● MONDAY, November 12
World Bank: Amendments to law on voluntary declaration and fiscal stimulation are a step forward
The World Bank considers the recently adopted amendments to the law on voluntary declaration and fiscal stimulation are a step forward. It called on the authorities to make sure these amendments take effect without delay. According to the same comment, the World Bank will cooperate with the Moldovan authorities in assessing the impact of the law on voluntary declaration and fiscal stimulation, focusing on implementation, both before and after the adoption of these amendments. It will also monitor the adequacy of controls for managing fiscal risks and related governance risks. Parliament on November 8 amended the law on voluntary declaration and fiscal stimulation.
Large projects financed with foreign funds projected in 2019 state budget
The implementation of a number of important projects to modernize the Republic of Moldova that are financed with foreign funds were planned in the 2019 state budget law. Thus, 1.64 billion lei provided by the European Bank for Reconstruction and Development and the European Investment Bank will go to support the Moldova Road Sector Program. The World Bank will finance the Moldova Local Roads Improvement Project with 150 million lei. The World Bank will continue to support the Moldova Education Reform Project (152.1m lei) and the Agriculture Competitiveness Project (133.5m lei). A sum of 148 million lei was earmarked for building the penitentiary in Chisinau, with financing from the Council of Europe Development Bank. The project “Moldova’s Orchard” that is supported by the European Investment Bank with 73.7 million lei in 2019 will continue. Costs of over 3.4 billion lei were projected in the 2019 draft state budget law for implementing projects financed with foreign funds.
State debt at end of 2019 projected at 62.8bn lei
The balance of the state debt on December 31, 2019 was calculated at 62.8 billion lei, an increase of 5.9bn lei compared with the value projected for this year-end, IPN reports, quoting the 2019 state budget law that was approved by the Cabinet. The internal state debt was estimated at 25.79bn lei, while the external state debt at 36.97 billion lei, which is equal to US$ 2.105,5bn. At the end of 2019, the state debt will represent at most 30% of the GDP and will be by at most 0.3 percentage points higher than the value projected for this year. As to the state debt, the balance of the external state guarantees at the end of next year will be equal to zero lei, while the balance of the internal state guarantees will not exceed 1 billion lei.
First entrepreneurs authorized to receive payments in advance
Seven young people and 20 women running agricultural businesses received certificates that enable them to get subsidies in advance in a ceremony on November 12. Minister of Agriculture, Regional Development and Environment Nicolae Ciubuc reminded that 38 applications for subsidies were submitted during the first call of the program that ended on September 10. Of these, 27 were accepted. 60% of the applicants intend to set up multiannual plantations, while the rest to grow vegetates on protected areas, to breed animals or to develop post-harvest infrastructure. Acting director of the Agency for Intervention and Payments in Agriculture Vadim Curmei said the 27 entrepreneurs requested subsidies totaling 13 million lei. Within 60 days, the beneficiaries are to present the proof of co-financing of 35% of the investment and to open an account for subsidies. During the past two years, the National Agriculture and Rural Development Fund rose from 700 to 900 million lei. Since the start of 2018, investments totaling over 6 million lei were attracted to the agricultural sector, as opposed to 4.5 billion lei in 2017.
● TUESDAY, November 13
Octavian Calmîc: Up to 85% of Moldova’s exports can go to EU
Moldova’s potential to export to the EU is of 85% of all its exports, said economic adviser to the Prime Minister Octavian Calmîc. According to him, trade between the EU and Moldova could have been larger than now if the commercial advantages provided by the Deep and Comprehensive Free Trade Agreement (DCFTA) had been fully used, in particular the possibility of trading in products of animal origin that are not exported to the EU now, except for bee honey and caviar. “This year we have the largest foreign trade with the EU, on exports - about 70% and on imports - about 50%. But we have growth potential according to the study conducted while the Agreement was being negotiated. The practice of the Baltic states also shows that the potential can be developed to at least 85%,” Octavian Calmîc stated in the program “Emphasis on today” on TVR Moldova channel. The Deep and Comprehensive Free Trade Agreement forms part of the Association Agreement that was signed by Moldova and the European Union on June 27, 2014.
