The managers of a number of wine companies called on the authorities to intervene and remedy the difficult financial situation in which they found themselves after Russia imposed a ban on the import of Moldovan wine last September, IPN reports.
In the debates held within the launch of a study of the financial situation of the wine industry following the restrictions imposed by Russia, Eugen Pislaru, deputy chairman of the Association of Wine Producers and Exporters of Moldova, said the situation is critical, the companies being forced to finance current activities from the long-term debts.
“First of all we want the Government to honor its obligations of partner. We were very glad when it was decided to create the National Office of Vine and Wine and a fund for financing winemaking and winegrowing projects, which was to include resources allocated by the private sector and by the Government at a ratio of 50:50. And what happened? In 2013, the wine companies transferred 13 million lei, while the Government nothing. This year we have transferred 9 million lei already, while the Government transferred nothing. We were also glad when a €75 million credit line for the wine sector was opened through the Wine Network. The European banks offer us loans at an interest rate of 2%, while the Ministry of Finance and our banks raise the interest to 6.5% and this credit line is no longer so attractive. Not accidentally, the companies used only 50% of these resources in three years,” stated Eugen Pislaru.
Grigore Sonic, of Lion Gri company, as other participants in the debates pleaded for creating a fund for rescheduling the repayment of loans taken out by wine companies from banks and for financing the interest rates by the state.
“We understand that the state must solve many problems, but possibilities should be found to finance the interest rates on loans at least in the short term. At the end of the month, we have money only for paying the interest and salaries to employees. We cannot speak about modernization and development,” said Sonic. He pleaded for creating a commercial organization under the National Office of Vine and Wine, which would supply the winemaking and winegrowing sector with fuel and substances for protecting the plants. This will lead to a 15-20% reduction in costs.
Vladimir Davidescu, of Vinaria din Vale, said the Government should identify financial resources to subsidize 50% of the cost of equipment needed by wine businesses. “80% of the equipment of our wineries is old. In order to enter the EU, the U.S. and other markets, we need quality, but we cannot ensure quality with old equipment. Besides, it was proposed transforming a part of the wine stores into spirits and the state could buy a part of these. In 2-3 years, the spirits could be sold at a high price. This will enable us to purchase grapes of the new harvest from farmers,” he stated.
The “Analysis of the financial situation of the winemaking sector following the ban imposed by the Russian authorities in September 2013” was made by the National Office of Vine and Wine with the assistance of the USAID CEED II Project. It is based on information collected from 18 Moldovan wine companies that exported large quantities of wine to Russia. The losses of these and other companies that supplied wine to Russia in 2013 alone came to US$18.4 million. This year the losses are projected at US$40 million.
