ECO-BUS WEEKLY DIGEST August 16-22. Most important Economy & Business news by IPN
● MONDAY, August 16
Moldova among top 10 countries with best value for mobile data in the world
A study by Top Dollar, a financial insights hub, has found Moldova to be among the top 10 countries with the best value for mobile data in the world. To determine this, the study collated the cost and speed of mobile data and compared prices to Mbps.Israel was found to have the best value mobile data in the world with $US0.01 per 1Mbps download speed. China came in second with $US0.03 followed by a group of countries at $US0.06 including Australia, Italy, France and Kyrgyzstan. On $US0.07 was Kuwait and Fiji. Moldova ranked 9th wth $US0.08, followed by Denmark with $US0.09.
Fly One Armenia - the international link between former and current state dignitaries
The airline "Fly One Armenia" was established in March of this year in Armenia by the family of the Armenian pro-government MP Khachatur Sukiasyan in cooperation with the Moldovan company Fly One, which owns 46 percent of the business.None of the Sukiasyan brothers - Khachatur, Saribek, Eduard and Robert - indicate any relationship to the 54 percent share of "Fly One Armenia". Other Armenian citizens are listed as owners; however, they are obviously connected to the Sukiasyan family. In regard to the Moldovan share of the business (see the Center for Investigative Journalism in Moldova study), Armenian journalists wrote that the owners of "Fly One" are people linked to former Moldovan dignitaries. A 40% share belongs to Maria Cebotari, the wife of Moldova's former Justice Minister in 2015-2017 - Vladimir Cebotari. Another 10% of the shares belong to the sister of the same former official - Mariana Tabuica.
Central Securities Depository becomes ECSDA member
The Central Securities Depository (DCU) has become a full member of the European Central Securities Depositories Association (ECSDA) - an international organization composed of the most important players in the securities transfer market. According to Național Bank Governor Octavian Armașu, gaining membership in ECSDA is a sign of appreciation of BNM’s efforts in recent years and the results achieved in the field of securities settlement. The BNM is committed to developing a sound financial infrastructure that will support and stimulate investment. In previous years, the single Central Securities Depository has been established and its capacities were strengthened. "Thanks to these activities, any transfer of financial instruments within the country, be it government securities, shares or other instruments, is carried out safely," said Octavian Armașu. Alexandru Savva, director of the DCU, said that he wants the DCU to become part of the international capital market in the coming years. This is an ambitious and complex goal, but a necessary one if the volume of foreign investment is to increase, said the DCU director. Being part of the ECSDA is an important step in this direction. "It will be an important signal to foreign investors that the Moldovan market is safe for investment," the director said.
●WEDNESDAY, August 18
Parliament commission endorses bridge construction over Nistru
Parliament’s Foreign Policy and European Integration Commission today approved the start of talks with Ukraine on the construction of a new cross-border road bridge over the Nistru River, near Cosauti village. According to a Parliament press release, the construction of the bridge will ensure the connection of roads through the eastern part of Moldova to international roads. At the same time, the bridge will facilitate trade on the domestic and international market. It will also increase Moldova’s role as a liaison between the states of the European Union and the Commonwealth of Independent States. The new bridge and the connecting road will be 1,600 meters long. Estimated at a total 100 million euros, with the costs to be covered by the Ukrainian government, the bridge is expected to be put into operation in late 2022. Currently the border crossing at Cosauti/Yampil is serviced by a ferry.
Berlin Economics: Moldova's agriculture should shift to grain processing
Moldova's agriculture needs to move towards processing grain for export, which will ensure higher incomes for the economy. At the same time, there is a need to increase the export quota for Moldovan plums, especially fresh plums. The German economic consultancy Berlin Economics has issued these recommendations after conducting a study concerning the export of Moldovan agricultural products to the European Union (EU). The study results were submitted in Chișinău at a meeting attended by the Minister of Agriculture and Food Industry, Viorel Gherciu. German economic policy advisor, Ricardo Giucci, said that Moldova has great potential for exporting grapes and apples. "The bulk of horticultural products are exported to the Russian Federation. However, in order to see an upward trend in the value of horticultural products in the European Union and to gain long-term competitive advantages, the horticultural sector needs diversification, investment and innovation-driven development in line with the European Union's requirements", the German expert was quoted as saying in a ministry press release. According to Minister Viorel Gherciu, the priority on the Moldovan government agenda is to increase the access of agricultural producers to foreign markets. "Thus, we require recommendations for concrete actions. In the light of the study's findings, agricultural producers will be informed of new opportunities and we will be able to create new conditions in order to facilitate the export of agricultural products," the official said.
●THURSDAY, August 19
Public Property Agency publishes report for first half-year
The Public Property Agency has published its report for the first half of this year. On the controversial concession of the International Chisinau Airport, the Agency said it verified the cost basis of the airport taxes collected by the concessionaire Avia Invest, without revealing what it has found and what has been done to terminate the concession per the government’s intention. On another controversial concession, the one granted for the national network of bus stations, the Agency said “a performance bond has been established”. Also, the Agency obtained a pledge from the insurance company Moldasig to pay the public partner, i.e. the government, the 5 million lei owed under the public-private partnership agreement.
In total, the Agency monitored 45 PPP and concession agreements at local and national level. On behalf of the government, the Agency has played the role of founder in 129 state companies and stakeholder in 70 other companies.
● FRIDAY, August 20
Central bank says restrictive monetary measures needed to curb inflation
There is an imminent likelihood of the annual inflation rate to exceed the ±1.5 point margin above the 5% per annum target set for the fourth quarter of this year, warns the National Bank of Moldova. For this reason, it says, some restrictive monetary measures are necessary in the immediate future. According to the National Bank, annual inflation was 3.5% as of July, a 0.3 point increase on June.
CPI rose last month, a first for the month of July since 2012, amid rising food prices globally and also because of a delay of seasonal disinflationary factors usually associated with the harvest of fruits and vegetables.
Chisinau apartment building to shift to autonomous centralized heating system
By the start of the cold season, another apartment building on Pandurilor Street in Chisinau will be equipped with an energy-saving autonomous heating system with horizontal distribution, under a partnership between the city’s main heat supplier Termoelectrica and Green City Lab. The new system, which provides hot water in addition to heating up radiators, promises to cut heating bills by up to 30%. Other advantages include having a heating and hot water meter in every apartment, the possibility for each apartment to switch the heating on and off at any time, and the possibility to regulate temperatures.
Apple crop expected to be 25% larger this year
Moldova is expected to produce about 600,000 tonnes of apples this year, similar to what was harvested în 2019 and by 25% more than the 2020 crop, estimates the Association of Fruit Producers and Exporters “Moldova Fruct”. Moldova Fruct executive director Iurie Fală has told IPN that the richer yield is expected despite unseasonably low temperatures and ample precipitation during the bloom period. “Rains made treatments more difficult. But overall the size of apples will be within the normal range, and the difference in daytime and nighttime temperatures will give apples a good coloring, especially for the red varieties”, said Fală. But estimating apple exports would be tricky. “Certainly, (exports) will be influenced by the increase in the supply of apples on the Russian market from local producers and important ones from countries such as Iran, Turkey, Azerbaijan and others. What is certain is that Moldovan apple producers and exporters should pay more attention to their sales plans, actively seek alternative export markets and work to increase local consumption of fresh apples,” said Iurie Fală. Almost half of this year’s apple crop will be delivered to processing companies.
