● MONDAY, September 15
Tobacco production in Moldova continues to fall
About 1,300 tonnes of tobacco leaves are projected to be gathered in Moldova this year, as opposed to 2,000 tonnes last year. The leader of the Association of Tobacco Processors Serafim Terenti said the sector continues to witness downward trends. “I know that in 1984-1986, Moldova produced 120,000 tonnes of tobacco. The local tobacco processing complex worked only with raw material. I don’t know how this complex works now,” said Serafim Terenti. He noted that in the 1980s, they cultivated tobacco on about 60,000 hectares of land in Moldova. Now this figure stands at about 1,000 hectares. The production is exported almost fully.
Benefits for farmland owners from Transnistria
The entrepreneurs who own farmland on the left bank of the Nistru River will be stimulated in the subsidization process. The minimum subsidized area of protected land on which vegetables are grown will be up to 0.01 hectares, as opposed to 0.03 hectares set for economic entities from the right bank of the Nistru. The subsidy provided in this respect will be by 10% higher. This refers to investments made in greenhouses, solariums and tunnels. The subsidy for investments made in growing ecological crops on protected land will be by 20% higher. The procedure for confirming investments made in materials used to build greenhouses, solariums and tunnels by agricultural producers from Transnistria will be simplified.
New low-cost flight from Chisinau to Warsaw
A new low-cost flight Chisinau – Warsaw will be provided from October 26. The announcement was made in a meeting of Prime Minister Iurie Leanca and representatives of a Polish airline. The flight will be operated four times a week. Thickets are already on sale on the airline’s website. In a week, they will be also available from authorized agencies in the country and abroad. “I’m convinced that when the new flight is launched, the people will be the first to benefit because they will have access to cheaper tickets and there will be created healthy competition in the field,” said Iurie Leanca.
Administration board of Victoriabank suspended, members provide details
The administration board of Victoriabank was suspended by a court decision after a minority shareholder challenged the decisions of the bank’s Extraordinary General Assembly of Shareholders. In a news conference, members of the board said they were suspended because they wanted to replace the institution’s executive. “In the period between November 2013 and February 2014, a group of shareholders intended to take over the bank. The board was elected in the Extraordinary Assembly this February. On May 8, 2014, there was held the Extraordinary General Assembly of Shareholders, where a number of shortcomings were identified in the management, including the provision of loans that do not meet the norms according to the financial indicators, very large maintenance, guarding, advertising, repair and other kinds of costs,” said the president of the administration board Victor Turcan.
“Milestii Mici” company started to gather grapes
The winemaking company “Milestii Mici” began to collect the grapes from its vineyards. The white grape Riesling is gathered the first. The red sorts of grape are picked up later. The company’s administration estimates that its own harvest will total 1,000 tonnes. The harvest launch was attended by Minister of Agriculture and Food Industry Vasile Bumacov. The official said the white grapes are now very popular, while the white wines made in Moldova became competitive on the international market. The harvest was projected to total 300,000 tonnes of grapes, but, owing to the drought, there will be gathered only 240,000 tonnes. The positive side is that the wine will be exceptional as the drought allowed the grapes to accumulate more sugar.
Challenges faced by Moldova in creating DCFTA with EU
Economic expert Viorel Chivriga, who made the study “Priorities and challenges in the implementation of the DCFTA in the Republic of Moldova”, commissioned by the Foreign Policy Association (APE), said the Association Agreement between Moldova and the European Union will be doomed to failure if the reforms started by the government are not implemented. “We need competition, clear rules of the game and a legislative framework friendly to the business community. We must destroy the barriers faced by the business community as they hamper the country’s economic development. We need production and investments,” Viorel Chivriga said when presenting the study in a news conference.
President of administration board of Victoriabank: We witness a new raider attack
The administration board of Victoriabank accuses the bank’s executive of releasing bad loans and of using money from the bank for personal interests. The board’s president Victor Turcan and board members told a news conference that they set out to replace the bank’s executive, but were blocked in their acts when the procedures started. The Buiucani District Court suspended the administration board after a minority shareholder challenged the decisions of the bank’s General Assembly of Shareholders in court. Victor Turcan told the journalists that as a result of several internal examinations, it was established that the bank’s executive headed by Natalia Politov Cangas released a number of bad loans based on inappropriate business plans, without making sure that the money will be recovered. In the created situation, it was decided to terminate the contract with Natalia Politov Cangas. But she disputed the decision and the court reinstated her in her post. After a shareholder owning only eight shares of the over 25 million in Victoriabank filed a challenge to the Buiucani District Court, the administration board was suspended.
