● TUESDAY, May 29

Report on state budget fulfillment complies with requirements, audit

The Government’s report on the fulfilment of the 2017 state budget was compiled appropriately and the implementation of the provisions concerning revenues and costs, deficit and balances related to the budgetary exercise that ended on December 31, 2017 corresponds to the monitoring data of the treasury system, show the results the financial audit on the 2017 state budget fulfillment and performance of the public debt conducted by the Court of Auditors that was presented in a public meeting. The 2017 state budget provided for revenues of 33.778,3 billion lei and an expenditure of 37.802,6 billion lei, with a budget deficit of 4.024,2 billion lei. It was determined that the revenues were by 169.1 million lei higher than the projections, while the expenditure was by 2.323,4 billion lei lower. The budget deficit was by 2.492,5 billion lei lower and was 1.531,7 billion lei. Therefore, the 2017 budget revenue projections were 100.5% fulfilled, while the expenditure projections – 93.9% fulfilled.

State debt sustainability indicators were within limits, audit

An audit mission established that on December 31, 2017, the public sector debt was lower compared with the corresponding period a year before. The balance of the public sector debt was 58.451,7 billion lei, 34.179,2 million (US$1.998,8bn) of which was the external debt and 24.272,5 billion lei was the internal debt. The balance of the public sector debt in 2017 declined by 851.4 million lei (1.4%) on a year before. This debt at the end of last year represented 38.9% of the GDP, a decrease of 4.9%. The performance audit report on the 2017 public sector debt management was presented in a public meeting on May 28. The state debt balance at the end of 2017 was 51.660,3 billion lei. Of this, the external state debt was 29.081,8 billion lei (US$ 1.700,7bn), while the internal state debt was 22.578,5 billion lei. The state debt at the end of last year represented about 34.4% of the GDP and the state debt sustainability indicators were thus within limits, according to the Court of Auditors.

National energy regulator to examine proposed reductions in electricity tariffs

The National Agency for Energy Regulation (NAER) will soon announce a public meeting to examine the proposal of reviewing the electric power tariffs down. The Agency’s specialists suggest higher reductions than those proposed by suppliers. Galina Sanduta, press officer of the NAER, said the institution’s specialists, following calculations done based on the proposal submitted by Gas Natural Fenosa in March, concluded that for the household users connected to a low-voltage powerline, the tariff reduction should be of 12%, not of 5.5% as the supplier proposed. For the users connected to a medium-voltage powerline, the NAER suggests decreasing the tariff by 13.1%, while the supplier estimated a reduction of 6.1%. For the consumers connected to a high-voltage powerline, the Agency proposes a reduction of 13.5%, as opposed to the 6% decrease suggested by Gas Natural Fenosa. Also, the NAER suggests that the tariff for end-users in northern Moldova who are connected to the low-voltage power networks and are served by RED-Nord and FEE should be decreased by 10%, while for those connected to a medium-voltage powerline - by 9.7%.

FAO to offer Moldova assistance to develop competitive agriculture

The Republic of Moldova was chosen by the Food and Agriculture Organization of the United Nations (FAO) as a priority beneficiary of assistance. The FAO will offer all the support needed to develop sustainable and competitive agriculture, to ensure rural development and to alleviates the consequence of natural disasters, FAO Representative for Europe and Central Asia Raimund Jehle, who is also the FAO Non-Resident Representative in Moldova, stated in a meeting with Minister of Foreign Affairs and European Integration Tudor Ulianovschi. In a press release, the Ministry of Foreign Affairs and European Integration said Tudor Ulianovschi noted that Moldova attaches great importance to the cooperation with FAO, being in time not only a beneficiary of assistance, but also a contributor to the exercise of the FAO mandate.

Fuel prices to be raised again

The National Agency for Energy Regulation announced higher fuel price ceilings for the next two weeks. As of May 30, a liter of gasoline will be by 0.64 lei more expensive, while a liter of diesel fuel by 0.66 lei more expensive. A liter of gasoline coded 95 will cost at most 19.79 lei, as opposed to 19.15 lei during the past two weeks. The diesel fuel will be sold for at most 17.75 lei a liter, as against 17.09 lei until now. The new price ceilings will be valid until June 12.

