● MONDAY, May 7
Banca Transilvania purchases 5.42% more in Victoriabank
Banca Transilvania bought another 5.42% of the shares in Moldova’s Victoriabank as a result of public bidding and now owns over 72% of the commercial bank’s share capital. On the Bucharest Stock Exchange last Friday, Banca Transilvania announced the results of the public bidding. It purchased 1.3 million shares in Victoriabank, which is 5.42% of the bank’s share capital, for 106 million Moldova lei or 25 million Romanian lei.
Moldova prepares country program to access Green Climate Fund
The Ministry of Agriculture, Regional Development and Environment will work out a country program on climate change adaptation and mitigation so that the Republic of Moldova benefits from projects financed by the Green Climate Fund. The continuous cooperation between the governmental institutions and the private sector will improve and stimulate the process of thinking up the country program and the national legal framework needed to obtain financing, said Victor Galusca, head of the Soil and Subsoil Protection Service. Simultaneously, a consultation and training process will be initiated to work out national procedures so that Moldova swiftly becomes eligible and has increased capacities for attracting projects within the Green Climate Fund.
Central bank revises inflation forecast down
The National Bank of Moldova revised the inflation forecast for this year down to an average of 3.3%, from 3.7% anticipated in February. The new forecast projects an inflation rate of 4.9% for 2019, as opposed to 4.7% forecast in February. National Bank vice governor Vladimir Munteanu on May 7 said the main inflation will decrease this year, but in 2019 will rise close to the Bank’s inflation target of 5%. The annual growth rate of regulated prices in 2018 will decline to about minus 4%, but will increase back next year. After a slight growth at the start of the forecast period, fuel prices will go down. Food prices will decrease significantly this year, but will return to the traditional tendencies next year.
● TUESDAY, May 8
106 tractors bought with Japanese funds to be transmitted to Moldovan farmers
A consignment of 106 tractors bought with a grant provided by the Government of Japan for implementing the conservative agriculture project 2KR will be distributed to Moldovan farmers. The ceremony to hand over the technical certificates and license numbers for four tractors was held on May 7. In the event, Prime Minister Pavel Filip noted that the Japanese project is an example of consistency and viability. “This highlights important elements, such as the Japanese Government’s attitude. The Governments in Chisinau changed, but this attitude didn’t change and we feel this support,” stated Pavel Filip. US$24.5 million worth of grants were provided within the 2KR project in the form of agricultural machinery. Almost 9,000 units have been purchased so far.
Owners of farmland located beyond Rabnita-Tiraspol road to receive payments
The persons who own farmland situated beyond the Rabnita-Tiraspol road will benefit from direct payments from the state during 2017-2018. Under a draft Government decision presented by the Ministry of Agriculture, Regional Development and Environment, almost 16 million lei is be allocated from the executive’s reserve fund for the purpose. Under the draft decision that was proposed for public consultations, over 4 million lei will be allotted to the Cocieri mayor’s office, while 2.6 million lei to the Cosnita mayor’s office. The Dorotcaia mayor’s office will get over 6.8 million lei, the Molovata Noua mayor’s office – 1.1 million lei, while the Parata mayor’s office – 1.3 million lei. The money will be provided according to the lists compiled by each mayor’s office apart, in the amount of 1,229.68 lei per hectare.
Volume of released new loans goes up
The volume of new loans provided in the first quarter of this year rose by 1.8% compared with the corresponding period last year. The interest rate on the new loans decreased to 9.51%, according to the report on inflation presented by the National Bank vice governor Vladimir Munteanu on May 7. “We anticipated a decline in the interest rates on loans while presenting the report on inflation in February. This was confirmed, but the pace of decrease in interest rates in the immediate periods could be lower,” stated the vice governor. In the first quarter of this year, the balance of loans in Moldovan lei diminished by 4.7%. The volume of loans released in foreign currency increased by 12.5% in the period.
● THURSDAY, May 10
Ziarul Financiar: Moldova gives European companies stake in gambling industry
Having earlier declared gambling a state monopoly, Moldova is now handing control over gambling and lotteries to two foreign companies under a public-private partnership, Balkan Insight was quoted by the Romanian publication Ziarul Financiar as saying. Thus, Moldova’s Public Property Agency will no longer hold a monopoly on gambling and lotteries in the country, as the state announced plans to implement a public-private partnership project with two EU companies.
Victory of Constantin Codreanu would be first step towards union with Romania, statement
The victory of the National Unity Party Constantin Codreanu in the mayoral elections in Chisinau would be the first step towards Moldova’s union with Romania given that the population in Moldova shows an increasing tendency for reunification, said the president of the National Committee of Romanian-American Republicans Sorin Roiban. “We came here at the invitation and with the support of Eugen Tomac, executive president of the People’s Movement Party of Romania. We are here to provide image support to our unionist candidate in the local elections, to Mister Constantin Codreanu,” Sorin Roiban stated in a news conference. He said Constantin Codreanu is a good exponent of human values and is an excellent candidate for Chisinau.