● TUESDAY, September 16
President of Bankers League pleads for transparency in bank management
The major problems faced by the banking system of Moldova derive from the lack of transparency in the management of commercial banks, president of the Bankers League of Moldova Dumitru Ursu said in the program “Public eye” on Noroc TV channel. According to Ursu, the problem of anonymity of bank owners has persisted in Moldova since the 1990s, while the National Bank, which possesses instruments for solving this problem, avoids doing this. “Probably some of the bank owners want to preserve anonymity because they appropriated shares in banks, while others became co-founders with capital borrowed from other banks, which is not allowed by the Moldovan legislation,” stated Dumitru Ursu.
Legal system accused of covering problems faced by Victoriabank
The Buiucani District Court suspended the administration board of Victoriabank after a minority shareholder challenged the decisions of the bank’s General Assembly of Shareholders. In a news conference members of the board said that by such a decision, the court covers the problems caused by the bank’s executive. The president of the administration board Victor Turcan said the challenge to the Buiucani District Court was submitted by a shareholder who owns only eight shares of the bank’s 25 million shares. “The given inconsistency endangers the bank. The institution returned to the uncertain situation that existed before February 2014, when the administration board was appointed. It is paradoxical when an employee of the bank, either the president or a shareholder with eight shares, disputes the work of the executive bodies, the decisions of the General Assembly and the board named by it,” he stated.
● WEDNESDAY, September 17
Moldtelecom provides Internet at the highest speed possible
Moldtelecom recently made a new jump in developing last-generation technology, setting up the first 100G network that is available all over the country by fiber optic communication. It ensures Internet connection at the speed of 1Gbps. According to a communiqué of the company, even if the investments made in the launch of the new network are rather large, the needs of the client are of primary importance and the telecoms carrier sees no other development course than offering the client the most modern, advantageous and high-quality IT products.
Ecological agricultural products will be marked
The national brand name “Ecological agriculture – the Republic of Moldova”, which is imprinted on packing, will show that the production process is controlled by the inspection bodies, while the product is obtained according to the requirements in ecological agriculture. The regulations concerning the use of the given brand name were approved by the Government on September 17. The symbol of the brand name is a leave whose nuances vary from light to dark. Inside the leave there is the logotype “eco” that is light green in color.
● THURSDAY, September 18
€1.6 billion needed for repairing all roads in Moldova
The government needs about €900 million more to rehabilitate the major network of roads. If speaking about the whole network of national roads, which constitutes over €3,300 km, a sum of 1.6 billion is needed for repairing it. Approximately 258 km of national roads have been rehabilitated with foreign funds since 2009. Currently, 212 km of national roads are under repair, while for 122 km of road there are held tender contests to select the contractors. About 150 km of national and local roads were rehabilitated with money from the Road Fund. There were performed medium-level works to repair 511 km of public roads.
European diplomats about possibilities of developing businesses in Moldova
European diplomats consider there are opportunities for developing businesses in Moldova, but corruption is a serious problem in this respect. The issue was discussed in the program “Politics” produced by TV 7 channel. The Head of the EU Delegation to Moldova Pirkka Tapiola said that if he was from the business community, he would accept to come and start a business in Chisinau, after the signing of the Association Agreement with the EU, which offers great possibilities for developing businesses. On the other hand, the Moldovan authorities should deal with the high level of corruption, which would not be tolerated in the business relations with the EU. “If a producer exporting to the EU obtains phytosanitary certificates by offering bribe, the value of these certificates will be nil as they will anyway determine that the goods are not of the quality indicated in the given document, while your country will have problems,” stated the diplomat.
Roads to social-economic facilities to be repaired
The Government consented to modifying the program on the distribution of the resources of the 2014 Road Fund with a view to rehabilitating more local roads that ensure access to social-economic institutions. Minister of Transport and Road Infrastructure Vasile Botnari said this became possible following the change of the source for financing the works to repair the Orhei-Rezina road, which will be completed with money provided by the European Investment Bank. “The 100 million lei earmarked in the Road Fund for the rehabilitation of the Orhei-Rezina road will be redirected for repairing more local roads going to social-economic facilities and for maintaining the public roads in winter,” stated the minister.
