● MONDAY, December 7
Audit Office celebrates 21st anniversary of foundation
Since its foundation on December 8, 1994 until now, the Audit Office covered a long path of development and transformation, from an inspection institution to the supreme audit institution. This ascension followed the transfer of experience and good practice from such international organizations as INTOSAI and EUROSAI, meeting of the international auditing standards ISSAI, implementation of international institutional development projects and signing of cooperation agreements with similar international institutions. In a communique, the Audit Office says that throughout 2015, increased effort was made to ensure the continuity of the process of developing the institution and improving the audit activity and professional competence of the personnel, which led to trustworthy results and better recognition and appreciation of the Audit Office in society.
Fruit growers put forward resolution for solving problems in sector
The fruit growers called on the Government to constitute a commission that would deal with the amendment of the legislation on the use of water from terrestrial aquatic reservoirs for irrigation and to draft legislation and think up the mechanism for using underground waters for irrigation. Such solutions are proposed in the resolution of the national conference “Opportunities and challenges in Moldova’s fruit growing sector in the context of the integration into the EU”, which was held recently. The commission should also work out a national strategy for developing the irrigation infrastructure. According to the resolution, the lack of water sources is the main problem faced in the fruit growing sector of Moldova. The access to open sources of water for irrigation is difficult and bureaucratized, while the underground waters cannot be used because there is no normative farmworker in this regard.
LOT Polish Airlines returns to Chisinau
The Polish carrier LOT Polish Airlines re-launches the connection from Chisinau. From January 2 already, passengers flying from Chisinau again will be able to visit Warsaw, Europe and North America on board LOT planes. LOT offers them a wide and convenient flights network, excellent service, efficient and comfortable transfers in LOT’s hub in Warsaw, and the shortest travel time to many destinations in Europe. The presentation was made in a news conference on December 7. In the event, Poland’s Ambassador to Moldova Artur Michalski said the two states have very close relations and now that the Polish carrier re-opened its service from Chisinau to Warsaw, the relations could develop further. “I’m very glad that today – owing to the Polish airline LOT – we have good news for you. From next year already, you will be able to fly directly from Chisinau to Warsaw. I’m strongly convinced that this will help extend the relations between our societies,” stated the diplomat.
New airline to start work in Chisinau
Those who want to travel to Warsaw or visit other cities in Europe and North America will be able to use the services of a new carrier – LOT Polish Airlines, which was presented in Chisinau on December 7. The carrier promises that from January 2 already, passengers flying from Chisinau to the mentioned destinations will be able to benefit from a wide and convenient flights network, excellent service, efficient and comfortable transfers in LOT’s hub in Warsaw, and the shortest travel time to many destinations in Europe. In a news conference LOT Chief Executive Officer for Romania and Moldova Jakub Malecki said the Polish carrier actually restarts work on the Moldovan market. Connection between Warsaw and Chisinau has been suspended due to so called compensatory measures applied to LOT during restructuring process. LOT is a state-run company.
● TUESDAY, December 8
Electricity would cost twice more if Cuchurgan Plant paid full price of gas, Roman Chirca
The electric power tariffs on the right bank of the Nistru would rise at least twice if the Cuchurgan Power Plant fully paid for the natural gas supplied to it by Tiraspoltrangaz, economic expert Roman Chirca, who is the director of the Market Economy Institute, said in the talk show “White and Black” of Unimedia portal. Roman Chirca stated his opinion on the issue in connection with the assessment of the mechanisms used by the enterprises from the left side of the Nistru to set the prices of electricity supplied to the right bank. “From my viewpoint, not the Cuchurgan Plant dictated the tariff, but this tick called Tiraspoltransgaz. As Tiraspoltrnasgaz supplies gas to Cuchurgan, the delivery price is actually the lever by which the Transnistrian administration can determine its profit. Given that they renounced the financial assistance on the part of Russia, Tiraspoltransgaz could be forced to sell gas to a much higher price to the Cuchurgan Plant. The supply of electricity at the current prices to us will be thus in question. It is paradoxical, but we became dependent on the supplies from Cuchurgan based on the current non-transparent functioning formula,” he stated.
Orange Moldova issued with two new licenses
The National Regulatory Agency for Electronic Communications and Information Technology issued the first national mobile phone carrier with two new licenses allowing using radio frequencies in the 800 MHz and 900 MHz bands, with the aim of providing terrestrial mobile public communications services and networks. Orange Moldova obtained licenses as a result of a contest and paid the equivalent in Moldovan lei of almost €12 million license taxes into the state budget. The licenses are valid until November 5, 2029. The Agency estimated that through the two new licenses, Orange Moldova increased its spectral portfolio by 18%.
