● MONDAY, October 29
How much implementation of new unitary salary system in budgetary sector will cost
The implementation of the new unitary salary system in the institutions funded from the state budget and local budgets was estimated to cost 3.95 billion lei in the medium term (2019-2021). Under the draft law proposed for public consultations, the money was planned in the medium-term budgetary framework and no additional financial resources are needed. When the ne unitary salary system in the budgetary sector is introduced, the minimum reference value for the lowest salary grade will be set at 1,500 lei. It is planned that the average monthly salary by 2021 will rise by about 30% for employees of institutions financed with state budget funds and by over 55% for employees of institutions financed with local budget funds. The Ministry of Finance noted the unitary character of the new salary system. The assessment of posts enables to objectively classify the posts with a similar value according to the principle “equal pay for equal work”.
● TUESDAY, October 30
Veaceslav Negruța: Impression that salaries will rise by doing nothing is false
The replacement of the salary system should be the basic element and emphasis of the law on the unitary salary system because this system should be motivating for the public functionary to be ready to increase efficiency and to be interested in working in the public sector. But the Democratic Party of Moldova’s last initiatives in the field create the false impression that the salaries will rise by 20%, 50% or even 90% by doing nothing, say Transparency International Moldova expert Veaceslav Negruța. According to the expert, last April the formula was changed and the Ministry of Finance became responsible for the salary policy in the budgetary sector. The introduction of the unitary salary system is the second step. The census of functionaries taken in 2011-2012 was the first step. “Now, the second stage and that titanic work done by functionaries internally and externally, are regrettably presented as an electoral, political initiative,” stated Veaceslav Negruța.
Small and medium-sized animal farms should be modernized, “Viitorul”
The animal breeding sector faces problems following the limping reforms. The concentration of animals in domestic farms and the small areas of crops intended for fodder are the key problems. The reduction in livestock hasn’t been stopped this year and the number of animals of all species declined. Consequently, the animal breeding sector cannot satisfy the demand for consumption and industrial processing on the home market and this favors the importation of similar products, programs director of the Institute for Development and Social Initiative “Viitorul” Viorel Chivriga. According to Viorel Chivriga, the production factors market should be liberalized and measures should be taken to protect the domestic market of animal products as Moldova is invaded by products imported from Ukraine, Russia, Belarus, Romania, and Poland. The small and medium-sized animal farms should be modernized and outfitted with high-quality equipment, while the quality and volume of crops for fodder should be raised.
First marathon of electric, plug-in and hybrid cars starts in Moldova
Nine electric, plug-in and hybrid cars will roam Moldova for five days to promote innovation in auto transport industry and demonstrate the performance of zero-emission cars. The first expedition of environmentally friendly cars started at October 30, in the Republic of Moldova. The convoy of cars will cross the cities of Orhei, Soroca, Drochia, Balti, Ungheni. The vehicles will be charged with power supply at the overnight hotels and restaurants. The cars participating in the expedition will return to Chisinau on November 3. On the Great National Assembly Square, the expedition’s participants will share with people their impressions and experience of driving ecofriendly cars.
Chisinau – Minsk flight launched
The Chisinau – Minsk flight operated by Belavia company of Belarus was launched on October 30. The flight will be available for five times a week and will last for an hour and a half. Prime Minister Pavel Filip flied to Minsk on a working visit by this flight. According to Pavel Filip, the direct flight to Minsk will open up business opportunities and new destinations for Moldovans, who could reach other countries from Minsk easier and cheaper. Moldova could become a tourist destination for the citizens of a number of states who can easier get to Chisinau through Minsk.
● WEDNESDAY, October 31
Banking sector continues to constantly accumulate profit, “Expert-Grup”
The banking sector at the end of the third quarter of 2018 continued to constantly accumulate profit. The main financial and prudential indicators of the banks were within the limits set by the banking legislation, with a powerful emphasis on the high level of liquidity in the short term. Thus, the own funds rate remained at an adequate level, of about 27.9% for the whole banking sector, with oscillations of 20% to 66% at individual level. The limit set by the National Bank of Moldova for this indicator is 10%, plus the additional capital requirements, noted the Independent Think Tank “Expert-Grup” that presented the banking performance rating at end-September. In a press release, the Center said the liquidity of the banks remains much above the regulated limits, reaching about 55%, which means more than half of banks’ assets are liquid assets (state securities, National Bank of Moldova certificate or mandatory reserves). Even so, the banks continue to make profit and this came to 1.34 billion lei at end-September, being negatively influenced by the losses calculated by one bank - BC Eximbank (87.4m lei).
New draft energy strategy proposed for public consultations
The new draft energy strategy until 2030 was published for public consultations. According to the Ministry of Economy and Infrastructure, the document is aimed at meeting the challenges that threaten the stable functioning of the energy system and at making use of the opportunities of integrating the electric power and gas market of Moldova into the regional and European markets. Under the new laws on electric power and natural gas, for the first time Parliament was empowered to adopt the given strategy. The document specifies the methods of modernizing the sector so as to ensure energy security and to positively influence the environment and quality of life.