Moldova to take out loan of US$40m from World Bank
The Government opened negotiations on the financing agreement between Moldova and the World Bank for implementing the project to improve the efficiency of the centralized heating system of Chisinau municipality. Based on his accord, the World Bank will release a loan of US$40 million to Moldova. The strategy and plan for corporatively, institutionally and financially restructuring the centralized heating system of Chisinau municipality were approved in December 2011. Under them, the two thermoelectric plants of Chisinau CETs will merge with SA Termocom by the end of this year.
Cooperation agreement between Moldova and Kazakhstan
Moldova and Kazakhstan intend to sign a commercial-economic cooperation agreement. The Government of Moldova has given the go-ahead to start negotiations on the accord. The document is to be signed this October, within the fifth meeting of the Moldovan-Kazakh intergovernmental commission for commercial-economic cooperation. The cooperation between the two states will cover investment projects, creation of joint companies and financial-industrial groups, the supply of industrial products and goods from the petrochemical industry. An important aspect is the joint participation in the creation and utilization of the transport infrastructure and goods storage terminals. The sides will also cooperate in the agro-industrial sector, tourism, science and technology.
Rosselhoznadzor to decide on the import of Moldovan products in a month
Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselhoznadzor) in a month is to take a decision whether to lift the ban on fresh and canned Moldovan fruit or not. Minister of Agriculture and Food Industry Vasile Bumacov, after paying a visit to Moscow, said he explained to the Russian officials that it’s nonsense to maintain the ban after introducing customs duties on these products. The minister stated that speculators profit from the fact that Moldovan products are exported to other countries too and take them to Russia from these countries. Therefore, the fresh and canned fruit of Moldova are sold on the Russian market at higher prices. The Russian consumers thus also sustain losses. This is not Moldova’s problem. It is a consequence of the ban.
Harvest of corn grains projected to exceed 1.5 million tonnes
The corn yielded well this year, as last year, and farmers expect to gather over 1.5 million tonnes of grains. Minister of Agriculture and Food Industry Vasile Bumacov said that over 450,000 hectares are annually sowed with corn in Moldova. “Corn is a crop friendly to the soil as it does no make it dry. We at least twice a day eat or use something made from corn or grown with the help of corn,” he stated. The minister added that half of the corn production is used in Moldova, while the other half is exported.
● FRIDAY, September 19
Fruit exports to Russia may be resumed in a month
The exports of Moldovan fresh and canned fruit to Russia could be resumed in a month, Minister of Agriculture and Food Industry Vasile Bumacov said in the program “Fabrika” on Publika TV channel. After visiting recently Russia, where he had discussions on the issue with officials there, Vasile Bumacov stated that an expert of the specialized Russian authority will come to Moldova to assess the quality of the fruit and vegetables. “He will inspect our orchards to see how the fruit was grown, what it was sprayed with and how it is kept. Anyway, we were the most exemplary and committed the lowest number of violations in the period before the imposition of the bans,” he said.
Economy Ministry maintains economic growth forecast for this year
The Ministry of Economy does no yet see reasons for reviewing the economic growth forecast of 3.5% for this year, it is said in a communiqué issued by the institution. Referring to the data presented by the National Bureau of Statistics, according to which the GDP in the first half of this year rose by 3.9%, experts of the Ministry said Moldova’s economy in 2014 entered a period of stability. All the economic activities grew moderately. Exports increased, while imports declined insignificantly. The Gross Domestic Product in the first half of this year rose by 3.9% compared with the corresponding period last year, to 47.7 billion lei.
EU supports development of Moldova’s agriculture with €120 million
The European Investment Bank (EIB) is lending €120 million to support SMEs and micro enterprises active in Moldova’s horticultural sector. The project, called “The Fruit Garden of Moldova,” will support activities in the entire food value chain, from the education of farmers through to harvesting and food production. EIB Vice-President Wilhelm Molterer, Head of EU Delegation to Moldova Pirkka Tapiola and Prime Minister Iurie Leanca visited an apple orchard in Zaicana village of Criuleni distrait, where they had a meeting with fruit growers, potential beneficiaries of the Fruit Garden project.
● SATURDAY, September 20
ANRE says rise in fuel prices is unjustified
The National Agency for Energy Regulation (ANRE) was informed by a number of oil companies about their decision to increase the prices of gasoline and diesel fuel by 0.30 and, respectively, 0.20 lei a liter. The Agency considers there are no preconditions for such a decision. In a communiqué, the ANRE says that the average PLATT'S quotations of the gasoline and diesel fuel since June have decreased and there are no objective reasons for raising fuel prices. Under the legislation, the Agency does not set and does not approve the prices of old products as the market is free and competition-driven.
