ECO-BUS WEEKLY DIGEST August 11 – 15. Most important Economy & Business news by Info-Prim Neo

* [● MON, August 11] [Changes in bank efficiency rankings] The updated bank efficiency rankings published by the Rating and Estimation Agency Estimator-VM show changes in the middle positions, with top and bottom spots preserving their previous occupants. The rankings are based on the financial results posted by the Moldovan banks for the first year-half, Info-Prim Neo reports. The top-3 remained unchanged from the last three quarters, with Moldova-Agroindbank being on the lead, followed by Banca de Economii (Savings Bank), and Victoriabank. [Vulcanesti to host universal fair] Economic entities are invited to participate in the universal fair “Vulcexpocom”, to take place between August 29 and 31 in Vulcanesti, the Moldovan Chamber of Commerce and Industry (CCI) said. The event is dedicated to the Independence Day of the Republic of Moldova on August 27. [Orange-Moldova has green light to start 3G operations] Having the authorization of the national IT & communication regulator and a proper license issued, Orange-Moldova may now start preparations for providing 3rd generation (3G) mobile services. The awarded license enables the company to provide the following 3G services: SMS, MMS, roaming, transport data services, like access to mobile Internet, IP television, and video across the territory of Moldova. [Is trade deficit a danger? Economic analysis by Info-Prim Neo] The balance-of-trade deficit totaled 1.595,3 billion USD in half a year, almost the same figure as for the whole 2006. The authorities and experts anticipate a negative balance of trade of 3 billion USD in 2008. Even if the monthly exports grew at a record rate this year, compared with the previous years, the imports also rose and the trade deficit reached a new record. The trade deficit increased almost threefold during the last four years, from 783.0 million USD in 2004 to 2.348,0 billion USD in 2007. Is the rising deficit a danger to the Moldovan economy? [Moldova could export 900,000 tonnes of grains] The authorities plan to export about 900,000 tonnes of grains as this year’s harvest is expected to be good According to Victor Tozlovan, the head of the Agriculture Ministry’s State Inspectorate for Bakery Products, only the food wheat will not be exported; it will be processed in Moldova for domestic needs. [● TUE, August 12] [Moldovan companies may exhibit in Greece] From 6 to 14 September, Moldovan companies may exhibit their products at an international fair in Thessaloniki. The Moldovan Trade and Industry Chamber (TIC) announces the fair will host a series of salons and events. The authorities can share and learn new ways of easing the state-society relation and of cutting red tape. [Table grape harvest starts next week] The table grape harvesting campaign in Moldova is to start next week and will take into account the clime particularities of each specific region, the Moldova-Vin Agency said. his year the authorities hope to harvest some 60,000 tonnes of table grapes, 20 percent ow which will be processed and 80 percent will be put up for sale to be consumed fresh. [700 Moldovans officially work in Romania's construction induistry] he Romanian Immigration Office has issued this year a number of 8,280 work permits. The highest number is for Turks, more than 3,000. Chinese rank second, with almost 2,200 permits and the Republic of Moldova citizens rank third with 700 issued labor permits. [Russian stock market rally after fall] The Russian stock markets fell on August 11, but started to rally after president Medvedev stated the military operation in Georgia was drawing to a close. Investors were concerned Monday the escalation of fights with Georgia will jeopardize Russia's relations with the West. [City Development to erect tallest twin apartment buildings in Chisinau] The company City Development has started building two 24-floor residential blocks in Chisinau to be joined by a mall. Once erected, they will become the tallest apartment buildings in the city. [First 20 young men received loans as part of National Youth Economic Empowerment Program] The first 20 young persons received loans as part of the National Youth Economic Empowerment Program. The total sum of the loans is 5.7 million lei. The sums granted range from 245,000 to 300,000 lei. All the loans were offered for purchases of equipment, such as for diaries, bakeries, woodworks, incubators, refrigerators, etc. [Weekly trading volume shows intenser activity on stock exchange] The trading volume recorded last week on the Moldova Stock Exchange was 7.2 million lei, above the average levels over the past few months. Against the background of rising liquidity the stock exchange indicator EVM Composite moderated its fall. It dropped only 6.5078 points to reach 297.8764 points, the Rating Egency “Estimator-VM” said. [● WED, August 13] [Floods menacing South makes farmers sell produce cheaper] The losses in agriculture caused by the recent floods amount to 65 million lei, as the local produce sell more and more cheaper on domestic markets. The daily study of the relevant prices operated by AGROinform Federation shows the wholesale price of aubergines in the southern part of the country is dropping. [Romania's Siveco denies reports of possible takeover by Poland's Asseco] Romanian software solutions producer Siveco, present in Moldova too, has denied recent press reports that Poland's software company Asseco was going to acquire the former. [Romania's BCR to open 50 self banking units by this yearend] The Romanian Commercial Bank (BCR) plans to set up 50 around-the-clock self banking units by the end of this year. The customers can use these zones, called Easy 24 Banking BCR, to perform banking operations through ATMs, multifunctional machines, currency exchange facilities, Service Boxes and the telephone. So far, BCR has opened 23 units of the kind. [Cahul entrepreneurs learn to make wine] 20 entrepreneurs dealing with restaurants, hotel and