● MONDAY, August 07
Sergiu Tofilat specifies priorities of his tenure as Moldovagaz Board member
Energy expert Sergiu Tofilat, a member of the Supervisory Board of Moldovagaz, said that the initiation of cooperation with the investigation bodies to probe the illegalities that caused damage to the company is one of the priorities of his mandate. According to him, these illegalities led to the accumulation of gas debts.
In a news conference, Sergiu Tofilat spoke about the case of Cristalflor where the damage is estimated at 57 million lei. According to him, based on a court decision, Modlovagaz was obliged to supply gas on credit to Cristalflor, which was then controlled by Veaceslav Platon. The money hasn’t been yet paid.Another case is that of Belvilcom over which the National Agency for Energy Regulation adopted a decision back in 2011. This enterprise received unmetered gas and produced electricity from it or resold the gas to clients. The Agency determined that the enterprise consumed unmetered gas in the amount of 34 million lei. Sergiu Tofilat considers the gas losses in the distribution network indicated in the tariff were much larger than the effective losses.
● TUESDAY, August 08
Dumitru Pîntea: 20 entrepreneurs raised loans through 373 program so far
The access to financing is the biggest problem faced by entrepreneurs in the Republic of Moldova, said the director of the Organization for Entrepreneurship Development (ODA) Dumitru Pîntea. According to him, the Government helps the entrepreneurs to raise investment loans through the agency of the 373 program. The program offers the beneficiaries cheaper loans, with a grace period of up to three years. Since the program was launched, 20 entrepreneurs have taken out preferential loans from commercial banks.
The ODA chief noted that most of the entrepreneurs in Moldova say the impossibility of raising loans with advantageous rates is an impediment to developing businesses. In this connection, the Government launched the 373 program that became accessible on June 1.
Moldova, Israel get ready to open negotiations on free trade agreement
Moldova and Israel have a common interest in opening negotiations on a free trade agreement. The responsible teams are working to prepare the talks, Minister of Foreign Affairs Nicu Popescu stated in a press briefing given on the occasion of the visit paid to Chisinau by the Minister of Foreign Affairs of Israel Eli Cohen. According to the Moldovan official, trade with Israel in 2022 came to US$42 million, up 70% on 2021. This points to the existence of unrealized potential. Respectively, they aim to increase the figures in mutual trade. Moldova is interested in increasing the exports of grain, fresh and dried fruit, walnuts, carpets and to purchase mineral and other kinds of fertilizers, noted Nicu Popescu. A number of 408 enterprises with Israeli capital operate in Moldova at present. They made investments totaling about 67 million lei.
Energocom repaid loan raised from EBRD to purchase gas
SA Energocom repaid the €300 million loan taken out from the European Bank for Reconstruction and Development (EBRD) after fully paying the second (emergency) tranche of €200 million. Energocom said the given tranche was raised at the beginning of this year and was to be repaid by October, but could be repaired earlier, on August 7.
● WEDNESDAY, August 09
Three airlines launch direct flights to Chisinau
Three airlines decided to launch direct flights to Chisinau. One of them is Azerbaijan Airlines - AZAL, which will operate regular direct flights from Heydar Aliyev International Airport in Baku to Chisinau as from September 15, each Monday and Friday. Israir Airlines will operate regular direct flights from the Chisinau International Airport to Tel Aviv as from October 29, each Monday, Wednesday, Thursday and Sunday. From August 8 until November 1, 2023, Southwind Airlines will operate charter flights from the Chisinau International Airport to Antalya.
260 businesses supported financially by “Start for Young People” program
As of June until present, the government program “Start for the Young People” helped to launch 259 investment projects to the total value of over 41 million lei. Through the agency of the program, the Organization for Entrepreneurship Development continues to provide concessions for realizing the entrepreneurial potential of the young generation. This way, young people aged between 18 and 35, who want to initiate or to develop a business, can benefit from consultative support and grant funding or a loan with a grant component.
€40m for crossborder Romania-Moldova investments
A call for project proposals to the value of €40 million will be launched in the immediate period. The grant funding is intended for crossborder Romania-Moldova investments and will be provided within the EU-funded Interreg NEXT Romania-Republic of Moldova crossborder cooperation program 2021-2027 whose Supervisory Board approved the guidebook of the applicant for crossborder investment projects. Those interested will have four months at their disposal to submit applications for financing.
