● TUESDAY, April 24
Stefan Voda student opens agribusiness with EU support
A student from Tudora village of Stefan Voda distcrit started a business in agriculture with European funds. The young man bought a modern tractor by which he cultivates tens of hectares of farmland each spring and autumn. Villagers ask for his services whenever they need mechanized works in the field or in the orchard.With the money obtained from the EU, he bought a tractor and founded a firm with three employees. Dorin Tapu is one of the over 70 young people from both sides of the Nistru River who received European grants of up to €13,500 for starting or developing a business.
Transnistrian motor vehicles will be accepted into international traffic
Chisinau and Tiraspol reached a consensus as regards the mechanism for accepting motor vehicles registered in the Transnistrian region into international traffic. Under the proposed mechanism, Moldova will have three motor vehicle registration regimes. Expert of the independent analytical center “Expert-Grup” Sergiu Gaibu said that by this agreement the Republic of Moldova takes a big step backward as a sovereign state. The standard mechanism with Moldovan license numbers is the only one from which the citizens from the right bank of the Nistru will benefit. There is also the regime of Transnistrian license numbers with which one can travel freely on the right bank of the Nistru. “The third is a hybrid regime of neutral numbers with which the Transnistrians can travel abroad and which will not include symbols of the Republic of Moldova. But the old registration version wasn’t eliminated,” stated Sergiu Gaibu.
Changes proposed to law on entrepreneurship and enterprises
The Ministry of Economy and Infrastructure, by a draft law that was proposed for public debates, suggests excluding the phrases “license-free activities” and “fine equal to the gross revenue” from Article 10, point 4 of the Law on Entrepreneurship and Enterprises. The given legislative initiative derives from a decision by the Constitutional Court, which ruled that the punishment of the entrepreneurial activity without a license is regulated by a number of articles of the Contravention Code and the parallel regulation does nothing but cause confusion and double interpretations. The Constitutional Court also ruled that the imposition of a fine in the absolute amount (equal to the gross revenue) prevents the court from individualizing the penalty, reducing the procedure to a simple formality. The Ministry of Economy and Infrastructure also proposes striking the Public Services Agency off the list of institutions that can impose penalties on enterprises and organizations as the Agency is not an inspection body.
● WEDNESDAY, April 25
Electoral race can turn into major constraint for economy, experts
The electoral race entered by the Republic of Moldova this year can turn into a major constraint for the national economy during the next few years. At the same time, the modest growth rates with which the Moldovan economy meets the future electoral years will fuel a series of long-term economic risks, hampering further the convergence with the countries of Central and Eastern Europe. Such conclusions were formulated by experts of the independent think tank “Expert-Grup”, who estimated that in such conditions the economic growth this year will be of about 5%, IPN reports, quoting a press release of the organization. “Expert-Grup” executive director Adrian Lupusor said the analysis of the economic growth risks in the past few years showed the Moldovan economy stabilized around an unfavorable balance marked by low growth rates. Population aging and insufficiency of private capital will obstruct the sustainable recovery of the national economy when the GDP follows a downward trend.
National Bank will have new remuneration regulations
The National Bank of Moldova will have new remuneration regulations. When presenting the report of the Bank’s Supervisory Board in a meeting of the expert parliamentary commission, central bank governor Sergiu Cioclea said the new regulations will be worked out on the recommendation of the Audit Committee. According to the governor, the salary at the National Bank should be equal to the market pay grades or to the pay of employees of commercial banks or the best specialists will defect from the Bank to the private sector. About 40 employees left earlier and five more so far this year. Sergiu Cioclea noted the appropriate size of the salary will be determined based on a study that will be carried out by an independent company with experience in the field. This will use the relevant data from 26 countries where such studies were conducted.
Working group to focus on activity based on patent
A working group will additionally consider the possibility of extending the period during which the entrepreneurs will be able to work based on patent. The decision was taken after a group of Socialist MPs presented a bill to extend this period for small traders until the end of 2022 in the meeting of the Parliament’s committee on economy, budget and finance. The Socialist MPs argued that the period should be extended because the Ministry of Economy hasn’t up with a new method of activity that would be approved by the small entrepreneurs, while the entrepreneur’s patent is one of the simplest method of working legally and earning incomes. After examining the legislative initiative, it was decided to set up a working group consisting of MPs and representatives of patent holders and small businesses, who will additionally analyze the problem and will suggest solutions.
Over 2,000 entrepreneurs to be trained to improve skills annually
A new plan for implementing the strategy for developing the sector of small and medium-sized enterprises for 2018-2020 was agreed by the Cabinet on April 25. The document provides that 2,500 entrepreneurs, 200 of whom migrants or relatives of the first degree of these, will be trained to develop their entrepreneurial skills. The Government will also support women in business. Each year, 100 new businesses started by women will be funded with small grants, while another ten businesses with export potential – with grants for large investments. The measures will enable to create 20 jobs annually.The entrepreneurs will benefit from financial guarantees for starting and developing businesses. This year, the SMEs will have access to 197 financial guarantees.
Beekeepers receive vertical beehives as a gift to increase productivity
About 30 Moldovan beekeepers received by 80 vertical beehives that enable to increase the quantity and quality of produced honey. These were purchased within the USAID High Value Agriculture Project in Moldova that is financed by the U.S. The vertical beehives were provided in a move to give an example to other honey producers. International experience shows the use of vertical beehives enables to extend the business by increasing the number of bee families and the quantity and quality of produced honey. In the event, it was announced that 400 beekeepers will be trained to efficiently manage vertical hives. According to statistics, there are about 6,000 beepers in Moldova. These manage about 200,000 bee families. Almost 5,000 tonnes of honey were produced in Moldova in 2017 and 85% of these were exported to Romania, Italy, France, Germany, Spain and other states.
