● MONDAY, March 10
Euro will not return to exchange rates of previous years
The euro will depreciate, but will not return to the exchange rates of the previous years, considers economic expert Adrian Lupusor, executive director of the think tank “Expert-Grup”. The expert said there are no economic bases for the euro to return to the exchange rate of 16-17 lei per euro. According to Adrian Lupusor, the National Bank of Moldova cannot directly influence the euro-leu exchange rate as the national currency is connected directly only with the rate of the dollar. In order to stabilize the situation, the central bank in the first two months of this year intervened with over US$700 million in the internal currency market. Thus, the leu-dollar exchange rate became stable. The leu even started to appreciate compared with the previous days. The euro-leu rate is influenced directly by the developments on foreign markets. According to forecasts, the euro will depreciate as the factors that led to its over-appreciation are short-term ones.
● TUESDAY, March 11
Moldova may be excluded from international system TIR, expert
Moldova risks being excluded from the international road transport system TIR, well-known economic analyst Alexandru Burdeinyi, who manages InfoMarket Agency, projected in a comment. According to the analyst, the conflict between members of the International Association of Road Haulers (AITA) of Moldova endangers the contrary’s future participation in the TIR system. The TIR carnets enable the holders to swiftly go through customs procedures because the payment of customs duties in a country is guaranteed by the TIR system. Being recognized in a number of countries, the TIR system essentially reduces haulers’ costs and time spent. The analyst said that Moldova’s exclusion from the TIR system will entail huge losses for haulers, beneficiaries and the budget. Today, the transport sector accounts for about 11% of the GDP, while 75% of the budget revenues come from customs duties paid on the import of freight.
Central bank governor says situation on currency market is balanced
After a record high of the exchange rate of the euro against the leu was witnessed on March 10 – 18.94 lei per euro – the official exchange rate fell today by 0.10 lei to 18.84 lei per euro. Governor of the National Bank of Moldova Dorin Dragutanu said the oscillations on the currency market are due exclusively to the appreciation of the European common currency on the world market. “The central bank took no action in this respect,” he stated. “As to the exchange rate of the leu against the dollar, the market has stabilized. During the last few days, the leu has slowly appreciated against the dollar and today (March 11) the leu’s rate is by about 0.05 lei higher than yesterday.”
Decision on Moldova’s eligibility for second Compact will be taken in December
In December, the Board of Directors of the Millennium Challenge Corporation (MCC) will adopt a decision of principle as to whether Moldova is eligible for the second Compact country program or not, Prime Minister Iurie Leanca said in an interview for Radio Moldova. The implementation of the current Compact financed by the U.S. Government through the MCC with a grant of US$262 million started in September 2010 and is to be completed in 2015. According to the official, the money allocated by the MCC is spent with maximum responsibility. The two components of the program – the reconstruction of 93 km of the Sarateni-Soroca road and Transition to High Value Agriculture with the rehabilitation of the centralized irrigation systems - are implemented correctly. The road is to be put in commission in summer. The irrigation systems are being rehabilitated and transferred to water users associations.
● WEDNESDAY, March 12
Pre-Completed Statement application to facilitate calculation of taxes
Private individuals who have an electronic key can use gratis a new information solution for submitting tax returns for the previous year. The recently launched Pre-Completed Statement application is based on the data about salaries paid to employees, received from employers, which is available in the information system of the State Tax Service. The Pre-Completed Statement is a technical solution designed to facilitate the calculation of taxes. It is only informative in character. It is the task of private individuals to submit tax returns. “The individuals will verify the information in the Pre-Completed Statement, will add the incomes that weren’t indicated there, if there are such, will sign it and will send it to the tax body, accessing the personal office on www.fisc.md,” Veronica Vragalev, division head at the Main State Tax Inspectorate, explained in the first meeting of the State Tax Service’s press club. If the person does not have an electronic key, they can print the completed statement and take it to one of the local tax offices.
Chisinau to host meeting of Vienna Economic Forum
The Ministry of Economy and the Moldovan Investment and Export Promotion Organization will hold a meeting of the Vienna Economic Forum in Chisinau on June 10-11. Deputy Prime Minister and Minister of Economy Valeriu Lazar said it is a large-scale event designed to strengthen the efforts aimed at attaching foreign direct investment. According to the draft agenda, the event will involve national entrepreneurs, representatives of business associations, financial institutions and of foreign companies representing the Vienna Economic Forum.
Sales of over 1bn lei on Internet access services market
The Internet access services market in 2013 continued to grow. The number of subscribers to such services rose to over 700,000, while sales on the market exceeded 1 billion lei. According to the National Regulatory Agency for Electronic Communications and Information Technology, the cumulative revenues from sales of Internet access services of the three mobile phone carriers - SA “Orange Moldova”, SA “Moldcell”, and SA “Moldtelecom” – increased by almost 30 million lei (+13%) on 2012.
