RETROSPECT OF THE WEEK, MAY 15-21

[The most important economics and business events and Info-Prim Neo news] [Moday, May 15] [Subventions for vineyards plantation might increase starting 2007] The subventions allocated by the state for planting vineyards could be increased starting 2007. This fact was stipulated in an action plan on vineyard planting program 2006 and 2007, Vasile Tarlev asking its issuance. In 2005, there were planted 3,879 hectares of vineyards. Of the total of planned subventions, 83,5 million lei, less than half of them were remitted - 40 million lei. Planting of about 8,000 hectares of vineyards is planned for 2006. [Eximbank acquired by an Italian Bank] On Monday, 15 May, the closing of the transaction whereby Veneto Banca has acquired 100 % of shares of the Joint Stock Commercial Bank “Eximbank” from a Toronto-based Canadian Royal HTM group has taken place, informs Info-Prim Neo referring to the web page of Eximbank. At the moment the Joint Stock Commercial Bank “Eximbank” with its head office located in the capital of the Republic of Moldova has 15 branches and 38 representative offices, located throughout the country, 399 employees, statutory fund of 65 million Moldovan lei (4,2 million Euro) and capital of over 100,000,000.00 Moldovan lei (6,5 million Euro). [Municipality organizes an auction for building “District nr.9” in Ciocana] The mayoralty of Chisinau municipality will announce very soon an international auction for selecting the businessmen for building “District nr.9” of district Ciocana. In the same time, the mayors mentioned that interested companies in building this district guarantee to offer “social” apartments (for civil servants, young families), about 10% of those 22,000 apartments. The price of a “social” apartment will be much cheaper than those sold on market price. Ursu considers that the high number of built apartments in this district could influence the assets market of Chisinau, in order to decrease the price per 1 square meter of dwelling. [Central Stadium to be constructed in Chisinau] The mayoralty intends to construct nearby the Circus a Central Stadium and several commercial and social-cultural edifices, on a total area of 25-30 hectares. The Mayoralty plans to start the works on 27 August 2006. The Mayoralty also plans to demolish small one-story houses and to construct a model district there, said Ursu, quoted by Info-Prim Neo. [Tuesday, May 16] [The meeting of European and Asian Stock Exchanges is held in Chisinau] The inter-regional cooperation of the Euro-Asian Stock Exchanges Association (FEAS) member countries was discussed on Tuesday, 16 May, at the work meeting held in Chisinau. Stock Exchange of Moldova was one of the founders of FEAS in 1995, which has now 50 members. FEAS goal is developing the capital markets of the member countries. [Moldovan wines problem to be settled down soon] The problem of the Moldovan wines can be solved in short-time with or without the help of the Russian market. This is the expected result of the actions undertaken until now and of the actions that will continue at the state level, declared for Info-Prim Neo the Director General of the Agro-industrial Agency “Moldova-Vin”, Valeriu Mironescu. Russia banned the commercialization of Moldovan wines on 27 March 2006, justifying by the fact the Moldovan wines are harmful for one’s life. [Wednesday, May 17] [Exhibitions „Food & Drinks. Food Technology” and „Packaging. Depot” at Moldexpo] About 200 companies from 12 countries of the world, starting Wednesday, 17 May, until 21 May 2006, will take part at the exhibitions „Food & Drinks. Food Technology”, XIII-th edition, and „Packaging. Depot”, XI-th edition. The event is organized by the International Exhibition Center „Moldexpo” and the Ministry of Agriculture and Food Industry (MAIA). [New customs service director appointed] The deputy Minister of Finance, Feodosia Furculita, was appointed on Wednesday, May 17, as director of the customs service. Since 1996 she works at the Ministry of Finance as department head. Since 1998 she was appointed as deputy chief and then chief of the Fiscal Inspectorate of the Buiucani district. On 3 April 2002, according to the decision Government she is appointed as deputy Minister of Finance. [Thursday, May 18] [Licenses for cigarette commerce increased 100-fold] The license for the right to sell imported tobacco goods will cost 2 million lei, increasing 100-fold. The government approved this decision on Wednesday, May 17. The volume of tobacco goods decreased, in January-March 2006, by 32%, diminishing the general rate of industrial production by 1%. [Moldovan Economy Week in Romania to be held in Bucharest] The Moldovan Economy Week in Romania will be organized for the first time, this summe. The event will be held on 12-17 June 2006 and includes exhibitions, debates, and meetings of businessmen, scientists and artists, as well as a cultural program. The majority of events