● MONDAY, August 13

Auto Stations and Terminals state enterprise modernization conditions disclosed

The assets belonging to “Auto Stations and Terminals” State Enterprise along with the right to operate transport routes will be granted to a private service provider, which will in return commit to invest, for three years, in the modernization of the enterprise’s 30 branches. Estimated investments start at 200 mil. lei, and the return on investment is projected over a period of 25 years. The conditions of the Public - Private Partnership (PPP) and the general requirements for selecting a partner from the private sector are given in a Government decision, which has been submitted for public discussion by the Ministry of Economy and Infrastructure.

Electronic tax service training for taxpayers

Taxpayers can participate in two training courses on the use of electronic fiscal services, which will take place on August 15 for Russian speakers, and on August 20 for Romanian speakers. The courses will be taught by trainers from the Finance Training Center of the Center for Information Technology in Finance (CTF). The taxpayers will learn about the unified reporting booth, ways to fill in statement sheets on imposable income, mandatory health insurance premiums, and mandatory social security tax. More information on training topics can be found at www.cursuri.fsi.md.

● TUESDAY, August 14

Moldova’s first IT park gathers 245 residents

As many as 245 Moldovan and foreign companies have become residents of the Moldova IT Part since it opened on January 1. This is more than half of the IT industry present in our country. In July alone, the Park added 24 new residents, and overall sales amounted to 1.7 billion lei. The key advantages of being a resident of an IT park is a flat tax of 7% on sales revenue and easier bureaucratic procedures. In particular, the reporting procedure has been simplified and interaction with state agencies has been minimized. Also, a company is not even required to actually reside in the park, but can continue operating from its own premises after registration.

July inflation lower than in previous month

In July 2018, the annual inflation was 3.0%, with 0.2% less than in the previous month. Inflation is, for the third month, under the forecasted minimum variation limit of ± 1.5% from the 5.0% target. According to a press release from the National Bank, the greatest contribution to the annual inflation rate, 2.2%, is due to prices on food products. Base inflation and fuel prices have had an impact of 1.1% and 0.7% respectively. Regulated prices have generated a negative contribution of -1.0%.

Lowest bids in tenders don’t guarantee best procurements, expert

Although measures are set in place to make public procurements more efficient, the problems reported by businesses are corruption, theft, fraud, and shady interests. Public acquisitions are perceived as incorrect, inefficient, and non-transparent management of public money, concludes IDIS Viitorul expert Viorel Pârvan, during the “15 Minutes of Economic Reality” talk show. In the expert’s opinion, the tenders won according to the lowest bid criterion do not always ensure procurement of the best goods or services. “The public procurement system in Moldova is bureaucratic, as businesses – in order to file a price offer – have to submit a series of certificates that many of them deem irrelevant, and take time to be obtained. Current legislation is relatively good, but issues surface when it comes to the implementation of provisions on public procurements,” claims Viorel Pârvan, quoting data from the IDIS Viitorul “Public Procurements Perception Index”.

Bids called for road work at Delacau-Bulboaca-R2

The State Road Administration is looking for a contractor to repair the road G109 Delacau-Bulboaca-R2, with the first stage involving a stretch of 2.3 kilometers. The call for bids was published in the Public Procurement Gazette and on the Administration’s website. The Ministry of Economy and Infrastructure said in a press release the work is estimated at 30 million lei. Interested companies are invited to submit their bids by August 30. National road R2 connects the village of Delacau to Bulboaca village, some 23 kilometers to the south. It also runs along the villages of Puhaceni, Serpeni, Speia, Telita Noua, and Telita on the western bank of the Nistru River. The road will be repaired in stages to avoid blocking traffic. Two segments will be restored completely, as being the most dilapidated: 2.3 km near Speia village and then 4.2 km in Delacau village.

Swine fever outbreak confirmed in Vulcanesti

Another outbreak of African swine fever has been confirmed in the southern town of Vulcanesti, as tests found the virus in two of the four pigs held in a private household. The animals were slaughtered and burned. Vitalie Caraus, the Food Safety Agency’s chief vet, recalled for IPN that on June 20 a quarantine order was issued for the town after two household pigs were found dead on the outskirts. On Saturday, the quarantine was extended for another 60 days. Preventive efforts continue in the town. Filters are in place at the four entrances into the town, with vehicles subjected to checks and disinfection. Pig movement restrictions were also instituted.

Twenty tonnes of Moldovan apples banned at Russian border

Sanitary inspectors banned a batch of about 20 tonnes of Moldovan apples from entering Russia after it was found to be contaminated with larvae of an Oriental fruit moth species, and namely Grapholita molesta Busck. A press release from Rosselkhoznadzor, Russia’s agriculture watchdog agency, said the contamination was confirmed by lab tests. Meanwhile, Moldovan specialists say certain concentrations of pests in fresh fruit is something natural and should not be a reason for disqualifying an entire batch.

