RETROSPECT OF THE WEEK

[The most important events and Info–Prim economics and business news] [*Monday, May 22] [Moldovan wines might make their way towards China] The export of wine products on the Chinese market could become an important direction of the Moldovan-Chines comercial-econmic colaboration, declared Wu Bangguo, the chairman of the Standing Comittee of the National Metting of the People’s Representatives of China at a meeting with Vladimir Voronin, in Chisinau. The Moldovan wines festival, which will take place during Novemeber 25-27 in Beijing will be a good ocasion for promoting Moldovan wine products on Chinese markets. [Exchange desks raised the leu/dolar rate] During the past three days, inclusively on Monday, the currency exchange desks from Chisinau posted up a leu/dolar currency exchange rate higher than the rate of the last week – 13.38 lei for buying and 13.4 lei for selling. Solicited to give an explanation, after he has foreseen, at the end of the last week the maintenance of the exchange rate of the national currency versus dollar at the rate of 13 lei until the end of the year, the economist Veaceslav Ionitsa characterized the increase as a “short-time perturbation”. [The Law on Grains Farming Came into Force] On May 19, after the publishing in the “Official Monitor of the Republic of Moldova”, the Law regarding the depositing of grain farming and the regime of the depositing certificates came into force. [Foreign companies to participate at a Business Forum in Chisinau] A Business Investment Forum is to take place on June 6-7, 2006, in Chisinau. About 20 companies from Romania, Italy, Greece, Cyprus, Germany and USA will attend this forum. Other 24 Greek and Italian, Romanian and American companies are following to register for the Forum. According to the Chamber of Commerce and Industry (CCI), the purpose of this Forum is to attract an important number of foreign companies interested in implementing investment projects in Moldova. CCI sources mentioned that invitations were sent to many Moldovan businessmen, but, for the moment, only 10 companies, including from the wine-related business, were accredited. The Moldovan businessmen will have the possibility to establish within the Forum cooperation relations with participant foreign companies. [Enterprises with state capital transacted for the first time at the Stock Exchange] State’s shares in 32 societies will be transacted, starting Monday, 22 May until 9 June 2006, for the first time, at the Stock Exchange of Moldova (BVM). The new privatization methods of the public patrimony has at the ground the principles of transparency and excludes the human factor in taking decisions, MEC experts noted. [*Tuesday, May 23] [BNM explains leu depreciation against dollar by speculative operations] The National Bank of Moldova (BNM) explains the dropping tendency of the national currency against the dollar, registered these days on the currency market, by “speculative operations”. The chaos created on the currency market has no ground and fed additionally by recent wrong data and instigating opinions published in certain periodicals, according to BNM report. BNM considers that the current situation on the currency market has a temporary aspect, which will improve very soon. [The shares remitted by „Moldova-Agroindbank” are maintaining at the cotation of 600 lei/share] The most important tranyaction on the Stock Market, from the beggining of the week, was the tranyaction with the shares remmited by “Moldova-Agroindbank”. Their price is maintaining at the value of 600 lei/share, comparing with the last transaction. [Moldova Survives Due to Emigrants’ Money] The Republic of Moldova ranks first in a rating regarding the remittances transferred home by migrant workers, compared to GDP. According to the European Bank for Reconstruction and Development (EBRD), Moldova exports labor force equal to 27,1% of the Gross Domestic Product. This year’s Update highlights the growing importance of remittances – or cash being sent home by migrant workers – for economic stability and growth in many transition countries. In many cases the remittance flows exceed foreign direct investment (FDI). [*Wednesday, May 24] [„Moldasig” announced a profit of 4 million lei for 2005] The insurance company “Moldasig”, being a state property, announced for 2005 a profit amounting to 4 million dollars, according to the information of the company, the incomes from insurance activity constituted 100.8 million lei, increasing by 19.8% comparing to 2004 (84.1 million lei). During the last year, “Moldasig” cashed insurances amounting to 91.7 million lei, by 25.6% more comparing to 2004. At the same time, the company paid damage compensations of 9.3 million lei, sum 2.5-fold bigger comparing to 2004. [Romanian investors show interest for Moldova] Moldova is among the countries of placed in the interest geographic zones of Romanian investors, according to general secretary of Businessmen Association of Romania (AOAR) Cristian Parvan. Romanian companies extending their business abroad work in the area of industrial services, software, mineral resources exploitation and furniture industry. [Mobiasbanca receives $3 million credit line from EBRD to support local micro and small enterprises] The European Bank for Reconstruction and Development is extending a $3 million credit line to Moldova’s Mobiasbanca to support its lending to local micro and small enterprises (MSEs). The potential market for MSE lending in Moldova is huge, says Francis Delaey, head of the EBRD office in Moldova. Small businesses represent nearly 90% of the total number of enterprises in the country. The Credit Line extended to Mobiasbanca will improve access of these enterprises to loans and will promote competition in the banking market. [Law on Vine and Wine to Improve Moldovan Wines’ Quality – experts] The new Law on Vine and Wine will contribute to the diversification of the first category range of wine and will halt falsifications, declared for Info-Prim Neo, the deputy chairman of the National Institute of Vine and Wine (NIVW), Nicolae Taran. According to the quoted source the previous law was totally changed, being adjusted to European standards. The new law includes many new terms and requirements, which