ECO-BUS WEEKLY DIGEST November 15-21. Most important Economy & Business news by IPN
● MONDAY, November 15
Andrei Spînu: Moldova will have alternatives on import of electrical energy
The Government will continue to unlock infrastructure projects that enable to diversify the electricity supply sources and to take new action in this regard. A contract for the construction of the 158 km-long 400 kW Chisinau-Vulcănești single-circuit overhead high-voltage transmission line was signed in November 12. “This power line will offer us more independence by providing an alternative for importing power from the European area, more exactly from Romania,” Deputy Prime Minister Andrei Spînu stated in a news conference.
When this airline is built, the Republic of Moldova will be able to easier overcome such energy crises as the one witnessed in October. “The Republic of Moldova needs to have alternative power supply sources and to be ready for any situation. The project supports the general program agreed by the Government of the Republic of Moldova for the asynchronous interconnection of the national electrical energy system to the common European electricity market through the European Network of Transmission System Operators,” stated the Deputy Prime Minster.
●TUESDAY, November 16
Natalia Gavrilița in London: Moldova’s Government is pro-business
The Government aims to transform Moldova into a really attractive country in which the digital solutions are a norm and an implicit solution, not an exception. “The Government of the Republic of Moldova is pro-business: we encourage investments so that we would like to see more investors coming to our country. I would like to open a communication channel between the capital markets and businesses in the Republic of Moldova,” Prime Minister Natalia Gavrilița stated in the event “Moldovan Capital Markets Day” that was hosted by the London Stock Exchange, IPN reports.
In her speech, Natalia Gavrilița said the justice sector reform is one of the main priorities of the Government’s reform agenda. This reform implies an external assessment of judges and prosecutors as it is crucial for the citizens and for the business community and foreign investors to enjoy stability and predictability. The justice sector reform will contribute to strengthening the judicial system and institutions, making them more receptive, efficient and honest. This will be a social reform and also an economic reform as an equitable, independent and responsible justice system is essential for the functioning of democracy and is a precondition for a functional market economy.
Two Moldovan state wineries combine forces to overcome pandemic crisis
Wineries in the Republic of Moldova feel the decline in the number of tourists caused by the pandemic. Representatives of this industry that propels the country’s economy consider local tourism needs increased attention on the part of the public and brand consumers in the country. To create a friendly wine circuit, two state-owned enterprises, Cricova and Mileștii Mici, this month will stage a wine run marathon intended for those who want to promote and support wine tourism, IPN reports.
According to the director general of Cricova S.A. Denis Șova, the pandemic affected tourism, which saw a decline of almost 80% in the number of visitors compared with the previous years. But their production line continued to generate profit. “An accomplishment of which we can boast is that Cricova is an authentic country brand that fully belongs to the state. It was recovered by talks from a foreign company ten years ago and now Cricova is a model of success for the state-run enterprises, with an annual profit of 20 million lei and with over 50 million lei taxes paid annually
Banks in Moldova are well-capitalized and well-governed, NBM
The banks in the Republic of Moldova are well-capitalized and well-governed. The reforms have increased transparency and trust for customers, including depositors. The banking sector has proven to be resilient, especially during the recent pandemic crisis, and, in fact, has provided the necessary support to the economy,” National Bank governor Octavian Armașu said in the opening of the Moldovan Capital Markets Day organized at the London Stock Exchange, IPN reports, quoting a press release of the central bank.
The Bank’s administration noted that 90% of the Moldovan banking assets are owned by European investors. This is due to very important reform agenda that was recently implemented, including the IMF program, and these reforms brought tangible results, which have also resulted in the attraction of international investors. Also, the authorities, businesspeople and investors play a major role in strengthening efforts for a common vision in developing a secure and sustainable future.
● WEDNESDAY, November 17
Government to approve 2022 State Budget on Friday
The draft 2022 State Budget will be approved during the Government’s meeting on Friday, announced prime minister Natalia Gavrilița.
In this respect, the prime minister asked the Cabinet to make sure that the Ecological Fund, the Agricultural Subsidy Fund, the Road Fund, the Regional Development Fund, the Social Investment Fund are integrated in a simple and predictable manner. “I would like to see that by the end of the year we perfect together new and clear mechanisms for the use of these funds,” said the prime minister.
Natalia Gavrilița said that new capacities are needed to ensure a rapid absorption of funds coming to Moldova and into rural and economic development projects. The prime minister said she wants funding programs for the “European Village”, a funding program for regional infrastructure projects and a program focusing on major national objectives to be achieved over the next four years.
●THURSDAY, November 18
US$3.8m agreement with International Finance Corporation ratified
Parliament ratified the US$3.8 million agreement of cooperation between the Republic of Moldova and the International Finance Corporation (IFC). The money will be used to enhance the private sector’s competitiveness in the export of products of animal origin, including poultry, eggs, milk and dairy products, to the European Union, IPN reports.
The agreement for implementing the Moldova Investment Climate Reform Project (stage II) is valid until June 30, 2023.
Of the total value of the project, IFC will contribute US$2.8 million, while the Government of Moldova – US$1 million by financing state institutions, including by making payments for goods and services needed for implementing the project. Direct contributions from the state budget are not envisioned.
●FRIDAY, November 19
Chisinau – Kiev train route to be relaunched
The Chisinau– Kiev train route will be resumed. Such an agreement was reached by Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development, in a meeting with his Ukrainian counterpart Oleksandr Kubrakov during a working visit to Kiev, IPN reports.
According to the Ministry of Infrastructure and Regional Development, the interlocutors discussed technical details for hastening the construction of the Cosăuți (MD) – Yampol (UA) bridge, the necessity of restoring the railways that are situated on the territory of Ukraine, between the Halta 111 – Basarabeasca, Halta 208 – Greceni, Etulia – Giurgiulești stations and the facilitation of the transit of trains through Ukraine via the Giurgiulești – Reni – Etulia railway sector.
Government approves 2022 budgets
Revenues to next year’s State Budget are expected to amount to 50.1 billion lei, 9.2% up on this year, according to the draft State Budget Law approved today by the Government. The main policy measures concern salaries, health care, social protection, regional and local development, as well as business environment, IPN reports.
Prime Minister Natalia Gavrilița declared at the beginning of the Government’s meeting that “the budget for 2022 is, first of all, a budget for the people” because the amounts allocated for social protection and social support of citizens will increase significantly. It is also a development budget, because allocations and expenditures for roads, regional and local development and infrastructure will be increased as well.
● SATURDAY, November 20
Minister on what will happen with 1.4 billion lei unspent by Energocom
The remainder of 1.4 billion lei allocated to, but unspent by Energocom during the October energy crunch is still in the Government’s accounts; the money was only allocated and not effectively transferred, clarified Finance Minister Dumitru Budianschi.
“The money will be transferred to Energocom when it decides that it needs this money. This money is intended to guarantee energy security. If it wasn’t for this allocation, we would have had problems with gas supplies in late October. And only this allocation of 387 million lei allowed Energocom to make gas purchases, to infuse additional amounts into the system so at to maintain stable pressure levels”, said Budianschi.