More grapes expected than last year

The national grape yield for the current year is estimated at 460 thousand tons, 12% more than in the previous year. Table varieties will weigh in at a total 130 thousand tons, wine varieties – 290 thousand tons, and Isabella varieties – 40 thousand tons. The estimations were presented in a press release from the Ministry of Agriculture, Regional Development, and Environment (MADRM). According to the MADRM, the agrotechnical and phytosanitary states of vineyards are satisfactory, although they haven’t been worked at optimal terms, due to a spike in air temperature in spring. Due to the high volume of rainfall, some areas are affected by grey mold, especially in wine varieties.

● WEDNESDAY, August 15

Higher volume of teller operations in banking in first half of 2018

Cash collected by the banking system amounted to 53525 million lei in the first six months of 2018, i.e. 4% less than in the same period of the previous year, informs the National Bureau of Statistics, quoting data from the National Bank of Moldova. Increases were registered in dues and taxes – 1.0%, consumer goods, regardless of market type – 6.4%, and other payments – 9.2%. Meanwhile, decreases were registered in rent and commodity payments – by 19.4%, from transport companies – by 4.9%, foreign currency sales to individuals – 3.5%, and from companies who provide other services – 0.3%.

National currency trend is result of 2014-2015 bank crisis, expert

Starting with 2017, the national currency has been steadily rising with respect to all other reference currencies posted on the National Bank website. Market Economy Institute expert Viorel Gîrbu believes the trend of the national currency is, first and foremost, a result of the banking crisis of 2014-2015, followed by the currency market shock of 2015. In his opinion, this event blew up the growing trend of the national economy at the time, and has had a profoundly negative effect on the trust of the business sector, leading to reluctance to build new businesses. The expert adds that the main problem occurred with the theft of the billion dollars from the banking sector. “So, the Moldovan leu is rising relative to the dollar, euro, Russian ruble, Romanian leu, and the Ukrainian hryvna. This means Moldovan exports are increasingly expensive, and Moldovan exporters cash in less and less money. This leads to exporters’ progressively smaller capacity to invest in business development, technology updates, and increase salaries, i.e. to raise national economy performance indicators. This can only have a negative meaning, as I see it,” stated Viorel Gîrbu in an interview with Radio Free Europe.

Number of accommodated tourists increases

In the first half of this year, hospitality establishments in Moldova were visited by over 150,000 tourists, which is by 12% percent more than in the similar period last year. The National Statistics Bureau reported that over 71,000 were foreign visitors, and over 80,000 were domestic tourists. Most foreign tourists came from Romania, Ukraine, Russia, the United States, Germany and Italy. Most tourists chose tourist pensions and agropensions, hotels and motels, spas and summer camps. Fewer tourists stayed at hostels. The average stay lasted 5.2 days.

Over 11,000 companies registered in Moldova have foreign ownership

The number of companies with foreign ownership registered in Moldova as of August 1 was more than 11,000. In the first seven months of the year, the Public Service Agency registered 3,585 new companies, according to data provided by the Agency’s Registering and Licensing Department. Most foreign companies are Romanian, accounting for 15.4% of the total Moldova-registered foreign companies. They are followed by number by Italy, Turkey, and Ukraine. However, Dutch capital leads by volume, with the equivalent of more than 2 billion lei invested. Cypriot companies invested nearly as much as that, followed by Italian companies with over 1.5 billion lei. 30% of the companies are wholesalers, 23% retailers, 12% operate in the processing industry, 6% are agricultural businesses, and 5% are in the transport and communication category. 66% of the companies were registered in Chisinau.

● THURSDAY, August 16

Moldovans born after 1974 might not get pensions, MP warns

Persons born after 1974 risk to be deprived of their pensions upon reaching retirement age. The statement was made by PSRM MP Vladimir Odnostalco, on the “Glavnîi vopros” show on NTV Moldova. Socialist MP Vladimir Odnostalco claims the pension program has no future. The politician has pointed out that part of the citizens aged 55 and older return to the country after having worked abroad for 10-12 years, and in a few years the state will have to integrate them into the retirement system, which will strain the budget. “Their first problem is an insufficient employment record, and the second would be that no one wants to hire them,” said the MP.

1.8 million bank cards in circulation in second quarter

The number of banking cards in circulation in Moldova, at the end of this year’s second quarter, has surpassed 1.8 million. In the same period, over 141 thousand cards have been issued, and another 88 thousand have been withdrawn from circulation, according to data from the National Bank of Moldova. In this period, the number of operations with cards issued in Moldova has been over 12.5 million, of which 6.9 million have been cash withdrawals. Total value across operations in this period is 12.8 billion lei, of which 11.1 billion are withdrawals. Over two million operations using Moldovan banking cards have been conducted abroad. These were mostly cashless payments. Total value of said operations was 1.4 billion lei, of which 170.7 million were cash withdrawals and 1.2 billion were card payments.

