ECO-BUS WEEKLY DIGEST January 3 - 9. Most important Economy & Business news by IPN
● MONDAY, January 3
Loan portfolio in banking sector up 20%
The value of loans in the banking sector in the first 11 months of 2021 rose by 9.136,9 million lei (20%) to 54.786,1 million lei. The Loans and Advances accounted for the largest part of the released loans – 46.5%.
According to the National Bank of Moldova, the rise in the loan portfolio in the banking sector in 11 months is primarily due to home homes, which represented 40.9%, and to consumer loans, which constituted 37.9%.
Currently, the quality of loans is favorable. The loans for purchasing/building home loans and consumer loans classified into nonperforming categories account for only 2.8% and, respectively, 5.5%.
The quality of the loan portfolio has improved compared with the end of the previous year following the higher growth pace of the loan portfolio compared with the increase in nonperforming loans. This way, the nonperforming loans represented 6.3%, being by 1.0 percentage points lower than at the end of the previous year.
Ban on advertisements for lotteries and sports betting in force
The legal provisions that ban any kind of advertisements for gaming, lotteries and sports betting took effect. Those who see such advertisements are urged to call the police or to notify the Parliament’s commission on economy, budget and finance.
“We have many laws that exist on paper only, not yet in reality. To make sure that this will not be the next such law, let’s make joint efforts. If you see any violation of the law, call the police. Just do so that the state does its job. The police are obliged to ascertain the violation and to fine those to blame. Be our “spy”. Take a picture and send it to the email address ceb@parlament.md. The commission is responsible for the implementation of the law and this will help us a lot,” said PAS MP Dumitru Alaiba, who is co-chairman of the commission on economy, budget and finance.
The people are urged to denounce adverts for lotteries if they see such at supermarkets, at the post office or in any other public place.
The MP also said that such a type of advertisements was banned in order to protect the population from gambling addiction. According to his data, 1.3 million lottery tickets are sold in Moldova daily.
Challenges anticipated in 2022: Promotion of systemic reforms with limited financial and human resources
The promotion of systemic reforms with limited financial and human resources is expected to be one of the major economic and social challenges of 2022, says a report by the Independent Think Tank “Expert-Grup” signed by Adrian Lupușor. The risks related to poverty amid the inflationary trends, in parallel with the slowdown in economic growth against the rapid growth of 2021, are another expected challenge.
Inflation in 2022 is projected to exceed 15% and will affect primarily the families with low incomes. “This will exert pressure on the social protection system and will stimulate economic and social inequalities,” runs the report. Furthermore, the rapid economic recovery in 2021 wasn’t based on a new development paradigm, being accompanied by the expansion of the macroeconomic deficit triangle that consists of the trade deficit, current account deficit and budget deficit. Given the high comparison basis, the economic growth in 2022 will be slower. The gas supply crisis can recur owing to the difficult energy agenda with the Russian side. Also, the new COVID-19 wave associated with Omicron risks endangering the sanitary situation and affecting the economic activity and social situation.
The accurate implementation of the Third Energy Package, interconnection of the national electricity networks with those of Ukraine and Romania and improvement of energy efficiency are among the main challenges of 2022 that will be inherited from 2021.
Among the most important positive economic and social results of 2021 are the rapid economic recovery after the recession of 2020, which enabled to increase the amounts collected as taxes and to strengthen the budget, solving of the gas supply crisis and establishment of a more predictable framework in the energy dialogue width the Russian Federation and Gazprom.
The report author also noted the stimulation of the social agenda in response to the gas and pandemic crises and the population’s expectations following the expanding poverty after the crisis of 2020. In particular, the minimum pension was raised to 2,000 lei, the mechanism for subsidizing the higher natural gas rates was developed during a record period of time and a package of support measures during the pandemic was worked out. Also, the stability of the national currency was ensured and the country’s foreign exchange reserves were strengthened.
“The main negative economic and social trends and events of 2021 include the higher inflationary pressure with repercussions for families with low incomes, planning of a too big budget deficit against the economic situation and the risks for 2022, worsening of the quality of the decision-making process (introduction of a number of bills without sufficient consultations), postponement or non-initiation of reforms of major importance, such as the territorial-administrative reform, local financial decentralization or reform of the central public administration, and the reduced functionality of particular public institutions,” says the report.
