● MONDAY, July 30
Sergiu Puscuta: Fiscal reform will lead to price decreases
The fiscal reform that was recently adopted by Parliament will lead to lower production costs and, respectively, to decreases in the prices of different products, head of the State Tax Inspectorate Sergiu Puscuta stated in the talk show “Reply” on Prim TV channel. Sergiu Puscuta said the reform is much wider. The whitening of the black market means higher pensions for employees in the future, compared with the current payments. The reform was done so that no category of salary earners is affected. According to him, the reform will lead to declines in production costs and, respectively, to decreases in the prices of different products.
Over 300 female entrepreneurs trained to diversify business activity
More than 300 female entrepreneurs from 20 districts were trained to diversify the activity, marketing and sale policies as part of the Business Academy for Women (BAW) Project. The activities were presented in a news conference that was held on July 30 to close the project launched at the start of last year. Project manage Ana Sochirca said ten women who developed new business ideas during the training were chosen to benefit from non-reimbursable financing of €6,000 each. The female entrepreneurs took part in a series of training seminars to realize their entrepreneurial potential by developing the business management skills. As a result of the training, there was created a platform of entrepreneurs who will exchange experience.
Public Property Agency director explains why Air Moldova is sold at low price
“We want Air Moldova to develop and offer high-quality services to travelers and the brand to be maintained,” Vladimir Baldovici, director general of the Public Property Agency, stated in a news conference held to launch a new privatization round that will take place during July 27 - September 3. The airline Air Moldova is privatized and will be exhibited for sale at an initial selling price of 48 million lei. Asked by the journalists if the price is not too small, Vladimir Baldovici said so far this year Air Moldova accumulated debts of 150 million lei and the company’s debts now total over 1.2 million lei. Thus, the initial price was set taking into account the state-owned airline’s debts that will have to be cleared by the potential buyer.
NBM penalizes two shareholders of Fincombank
The Executive Board of the National Bank of Moldova (NBM) fined two direct holders of shares in “Banca de Finante si Comert” (Fincombank) for not providing complete information and the documents required by the Bank for supervising and assessing the quality of shareholders. In a press release, the NBM says the fine represents 1% of the shareholdings of the two owners and this will be transferred to the state budget. The Bank said Fincombank works as usual and provides all the services, including those related to lending, depositing and settlemen
Employers association states support for tax initiatives
The employers association “National Association of Restaurants and Recreational Places of the Republic of Moldova” (MAR) said it supports the package of tax initiatives aimed at easing the fiscal burden and reducing the pressure on the business community that was adopted by Parliament. A press release signed by the Association’s president Aneta Zasavitski says the proposed measures favor the businesses. The Association welcomes the measures that envision the introduction of the reduced VAT rate for activity in the hotel, restaurant and café sector. The entrepreneurs could choose between a standard fiscal regime and a special one. “These measures are a real reform and encourage us to develop for the benefit of consumers and to create new jobs and ensure economic growth,” it is said in the press release. It is also noted that a constant and constructive dialogue between the government and the business sector is the only way for growing the business in Moldova, encouraging tourism and foreign investment and combating the underground economy.
● TUESDAY, July 31
Education Ministry should develop capacity to use external funds, audit
The financial reports on the implementation of the Moldovan Education Reform Project provide a reliable picture of the financial situations on December 31, 2017. This is the main conclusion of the Court of Auditors’ audit report that was presented in a public meeting on July 30. The audit mission was initiated at the request of the Ministry of Education, Culture and Research in the conditions stipulated by the financing agreement. To implement the project, the Government of Moldova and the International Development Association in 2013 signed a financing agreement to provide Moldova with a loan of 26.1 million Special Drawing Rights, equal to US$ 40 million. The implementation period was April 2013 – June 2018, but this was extended until June 2019. As a result of the reorganization of the project in 2017, the World Bank and the Ministry of Education, Culture and Research in 2018 agreed on the provision of additional financing of 7.1 million Special Drawing Rights and on the extension of the implementation period until June 30, 2020.
