● MONDAY, August 10
EBRD calls for extraordinary general meeting of Victoriabank shareholders
The European Bank for Reconstruction and Development (EBRD) is calling for an extraordinary general meeting of shareholders of Victoriabank, Moldova’s third largest lender, to elect a new supervisory board and restore corporate governance. In a public letter on August 7, 2015, the EBRD, currently holding a 15.06 per cent-stake, called on other shareholders of the bank to join the request to convene an extraordinary meeting. Under Moldovan legislation, investors representing 25 per cent of shares can call such a meeting. The agenda proposed by the EBRD includes early termination of the powers of the current supervisory board of Victoriabank which has been suspended by a court order since September 2014 and the election of a new board.
Law on Regulation by Licensing to be updated
The name of the kind of activity “motor passenger transport” for which a license is required will be substituted by “transport activity”, based on the amendments to the Law on Regulation by Licensing proposed by the Ministry of Economy. Thus, the given law will be adjusted to the notions of the Road Transport Code. The license form will include a new paragraph saying the ‘copy of the license’ will represent a nominal and non-transferable document of the licensed road transport operator issued to the vehicles used in road transport operations, by indicating the vehicle’s license number. The license for this kind of activity will be issued for a period of eight years. Other amendments refer to the licensing of gaming activity. Sophisticated gaming equipment consisting of two or more machines started to be used over the last few years.
Contest to select companies that will investigate frauds in banking sector
The National Bank of Moldova on August 10 will announce an international tender contest to select a consortium of two companies – an investigation one and a legal one – that will continue the detailed financial investigation into the suspected irregularities and operations performed by Banca de Economii, Banca Sociala and Unibank, Prime Minister Valeriu Strelet announced after the field meeting of the Cabinet. The Premier said that under the plan of action, the second part of the investigation is a more complex one, while the period for selecting the consortium of companies is 30 days. As regards the investigation term, it depends on the companies’ bid. The choice will be made in favor of the most convincing and professional bid.
IMF mission comes to Moldova Sept. 22
A mission of the International Monetary Fund will arrive in Chisinau on September 22. After the August 10 field meeting of the Cabinet, Prime Minister Valeriu Strelet said that a number of measures are to be taken by this date, which was confirmed by the foreign partners, so as to reduce the number of unsolved problems to a minimum. Speaking about the liquidation of the three banks, which is a condition of the foreign partners, the Premier said the process is under way and all the procedures, including the withdrawal of licenses, are to be completed by October 16.
Premier wants more robust presence of EBRD in Moldova’s banking system
A bill submitted to Parliament is designed to annul a number of amendments adopted in April by the assumption of responsibility by the Government. According to Prime Minister Valeriu Strelet, the amendments will be annulled in a move to remove the impediments that blocked the intention of the European Bank for Reconstruction and Development (EBRD) to increase its shareholding in Victoriabank. Such statements were made after the August 10 meeting of the Cabinet. “I hope we will manage to remove this obstacle so that the EBRD could have a more robust presence in Moldova’s banking system,” stated the Premier.
Over 50 contenders to compete in “Moldova Eco-Energetica” contest
More than 50 applications for taking part in this year’s competition “Moldova Eco-Energetica” have been submitted so far. Most of the contenders will compete in the categories “Best Solar Energy Project”, “Bioenergy”, and “Energy Efficiency”. The applications will be examined by independent experts and representatives of state institutions regulating the renewable energy and energy efficiency sector in three stages: assessment in the office; assessment on the spot, and assessment by the Coordination Council and adoption of the final decision. The winners will be awarded at the Moldova Eco-Energetica Gala in Chisinau on December 4.
Agricultural package passed by Parliament will cause losses to state, experts
The state budget will sustain huge losses when the agricultural package that was recently adopted by Parliament starts to be implemented and the farmers will not enjoy great assistance, consider experts of the Institute of European Policy and Reforms. The experts noted that the losses of the state could rise to over 200 million lei during three years. “When the budget incomes decrease, the provision of tax concessions is not justified and the newly created gap in the budget will have to be covered with the assistance of the other citizens,” reads an analytical note of the Institute. Besides promoting a preferential behavior towards a group of economic entries, the introduction of the agricultural loan only in the banking system, not yet in the network of microfinance organizations, shows that the legislative body has a biased attitude to banks, said the experts.
