● MONDAY, July 24
Draft fiscal policy for 2018 suggests new method of determining wear and tear
The records of fixed assets will be kept for financial and fiscal purposes per each fixed asset. The classification per categories of property will be excluded, according to the draft fiscal and customs policy document for 2018, IPN reports.
It is also suggested introducing a new method of determining the wear and tear of fixed assets for fiscal purposes – the liner one, which provides more advantages such as simplification of the determination way both for the business entity and the inspection body, diminution of the time and personnel needed to determine and keep a record of wear and tear and exclusion of the risk of mistakes in the determination process and punishment by inspection bodies. According to the Ministry of Finance, a balance will be thus ensured and it will be possible to estimate the costs allowed for deduction given that the fiscal losses are reported in arbitrary sizes.
Rankings of banks by loans to private individuals
Private individuals took out consumer loans in the amount of 3.78 billion lei. These loans represented 53.4% of all the loans intended for private individuals. These are followed by home loans of 2.4 billion lei or 33.9% of the total and loans for developing businesses of 0.9 billion lei or 12.7%, says the publication “Trend Hunter” issued by the economist of the Institute for Development and Social Initiative “Viitorul” Veaceslav Ionita, who compiled the rankings of banks by loans to private individuals based on a number of criteria. The study says lending to individuals is concentrated in three of the 11 commercial banks operating in Moldovan. These are Moldova Agroindbank (MAIB), MobiasBanca and Moldindconbank. The three banks, which lent 5.35 billion lei of the total of 7.08 billion lei, hold together 75% of the market of loans intended for private individuals. The rankings, which feature also Victoriabank and Fincombank on the fourth and fifth places, are based on the volume of loans released to individuals.
Mobiasbanca awarded by Euromoney
Mobiasbanca is the Best Bank in Moldova, according to the Euromoney Awards for Excellence 2017.The excellence of Mobiasbanca’s products and services was highly appreciated and awarded at the Euromoney 2017 Excellence Gala Awards, in a recent ceremony that took place in London. The award reconfirms internationally the quality and accuracy of the policies pursued by Mobiasbanca to meet the needs of its customers through innovative banking products and services and to provide modern solutions and simplified processes. Antoine Gabizon, President of the Management Board - CEO of Mobiasbanca, said the bank is committed to support the growth of its clients’ businesses, to increase operating standards and trust regarding the banking system. “We are honored to receive such a prestigious distinction, which confirms Mobiasbanca’s role in financing the national economy,” he stated.
● TUESDAY, July 25
New version of law on advertising proposed for debates
The current law on advertising contains confuse provisions and multiple shortcomings. In time it was amended 13 times, with 42 changes being made to it. A bill to replace the current law was presented in debates staged by the Independent Journalism Center on July 25. The Center’s executive director Nadine Gogu said the discussions will continue within the parliamentary working group that was set up to examine the bill. “I hope the debates will produce a document that will be adopted in Parliament. A new law is needed because studies showed that the current law had been amended 13 times during the past 15 years and it would have been too many amendments if we had proposed new ones now. The current law contains shortcomings and confuse provisions that can be interpreted. Required provisions are absent, such as those on fair competition, especially in the mass media,” stated Nadine Gogu.
Changes to Labor Code diminish rights and guarantees of salary earners, opinions
Trade union leaders consider the recently adopted changes to the Labor Code diminish the rights and guarantees of salary earners and strengthen the position of employers. Representatives of the business community believe yet that the adopted amendments ultimately institute a balance in the regulation of relations between the employer and employees and facilitate the administrative work of business entities, Radio Free Europe reports on its website. Under the amendments, the reaching of retirement age became a reason that the employer can invoke to terminate the work contract. Sergiu Sainciuc, vice president of the National Trade Unions Confederation, said this “reason” is a hindrance to employees who want to work after they retire. “If the norm referred to a particular group, we could think that the state decided to protect a particular category of salary earners. In this case, the norm refers to all the persons and should be in principle declared unconstitutional as it will limit the right of elderly persons to work. On the one hand, we say the active persons should continue work. On the other hand, we must fire them,” he stated.
