● MONDAY, January 09
New criteria for choosing large taxpayers from among legal entities
The State Tax Service modified the criteria for selecting large taxpayers from among legal entities. Thus, 80% of all the taxpayers will be chosen according to the descending turnover reported in fiscal reports for the management period previous to the period when updating is made and/or to the value declared in the fiscal reports for 11 months of the current year. In a press release, the Service says 20% of the taxpayers will be selected based on the descending volume of taxes declared and paid for the year that precedes the year when the updating is made and/or for 11 months of the year.
Employers expect better working conditions for business entities in 2017
The National Employers Confederation of Moldova in 2017 expects better working conditions for business entities, including the diminution of obstacles placed on their way. Contacted by IPN, the Confederation’s chairman Leonid Cerescu said the number of state inspections should be decreased in order to ensure prodigious activity. “Investment in the Moldovan economy should be increased. There are preconditions for this, such as the cooperation agreement with the International Monetary Fund. Larger investment would mean better economic growth potential,” stated Leonid Cerescu.
● TUESDAY, January 10
EU disburses budget support assistance to Moldova under four programs
€ 45,3 M of budget support assistance funds provided by the European Commission have reached the budget of Moldova. This amount corresponds to budget support disbursements under four programs: Economic Stimulation in Rural Areas (ESRA), European Neighborhood Program for Agriculture and Rural Development (ENPARD), Public Finance Policy Reform, and Vocational Education Training, IPN reports, quoting a press release published on the website of the EU Delegation to Moldova. These payments are not related to new Budget Support programs but are connected to existing programs that have been ongoing since their signature before 2014. To allow for this, the Government of the Republic of Moldova has met the conditions and achieved some of the results linked to these four budget support programs.
Fuel prices go up again
The price ceilings for gasoline and diesel fuel were raised again. For the next two weeks, the National Agency for Energy Regulation set a price ceiling of 17.99 lei per liter of gasoline coded 95, up 0.63 lei compared with the last two weeks, and of 15.61 lei per liter of gasoline, up from 15.17 lei. The new prices take effect on January 11 and will be used until January 24. Two weeks ago, the fuel price ceilings were increased by the Agency by 0.39 lei for gasoline and by 0.26 lei for diesel fuel.
An important step towards transparent procurement of electricity in Moldova
The Energy Community Secretariat and the Ministry of Economy of Moldova have finalized the Guidelines for the Annual Procurement of Electricity, IPN reports. Such Guidelines are of great importance for a market depending on only a few potential sources of electricity. According to a press release published on the Energy Community’s website, most importantly, the Guidelines provide that procurement of electricity in Moldova will be monitored by a Group of Observers constituted by Moldovan officials, as well as representatives of the Energy Community Secretariat and the EU Delegation to Moldova. The Group of Observers will ensure that the procurement process is transparent and non-discriminatory.
● WEDNESDAY, January 11
IT and automotive industries must become key for attracting investment, opinion
The IT and automotive industries are world leaders as regards investment expansion. These sectors must become key for attracting investment to Moldova, experts Sergiu Gaibu and Adrian Ciofu stated in the program “60 minutes of economic realism”, staged by the Institute for Development and Social Initiative “Viitorul”. “Viitorul” expert Sergiu Gaibu said particular steps in this direction have been taken. The Moldovan Investment Attraction and Export Promotion Organization was slightly reinvigorated, but is anyway much under the necessary level of human resources. Furthermore, the Ministry of Economy cooperates more intensely with the Ministry of Foreign Affairs in a move to ensure the attraction of foreign direct investment through commercial attaches.
Food safety watchdog to more strictly control pisciculture
The National Food Safety Agency will more strictly control the fishing industry, the institution’s director general Gheorghe Gaberi announced in a news conference. According to him, only 10% of the national lakes were fish is bred received sanitary-veterinary authorizations. Gheorghe Gaberi said that about 20,000 tonnes of fish from almost all the seas and oceans were imported into Moldova last year. To make sure the imported fish is safe, the watchdog issued a number of orders to ensure control over the fish products. So far they checked each third imported consignment, but from this year all the consignments will be checked.