Central bank invites companies to international tender contest over BEM
The National Bank of Moldova sent the requirements to companies invited to the international tender contest to choose companies that will investigate the banking fraud involving Banca de Economii (BEM), Banca Sociala and Unibank. The deadline for presenting bids is September 1. The central bank announced that it invited bids and sent the requirements to specialized international companies for investigating the irregularities and significant transitions that involved the three banks. The final goal of the investigation is to provide the National Bank with clear chronological data about the persons who managed the dubious transactions, who controlled the banks and who benefitted from the investigated transactions, to identity the irregularities and losses in these banks and to work out a strategy for recovering the assets.
● TUESDAY, August 11
Government looking for solutions to Green Card issuing problem
The risk of excluding the National Bureau of Motor Insurers from the Green Card International System was discussed in a meeting of Prime Minister Valeriu Strelet and a delegation of the Council of Bureaux of the Green Card System headed by president Jean Zenners. Valeriu Strelet said the executive will make use of its power to avoid negative developments on the motor insurance market of Moldova. For his part, Jean Zenners reiterated the importance of ensuring the functioning of the National Bureau of Motor Insurers, maintaining it in the Green Card System and overcoming the difficulties that appeared in the insurance system. He underlined that the Council of the Bureaux is ready to provide assistance to the Moldovan authorities in this regard.
Fines of over 800,000 lei for paying salaries ‘in envelope’
In the first half of this year, the State Tax Service, in concert with employees of other competent bodies, carried out searches, on the spot or by using indirect methods and sources for assessing the fiscal obligations, at over 1,200 taxpayers. The goal was to identify the practices of paying salaries ‘in envelope’ or of employing persons without a work contract. According to an official report, there were imposed fines of over 800,000 lei. Most of these were paid. Taxes and other levies to the budget of almost 3 million lei were additionally calculated based on the inspection documents. It was estimated that salaries of over 3.5 million lei were offered ‘in envelope’ without paying income tax and contributions to the health and social insurance funds.
Cardless cash transfers at ATMs become available in Moldova
Moldindconbank in partnership with the global company OpenWay Group launched a cash payment service called WAY4 Cash by Code. This service makes it possible to receive cash money transfers at ATMs without the need for a plastic card. The service works as follows: the sender specifies the transfer amount, the currency and the recipient's mobile telephone number. WAY4 automatically generates a code consisting of two parts: the first is printed on the ATM receipt and the second is delivered by SMS message to the transfer recipient. The cardholder then shares his or her part of the code with the recipient. Having this information, the recipient may withdraw the specified amount at any ATM of the bank. To increase the security the validation period is strictly limited: if the amount is not withdrawn within 24 hours, the money is automatically returned to the sender's card account.
Potato harvest expected to be lower
The potato harvest this year is projected to be by 25-30% lower than last year owing to the high temperatures and shortage of rain. Petru Iliev, chairman of the Association of Potato Producers “SOLANA-M”, has told that the internal needs will be about 90% satisfied. “The early and middle season potatoes yielded better, but the late season potatoes didn’t develop enough,” stated Petru Iliev. In other years, the producers gathered about 400,000 tonnes of potatoes nationwide. This year the potato crop is expected to be of 290,000-300,000 tonnes.
Air Moldova director resigns
Mircea Maleca resigned from the post of director of the national airline Air Moldova. He tendered his resignation to the Ministry of Transport and Road Infrastructure. The information was confirmed by the minister’s consultant Vitalie Rapcea. In his application, Mircea Maleca says that he resigns for personal reasons. His resignation is to be accepted at the August 12 meeting of the Government. Mircea Maleca was named director of Air Moldova in July 2013. Earlier, he held the post of the company’s financial director.
