ECO-BUS WEEKLY DIGEST September 8-12. Most important Economy & Business news by IPN

● TUESDAY, September 8

Employees will be able to choose bank where to receive salary


Each employee will be able to select the bank where to pick up the salary. Prime Minister Valeriu Strelet instructed drafting a relevant Government decision until November 2. The Premier’s Economic Council said the employers now prefer to pay salaries only through the bank where they opened checking accounts. This stimulates corruption and influence peddling at state-run institutions and at enterprises with state capital as well. It is yet more serious that the lack of clear regulations is one of the factors that limit competition in the banking sector and this seriously affects the entire economy. The Labor Code allows the employers to pay salaries through banks with the written consent of the employees. As there are no clear regulations in this regard, the employer decides instead of the employee at which bank the salary will be paid. This situation generates negative effects, violates the employee’s right to choose the trusted bank, limits some of the banks’ access to this service and limits free competition between banks.

Number of subscribers to pay television decreases

The subscribers to cable, IP and MMDS pay television decreased in number in the first half of this year. According to the ICT regulator ANRCETI, the number of subscribers fell by over 5,600 or 2.1% to 268,400, while the volume of sales on this segment diminished by 3.8 million lei or 4.7% to 77.4 million lei. The data presented by the 138 active pay TV operators show that 51.4% of the subscribers used cable TV, 48.2% - IP TV, while 0.4% - MMDS television distribution systems. Also, 58.5% of the subscribers received the TV signal in analog format, while 41.5% - in digital format. The decline in revenues from the provision of pay TV services was due to the lower sales of the cable TV and MMDS system operators.

● WEDNESDAY, September 9

Avia Invest announces completion of works to extend airport terminal

The company Avia Invest, which manages the Chisinau International Airport on a lease contract, said the works to extend the Airport’s terminal on an area of about 4,000 square meters, which includes the arrivals, departures and baggage claim areas, were completed. The extension of the terminal enables the Airport to increase its service capacity almost two times, up to 750 passengers per hour, and to ensure maximum convenience for passengers, it is said in a communique of the company. Avia Invest said there was set up new ventilation and air conditioning equipment and a new audio flight announcement system. The costs for reconstructing and extending the terminal, including for purchasing the modern systems and equipment, total €9 million. In the immediate period, the number of check-ins will be increased from 12 to 18, while the number of passport control checkpoints on arrival and departure will be doubled. One more section will be added to the two-section baggage conveyor belt.

Moldova-Agroindbank to manage state treasury accounts

Moldova-Agroindbank was designated as the winner of the public tender contest to take over the accounts of the state treasury from Banca de Economii, which is under liquidation. The Ministry of Finance said Moldova-Agroindbank was selected in a public tender contest held to choose a bank that will provide services to the local treasuries.

From Chisinau to Iasi by train

A Chisinau – Iasi rail route on which the trains modernized in Romania’s Pascani will run will be launched in the near future. A decision to this effect was taken in the meeting of Minister of Transport Iurie Chirinciuc and his Romanian counterpart Iulian Matache, who assured that all the necessary steps will be taken swiftly. In the same meeting, the two officials discussed the building of a road bridge over the Prut, in Ungheni, and the rehabilitation of the road bridges in Giurgiulesti-Galati, Leova-Bumbata and Leca-Falciu. Iurie Chirinciuc said a governmental agreement is needed for the purpose. The document could be signed in the joint meeting of the Governments of Moldova and Romania in Tulcea on September 22.

Agricultural producers to import diesel fuel for own consumption

The Government on September 9 approved a bill that allows the agricultural producers to import diesel fuel for own consumption. The bill is yet to be passed by Parliament. Thus, the producers registered as legal entities will be able to import diesel fuel based on authorizations issued by the National Agency for Energy Regulation. The tax for obtaining an authorization will be set annually by Parliament.

● THURSDAY, September 10

Contracts with companies repairing Chisinau-Ungheni road terminated

The Ministry of Transport and Road Infrastructure ended the contracts with the companies from Azerbaijan and the Czech Republic that were contracted to repair the Chisinau – Ungheni road, Minister Iurie Chirinciuc confirmed for the press. Chirinciuc said the volume of works executed so far based on the two contracts does not exceed 5% of the planned one at a time when almost 50% of the works should have been performed already. “We often discussed with the representatives of the two firms and agreed that they will present a plan for recovering the lost time by September 1. But the situation didn’t change. I convinced myself of this when visiting this road almost daily,” stated the minister. According to him, the given companies received an advance of €8.5 million, but carried out works to the value of at most €1 million. “They should have invested this money in construction works, but used it elsewhere. The contracts envision penalties. The Republic of Moldova will not sustain losses,” said Chirinciuc.

If agreement with Kroll is not reached, extended tender contest will be announced

If the Moldovan authorities cannot reach an agreement with the U.S. company Kroll over the second stage of investigations into the banking fraud, an extended tender contest will be announced, Prime Minister Valeriu Strelet said in a press briefing on September 10. The Premier noted that in the last meeting of the National Committee on Financial Stability, it was decided to invite representatives of Kroll to Moldova for direct negotiations. “Only if we do not manage to reach a consensus with this company will we hold a new public tender contest and not only four service providers will be invited to it. It will be a contest with pre-selection criteria that would extend the number of participants with experience in in conducting investigating and recovering assets,” he stated.