will be organized in the pavilion 16 of the Exhibition Complex „Romexpo” from Bucharest. The Moldovan Economy Week in Romania is organized by „Moldexpo” in cooperation with „Romexpo”, under the supervision of the government of Chisinau. Over 250 representatives of companies and economic institutions from Moldova will take part in this event of Romanian capital. The forum’s agenda is supposed to be rich – seminars, round tables, presentation of certain investment projects, meetings, debates etc. [The project „Trei Iezi village” could be implemented in August] The interim Mayor of Chisinau, Vasile Ursu and the president of the Republic of Moldova, Vladimir Voronin intends to initiate the construction of the “Trei Iezi Village” on 27 August, on the occasion of the 15th celebration of the Independence Day of the Republic of Moldova. The idea of the “Trei Iezi Village” project is discussed by the central and local authorities for about 15 years, but until now nothing tangible was undertaken, inclusively politically or economically. [Friday, May 19] [IDSI „Viitorul” releases a monthly economic and social data bulletin] The Institute for Development and Social Initiatives (IDSI) “Viitorul” launched a monthly economic and social data bulletin, drawn up by the experts of the Economic Policies Center within IDSI. The coordinator of this project, the economist Veaceslav Ionitsa declared that the purpose of publishing the bulletin is not to compete with the Statistics Department (SD) of the Republic of Moldova and is not an alternative for the information presented every trimester by this department. The bulletin presents only briefly the economic figures useful for the political and economic areas. Ionitsa mentioned that the bulletin will be supplemented further with new data in case the beneficiaries will need additional information. [Losses from halting wine exports backed up by IMF credits] The credits offered by the International Monetary Fund (IMF) on the grounds of the Agreement signed recently with Moldova could be also used for reducing the negative impact produced by the bans imposed to Moldovan wine exports. According to the quoted source, IMF monitors closely „the wine crisis”. „We are concerned but at the same time we are positive that the banking system of the Republic of Moldova is strong enough and will be able to overcome these difficulties” Also, Mathisen mentioned that, if needed, IMF credits can diminish this economic shock. [7 thousand Moldovan left the country via Tourist Agencies in three months] The number of the Moldovan citizens that left abroad and benefited of the Tourist Agencies’ services, in January-March, amounted to 6.8 thousand, by 16.6% more than in the similar period of the last year. According to the data of the National Bureau of Statistics, the majority left on vacations – 81%, for treatment – 13%, and 6% for business and professional purposes. The Moldovan preferred to visit, especially Romania – about 50%, 11.3% left for Ukraine, 9.3% for Bulgaria, 6.7% for Bulgaria, 4.6% for Hungary, 3.8% for Turkey etc [Saturday, May 20] [NBM considers aberrant the opinions regarding the banks’ incapacity to pay the deposits of the citizens] The National Bank of Moldova (BNM) denies the information spread in press regarding the incapacity of the banks to pay the citizens’ bank deposits and even the default of the Republic of Moldova. A NBM press release, quoted by Info-Prim Neo ensures the citizens there area no premises for a currency crisis on the interior market, inclusively in the context of the wine banns imposed by Russia. [Leu falls against Euro – experts] The leu vs. the dollar exchange rate will stay stable during this year and will oscillate around 13 lei per dollar. Nevertheless, the leu is going to fall against the euro to reach 17 – 17.5 lei per euro. These are the forecasts of the economic analyst Veaceslav Ionitsa. [Sunday, May 21] [The Development Plan of Chisinau for 2006 will be changed] The development plan for the Chisinau municipality in 2006, that stipulates the financing of objects that must be repaired, reconstructed or finished this year, will be changed. This week, the Commission for constructions, architecture and land resources of the Chisinau municipal Council (CMC) requested the elaboration of a unique document on the base of two annexes of the program, taking in consideration the provisions of the municipal budget for 2006, were a part of the objects included in the program appear. [Many bottles of wine sold in Russia contained only 10% of wine and the rest of water – expert] Very many bottles of wine sold in the Russian Federation, produced out of raw Moldovan wines included only 10% of wine and the rest – water, declared for Info-Prim Neo the economist Veaceslav Ionita. The quoted source mentions that this is exclusively the problem of the Russian economic agents, because the wines were produced by Russian economic agents out of the Moldovan raw wines.