There is potential to increase exports to EU by at least 10%, Pavel Filip
A European audit mission is to be invited to Moldova next September as a result of which the Moldovan authorities hope to obtain permission to export poultry and hen eggs to the European Union. From among products of animal origin, Moldova now exports honey and caviar. Honey exports to the EU in 2017 came to about 3,700 tonnes. The subject was discussed in a working meeting of the governmental team. The authorities pledge to mobilize and fulfil all the necessary conditions so that the audit mission is successful. Pavel Filip instructed the competent authorities to set clear time limits for each measure so that the audit mission ends successfully. Among the main measures that are to be taken are the equipment of a specialized laboratory, creation of a national center for processing meat industry waste, continuation of the harmonization of the national legislation to the European one and enhancement of the capacities of the national competent institutions.
Moldova’s Railroads accumulated salary debts of 100m lei
Prime Minister Pavel Filip requested the administration of Moldova’s Railways to clear the salary debts, to optimize the costs and to strategically reorganize the state-run company. In a meeting with officials in charge of the sector, Pavel Filip criticized the administration for the defective management of the company. The Premier expressed his indignation at the fact that the company’s employees haven’t been paid for three months and the salary arrears rose to 100 million lei. “With such organization, you will get nowhere. How do you intend to overcome the crisis when you have 40 enterprises that provide services? You have cars that stay in the garage without wheels, but you indicate that these consume diesel fuel. Why?” asked Pavel Filip. He instructed that the company should be transferred from the Ministry of Economy and Infrastructure to the Public Property Agency. Last year, the Government approved the concept for the restructuring of the railroad sector and Moldova’s Railways for 2018-2021. The Ministry of Economy and Infrastructure and Moldova’s Railways were to work out a plan of action for implementing this.
New requirements imposed on exporters of vegetable products to Russia
As of July 27, the information about the producer is indicated on the label attached to each unit of packing and also in the phytosanitary certificate that allows exporting vegetable products from Moldova to Russia, the National Food Safety Agency has said. According to the Agency, the condition is mandatory for all the vegetable products. The Federal Service for Veterinary and Phytosanitary Surveillance of Russia warned that if this requirement is not met, the consignments will be stopped until the production place is determined. The number of producers registered with the Agency’s local subdivision can be included in the phytosanitary certificate for export.
Common Central Securities Depository becomes functional
The Common Central Securities Depository started work on July 31. The new institution is responsible for the registration, clearing and settlement of securities issued by entities in Moldova. At the initial stage, the Depository will work with the securities issued by the Ministry of Finance and the financial instruments of the National Bank of Moldova. The operations will be performed by entities that act as participant in the Depository. Among these are the National Bank of Moldova, the Ministry of Finance and licensed banks. As of December 31, 2018, the Depository will serve corporate securities and investment societies. The functioning model of the Depository is based on international standards and practices in the field of settlement systems. The relevant national legislation was adjusted to the EU regulations.
● WEDNESDAY, August 1
Court of Auditors: Expected impact of MPay service can be achieved by cooperation and transparency
Despite particular results achieved, there is place for improvements as to the stimulation of the process of technological modernization that limits the achievement of the expected impact of the government e-payment gateway MPay, the Court of Auditors says in an audit report on the performance of the service that was examined in a public meeting on July 31. The audit covered the activities carried out in 2013-2017 by the State Chancellery, the Ministry of Finance, the Public Institution “Electronic Governance Center (E-Government)”, currently the Electronic Governance Agency, the Special Telecommunications Center and the Information Technology and Cybersecurity Center. Particular information was collected from beneficiaries or potential beneficiaries of the given service.
Carriers seek higher fares for interurban trips
The carriers demand to increase the fares for interurban bus and minibus trips by at least 0.10 lei per kilometer. The demand was addressed to Minister of Economy and Infrastructure Kiril Gaburici in the July 31 meeting of the national commission for collective consultations and negotiations. Contacted by IPN, executive director of the Union of Carriers and Road Workers of Moldova Eugen Datsko said the demand is compliant with the Supreme Court of Justice’s decision made five years ago by which the authorities were obliged to increase the fares for interurban trips following lawsuits filed by carriers. The executive director of the Union of Carriers and Road Workers of Moldova said the last time the interurban route fares were raised in 2012, also by 0.10 lei per km. Now the average tariff is 0.48 lei per km.
