● MONDAY, August 14
Government is diversifying areas of PPPs
The government will soon announce a one-round tender to select private partners for developing the activities of the National Lottery of Moldova. Gambling in Moldova is under the monopoly of the government, which will soon sign two private-public partnership (PPP) contracts. The first concerns the development of the National Lottery of Moldova and sports betting, including via electronic means of communications. The second PPP contract concerns the development of the slot machine business. According to the Ministry of Economy and Infrastructure, both projects require serious investments, especially the slot machines project. Because of this, the government included among the eligibility criteria for tender participants that of being a slot machine manufacturer. This will exclude intermediaries, reduce the investment cost and its payback period.
● TUESDAY, August 15
Interest rates for loans drop because of low inflation expectations, IDIS experts
Lower inflation expectations have lead to lower interest rates for loans. National Bank of Moldova data show that in June 2017 the weighted average interest rate for new loans in Moldovan lei dropped to 10.03%, which is 0.23 pp than the previous month and 4.12 pp lower than the same period of last year. During the “15 minutes of economic realism” radio broadcast, journalist Victor Ursu explained that this decrease is not particularly significant. The decreased interest rates are caused by the announcement of low inflation predictions - in 2018, it will be kept under 5%. Inflation will remain high in the third quarter of this year, but will then rapidly drop to the lower limit of the targeted rate’s variation interval. This motivated bankers to decrease the interest rates for loans.
World Bank offering grants of up to $350,000 to horticulture farmers
During August 15—November 1, groups of fruit and vegetable growers will be able to apply for grants of up to $350,000 to buy post-harvest equipment and machinery, such as for sorting, cleaning, calibration, packaging, drying, storage and refrigeration. The support is offered by the World Bank within the framework of the “Facilitating Access to Markets” Investment Program. To qualify for a grant, applicants should team up in groups of at least five growers (both companies and individuals), with each having experience of three years or more in the horticulture business, and contribute a minimum 50% of the total eligible costs.
Wheat, barley outputs are up
This year wheat and barley harvest yields are up, rape yields are about the same, and pea yields are down on last year. The Ministry of Agriculture said in a press release that this year the harvesting of first-group grains and pulses as well as rape was completed on August 11. Spring and autumn wheat averaged a yield of 3.87 tonnes per hectare, up by 0.77 tonne on last year. Spring and autumn barley averaged 3.4 tonnes per hectare, up 0. 4 tonnes. Rape averaged 2.5 tonnes per ha, roughly the same as in 2016. Pea harvest was 2.68 tonnes per hectare, down 0.18 tonnes on last year.
● WEDNESDAY, August 16
National economy ‘is dying’, says IDIS expert
“Sad but true: the national economy economy is dying and there are no apparent signs of recovery any time soon”, Veaceslav Ionita, of the think-tank IDIS Viitorul, wrote on his blog. To illustrate, Ionita said that lending to the economy has been on the decrease for almost three years. In particular, loans offered in the second quarter of this year stood at 34.2 billion lei compared to 47.2 billion lei in the third quarter of 2014, a 13 million lei drop not accounting for inflation.
There should be more one stop shops, say businesses
The practice of one stop shops should be intensified and expanded to all the public services offered by the central authorities. This will improve the quality of services, reduce their costs and discourage corruption. The opinion was voiced by members of the business environment during debates on Wednesday, August 16. According to a press statement that followed the debate, the one stop shop concept for public services means that they should be concentrated in a single place and accessible online. The submission of requests for public services should also be digitized.
THURSDAY, August 17
Business incubator opens in Cahul
A business incubator was opened in Cahul on Thursday, August 17, with the support of the European Union. It will host 25 companies, which will create 60 jobs. The incubator will provide logistic support, consultancy, training and financial assistance not only to the hosted businesses, but to other companies from Cahul and Moldova’s southern districts. Moreover, seven virtual residents will also benefit from its services. The Cahul business incubator will work as a public institution, in the same format as the other ten incubators opened in the last eight years in Soroca, Stefan Voda, Leova, Rezina, Sangerei, Dubasari, Ceadar-Lunga, Cimislia, Nisporeni and Calarasi.
Beekeepers to receive 21,000 recipients for collecting honey
About 21,000 recipients for collecting honey will be distributed to Moldovan beekeepers in order to prevent the contamination of honey and to ensure its quality for local and foreign consumers. According to the South Development Agency, the new vessels will improve sanitary conditions during the collection, transportation and packing of honey. The vessels have been bought as part of USAID Moldova’s High Value Agriculture grant program. The first installment of 6,720 pieces has already arrived in Moldova and is being distributed to beekeepers throughout the country.