“Franzeluta” bakery restores old bread prices

The largest baking complex “Franzeluta” decided to restore the old bread prices starting with September 11. On September 10, the Administration Board of SA “Franzeluta” examined the situation following the recent modification of the bread prices. Taking into account the fact that the price of wheat hasn’t been yet set on the home market, while the decision to increase the gas and electricity tariffs was suspended, it was decided to suspend the higher bread prices too.

Agricultural producers complain about barriers in entering EU market

Transparency International – Moldova, which a member of the National Platform of the Eastern Partnership Civil Society Forum, consulted the farmers within the project “Supporting the democratic participation of farmers and food producers in decision-making process in the DCFTA context (Deep and Comprehensive Free Trade Area)”. Most of these invoked the limited access to information and difficulties in obtaining export certificates. The process involved a number of experts. In a roundtable meeting on September 10, one of the experts Mariana Rufa, executive director of the European Business Association, said that almost all the farmers with whom she spoke expressed their wish to take part in as many informative seminars on the access to the EU market and on the customs procedures in force as possible. The farmers complained about the low access to international transport and about the fact that many companies cannot provide this service. Another problem invoked is related to subsidization. Mariana Rufa noted that many farmers said the procedure for granting agricultural subsidies is not transparent and is very difficult.

Suggestions for facilitating export to EU market

Moldova’s agriculture is oriented mainly to the export of fresh fruit and vegetables. This implies a considerable risk in case of rapid sales, stated Mariana Rufa, executive director of the European Business Association, who moderated a number of seminars intended for national agricultural producers. In an end-up roundtable meeting, the expert formulated suggestions for facilitating the farmers’ access to the EU market. Mariana Rufa said the fresh fruit and vegetables production sector needs adjustments so as to eliminate the bureaucratic procedures and to institute financial stimuli for farmers who supply products to the EU. Most of the participants in the seminars invoked exaggerated taxes and duties, including on the registration of land, difficult fiscal procedures, monopoly on the import of seeds and fertilizers and the lack of interest for supporting the organic products sector on the part of the authorities.

● FRIDAY, September 11

 New bill to promote entrepreneurship for developing rural areas 

The young people aged between 18 and 35, students, young specialists or employees who want to test their entrepreneurial aptitudes by putting forward new business ideas are invited to join the project “Promoting entrepreneurship for rural development” that was launched with the support of the Estonian Government. The bill is designed to help the young people start their own businesses, contributing thus to strengthening entrepreneurship in rural areas. The Organization for the Development of Small and Medium-Sized Enterprises said this bill is intended for persons who want to start own businesses or want to create small business teams. The contest is open to teams whose business ideas do not yet generate incomes and entrepreneurs who want to launch a new product or to new services on the market.

Informal economy causes damages of millions of lei to state, trade unions 

The national public budget annually loses 5.6 billion lei following the non-taxing of salaries paid ‘in envelope’. According to estimates of research institutions, to which the National Confederation of Trade Unions makes reference, the salaries paid ‘in envelope’ total about 15.5 billion lei or approximately 50% of the annual remuneration fund. The consequences of informal economy in Moldova were discussed in a meeting of the social partners on September 11. The Confederation’s head Oleg Budza said an efficient measure is to make the punishment for the illegal payment of salaries harsher. “The current penalties do not scare economic entities. The fines should be much heavier. Solutions should be found to ensure the flexibility of the system of taxing economic entities, which should be motivated and interested to work legally,” he stated.

● SATURDAY,  September 12

Romania invests €100,000 in a project launched by ANSA 

The National Food Safety Agency (ANSA) implements a new project to strengthen its institutional capacities with the support of experts of the National Sanitary Veterinary and Food Safety Authority of Romania. The financing of €100,000 for the project is provided by the Ministry of Foreign Affairs of Romania. Within the project, local specialists will be trained to create a European animal health insurance system in Moldova. There will be carried out supervision and control activities, including as regards the implementation and development of laboratory methods, said ANSA vice director Grigore Porcescu. There will also be determined the efficiency of animal vaccination and financed the purchase of lab equipment and reactive substances. Romania’s Ambassador in Chisinau Marius Lazurca said the assistance provided by Romania in the food safety sector became traditional. Over the last few years, there was implemented a project to improve the traceability of animals to the value of €300,000. Within another project, of €500,000, a lab for determining pesticide residues in plants, soil and products was created in Moldova.

Import of means of transport to be facilitated on particular conditions 

The procedure for importing into Moldova and placing under import customs regime units of transport intended for medical purposes, for conveying persons with locomotor disabilities, extinguishing fires, cleaning streets and collecting waste, regardless of the vehicle life expectancy, will be simplified if particular conditions are met. A relevant legislative initiative was put forward by the Ministry of Finance. According to the authors, these units of transport could be imported by legal entities only if the vehicles correspond to the kind of activity performed, in accordance with the documents regarding the foundation of the given companies. The units of transport for conveying persons with locomotors disabilities (reequipped appropriately) could be imported by resident private individuals, citizens of Moldova, only when the disability is confirmed by documents and only in exchange for compensations for transportation costs.

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