One quarter of state-owned companies sustain losses, “Viitorul” expert
Twelve of 50 state-owned companies analyzed by the economist of the Institute for Development and Social Initiative “Viitorul” Ion Butmalai sustained losses in 2015-2016. Seven companies had a volatility of sales of up to 35%. This generates a major risk to financial stability, stated the expert. The analysis covered state-owned enterprises where assets are valued at over 1 million lei and the state holds more than 51% of shares. Twelve of these are joint stock companies, while 38 are state-run enterprises, IPN reports. The sales revenues of the chosen companies total about 40 billion lei. These manage assets to the value of 74.7 billion lei.
● FRIDAY, May11
Marculesti International Airport transferred to Ministry of Economy
The Marculesti International Airport was transferred from the Ministry of Defense to the Ministry of Economy and Infrastructure by a decision approved by the Cabinet. The Ministry of Economy and Infrastructure, which more often communicates with potential foreign investors, could contribute to the attraction of investment for modernizing the enterprise. By another decision taken by the Cabinet, the Government’s representative at the Marculesti International Airport Ghennady Manascurta was dismissed based on the resignation tendered by him. He will be replaced by Elena Kachkovski, who is in charge of transport at the Ministry of Economy. The Marculesti International Airport was created 2004. It is 265.2 hectares in area.
Plan of action for implementing national employment strategy
The Government approved the plan of action for 2018 for implementing the national employment strategy for 2017-2021. The assumed actions center on four priorities, namely: creation of formal non-discriminatory and productive employment opportunities; development of human capital for increased employment chances; better governance of the labor market, and realization of the migration potential for sustainable development. In practical terms, emphasis is placed on the creation of jobs at the central and local levels, fighting of undeclared labor, improvement of capacities for collecting and analyzing the labor market forecasts and data. This way, the access to loans for SMES will be further facilitated by providing financial guarantees through the Loan Guarantee Fund. The businesses set up and managed by women will be supported financially through the pilot project “Women in Business”. There will be launched a program to support young entrepreneurs entitled “Start for the Youths”.
Balance of state debt projected to represent 35% of GDP at yearend
The total state debt will increase by 323 million lei, according to the amendments and supplements made by the Cabinet to the 2018 state budget. The internal state debt will rise by 2.091,1 million lei following the issuing of state securities on the primary market based on the reevaluation of foreign loan inflows and in order to meet the deficit financing needs. The external state debt will decrease by 1.768,1 million lei due to loans for supporting the budget and to loans intended for projects financed with foreign funds. These include the project to support the road sector program following the termination of contracts with the contractors. The reduction in this case will be of 352 million lei. The sums intended for repaying foreign loans in 2018, after the specification of the repayment deadlines and the fluctuation of the exchange rate, will decrease by over 101.7 million lei.
2017 was a record year in terms of investments made by EBRD in Moldova, NBM governor
The year 2017 was a record year in terms of the investments made by the EBRD in the Republic of Moldova, in the amount of over €130 million, confirming thus the institution’s position of investment leader with a total of €1.1 billion invested in about 120 projects in the country, National Bank of Moldova governor Sergiu Cioclea stated in the annual meeting of the European Bank for Reconstruction and Development that was held in Jordan on May 8-10. In a press release, the National Bank says that in Jordan Sergiu Cioclea has a series of meetings with the senior EBRD administration and with members of the institution’s Board of Directors to explain the progress in doing economic reforms made in Moldova. Among the most important projects signed by the EBRD in 2017, the Bank’s President Suma Chakrabarti noted the Moldova – Romania energy interconnection projects. Sergiu Cioclea and the Minister of Public Finance of Romania Eugen Teodorovici agreed to intensify the relations between the two countries within the cooperation format provided by the EBRD with the aim of multiplying and accelerating the projects of common interest.
● SATURDAY, May 12
Roman Chirca: Economic growth was due to stabilization of public finances
The economic growth occurred amid the stabilization of public finances, owing to the collection of additional revenues into the state budget, director of the Market Economy Institute Roman Chirca was quoted by IPN as saying in the talk show “Fabrika” on Publika TV channel. According to him, the economic growth was also due to the channeling of a number of projects to infrastructure. “Regrettably, the sector of small and medium-sized enterprises continues to be in difficulty and is afloat. The large sectors are the main driving forces,” stated Roman Chirca, noting that among other important aspects was the banking system, with the elimination of fraudulent practices and diminution of capital costs that enabled to lend more to the economy. However, according to the expert, the business environment in Moldova continues to be toxic.
Excise duties on cigarettes without filter to be raised
The authorities aim to increase the excise duties on cigarettes without filter for 2019-2020. For 2019 the specific excise duty rate will be 460 lei per 1 000 pieces and the ad-valorem rate 6%, while for 2020 - 540 lei per 1 000 pieces and 9% respectively. The Ministry of Finance presented a bill to amend the Tax Code for public debates. Thus, the text “360 lei + 6%” is substituted with “460 lei + 6%”, while the text “480 lei + 9%” is replaced with “540 lei + 9%”. The authors of the bill said the amendment is mainly designed to harmonize the fiscal legislation to the excise duties set by the EU Council Directive of June 2011. In this regard, in accordance with the undertaken commitments, Moldova is to apply an excise duty rate of at least €90 per 1 000 cigarettes until 2025, regardless of the weighted selling price.