Regulations on procurement of financial services to be modified
The regulations concerning the procurement of financial services by state-owned and municipal enterprises and commercial societies with complete or majority public capital will be updated. If only one bid is submitted in the rerun tender contest for the procurement of financial services, the contest will continue and will not be suspended. The prudential norms should be respected by the banks that provide financial services. If the prudential norms are not met in the period between the signing of the contract for the procurement of financial services and its expiry, the contact will be mandatorily terminated. The amendment bill provides that the situations regarding the obtaining bank loans are not regulated by the given guidelines. In the regulations’ text, the notion ‘financial institution’ is substituted with ‘banking institution’ in accordance with the law on the activity of banks of October 6, 2017.
Регламент о закупке финансовых услуг изменен
Регламент о закупке финансовых услуг государственными /муниципальными/коммерческими предприятиями с полностью или преимущественно публичным капиталом будет обновлен. Если при организации повторного конкурса по закупкам финансовых услуг будет представлено только одно предложение, конкурс продолжится и не будет приостановлен. Другое изменение относится к пруденциальным нормам, которые должны соблюдаться банками, предоставляющими финансовые услуги. В случае несоответствия пруденциальным нормам в период до заключения договора о приобретении финансовых услуг и до истечения срока его действия, конкурс на приобретение финансовых услуг будет аннулирован в обязательном порядке. В проекте изменений указано, что ситуации получения банковского кредита не подпадают под действие данного регламента. При этом в тексте регламента заменено понятие финансовое учреждение понятием банк, в соответствии с Законом о деятельности банков от 6 октября 2017 года.
THURSDAY, August 2
Normative framework does not enable to set real value of property owned by Finance Ministry, auditors
The audit mission of the Court of Auditors of the Republic of Moldova was unable to pronounce on the accuracy of the value of property indicated in the consolidated financial reports of the Ministry of Finance for 2017, including buildings – 375.6 million lei, assets – 57.7m lei and land – 30.6m lei. This limitation was determined by the national normative framework on the assessment of public and private property of the state, which does not stipulate uniform criteria for setting the real value. The audit report was presented in the Court’s August 1 meeting. For example, the administrative building of the central staff of the Customs Service has an accounting value of 25.3m lei, while the cadastral value is 36.8m lei, by 11.5m lei higher. The administrative building of the Giurgiulesti-Galati customs post, being registered with an accounting value of 43.6m lei, has the cadastral value of 0.2m lei. The administrative building of the Leuseni customs post has an accounting value of 42.5m lei and a cadastral value of 1m lei. The land at 30 Starostenco St in Chisinau that belongs to the Customs Service has an accounting value 3,000 lei, while the cadastral value is 30m lei.
Population warned about early harvesting of walnuts
The early harvesting of walnuts leads to a lower yield the next years, affects the quality of walnuts and causes damage to the trees, specialists of the Ministry of Agriculture, Regional Development and Environment have warned. In a press release quoted by IPN, the Ministry says the damaging of walnut trees carries a criminal penalty. The law on walnut trees bans the early harvesting of walnuts as this leads to a lower quality of walnuts and derivatives. In the weather conditions existing in the Republic of Moldova, walnuts become ripen in September and this is the optimal harvesting period.
Center of Information Technology in Finance created
The enterprises Fintehinform, Fiscservinform and Vamservinform were reorganized into the Center of Information Technology in Finance. The reorganization process was completed on August 1. The new institution took over the rights, obligations, duties and services from the three entities. The institution that is founded by the Ministry of Finance was created in the context of the public administration reform and its duty is to coordinate and organize the activities aimed at ensuring the implements ton of public policies in public finances, government procurement, fiscal and customs sectors, development of information systems and ICT infrastructure in the given areas. Corneliu Jaloba, who served as vice director of the National Regulatory Agency for Electronic Communications and Information Technology, was named as director of the new entity as a result of a public contest.
Chisinau-Odessa train to run daily
The Chisinau-Odessa-Chisinau train will run daily between August 6 and September 23 given the considerable rise in the number of passengers in the period. Currently, the train runs for four times a week, from Thursday through Sunday. The decision was taken at the request of Minister of Economy and Infrastructure Kiril Gaburici. The train leaves Chisinau at 6.57am and arrives in Odessa at 10:46am. Customs control is performed inside the Chisinau Railway Terminal before passengers get onto the train. In Odessa, the train departs at 6:45pm and gets to Chisinau at 10:27pm. Tickets cost 142 lei to 185 lei, depending on the class. The fare for children is 50 to 65 lei. The train has four cars with three classes of travel. There is air conditioning in all the three classes.
