● MONDAY, July 13
Moldova faces most serious challenges to economic security since 1991, report
Moldova currently faces probably the most serious challenges to its economic security since 1991. The current conjuncture is due to the weak and easily influenced state institutions that allowed the propagation of the deep crisis from the banking system and the economic recession in the region. Such conclusions are contained in the State of the Nation Report 2015 that was presented by the Independent Analytical Group “Expert-Grup” at the international conference MACRO-2015. The report was produced in concert with the Friedrich-Ebert-Stiftung. The report says these deficiencies could have been easily overcome if the government had ensured transparency and efficiency in strengthening the country’s economic and social security. The crisis in the banking sector triggered the economic problems faced by the country now. The stealing (of about 12% of the GDP) committed by the three banks of system importance - Banca de Economii, Banca Sociala and Unibank – in 2013-2014 could have been avoided by the National Bank and other competent institutions. The late and insufficient reaction of these institutions can be explained by ill will or incompetence.
Street trading in Chisinau will be reorganized
The local authorities of Chisinau aim to reorganize street trading in inner city. Under the trade strategy that is to be implemented in Chisinau, only the Central Market will remain in the center of the capital, which will be only an agrifood one. The other markets and street trading activities will be relocated. In the July 13 meeting of officials of Chisinau services and divisions, Mayor of Chisinau Dorin Chirtoaca said the Central Market will be intended only for traders in fruit, vegetables, milk products and meat, as earlier. The other markets, of clothes and other industrial goods, including the stalls and kiosks, will be moved to other places. “It will be a painful and difficult reform, but it must be implemented because street trading must be reorganized. The Trade Division was entrusted with the task of working out a calendar plan. We will start with informing the economic entities” stated the mayor.
Agency for Payments disbursed US$1,5m to six groups of agricultural producers
The Agency for Payments and Intervention in Agriculture has disbursed US$1.5 million to six groups of producers that took part in the program of grants in post-harvest infrastructure “Facilitation of market access for farmers” of the World Bank-funded Moldova Agriculture Competitiveness Projects (MAC-P). Most of the groups that accessed the funds participated in the third call of the grants program between April 10 and June 8, 2015. The grants are disbursed immediately after the farmers confirm the co-financing for the investment project. According to a communique of the program, the largest investment project of the six is that proposed by the group of table grape and plum producers of Cantemir district - “Moldagrovitis”. This group will build a two-room cold storage facility with the capacity of over 1,000 tonnes. The total investment in the project is US$1.1 million, US$350,000 of which is the grant from MAC-P.
● TUESDAY, July 14
Website on free trade with EU
A special website centering on the free trade with the European Union was launched in Chisinau on July 14. The event was organized by the Ministry of Economy, which will administer the website. The launch of www.dcfta.md forms part of the measures taken to implement the Deep and Comprehensive Free Trade Agreement (DCFTA), which is part of the Association Agreement with the EU. The website will provide information about the process of implementing the DCFTA and is intended mainly for businessman and also for the general public and the media. Those interested will be able to find here information about the European legislation on trade, the European standards for goods and the provisions of the accord.
● WEDNESDAY, July 15
National Food Safety Agency warns fruit producers
The National Food Safety Agency has warned fruit producers that butterflies of the second generation of oriental fruit moth (Grapholitha molesta) have been detected in orchards of pit fruit. The larvae continue to be fed as a result of the superposition of generations. Thus, prevention and combating measures should be taken beforehand as only the fruit that are not affected by pests can be exported. The larvae of the oriental fruit moth destroy the buds, leaves and fruit of peach, apricot and plum trees. In parts, the pear, apple, cherry and quince orchards can be also affected. The attacked fruit do not develop and become rotten. In Moldova’s conditions, the pests develop three-four generations a year.
Three companies to be deprived of right to provide electronic communication services
To remove the circumstances that led to the suspension of the right to provide electronic communication services and networks, the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) requested withdrawing the licenses allowing providing such services and networks from the companies “Alit”, “MBI-Comert” and “Neccom Grup”. Based on a decision taken by the Agency, the court withdrew the license of “Alit”. The other two applications are being examined. According to the Agency’s report concerning the monitoring and control activities carried out in the first quarter of 2015, the three companies didn’t fulfill their obligation to pay for the numbering resources allotted to them. The ANRCETI issued prescriptions, asking that the companies should clear their debts, but these didn’t comply.
Moldovan industrialists export duty-free to U.S.
On June 29, 2015, the President of the United States Barak Obama signed the Trade Preferences Extension Act of 2015. Title II of the Act authorizes GSP through December 31, 2017 and makes GSP retroactive to July 31, 2013. As provided in the Act, duty-free treatment of GSP-eligible imports will become effective 30 days after enactment (July 29, 2015). Thus, the Moldovan companies will be able to export industrial goods to the U.S. without paying customs duties, the Ministry of Economy has said. As the GSP program was renewed retroactively, the U.S. Customs and Border Protection (CBP) will reimburse U.S. importers for tariffs paid on eligible products during the gap period. Importers should be advised that duties collected may take up to 90 days after liquidation or reliquidation of entries to process and refund retroactively. In July 2015, CBP will be issuing a notice in the Federal Register providing further guidance on the renewal and how to obtain a refund.
