ECO-BUS WEEKLY DIGEST May 31 - June 6. Most important Economy & Business news by IPN
● TUESDAY, June 1
NBM celebrates 30 years of its founding
The National Bank of Moldova (NBM) celebrates 30 years of its founding on June 4. On this occasion, it will stage a number of events. On June 1, the central bank will launch the video series “People of the NBM”. By a story of an employee who will relate the experience of working as part of the Bank’s team and moments from the personal life be published on the NBM’s communication platforms during 30 days. In connection with the anniversary, NBM governor Octavian Armașu said that June 4 is an essential date in the independence period of the Republic of Moldova. “The National Bank of Moldova was founded 30 years ago and the basis of the banking system was laid this way. Without this, the initiation of transition to a market economy wasn’t possible. In the period, the banking system was subject to multiple tests and we accumulated knowledge, experience. I’m confident that we will continue on the path of reforms with tenacity and responsibility, building a strong banking system that deserves to be trusted, as we aim,” stated Octavian Armașu, being quoted in a press release.
Highest salaries continue to be paid in ICT sector
The gross nominal average monthly salary at the real sector units with four and more salary earners and at all the public sector institutions in the first quarter of this year was 8,468.6 lei. The figure is by 10.9% higher than in the corresponding period last year and by 4.4% lower than in the fourth quarter of 2020. The highest average monthly pays in the first quarter were reported in the ICT sector – 19,914.5 lei. According to the National Bureau of Statistics, the ICT sector is followed by financial and insurance activities with average monthly salaries of 15,428.9 lei, and electricity, heat, gas, hot water and air conditioning production and supply with pays of 12,243.0 lei.
● WEDNESDAY, June 2
EC approves €600m economic recovery plan for Moldova
The European Commission approved a €600 million economic recovery plan for a three-year period for the Republic of Moldova. MEP Siegfried Mureșan, of the PNL, who heads the European Parliament’s Delegation to the EU-Moldova Parliamentary Association Committee, said the plan that was announced by the EC today is the best news received by the citizens of the Republic of Moldova from the European Union since the liberalization of the visa regime. “This is the only economic package of the kind provided by the European Union to a country of its Eastern neighborhood. The economic recovery plan for the Republic of Moldova wouldn’t have been possible without the very close cooperation between President Maia Sandu and the institutions of the European Union. The money will go first of all to connectivity, which is investments in road, digital, energy infrastructure and then in economic competitiveness and support for small and medium-sized enterprises and the reforms expected by the citizens of the Republic of Moldova in public administration, public sector, justice and the fight against corruption,” says Siegfried Mureșan’s statement.
Statements on fuel prices and consequences on agrifood sector
The national agriculture and food employers and trade union federations say the rise in fuel prices will inevitably lead to increases in the prices of national goods and services, mainly in the agrifood sector, and this will reduce the competitiveness of the Moldovan producers on the domestic market of the Republic of Moldova. Concomitantly, this will cause a dramatic decline in the living standards of the population. In a statement, the federations demand to restore the normal situation on the domestic fuel market by capping fuel prices or they will resort to protests. “Even if the price of a barrel of crude oil on international stock exchanges remained US$ 68, the price of gasoline during the past six months rose by 33%, but the National Agency for Energy Regulation and the Competition Council didn’t react appropriately, making only accusations against each other. The main cause indicated by them is the fluctuations on the international market and the rise in excise duties (by 9%). Therefore, we seek efficient solutions for farmers: concessions and exemptions from taxes during the agricultural works,” runs the statement.
EC President: Economic Recovery Plan constitutes an unprecedented effort to help Moldova on its path to recovery
The European Commission announced an Economic Recovery Plan for the Republic of Moldova, which will mobilize up to €600 million in macro-financial assistance, grants and investments, supported by blending and financial guarantees. This new funding will be mobilized over the next three years to promote investment that underpin a sustainable and inclusive recovery from the COVID-19 crisis in the country. European Commission President Ursula von der Leyen said the Republic of Moldova is at a crossroads. The EU’s Economic Recovery Plan constitutes an unprecedented effort to help the country on its path to recovery and drive an ambitious reform agenda forward, in the interest of its citizens.
● THURSDAY, June 3
CNSM suggests increasing minimum guaranteed salary to 3,100 lei
The National Trade Union Confederation of Moldova (CNSM) suggests reexamining the minimum guaranteed salary so that this is raised to 3,100 lei as from July 1 this year. The proposal was addressed to acting Prime Minister Aureliu Ciocoi and the chairman of the National Employers Confederation of the Republic of Moldova Leonid Cerescu. CNSM head Oleg Budza said the social partners should initiate consultations so as to make sure that the minimum guaranteed salary in the real sector is increased and this is implemented by a Government decision. The minim guaranteed salary was set at 2,935 lei on January 1, 2021 only, not on May 1, 2020 as it should have been done. As a result, the employees monthly lost earnings of 160 lei or 1,280 lei for eight months of 2020, said the trade unions.
Competition Council’s reaction to demand to publish report on oil market
The Competition Council said the publication of the report on the oil products market would be a serious violation of the legislation, which would enable the companies featured in the investigation to complaint to court about the illegal actions and to stop the adoption of a final decision. Moreover, the responsible persons who intend to publish the report are liable to punishment, including criminal one. The Council makes reference to the provisions of the Competition Law under which the collected confidential information os used by the Competition Council for the purpose for which it was obtained and cannot be revealed, if only with the consent of the person from which it was obtained. It noted that in all its actions, it abides by the legal procedures and timeframes. The case is now at the stage when the parties can benefit from the right to defense. When the Council adopts the decision, this will be a public administrative document that can be subject to judicial control.
