● MONDAY, December 17
Investment process intensified in 2018
Secretary general of state at the Ministry of Economy and Infrastructure Iulia Costin said 2018 is prosperous from economic viewpoint. In the first half of this year, the GDP rose by 4.5% to 81.8 billion lei. A continuous improvement in the agricultural and industrial sectors was seen, determined by the enlargement of vegetal production, intensity of processing industry and rise in domestic and external consumption, etc. Foreign trade continues to reflect the upward trend highlighted in 2017, while the commercial exchanges attracted important investments. The activity in the building sector, mainly the erecting of new constructions, had a positive impact on economic growth. Iulia Costin said among other results achieved in the economic sector are the reform of the inspection bodies, reduction in the number of permissive documents by 63%, launch of the electronic platform “One-Stop Shop” for using and managing permissive documents and simplifying the procedures for voluntarily liquidating the business. To diversify the financing of small and medium-sized enterprises, financial support programs and programs to ensure access to training were implemented in 2018. The business entities benefitted from non-reimbursable financing and financial guarantees that contributed to the creation of new enterprises and development of growing enterprises. As many as 413 enterprises received 68.52 million lei in non-reimbursable financing. Within the Free Economic Zones, there were created 2,055 new jobs and about US$ 391.4 million was attracted during the first ten months.
Video guidebook on how to calculate salaries of budget-funded employees
A video guidebook teaching how to determine the salaries of budget-funded employees was launched by the Ministry of Finance on its official website. The guide is designed to help employers and accountants of public authorities and budget-funded institutions and also employees of these entities, who can familiarize themselves with the new remuneration conditions defined in the law on the common salary system in the budgetary sector. According to the Center of Information Technology in Finance, the guidebook is presented as a normative framework that regulates the remuneration of budget-funded employees, the actions that must be taken by employers to implement the law on the salary system in the budgetary sector, components of the salary, guarantees enjoyed by employees and two examples of how to calculate the basic salary.
Glass products manufacturer to expand production by 60% with European support
Glass Container Company, a Moldova-based independent glass products manufacturer, announced the launch of a comprehensive upgrade of existing production facilities. The €17 million project is co-financed by the European Bank of Reconstruction and Development and Mobiabanca - Groupe Société Générale, as part of the European Investment Bank’s Filière du Vin project, which jointly committed €12.5 million in loans. The financing is supported by a guarantee and technical assistance program funded by the European Union. In a press release, the company said the project, structured in two phases, will increase the output of GCC’s furnace from 50 to 80 thousand tons per year once fully completed. Jointly with Glass Container Prim, GCC’s sister-organization, total pull capacity will increase from the current 100 thousand tons, to 160 thousand tons per year, with the number of production sections increasing from 36 to 56.
Central Securities Depository should become efficient in developing financial market, governor
The governor of the National Bank of Moldova Octavian Armașu said the Central Securities Depository (CSD) should become one of the most active and efficient players in developing the financial market. During a visit to the Depository that already has a separate office, the governor noted the CSD should not only provide services of a higher quality, but should also actively contribute to the development of the financial market, IPN reports, quoting a press release of the central bank. “The reform should facilitate the appearance of new financial instruments, increase the investors’ interest in securities and stimulate the share issues on the primary market and transactions on the secondary market,” stated Octavian Armașu.
● TUESDAY, December 18
Court of Auditors identifies distortions of over 32bn lei at Chisinau City Hall
The budget of Chisinau municipality was for the first time audited in accordance with financial audit standards. Audit samples were collected at the Chisinau City Hall and over 40 municipal entities. “Despite the efforts made to collect evidence, the audit team could not get sufficient and appropriate proofs that would confirm the plenitude and accuracy of the data presented in the financial report. According to indirect estimates, the distortions amount to 32.5 billion lei,” stated Rima Schastlivyi, senior state inspector of the Court of Auditors. According to the situation on December 31, 2017, the auditors established that the property was inventoried fragmentarily at some of the entities, without determining the just value of assets. The Audit Office in 2012 recommended drawing up a Register of Residential and Non-Residential Property owned by the municipality, but such a register does not exist.
Minimum living wage in Moldova is 11,000 to 12,000 lei, study
The Government should set a minimum salary closer to the level of the living wage, both in the real sector and in the budgetary sector of the national economy. According to a study presented by platzforma.md and the Friedrich-Ebert-Stiftung Moldova, in partnership with the Clean Clothes Campaign, the minimum living salary in urban areas is 12,306.8 lei, while in rural areas is 11,359.6 lei. In a roundtable meeting, there was presented a case study of the clothing industry. According to the authors, the textiles, clothing, leather and footwear sector is one of the most important sectors of the national economy. The average salary in the textile industry, which in the third quarter of 2018 was 6,027 lei, represents 50% of the minimum living wage.