● THURSDAY, March 13
PM seeks updated report on modernization of Chisinau Airport
Prime Minister Iurie Leanca asked for an updated report on the works to modernize the Chisinau Airport stipulated in the lease. If the planned actions are not carried out, the authorities can review the given contract, the Premier said in the program “Moldova live” on the public TV channel Moldova 1. Iurie Leanca said the Chisinau International Airport was leased out, not sold and remains state property. “The lease aroused controversy and reproaches against me. We thus decided not to privatize other facilities this year,” he stated. As to the situation at Banca de Economii, the Premier said the National Bank is responsible for what happens there and the authorities are concerned about the fact that the legislation makes the central bank vulnerable.
Several unprofitable state-run companies will be liquidated
Four state-owned companies that are managed by the Ministry of Economy will be liquidated. These are: the Center for Working out Industrial Management Systems; Shop No. 13 “Ceasuri”, the Self-managing Advertising and Assembly Sector, all from Chisinau municipality, and the Balti Students Eating Complex. Deputy Prime Minister and Minister of Economy Valeriu Lazar said the four companies haven’t worked for many years and do not have financial resources, equipment, fixed funds and realty, while their employees have been dismissed.
Strategy for developing agriculture sets out three development priorities
The strategy for devoting agriculture and the rural areas, approved by the Government, stipulates three development priorities until 2020. These are: to enhance agrifood sector’s competitiveness by modernizing and integrating the market; to ensure the sustainable management of natural resources, and to improve the living standards in rural areas. “If the agribusiness sector is competitive, the rural areas of Moldova will become attractive for working and living there, with the necessary infrastructure. Agriculture and the rural areas will furnish goods and services, conserving biodiversity and the cultural and traditional values for the future generations,” said Minister of Agriculture and Food Industry Vasile Bumacov. It is planned to intensify rural economic activity, to improve infrastructure and increase resistance to risks that affect the agrifood sector. The responsibility for developing the rural areas will be borne by the inhabitants of these areas, while the product of the education and research system will be related to the market needs.
Sales on pay television services market go up
The number of subscribers to pay television during a year rose by almost 5,000 (1.8%) to about 290,000. Sales on this market segment grew by 2 million lei (1.2%) to over 168 million, the national ICT regulator ANRCETI said. As many as 95 providers worked on the pay television services market in 2013. The slight rise in revenues was due to the increase in the sales of providers operating IP TV networks. As a result, the monthly average revenue per user (ARPU) fell by 3.3% to almost 50 lei. Nearly all the providers working on this segment earned an ARPU lower than 50 lei. Only SA “Moldtelecom”, which provides IP TV services, reported an ARPU of 71 lei.
Project to merge Chisinau CETs and Termocom failed, Deputy Premier
The project to merge the two Chisinau thermoelectric plants (CETs) and the public utility Termocom has failed. The economic magazine ECOnomist, in its electronic edition, says that the announcement was made by Deputy Prime Minister and Minister of Economy Valeriu Lazar in the March 13 meeting of the Government. The official informed that the merger was stopped by a court decision. The Ministry of Economy will implement the second plan for reorganizing the thermoelectric system of Chisinau, which envisions the liquidation of Termocom. The company’s assets will be taken over by the largest creditor of Termocom - CET-2. ECOnomist quotes its sources as saying that all the financial resources of Termocom are already managed by CET-2 and the Ministry of Economy.
● FRIDAY, March 14
Parliament annuls tax of 1.5% on walnut exports
The lawmakers adopted a bill by which the tax of 1.5% levied on the export of walnuts, derivatives and walnut wood was annulled. The elimination of the tax was recommended by the World Health Organization of which Moldova forms part. Deputy Minister of Economy Tudor Copaci said that initially this tax was transferred to the fund for encouraging walnut development, but in 2009 this fund was liquidated and the money was directed to the state budget. The national walnut producers and exporters welcomed Prime Minister Iurie Leanca’s initiative to annul the tax on walnut exports. Chairman of the Association of Walnut Exporters of Moldova Dumitru Vicol has told IPN that by annulling this tax the authorities correct an older mistake that led to the double taxing of walnut producers and exporters.
Gagauz company suspected of tax evasion
Prosecutors started a criminal case over tax evasion of tens of thousands of lei against a company managing a number of filling stations in the Autonomous Territorial Unit of Gagauzia. According to the Prosecutor General’s Office, the company sold fuel for cash without indicating the transactions in the bookkeeping documents. The prosecutors and officers of the Ministry of the Interior established that the company sold fuel products without documents of origin and without using cash registers and used a mechanism enabling modifying, blocking or annulling the figures about sales.
● SATURDAY, March 15
Up to 30% of fruit tree buds in some southern districts dried
Up to 15% of the fruit tree buds have dried in winter and this is within the natural norm of 15%. But in some of the districts in northern Moldova the loss of buds represents 20-30% of the total, the State Hydrometeorology Service has said. The weather conditions since last December until the first decade of February were generally acceptable for fruit trees and vines. In the period, the temperatures in parts fell to minus 27 degree Celsius. The State Hydrometeorology Service said the plants passed through winter well in the main. Locally, the loss of vine buds represents between 3% and 17% at a time when the natural norm is 20%.