Credibility of oil prices cannot be ensured by capping, expert
The state can intervene in the oil products market only by competitive mechanisms. The current mechanism by which the National Agency for Energy Regulation caps the oil prices cannot solve the problem, considers expert of the Institute for Development and Social Initiative “Viitorul” Victor Parlicov, ex-director of the energy regulator. Asked by IPN to comment on the fourth consecutive rise in oil price ceilings, Victor Parlicov said the state does not appropriately intervene in the market. “The prices based on which the Agency does the calculations are not public information and cannot be checked. The problem of credibility of oil prices cannot be solved by capping. All the attempts to substitute the competitive mechanisms by all kinds of administrative props are doomed to failure,” he stated.
National youth economic empowerment program extended until 2017
The young entrepreneurs will be able to benefit from training and financing from the state for implementing business ideas in 2017 as well. The Cabinet decided to extend the national youth economic empowerment program for one more year. According to the Government’s press service, over 20 million lei will be allocated in 2017 for co-financing about 170 businesses developed by young people. The age limit for the potential beneficiaries of the program was increased from 30 to 35.
New quality requirements for selling fresh fruit and vegetables
The Cabinet approved a series of amendments and supplements to the quality requirements for selling fresh fruit and vegetables, which adjust the national norms to the European and international standards in the field. Under the bill, the fruit and vegetables will be divided into categories according to their quality, sort, exterior and form. This defines the specific requirements concerning the classification, sorting, packing and marking of products.
● THURSDAY, January 12
New powers for Premier’s Economic Council
The Economic Council working under the Prime Minister will also fulfill the duties of the National Trade Facilitation Committee that was constituted on June 9, 2016 in accordance with the commitments assumed by Moldova before the World Trade Organization (WTO), IPN reports, quoting a Government decision. The Committee was empowered to discuss and work out solutions to problems of national importance related to foreign trade. It will also examine and promote investment projects needed to implement the WTO Trade Facilitation Agreement.
Fresh layer of snow protects sowed fields
The snow that fell in the recent past is very beneficial to sowed fields as it will protect the crops from very lower temperatures and will ensure the moisture needed by soil. Contacted by IPN, Deputy Minister of Agriculture and Food Industry Ion Parea said the cold period for the winter crops started badly as the soil was dry and could not be plowed on time. When it is frost, the crops are affected if they are not covered by snow. The wheat, barley and rape are the most vulnerable ones. The layer of snow that formed mainly in central and southern Moldova following the recent snowfalls will protect the plants, at least for a period. The development of crops depends on the subsequent weather. The deputy minister noted the precipitation didn’t affect the trees and vineyards as there was no hoarfrost.
Bill to amend Law on Limited Liability Companies
The Ministry of Economy drafted a bill to amend and supplement the Law on Limited Liability Companies. The proposed amendments regulate the obtaining of an inherited capital share in a limited liability company, if the capacity of associate of the new shareholder is rejected by the associates of the Ltd. The Constitutional Court, which examined the existing relevant regulations, ruled there may be cases when the capacity of new associate of the shareholder is rejected by the associates of the Ltd given that the limited liability company is founded and works based on the will and mutual confidence of associates. But the rejection should not affect the property right of the one that obtains capital shares, this being entitled to get the equivalent in money of the shareholding.
WB forecasts 2.8% economic growth for Moldova this year
The World Bank forecast an economic growth of 2.8% in Moldova in 2017, IPN reports, quoting the WB Global Economic Prospects. In 2016, growth in Moldova strengthened to 2.2% after the recession of 2015. Russia is expected to expand 1.5%, Romania 3.7%, while Ukraine 2%. The WB report says investment at the global level is weak owing to lack of confidence. This recommends the states to relax their fiscal policies so as to enable the national economies to develop. The 2017 state budget of Moldova envisions an economic growth of 3%.