Rent for public property to go up in 2019
The minimum annual rent for using public property in 2019 will be calculated taking into account the basic tariff, location coefficient, branch coefficient and market coefficient that will be all multiplied by the rented area. The formula was specified in the 2019 draft state budget. The basic tariff for a square meter of rented space in the municipality of Chisinau will be 353 lei, as opposed to 336.5 lei in 2018, while in the municipality of Balti 250.3 lei, in contrast to 238.6 lei. In the other municipalities and towns, the tariff will be 182 lei, as against 173.5 lei, in towns and localities that form part of municipalities 136.6 lei, compared with 130.2 lei, while in villages 45.6 lei, in contrast to 43.5 lei this year. The state budget-funded authorities/institutions and creation units will not pay rental for space rented from other state budget-funded authorities/institutions and state-owned enterprises whose founder is a hierarchically superior authority, but will not be able to sublease.
Four years after banking fraud, we have more questions than answers, “Expert-Grup”
Four years passed since the state decided to guarantee the emergency loans provided by the National Bank of Moldova to insolvent banks and more questions appeared yet as to the phenomenon known as “the theft of the US$ 1 billion”. Even if the unfavorable regional economic conjuncture was invoked, the crisis of 2014 was the result of a huge theft of money from three banks, says a report by the Independent Think Tank “Expert-Grup”. According to experts of the Think Tank, the lack of coordination between the state institutions, defective combating of money laundering and political disputes existing at that moment were the elements that led to the robbing of the three banks and the stealing of over 13 billion lei. Later the government made the 30% decline in the purchasing power of the leu and the liquidation of the three banks, one of which was state-owned, the people’s burden. Economist and co-author of the report Eugen Giletski said the direct damage sustained by the state budget after the emergency loans were provided was assessed at 13.3 billion lei in bonds. Since the guarantee was converted into a public debt, 1.4 billion lei was paid. The efforts made to settle the debt that derives from the banking fraud before time are insufficient. This would diminish the pressure faced by taxpayers. There is no clarity as to the revenues earned from the sale of the shares that were blocked and later annulled by the central bank.
Pavel Filip: Presence of Fujikura in Moldova motivates other companies to come
The presence in the Republic of Moldova of such an investor as Fujikura Automotive Europe motivates other companies to come to the country, Prime Minister Pavel Filip stated in a meeting with the president of Fujikura Automotive Europe Santiago Rodriguez. Pavel Filip noted the investments made by Fujikura Automotive Europe in Moldova generated new jobs. The authorities remain focused on the creation of an attractive business environment. “We will continue to be near investors. This way we can ensure a better life for our citizens,” stated the Premier. For his part, the president of Fujikura Automotive Europe Santiago Rodriguez said the Republic of Moldova offers many concessions for developing businesses and the company intends to move its productions from other countries to the Republic of Moldova. In the meeting, the interlocutors discussed the necessity of improving infrastructure in the Comrat subzone of the Free Enterprise Zone Valkaneș, where Fujikura is erecting a new factory with about 700 jobs and plans to extend the number of employees by another 300. Currently, the company has a factory in Chisinau that employs 1,200 persons and another one in Comrat with 1,000 employees.
● WEDNESDAY, November 14
Moldova could export seeds to EU from December
As of this December, the seed growers of Moldova could export seeds of hybrids homologated in the EU member states, director general of the National Agency for Food Safety Gheorghe Gaberi was quoted by IPN as saying in a news conference.Gheorghe Gaberi said the given decision was taken as a result of a comprehensive audit conducted at the start of summer. As a result of this, the national seed certification system was recognized as equivalent to the control and certification system of the European Union. The agricultural sector annually needs 120,000-125,000 tonnes of grain, beet, vegetable and other kinds of seeds.
Plaster granulation equipment becomes functional at enterprise in Peresecina
A piece of equipment for granulating plaster into waste was put into operation at a waste sorting and recycling plant in Peresecina village of Orhei district on November 14. The enterprise’s monthly waste sorting and recycling capacity is of about 12,000 tonnes, while the capacity to process plaster is of approximately 180 tonnes. Statistics show about 1 million tonnes of waste are annually produced in Moldova. More than half of these can be recycled.