● THURSDAY, July 16
“Expert-Grup”: Budget transparency level in Moldova remains stagnant
The level of budget transparency in Moldova didn’t evolve over the last few years due mainly to political factors, says the study “Assessment of transparency in the budgetary process in the Republic of Moldova”, which was launched by the Independent Analytical Center “Expert-Grup”. The Center’s program director Dumitru Budianschi said budget transparency reached the recommended level in 2011, when the first study was made. The probability of the disappearance of the €1 billion lei from the banking system was then very low. The budget transparency index in Moldova in 2015 (which covers the period between 2013 and 2014) was 59 out of 100. It remained at the same level as the index presented in 2012 (for 2010-2011). Dumitru Budianschi noted that there are yet essential changes as regards transparency by different components.
Package of laws on agriculture to be voted next week
The special commission for working out a package of legislative amendments in support of the farmers identified solutions to a part of agricultural producers’ problems and the package consisting initially of four bills is to be considered by Parliament next week. After the July 16 meeting of the commission, Head of Parliament Andrian Candu said they managed to identify solutions to most of the problems reported by the farmers. “We reached a preliminary agreement that the legislative body next week will discuss the commission’s report and will adopt the bills that need the Government’s appraisal in the first reading and the laws that do not need the appraisal in the second reading. We are yet to solve the problem of augmentation of the agriculture subsidization fund, but we are having discussions with the Ministry of Finance and I’m optimistic that we will succeed in solving it,” he stated.
● FRIDAY, July 17
Diesel fuel prices decreased
Two days after the gasoline prices were raised by 0.60 lei, seven oil companies informed the National Agency for Energy Regulation (ANRE) about the cheapening of diesel fuel by 0.3 lei a liter. Thus, the average diesel fuel prices will fall from 16.47 lei a liter this February to 16.2 lei a liter. According to a communique of the ANRE, the decline in the retail prices of diesel fuel is due to the decrease in the purchase prices starting with June. In January – May, the average price of an imported tone of diesel fuel rose in US dollars by 18.3% and in lei by 27.4%, while in the first half of July the prices decreased in dollars by 5.7% and in lei by 0.4% from the average level of May.
EBRD supports investment projects in Moldova
The Moldovan authorities efficiently cooperate with the European Bank for Reconstruction and Development (EBRD) in different areas, especially in implementing investment projects, deputy minister of economy Valeriu Triboi said in a meeting of the Board of the Eastern Europe Energy Efficiency and Environmental Partnership (E5P) in Moldova, which was held in Chisinau. According to the deputy minister, an example is the project implemented at the thermoelectric plant CET-Nord, where €7 million of the €10 million allocated by the development partners was provided by the EBRD. The Bank also decided to lend €6.2 million to the Italian company La Triveneta Cavi for building its branch in Moldova - La Triveneta Cavi Development SRL.
Import of Moldovan plums into Canada discussed during visit to Ottawa
The procedures needed to start the phytosanitary inspection for authorizing the import of Moldovan plums into Canada were discussed in a meeting of deputy minister of agriculture and food industry Vlad Loghin and head of the Plant Biosecurity and Forestry Division Gregory Wolff at the head office of the Canadian Food Inspection Agency (CFIA) in Ottawa. The Moldovan official is in Canada on a working visit. In a communique, the Ministry of Agriculture and Food Industry says the officials welcomed the establishment of a direct dialogue between the National Food Safety Agency of Moldova and the Canadian Food Inspection Agency. The Canadian Agency’s representative confirmed their readiness to launch the phytosanitary examination process and encouraged the Moldovan side to hasten the collection and sending of the information required earlier by the CFIA to the Canadian partners.
Transnistrian administration says why it maintains exchange rate of local ruble
The authorities of the Transnistrian region admitted that they use mechanisms to maintain the exchange rate of the Transnistrian ruble because they want to prevent the sudden worsening of the situation of the population. Dimitry Boltrushko, deputy head of the so-called economy ministry of the region, said the sudden depreciation of the Transnistrian ruble would cause panic among the people and these would start to exchange their savings for foreign currency, but the region’s banking authority does not possess so much foreign currency. Dimitry Boltrushko added that if the ruble was not maintained, the people would become much poorer in a very short period of time. Given that Tiraspol imports a lot, including basic necessities, the prices will soar. The exporters will gain if the ruble depreciates, but the general effect on the economy will be negative.
● SATURDAY, July 18
Energy regulator approves increased natural gas and electricity tariffs
After a day and a part of night of discussions and debates, the National Agency for Energy Regulation (ANRE) approved higher natural gas and electricity tariffs. The tariff for transporting electric power by Moldelectrica was raised to 14.5 bani/kWh, up from 8.02 bani, at a time when Moldelectrica asked for an increase up to 28.0 bani. The ANRE also approved increased tariffs for the power distribution networks working in northern Moldova. The tariff for RED Nord will be 2.23 lei, up from 1.71 lei/kWh, while for RED Nord Vest – 2.33 lei/kWh, up from 1.73 lei.
Agriculture Ministry has a new website, with digital agricultural map
The Ministry of Agriculture and Food Industry has a new website, which was designed to ensure a higher quality of the institution’s official webpage. It also includes an Agricultural Digital Map that contains data about the protected land, cold storage facilities, packing lines and other information. The institution’s press service said the new site was created at a cost of 39,000 lei. The Agricultural Digital Map, worked out by the Agricultural Information Center in concert with the Agency for Payments and Intervention in Agriculture, represents Moldova at conventional, diminished size. It contains the statistical data collected by the Ministry, which are classified according to the following criteria: district, settlement and agricultural producers.