will lead to the diversification of superior quality wines. [The volume of industrial production of RM decreased by 5.3% because of bans on wine] Industrial enterprises of Moldova produced, in January-April 2006, goods worth 6 billion 418 million lei. The quota of the volume of industrial production compared to January-April 2005 was of 94.1%, and in April this quota represented 76.9% compared to the same period of 2005. According to the National Bureau of Statistic, the decrease of industrial production, in the first four months, was caused, especially, by reduction of the wine producing volume – by 28%. [*Thursday, May 25] [Not a secret that many Moldovan wines are faked] „The fact that many wines produced in Moldova are faked, containing flavors, dyes and lots of water, is not a secret anymore, as the fact that in Moldova counterfeit vodka is produced”, the chairman of the Public Association “Moldova mea”, Fiodor Ghelici, stated at the Thursday press conference. [New Law on Cereals suitable if it is to ensure real access of producers to credits] The Republican Union of Farmers Associations „UniAgroProtect” considers that the new Law on Cereal Stocking and Cereal Stocking Certificates Regime will contribute to a great extent to changing the current situation in the field if it will ensure the real access of producers to credits. In this context, „UniAgroProtect” welcomes the approval of the Law at the end of the last week. [Research on construction of electric power line Balti-Novodnestrovsk finished in August] The feasibility study on construction of electric power line Balti-Novodnestrovsc with a length of 132 km will be finished, according to the schedule, in August, the Minister of Industry and Infrastructure, Vladimir Antosii, announced about this at the meeting convened by the Prime Minister Vasile Tarlev. According to Antosii, concomitantly, joint actions are organized on behalf of Romanian part on starting construction of the electric power line Balti-Suceava. It also is negotiated with the European Commission regarding financing of the construction of both mentioned lines. [*Friday, May 26] [More Transnistrian businessmen registered in Chisinau] In May alone, 53 Transnistrian businessmen registered at the State Registration Chamber (CIS) of Moldova, representing one third of the total number of 168 businessmen of the region, registered by CIS. 70 of them have temporary registration with the code IDNO, and 98 – permanent registration. The new customs regulations at Moldovan-Ukrainian border were implemented on 3 March 2006, according to the agreement concluded, at the end of last year, between Prime Ministers of Moldova and Ukraine. [Over 400 farmers received VAT reimbursement for pesticides and fertilizers] Until now, over 400 businessmen of the agricultural sector were offered value-added tax (VAT) reimbursements of 20%, for purchasing pesticides and fertilizers, the Minister of Agriculture and Food Industry, Anatolie Gorodenco, announced about this at the working meeting convened by the prime minister Vasile Tarlev. According to data of the Ministry of Finance VAT reimbursement for performing deliveries within the agricultural sector is made according to already set terms, without any cases of retaining. There already 3.2 million were reimbursed. [*Saturday, May 27] [The secretariat of the strategic committee for sustainable development will start its activity in several days] The secretariat of the Strategic Committee for Sustainable Development of the Chisinau Municipality will start its activity in few days The composition of the secretariat was already confirmed and it will have an office at the first floor of the City Hall having the task to gather and systemize the problems, opinions and proposals formulated by citizens in designing the General Urban Plan (PUG) of the Chisinau municipality. [Commercial banks might lose their licenses if performing speculative transactions] Commercial banks risk losing their activity licenses if performing speculative transactions, inclusively in the period of the leu’s depreciation. The banks will have to prove the National Bank of Moldova (NBM) they respect certain balance between the rate of buying and selling, declared for Info-Prim Neo, the economist Veaceslav Ionita. He mentioned that at present “the problem is not the lack of currency, but the fact that the persons who possess currency do not want to sell it, because they wait for speculations. [Tender to build Northern bus station to take place in mid June] On January 15, 2006 a tender will be held to appoint the entrepreneur to build the Northern Bus Station. The project is evaluated to about 100 million lei and will be finished in the next two years. The counselor of the Chisinau interim Mayor, Tudor Garbu, declared for Info-Prim neo that at the first stage, the access ways and the engineer networks will be constructed, work that will start immediately after the appointment of the responsible entrepreneur. The building of the Northern Station will be started the next year. [First edition of „Neogen-Service Guide 2006” published] Starting May 26, in the book trade network will appear the “Neogen –Service Guide 2006”, that contains information on Ministries, embassies, business institutions, transport and tourism, commerce, medical assistance, education and different services from Moldova. [*Sunday, May 27] [A new METRO store is being built in Chisinau] A new METRO store is being already in Chişinău municipality. The location of the second Metro store lies on an area of 5 hectares nearby the Plant’s Biological Protection Institute in the Airport region. [Legislation of Moldova to be leveled to quality European standards] The Chamber of Commerce and Industry (CCI) of the Republic of Moldova in collaboration with the Moldovan-German Partnership project in the business area, will organize on May 30, the seminar entitled “Leveling the legislation of the Republic of Moldova to quality European standards (ISO, HACCP). According to ICC, during the seminar will be tackled the perspectives regarding the leveling of the Moldovan legislation to European, especially in the area of management system of ISO quality and the management system of the alimentary product’s inoffensiveness according to the HACCP code.