● TUESDAY, April 29
Japan will support nationwide irrigation project in Moldova
A nationwide project with Japanese assistance will be launched in Moldova to create an irrigation system that will work based on solar and wind energy. According to Constantin Rotaru, communication adviser to the agriculture minister, details about the launch of the project were discussed in a meeting with the new Director General of the Europe Department of the Japan International Cooperation Agency Yamanaka Shinichi.
Lack of jobs makes Moldovans change home
The lack of well-paid jobs is the main cause why the Moldovans decide to leave Moldova for good, says the quarterly publication of the National Institute for Economic Research “Trends in Moldova’s economy”. As many as 2,585 people went to settle abroad last year. According to data of the ICT Ministry, to which the publication makes reference, most of the persons left for Russia and Ukraine – 1,054 and 684 respectively. The largest part of the migrants, both men and women, are aged between 20 and 49. The authors of the publication say that inside the country the people also change the place of residence. A number of 36,700 people changed their domicile in 2013.
Guarantee line for European companies that will invest in Moldova
The Romanian Ministry of Finance will open a guarantee line of almost €250 million for the large European companies present in Romania and for Romanian businesses that will want to invest in Moldova and to create jobs. The announcement was made by Romanian Prime Minister Victor Ponta in a meeting with his Moldovan counteract Iurie Leanca in Sculeni on April 29. Victor Ponta said that many representatives of European firms inquire about Moldova’s European prospects because they want to invest here, but want their investments to be safe. Each of the steps taken by Moldova towards the EU is a door opened for European investments.
● WEDNESDAY, April 30
Creditors of Eventis Mobile say company is liquidated with Europeans’ money
The creditors of Eventis Mobile said the money allocated by the Europeans for the justice reform is used to deprive Eventis Mobile of its business assessed at millions of dollars. In a news conference, the creditors said the justice reform is a myth until the scourge of corruption and bureaucracy is not eliminated and until the principle of equality before the law is not respected. Lawyer for Eventis Mobile Andrei Iosip said that the company has been the victim of an attack by government functionaries and judges for three years and a half. All the assertions by the EU and the U.S. about the justice reform didn’t have a beneficial influence on the situation of Eventis Mobile SRL and didn’t contribute to defending the rights and interests of the about 300 creditors. Moreover, namely when they highlight the necessity and efficiency of the reform and the involvement of the foreign states in this reform, abuses are committed against the company, most of which remain unpunished.
Ilan Shor elected as president of Banca de Economii Board
Businessman Ilan Shor was chosen as president of the Board of Banca de Economii (Savings Bank) by a unanimous vote in the April 30 meeting of the bank’s Board. According to a communiqué from the bank, Ivan Ursu was named as vice president of the Board. Constantin Paladi was appointed as vice president of Banca de Economii, with the subsequent approval of the National Bank of Moldova.
IMF forecast for 2014: Moldova’s economy will grow by over 2%
The experts of the International Monetary Fund (IMF) who had been in Moldova on a visit on April 22-30 established that the Moldovan economy strongly recovered from the drought-related contraction of 2012, but activity will significantly slow down in 2014 and considerable risks exist. The IMF forecasts a growth rate of over 2% for 2014. The experts communicated their conclusions in a meeting with Prime Minister Iurie Leanca on April 30. According to a communiqué from the Government, the head of the IMF mission Max Alier approved of the maintaining of the target inflation, the significant reduction in the budget deficit, the keeping of the public debt at an appropriate level and the existence of reserves of protection against possible external shocks. He underlined the importance of continuing the reforms so as to ensure macroeconomic stability. “The implementation of the structural reforms, in accordance with the objectives set in the National Development Strategy, is crucial for supporting the economic growth,” said Max Alier.
● THURSDAY, May 1
Construction workers will have own indemnity fund
About 60,000 employees from the construction and road sectors, who work legally, for the period out of work will receive an indemnity of 75% of the gross basic salary for the last three months without losing salary earners’ rights. Such a legislative initiative was put forward by the Ministry of Regional Development and Construction. It suggested creating the Social House of Builders that would protect the salary earners when their work is suspended following unfavorable weather conditions, natural disasters or economic-financial crises. The legislative initiative provides for the creation of a special indemnity fund that wok include companies’ mandatory contribution of 1% of their production. The compulsory contribution of salary earners will be 1% of the gross monthly salary, while the mandatory contribution of all investors and owners will be 0.5% of the value of the construction-assembly works.
● FRIDAY, May 2
IMF recommends improving regulatory framework in financial sector
Key risks to the near-term outlook relate to serious vulnerabilities and governance issues in the banking sector. Significant weaknesses in the legal and regulatory frameworks must be urgently addressed to ensure stability and soundness of the financial sector, said the IMF mission that had been in Moldova on April 22-30. In a press release, the IMF says the government, the National Bank of Moldova (NBM) and the National Commission for Financial Markets (NCFM) should cooperate closely in this endeavor. The government needs to prepare draft legislation that strikes a balance between ensuring the effectiveness of the NBM and NCFM as regulators, supervisors, and resolution authority and the judicial review of their decisions.
IMF highlights factors for maintaining macroeconomic stability in Moldova
Fiscal policy should be geared towards a gradual reduction of the budget deficit to a level compatible with the official assistance available over the medium term. This is one of the recommendations of the IMF mission that had been in Moldova on April 22-30. “The projected increase in the budget deficit in 2014 (2½ percent of GDP) represents a step in the opposite direction. While the deficit could be allowed to widen in the near term to accommodate revenue shortfalls stemming from weaker economic activity, the expenditure envelope envisaged in the 2014 budget should be maintained. In particular, pressures to grant ad hoc tax benefits and to increase salaries and pensions must be resisted even if one-off revenues materialize,” it is said in the concluding statement for the 2014 Article IV consultation mission.
Budget deficit of over 450m lei in first quarter
The fulfillment of the state budget in the first quarter of this year resulted in a deficit of 459.9 million lei. The revenues totaled 5.15 billion lei, while the expenditure – 5.61 billion lei. According to a communiqué from the Ministry of Finance, compared with the same period last year, the state budget incomes rose by 15.3%. The basic incomes amounted to 4.68 billion lei, up 14.1%, while the incomes from the special means of budget-funded public institutions came to 37.5 million lei, an increase of 23.3%.