Cimișlia hosts National Grape Festival

The National Grape Festival will reach its 6th edition on Sunday, August 26, in Cimișlia. The event will gather food-grade grape producers from throughout Moldova. The festival is organized by the administration of the Cimișlia district, who mentions that this is one of Moldova’s largest events dedicated to producers of food-grade grapes. The event is an opportunity to establish new partnership relations, and consolidate efforts towards expanding this business and identifying new markets. Meanwhile, the Festival also acts as a testimony to significant progress made in food-grade viticulture. Contacted by IPN, Head of District Directorate of Culture, Youth, and Sports Iulia Cojocaru said the Festival has become a beautiful tradition, a place of gathering for grape producers, exporters, researchers, as well as for affiliated packaging and planting equipment manufacturers. The Festival will host grape exhibitions and tastings, along with an expansive artistic show. 35 producers and over 50 craftsmen have confirmed their attendance at the event.

Wheat harvesting finished

The harvesting of wheat, barley, green peas, and rapeseed has been finalized in the first ten days of August, according to a memo from the Ministry of Agriculture, Regional Development, and Environment (MADRM). Over 300 thousand hectares of wheat land have been harvested, with a total yield of 1.1 million tons. The average yield is 3.25 tons/ha, similar to averages in the past five years. Of the total amount, 450 thousand tons are food-grade wheat, 550 thousand tons are fodder. 75 tons will be reserved as seed material, 350 thousand tons – for food reserves, and 400 tons – to the husbandry sector. Thus the national food and fodder reserves will be secured, and the excess of 275 thousand tons will be exported

● FRIDAY, August 17

Fly One diverts Russia flights

The Moldovan airline Fly One has announced it’s diverting its Russia flights elsewhere after the federation banned wet-leased aircraft from operating in its airspace. The airline issued a press release to apologize for any flight delays that might occur during a “short period of time” in connection with the rescheduling. The updated flight information can be checked on the airline’s website at flyone.md or at authorized agencies. A wet lease is an arrangement whereby the lessee hires aircraft with complete crew, maintenance and insurance, and pays the lessor by hours operated.

Tax reform set of laws published in Official Gazette

The package of laws dubbed the “small tax reform” has been published in the Official Gazette along with the presidential decree promulgating it. Effective on October 1, a flat tax of 12% will be imposed on individual income. This is replaces the progressive system which levied 7% on annual incomes of up to 33,000 lei and 18% on any amounts above that. Also, under the new rules, taxi drivers earning up to 10,000 lei a month will pay a fixed monthly tax of 500 lei. Personal tax breaks are now rising to 24,000 lei. For individuals who got disabled in combat the tax exemptions are 30,000 lei. Additional exemptions also increased: to 3,000 lei for every child, and to 18,000 for every dependant with congenital or serious disabilities.

Ungheni and Calarasi water and sewage projects launched

Works to rehabilitate water supply and sewage systems in the municipality of Ungheni and Calarasi town have begun and are expected to be completed by December 2020, the Development Agency for the Central Region announced in a press release. The cost of the Ungheni project is 3.2 million euros. It will see the rehabilitation of 12 kilometers of water supply piping, and a further 5 kilometers will be added. The sewage system will also be extended by 6 kilometers. The 2.2 million euros project in Calarasi will involve the rehabilitation of 14 kilometers of water supply and 5 kilometers of sewage piping. 4 more kilometers of water pipes will be added.

● SATURDAY, August 18

Transfer of Auto Terminals into private management may worsen situatio, opinion

The Government initiative to concede auto terminals to a private manager could worsen the already weak state of auto transports. This should be the Government’s last resort, in absence of all other methods to stimulate auto transports. These opinions were expressed on the “Sfatul Țării” show on 10TV. Oleg Tofilat, international expert in public policy, believes the Government has rushed its decision to concede management of auto terminals. The decision hasn’t been announced in time for a society-wide discussion, and no explanation has been given for the Government’s desire to concede, the expert says. Oleg Tofilat believes this concession is a political move. In his opinion, auto transportation has larger priorities than the concession of auto terminals. The expert has referred to e-ticketing, liberalized access to auto transportation, the pricing system, coordinating relevant legislation, strengthening the administrative capacities of the National Auto Transports Agency. Economic expert Sergiu Gaibu believes an assessment should have been made, one that would have indicated the best approach to improving the state of bus terminals. According to him, in this case a very important step has been omitted – analysis. In the analyst’s opinion, the objectives of the concession move should have also been made public.

Domestic tourism falling

In the first half of the current year, Moldovans have chosen to travel to Turkey, Bulgaria, Romania, Egypt, Greece, Ukraine, and other countries. Moldova has been visited by tourists from Romania, Austria, Russia, Ukraine, Germany, Poland, etc. Both emitting and receiving tourism has grown over 20% in the first half of 2018, relative to the same period last year. Meanwhile, domestic tourism has fallen by 4.5%. According to the National Bureau of Statistics, in the first half of the current year, tourism agencies and tourism operators have provided services for 135 thousand tourists and travellers. This is 22.4% more than in the same period of the previous year. The increase in the number of tourists and travellers has been influenced by increases in emitting tourism (+28.2%) and receiving tourism (+24.9%). Out of 8.3 thousand tourists and travellers to visit Moldova in the first half of the year, who have used the services of tourism agencies and tour operators, over 80% have come for leisure and entertainment, 16% for business purposes, and over 3% for treatment.