Most important Economy & Business news by IPN
● MONDAY, September 9
Igor Dodon agreed with Vladimir Putin that gas price will cease to increase
The President of the Republic of Moldova, Igor Dodon, said that he had agreed with the President of the Russian Federation, Vladimir Putin, that this year, the price for natural gas will not be increased, while it would be reduced next year. The discussions were held during a one-day official working visit to Moscow, on Saturday, September 7. "We have reached an agreement in principle and coordinated the next steps regarding gas supply collaboration, which already allows us to state that tariffs for the consumers will not increase. Starting October 1, the price of Russian gas supplied to Moldova will decrease", Igor Dodon wrote on Facebook.
A company alleges it could be dispossessed of a 500 thousand euros building
The representatives of a Slovenian company, "A5 Plus Nepremicnicne Poslovanje D.O.O.", contend that they could be deprived of a building in the center of Chisinau, worth 500 thousand euros. A year and a half after the transaction, the company was notified that, in a trial initiated by a former owner of the building, Chisinau Court cancelled the purchase contract, and the building was seized. At an IPN press conference, Marisa Kurilo, director of "A5 Plus Nepremicnicne Poslovanje D.O.O.", said that the company was operating in the area of investments in real estate market. Lawyer Ion Crețu recalls how the building was purchased by the Slovenian company. In July 2016, he was contacted to provide legal assistance at the conclusion of the sale-purchase contract of a building on Veronica Micle street. The advertisement concerning the real estate sale was placed on a commercial bank’s website and as a result the Slovenian company submitted the offer. The agreed price constituted 500 thousand euros.
CNAS concluded contracts with 8 banks for payment of medical leave by means of salary cards
The economic agents that pay the benefits for temporary work incapacity on salary cards can apply to eight financial institutions that have concluded contracts with the National Social Insurance House (CNAS). According to a CNAS press release, the eight banking institutions are: FinComBank, Energbank, EuroCreditBank, Eximbank Gruppo Veneto Banca, Moldova-Agroindbank, Moldindconbank, Victoriabank, Comerţbank. "Thus, in order to receive the benefits on salary card, the employee shall submit to the employer a request, with no specific template, expressing the agreement for the transfer of money on salary card and personal data processing for making the mentioned payments", the statement says.
Slovenian investors call on the state's leadership
The management of the Slovenian company "A5 Plus Nepremicnicne Poslovanje D.O.O." calls on the Parliament, on prime minister Maia Sandu and president Igor Dodon to look into the situation in which they found themselves as foreign investors. The representatives of the company claim that, following the court ruling, which they consider illegal, they risk being deprived of a real estate that they bought in Chisinau for the amount of 500 thousand euros. The legal action against them was filed by a former owner of the building - JSC "Liga 2", which is in a process of insolvency. Nicolai Grishkun, co-founder of the company, said during a press conference at IPN that the Slovenian investor had acquired the building and the land on which it was located. And behind this immovable property, another building was supposed to be erected. From 2016 until 2017, when the litigation began, he prepared all the necessary documents. According to him, although the court’s decision was issued a few days ago, they had received information since February 2018 that the court would rule against the Slovenian company and that it would be dispossessed of the real estate.
Broadband internet subscriber number increased
The number of subscribers to fixed broadband Internet services increased in the first half of this year, compared to the end of 2018, by 3.3% and totaled over 643.6 thousand. The share of subscribers who contracted fiber optic connections (FTTx) reached 65.5%, while number of xDSL technology subscribers equaled 26.7% and number of coaxial cable (DOCSIS) subscribers constituted 7.5%. Other types of connection accounted for 0.3%. According to the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) data, during the first semester of the current year, the most important increases of cable Internet connections, according to the data transfer rates contracted by subscribers, occurred in the above 100 Mbps segment and in the 30 Mbps - 100 Mbps segment.