Moldovans in 2021 had an average salary of about 9,200 lei, expert
The Moldovans in 2021 had an average gross salary of about 9,200 lei, an increase of 15.8% or 1,300 lei compared with 2020. But the country in 2021 witnessed the highest inflation rate in the last 18 years. This way, even if the salaries increased, the Moldovans could not feel the positive effects, said Veaceslav Ioniță, economic policy expert of the Institute for Development and Social Initiatives “Viitorul”.
Some 10% of the salary earners or 60,000 Moldovans in 2021 had an average monthly salary of 25,000 lei, up 4,000 lei on 2020. Also, another 10% of the salary earners or 60,000 Moldovans had an average monthly salary of 2,890 lei (+270 lei), being the worst paid.
“The ratio was practically kept during the last ten years. The poor people get a pay that is 8-9 times lower than the pays of the rich ones,” said the expert, being quoted by IPN.
Comparing the salaries of Moldovans on the left side and on the right side of the Nistru, Veaceslav Ioniță said the salary of those from the left side in 2010-2015 was even higher than that of those from the right side. On the right side, it was of slightly over 4,000 lei, while on the right side of 6,400 lei. The depreciation of currency on the left side of the Nisru, the decline in exports, the nominal decline in salary followed and, in 2018, the real salary of the Moldovans on the left side of the Nistru decreased to 4,400 lei at a time when it grew on the right side.
“We anticipate that the average official salary on the right side of the Nistru in 2021 will be 9,200 lei, while on the left side will be 6,100 lei. The salary was calculated in Moldovan lei, taking the currency exchange rate into account. The parity of the purchasing power of a leu on the left side of the Nistru is yet higher. There, the prices of gas, electricity and some of the products are lower than in the rest of the Republic of Moldova. In the Transnistrian region, one can purchase by 20% more on average,” said the expert.
The basic incomes of the Moldovans consist not only of salaries. Some perform agricultural activities that generate incomes, while others get remittances. There were also unofficial incomes. In the Republic of Moldova, the number of working persons is of 1.1 million, while of salary earners – 600,000 full-time jobs and 100,000 part-time jobs. There are also 400,000 people working not in the formal sector. “Therefore, the population’s incomes are higher than their earnings,” noted Veaceslav Ioniță.
● TUESDAY, January 4
Ships laden with Moldovan corn free to leave Turkish ports
Four ships laden with Moldovan corn that were stuck in Turkish ports have been given permission to leave following bilateral negotiations, the Moldovan Ministry of Agriculture and Food Industry announced.
During a joint meeting, a representative of Turkey’s plant health agency confirmed the release of the Moldovan cargo. While expressing willingness to cooperate and identify solutions, the Turkish authorities reiterated the need to comply with national and international food safety standards.
The four ships carrying about 25,000 metric tons of Moldovan corn were restrained in Turkish ports over non-compliant shipping papers. In November 2021, Turkey updated its rules, and the Moldovan authorities apparently failed to take note.
● WEDNESDAY, January 5
Over half of exports from Transnistrian region go to EU
About 2,250 business entities operating in the Transnistrian region were registered in accordance with the legislation of the Republic of Moldova. The European Union is the most popular export destination for companies from the left side of the Nistru. In 2021, exports to the EU represented 57.2%, up from 56.6% in 2020. Most of the goods imported into the region are also from the EU member states (42%).
With reference to the Public Services Agency, the Reintegration Policies Bureau said that 1,754 of all the entrepreneurs operating on the left side of the Nistru were registered on a temporary basis, while the others - on a permanent basis.
According to the State Tax Service, 39 valid patents of citizens living on the left side of the Nistru and in the Bender municipality were registered in the information systems of the Republic of Moldova by December 15, 2021. Most of the patents referred to retail trade, hairdressing and cosmetic services, etc.
The Reintegration Policies Bureau said the positive approach and the provision of different stimuli by Chisinau, together with the concessions provided by the EU, encouraged a higher number of business entities of the region to register legally. Besides, the Transnistrian entrepreneurs benefit from multiple thematic training courses, assistance programs and informative events from the responsible authorities of the Republic of Moldova and the foreign partners, being this way helped to integrate into the common commercial and economic area.
