● MONDAY, January 21
Direct flights to Salonika to be launched in May
Air Moldova airline will provide flights to a new destination as of May 23, 2019. This is Salonika, which is the second largest city in Greece. In a press release, the airline said that starting with May 23 Greece will be only 95 minutes away from Moldova. The flight will be operated two times a week, on Thursday and on Sunday. The aircraft will take off from Chisinau at 7am and will land in Salonika at 9:25am. Tickets are already on sale.
● TUESDAY, January 22
Baggage to be checked by vets at Rădăuți Prut and Stânca frontier posts
The baggage of all the persons who will cross the checkpoints in Rădăuți Prut and Stânca, at the border with Moldova, will be subject to a sanitary-veterinary check. On its website, Agerpres wrote the measure was included in the plan for controlling, combating and eradicating African swine fever following the appearance of a hotbed in Alba village of Hudești commune of Botoșani County. According to the updated plan, assigned veterinarians at the Rădăuți Prut and Stânca frontier posts will permanently ensure sanitary-veterinary control of the baggage of travelers and will post notices warning that it is not allowed taking meat, mat products, milk products and fodder from Moldova or Ukraine into Romania. The disinfection of the units of transport at the two checkpoints will be ensured by the sanitary-veterinary and food safety divisions through own personnel. Carpets with disinfectant will be placed at each checkpoint by ensuring the contact period of 30 minutes.
Changes proposed to rules of registering vessels
The provisional certificates showing the vessel that was bought or built in another state can sail under the colors of the Republic of Moldova will be issued by the Naval Agency when the necessary records are added to the Register of Vessels or the Naval Catalogue. A draft Government decision to this effect was proposed for public consultations. The certificates will be valid until the permanent registration procedure is completed, but for not more than six months. According to the Ministry of Economy and Infrastructure, a transparent procedure for registering the vessels that sail under Moldova’s colors and the extension of the period of validity of the provisional certificate will enable to ensure a more rigorous control.
Irregularities signaled in management of public funds intended for roads
The quality of roads in the country continues to worsen. However, the approach to the used technologies, guarantee periods and monitoring of works remains the same. As a result, the public funds are not used efficiently, says an analysis carried out by the Center for Policies and Reforms whose authors travelled to localities where roads were renovated as part of the program “Good Roads for Moldova”. The authors said the public funds are used to pay more, but to purchase less and of a poor quality and the quality of the performed works is not checked. Public finances are allocated without assessing the impact of the investment or ensuring the continuity of this. The implementation of contracts is not monitored appropriately. Asa result, the volume of executed works is lower than the contracted and paid volume. The deviations within the program can amount to tens of kilometers. The maximization of the social and economic impact is one of the main objectives of the public costs in the developed countries.
New rules for importing medicines into Transnistrian region
As of February 1, 2019, the medicines, pharmaceutical and para-pharmaceutical products, raw materials for the pharmaceutical industry phytosanitary products and fertilizers could be imported into the eastern districts of the Republic of Moldova only by business entities from this area that registered with the Public Services Agency, IPN reports, with reference to the Customs Service. The import procedures will be performed in accordance with the standards set down by the Customs Service of the Republic of Moldova, while the imported goods will remain only on the territory of the Transnistrian region. Seven companies authorized to import products into Transnistria have been registered so far. The Customs Service said the move is the first stage of the process of unifying the import of such products in accordance with the legislation of the Republic of Moldova and international standards and will last by July 1 this year, when the next stage of the process will be initiated.
European investor receives central bank’s prior permission to purchase shares in Moldindconbank
The Executive Board of the National Bank of Moldova on January 22 decided to give the prior permission to “DOVERIE UNITED-HOLDING AD” for the acquisition of the shareholding of 63.89% of BC “Moldindconbank” S.A., IPN reports, quoting the central bank. The investor expressed its interest in an appropriate period for BC “Moldindconbank” S.A. after the NBM decided by law, on January 18, 2019, to extend for the last three-month period the deadline for selling the newly issued shares of this bank.
● WEDNESDAY, January 23
Academic committee for promoting regional development policies C15 set up
A number of university professors and experts in different areas on January 23 launched the academic committee for promoting regional development actions and policies C15. This is a platform by which the experts aim to warn the political class about the departures in the economic and social development of the Republic of Moldova. In a news conference at IPN, economic expert Veaceslav Ioniţă said the committee was launched namely in the election campaign because in the period the politicians are more sensitive and attentive and the problems faced by society are addressed extensively.
