● MONDAY, May 20

Moldova could become a more attractive tourist destination for Italians

Some of the aspects of the familiarization tour intended for a group of eight tourist operators from Italy, to whom Moldova’s tourist potential was presented, were discussed in a meeting with representatives of Moldovan travel agencies. The goal of the tour was to help the Moldovan business entities to establish new business partnerships so as to promote Moldova as a tourist destination for Italian tourists. Natalia Țurcanu, executive director of the National Inbound Tourism Association, said the operators from Italy established contact with local ones to prepare tour packages that would be included in the offers of Italian travel agencies. This way the idea that Moldova is ready to welcome tourists from Italy will be promoted on the Italian market. In the first half of 2018, Moldova welcomed 3,100 Italian tourists. After Moldova took part in exhibitions in Milan and Rimini with tourist stands, ten Italian travel agencies and tour operators started to sell tour packages for Moldova.

Chisinau-Odessa train tickets to rise in price starting Friday

First and second class tickets for the Chisinau-Odessa train will become more expensive beginning this Friday due to rising fuel prices and foreign currency fluctuations, Moldova Railways said in a press release. A first class trip will cost 195 lei, compared to the current 164 lei; and a second class trip will cost 180 lei, compared to 159 lei today. The third class fare remains unchanged at 151 lei. The train departs on Saturdays and Sundays from Chisinau at 7:05 a.m. and arrives in Odessa at 10:45 a.m., with the trip back starting at 6:45 p.m. and ending at 10:20 p.m. When the high season begins on June 1, the train will run daily.

Currency in circulation up 7.1% in April

In April compared to March, total currency in circulation (M0) rose by 1.496 billion lei, or 7.1% to 22.432 billion lei. This is by 21.4% more than in April 2018, the National Bank of Moldova said in a press release. Meanwhile, overall money supply was up by 1.364 billion lei, or 3.2% and amounted to 44.097 billion lei, which is an 14% increase on April 2018. Deposits in national currency rose by 0.677 billion lei to a total 36.679 billion, making up 57.3% of the total deposits. Calculated in lei, foreign currency deposits increased by 2.341 billion to 27.358 billion lei.

● Tuesday, May 21

Kiril Gaburici: EU became Moldova’s main commercial partner

Since the DCFTA started to be applied, the configuration of Moldova’s foreign trade changed, the European Union becoming the country’s main commercial partner with exports to the EU representing 70% and imports constituting 50%. The figures were presented by Minister of Economy and Infrastructure Kiril Gaburici in a meeting with EU Commissioner for Trade Cecilia Malmström in Kiev, which hosts the second informal DCFTA Ministerial Meeting during May 20-21. According to the minister, multiple opportunities for the economic and suitable development of Moldova were created thanks to the EU. “We will continue to work in this direction and to respect the commitments,” stated Kiril Gaburici. The second informal DCFTA Ministerial Meeting, held under the auspices of the EU Commissioner for Trade Cecilia Malmström, involves high-ranking officials of the Eastern Partnership countries Georgia, Ukraine and Moldova.

Central Securities Depository launched

The Central Securities Depositary (CSD) of Moldova started work on May 21 after being in an intense constitution process for two years. The new institution is responsible for the registration, bookkeeping and settlement of securities issued by legal entities of the Republic of Moldova. Attending the launch, National Bank of Moldova governor Octavian Armașu said it is essential for the new institution to become one of the most active and efficient players in developing the financial market, which would ensure the safe keeping of financial instruments and a high level of protection of operations. “The new institution represents advanced technological infrastructure that ensures the provision of settlement, register keeping and securities transfer services. In other words, the transfer of securities between participants, holders and issuers will take place electronically based on a common platform. This will increase the safety of transactions and will facilitate the flow of capital. This infrastructure will become a basis for facilitating the introduction of new financial instruments and for familiarizing investors with these,” stated the governor. The CSD’s business operation model is based on international standards and practices applicable in the field of settlement systems, whereas the national legislation governing the activity of the CSD transposes relevant EU regulations. By founding the Central Securities Depositary, Moldova aligns itself with the international standards, including the Principles for Financial Market Infrastructures and the EU Regulations on the Central Securities Depositories.