● FRIDAY, January 13
40% of active population is employed in Moldova, as opposed to 65% in Europe
In Moldova, 40% of the active population is employed, as against the European average of 65%. This is a risk for society on the whole as the fiscal contributions of those who work are not sufficient for paying pensions in Moldova, expert of the Institute for Development and Social Initiative “Viitorul” Sergiu Gaibu stated for IPN. According to him, the mass exodus abroad is one of the causes of the low percentage of working people in Moldova. “The average employment rate in Europe is about 65%. I think it would be logical for the same percentage to exist in Moldova. The rest are persons with disabilities and mothers who look after children. These 25% represent the massive discrepancy that was caused by the precarious economic situation in and the rather austere business environment,” considers the expert.
Over 300 companies to take part in “Made in Moldova” exhibit
More than 300 companies from Moldova and Romania announced their participation in the 16th exhibition “Made in Moldova”, IPN reports. For the first time this year, the Romanian companies will take part in the exhibition within a separate section entitled “Made in Iasi”. Another novelty is the presence of joint companies that are members of the Moldovan-Italian Chamber of Trade. According to the Chamber of Trade and Industry of Moldova, collective stands in the event will be set up by the districts of Leova, Rascani, Anenii Noi, Ialoveni, Cimislia, Criuleni, Nisporeni, Rezina, Hancesti, Floresti, Ungheni, Falesti, Calarasi, and the Autonomous Territorial Unit of Gagauzia. Producers and service providers working in different sectors of the national economy will also exhibit goods and services at individual stands. Among the companies that announced their participation are Bucuria, Franzeluta, Carpeta-MD, Icam, Polimobil, Floarea Soarelui, Ionel, Moldcoop, and Viorica-Cosmetic.
Polish loan available through Mobiasbanca
The credit support provided by the Polish Government can be accessed through Mobiasbanca. In a press release, the bank says it can offer its customers financing on favorable terms for the development of companies operating in the agro-food and industrial sectors of the Republic of Moldova. Thus, in order to develop their business, the customers can access, within the program, loans of €500 000 to €5 million, which will be offered for a period of maximum 12 years within the lending facility of the “Polish Loan” program. Companies that will apply for financing will additionally benefit from multiple advantages, such as affordable lending conditions, a wide range of equipment and services eligible for financing provided by entrepreneurs of the Republic of Poland, VAT and import fee at 0 (zero) rate.
● SATURDAY, January 14
European Commission proposes €100m in Macro-Financial Assistance to Moldova
The European Commission on January 13 granted a request by the Republic of Moldova by proposing a Macro-Financial Assistance (MFA) program of up to €100 million, IPN reports. The proposed assistance would help the country meet its short-term financing needs. Macro-Financial Assistance is an exceptional EU crisis response instrument available to the EU’s neighboring partner countries. According to a press release of the European Commission, up to €40 million of the MFA would be provided in grants and up to €60 million in medium-term loans at favorable financing conditions. MFA loans are financed through EU borrowing on capital markets. The funds are then on-lent with similar financial terms to the beneficiary countries. MFA grants come from the EU budget.
Why NAER raises price ceilings when price of barrel decreases?
Not even the most experienced trader can say how much the gasoline and diesel fuel will cost tomorrow because the prices are formed on international stock exchanges and are dictated by the daily supply and demand, Andrei Adam, head of the Licensing and Licensed Activities Monitoring Division of the National Agency for Energy Regulation (NAER), stated for IPN. The expert was asked to comment on the Agency’s decision to raise fuel price ceilings the fourth consecutive time already. When asked why the NAER raises the price ceilings when the price of a barrel of oil decreases, Andrei Adam said the oil market is different from the market of fuels deriving from oil. For example, the price of a barrel of Brent oil on January 5 and 6 was US$56.8, but according to the Platts quotations, the price of a tonne of gasoline and diesel fuel rose by US$9 and, respectively, US$8 to US$545-554 and US$484-492 respectively. The NAER specialist also said the wholesale oil products market has its own prices. As a result of the capping of retail gasoline and diesel fuel prices by the Agency, the wholesale market is to adjust the supply independently.