Development discrepancies inside country are worrisome, expert
In the Republic of Moldova, the economic development discrepancies at the level of regions or districts are enormous. The economic activity is concentrated and if this problem is not solved, the risks will be worrisome, said experts who on January 23 announced the launch of the academic committee for promoting regional development actions and policies C15. In a news conference at IPN, economic expert Veaceslav Ioniţă said the Republic of Moldova keeps the status of the poorest state in Europe and everyone knows this. But this is not the most serious problem. The fact that the development discrepancies inside the country are very wide and become more accentuated annually is more serious.
Moldova’s economy is at level of 1982, expert
From economic viewpoint, the Republic of Moldova is at the level of 1982. Earlier Moldova ranked last but one in Europe ahead of Albania, but now Albania is placed fourth at the end of the list with a Gross Domestic Product per capita that is two times higher than that of Moldova. With the current paces, Moldova could catch up with Albania only in 2033, economic expert Vasile Șoimaru stated in the context of the launch of the academic committee for promoting regional development actions and policies C15. “If we compare the Republic of Moldova with other states, like Romania or the three Baltic states - our former “sisters”, for example, we need annual rates of 15-20% to reach their feet at least,” Vasile Șoimaru stated in a news conference at IPN. According to him, since 1990 until 2000, Moldova’s Gross Domestic Product decreased three times. There is no other European or former Soviet state that witnessed such a decline. Since 2000 during 18 years, the Republic of Moldova only rose to the economic level of 1982.
Call to have negotiations on sale of Moldindconbank shares
The National Committee for Financial Stability suggested that the Government should open negotiations with the potential buyer of the undividable shareholding of 63.89% of the commercial bank Moldindconbank so as to facilitate the transition in accordance with the law on the administration and denationalization of public property. According to the National Bank of Moldova, the procedure is applied because Moldindconbank is a bank of systemic importance. Also, the potential buyer expressed interest in an appropriate period for BC Moldindconbank S.A. after the NBM decided by law, on January 18, 2019, to extend for the last three-month period the deadline for selling the newly issued shares of this bank. This way, the sale of the undividable shareholding will be beneficial to the activity of Moldindconbank and the subsequent development of this bank.
Public-private partnership for modernizing bus and minibus stations
More than 30 bus and minibus stations will be fully modernized during the next three years under a public-private partnership. There will be rehabilitated the administrative buildings, platforms and parking lots situated near bus and minibus stations, the sanitary facilities, water supply and sewerage systems and lighting systems. There will be built ramps for persons with disabilities and modernized the information and management systems. According to the Public Property Agency, the rights to operate the services provided by the state-owned company Auto Terminals and Stations were transferred to the private investor for a period of 25 years. The contest was won by the association of economic operators F.P.C. “ExFactor-Grup” S.R.L., “Gările Auto Moderne” S.R.L. and private individual Lluka Muco. The investor is obliged in the period to pay over 5 million lei a year into the state budget. When the partnership contract expires, this will have to transfer to the state all the assets, including the reconstructed ones.
● THURSDAY, January 24
Vladimir Golovatiuc: Moldova’s economy is based on consumption, import and foreign loans
The economy of the Republic of Moldova is now based on consumption, import and foreign loans. Our country does not produce and lives at the expense of the whole world, Socialist MP Vladimir Golovatiuc was quoted by IPN as saying in the talk show “Key issue” on NTV Moldova channel. The MP said the National Bank’s forecasts show that the inflation rate this year will rise and the prices will rise together with this. In an organized state, together with the rise in the population’s incomes, the tariffs also grow. Last year the tariffs for different services were raised insignificantly and the operators suffer losses. The tariffs will be yet increased and the increase could be of 30-40%.
Nicolae Ciubuc: Agricultural forecasts for 2019 are rather optimistic
The suspended minister of agriculture, regional development and environment Nicolae Ciubuc said theagricultural forecasts for 2019 are rather optimistic as there is enough precipitation and the sowed crops develop appropriately. “We have over 300,000 hectares sowed with autumn crops. This is practically the same level as in 2017 and 2018. The state of crops is satisfactory and this makes us believe that the year will not be bad,” the minister stated in the program “Important” on TVC21 channel.
Tutun-CTC privatized
Over 90% of the state-owned shares in the tobacco company Tutun-CTC were sold to the foreign capital enterprise “Le Bridge Corporation Limited”. The sale-purchase agreement was signed on January 11, IPN reports, quoting the Public Property Agency. The purchase price was 167.7 million lei. This amount was already paid into the state budget, as were other taxes required by law. Tutun-CTC was privatized as a result of a commercial contest held as part of the last privatization round announced on October 12 last year. The buyer pledged to develop and optimize the company’s work, to implement technologies and introduce modern equipment. It will keep the company’s specialty and trademarks and the workplaces of qualified personnel and will ensure labor security.
