ECO-BUS WEEKLY DIGEST November 4-10. Most important Economy & Business news by IPN

● TUESDAY, November 5

2020 - 2022 customs fiscal policy provides for introduction of reverse taxation principle

The 2020 - 2022 customs fiscal policy document provides for the introduction of the reverse taxation principle for insolvent companies. According to the Minister of Finance, Natalia Gavrilița, by introducing the principle of reverse taxation, harm to the state budget will be avoided. The topic was discussed during a meeting organized by the Ministry of Finance, attended by representatives of the State Tax Service, the National Bank of Moldova, the business environment, banking institutions and employers' associations. In a Ministry of Finance press release, it is mentioned that the amount of Value Added Tax (VAT) paid for the pledged, mortgaged, sequestered property or for the assets of the companies declared insolvent will be transferred to the budget as a priority.

Ministry of Agriculture introduced new air quality bill

The legislative framework regarding air quality and industrial pollution emissions will be amended. Authorities aim to bring in line national legislative framework with the commitments issued in the Association Agreement between the Republic of Moldova and the European Union.During a presentation event of the bill, Maria Nagornîi, the head of the pollution prevention and environmental assessment department within the Ministry of Agriculture, Regional Development and Environment, said that the term for enacting the law is 3 to 10 years. The MADRM official said that, if enacted, the new law will establish monitoring and pre-emmision requirements for economic agents. Economic activity will be strictly controlled by environmental authorities. Rodica Iordanov, executive director of the non-governmental organization ECO Contact, a partner of the MADRM in the elaboration of environmental policies, said that the law will change a lot in the environmental quality management system.

Over $ 314 million have been transferred from abroad in the third quarter

In the third quarter of this year, the volume of bank transfers from abroad in favor of individuals from the Republic of Moldova accounted for $ 314.71 million, recalculated in dollars. 83.1% of the transfers were made through money remittance systems, without opening bank accounts. According to the data of the National Bank of Moldova, the value of transfers decreased by 0.2% compared to the third quarter of last year, when it amounted to $315.46 million. Eliminating the exchange rate effect by recalculating the amounts at the exchange rate of the respective period of the previous year, the real increase in transfers constituted 2.2%.

Higher prices for hardwood firewood

The average sales price of firewood amounts to 607 lei / stere for the hardwoods (868 lei / m3) this year, by 27 lei more than last year. A stere of softwood costs 344 lei (491 lei / m3), cheaper by 65 lei as compared to last year. In reply to IPN, Moldsilva Agency mentions that, in order to regulate the marketing of harvested wood within the subordinated entities, the Methodology of price formation, setting and regulation has been developed. In addition to cutting down, adzing and sorting the wood from the trees, supplementary works (gathering, collecting and transporting) are performed, the cost of which is included in the final sales price.

Made in Moldova 2020 provides fresh fruits and vegetables in middle of winter

The 19th edition of the national exhibition "Made in Moldova", which will take place from January 29 to February 2, will bring together more than 450 economic agents from all districts of the country. During this edition, for the first time, a special location for eco products will be established. Additionally, in premiere, a special area will be set where fresh vegetables and fruits will be displayed on the territory of Moldexpo, where the event takes place. In a press conference, the Chamber of Commerce and Industry chairman, Sergiu Harea, said that the slogan of the 19th edition is: “Home. Authentic. Local". The exhibition will take place over an area of over three thousand square meters.

● WEDNESDAY, November 6

2020 budget will be solidarity budget, minister

The 2020 budget will be a solidarity budget. This means that salaries and social benefits will increase for most public employees and for people with the lowest incomes. The statement was made by the Minister of Finance, Natalia Gavrilița, during a meeting with the heads of finance departments of the local public administration. According to the minister, raising salaries for public employees is a priority of the current government. The Solidarity Budget bill foresees a 6 - 10% increase of wages for most public employees. Some public employees such as mayors, principals and deputy principals of schools, librarians, cooks, firefighters and military personnel, will have salary increases ranging from 400 to 2500 lei.

Increase in food prices led to higher annual inflation rate, NBM report

In May 2019 the annual rate of inflation, measured by the consumer price index, reverted within the range of 5% ± 1.5 percentage points, while in September 2019 it recorded 6.3%. At a press conference, presenting No. 4 inflation report, Octavian Armașu, governor of the National Bank of Moldova, asserted that regulated prices and fuel prices did not contribute significantly to the rise of inflation. "The medium-term inflation forecast envisages an increase in the inflation rate by the end of 2019. The average inflation will constitute 5% by the end of 2019 and 5.9% by 2020," stated Octavian Armasu.