ODIMM presents results of 12 years of activity

The sector of small and medium-sized enterprises is the most important sector of Moldova’s economy. It is the sector that creates new opportunities and jobs, imports and implements new technology. It is most flexible to all the market changes, secretary of state at the Ministry of Economy and Infrastructure Iulia Costin stated in a news conference held to mark the 12th anniversary of the founding of the Organization for the Development of the Sector of Small and Medium-Sized Enterprises (ODIMM). ODIMM acting director general Petru Gurgurov said that during 12 years ODIMM implemented a number of programs that supported entrepreneurs. In the period they provided business consultancy to over 60,000 beneficiaries. Silvia Cărare manages an esthetic medicine company. She applied to the “PARE 1+1” program in 2018 and received a grant of 250,000 lei for purchasing equipment. The money was a good support for developing her business and she created 25 jobs. Finding skilled personnel suitable for the provided services is the hardest moment in the business process.

● WEDNESDAY, May 22

Insurance market 4% up in first quarter of 2019

The number of insurance contracts in force at the end of this March was by 4% higher than last yearend and by 15% higher compared with the corresponding period of 2018. According to economic expert Viorel Gîrbu, who was quoted by the portal Infodebit, the motor civil liability insurance contracts at the end of this March represented 77% of the total insurance contracts, forming thus the core of the insurance activity in Moldova. Even if the insurance sector in time witnessed upward trends in Moldova, its importance for the national economy is ten times smaller than in developed economies, stated the expert. The value of subscribed gross premiums rose from 914 million lei in 2010 to 1.5 billion lei in 2018. However, the given indicator as a share of the GDP continues to decline. In the developed states, the subscribed gross premiums represent about 8-9% of the GDP, while in Moldova they constituted only 0.8% of the GDP in 2018, as opposed to 1.06% in 2010.

● THURSDAY, May 23

Sellers anticipate fuel crisis if fuel prices are decreased

Oil retailers in Moldova urge to stop exerting pressure on the companies that import and sell oil products and to stop politicizing and spreading lies so as not to cause an eventual fuel crisis in Moldova. In a press release, a group of oil retailers say the 1 leu rise in fuel prices witnessed last weekend were determined by at least two objective factors – the recent increases in the prices of gasoline and diesel fuel on foreign markets and the quotes of the national currency. “The forcing of the gas stations to sell gasoline and diesel fuel at prices that cause losses to them will inevitably lead to the blocking of oil imports and, respectively, to a crisis that can affect all the country’s citizens who will no longer find fuel at gas stations,” warned the retailers. They noted that a tonne of gasoline this March cost US$ 608, while in the middle of May - US$682, an increase of 12.2%. The price of diesel fuel rose from US$ 605 per tonne in March to US$ 659 per tonne in May, up 8.9%. Also, the Moldovan leu depreciated by 4.95% against the US dollar in the period, from 17.0929 lei/dollar to 17.9392 lei/dollar. As a result, the retail prices of gasoline and diesel fuel rose by 5.9% and 5.1% respectively.

Composition of Consultative Council for SMEs to be extended

The institutional composition of the Consultative Council for Small and Medium-Sized Enterprises that was constituted in 2017 could be increased from 31 to 45 members, in accordance with a draft Government decision that was proposed for public debates. The Council, alongside representatives of miniseries, the Public Procurement Agency, the Investment Agency and the Association of Banks of Moldova, will include representatives of employer associations, nongovernmental entrepreneurial organizations and organizations specialized in economic analysis. Another proposal refers to the administration of the Consultative Council. It is suggested that this should include secretaries general of state of the Ministry of Economy and Infrastructure. The post of secretary of state, unlike that of minister, is not political and does not change together with the coming of another party to government. In Moldova, over 97% of the companies are SMEs. Each third-fourth employee works for a SME.