Igor Corman: Investors are willing to bring money when they see a profit
German-Japanese company Sumitomo Electric Bordnetze officially started its operations in Moldova at the end of 2015 and this autumn it may open a factory of wire harnesses for the German automotive industry. The group’s investments in Moldova are managed by former politician Igor Corman. He said during an interview for Radio Free Europe, that the company will create jobs for 2500 people. “Investors are willing to bring money when they see a profit, when they can make long term plans and if they are happy and the other parties involved in such projects are happy, then it’s a win-win situation, a success. The project I joined a year and a half ago is a big investment by Sumitomo Electric Bordnetze. It’s really big and I can say that it got the good kind of attention from local and central authorities”, said Corman.
Lease financing available for farmers via Fruit Garden of Moldova project
As part of the Fruit Garden of Moldova project, businesses in the horticultural sector and related industries will be able to receive lease financing from the European Investment Bank. According to press release of the Ministry of Agriculture, lease financing is more advantageous compared to a classic loan because farmers don’t have to put up any collateral. Other favorable conditions include an attractive interest rate, an advantageous financing period and a flexible payment schedule.
● FRIDAY, August 18
Benefits of biodegradable bags will outweigh costs, experts
Biodegradable bags are more expensive to manufacture than plastic ones, and with stores across Moldova required to use the biodegradable type exclusively from 1 January 2019, prices are expected to rise, says Anatolie Stepa, an entrepreneur specializing in eco-friendly packaging. However, Anatolie Stepa says the environmental benefits of the measure are certainly outweigh the costs. “Orders for bio-bags have risen lately especially from pretzel and bagel vendors. Grocery stores are ordering them for breads and buns. Sure, eco-friendly bags are costlier, but from an environmental point of view, we will be better off having biodegradable bags. For our part, we will do everything to cut their production cost as low as possible”, Anatolie Stepa told.
Health care contractors request milder penalties
Companies delivering products and services for the health care system under public contracts are requesting that penalties be lowered to no more than 0.1% for every day of delay and 5% for failure to deliver, from the current 1% and 50% penalties, respectively. The Economic Council to the Prime Minister said in a press release the request was made during a meeting of the working group to eliminate constraints to doing business. The contractors said they want to enjoy the same preferential conditions currently enjoyed by the state-run Centralized Health Care Procurement Center, which pays penalties ten times lower for the same breaches of contract.
Central authorities invited to submit proposals for 2018 Budget Bill
Central authorities such as ministries and other Government agencies are invited to present their proposals for the 2018 Budget Bill and make estimations for 2019-2020. The circular quotes Minister Octavian Armașu as saying that the Ministry aims to meet the deadlines of the budget calendar set out by the Public Finance Law and of other key documents.
Company fined for paying workers off-the-books
For the first time, a company will be fined according to the Contravention Code for violating labor legislation and paying workers off-the-books. The State Fiscal Service (SFS) recorded the violation in April and the company was recently found guilty in court and slapped with a fine of 50,000 lei. According to a press release of the SFS, the employer was paying workers cash-in-hand. In addition to the fees, taxes and penalties applied by the SFS, the Labor Inspectorate prepared a contravention report and filed it in court.
Amendments to Electronic Communications Law take effect
The National ICT Regulatory Agency has announced that the latest amendments to the Electronic Communications Law are entering into force with their publishing in the Official Gazette today. The introduced amendments aim to create conditions for fair competition, consolidate the domestic electronic communications market and make better use of the radio spectrum, among other objectives, the Agency said in a press release. The new provisions require operators to take all the technical and administrative steps to ensure the security and integrity of their networks and of the public services they deliver, authorizing the Agency to check and evaluate compliance.
Recommended grape prices announced
This year grape production is estimated to amount to 620,000 tonnes, including 120,000 tonnes of table varieties. This was announced at a meeting organized by the Ministry of Agriculture and the National Wine and Vine Office to discuss aspects of the 2017 grape harvesting and post-harvesting. Of the total production, individual household-based vineyards will account for 200,000 tones. Valeriu Cebotari, deputy department head at the Ministry, said commercial vineyards are estimated to yield 5 tonnes per hectare.
● SATURDAY, August 19
Wine traceability ‘is key to conquering markets’
By 2018 all incorporated wineries owning vineyards will be required to become enlisted in the Vine and Wine Register, announced Gheorghe Arpentin, director of the National Vine and Wine Office, at a meeting dedicated to the 2017 grape harvest. Arpentin said the Register will help to improve the quality of grapes and wine and enhance their competitiveness on the domestic and foreign markets. According to him, in the first six months of this year Moldovan wine exports increased by 9% in terms of volume and by 16 percent in monetary terms from the similar period last year.
