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ECO-BUS WEEKLY DIGEST April 10-15. Most important Economy & Business news by IPN


https://www.ipn.md/en/eco-bus-weekly-digest-april-10-15-most-important-economy-business-news-by-ipn-7966_1034002.html

● MONDAY, April 10

Agriculture Ministry encourages animal owners to create family farms

To reinvigorate the animal-breeding sector, the Ministry of Agriculture and Food Industry aims to encourage animal owners to create family farms. In this regard, a strategy for the animal-breeding sector will be worked out, with appropriate mechanisms and means for supporting the sector. In Moldova, only 13% of the internal demand for beef is satisfied by national producers. In the case of poultry and pork, this figure stands at up to 64%. There is no domestic animal products sector where national producers would fully meet the demand. The collapse in the animal- breeding sector occurred following amendments made to the animal keeping system, Tatiana Nistorica, head of the Animal Products Quality Regulation and Policies Division of the Ministry of Agriculture and Food Industry. Tatiana Nistorica also said that the new farms will meet the European standards. Money will be allocated this year from the Subsidization Fund for building and outfitting these.

● TUESDAY, April 11

Results of DCFTA after two years of implementation

In 2016, Moldova’s exports saw an upward trend. Romania remained the most important trading partner of Moldova, followed by Italy and Germany. The effects of the Deep and Comprehensive Free Trade Agreement (DCFTA) on national producers two years after its implementation were analyzed by the independent think tank “Expert-Grup”, which launched a study with the most relevant data about Moldova’s exports to the EU. “Expert-Grup” executive director Adrian Lupusor said the impact of the DCFTA witnessed so far is not univocal. There are tendencies that gladden and others that cause concern and there are signals for the authorities to stimulate reforms and reduce the side effects of the liberalization of trade with the EU. Octavian Berzan, Head of the European Economic Policy and DCFTA Coordination Division of the Ministry of Economy, said the authorities intend to negotiate higher export quotas for grains and ethyl alcohol with the European side as these are used during the first two-three months of the year.

Czech company obliged to hasten repair works on Chisinau-Ungheni-Sculeni road

The restoration of the R1 Chisinau-Ungheni-Sculeni, between the 24th and 68th kilometers, must be ready by the end of this October. Such a provision is contained in the new plan of action for accelerating the works performed by the Czech company OHL ZS. According to the Ministry of Transport and Road Infrastructure, the Czech company allowed significant delays in implementing the contract and was thus penalized. The deputy chairman of the Administration Board of OHL ZS refused to sign the new plan of action, arguing he is empowered to sign only if the beneficiary accepts to sign an additional agreement to the contract, by which the delay penalties will be annulled. The contract for the rehabilitation of the R1 Chisinau-Unghen-Sculeni section was signed with OHL ZS in 2014. The works were to be completed on July 29, 2016. The value of the contract is of about €28 million.

● WEDNESDAY, April 12

Moldova to get €100m from EU to meet short-term financing needs

The Government created a group led by Minister of Finance Octavian Armasu to hold negotiations with the European Commission on the draft Financing Agreement between the Republic of Moldova and the European Union on macro-financial assistance (MFA). The €100 million in macro-financial assistance would help the country meet its short-term financing needs. The loan is repayable in 15 years, while the interest rate for each tranche will be set depending on the cost at which the European Commission will borrow money from the international financial market. MFA would help Moldova to cover part of its external financing needs over the coming two years. The operation would therefore contribute to reducing the economy’s short-term balance of payments and fiscal vulnerabilities. Also, the Government’s commitment to do reforms would be strengthened.

Teachers go on strike

Teachers go on strike and will not teach classes on April 28 in protest at the fact that the authorities refuse to increase their salaries up to the demanded level. Chairman of the Education and Science Trade Unions Federation Dumitru Ivanov, in a news conference on April 12, said the decision to go in strike was taken after the last round of negotiations held with representatives of the Government on April 11. The Government proposes a 5% increase in salaries in the education system as of September 1 this year. The teachers demanded that their pays should be raised by 50%, but then agreed to a 30% increase as of January 1 this year. Most of the teachers support the trade union’s decision to suspend the teaching process, while those who disagree will teach classes on April 28. The teachers have so far mounted a number of protests. Recently, the Government decided to increase the salaries of employees of pre-university, higher and post-university education institutions as of May 1, but the teachers are not satisfied with the announced rise.