Automotive sector of Moldova has development potential, statements

The automotive sector during the last few years became one of the most dynamic industries that attracted famous international players that decided to expand their businesses in the Republic of Moldova. Last year, the industrial production in the sector rose by 43%, exports by 37%, while the volume of investments exceeded US$ 430 million, Prime Minister Pavel Filip stated in the opening of the second edition of the Moldova Automotive Days. The Premier noted the automotive sector can stimulate the development of the whole national economy. Last year, this sector had about 10,000 employees, but now it employs 15,000 people. As regards the training of young specialists, of the about 700 young people who learn the job directly at the factory, 100 are from the automotive industry.

Agreement with EC presented for public consultations

The European Commission will offer Moldova €12 million for strengthening the economic growth potential. The draft agreement was presented by the Ministry of Economy and Infrastructure for public consultations. Besides the €12 million that will be offered by the European Commission through the European Neighborhood Instrument, €250,000 in co-financing will come from the EU’s Annual Action Program 2017. Investments will be made in economic development and market opportunities, consolidation of institutions and good governance, energy efficiency, environment and climate change. The agreement will be implemented during 84 months of its coming  into force.

Plot on which National Stadium was located to be sold to U.S.

The publicly owned plot of 5.1814 ha on which the National Stadium was built will be sold to the United States that intends to erect a new building for the U.S. Embassy in Chisinau instead of the stadium that was demolished in 2007. A Government decision to this effect drafted by the Ministry of Economy and Infrastructure was proposed for public debates, IPN reports. The informative note to the daft decision says the intention to buy the land was made public by the U.S. last yearend. The Government of the Republic of Moldova is to ensure the negotiation of the price and the signing of the sale and purchase agreement. The National Stadium on Tighina St was built in 1952 and demolished in 2007 owing to the old infrastructure. Foreign investors made attempts to erect a new arena, but these failed.

● WEDNESDAY, May 30

Lower production of acacia honey expected to push prices up

The quantity of acacia honey produced this year is twice lower than last year. This will most probably lead to a rise in the price of acacia honey, which is among the most popular ones. Vice president of the National Beekeepers Association Valentina Cebotari has told IPN that beekeepers’ expectations as regards the acacia honey harvest were higher. The apiarists prepared the bee families, but the acacias blossomed too early and, even if they were full of flowers, the nectar collection period lasted for only two-three days owing to the high temperatures. The variations in the daytime and nighttime temperatures were also a problem. The harvest was by 10 kg of honey on average from a bee family at a time when this is usually of 20 kg. Valentina Cebotari noted the acacia nectar collection coincided with the rape nectar collation and the rape honey harvest cannot be large either. But this coincidence can lead to a mixture of acacia and rape honey and the product will be thus of a lower quality.

Auditors identify no significant deviations in monitoring of fulfillment of social insurance budget

The Court of Auditors didn’t detect significant deviations in the organization and monitoring of the fulfillment of the state social insurance budget by the National House of Social Insurance (CNAS). This is the conclusion reached by an audit team after examining the Government’s report on the fulfillment of the state social insurance budget for 2017, which was presented in a public meeting on May 29. According to the financial audit report, the pension system reform initiated in 2017 resulted in the transfer to the CNAS of the duties to set and pay pensions and allowances to police service pensioners (1.087,2bn lei) and to valorize the old-age and disability pensions (111.1m lei). There was also modified the method of setting pensions. Despite the set deadlines for the transfer of these duties, three authorities haven’t yet completed the process of transmitting the files and documents to the CNAS. Also, the plenitude of information hasn’t been ensured as there was insufficient evidence for verifying the correctness of the pensions set earlier.

