● MONDAY, October 13
Meat factories of Moldova inspected by Russians
Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselhoznadzor) initiated inspections at Moldovan companies manufacturing products of animal origin. The inspections will be carried out between October 13 and 17, the Service has said on its website. On July 5 this year, Rosselhoznadzor banned the import into Russia of offal from Moldova, including livers, hearts and fats and separated meat.
Grants of over 10m lei for three groups of agricultural producers
Three groups of agricultural producers will receive grants to the value of 10.2 million lei within the post-harvest investment grants program “Facilitation of access to export markets” of the World Bank-funded Moldova Agriculture Competitiveness Projects (MAC-P). The decision was taken by the interministerial application assessment commission headed by Deputy Minister of Agriculture and Food Industry Gheorghe Gaberi. According to a communiqué of the MAC-P project, the groups of producers asked for investment support for building cold storage facilities and installing sorting lines.
● WEDNESDAY, October 15
Results of auction to sell state-owned shares short of expectations
On the first day of the outcry auction to sell state-owned shareholdings held at the Moldova Stock Exchange on October 15, only one of the 28 exhibited shareholdings was sold. It is a 41.9% shareholding in SA Mapamond. The shares were purchased by a private individual at the initial selling price of 0.01 bani per share. The given person will pay the cost of the shareholding plus a private tax of 1% for the transaction. According to the representative of the Public Property Agency, the agrochemicals company Mapamond, based in Glodeni, hasn’t worked for a period, but owns furniture and other assets allowing running businesses.
● THURSDAY, October 16
Moldovan economy minister presents investment opportunities in Germany
Deputy Prime Minister and Minister of Economy Andrian Candu and Parliamentary State Secretary at the German Federal Ministry for Economic Affairs and Energy Uwe Beckmeyer have signed in Berlin a statement on the continuation of the program to train Moldovan managers in Germany. Andrian Candu profited from his visit to Germany ands presented there the investment opportunities offered by Moldova. According to a communiqué of the Ministry of Economy, the Deputy Prime Minister had a meeting with Peter Ramsauer, who heads the Bundestag’s committee on economic affairs and energy. The officials discussed the economic and energy problems faced by Moldova and the stages of implementing the Association Agreement between Moldova and the EU, including the provisions concerning the Deep and Comprehensive Free Trade Area.
Newly created enterprises will be exempted from ‘fiscal visits’
The newly created enterprises will be exempted from ‘fiscal visits’ in the period between registration and until they present the first financial report. Such a request was made by Prime Minister Iurie Leanca to the State Main Tax Inspectorate, which is to comply by November 1, 2014. According to the Government’s press service, this May Iurie Leanca instructed that the State Main Tax Inspectorate, the National Health Insurance Company, the National House of Social Insurance and the National Bureau of Statistics should annul the obligation for the newly created enterprises to additionally register at the local offices of these bodies. Though the given institutions complied and excluded the repeated registration procedure, some of the local offices of the State Main Tax Inspectorate continued to demand that the newly created enterprises should come to these offices for the ‘informative fiscal visit’.
Projected challenges and effects of DCFTA with EU
The Deep and Comprehensive Free Trade Agreement (DCFTA) between Moldova and the EU signed in summer is not incompatible with other free trade agreements. The process of adjusting Moldova’s legislation to the Community acquis will be a difficult one, but the transition can be facilitated by continuous monitoring and negotiation and by technical and financial assistance on the part of the EU. At the beginning, the liberalization of the markets will be asymmetric in order to protect the Moldovan producers. Statements on the issue were made in the debate “How to ensure the successful implementation of the DCFTA in Moldova”. Wicher Slagter, head of the Political and Economic Section of the EU Delegation to Moldova, said the DCFTA ensures the basis for a legal relationship that cannot be used for political purposes.
Sarateni – Soroca road put into operation
The 93-kilometer Sarateni-Soroca road section reconstructed as part of the United States’ $262 million Millennium Challenge Corporation Compact program was opened officially. The road crosses 14 settlements in the districts Telenesti, Floresti and Soroca. Besides the reconstruction of the road, the project to the value of US$120 million included the repair and construction of 14 bridges, building of pavements, drainage channels and bus stations and lighting of the road through settlements. There was also constructed the first interchange in the last two decades.
Moldova joins E5P
Moldova and the European Bank for Reconstruction and Development (EBRD) have signed a contribution agreement on Moldova’s participation in the Eastern European Energy Efficiency and Environment Partnership (E5P). Moldova will contribute €1 million to the fund. The contribution will be paid in five installments. The first installment is €100,000 annually, while the other four installments – €225,000 annually. When the first installment is paid at the start of 2015, Moldova will obtain the status of contributor and will receive financing of €20 million from the E5P.