New agreement on reciprocal promotion and protection of investments with Italy
The Cabinet approved the opening of negotiations on a new draft agreement on the reciprocal promotion and protection of investments between the Government of Moldova and the Government of Italy. The draft agreement was remitted to the Italian side given that the old agreement signed in the summer of 1997 expired. The new agreement defines the main principles designed to strengthen the investment relations, to extend them and to intensify the dialogue between the two states. The agreement will take effect when the last written notification comes by diplomatic channels. This will be valid for a period of ten years and will be extended for another five years if the sides do not have objections. In Moldova, there are about 1,400 enterprises with Italian capital that operate in the light and food industries, building and other sectors.
Moldovagaz to supply consumers served by Cantgaz with gas
The license of SRL Cantgaz was suspended for a period of three months by a decision taken by the Administration Board of the National Agency for Energy Regulation. The national gas supplier Moldovagaz was obliged to supply the consumers served by Cantgaz with natural gas for a period of four months by a decision adopted by the Agency on September 29 this year. In a press release, Moldovagaz said it started to supply natural gas to the consumers served by Cantgaz. Under the decision taken by the Agency, the license of Cantgaz was suspended based on the national gas supplier’s request to disconnect Cantgaz from the gas network following the non-fulfillment of the contractual obligations. At the same time, the administration of Cantemir district informed the Agency that the supply of natural gas in the region was interrupted because Cantgaz is unable to provide services.
Certificates issued for agrifood products will be recognized in EU
The certificates issued for agrifood products will be recognized on the EU market and the organic products will be easier exported to the EU. The Cabinet approved a relevant draft law on organic agrifood products and labeling of organic products. The document envisions the recognition of the Moldovan certification authorities at international level. The international certification organisms accredited in the EU will no longer be obliged to obtain reaccreditation in Moldova. This will enable the producers to get subsidies even if they certify their products with international authorities. Until now, only the producers whose products were certified by the national authorities benefitted from subsidies. In Moldova, there are 136 companies specialized in the cultivation of organic products. About 52,000 tonnes of organic products were exported from Moldova to the EU member states last year.
● THURSDAY, November 15
Moldova, Romania could abolish roaming charges
Moldova and Romania initiated negotiations on the signing of an intergovernmental agreement providing that the citizens of the two states will speak on the phone without paying roaming charges. When the agreement takes effect, the citizens of the two states who occasionally travel to the neighboring state will have access to roaming call and SMS services at domestic tariffs, while the Internet connection tariff will be gradually reduced until 2022, according to the procedures agreed at European level.
Foreigners could not buy farmland and wooded land
The farmland and wooded land could be bought and sold only by the citizens of the Republic of Moldova. The foreigners, if they inherit land, will be obliged to sell this within a year. The provisions were included in the new Land Code approved by the Cabinet. The land ownership right will be inserted in the Register of Real Estate. The new Land Code includes a new classification of land by purpose. Thus, there will be farmland, lands of a special purpose, wooded land, water land, land for construction, nature reserves and land of a historical-cultural value. The control over the use and protection of public and private land will be undertaken by the local public authorities. To solve the problem of uncultivated or abandoned land, the new Land Code enables to transfer such land to the local public authorities for a period of at least five years. If a piece of land is not cultivated for over two years, the mayor’s office will open a special account to which it will transfer 70% of the rent to the owner, while 30% will remain for administrative costs.
Small automotive companies encouraged to work together with large ones
The existence in Moldova of 15 companies of the automotive industry with 15,000 employees, exports of €400 million and competitive salaries is a result that is wanted both by the authorities and by these companies as a sector of the economy, Prime Minister Pavel Filip stated in the opening of the international conference “Moldova Automotive Days 2018” that is held in Chisinau during November 15-16. “The automotive industry helps us achieve what we aim to: higher salaries, more jobs, welfare and a solid economy,” stated the Premier. Pavel Filip noted that concessions have been provided to the business entities working in the sector during the past three years, such as reduction in the number of permissive documents from over 400 to 150, reduction in the number of institutions with inspection duties from 60 to 13, facilitation of the procedure for obtaining work permits for foreigners and launch of the one-stop shop. Automotive Cluster Days are a platform for establishing mutually advantageous ties between multinational auto parts companies and potential national and international suppliers working in the automotive industry. The event brought together over 200 local suppliers of the automotive industry that work as part of the Balti Free Economic Zone and representatives of international companies operating in the field.
