● MONDAY, May 30
Revenues from pay TV services decline
The number of subscribers to pay TV and the revenues earned from this service in the first quarter of 2016 decreased. According to the National Regulatory Agency for Electronic Communications and Information Technology, the number of subscribers fell by 3,400 (-1.3%) to 271,800, while the sales declined by 939,000 -2.1% to 37.5 million. The revenues in the audiovisual sector came to 66 million lei, a decrease of 14.6 million lei (-15.3%). According to the data presented to the Agency by the 92 active pay TV providers, the number of subscribers connected to the given service through cable fell by 5,600 (-2.7%) to 200,900, while the number of subscribers to IP TV rose by 2,200 (+3.2%) to 70,900. As a result, the pay TV penetration rate per 100 people decreased to 7.6%.
Audit Office examines fulfillment of 2015 state budget
The 2015 state budget was fulfilled in difficult conditions determined by the economic recession, significant rise in inflation and depreciation of the national currency against foreign currencies. Also, imports and exports decreased compared with last year, while the foreign donors halted the assistance provided as budget support. Such conclusions were formulated by the Audit Office, which examined the Government’s report on the fulfillment of the budget for last year. Though the state budget incomes during the last seven years have continuously increased, the income collection plans were fulfilled non-uniformly in the period. The lowest fulfillment level was recorded in 2015 (95.5%). Such a situation is due to external factors and to the unsatisfactory accuracy level of the macroeconomic forecasts that shaped budget indicators. The Audit Office auditors consider the incomes per types of taxes, including VAT, weren’t forecast, given the reality.
Customs Service aims to support investors by simplifying customs procedures
The Customs Service aims to support the investors by simplifying customs procedures and to create a competitive environment for investors in different sectors of the economy, the Service’s director general Vitalie Vrabie said in a meeting with Thomas Moser, director general of ICS Danube Logistics SRL, which manages the Giurgiulesti Free International Port. “By the initiated reforms, we aim to create a competitive environment for investors in different sectors of the economy so that these benefit from the most innovative customs administration instruments,” stated Vitalie Vrabie. The interlocutors also spoke about the aspects that must be optimized to ensure the functioning of the port and to create favorable conditions for the residents of the area. They agreed a plan of action that is to be implemented by a working group set up for the purpose.
ANRE: Many oil companies increased prices with deviations
Twenty-seven oil companies in Moldova raised the prices of oil products with deviations from the legislation. The violations were identified by the National Agency for Energy Regulation and presented in a meeting on May 30. The Agency is to work out prescriptions for removing the identified irregularities. According to the Agency, the 27 companies increased the prices on May 23. Thus, the price of gasoline rose by 0.60 lei per liter on average, while of diesel fuel – by about 1 leu per liter. Also, the companies that weren’t notified by the Agency must inform it during three days about the rises that occurred during May 20-30 so that it could identify all the operators that committed irregularities. In the near future, all the license holders are to be informed about the effects of the non-observance of the legislation.
● TUESDAY, May 31
State guarantees provided to three banks will affect budget during several years
The balance of the state debt expressed in national currency at the end of 2015 was 33.5 billion lei, an increase of over 6 billion on a year before. According to an Audit Office analysis of the Government’s report on the debt of the public sector and state guarantees, the state debt in 2015 was the largest during the last four years. The state guarantees issued by the Ministry of Finance for the emergency loans provided by the National Bank to three banks this year will be substituted with state bonds and the loans will be repaid during 25 years. Following the memorandum signed by the Ministry of Finance and the National Bank of Moldova, the total debt of 13.6 billion lei was divided into 25 separate installments that will be paid in 1 to 25 years. The burden on the state budget, caused by the value of the guarantees provided by the state, represents 57.6% of the fiscal incomes of the state budget and 45.2% of the state budget expenditure.
Energy regulator sets retail oil price ceilings
The National Agency for Energy Regulation published the retail oil price ceilings. Thus, the price ceiling for gasoline coded Premium-95 is 16.21 lei/liter, of diesel fuel is 13.83 lei/liter, while of liquefied petroleum gas is 7.20 lei/liter. The prices were set in accordance with the new methodology for forming oil prices. These will be valid for 14 calendar days. According to the methodology, each 14 calendar days the Agency will set the retail oil price ceilings and will publish them on its website at 1pm. The oil market operators will be unable to retail oil products at prices higher that these ceilings.
Rise in incomes will change attitude to consumer prices, debates
The consumer price index is a rough indicator that shows the trends in an economy. The rise in the incomes of the population will change the attitude to consumer prices, said experts who took part in the online debate “60 minutes of economic realism” staged by the Institute for Development and Social Initiatives “Viitorul” and Radio Free Europe. Analysts Corina Gaibu and Mariana Gurghis, together with the program’s moderator Vlad Bercu, discussed the evolution of consumer prices and their impact on the financial state of households. “This approximate indicator will not show the concrete impact on your family if, for example, the consumer price index rose to 15%. It does not necessarily mean that a family will pay for goods and services by 15% more than earlier. It depends on where we purchase these goods and services from and on the incomes of this family,” stated Mariana Ghurghis.