● THURSDAY, November 7

Lack of economic growth deepens inequality between citizens, report

The lack of sustainable economic growth and the high level of informal economy determines the lack of a large tax base, puts pressure on the social protection system and widens the gap between different categories of citizens. It is one of the conclusions of the conference "Mitigation of inequalities: a fundamental precondition for sustainable economic growth", organized by "Expert Grup" Independent Analytical Center. According to the report presented at the conference, the annual growth rates of the Gross Domestic Product have stabilized at around 4%, without producing the structural changes that the economy of the Republic of Moldova needs. Most of the GDP, over 80%, still consists of the consumption that is strongly influenced by remittances. "Remittances are becoming more and more uncertain, in the long run they tend to decline, and the main factor that has attracted investment - cheap labor - is affected by migration, an inefficient education system and faster growth of wages than of productivity,” stated Adrian Lupușor, executive director of Expert-Grup and co-author of the report.

Official reserve assets make up over $3 billion

Official reserve assets totaled $3 014.03 million at the end of October. The figure has increasing by $72.03 million compared to September 30, 2019, according to National Bank of Moldova data. The increase of official reserve assets was determined by the appreciation of the exchange rates of the component currencies of the foreign exchange reserves against the dollar - $24.39 million. Additionally, it was influenced by the registration of the first loan installment for the Ministry of Finance disbursed by the European Commission, on behalf of the EU, under the macro-financial assistance program - US $22.05 million. Another contributing factor was the registration of grants for budget support for the Ministry of Finance from the European Commission, on behalf of the EU - $15.94 million.

● FRIDAY, November 8

Improving business and investment environment requires 21 reforms, study

A number of 21 reforms could improve the business environment and increase investments in the Republic of Moldova. The conclusion was presented in the policy study "Improving the business environment - stimulating investments: proposal of European companies from Moldova", carried out by the German Economic Team Moldova (GET) and the European Business Association of Moldova. According to the study, the four areas are related to the simplification of requirements regarding the submission of tax invoices by economic agents, the cancellation of the act of surrendering-receiving receipts related to fiscal procedures, the acceptance of certificates issued by EU states on import of goods and equipment and the inclusion of artisan commercial services in the fiscal program that regulates permanent activities.

Searches at natural gas distribution companies

The law enforcement officers conducted today, November 8, searches at the natural gas distribution companies that allegedly caused JSC "Moldovagaz" and its affiliated companies damages of about 20 million lei. According to the General Police Inspectorate (IGP), the searches were made at "Moldovatransgaz", "Soldanesti-Gaz", "Ialoveni-Gaz", "Balti-Gaz" companies. As a result, documents relevant to the criminal case, as well as financial means of unknown origin were seized from public persons. The seized material evidence will be examined to determine the circumstances "as to the implementation of a fraudulent scheme, which caused these damages". The IGP mentions that these searches are related to those conducted in October 2019 at "Ungheni-Gaz" trading company.

● SATURDAY, November 9

Moldova has received 30 million euros from EU

Moldova has received the first tranche of 30 million euros offered by the European Union in macro-financial assistance. It includes a 10 million euros grant component, which was received on Friday and will go to finance the budget deficit. The other 20 million euros were disbursed in the form of loans in the course of October. According to a press release from the Ministry of Finance, the macro-financial assistance granted by the European Union to Moldova is a financing arrangement of up to 100 million euros, of which 60 million euros will be granted in the form of loans and 40 million euros in the form of grants.

ANSA publishes the list of potato producers from Belarus admitted to the Moldovan market

The National Agency for Food Safety publishes a list of over 100 potato producers from Belarus allowed to supply potatoes to the Moldovan market. ANSA specifies that the phytosanitary authorities in Belarus monitored the crops during the vegetation period and carried out laboratory analyses, and as a result the potatoes to be delivered are free from the bacterium Clavibacter michiganensis ssp. Sepedonicus. Between September 12 - November 8 this year, upon the Moldovan phytosanitary authorities’ check at the border of the potatoes imported from the harvest of 2019, the presence of the bacterium was detected in the potatoes delivered by some producers. They are marked in red on the List presented by the Belarusian side and published by ANSA.