● WEDNESDAY, August 12
ANRE issues license to new electricity supplier
The National Agency for Energy Regulation (ANRE) has issued a license to SA “Furnizarea Energiei Electrice Nord” that was created by reorganizing SA “Retelele Electrice de Distributie Nord” (RED Nord) and SA “Retelele Electrice de Distributie Nord-Vest” (RED Nord-Vest) by separation. According to the ANRE, the new company was founded based on the property of RED Nord and RED Nord-Vest that was transmitted as a result of their reorganization. Following this process, the two companies’ rights and obligations related to the supply of electric power were taken over by “Furnizarea Energiei Electrice Nord”. The license allows the new company to supply electric power at regulated tariffs through the power distribution networks of RED Nord and RED Nord-Vest.
Demand is high, but supply of table grapes is lower than last year
The table grape harvest this year is by about 30% lower on the vineyards that yielded until now. There is yet hope that the new vineyards that yield this year for the first time will partially cover the losses caused by the unfavorable weather conditions. Gheorghe Gaberi, head of the Association of Table Grape Producers and Exporters of Moldova, has told that the table grapes have been affected not only by the drought of the recent past, but also by a specific disease and by the January and April frosts. “In January, when the temperatures dropped from plus 10 to minus 24 degree Celsius, and in April, many vineyards suffered because of the frost. In the southern districts, the harvest is almost twice lower than last year. Furthermore, we also face the disease called mildew. Who didn’t treat the vineyards on time now have a poorer crop,” stated Gheorghe Gaberi. The producers anticipated that the harvest will total about 100,000 tonnes of table grapes, but will have to review their forecasts down. The main sort of grapes – Moldova – hasn’t yet reached maturity and its development depends on whether it rains or not the coming days.
Acting director named at Air Moldova
Minister of Transport and Road Infrastructure Iurie Chirinciuc accepted the resignation tendered by the director general of Air Moldova Mircea Maleca. The post will be held on an interim basis by the airline’s vice director Iulian Scorpan. In a communique, the Ministry says that following the recent events that had a major impact on the image of Air Moldova, the duty of the new administration is to regain the clients’ confidence by faultless planning and efficient management of the problematic situations.
● THURSDAY, August 13
Tourism Agency will develop automated information system of tourist patrimony
The conception of the automated information system “Register of Tourism” was approved by the Government. By this system, the authorities aim to monitor and ensure beneficiaries’ access to updated information about the tourist sector and tourist patrimony of Moldova. Each user will be able to access information about the tourist patrimony and to plan the trip. The economic entities will be able to use the system to formulate the tourist offer, based on information about the tourism patrimony and access roads to the tourist facilities.
National Day of Moldova within Expo Milano 2015
The Government allocated 500,000 lei from its reserve fund for organizing the participation of the Moldovan delegation in the National Day of Moldova within Expo Milano 2015 on August 29. Moldova takes part in this world exhibition with an own pavilion for the first time. Expo Milano 2015 includes different events with economic and cultural impact, while the National Days of the participating states play a special role. Since the launch of the world exhibition on May 1, 114 states organized or confirmed the organization of such events. The National Day of Moldova will be staged on August 29.
Over 100 new jobs for IT specialists
More than 100 workplaces are provided by the European IT services company Endava, which is expending in Moldova by opening a new office in Chisinau. In a press release, the company says the opening of this office represents an important stage in the development of the IT sector in Moldova and offers opportunities for the young people who pursue a career in IT. Deputy Minister of Information and Communication Technology Dumitru Parfentiev welcomed the extension of the company, saying the ICT Ministry is making concerted effort to ensure optimal conditions of activity for the IT companies and to attract new investments to the sector. The introduction of the common tax of 7% of the sales will considerably reduce the time and resources needed to administer taxes and will leave no room for interpretation of the legislation and for bureaucracy,” he stated.
Former deputy minister of finance investigated as suspect in BEM case
Victor Barbaneagra, deputy minister of finance in 2009 – May 2014, is investigated for professional negligence manifested by the inappropriate fulfillment of duties that generated the loss of the state’s controlling interest in Banca de Economii (BEM). The Prosecutor General’s Office said the former deputy minister was summoned and questioned by anticorruption prosecutors, being classed as a suspect. Earlier, the list of suspects in the BEM case was extended by including the vice director of the Public Property Agency Angela Susanu and former deputy minister of economy Dumitru Godoroja. These are also suspected of professional negligence and are investigated outside prison.