Foreign investors must be protected by state, statements
If the state wants to attract foreign investors, then authorities must take appropriate measures to ensure the protection and attraction of foreign investments. The statement belongs to the representatives of the Slovenian company "A5 Plus Nepremicnicne Poslovanje DOO", who mentioned, in a press conference at IPN, that following an illegal court judgement they risk being dispossessed of an immovable property purchased in Chisinau, worth 500 thousand euros. Nicolai Grishkun, co-founder of the company, does not rule out that judge Nicolae Șova, who rendered the judgement, was under pressure, or otherwise it was corruption. According to him, the magistrate knew that the ruling was wrong and tried to dodge the case, including by self-recusal, but his request was rejected. He also tried to delay ruling on the case through adjournments. However, the judgment of the first instance court was finally issued a few days ago. The investor also said that in February 2018, they had received information that the court would rule against the Slovenian company and that it would be dispossessed of the real estate.
Gas prices will drop next year, regardless of Dodon and Putin's dealings, expert
Energy expert Sergiu Tofilat believes that, regardless of what President Igor Dodon and his Russian counterpart, Vladimir Putin, agree upon, gas prices for the Republic of Moldova will drop next year. According to him, gas prices in the European Union are decreasing. "For example, today we pay $240 per thousand cubic meters, while gas prices in the EU already dropped below $120", said Sergiu Tofilat in a Radio Free Europe interview. "The import price we pay today is established on the basis of the contract signed between Moldova-Gaz and Gazprom. The price changes quarterly based on a formula. Current tariffs are dependent on previous year gas, fuel and diesel prices on the EU market. In other words, what we pay today is dependent on previous year EU prices”, explains the expert.
Specifications regarding the taxation of lotto winnings
According to the amendments to legislation, the taxation of lottery and sports betting winnings over 240 lei shall be applied from January 1st, 2020, not from September 1st. Thus, all the lottery tickets and sports betting winnings, obtained until December 31, 2019, shall be paid in full, without the tax being collected from beneficiaries. A press release of NGM Company, organizer of lottery and sports betting, mentions that another provision which caused confusion refers to imposing a tax on the commercial units that sell lottery tickets. The company states that the cancellation of the tax exemption for commercial units (local tax) shall also apply from January 1st, 2020, and not from September 1st, 2019.
● TUESDAY, September 10
More than half of capital’s buses should be upgraded
More than half of buses under the management of "Urban Bus Park" Municipal Enterprise are old and must be renewed. This statement was made by Vitalie Copaci, head of the enterprise, during the presentation of the Report on Bus Park financial activity at a City Hall working meeting. According to him, at the moment the company has 144 transport units under its management, of which 31 are new, well-equipped, purchased in 2019. Another 90 buses need to be replaced. Vitalie Copaci says that the average age of the transport units is 14 years, before the new buses were purchased, the average age was 18 years.
Rental price of Press House premises to be lowered
The media institutions of the country will be able to rent spaces at lower prices in the Press House, as well as in other buildings administered by the Government. An order to this effect was signed by Andrei Spînu, Secretary General of the Government. The decision comes as a result of several notifications from the media, referring to the exaggerated prices for renting spaces, IPN reports with reference to a Government press release. Andrei Spînu also said that so far mass media institutions have been renting spaces at the maximum 1.5 market coefficient. The issued order provides for the reduction of the coefficient to 1.0 for processing the lease agreements between the media and the General Division for Government buildings administration of the Republic of Moldova.
Agricultural sector is experiencing significant production decrease, AOAMP
The agricultural sector is experiencing a significant drop in agricultural production and is still far from being in a stable position which would allow it to face external competition without state protection. Farmers are the first ones to feel the weight of the challenges in the agri-food sector. The statements belong to representatives of the Association of Moldovan Business People Everywhere, who presented the results of the "Regional Agricultural Dialogue" (DAR) campaign on Tuesday, September 10. In an IPN press conference, Alexei Repede, AOAMP president, said that during the DAR campaign, the Association, together with experts from Romania, made numerous visits to settlements from all districts of the country, where they had discussions with the agricultural producers and representatives of public authorities. Thus, between July 23 and August 9, the situation in the agri-food sector was evaluated.