The Ministry of Development, Public Works and Administration of Romania said the representatives of the two participating states came together for the second meeting of the Board to approve the criteria for providing financing for projects with an investment component (standard projects) and to decide how the projects selection and assessment process will be conducted.
NBM leaves monetary policy instruments unchanged
The board of the National Bank of Moldova (NBM) has kept the base rate on the main short-term monetary policy operations at the current level of 6% annually. The rates on overnight loans and deposits remain unchanged at 8% and 4% annually, respectively. Also unchanged are the reserve requirements both in lei and foreign currencies.
The decision was taken given that the stimulative effects of the measures previously adopted by the NBM are spreading, the institution said in a press release.
● THURSDAY, August 10
Downward trend followed by annual rate of inflation continued in second quarter
The downward trend followed by the annual rate of inflation at the end of the previous year continued in second quarter of this year. This way, the annual rate of inflation decreased from 22% in March to 13.2% in June. The National Bank of Moldova said the effective annual inflation in the second quarter was by 0.2 percentage points higher than the forecast level, the deviation being principally caused by the food prices as a result of the larger than expected rise in fruit and potato prices due to the meteorological conditions this spring.
“The current inflation rate of the Consumer Price Index above the upper limit of the interval of ± 1.5 percentage points from the target of 5% reflects the effect of the pronounced inflationary pressure the previous year, associated with the rise in tariffs of regulated services, their secondary effects, the war in Ukraine, the drought of last summer. At the same time, additional inflationary pressure in the first half of this year was caused by the colder weather in the spring of 2023 and the rise in excise duties at the beginning of the year. The disinflationary demand starting with the middle of 2022 and the appreciation of the leu continue to alleviate the pressure of the mentioned factors,” the central bank noted in a press release.
“e-Invoice” will not be available during August 11-14
The State Tax Service will allow using standardized primary document forms with a special regime “Tax Invoice”, which are printed in a centralized way and are in stock, during August 11-14 in connection with the cessation of the information systems intended for taxpayers and tax functionaries. In a press release, the State Tax Service says the printing of fiscal invoices is permitted with the preliminary distribution of the series and range of numbers through the automated information system “Online Ordering of Standardized Forms”.
The electronic services will not be available because they will be reconfigured for improving information security.
Program of support for entrepreneurs who export to Romania
Companies that want to develop the business by exporting to Romania can benefit from support within the Export Missions program that was launched today, August 10. The program offers a strategic platform to encourage cooperation between businesses, experts in international trade and government institutions. Export Missions is implemented by the Investment Agency in partnership with the Micro, Small and Medium-Sized Enterprise Competitiveness Project that is supported by the World Bank, IPN reports.
Viorel Garaz, secretary of state of the Ministry of Economic Development and Digitalization, told a news conference that it goes to economic missions to promote a number of national industries in Romania. The eligible areas are: textile industry, furniture, processing and many other industries.
NAER to sanction Moldovatransgaz
The National Agency for Energy Regulation (NAER) initiated the procedure for financially punishing the natural gas transmission system operator SRL Moldovatransgaz. According to the Agency, the company didn’t fulfill the legal obligation to ensure its independence from the natural gas company integrated on the vertical SA Moldovagaz.
SRL Moldovatransgaz didn’t comply with the legal separation conditions in accordance with one of the models stipulated by the law on natural gas and didn’t submit to the NAER the application concerning its certification, notifying of the impossibility of completing the separation process.
Open banking will be accessible in Moldova next year
Open banking will be accessible in the Republic of Moldova next year. This implies the initiation of payments and utilization of information about accounts outside the banking sector. If it goes to own finances, the person will be able to see the incurred costs and to use an application to see where money can be saved. Details about open banking were provided in a National Bank of Moldova’s podcast with the head of the Bank’s Fintech Division Vadim Jeleascov.
“If we speak about open banking, when data from other banks are open, it is possible to download an application, like credit scoring, and to this way easier get a loan as no papers will be required. When it goes to own finances, you can see the incurred costs and can use an application teaching how to save money This is Fintech,” stated Vadim Jeleascov.