Small producers of Aeolian energy concerned about NAER decision
The small producers of Aeolian energy consider it is not right to oblige them to assume financial responsibility towards the transmission system operator for the imbalances resulting as deviations from the coordinated timetables. This is provided in a decision of the Administration Board of the National Agency for Energy Regulation (NAER) that was proposed for public debates. In a letter addressed to President Maia Sandu and the Ministry of Economy and Infrastructure, they note the provisions substantially disadvantages the small producers of Aeolian (renewable) energy against other participants in this market. The letter signed by 20 companies says that the power installed at Aeolian plants managed by producers of Aeolian energy at the end of 2020 was of 47.1 MW (21 producers, 37 Aeolian turbines), which generates less than 1% of the total electric power consumption in the Republic of Moldova. The methods for assessing the values contracted and generated by producers of Aeolian energy are not comparable with those of other participants in the electricity market, such as providers and system operators. At the current stage, all the produces provide oral information about the produced and delivered energy. In the case of suppliers and system operators, there will be applied calculation models with a high level of uncertainty.
● FRIDAY, June 4
Coin dedicated to 30th anniversary of founding of NBM
The National Bank of Moldova (NBM) on June 4 puts a commemorative coin with the face value of 10 lei into circulation in Moldova as legal tender and for numismatic purposes on the occasion of the 30th anniversary of the founding of the Bank. In a press release, the NBM said the coin is made from steel and is coated with nickel and brass, having a silvery and golden aspect. The obverse of the coin has the stylized image of figure “30” in the center, the emblem of the NBM, the coat of arms of the Republic of Moldova, the words “NATIONAL BANK OF MOLDOVA” and a decorative element, while the adverse – the nominal value “10 LEI”, the year of issue “2021” and the monogram of the letters “R” and “M” – the acronym of the Republic of Moldova.
Money from economic recovery plan approved by EC will be directed to five pillars
The €600 million economic recovery program for the next three years approved by the European Commission for the Republic of Moldova will be channeled into five essential pillars, President Maia Sandu stated in a news conference held jointly with Deputy Director General for Neighborhood Policy and Enlargement Negotiations Katarína Mathernová. About €220 million will go to ensure the correct management of public funds, approximately €100 million - to support small and medium-sized enterprises and projects in communities in Moldova, €230 million – to finance works in infrastructure. “I want to note here that this pillar contains measures to conserve the Nistru River and to ensure the better management of water resources. I remind you that this was our concrete request at the discussions we had in January during the visit to Brussels,” stated President Sandu.
NAER reacts to requests to cap fuel prices
The National Agency for Energy Regulation (NAER) said that it took note of the statement by which the National Agriculture and Food Industry Employers Federation and the National Federation of Trade Unions of Workers of Agriculture and Food “Agroindsind” demand to cap fuel prices within ten days. According to the Agency, the procedure for drafting a new methodology for calculating and applying the prices of oil products started on May 12. As part of this process, the NAER proposed the new methodology for debates at a number of public meetings so that all the interested parties could formulate proposals over the new document. At the current stage, in accordance with the legal provisions, the draft methodology is being examined and assessed by the responsible institutions. Next week, there will be set the exact date of the public meeting where the methodology will be approved, most probably by June 14. “The NAER reiterates the request addressed to all the responsible bodies to provide the necessary appraisals as swiftly as possible so as to incorporate their proposals into the methodology for the purpose of improving its content,” runs a press release of the Agency.
● SATURDAY, June 5
Maia Sandu: For economic recovery, we need financial packages for people
The banking sector of the Republic of Moldova, together with the National Bank, went through many difficult stages, with system problems, and the period when the US$1 billion was stolen is the worst period for the National Bank. As a state, we must make sure that such frauds do not repeat, while the National Bank of Moldova should be an authentic regulator in the sector, President Maia Sandu stated in an online conference entitled “Post-pandemic economic recovery: realities and prospects” that was held to mark the 30th anniversary of the founding of the NBM. The official said that in the current economic crisis context, the expectations from the National Bank are even bigger. They are related to firm interventions that would help the big or small businesses to resist and would also help the people in need or those who lost their jobs. “In fact, for economic recovery we need more accessible financing and financial packages created for the people and also a common effort that, alongside the support offered by the development partners, would mobilize the internal resources and the tens of billions of lei that exist in commercial banks,” stated Maia Sandu.
CAA recommends buying plane ticket after negative result of COVID-19 test
When the passenger is not allowed to enter a plane for health reasons, such as infection with COVID-19, the carrier does not have additional obligations toward this. The Civil Aviation Authority (CAA), making reference to the Civil Code, says the ticket is the confirmation of the transport contract. The nonfulfillment of the obligation by the carrier is justified if it is due to an impediment outside the carrier’s control, as in the case when a passenger cannot travel for health reasons. As the transport contract varies from one airline to another, the CAA recommends buying a plane ticket after having the negative result of the COVID-19 test and after familiarizing oneself with the information in the Travel Advisory section on the website of the Ministry of Foreign Affairs and European Integration. It also recommends all the passengers to administer a vaccine against COVID-19 and to have an appropriate confirming document. If circumstances from the sphere of the carrier appear, about which the passengers could not know, or, if they had known about them, they wouldn’t have bought a ticket, the passenger can ask for the termination of the transport contract and the money for the ticket is paid back without delay.