Solutions from ex-Premier to country’s problems
Former Prime Minister Ion Sturza launched a personal manifesto called “Let’s Save Moldova!”, where he says that for the first time since the declaration of independence, Moldova faces a real existential danger. On his Facebook page, the businessman published a series of solutions to the problems faced by the country. “I hope that the country can be still saved if we urgently stabilize the economic situation and, implicitly, the budgetary one. Towards the end of this year, the budget debts will be 1.5-2 billion lei. The decline in the GDP, external trade and remittances and the servicing of the billions of lei stolen from the banking system can lead to a deficit of 20-25% of the budget for 2016. This means inability to pay salaries and pensions and to fulfill the minimal social obligations. Only an urgent fiscal and monetary relaxation, combined with drastic fiscal discipline, can save the country,” said Sturza.
Dividends not claimed during three years become company revenues
The dividends that will not be collected by shareholders during three years will be classed as revenues of the company. The Constitutional Court’s decision of July 19, by which the given legal provisions are declared constitutional, was published in the Official Gazette on December 8. On May 22, the Court was asked by three MPs to pronounce on the constitutionality of Article 49 of the Law on Joint Stock Companies of April 2, 1997. These invoked that provisions stipulated in the Constitution and in Protocol No. 1 to the European Convention on Human Rights are violated.
● WEDNESDAY, December 9
Farmers will not receive subsidies this year?
Alexandru Slusari, chairman of the National Union of Agricultural Producers’ Associations “UniAgroProtect”, said that this year the farmers will not get subsidies from the state. According to him, the authorities were to allocate 380 million lei for paying subsidies, but, owing to the budget deficit, the money will not reach the farmers. “I didn’t believe in the prospect that the subsidies will not be paid. It never happened for the announced amount not to be allocated. But, as a result of unofficial discussions, I understood that such a prospect is possible in 2015 and the farmers will get no money. Subsidies of 380 million lei were to be paid. There were submitted applications for subsidies to the value of over 500 million lei. The deficit was to be transfected for next year. But no money will be allocated for subsidies,” Alexandru Slusari said in the program “Dialog” on Agro TV Moldova channel.
Vasile Bumacov: “Loss of trust is more costly than loss of money”
“The loss of the ‘billion’ is enormous for our country, but the damage caused by the loss of confidence is greater, and I refer not only to the trust of the people, but also of the development partners, donors and all Moldova’s friends from abroad,” said ex-minister of agriculture and food industry Vasile Bumacov. Referring to his experience of working with foreign partners, Bumacov said that these help Moldova in the hope that the results t of this assistance contribute to the people’s welfare. They are profoundly disappointed when things develop not as it was agreed.
Evolution of Pay TV services in nine months
The segments of the pay TV market developed differently in the first nine months of this year. The IP TV market continued to growth, while the cable TV market to decline. This trend became more accentuated in the last four quarters, the ICT regulator ANRCETI has said. According to the data provided by 78 active pay TV providers, the number of subscribers to IP TV rose by 8% to over 67,700, while the revenues from this service increased by 0.4 million lei compared with the same period last year to over 40.9 million lei. The number of subscribers to cable TV decreased by 5.6% to 197,500, while the revenues from this service fell by 10.25 million lei to 70.7 million lei.
Embassy of Romania: Moldovan goods are increasingly popular on Romanian market
Trade between Romania and Moldova in the first three quarters of 2015 was over US$1.039 billion. Exports came to US$644 million, while imports to US$395 million, the balance being of US$249 million in Romania’s favor. Compared with the first three quarters of last year, the imports of products from Moldova rose by 7.51%. Transnistrian region’s export to Romania in the first ten months of this year totaled US$82 million, being twice larger than the exports to Ukraine and Russia.
“e-Application” service becomes available
A new electronic service – “e-Application” - was launched by the State Tax Service on December 9, with the support of the state-run company “Fiscservinform”, IPN reports. The head of the State Main Tax Inspectorate Ion Prisacaru told a news conference that the new service optimizes the process of submitting applications for registering subdivisions of companies and for being registered as VAT taxpayers. “The new service can be accessed at www.servicii.fisc.md by taxpayers that possess a digital signature. Those who do not have such signature can apply for it at one of the certification centers accredited in Moldova,” stated Ion Prisacaru.
National Office of Vine and Wine launches “Wine Friendly” program
The National Office of Vine and Wine and its strategic partner, the USAID-funded Competitiveness Enhancement Project, are launching the “Wine Friendly” program that is aimed at promoting the wine culture and high-quality wine serving in Moldovan restaurants. On December 8 – 20, sommeliers and bloggers will stage 17 masterclasses intended for clients of local restaurants at the 12 restaurants certified as “Wine Friendly”. The guided tasting events will be followed by soirees where sommeliers will persuade clients to learn about the wine culture. The restaurants will also make special offers, with special prices for wines made by national wine companies.