Businesses based in Transnistria to pay customs processing fees
All businesses based in the Transnistrian region without exception will pay customs processing fees from August 10. According to a press release issued by the Customs Service, until today, only businesses from the Republic of Moldova that have fiscal relations with the public budget system were required to pay customs procedure processing. A new legislative amendment changes this, ensuring equal treatment for all businesses importing and exporting goods and products.
● FRIDAY, August 11
Price of diesel fuel passes 23 lei mark
The price of diesel fuel went above the 23 lei level. The National Agency for Energy Regulation has announced a 0.14 lei increase in the price of this type of fuel.
Over the next three days, August 11-14, a liter of diesel fuel at filling stations will be sold for at most 23.13 lei. A liter of gasoline coded 95 will cost at most 25.76 lei, up 0.06 lei.
Moldova takes part in discussions on Ukrainian grain exports
Representatives of the European Commission, the United States, Romania, Ukraine and Moldova are discussing Ukrainian grain exports, alternative routes and global food security in the Romanian Danube port city of Galați on Friday, Radio Europa Liberă reported.
According to a press release from the US Embassy in Romania, the participants in the talks will join forces “following Russia’s hard exit from the Black Sea Grain Initiative” for a better coordination of Ukrainian grain exports.
“Working together, we are committed to strengthening and diversifying alternative routes for grain exports by rail, road and sea, ensuring Ukraine’s essential role in the global food market”, the United States said, stressing that it remains “strongly standing with Ukraine, promising continued support and assistance”. The meeting participants will also denounce Moscow’s actions "for weaponizing food and endangering global food security”.
● SUTURDAY, August 12
Russia blocks grain exports so as to leave Ukraine without economic oxygen, opinions
Russia unilaterally withdrew from the grain agreement so as to block Ukraine’s exports and to leave the country without economic oxygen, said the director of the Institute of Political Studies and Social Capital of Chernovtsy Marin German. According to him, grain exports represent an important part of Ukraine’s economy and the blocking of these endangers the country’s economic security and generates food insecurity risks globally. For his part, political pundit Mihai Isac said that Turkey will try to address the issue of grain shipment with Russia as the President of Turkey Erdogan wants to be the one who mediates the Moscow-Kyiv relationship so as to gain global prestige.
Alexandru Slusari: Farmers got neither compensation nor Romanian diesel fuel
The Moldovan authorities didn’t fulfill the promises they made during the protests mounted by farmers in June. The Cabinet didn’t approve the regulations on the payment of compensation and the mechanism for distributing the diesel fuel provided by the Government of Romania, said the executive director of the association “Force of Farmers”. Alexandru Slusari noted the authorities’ refusal to help makes the farmers resume the protests.
Alexandru Slusari said the situation in the agricultural sector is difficult due to the low grain prices, the large production costs and the pressure exerted by creditors on farmers.
Challenges related to grain transit discussed in Galati
Since the outbreak of the war in Ukraine, the Republic of Moldova has been an example of solidarity and will remain close to the people of Ukraine, but it also needs to cope with particular challenges, it was noted in discussions involving officials of Moldova, Ukraine, Romania, the European Commission and the U.S. in Galati.
“Currently, the Republic of Moldova ensures the transit of agricultural products from the European Union, taking into account the interests of Moldovan farmers and the fact that we are a producer and exporter of grain. Therefore, the investments in infrastructure are a pressing necessity for satisfying the needs of Moldovan farmers and ensuring the transit. The Republic of Moldova aims to increase the railway and naval transportation capacities,” said Minister of Agriculture and Food Industry Vladimir Bolea, being quoted in a press release issued by the Ministry of Agriculture of the Republic of Moldova.
Exports of services will exceed 40% of total exports this year, economist
Moldova’s exports in 2023 will rise modestly, but exclusively due to the exports of services. The exports of services for the first time will exceed 40% of Moldova’s total exports, said expert of the Institute for Development and Social Initiatives “Viitorul” Veaceslav Ioniță. According to him, the national economy does not have competitive sectors with remarkable results, such as the service sector. The IT sector is the most dynamic service sector that developed the past few years.
“The 21st century is the century of services and the Republic of Moldova should actively and powerfully enter this market. It should develop the IT and BSS (business support systems) sectors as this enables to increase the Moldovan exports, to number of jobs in the country and to have salaries higher than the national average,” stated the expert.