Termoelectrica launches official website and platform intended for consumers
The joint stock company Termoelectrica modernized its website www.termoelectrica.md and launched a new online platform dedicated to consumers - www.consumator.termoelectrica.md. “The company aims to become much more transparent and open to the public by simplifying access to information so that the people enjoy more communication, assistance and interaction instruments, including directly on the website,” says a press release that is quoted by IPN.
“We set the goal of becoming much more open, transparent and accessible. We are a state-run company that provides services of major public interest. That’s why the ensuring of the principle of transparency and efficient communication based on accessibility of information and openness is among the most important objectives in our activity,” said Termoelectrica SA director general Vasile Leu.
Through the new platform, consumers can transmit suggestions, can file applications based on the contact form, can access the divisions Pay online; My account; Contact us, contact data of housing sector managers and information about the works planned to be carried out in the immediate period.
Also, on www.termoelectrica.md and www.consumator.termoelectrica.md, the consumers will find responses to the most frequent questions and information about the modernization of the heating system or about ongoing projects.
“The platform www.consumator.termoelectrica.md brings into focus essential information that is of major interest to the company’s consumers, while the official website www.termoelectrica.md contains information of general public interest,” runs the press release.
Andrei Spînu: Average pay in constriction sector up 3,402 lei
As from today, the average salary in the building sector will be 14,359 lei, 3,402 lei up on 2021. The minimum pay was set at 5,000 lei, regardless of the affiliation to employer associations and/or trade unions. Earlier, this was 3,815 lei. The information was made public by Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development.
On his Telegram channel, Andrei Spînu wrote that in this regard, he signed an agreement to amend the Collective Convention for the Constriction Industry for 2018-2022 with the social partners.
Pavel Caba, president of the Employers’ Federation of Builders, Road Workers and Manufacturers of Building Materials “Condrumat”, has told IPN that owing to the exodus of labor force from the Republic of Moldova, some of the building companies face a shortage of qualified workers as many of these work in the Russian Federation, the European Union and Israel. “We must arouse the interest of workers from the construction sector and increase their salary, the social package so that the given workplaces are attractive,” stated Pavel Caba, commenting on the signed agreement.
2022/01/05/17:41/ Agreement on building of water supply systems with Moldova approved in Bucharest
The Government of Romania approved the Agreement with the Republic of Moldova on the regulation of the building of water pipelines under the Prut for supplying drinking water from Iasi County to the districts of Nisporeni, Ungheni, Glodeni and Fălești. The proposal was approved on January 5 at the suggestion of the Ministry of Environment, Water and Forests, IPN reports, quoting a press release.
Minister Barna Tanczos said the agreement represents the legal basis for building water supply systems across the border. When the agreement takes effect, the location of the water pipeline between Romania’s Ungheni and Moldova’s Ungheni will be decided by the intergovernmental Hydrotechnical Commission.
Investments will be made from the budget of SC “Apavital” SA. At the first stage, there will be built a water pipeline under the Prut, between Măcărești (Romania) - Măcărești (Republic of Moldova), which is intended for citizens from 13 localities of the districts of Ungheni and Nisporeni, which have a population of about 30,000. The technical and financing project is in place.
At least four towns in the Republic of Moldova - Glodeni, Nisporeni, Ungheni and Fălești – and about 100 communes with a population of about 250,000 people could be supplied with drinking water during the next few years.
● THURSDAY, January 6
Warning about discharge of wastewater with increased concentrations of pollutants
The laboratory of “Apă-Canal Chișinău” determined that the wastewater that reaches the municipal wastewater treatment station significantly exceeds the maximum allowable concentrations of pollutants. The water supplier warns business entities that they risk being disconnected from the drinking water supply and sewerage systems.
In accordance with the current regulations, the consumers, others than the domestic ones, are obliged to pre-treat wastewater. When wastewater is discharged into the public sewerage system, the admissible values of the quality parameters and indicators should be met. These are stipulated in the notice of connection to the system and in the wastewater collection agreement that is attached to the contract for the provision of water supply and sewerage services.
As of January 1, 2022, additional payments are calculated for each pollutant or quality indicator that exceeds the admissible value and for each manhole stipulated in the wastewater collection agreement or the contract for the provision of water supply and sewerage services.
“If the maximum admissible concentrations of pollutants are considerably exceeded, the water supplier will continue to warn the business entities about the prohibition on the discharge of wastewater in the public sewage systems and, if need be, will ask the responsible institutions to take the required measures,” “Apă-Canal Chișinău” noted in a press release.
