● MONDAY, May 14
Case of African swine fever confirmed in Tvardita
The presence of the virus of African swine fever in pigs at a private farm in Tvardita village of Taraclia district was confirmed by lab tests. The Exceptional Anti-Epizootic Commission approved a plan of action and imposed restrictions on the movement of animals in the village. The National Food Safety Agency requested pig owners to immediately inform the authorities if animals fall ill or die. The last cases of African swine fever were reported in Palanca village of Stefan-Voda district and in Beșghioz village of Ceadar-Lunga district.
● TUESDAY, May, 15
State Tax Service and Customs Service recommended to improve internal control systems
The process of collecting the taxes secured by the State Tax Service and the Customs Service and the local taxes at mayor’s offices was mainly influenced by the way in which the internal control systems at these bodies were organized. In general, the State Tax Service and the Customs Service fulfilled the tasks related to the collection of revenues into the national public budget, with the revenues rising from 38.6 billion lei in 2015 to 50.3 billion lei in 2017. But the process of implementing the internal control system witnessed particular vulnerabilities, namely in achieving particular performance indicators and in managing taxes and estimating budget revenues. In the case of particular taxes, the projected amounts could not be collected. The fiscal obligations to the national public budget weren’t fully fulfilled, with these increasing from 6.411,7 billion lei in 2015 to 11.216 billion lei in 2017.
Gasoline and diesel fuel grow more expensive
As of May 16, the prices of fuels will be higher – of gasoline by 0.33 lei per liter, while of diesel fuel – by 0.30 lei per liter. The National Agency for Energy Regulation announced the new fuel price ceilings for the next two weeks. A liter of gasoline 95 will be sold for at most 19.15 lei, as opposed to 18.82 lei during the past two weeks. Diesel fuel will cost at most 17.09 lei per liter, in contrast to 16.79 lei until now. The new prices will be applied until May 29.
Central bank warns again about risk of investing in cryptocurrencies
Taking into account the considerable fluctuations, including the plummeting of prices and closing of platforms for exchanging virtual currencies, witnessed during the last few months, the National Bank of Moldova reiterated its opinion about cryptocurrencies and the risks of investing in these. According to the Bank, there is a high risk of losing the sums invested in such currencies. The Bank says that as the authority that surveys licensed persons and entities that provide payment or currency exchange services, it discourages the trading in virtual currencies so as to avoid the involved risks, including of money laundering and the reputational risk. The entities that intend to provide cryptocurrency investment or trading services should make sure that these activities do not contain components related to the remit of the National Bank of Moldova.
● WEDNESDAY, May 16
Cabinet approves tax concessions
The Cabinet approved the exemption from customs duties, tax for customs procedures and value added tax for the goods and services imported and (or) delivered for constructing the old people’s home in Ceadar-Lunga town in ATU Gagauzia. This social project is financed by local authorities of Turkey. The ole people’s home will have an accommodation capacity of 32 persons and will have all the necessary conveniences. The cost of the project is €500,000.
● THURSDAY, May 17
Access of agricultural producers to surface waters for irrigation to be facilitated
The agricultural producers will easier gain access to surface waters for irrigation, based on a draft law to amend legal acts, including the Water Law. Thus, the agricultural producers will have the right to install water pumps and mobile installations on areas situated near rivers or ponds for irrigating the land. Earlier this was not allowed. The list of documents needed to obtain the environmental authorization for using water for irrigation was shortened. The given authorizations will be issued within 30 days without delaying the process. The water users associations could rent gratis not only irrigation equipment, but also desiccation systems for taking away the pond water in excess, if necessary. Prime Minister Pavel Filip said the problem of access to surface water for irrigation was repeatedly mentioned in his meetings with farmers.
Octavian Armasu: We also support budget-funded employees by “First House” program
The program “First House II”, whose launch was announced by the Government on May 16, aims to equal the chances of those from the budget sector and of those from the private sector because the average salary in the first is lower than in the second, Minister of Finance Octavian Armasu stated in the program “Fabrika” on Publika TV channel. The minister noted that the beneficiaries of “First House II” will get a state subsidy equal to half of the raised loan, portioned over a period of 25 years. But the value of the home is limited to 500,000 lei. “In practical terms, in the case of a loan of 500,000 lei the monthly subsidy during 25 years will be of up to 750 lei given that the beneficiary at the initial stage must pay 10% of the sum and the loan is of 450,000 lei,” stated Octavian Armasu.