Fuel prices go up again
After raising the price ceilings for gasoline and diesel fuel by 0.30 and 0.37 lei respectively two weeks ago, the National Agency for Energy Regulation announced higher ceilings for the next two weeks as well. The price ceiling for gasoline was increased by 0.20 lei, while for diesel fuel by 0.22 lei.
Businessman suspected of instituting monopoly on exports of fruit and vegetables to Russia
A businessman was arrested on charges of abuse of power. This is suspected of instituting monopoly on the export of fruit and vegetables to Russia in collusion with employees of the National Food Safety Agency.The administrator of an Ltd bribed public servants to obtain the phytosanitary certificates needed to export vegetable products to Russia without the goods being checked. He also acted as an intermediary in issuing certificates to other agricultural producers in exchange for recompense.
PPPDA suggests measures to support SMEs
The party “Platform Dignity and Truth” (PPPDA) submitted a statement to the government whereby it suggests measures to support the small and medium-sized enterprises and ensure the socioeconomic rehabilitation of Moldova. According to PPPDA deputy head Alexandu Slusari, the measures were proposed in connection with the adoption by Parliament a year ago of the law that provides tax concession to micro, small and medium-sized enterprises. But this law hasn’t been yet implemented. The PPPDA suggests halving the income tax rate for micro, small and medium-sized enterprises operating in the production sector for the next five years, on condition that the given enterprises employ at least three persons and the average salary at the enterprise is not lower than the average official salary. Another proposal is to simplify the accounting procedures for these enterprises or to maintain the current system of commercial activity based on the entrepreneur’s patent for the next five years.
82 tonnes of “Moldovan” apples destroyed in Russia
A number of 82 tonnes of apples declared as being from Moldova were destroyed in Smolensk region of Russia. In a press release, Russia’s food safety watchdog “Rosselkhoznadzor” says the apples didn’t have the necessary phytosanitary certificates and the labels were damaged. After the apples were crushed, they were buried. The National Food Safety Agency of Moldova in a press statement confirmed that it didn’t issue authorizing documents for the export of the given batch of apples and officials of “Rosselkhoznadzor” for their part confirmed that the certificates of origin and accompanying documents weren’t genuine.
● WEDNESDAY, July 26
Most of scales used at markets are noncompliant
Many of the weighing machines used at the markets in Moldova are not tested metrologically and are not included in the state register. Vice director of the Consumer Protection Agency Grigore Cater in a news conference said that as a result of recent visits at a number of markets in the country, inspectors established that only 46% of the 902 used scales complied with the requirements, while 54% were noncompliant, illegal or weren’t tested metrologically. The inspectors didn’t withdraw the noncompliant scales for the reason that they made only visits and didn’t carry out inspections. The goal was to inform the vendors and consumers about the correct use of weighing instruments. However, after about a month and a half, when the information visits are over, inspections will start to be conducted and those who will not comply will be fined 6,000 to 9,000 lei and the fines will double in case of repeated deviations.
Commercial-economic bureau to be set up at Moldova’s Embassy in Rome
A commercial-economic bureau will be constituted at Moldova’s Embassy in Italy. Italy is an important economic partner of Moldova, which ranks third by the volume of exports and second by the value of investments made in Moldova, with 1,225 enterprises whose capital comes to over 1.7 billion lei. Italian business circles show a constant interest in Moldova. There is potential that needs to be realized, said the authorities.
THURSDAY, July 27
EU helps entrepreneurs in ATU Gagauzia and Taraclia district to start businesses
Sixteen entrepreneurs from ATU Gagauzia and Taraclia district received grants from the European Union for a value of up to €17,900 each. The support will enable to start new businesses and develop small and medium-sized enterprises, resulting in the creation of over 90 new jobs. The entrepreneurs were selected out of 87 participants in the second round of the business projects’ contest organized by the “Support for Agriculture and Rural Development in ATU Gagauzia and Taraclia District” (SARD) Program, financed by the European Union and implemented by the UNDP. Besides the non-refundable financial support, selected entrepreneurs will benefit from technical assistance and consultancy over one year.