● THURSDAY, December 10
Road repaired in Hancesti
The Regional Development Agency Centru announced the completion of the works to repair a road section of about 1 km within the project to improve access to the national roads Chisinau-Hancesti-Cimislia-Basarabeasca R3 and Chisinau-Leova R34. The repaired section forms part of a bypass going from the direction of Basarabeasca towards Cahul, Chisinau and Europe, through the Leuseni Customs Post. At the second stage, there will be built 1.4 km or road. The territory adjoining the land will be laid out and street lighting will be set up. The bypass will ensure connection with the local Industrial Park. It is anticipated that this will have positive effects on the economy by increasing the employment rate and boosting the SME sector.
Good practices of developing Industrial Parks and Free Economic Zones discussed at forum
About US$200 million was invested in Free Economic Zones since their launch in Moldova, while the investments in Industrial Parks amounted to 700 million lei. The information was provided by acting Deputy Prime Minister and Minister of Economy Stéphane Christophe Bridé in the forum “Industrial Parks and Free Economic Zones as instruments for developing the industrial sector and promoting exports from Moldova”, which was held in Chisinau on December 10. “Even in this period, when the economic situation is not the best one, the industrial sector saw a slight grow of 4% compared with the first nine months of last year. But the possibilities offered by these instruments are not fully used. We have yet a lot to learn from the international practice,” said the official.
● FRIDAY, December 11
Fuel prices go down
A number of filling stations posted lower fuel prices in the morning of December 11. The price of gasoline declined by 0.4 lei/liter, while that of diesel fuel – by 0.6 lei/liter on average. Seven oil companies, four of which import fuels, notified the National Agency for Energy Regulation of price decreases. The Agency’s press officer Anatol Barbei has told that the average selling price of gasoline at the seven companies fell to 17.33 lei/liter, while that of diesel fuel – to 14.95 lei/liter.
Moldova’s Railways presents two renovated locomotives
Moldova’s Railways has presented two locomotives that had been renovated at the Basarabeasca depot for four years. The company’s director Iurie Topala said these locomotives could no longer be used, but now, after renovation, they will be exploited for five more years. The two locomotives are about 50 years old. The renovation cost about 10 million lei. Iurie Topala said Moldova’s Railways does not have money to purchase new locomotives, which cost about €4 million. That’s why they had to renovate the old ones.
Profit opportunities on berries market
The production of berries offers opportunities of making profit. Rises of up to 500% in revenues were recorded over the last few years alone. The estimates were made in the first conference of berry producers of Moldova, which was held in Chisinau on December 11. “We aim to help the farmers increase productivity and revenues from this business by system interventions that would make the market sustainable,” said Anatol Palade, director of the Business Consultancy Center that is implementing the project “Access to Market and Improvement of Berry Productivity”(AMIB). Experts of the project said the planning of sales, depending on the demand on the market, is an important aspect of the berry business. It is also important to ensure a longer period for keeping the berries fresh.
Prices will continue to rise, while incomes to decline
The annual rate of inflation in November was by 0.3% higher than a month before and by 7.8% higher than last November. According to the information provided by the National Bank of Moldova, the annual inflation will continue to grow, also because of the unfavorable weather conditions this year and the low comparison base of last year. In November, food prices rose by 2.84% on October. The prices of fresh vegetables, bakery products, fats and meat increased owing to this summer’s drought, which seriously affected crops and to the depreciation of the national currency against the US dollar by 5.3% during the last three months.
Work on 2016 draft state budget law will be resumed after new Government is voted in
The draft state budget law for 2016 will be finalized after a new Cabinet is installed. Sources in the Ministry of Finance have told that a large part of the work on the 2016 draft budget was done. The ministers and other authorities were presented the expenditure limits for 2016 so that these pronounced on them. Afterward, they were included into a draft document. The dismissal of the Government led to the interruption of this process. “We are waiting for the new Government to be formed and for the IMF mission to come to Chisinau to consult the budget parameters with it. We will see what external financing we could get next year, including in the form of budget support, and will then finish work on the 2016 draft budget” said the source from the Ministry.
● SATURDAY, December 12
Transnistria’s executive approves budget
The unrecognized executive of the Transnistrian region approved the budget for 2016. The budget provides for a total expenditure of 4.7 billion rubles and incomes of 2.3 billion rubles. Thus, the budget deficit will be over 2 billion rubles. For paying pensions on time to the full extent, the social insurance fund will be guaranteed by reducing the insurance level of the republican budget. The expenditure does not take into account all the necessities of the budget institutions, which were estimated at about 6 billion rubles. But it includes money for clearing the salary arrears that totaled 393 million rubles on December 1, 2015.
