economii and Unibank was submitted by a member of the Administration Board of the BEM. The Board asked this member to present an economic analysis of the impact of this transaction on Banca de Economii and its shareholders, including the state, which holds 33.3% of the shares of this bank. The state can block this transaction as it has a blocking shareholding.
Moldova and Turkey will trade freely
Moldova and Turkey have signed a Free Trade Agreement that enables to exchange goods without paying customs duties. In the signing ceremony in Chisinau, Minister of Economy Andrian Candu and his Turkish counterpart Nihat Zeybekci said that even if Turkey protects its market very cautiously, it made many exceptions in relation to Moldova. When the accord takes effect, after it is ratified by both of the sides, all the import duties and any tax with equivalent effect put on industrial goods will be annulled, except for a series of Turkish goods such as shoes, furniture and plastic items for which Moldova asked for a transition period of three to seven years. Andrian Candu said that Moldova negotiated transition periods for sensitive products, allowing thus the national economic entities to increase their competitiveness.
● FRIDAY, September 12
IFC extends financing to integrated agro-industrial group Trans-Oil
The International Finance Corporation (IFC), a member of the World Bank Group, has extended financing to Trans-Oil to promote its agricultural export activities in Moldova and help raise the incomes of local farmers. The $155 million short-term pre-export finance facility, arranged by Societe Generale Corporate & Investment Banking and partly financed by IFC, will help Trans-Oil, a leading integrated agro-industrial group in Moldova, meet increased trade finance needs during the harvest season, given its strong growth in recent years. IFC is committing up to $30 million, working with Societe Generale CIB and a syndicate of other banks and alternative investors.
Transport Ministry presents project to build ring road bypassing Chisinau
The municipality of Chisinau will have a beltline by 2017. The project to build the ring road bypassing Chisinau was presented by Minister of Transport and Road Infrastructure Vasile Botnari in a news conference on September 12. The ring road will join six road sections. The first three will be given priority. The first segment of 6.6 km - M1-Ialoveni – will cost €10.1 million. It will be constructed in 2015-2016. The second segment is also part of the national road M1 and is 8 km long. This segment will be built at a cost of €17 million. A section of 9km of the M 21-Dubasari road will be renovated for the third segment, at a cost of €25.7 million. The works on the second and third segments will be performed in 2016-2017.
Moldova has adopted over 7,000 European standards so far
When filing an application for joining the EU, a country must be implementing at least 80% of the adopted European standards, while for the rest 20% it must present an implementation schedule. Moldova so far adopted over 7,000 European standards in different areas of the existing about 15,000. The data were presented in the launch of a study made by the Independent Analytical Center “Expert- Grup”. Study author Denis Cenusa said the adoption of the European standards is a key precondition for enjoying the benefits of the Association Agreement with the EU. The commitments in the area of standardization assumed within this accord include the progressive implementation of the European standards. As a result, Moldova will have to get rid of the conflicting standards.