Farmers can submit applications to be exempted from some taxes by October 20
The Ministry of Agriculture and Food Industry by October 20 will accept applications from fruit, vegetable and grape producers and processors for being included in the list of economic entities that can benefit from particular tax concessions. According to the information published on the Ministry’s website, the application form is available on www.maia.gov.md, in the decisional transparency section. Besides application, there should be presented the copy of the extract from the State Register of Legal Entities or the certificate concerning the registration of the farm, the certificate showing that the farmland or plantation is owned or rented, issued by the mayor’s office, the copy of documents confirming the production or processing of fruit, vegetables and grapes in 2014, and an own responsibility statement about the accuracy of the provided information.
● FRIDAY, October 17
Money for modernizing thermoelectric plant CET-Nord
The Board of Directors of the European Bank for Reconstruction and Development (EBRD) decided to provide a loan of €7 million for implementing the project to modernize the Balti-based thermoelectric plant CET-Nord. The information was made public in a news conference at the Ministry of Economy held on the occasion of the signing by the Moldovan Government and the EBRD of a contribution agreement on Moldova’s participation in the Eastern Europe Energy Efficiency and Environmental Partnership (E5P). The cost of the project to modernize CET-Nord is €10 million. Another €3 million will be allocated in the form of a grant from the E5P. Among the projected results are the increase in energy efficiency and the improvement of the environment in Balti municipality.
Moldova does not develop renewable energy potential, study
Moldova uses 4-5% of its potential for renewable energy. If this potential was fully developed, the country would be able to replace 20% of the used energy with renewable energy by 2016, said energy security expert Vadim Ceban, who is the author of the study “Development of renewable energy in Moldova: realities, capacities, options, prospects”, made for the Foreign Policy Association (APE).The global trend is to increase the use of renewable sources of energy. In the geopolitical context, it is important to develop this sector. “We must switch over to qualitative consumption of renewable energy. We should consume not only agricultural waste, but also processed waste transformed into pellets and briquettes that have a greater caloric power,” said Vadim Ceban.
Swiss company invests in Soroca factory
Prime Minister Iurie Leanca made a visit to the Soroca-based company with Swiss capital “Tommy Tex” that is manufacturing covers for vehicles. The investor runs similar factories in Romania, Serbia, Tunisia, Mexico and the United States. According to the Government’s press service, the investor accepted the proposal to enter Moldova’s labor market this spring. Shortly afterward, more than 100 people were employed at the factory in Soroca to make covers for European cars. They receive a monthly average salary of 4,000 lei. The investor intends to increase its turnover and to employ 1,300 people in less than two years.
Authorities must control investments in generation of eolian and solar energy
The Moldovan authorities must strictly control the investments made in the production of eolian and solar energy and make effort to interconnect the country’s electric power system with Romania’s, energy security expert Vadim Ceban said in a news conference. Vadim Ceban is the author of the study “Development of renewable energy in Moldova: realities, capacities, options, prospects”, made for the Foreign Policy Association (APE). According to him, to facilitate the use of renewable energy, stimuli should be used such as capped tariffs, subsidies for investments and tax concessions. There are many intentions to invest in the production of eolian and solar energy in Moldova, but our system cannot satisfy the demand owing to its poor technical capacities.
● SATURDAY, October 18
World Bank offers US$200m for supporting investments and promoting exports
The World Bank will provide US$200 million to Moldova for creating an agency that will support investment projects and projects promoting exports. The announcement was made by Deputy Prime Minister and Minister of Economy Adrian Candu. According to Andrian Candu, the working mechanism of the future body will be agreed by December. Besides financial support, the World Bank also offers valuable expertise. The minister of economy said the agency will play the role of a development bank intended for entrepreneurs. It will provide preferential loans at the lowest interest rates for developing businesses. The state will also contribute money for supporting investment projects of entrepreneurs from abroad. “Many of the investors accept to come to Moldova only if we offer financial contributions and we must satisfy such requests,” he stated.
Auction to sell public-property shares closed
On the last day of the outcry auction to sell state-owned shareholdings in 28 joint stock companies that was held at the Moldova Stock Exchange between October 15 and 17, there was sold a 21.019% holding in SA EuroCreditBank, which was exhibited for sale for several times. The 2.27 million shares were purchased at the initial price of 10 lei apiece, at the total price of 2.7 million lei. There was also sold the 100% holding in the butter factory SA “Fabrica de unt din Taraclia”. The 347 shares were bought for 3,277.10 lei, 9.3lei apiece.