EU supports continuation of reforms in Moldovan banking sector
The European Union will continue to offer assistance to the National Bank of Moldova in doing reforms in the banking sector, including with a new Twinning project that is to be launched soon to strengthen the supervision of the financial sector, corporate governance and risk management, EU Ambassador in Chisinau Peter Michalko stated in a seminar entitled “Banking sector reforms. Transition from Basel I to Basel III”, which was organized by the EU High Level Advisers’ Mission in cooperation with the National Bank of Moldova. Peter Michalko underlined the importance of reforms in the banking sector for ensuring financial stability and public confidence after the banking crisis. He approved of the progress made by the National Bank of Moldova in establishing a modern regulatory and supervision framework, in accordance with the EU standards (Basel III), in solving banking sector problems related to shareholder transparency and exposure to the affiliated parties. The European diplomat encouraged to continue the efforts so as to fulfill all the commitments assumed before the IMF and the EU, underlining the key role of the banks as a catalyst for the country’s economic activity.
Moldova’s economic growth remains driven by private consumption, World Bank
The World Bank announced its economic update for Moldova for this year and next year. Growth is expected to be robust and reach 3.8% in 2018 and 3.7% in 2019, driven mainly by private consumption. According to experts, Moldova needs deep transformational reforms that will create new and better jobs in the private sector. In this regard, reforming justice sector, improving business environment and enhancing the skills of the workforce remain paramount. Among other recommendation are to reduce the interest rates on loans and to establish partnerships between universities and private companies. The forecasts are based on the results achieved in agriculture and on the appreciation of the national currency that led to a growth of about 13% in exports. The rate of remittances in 2017 rose by about 13%. “The economic growth is expected to be robust and reach 3.8% in 2018 and 3.7% in 2019, still below the historical averages of 4.6%. The remittance recovery period, together with the rise in private salaries, will support consumption that will remain a key factor of growth,” stated WB expert Marcel Chistruga.
Court of Auditors subjects Tourism Agency to audit
The Tourism Agency witnessed positive dynamics as a public authority in promoting Moldova’s image as an attractive tourist destination, says an audit report by the Court of Auditors that was presented in a public meeting on May 17. In 2017, the tourism agencies and tour operators provided tourist services for 285,000 tourists and excursionists, an increase of 21.7% compared with last year. This way Moldova was ranked fifth worldwide by the fastest growth in the number of tourists. The property managed by the Tourism Agency came to 1.2 million lei at the end of 2017. According to the auditors, the internal control at the Agency was reduced and fragmented and this led to shortcomings in the financial-accounting management and to nonconformity in the management of public resources. The Agency inadequately classified 17 fixed assets. These weren’t registered in distinct accounts, in the amount of 110,000 lei (9% of all the assets). Two commercials promoting the country as a tourist destination to the value of 109,000 lei weren’t indicated in the financial accounts.
Benefits for thousands of citizens owing to regional projects supported by EU
Over 200,000 citizens from 22 communities will benefit from newly built or rehabilitated water pipelines, while dozens of institutions will become more energy efficient following the implementation of regional projects supported by the EU, Prime Minister Pavel Filip stated in a news conference held jointly with European Commissioner for Regional Policy Corina Cretu, who is paying a visit to Chisinau during May 17-19 at the invitation of the Premier Pavel Filip noted that the interest in implementing economic projects in the regions has increased during the past few years. In this regard, the good practices of the EU member states and the implementation of new technology are welcome. “The assistance for Moldova within the regional development programs could be much larger if we were an EU member state. I’m sure we will come to such a moment and the citizens of Moldova will see what cooperation between the states means. Until then the EU offers us the possibility of accessing funds, but the utilization of these funds depends on our potential,” he stated.
● FRIDAY, May 18
Fares on four international train routes to be lower
As of May 18, the fares for traveling by train on the international routes Chisinau – Moscow, Chisinau – St. Petersburg and Chisinau – Odessa will be by 6% lower, while on the Chisinau – Bucharest route by 4% lower following the depreciation of the settlement currencies – Swiss franc and euro. According to the Ministry of Economy and Infrastructure, the trips by the two Chisinau – Moscow trains will cost between 2,054.5 and 1,143.8 lei, depending on the type of car (with or without compartments) and the length of the trip. The reduction is of 123.80 to 66.60 lei. The fare for the Chisinau – St. Petersburg route will be by 135.50 lei lower for compartments and by 82.50 lei lower for compartment-free cars. Thus, the tickets will cost 2,239.20 to 1,397.30 lei. The tickets for the Chisinau – Odessa train after the reduction will cost 157 lei for first class, 149.20 lei for second class and 141.90 lei for third class. The tickets for the Chisinau – Bucharest train will be by 27-24 lei lower, depending on the class: first class (compartment with two places) – 658.45 lei, while second class (compartment with four places) – 569.73 lei.