Moldovan-Romanian commission of economic cooperation reaches agreements
A number of social and economic projects of strategic importance were discussed in the eleventh meeting of the intergovernmental Moldovan-Romanian commission for economic cooperation. The building of a European gauge railway from Ungheni to Chisinau, implementation of roaming at domestic charges between Moldova and Romania and the project to build a road bridge on the Prut River near Ungheni are the key projects that are to be implemented by the two states. Minister of Economy and Infrastructure Kiril Gaburici appreciated the bilateral relations between Moldova and the EU, saying the neighboring state is Moldova’s main trading partner to which Moldova directs about 28.7% its exports, while imports from Romania represent 14.9%. Projects will be further implemented to ensure the energy independence, by extending the Iași-Ungheni gas pipeline to Chisinau, to connect Moldova to the European power system and to connect a number of districts situated around Ungheni town to the drinking water supply system of Romania. Minister of Business Environment, Trade and Entrepreneurship of Romania Ștefan-Radu Oprea said this joint commission enables to have efficient cooperation as information is exchanged easier and groups of experts work so that the projects implemented by Romania with Moldova are carried out as swiftly as possible. It ensures an open and consistent dialogue between the states and serves as an efficient platform for putting into practice the common socioeconomic activities.
● FRIDAY, November 16
Deadline for trading based on patent extended
The deadline for trading based on patent will be extended for one more year until December 31, 2019. Changes to this effect were adopted by Parliament on November 16 after giving them a final reading. Iuliana Drăgălin, secretary of state at the Ministry of Economy and Infrastructure, said in Parliament that over 1,500 persons who traded based on patent switched to individual entrepreneurial activity since January 2017 until September 2018. Over 9,000 patents were still valid in September. The patent was to be banned in 2017, but the deadline was repeatedly extended given that the process of switching over from patent-based activity to individual activity has been slow. The authorities worked out a series of measures that will be taken in 2019 to encourage the switchover to individual activity.
● SATURDAY, November 17
Second call for providing subsidies in advance over
Eighteen female farmers and ten young farmers filed applications to get payments in advance within the second call of the program to offer subsidies in advance for entrepreneurial projects. The examination of applications will start soon. The applicants asked for subsidies to the value of 15.6 million lei of the total 45 million lei allocated from the National Agricultural and Rural Development Fund. 13 applicants want to plant walnut, hazelnut and plum trees, six applicants want to purchase bee families and specialized equipment for producing honey, while six applicants intend to equip cattle and goat farms.Three applicants will invest in the construction of hothouses, while another three in the development of post-harvest and fruit, vegetable and meat processing infrastructure. The investments in these areas are to generate over 70 new jobs. Earlier this week, seven young farmers and 20 women who run businesses in agriculture received certificates to get subdivides in advance as part of the first call. Over 16 million lei remained unclaimed within the two calls.
Vegetable collection platform built in Dubăsarii Vechi village
A platform for collecting vegetables was built in Dubăsarii Vechi village of Criuleni district that is known mainly for its extensive plantations of tomatoes. The TIR trucks that come to the village to collect vegetables from producers and to export them will stop at a specially laid out place, while the collection process will take place under the surveillance of inspection bodies. The platform was built within the Migration and Local Development Project implemented by UNDP Moldova. In the future, it is planned to also open a sorting and packing house. By two-three TIR trucks will be stationing on the platform in the tomato growing season. The platform will work nonstop. In time, the mayor’s office intends to transfer the platform to the association of producers that would use it for current activities. The platform was built at a cost of 700,000 lei. The largest part of the money was allocated by the UNDP, while the mayor’s office of Dubăsarii Vechi, the Criuleni District Council and the Association of Locals of Dubăsarii Vechi contributed the rest of the amount.