tourism services, owning grapes processing facilities in the Cahul area attend a training course called “Oeno-Gastronomic Resources for Sustainable Territorial Development – Transferring Good Practices”. The event is organized by the Cahul office of the Moldovan Trade and Industry Chamber (TIC), in partnership with the Italian region of Veneto, within the a project called “Cooperating for the development of the oeno-gastronomic system of the Cahul area”. [Moldovan, Romanian companies may join trans-border business development project] Companies from Moldova and Romania are invited to join a trans-border project on developing the business environment, launched by the Resources and Consulting European Center (RCER) from Iasi, the Trade, Industry and Agriculture Chamber from Vaslui in a partnership with the Young Entrepreneurs Center from Chisinau and the town hall of Sangera. “The project aims at stepping up the sustainable development of the economy and businesses in the border area between Romania and Moldova, by the cooperation between the institutions backing the economic sector, by creating a supporting infrastructure and by getting closer the business environment from Romania and Moldova,” said Daniel Rata, the chairman of RCER. [● THU, August 14] [Fuel gets cheaper as wholesale prices fall] Gasoline prices at the pump fell by 4.9% to 5.3% while diesel fuel dropped by an average 2.6 percent, Info-Prim Neo reports. According to Leonid Smolnitchi, spokesperson for the Petrol Importers Union, one liter of AI-95 gasoline, which retailed at 14.81 lei, is available starting Thursday afternoon for 14.06 lei. For one liter of diesel fuel, motorists will have to pay 14.90 lei instead of 15.30 lei. [Moldova's C-Bank explains the usefulness of Currency Regulation Law] he National Bank of Moldova (NBM) explains the importance of the Currency Regulation Law. In a press release, it shows that, by adopting the law, the general principles of currency regulation in Moldova, the rights and obligations of the residents and non-residents related to the currency area, the powers of the regulators, and the powers of the currency control agents have been established and incorporated into an act. The law is meant to establish the legal norms related to making currency operations, licensing and work of currency exchange entities, to currency control, in order to implement the currency policy of the state and to insure the stability of the currency market. [IMF sees progress in Moldova's fiscal administration reform] An IMF mission headed by Allan Jensen, FAD (Fiscal Affairs Department) revenue administration advisor, and comprising David Kloeden, FAD senior economist, and Tony Lester, FAD panel expert, visited Moldova from July 30 to August 12, 2008. The mission found the progress achieved during the last couple of years to be very impressive. In the mission’s view, the STI management team and its staff, supported by the Ministry of Finance, have demonstrated both readiness and the capability to manage and move forward a comprehensive reform. [Better trade regime fails to yield export boost: Expert-Grup] The consecutive improvement of the trade regime the EU granted to Moldova has not had a special impact on the Moldovan exports, neither on their diversification. The conclusion is drawn by the authors of a study called “The Development of the Moldovan Exports to the EU. The Role of Trade Regimes,” presented on Thursday by the Expert- Grup think tank, with the financial support of the Soros Foundation-Moldova. The research considers the development of the Moldovan foreign trade from 1995 through 2007. Since 1997, the EU has granted Moldova facilities called the Generalized System of Preferences (GSP), and since 2006, it has considerably extended the list of products benefiting from facilities (GSP- plus). [● FRI, August 15] [Constructions Ministry has new regulation] The Constructions and Territory Development Ministry has a new regulation published in Friday's issue of Monitorul Oficial, Info-Prim Neo reports. According to the regulation, the ministry is going to meet the needs of other sectors of the economy. The agency will be also responsible for developing technical solutions, which would meet the performance and maximum safety requirements of categories of objects. [Moldova is key buyer of Ukrainian wheat flour] In July, 2008, Ukraine exported 28.800 tonnes of wheat flour, down 29% compared to the previous month. Georgia, Tajikistan, Afghanistan, Syria and Moldova were the main buyers of wheat flour in July. In July, wheat bran export increased to 52.900 tonnes as opposed to 18.800 tonnes in June. Morocco was the main buyer, the country bought nearly a half of wheat bran export volume. Also Senegal, Egypt, Israel and UK were the buyers. [Fuels keep lion share in Moldovan imports] Energy products remain in the lead of the Moldovan imports, yet the general structure of the imports has changed significantly, getting less focused around the hydrocarbons. Info-Prim quotes a research of the Expert-Grup think tank concluding that the weight of the energy products in the imports graph has decreased from 45.5% in 1995 to 21% in 2007. [Dodon will introduce Monday new manager to MoldovaGaz staff] First Deputy Premier Igor Dodon said on Friday he would introduce Monday the newly appointed MoldovaGaz's executive manager Alexander Gusev to the company's staff, Info-Prim Neo reports. Gusev's appointment has already been confirmed by MoldovaGaz's Board, but he will actually assume office after the introduction, Dodon said. Prior to this appointment, Alexander Gusev served as manager of the state-run enterprise Energocom, which was founded via a Government decree in 2004 to conduct foreign economic activities in the energy sector, mainly electricity imports from Ukraine. Gusev, though to have been nominated to the post by the Government, holds a 35.33 percent stake in MoldovaGaz. He will replace Gennady Abashkin as executive manager, after the latter completed his second term in office on July 29.