● TUESDAY, April 14
Social costs represent over 65% of 2015 national public budget
More than 65% of the expenditure of the 2015 national public budget are intended for the social sphere, which is the same level as in 2014. The social costs represent 27.6% of the budget expenditure, an increase of 1.5% on 2014. The largest part of the social costs will go on education, for continuing the reforms initiated in this sector and for optimizing the use of resources in the future. The reform perspectives are described in the medium- and long-term sector strategies.The economic costs will represent 17.1% of the total expenditure of the national public budget (-0.1%), which is 7.25% of the GDP, an increase of 0.4% on last year. The resources earmarked for agriculture, the forestry sector and water management sector rose from 2.04 billion lei in 2014 to 2.6 billion lei in 2015. In industry and the construction sector, the costs increased from 59.6 million lei to 64.4 million lei, while in the fuel and energy sector from 221 million lei to 602 million lei.
Incomes from road taxes assessed at 380m lei
The tax paid by owners of motor vehicles registered in Moldova will be by 50% higher this year, as provided in the 2015 state budget law adopted by the Government by assuming responsibility for it. The goal of the rise is to collect more money for rehabilitating the network of roads. Following the rise and taking into account the number of units of transport for which taxes will be calculated, the incomes from road taxes are projected to total 380 million lei. Of this sum, 295.7 million lei will represent the taxes paid on motor vehicles registered in Moldova for using public roads (50% of the collected amounts are transferred to the budgets of the territorial-administrative units), 60 million lei – the road tolls, 9.1 million lei - the taxes paid on authorizations issued by the authorities for international road transport, while 15.1 million lei – other road taxes.
Central bank suggests bill to liberalize currency operations for discussions
The National Bank of Moldova put forward a bill to amend the Law on Currency Regulation for public debates in connection with the creation of the Free Trade Area with the EU. The bill envisions the liberalization of currency operations that must be authorized by the National Bank (with small exceptions) in the amount of up to €10,000 (or the equivalent in Moldovan lei). If the given amendments are adopted, the banks (resident or nonresident) will have the right to take into or out of Moldova, without the central bank’s authorization, cash in national currency of up to 100,000 lei. The nonresident banks will be able to take into or out of Moldova the equivalent of the same sum in foreign currency. The bill also allows not notifying of loans and guarantees received from nonresidents in the amount of up to €50,000 (or the equivalent). As a safeguarding measure, the bill envisions the banning or limitation of operations to withdraw foreign currency from accounts in foreign currency in case of a system financial crisis.
● WEDNESDAY, April 15
Inflation rate for last 12 months at 7.1%
The inflation rate for the last 12 months was 7.1% in March 2015, up 0.6 percentage points compared with a month before, exceeding the central bank’s inflation target of 5% ±1.5 percentage points. In a communique, the National Bank of Moldova says the poor economic activity in the countries of the Eurozone and the recession in Russia, which are Moldova’s main foreign partners, can lead to a decline in the currency incomes of the population and the national exporters in the short term. This can influence the exchange rate of the national currency against the foreign currencies and, afterward, the rate of inflation. The geopolitical situation in the region can worsen and determine additional inflationist pressure. This March the rate of inflation was by 1.4 percentage points higher than last March.
Alexandru Slusari: Many farmers were intimidated into not taking to the streets
The farmers from 5-6 districts were intimidated by the police and could not take part in the protests mounted on April 15, the chairman of “UniAgroProtect” Union Alexandru Slusari has told. He said the next protest should be staged in the center of Chisinau. Alexandru Slusari noted that almost all the national roads had been blocked for an hour. The protests involved over 2,000 farmers. The next steps of the farmers will be decided in a meeting next week. The chairman of “UniAgroProtect” said he will insist on mounting a large-scale protest in central Chisinau. The farmers demand increasing the agriculture subsidization fund to 1.2 billion lei, unblocking lending in agriculture and reducing the interest rates on loans.
Business community submits proposals for improving business climate
Representatives of business associations presented recommendations for eliminating the constraints on businesses to the authorities. The recommendations were included in a collection compiled by three business associations: AmCham Moldova, the European Business Association, and the Foreign Investors Association. The recommendations refer to the regulatory policies and are aimed at improving the investment climate, decisional transparency and mediation of business conflicts.
● THURSDAY, April 16
Moldova and Austria to intensify bilateral economic cooperation
Moldova and Austria will intensify the bilateral economic cooperation. In a meeting with Minister of Economy Stephane Bride, Austria’s Ambassador in Chisinau Gerhard Reiweger said that Austria wants to strengthen the relations with Moldova, underlining the importance of developing business partnerships between the two countries. The Ministry of Economy said exports to Austria in 2014 rose by 24%. Austria is one of the most important investors in Moldova. The investments in own capital in the third quarter of 2014 totaled over US$60,000.
● FRIDAY, April 17
Regional road Cornesti-Napadeni to be rehabilitated
The regional road Cornesti-Napadeni in Ungheni district, which is about 25 km long, will be rehabilitated within the program to develop local roads that is financially supported by the World Bank. According to the Ministry of Transport and Road Infrastructure, the works will cost about 100 million lei. The repaired road will ensure connection between the villages Cornesti, Poiana, Mircesti, Boghenii Noi, Boghenii Vechi, Sinesti, Drujba, Minzatesti, Hircesti, Condratesti, Napadeni and the villagers’ access to about 30 social institutions, namely schools, nurseries and medical centers.
Cheaper Russian gas for Moldova
Russia’s gas giant “Gazprom” informed SA “Moldovagaz” that the price of the natural gas supplied to Moldova from April 1 will be US$252.5 per 1,000 cubic meters, down US$58. According to a communique of the Ministry of Economy, in the second quarter of this year Moldova will pay for the natural gas imported from Russia by 18% less than in January-March. Under the contract signed by “Gazprom” and “Moldovagaz”, the purchase price of gas is set quarterly, based on a special formula that takes into account the international oil prices during the last nine months of the previous period.