Air Moldova relaunches direct Chisinau-Kiev-Chisinau flights
The airline Air Moldova on August 1 relaunched the daily direct Chisinau-Kiev-Chisinau flights. A one-way ticket costs €67 and up, with all taxes included. According to the schedule, the plane will take off from the Chisinau International Airport at 1:30pm and will land in Kiev at 2:20pm. The takeoff from Kiev was set at 5:10pm, while the landing in Chisinau at 6pm. Air Moldova launched the Chisinau-Kiev-Chisinau flights in October 2015, but halted them in January 2016.
● FRIDAY, August 3
Inflationist pressure will continue until this yearend
The annual rate of inflation will have a downward trajectory during the next three quarters as well and will reach a minimum of 1.9%-2% in the fourth quarter of 2018. Afterward the trajectory will invert and inflation will rise to 6.5% in the third quarter of 2019. The main inflation will have a similar trajectory, said first deputy governor of the National Bank of Moldova Vladimir Munteanu. As to the components of inflation, Vladimir Munteanu said the growth rate of food prices will decrease in 2018, with the inversion of the trend in the second half of next year. The annual pace of regulated prices will diminish in the current quarter to minus 4.4%, taking into account the reduction in electric power and gas tariffs. Later, it will accelerate to over 10% in the second half of 2019. After the growth in the current quarter (US$70-80 barrels), the annual growth rate of fuel prices will have a downward trajectory throughout the forecast period. The annual rate of the Consumer Price Index decreased from 4.7% in March to 3.2% in June 2018, to under the interval of the National Bank’s target inflation (5%, plus-minus 1.5%).
Transfers from abroad up 9.3% in second quarter
The cash transfers from abroad to private individuals in Moldova in April-June this year came to US$342.59 million. Almost 85% of the remittances came through money transfer systems. According to the National Bank of Moldova, the recalculated value in US dollars in the second quarter this year was by 14.2% higher compared with the value in the corresponding period last year. The fluctuations in the exchange rates of the original currencies against the US dollar contributed 4.9%. Eliminating the effect of the exchange rate by recalculating the sums at the rate in the similar period last year, the real growth in transfers was 9.3%. Transfers from the EU represented 39.9% of all the transfers, up 6.2%% compared with the second quarter of 2017. Remittances from the CIS made up 29.2%, down 7.1%, while from other states – 30.9% in the second quarter of 2018 and 30% in the second quarter of 2017.
Road that bypasses Ungheni town inaugurated
The road that bypasses Ungheni town on a distance of about 8 km was inaugurated in an official ceremony on August 3. The road will ensure direct access to the Sculeni border crossing point. It was built with €8.63 million provided by the EU in grant aid and 20 million lei allocated from the Road Fund. According to the authorities, the new road will allow at least 400 heavy trucks to daily bypass the center of Ungheni. This will reduce traffic congestion and pollution and will improve the quality of life for the over 35,000 inhabitants of Ungheni and the neighboring villages. The road was built by the Czech company OHL ZS and its Moldovan subcontractor Rutador. The construction of the bypassing road forms part of a broad program to modernize and build key roads in the country with different investments and non-reimbursable financing to the value of €670 million, provided by the EU, the EBRD, the EIB, the WB and the U.S. Government’s foreign aid agency Millennium Challenge Corporation.
● SATURDAY, August 4
Agriculture Ministry suggests staging Plum Festival
The Ministry of Agriculture, Regional Development and Environment proposes organizing the Plum Festival on the third Sunday of September. A relevant draft Government decision was proposed for public debates on particip.gov.md. The informative note to the draft decision says the goal of the festival will be to present Moldova as a leader in cultivating plums. The event will serve as a platform for implementing the most advantageous technologies and good practices in the field and will contribute to the socioeconomic development of the regions and the county in general. Horticulture is one of the agricultural sectors of the country with economic potential that can bring value added in any conditions, contributing substantially to the Gross Domestic Product and generating income for developing localities. The average annual plum harvest in Moldova in 2015- 2017 was 97,680 tonnes gathered from about 18,860 hectares of orchards, with an average productivity of 5.05 t/ha per country. Moldova annually exports 35,000-37,000 tonnes of plums, mainly to Russia, Belarus, Ukraine and Romania.