Central bank presents monetary policy decision
The Executive Committee of the National Bank of Moldova on July 26 decided to maintain the base rate on the main short-term monetary policy operations at the current level of 8% a year. Consequently, the interest rates on the permanent instruments will also be maintained, said the first vice governor of the National Bank Vladimir Munteanu. The Executive Committee also decided to maintain the mandatory foreign exchange reserves attracted in Moldovan lei and nonconvertible currency at the current level of 40% of the calculation basis and the mandatory foreign exchange reserves attracted in freely convertible currency at the current level of 14%. “Such a decision was taken based on the dynamics of the macroeconomic indicators, the results of the most recent analyses and assessments and the need to estimate the impact of the previous monetary policy actions,” stated Vladimir Munteanu.
Executive approves budgetary framework for 2018-2020
The Cabinet agreed the medium-term budgetary framework for 2018-2020, which is designed to ensure the predictability and continuity of the public policies financed from the budget. The document is an updated version of the medium-term budgetary framework for 2017-2019 with forecasts and analyses extended until 2020. Among the key objectives are to do structural reforms, to consolidate public finances and financial stability, to optimize the use of budgetary resources and to redirect the existing funds to programs of major importance.
JICA project for Moldovan SMEs
The Ministry of Economy and Infrastructure discussed the possibility of implementing a technical/financial assistance project to support Moldovan small and medium-sized enterprises, including small farmers, with the Japan International Cooperation Agency (JICA). A final decision will be taken by JICA until this October. The value of the technical assistance that will be provided to Moldova in this regard will become known then. Deputy Prime Minister Octavian Calmac, minister of economy and infrastructure, said one of the Government’s priorities in the process of developing SMEs is to create instruments of support for realizing the regional potential of the national business entities and developing new instruments for marketing products on foreign markets that are not traditional for Moldovan products. Japan’s experience in supporting local producers and using the competitive advantage to create industrial regional development poles will essentially contribute to achieving these objectives.
● FRIDAY, July 28
Money for owners of farmland located beyond Rabnita-Tiraspol route
A draft Government decision published at the platform particip.gov.md envisions the allocation of 7.9 million lei from the executive’s reserve fund to the Dubasari District Council for making direct payments to the owners of farmland located beyond the Rabnita-Tiraspol route for 2017. The owners of farmland are to get by 1,229.68 lei per hectare of owned farmland, based on the regulations approved by the Dubasari District Council.
Balti company to assemble solar collectors
The Balti-based company “Raut” will produce the first solar collectors in Moldova within the project “Strengthening local capacities to produce solar collectors in the Republic of Moldova”. The first line to assemble 100 solar collectors was launched on June 27. According to the Ministry of Economy and Infrastructure, the solar collectors will be assembled by technical personnel that were trained in Poland and Moldova. The raw material for assembling the 100 vacuum tube solar collectors was imported from Poland.
Passengers of July 26 Rome-Chisinau route to be recompensed
The passengers of the Rome – Chisinau route of July 26 will be compensated by Air Moldova for the 1.5 hour delay at the Fiumicino airport caused by an inspection of the plane. In a press release, Air Moldova says its aircraft Airbus A320 was examined at the Rome Fiumicino Airport by inspectors of the Safety Assessment of Foreign Aircraft of Italy. All the airlines and their planes are subject to such an inspection that is unplanned and the authorities of each state decide when and how the plane is to be examined, often on an ad hoc basis.
● SATURDAY, July 29
Sweden to assist Moldova in carrying out study in energy sector
Sweden will offer the Moldovan authorities the assistance needed to carry out a study in the energy sector, Sweden’s Ambassador to Moldova Signe Burgstaller stated in a meeting with Deputy Prime Minister Octavian Calmac, Minister of Economy and Infrastructure. According to the Ministry of Economy and Infrastructure, the diplomat said the Swedish authorities will assist the Government of Moldova in the process of modernizing the national energy sector, especially in implementing energy efficiency projects, projects to optimize the heating system in Chisinau municipality and others.