● THURSDAY, November 1
Concessions on foundation of science and technology parks and innovation incubators
The central and local public authorities, associations created by association agreement and higher education establishments could found science and technology parks and innovation incubators. This is provided in a bill that was given a final reading by Parliament and passed on November 1. The bill extends the list of entities that can be founders. This right will be enjoyed not only by clusters, but also by the central and local public authorities, associations created by association agreement and higher education institutions.
Annual compensation provided to teachers will not be included in gross income
The annual monetary compensation provided to teaching staff of public general education institutions will not be included in the teachers’ gross income. Parliament adopted relevant amendments to legal acts after giving them a final reading on November 1. Under the same amendments, the costs associated with the repair of own units of transport used to provide taxi road passenger transportation services could be fully deducted. For taxpayers who stop work during the fiscal period, the income tax rate will be 1% of the tax base, but not less than 250 lei per each worked month.
State Tax Service launches hotline in connection with amendments to fiscal legislation
The State Tax Service on November 1 launched a hotline that during a month can be used free to find out information about the correct determination of the income tax related to salary incomes in connection with the amendments to the fiscal legislation that took effect on October 1 this year. The service is available from Monday through Friday, between 8am and 5pm, on (022) 823438. Among the main changes are the introduction of a common income tax, the augmentation of personal exemptions and reduction of the mandatory social insurance contribution paid by employers.
Bank deposit guarantee ceiling raised
The bank deposit guarantee ceiling will be increased to 50,000 lei as of January 1, 2020, under a bill that was given a final reading by Parliament on November 1. Currently, the ceiling is 20,000 lei and was raised from 6,000 lei on January 1, 2018. From January 2020, if the deposits of a licensed bank become unavailable, the deposit guarantee fund will guarantee 50,000 lei for each depositor, regardless of the number and size of held deposits and of the currency in which they were opened.
Deep structural reforms are needed to enable new drivers of growth, WB
The economy is expected to continue to grow by 4% on average in 2018-2020, supported by remittances and real wage growth induced private consumption. With economic growth driven by consumption, deep structural reforms are needed to enable new drivers of growth. The conclusions were formulated in an event held to present the World Bank’s economic update for Moldova on November 1. In the first half of 2018, real GDP increased by 4.5% and 2018 growth is expected to reach 4.8%. Economist of the World Bank Office in Moldova Marcel Chistruga said the economic growth is mainly driven by private consumption and capital formation. Underpinned by lower inflation, strong growth of remittances and wages drove private consumption growth (+3.8%, y/y).
● FRIDAY, November 2
8.6% of GDP are lost owing to low labor productivity of smokers
The World Bank Office in Moldova recommends the states of the region to coordinate their policies on excise taxes on tobacco so as to discourage smoking and reduce potential illicit trade in tobacco products. The rise in taxes on tobacco is an effective tool to reduce its use and associated health risks, increase revenue, and protect the population from the impoverishment effect of high medical care expenses and work absenteeism due to work days lost. In a news conference, World Bank consultant Irina Guban quoted statistical data showing about 30% of the men in Moldova are smokers. Even if the rate of tobacco smoking in Moldova is lower than in other countries of the region, it exceeds the rate in the EU member states.
Agro-industrial park in Sângerei to export apples to Saudi Arabia
The agro-industrial park situated in Sângerei will export the first consignment of apples to Saudi Arabia next week. The enterprise was opened last year as part of the project “Development of agricultural sector by creating a transfrontier agricultural network” that is implemented with support from the European Union. The park is located on an area of 1.58 hectares. The enterprise has a cold storage facility for keeping fruit and vegetables with the capacity of 1,600 tonnes and a sorting line. Currently, six agricultural producers from five districts keep apples and plums there. Prime Minister Pavel Filip, who visited the park on November 2, said he would like such parks to work all over the country so as to enable the farmers to keep the production in safe conditions and obtain higher incomes.
● SATURDAY, November 3
Farmers file record number of applications for subsidies
The campaign to collect applications for subsidies is over and the Agency for Intervention and Payments in Agriculture said a record number of applications were filed – 7,357 as opposed to 5,643 last year. The value of requested subsides exceeds 1 billion lei. The Agency noted that the deadline for submitting applications as part of the support measure 2.3 “Stimulation of agricultural producers by compensating irrigation costs” is November 15, 2018. The deadline for support sub-measure 1.7-A “Stimulation of mechanism for ensuring risks in agriculture” is December 15, 2018.
There is financial coverage for salary raises, secretary of state
The new law on the salary system is to take effect on December 1, 2018 and the first higher salaries will be thus paid in January for work done in December, Ion Chicu, secretary general of state at the Ministry of Finance, stated in an interview for Radio Free Europe. Ion Chicu said the salary is easily calculated according to the new scheme. The lowest reference value is set and the pay is calculated depending on the coefficients for each of the 130 classes of the salary system. “This means that when there are possibilities for raising the salary, the lowest reference value is increased and the pays are thus raised from down to up for everyone. Until now, for example, they decided to raise the salaries separately for judges and separately for public servants and the raises depend on the capacity to have these changes adopted by a sector group or another,” he explained.