● WEDNESDAY, December 19
Center offers assistance to entrepreneurs in developing Moldovan-Polish economic relations
Moldovan and Polish entrepreneurs who want to start businesses in Moldova or Poland can obtain more information about the conditions, legislation, markets of the two countries from a Moldovan-Polish development and entrepreneurship center that was set up with a grant of €30,000 provided by the Embassy of Poland. One of the main goals of the center is to support the cooperation relations between Moldovan and Polish firms and to develop, implement, monitor and assess local and national development projects. The center offers assistance to young entrepreneurs and startups. Its employees also stage cultural events that promote the Police language, culture, history and traditions. The center does not yet have a building, but this is to be erected by next February and information can be now obtained over the phone.
“Made in Moldova” to present products and services of about 450 business entities
Approximately 450 business entities operating in all the sectors of the national economy will present products, services and accomplishments at the 18th exhibition “Made in Moldova” that will open at the Exhibitions Center “Moldexpo” on January 30, 2019. Companies from 18 districts, business entities from the Autonomous Territorial Unit of Gagauzia and the Transnistrian region will take part in the event with common stands. The president of the Chamber of Commerce and Industry Sergiu Harea told a news conference that “Made in Moldova” in a unique exhibition that promotes the national products and services, with the massive involvement of national companies working in different sectors of the economy. The theme of this year’s exhibition is “At Home. Authentic. Autochthonous”. The exhibition will occupy an area of about 3,200 square meters in three pavilions of the Exhibitions Center.
2019 Chisinau budget given two readings
The Chisinau Municipal Council examined the budget of Chisinau municipality for 2019 in two readings on December 19. The budget provides for revenues of 3.9 million lei and for an expenditure of over 4.2 billion lei. The budget deficit is of almost 326 million lei. Of the total projected revenues, 12% are own incomes, almost 58% are transfers from the state budget, while over 27% are deductions from state taxes and duties. The revenues from rental paid on public property, from pay services and other services will represent 0.3% to 2%. The state budget transfers will be used to cover costs of over 2 billion lei, which is over 51%. The projects financed with foreign funds will cover costs of 328 million lei or 7.7% of the spending. The deficit will be funded with revenues from the sale of apartments to the population, domestic and foreign loans.
Campaign ”Created in Moldova, appreciated worldwide” launched in Comrat
The information campaign “Created in Moldova, appreciated worldwide”, which centers on the opportunities provided by the Deep and Comprehensive Free Trade Agreement (DCFTA) for Moldovan goods and services, was launched in Comrat. The EU Delegation to Moldova said this is the second information campaign that was launched to celebrate four years of the signing of the DCFTA. The first nationwide campaign was kicked off on November 8 in Chisinau. After four years, over 2/3 of Moldova’s exports reach the EU and the net rise in 2015-2017 was of €367 million. The growth led to the creation of at least 15,000 new jobs. In the absence of the DCFTA, the state budget of Moldova would have lost over 7 billion lei in revenues, while the private sector would have lost at least €320 million in investments in fixed capital. “The potential of the opportunities offered by the DCFTA for the Moldovan enterprises is to be yet fully explored. The free access to the EU market offers the companies the opportunity of growing and we encourage them to make all the efforts in this regard,” Vasile Plămădeală, trade officer at the EU Delegation to Moldova, stated in the launch.
● THURSDAY, December 20
It is very important for electoral process in Moldova to be extremely transparent, ambassador
“It is very important for the electoral process that starts in the Republic of Moldova and that will end with elections and then with the formation of a majority and a Government to be extremely transparent. It is a message transmitted by us and also by all the partners of the Republic of Moldova,” IPN quoted Poland’s Ambassador in Chisinau Bartlomiej Zdaniuk as saying in the talk show “Emphasis on today”. The ambassador noted that Poland, since the Republic of Moldova declared its independence, has been a reliable friend and always had good and sincere discussions. These are also continued through the agency of ambassadors, who are permanently in contact with all the partners in Moldova – those of the parliamentary majority, the Government, the opposition, the President and others.
Local taxes increased in Chisinau
A number of taxes levied in the municipality of Chisinau will be higher next year. A draft decision to this effect, approved by the Chisinau Municipal Council, envisions the introduction of new taxes. Under the draft decision, a monthly tax rate of 300 lei will be levied for each unit of transport on the provision of taxi passenger transportation services. The tax for running shops, trading centers, cafes, bars and restaurants will be by 5,000 lei higher for each cash register where tobacco products are sold, while at retail outlets that sell alcoholic beverages the tax will rise by 30%. For the retail outlets with prolonged working program, after 11pm, the tax will also be 30% higher.