● WEDNESDAY, June 1
Process of opening up electricity market must be reanimated, study
The process of opening up the electrical power market in Moldova, which started to develop in 2010 and remained stagnant during the last two-three years, must be reanimated and hastened by immediately adopting the Law on Electricity, energy analyst of the Institute for Public Policy Ion Efros says in a study of the energy policies. The study shows that the electricity market of Moldova is too small for its liberalization to yield results remaining isolated from the European market. The study shows that even if the liberalization of the electric power market was announced in 1996, the effective liberalization in terms of supply and production hasn’t yet occurred. According to the liberalization schedule agreed by Moldova with the Energy Community, the market for non-household users was to be liberalized from January 1, 2013, while for household users – from January 1, 2015. “In reality, as regards retail trade, both of the categories of consumers continue to be hostage of the existing suppliers,” stated Ion Efros.
Employers complain they became hostage of political populism
The employers are dissatisfied with the way in which June 1 was instituted as a nonworking day. “Last week, Parliament adopted a decision by which it declared June 1 as a nonworking day. The National Employers Confederation of Moldova ascertains with regret that the procedures for adopting the given decision were violated as there were held no consultations and the Government’s approval of the given initiative was absent. We are convinced that an intelligent formula accepted by all those involved could have been reached when making such amendments, with the implementation of the democratic procedures,” says the document. The Confederation notes that in the wish to synchronize the Parliament’s decision, the Government adopted the decision by which it declared June 1 as a nonworking day and made June 25 a working day instead, contrary to the principle of predictability of economic activities. “A note of chaos was introduced in the work of enterprises because the preschool intuitions immediately declared it a nonworking day without having a legal basis - the Government decision published in the Official Gazette, which couldn’t have been published in such a short period of time,” said the Confederation.
Investments totaling €10m to be made in Moldova’s economy
The Austrian company Gebauer&Griller announced its intention to open a new cables and wires factory in the Balti Free Economic Zone. The issue was discussed by Prime Minister Pavel Filip in a meeting with representatives of the company. According to the Government’s press service, Gebauer&Griller executive director Eva Schinkinger said the investments will amount to €10 million. At the initial stage, there will be created over 400 jobs. Afterward, the figure could rise to 1,000. The Premier welcomed the Austrian company’s intention to enlarge the investments in Moldova, appreciating the role of the business sector in the country’s development. “The investments represent one of the three main pillars of economic development, alongside the rule of law and the anticorruption measures,” stated the Premier.
● THURSDAY, June 2
2016 could be a stabilizing year, “Viitorul”
This year Moldova will witness a rise in the agricultural output, of about 7%, it is said in the magazine “Economic Outlook”, of the Institute for Development and Social Initiatives “Viitorul”, released on June 2. This sums up the main socioeconomic events and trends of 2015-2016. Expert Viorel Chivriga said increases in production will be witnessed both in the vegetal sector and the animal-breeding sector. “In the animal-breeding sector, the number of animals remains stable. Even if feeble, but changes are also seen in the quality of products. In the vegetal sector, which is much wider, things are not so definite. Anyway, the balance of trade in the exports of agricultural products, if the weather conditions are at least slightly favorable, will be positive,” he stated.
Ericsson intends to extend business in Moldova
The company Ericsson is interested in the virtual IT parks of Moldova and want to extend its Operational Networks Administration Center in Southeastern Europe, Ericsson Customer Unit Head for Southeastern Europe Marie Large said in a meeting with Prime Minister Pavel Filip. According to the Government’s press service, the interlocutors discussed the steps taken by the Government to improve the business climate and the opportunities provided by the Law on the Creation of Virtual IT Parks. Pavel Filip informed the company’s representatives about the opportunities offered to develop businesses within the IT parks that are due to start work on January 1, 2017. The Law on the Creation of Virtual IT Parks was passed by Parliament in the final reading and the framework needed for implementing it is now drown up. A common 7% tax on the sales of parks’ resident companies will be introduced as a novelty.
● FRIDAY, June 3
Alexander Kremer: Moldova tried to adjust economy to ‘theft of century’
Moldova faced very harsh monetary conditions with very high interest rates because attempts were made to adjust the economy to the ‘theft of the century’, World Bank Country Manager for Moldova Alexander Kremer stated in an interview for Radio Free Europe. He urged the authorities to do their utmost to restore the confidence of the investors and business community, but first of all of the people in the state institutions. The official noted that it is important to hold accountable the persons who are responsible for the bank fraud committed in 2013-2014. “I do not refer here to the ‘small fish’, but to even those large involved. It is very important to get rid of this impression concerning the impunity in the case of this theft of the century. If somebody robbed the banking system and remained unpunished, this way we send the message that you can rob a bank in his country and can remain unpunished,” stated Alexander Kremer.
Communities from both sides of Nistru can obtain EU funds
Settlements from both sides of the Nistru River can obtain financial assistance from the EU to modernize the social institutions or infrastructure. They can get up to €150,000 in financing per project on a contest basis through the Confidence Building Measures Program that is financed by the EU and implemented by UNDP. According to a press release of UNDP, the contest is open to communities with a population larger than 1,500. Priority will be given to projects that will contribute to developing cooperation between the two sides of the Nistru. By March 2018, the Program will modernize 30 social infrastructure facilities. Eleven proposals will be selected within the current round. The first 20 projects that were chosen in 2015 are being implemented.