Voluntary declaration of possessions brought over one million lei to state budget
Since the implementation of the service of voluntary declaration of possessions, the State Tax Service has collected 1 067 288 lei in taxes generated by this service. In an SFS statement, the tax breakdown shows that 30 024 lei derived from the declaration of shares of the de jure owner. 93 596 lei come from the reassessment of immovable real property and means of transport, while 69 623 lei come from the taxation of immovable real property declared by the de jure owner.
● WEDNESDAY, September 11
Moldova could have a motorway in at least ten years, press club
A highway that would connect the Republic of Moldova with the European road infrastructure and the European economic corridor could be built in at least ten years. Currently, the project "Moldova wants a highway", which establishes a connection between Munich - Vienna - București - Târgu Mureș - Iași - Chișinău - Odessa is being reviewed, while an impact study is to be conducted. Statements in this regard were made during a meeting of the Economic Press Club. According to estimates of international experts, the cost of the highway would reach one billion euros for the Ungheni-Chișinău segment and an additional 1.8 billion euros for the Chișinău-Odessa section. The cost of the feasibility study would reach ten million euros for the Ungheni-Chișinău segment and 22 million euros for the Chișinău-Odessa section.
Apartments are more accessible than last year, economic expert
Although in 2019 the first increase in prices for apartments in the last 11 years has been noted, they are by 6% more accessible than last year, due to the increase in the average annual salary recalculated in euros, maintains Veaceslav Ioniță, economic expert. In an article published on the website of IDIS "Viitorul", the expert mentions that for the purchase of an apartment of 70 square meters in Chisinau municipality in the second quarter of 2019, 8.8 average annual salaries are needed, compared to 9.4 average annual salaries in 2018.
Wine City to be extended to "Nativity of Our Lord" Cathedral square
The National Wine Day will be organized this year the first weekend of October, on October 5 and 6. But the start of the holiday will be given a week earlier by the country's wineries. They will open their doors for guests from September 28 until October 13. For the first time, on October 5 and 6, the Wine City will expand beyond the Great National Assembly Square, including the square of "Nativity of Our Lord" Metropolitan Cathedral, which will host the Wine School and the Countryside Yard. Contacted by IPN, Daniela Donțu, ONVV media and branding expert, stated that access to the National Wine Day was free, but visitors would be able to purchase, as in previous years, a wine tasting book. The price of a tasting book is of 200 lei if purchased prior to the event, while on the day of the event it can be purchased for 250 lei. The books will go on sale next week.
Temporary incapacity for work allowances will be paid starting September 18
The first payment of temporary disability allowances will be issued on September 18, 2019. According to a National Social Security Office (CNAS) press release, CNAS employees work overtime and during the weekend in order to ensure the payment of the respective allowances, which will be issued based on the data received through the Portal for medical leave certificates. In order to receive the compensation for temporary incapacity for work via the salary card, the beneficiary needs to file a request to the employer. If the beneficiary holds a social card (for allowances for families with children, pensions, other allowances), the temporary incapacity for work payment will be transferred to the social card. If the beneficiary does not have a salary or social card, the allowance can be collected at any post office.
Base rate for main monetary policy operations remains at 7.5%
The base rate applied to the main monetary policy operations remains at the same level of 7.5%. A decision in this regard was adopted today, September 11, by the Executive Committee of the National Bank of Moldova. According to the decision, the values of other monetary policy instruments will remain unchanged. Thus, the interest rates on overnight loans will continue to be 10.5% annually and 4.5% annually for overnight deposits. BNM Governor Octavian Armașu said that the decision was made following the evaluation of the latest macroeconomic data. "We can see that the inflation rate is in the target corridor for the fourth month in a row. For August, the inflation rate is 5.5%, which is above the surface. If we go deeper, we see that by the end of the year we will have higher inflationary pressures. Thus, our previous forecast remains valid, which means that by the end of the year, we will probably exit the corridor and the inflation rate will be higher than the inflation target rate. This trend may even continue in the first months of next year”, the governor explained.