Probe into fuel price rise could last more than a month

The probe started by the Competition Council into the recent fuel price rise could take more than a month to complete. Contacted by IPN, Cristina Zara, deputy department head at the Council, said no other details could be offered as it could damage the investigation. A week ago, the Competition Council noted with concern that the increased fuel prices were posted simultaneously by a number of operators, voicing doubt that they acted independently from one another. An investigation was started to see if there were any secret agreements behind the price rise. Last week, a number of operators increased prices at the pump by around 1.1 leu for gasoline and 0.85 lei for diesel fuel. A Chisinau NGO and the political bloc ACUM staged protests in response.

Road from Orhei to be repaired with WB funds

Almost 9 km of a road that goes through Izbiște, Cruglic and Ohrincea villages of Orhei district will be rehabilitated. The contract to the value of over 63 million lei was signed by the State Road Administration and the Moldovan company S.C. Nouconst SRL on May 24. The necessary funds are provided by the World Bank. After the signing ceremony, secretary of state at the Ministry of Economy and Road Infrastructure Anatol Usatyi said the repaired road will benefit over 20,000 inhabitants, 24 education institutions, 12 medical institutions and more than 150 business entities. There are four tourist attractions along the road. For her part, World Bank Country Manager for Moldova Anna Akhalkatsi said this contract is very important for the Moldovan citizens. According to her, modern road infrastructure improves the quality of people’s lives. The works are to be completed in 18 months. The defects notification period will last for 12 months.

● FRIDAY, May 24

Money transfers this April up about 6% on last April

The amounts transferred from abroad to private individuals in Moldova through licensed banks this April came to US$104.63 million, an increase of 5.9% on last April. The largest transfers came from the European Union and the Commonwealth of Independent States, IPN reports, with reference to the National Bank of Moldova. Remittances from Russia added up to US$ 22.65 million, down 5.6 compared with April 2018, from Israel to US$ 19.82 million, from Italy to US$ 12.98 million, from the U.S. to US$ 8.54 million. Transfers in euros represented 54.1%, up 5.3%, in U.S. dollars –  41.2%, down 1.2%, in Russian rubles – 4.7%, a 4.1% decrease.

Road from Orhei to be repaired with WB funds

Almost 9 km of a road that goes through Izbiște, Cruglic and Ohrincea villages of Orhei district will be rehabilitated. The contract to the value of over 63 million lei was signed by the State Road Administration and the Moldovan company S.C. Nouconst SRL on May 24. The necessary funds are provided by the World Bank. After the signing ceremony, secretary of state at the Ministry of Economy and Road Infrastructure Anatol Usatyi said the repaired road will benefit over 20,000 inhabitants, 24 education institutions, 12 medical institutions and more than 150 business entities. There are four tourist attractions along the road. For her part, World Bank Country Manager for Moldova Anna Akhalkatsi said this contract is very important for the Moldovan citizens. According to her, modern road infrastructure improves the quality of people’s lives. The works are to be completed in 18 months. The defects notification period will last for 12 months.

● SATURDAY, May 25

Central bank in April bought currency totaling US$ 57.5m

The degree of covering the net demand of currency from business entities by the net supply of currency from private individuals this April represented 124.4%, as opposed to 120.3% this March. According to the National Bank of Moldova, the net supply of currency from private individuals in April rose by US$ 70.1 million (+50.6%), while the net demand of currency from business entities – by US$ 52.5 million (+45.6%). In such conditions, the central bank intervened and bought currency totaling US$ 57.5 million. The European common currency continued to prevail in the structure of the net supply of currency from private individuals, with 73.1%. The Moldovan lei in April deprecated by 2.9% on average against the U.S. dollar to 17.6777 USD/MDL, as against 17.1859 USD/MDL in March.