● THURSDAY, April 26
Salary in real sector of economy to grow
The minimum guaranteed official salary in the real sector of the economy will be higher as of May 1 this year following a relevant decision approved by the Government.Thus, a working hour in the real sector will cost 15.44 lei, as opposed 14.09 lei at present. For a complete working program of about 160 hours a month, the salary will be 2,610 lei, by 230 lei higher than at present. Thus, the employers in the real sector will not be able to pay to employees a salary lower than the minimum guaranteed official one. Currently, the minimum guaranteed official salary in the real sector is 2,380 lei a month.
Schedule of state inspections at business entities approved
The resident companies of the industrial parks “Raut”, “Edinet” and “Tracom” will be subject to state inspections. The Cabinet approved the schedule of inspections at resident companies of industrial parks for the second half of this year. Thus, following the assessment of the risks of the 63 business entities based in industrial parks, the State Tax Service requested to conduct a post-clearance audit at two companies: the joint enterprise “Electromanufacturing” of the industrial park “Raut” and “T.B. Fruit” of “Edinet”. Also, the State Tax Service asked to examine the activity of two business entities: the same company “T.B. Fruit” and “Baobab” of the industrial park “Tracom”.
With ten annual salaries one can buy an apartment in Moldova, expert
A number of 30.6 annual average salaries were needed in 2008 to purchase a comfortable apartment of 70 m2, but this year the indicator stands at 10.2 annual average pays. Economic expert Veaceslav Ionta on his blog wrote that the reduction is due to the decline in the price of apartments and to the rise in the average official salary. “The price of apartments started to decrease from the highest level of 900 euro/m2 in 2008 to the lowest level of 523 euro/m2 in the second quarter of 2017,” said Veaceslav Ionita. In the developed European countries, one needs five-seven annual average salaries to buy an apartment of 70 m2.
Dubasari farmers get farmland access certificates
The farmers in Dubasari district, who earlier could cultivate the farmland located beyond the Rybnitsa-Tiraspol road, received today the first certificates that enable access to their farmland. These certificates guarantee the right to cultivate 400 hectares of the total area of 6,300 hectares situated on the left side of the Nistru. In the immediate period, similar documents will be issued for the rest of the land. The owners haven’t had access to the given farmland since 2014. The farmland situated beyond the Rybnitsa-Tiraspol road is owned by over 5,500 persons from Cocieri, Cosnita, Dorotcaia, Molovata Noua and Parata.
National Bank governor: Victoriabank and Moldova-Agroindbank are under intensive supervision
The commercial banks Victoriabank and Moldova Agroindbank were placed under intensive supervision by the National Bank following the identification of shareholder non-transparency and involvement in risky lending operations indexes. Speaking abut the situation of the bank under liquidation, National Bank vice governor Cristina Harea said since the licenses were withdrawn from Banca de Economii, Banca Sociala and Unibank until the end of March, there was collected a sum of 1.048 billion lei. Banca de Economii accounts for 45% of the collected amounts, Banca Sociala for 42%, while Unibank for 13%. 78% of the total amounts were accumulated from loans repaid voluntarily and by force.
● FRIDAY, April 27
Four education institutions in Cantemir to be thermally rehabilitated with EU support
The buildings of two schools and two kindergartens in Cantemir town will be thermally rehabilitated within a project financed by the European Union as part of the EU4Energy initiative. The works will be launched this year and will last until 2020. The project will cover the Secondary School “Mihai Eminescu”, the Lyceum “Dmitrie Cantemir” and Kindergartens No. 1 and No. 2. The EU’s contribution is of over €674,000, while the local community will contribute more than €168,000. The Energy Efficiency Fund will support the local public administration by partially covering the own contribution needed for implementing the project.
Energy experts say illegalities were committed at Red Union Fenosa under Silvia Radu’s management
Energy experts Sergiu Tofilat and Tudor Soitu said the National Agency for Energy Regulation keeps secret a report on an inspection carried out in 2013 at Red Union Fenosa, currently Gas Natural Fenosa, which reveals serious irregularities at the company in the period when this was managed by Silvia Radu. Sergiu Tofilat said the violations refer to the fact that Red Union Fenosa transferred almost 170 million lei to a company where Silvia Radu was listed as founder and manager. In 2000-2006, Red Union Fenosa paid 139 million lei to the company for consultancy services and for the maintenance of the information systems, while in 2008-2012 she paid another 30 million lei. Sergiu Tofilat said the same report shows Red Union Fenosa benefited from loans from the EBRD and the International Finance Corporation, which is a subdivision of the Word Bank, at interest rates of 4%. Later, she borrowed US$ 5 million from a company affiliated to the Fenosa holding at a rate of 15.5%.
SATURDAY, April 28
Road bypassing Cahul opened after rehabilitation
Ivan Spirin St of Cahul municipality, which is considered the town’s belt road and is 2.6 km long, was rehabilitated and modernized in accordance with the international standards. This ensures connection between the national roads R34, M3 and R38. Connection is also ensured between the towns of Cahul, Taraclia, Vulcanesti and villages of these districts. Minister of Agriculture, Regional Development and Environment Liviu Volconovici said the repaired road section will have a positive impact on the inhabitants of Cahul town and the districts of Taraclia and Vulcanesti, which will have access to the national road. The opening of the road is also good news for the drivers who travel daily through the Cahul-Oancea customs post. The road section was rehabilitated within a regional development project launched in 2014. The costs amounted to about 37 million lei. The money was allocated from the National Regional Development Fund.