Sales on market of TV services provided against payment, on a rise
The total volume of sales, as well as the number of subscribers on the market of television services provided against payment, through cable and IP TV networks, registered an increase in the first semester of this year. The volume of sales of TV services against payment increased, compared to the same period of 2018, by 5% and amounted to 82.6 million lei. The total number of subscribers increased, compared to the end of 2018, by 10.2 thousand and made up 339.9 thousand. The National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) mentions that the increase in revenues from the sale of TV services against payment was determined by the increase in sales carried out by providers operating the IP TV networks. The volume of these sales increased by 13.6%. At the same time, the sales operated by the cable network providers decreased by 3.2%. Revenues obtained from the sale of services through MMDS technology decreased by 29.1%.
In Chisinau there are 80 electric waste collection points
Since 2018, 80 electric waste collection points have been installed in Chisinau, IPN reports, referring to a press release issued by the United Nations Development Program, which implemented in Moldova "Clean city with recycled e-waste" project. The statement shows that in the 80 points of electrical waste recycling people can throw mobile phones, batteries, irons, hairdryers, toasters, tablets, laptops, cables and so on. Dumpsters can be found in some stores of Fourchette, Linella and Maximum networks.
Massive frauds at Moldovagaz started 20 years ago, WatchDog report
The disastrous situation in which Moldovagaz currently finds itself is largely due to fraudulent administration, with the tacit knowledge and agreement of the shareholders, especially of the majority shareholder Gazprom. This was aggravated by the abusive conditions imposed by Gazprom when signing gas delivery and transit contracts. Additionally, ANRE, the government and Parliament took illegal and reckless decisions that severely damaged the assets of the company. This and other conclusions can be found in the Report on the activity of JSC "Moldovagaz" and on the schemes of consumer fraud over the course of the last 20 years, presented by the community for advocacy and public policies "WatchDog.MD" in a public event.
● THURSDAY, September 12
Management company promises to renovate all transport waiting stations
The company that manages the approximately 300 public transport waiting stations in the capital announced that it had overcome insolvency, entered in 2010. Thus, the company resumed its commitment to maintain the waiting stations, fitted out 12 years ago, in exchange of advertising billboards. The subject was discussed at a meeting of the economic agent with the acting mayor, Adrian Talmaci. A City Hall press release mentions that the rehabilitation of the pavilions of public transport stations started in April this year. It was envisaged to repair 10 stations per month. So far, 42 stations on the main streets of the city have been renovated. The press release also states that, starting 2007, "Epamedia" Ltd has invested 2.5 million euros in the refurbishment of 302 public transport waiting stations in the capital, based on a public-private partnership with the Chisinau City Hall.
Transporters have protested, while MEI officials say a meeting is due to take place
Employers' Association of Road Transport Operators (APOTA), through its leader Oleg Alexa, accused of lies the Ministry of Economy and Infrastructure (MEI) and organized a protest on September 12. The main dissatisfaction resides in the low fares for intercity transport tickets. MEI officials say, in their turn, that transporters have triggered protest actions although they set up a meeting with ministry officials on September 16. Oleg Alexa told IPN that ministry officials lied to transporters on several counts. "Since June 26, Minister Vadim Brînzan has the internal calculations on the increased transport tariff and, according to their calculations, it is of 71 bani / km," said APOTA head. He says ministry officials pretend that they discuss tariffs with transporters, although they had established them a long time ago.
● FRIDAY, September 13
Chisinau-Ungheni railway line will be rehabilitated with French support
Chisinau-Ungheni railway line is to be rehabilitated as part of a modernization project, under which a financial loan will be granted on preferential conditions. The Government of the Republic of Moldova and the Government of the French Republic have signed today a letter of intent regarding the financing of the project. The document was signed by the Minister of Economy and Infrastructure, Vadim Brînzan, and the Secretary of State for European Affairs, Amélie de Montchalin. "Funds granted by the French Government will be earmarked for purchasing automated equipment and rehabilitation of railway segments of Chisinau-Ungheni section. This project is a strategic one for our country and will substantially improve the connection of the Moldovan rail network to the Romanian and European ones”, mentioned Vadim Brînzan, quoted by a MEI press release.