● FRIDAY, January 25
Two road sections closed to large trucks
The sleet that started to fall in the afternoon of January 24 and continued throughout the night of January 25 made the authorities close two road sections to large trucks. These are the Cantemir – Comrat and Anenii Noi – Palanca roads. According to the National Patrolling Inspectorate, ice formed on roads owing to the low temperatures and it was very hard to travel. Not enough antiskid material was spread as it was raining over the already spread material.
Chisinau – Iasi train to run three times a week
The Chisinau – Iasi (Socola) train as from February 1 will run for three times a week instead of two as now, IPN reports, quoting the state-owned company Moldova’s Railways. The train will set off from the Chisinau Railway Terminal on Friday, Saturday and Sunday at 6:10am and will arrive at the Socola Station at 10:15am. It will return to Chisinau at 9:32am after departing Iasi at 5:40pm. A first-class ticket costs 130 lei, a second-class ticket 100 lei, while a third-class ticket 90 lei. The train stops at the stations in Călărași and Ungheni.
Ministry of Finance proposes introducing goods accompanying notice
A new primary document with a special regime could be put into circulation in Moldova, in accordance with the European practices. This will be called “goods accompanying notice”, IPN reports, quoting the amendments proposed by the Ministry of Finance to a number of Government decisions. The form will be drawn up by entrepreneurs for accompanying the goods while transporting them and when transmitting tangible assets for processing or keeping to third persons, without transferring the ownership right. The Ministry of Finance considers the introduction of the form will improve the mechanism for regulating the process of using primary documents with a special regime by the business community.
Regulations on internal trade in Chisinau should be reviewed, legal adviser
The regulations concerning trade in the municipality of Chisinau were approved in a harry and non-transparently, without respecting the requirements of the decision-making process. This is the finding of the legal consultancy company “Juststudiumanima”, which was notified by a number of business entities. The company’s director Igor Blanari, in a news conference at IPN, said the regulations impose strict rules that go beyond the legal limits on businesses involved in ambulatory trade, without specifying each type of activity apart.
Bank performance rankings at end of 2018
The bank performance rankings last yearend were headed by the banks of systemic importance for the national banking and financial systems BC Moldova-Agroindbank, BC Moldindconbank and BC Mobiasbancă. These excelled mainly in terms of profitability and market indicators and accounted for about 81% of the profit made at sector level and for 62% of the bank assets. The rankings were compiled by experts of the independent think tank “Expert-Grup”. According to the rankings, the banks with the most solid capital basis in relation to assets are: BC Eximbank; BCR Chișinău and BC Energbank. The banks with the largest liquid assets are: BC Victoriabank; BC Eximbank and BC Moldindconbank. The banks with the largest liquid assets in relation to the owned assets are BC Victoriabank; BC Eximbank and BC Energbank. The banks with assets of the highest quality are: BC EuroCreditBank; BC ProCredit Bank and BC Fincombank. The banks with the highest return on capital are: Moldindconbank; BC Mobiasbancă and BC Moldova-Agroindbank, while the banks with the largest market share by the loan portfolio are: BC Moldova-Agroindbank; BC Moldindconbank and BC Mobiasbancă.
Transfers from abroad last December down 9%
A total of US$ 96.36 million was transferred to private individuals in Moldova through licensed banks from abroad in December 2018, down 9.3% compared with December 2017. The sum is also lower than in November 2018, when this came to US$ 103.57 million. In the course of 2018, the bank transfers from abroad to Moldovans added up to US$ 1.266,84 billion, up 5.6% on a year before, IPN reports, quoting the National Bank. 42% of the transfers came from the EU, 25.6% from the CIS, while 32.4% from other parts of the world. Transfers from Russia represented 24.4%, 7.5% down compared with December 2017. Remittances from Israel constituted 18.1%, from Italy – 12.5%, from the United States – 9.0%, from Germany – 6.2 % etc. Transfers in euros represented 51.2% (+6.8% on December 2017), in U.S. dollars – 43.0% (-5.1%), while in Russian rubles – 5.8% (-1.7%).
● SATURDAY, January 26
Central bank will continue to reform bank regulation and supervision framework in 2019
The National Bank of Moldova in 2019 will continue to reform the national bank regulation and supervision framework. The reforms in the bank supervision area (Basel III) are aimed at strengthening the banking sector in general and each bank separately. Preliminary conditions will be created for resuming the financing of the real sector and for ensuring sustainable economic growth, IPN reports, quoting a press release of the bank. According to the central bank, these reforms are designed to ensure healthy corporate governance and transparency in the national banking sector so as to attract potential investors and lenders and to maintain the banking sector solid.