Largest investments in agriculture were made in postharvest infrastructure, minister
The year 2018 was a productive one in the agro-industrial sector. Investments in agriculture rose by over 6.1 billion lei. The applications for subsidies in agriculture hit a record high, with the provided sum exceeding 1 billion lei. Exports rose by about 15%, with the exports to the EU accounting for 56%. The results achieved in agriculture in 2018 were presented by Minister of Agriculture, Regional Development and Environment Nicolae Ciubuc in a news conference on December 20. According to the minister, the largest part of the investments went to develop postharvest infrastructure. The car and tractor maintenance yard was renovated. There were set up over 4,000 hectares of orchards and the interest on loans raised by farmers was compensated. In the environmental sector, the State Ecological Inspectorate was reformed and there was created the Environment Agency. The Forestry Agency “Moldsilva” and Moldova’s Water Agency will be the next to be restructured. The Ministry focused on the drafting and approval of the secondary legislation on waste and on the intensification of cooperation with the Ukrainian side in the protection and sustainable development of the Nistru River basin.
● FRIDAY, December 21
2018 in financial sector leaves positive impression, but this is only an impression
Expert of the Watchdog.MD Community Ion Potlog said 2018 in the financial sector leaves a positive impression, but this is only an impression. In reality, it was a year when the state institutions tried to stabilize the financial market, but didn’t hurry to intervene at legal level and took action rather at the regulatory level. The results of the year can be understood and interpreted through the angle of the freezing of the EU macro-financial assistance. According to the expert, given the constraints that derive from the process of regrouping the banking sector, the real economy was in decline. Neither in 2018, the banking institutions showed capacity and continued to be uninterested in investments. As regards the attraction of foreign investment, the Government didn’t achieve results here. The investors don not hurry to enter a market polarized by personal interests and that is politically volatile.
Program of National Bank and banks during public holydays
On December 24, 25 and 31, 2018 and on January 1, 7 and 8, which were declared officially nonworking days, the National Bank of Moldova will not work. Most of the licensed banks working in Moldova will have a similar program, except for some of the branches. Detailed information about the program of banks during the public holidays can be found on banks’ websites or directly at branches. The list of licensed banks and their websites can be found on the official website of the National Bank of Moldova. At the same time, the licensed banks announced that on December 26, 2018 there will be made no transfers in the currency of the EU members states as the banking institutions in these countries will not work on the occasion of Christmas.
● SATURDAY, December 22
Aureliu Cincilei returns to National Bank
Aureliu Cincilei returned to the National Bank of Moldova as vice governor. The decision was taken in a move to fulfil all the priorities set in the central bank’s new strategic plan, which necessities the bank’s Executive Board to be fully filled, IPN reports, quoting a press release of the National Bank. In October 2016, Aureliu Cincilei was named president of the Administration Board of Moldindconbank after unauthorized concerted activities by a group of persons who owned 63.89% of the bank’s shares were identified at this bank.
Court of Auditors focuses on illegal payment of salaries
The Court of Auditors examined over 300 contracts to the value of 1.1 billion lei and about 3,000 reports on the execution of works by contractors and subcontractors operating in the building sector as part of an audit to see how salaries and contributions to the national public budget were paid in 2015-2017. The audit results were presented in a public meeting of the Court of Auditors. It was established that the business entities didn’t obey the legal provisions and didn’t declare payments to the budget in contrast to the data indicated in the reports on the execution of works. A sum of 4.3 million lei was not declared and paid into the budget in the audit period. Thus, about 10 million lei in salaries wasn’t declared. The income tax on the undeclared sums represents at least 1.3 million leiю
New changes made to fiscal legislation
Taxpayers who will commit again such violations as nonuse of cash registers and non-issuing of sales slip or trip tickets during six consecutive months as of January 1, 2019 will no longer be exempted from inspections. This is provided in the amended law on voluntary declaration and fiscal stimulation. The exemption from tax inspections will also not be applied if tax evasion by the distortion of revenues and costs, namely if the cumulative sum of the taxes exceeds 100, 150, 250 and 350 forecast average official salaries, is determined by definitive court decision. The forecast average salary for this year is 6,150 lei.
Pavel Filip: Social investments were made owing to economic growth
Owing to the economic growth and improvement of the business climate, the authorities could make social investments. During a year, there were built thousands of kilometers of roads, renovated hundreds of kindergartens and over 1,000 young families bought the first home through the First House program, stated Prime Minister Pavel Filip, who took part in the third Entrepreneurship Gala alongside more than 1,000 national entrepreneurs, IPN reports, quoting the Government’s press service. The Premier said the organizer of the event, the Moldova Business People Association, supports the Government in the dialogue with representatives of the business sector. Owing to the economic growth and improvement of the business climate, in three years the pensions rose by 47%, while the average salary by 50%. The pensioners with incomes lower than 2,000 lei and other categories of citizens received by 600 lei in assistance on the occasion of the winter public holidays.