150 workers involved in construction of runway

The construction works on the second runway at the Chisinau International Airport are underway. The decision to build the second runway was taken with the aim of not restricting air traffic at the airport. The new runway will be 2,400 meters in length and 45 meters in width and flights on it will be operated nonstop. Thus, while the main runway (3,590 m) will be under reconstruction, aircraft will use the newly built airstrip. According to a press release of the company, embankment, soil stabilization and concrete laying works are now performed. These involve 150 workers and 50 units of equipment. The concrete is produced by Strabag Grup. The works cover an area of 100,000 square meters that includes the second runway, the platform, etc. These are fully renewed. Currently, repair and reconstruction works are simultaneously performed in a number of directions and these cover both the terminal and the airdrome.

IFAD to offer over US $23m for Moldova’s agriculture

The International Fund for Agricultural Development (IFAD) will financially support the farmers vulnerable to climate change, the small and medium-sized businesses and young and female entrepreneurs of Moldova. In this regard, Deputy Minister of Agriculture and Food Industry Iurie Usurelu and IFAD President Gilbert F. Houngb signed a financing agreement for implementing the Rural Economic and Climate Resilience Program (IFAD VII) in Rome on April 11. The IFAD assistance consists of US$18.2 million lending sources, US 500,000 worth of grants and US$5 million in an additional grant provided through the IFAD Small-Scale Agricultural Development Project, IPN has learned from the Ministry of Agriculture and Food Industry. Starting with 2000, IFAD has offered Moldova about US$109 million through its programs, providing support to over 134,000 beneficiaries.

● THURSDAY, April 13

Moldova recommended to work out Customs Code by European model

The Republic of Moldova should work out a new Customs Code according to the standards of the European one. It is one of the recommendations of the United Nations Economic Commission for Europe, which this week presented a report on the regulatory and procedural barriers in the trade with Moldova in Geneva. According to the Ministry of Economy, the authorities should yet implement a series of projects to ensure transparency, such as to create a portal for trade regulation. They should also improve the quality infrastructure by adjusting the standardization, metrology and compliance assessment processes to the new requirements. Moldova is recommended to improve the standards in agriculture, the sanitary and phytosanitary measures and to simplify customs procedures.

Farmers can apply for grants of up to US$350,000 within program

The Agriculture Competitiveness Project, in concert with the Ministry of Agriculture and Food Industry and the Agency for Intervention and Payments in Agriculture (AIPA), launched the fifth call for applications for participation in the investment grants program “Enhancing market access potential”. The grants are intended for groups of producers working in the horticultural sector. Applications can be submitted to the local offices of the AIPA by May 19, 2017. The groups of producers should consist of at least five members - private individuals or legal entities with individual activity of at least three years in horticulture. These can get grants of up to US$350,000, but not more than 50% of the eligible costs. The rest is the group’s investment. A number of 30 groups of producers have been financed within the investment grants program until now. The total value of the grants provided during the four previous rounds of the project is US$ 7.5 million, while the co-financing of the groups of producers came to US$8.6 million. The project is financed by the World Bank, the Government of Sweden and the Global Environment Facility in partnership with the Ministry of Agriculture and Food Industry.

● FRIDAY, April 14

Fujikura cable maker creates 1,200 jobs in Moldova

The cables factory Fujikura Automotive MLD, opened by the Japanese concern Fujikura on the territory of the Expo Business Chisinau free economic zone, will provide 1,200 jobs that meet the international standards and will end up hiring 3,000 people in 2020. Taking part in the factory opening ceremony, Prime Minister Pavel Filip said the investments made in the Republic of Moldova enable the Government to raise salaries, pensions and social welfare and to thus improve the living standards of the people. Masahiko Ito, Chief Executive Officer and President of Fujikura Ltd., said the company found a suitable destiantion for extending its business in Moldova. The Japanese auto cable and wiring manufacturer Fujikura employs over 54,000 people worldwide. Founded in 1885 with headquarters in Tokyo, the group has subdivisions operating in a number of states.

● SATURDAY, April 15

Food marking method to be adjusted to EU standards

The method of marking food products in the Republic of Moldova will be adjusted to the EU standards. Vice director general of the National Food Safety Agency Ion Toma has told IPN that the European legislation envisions only the indication of the use-by date of a food product, not yet the production date. Such a bill, which envisions the harmonization of the national legislation with the European one, was endorsed by all the competent bodies in the field and is to be submitted to Parliament for adoption. Ion Toma added that the Agency received a complaint from a consumer, who said that the milk products made by a national producer no longer contain the production date, but only the use-by date. The Agency will examine all the circumstances to establish why the producer resorted to such a marking method. Currently, the national legislation obliges the producers to indicate the production date and the use-by date on the products. Those who do not comply are liable to punishment. These are issued with prescriptions and risk losing the authorization if they do not remove the irregularities.