Bread prices will go up by 15% on August 15
Starting with August 15, the bread and bakery products will be by 15% more expensive, the Association of Bakers of Moldova and the Union of Legal Entities “National Association of Bakery and Grinding Industries” announced. The prices are raised owing to the situation on the home market and the external market too. According to the data of the associations, the production of 80% of the bread and cakes generates losses. The situation is due to a number of factors that do not depend on the producing companies, such as the rise in flour prices, the increase in electricity and natural gas tariffs and the depreciation of the Moldovan leu, followed by the rise in prices of raw and auxiliary materials on the domestic and regional markets.
● FRIDAY, August 14
Cumbers expected to cost up to 20 lei/kg by autumn
This year, one kilogram of cucumbers sells for a price that is by 2-4 lei higher than last year, and by autumn the price is expected to be as high as 20 lei. The farmers blame the rising prices on a harvest yields that has halved compared to the last few years. Mihai Paciu, president of the Association of Vegetable Growers, has told the scorching temperatures coupled with a lack of moisture are to blame. Cucumbers normally absorb moisture from the air through their leaves, but considering the enduring period with no rain, the crop simply succumbed. Pests are a further factor. Pesticides have grown more expensive, with some of them being as pricey as 3,000 lei a kilo, and many farmers can't afford them, says Mihai Paciu.
Vacancy opens for Moldova Railway director
The board of the state-run Moldova Railway company CFM is announcing the procedure to fill the vacant post of CFM general director. Applications should be submitted to the vacancy commission within a fortnight from publishing the announcement (August 14). Candidates must be at least 30 years old and have at least 10 years' professional experience; work experience within the CFM will be an asset. Also, a candidate must have at least 8 years experience in financial management, marketing, company reorganization or corporate crisis management. Another eligibility criteria is technical, economic or legal higher education; specialized education in the field of railroads will be an asset.
Valeriu Strelet: Public spending cuts are inevitable
Cutting public spending is something inevitable, says Prime Minister Valeriu Strelet, yet the payment of pensions and salaries will be ensured. Speaking at the meeting of the Prime Minister's Economic Council, Valeriu Strelet said measures will be applied to reduce spending for investment.
First half of land and property tax must be paid Monday the latest
Monday, August 17, is the last day when the first half of the land and property tax cab be paid penalty-free. This annual tax is paid in two equal installments, in August and October on the date of 15. Since this year August 15 falls on Saturday, the deadline has been extended to also include Monday, Moldova's deputy chief tax inspector Gheorghe Cojocaru explained. Those who paid the tax in full by the preliminary deadline of June 30 were able to enjoy a 15% discount. In Chisinau alone, the discount was offered to 75% of those who pay this tax.
Bread more expensive because of banking crisis, says Prime Minister
Fixing the situation in the banking system is a priority for the new Cabinet, Prime Minister Valeriu Strelet assured during the Public Space talk-show on Radio Moldova. According to him, the rise in prices for bread and other essential goods are consequences of the banking crisis. The PM says that it's not enough to increase the mandatory reserves for banks and the base interest rate, measures which he thinks the National Bank may be taking out of desperation. On the contrary, Strelet fears these steps are suffocating the economy and businessmen won't be able to borrow because of the rising interest rates.
Government session discusses issues faced by canneries
The issues that canned goods producers face have been discussed today, August 14, during a meeting between industry representatives and Prime-Minister Valeriu Strelet. As a result of the difficult situation arisen from the embargo set by the Russian Federation last summer, producers request the cancellation of the 10% tax imposed by Ukraine on imports of processed fruit and vegetable products from Moldova, as well as better protection and promotion for locally produced canned food. Prime-Minister Valeriu Strelet told the producers that the expansion of the canned goods market is part of the Government’s Agenda. The Head of the Ministers’ Cabinet has assured that he shall examine all of the requests voiced during the meeting.