Fixed Internet access services market sees growths

The fixed Internet access services market in the first three months of this year witnessed growths in terms of the number of subscribers and of revenues earned from the sale of such services, IPN reports, with reference to the national ICT regulator (ANRCETI). The number of subscribers to such services in the first quarter rose by over 6,000 (+1%) compared with the corresponding period last year, to over 590,000. The sales on this market segment increased by 17.3 million lei (+5.8%), to over 315 million lei. StarNet reported the highest growth in sales, of 11.5%, to 67.4 million lei. Moldtelecom witnessed a 4.5% increase in sales, to 202.4 million lei. The revenues of Sun Communications decreased by 12.8% to 13.5 million lei. The sales of the other providers increased by 13.2% cumulatively, to over 31.7 million lei. The monthly average revenue per user rose by 1% to 178.8 lei. The fixed broadband operators had the following market shares by turnover at the end of the first quarter: Moldtelecom – 64.2%, StarNet – 21.4%, Sun Communications – 4.3%, and the other providers – 10.1% together.

● THURSDAY, May 31

Over US$400,000 to be invested in production of grapevines

More than US$400,000 is to be invested until 2020 in the production of certified grapevines. A memorandum of cooperation to this effect was signed by the Ministry of Agriculture, Regional Development and Environment of Moldova, the United States Agency for International Development, the National Office of Vine and Wine of Moldova, HEKS Foundation Moldova and the Scientific-Practical Institute of Horticulture and Food Technology on May 31. In the signing event, Minister of Agriculture Liviu Volconovici said the actions of support in the field are very important for the Republic of Moldova. The certified grapevines will be later distributed to local winegrowers.

Premier seeks clarification from NAER over fuel prices

Prime Minister Pavel Filip made a request to the National Agency for Energy Regulation (NAER), asking that this should provide clarification over the evolution of fuel prices. Given the ambiguity as regards the conditions that led to the last rise in price ceilings, the Premier proposed that the Agency’s administration should consider the possibility of suspending the last decision. “Even if the Government does not have powers to influence somehow the formation of fuel prices, the Prime Minister considers it is important that any rise should be well-founded and the reasons should be explained to the population in conditions of maximum transparency,” the Government’s press service has said. Pavel Filip also requested the Ministry of Economy and Infrastructure to formulate proposals for improving the legislation and ensuring transparency in the price formation process. He intends to call a meeting with fuel importers and distributors the next few days.

WISE.travel application for wise travelers launched in Chisinau

The online platform WISE.travel, which includes what a person needs to travel at the best price, was launched in Chisinau on May 31. The platform has the slogan “Do good travelling!” and is promoted by the Romanian foundation “Alaturi de Voi” – ADV (“Near You”) in partnership with Keystone Moldova. The platform includes over 180,000 tourist accommodation facilities situated all over the world, most of which provide free reservation and annulation possibilities, over 14,000 activities, predefined vacations with discounts of down to 50%, more than 22,000 cars for rent, flight suggestions and 1,700 NGOs that develop local communities. For any service purchased by each traveler through the platform, WISE.travel directs 50% of the commission charged by the agency to the desired NGO. Together with the member NGOs, WISE.travel develops and promotes social entrepreneurship activities that generate additional incomes for the social, educational programs of NGOs.

● FRIDAY, June 01

NAER suspends last decision to raise fuel price ceilings

The administration of the National Agency for Energy Regulation (NAER) ordered to suspend the last decision concerning the increase in fuel price ceilings adopted on May 29 until the relevant notifications it received, including from the Government and Parliament, are examined. As of today, June 1, there will be used the price ceilings of the previous period, which is 19.15 lei per liter of gasoline ‘95’ and 17.09 lei per liter of diesel fuel. On May 31, Prime Minister Pavel Filip made a request to the NAER, asking that this should provide clarification over the evolution of fuel prices. Given the ambiguity as regards the conditions that led to the last rise in price ceilings, the Premier proposed that the Agency’s administration should consider the possibility of suspending the last decision. Pavel Filip requested the Ministry of Economy and Infrastructure to formulate proposals for improving the legislation and ensuring greater transparency in the price formation process. He intends to call a meeting with fuel importers and distributors the next few days.

Court of Auditors identifies discrepancies in balance sheet of Antidiscrimination Council

The financial situations compiled by the Council for the Prevention and Elimination of Discrimination and Ensuring of Equality by December 31, 2017 are inaccurate and are accompanied by distorting influenced by institutional and financial management that wasn’t adjusted to the principles of good governance. As a result, the information from the accounting balance was presented incompletely. Also, some of the salaries were paid unjustifiably, shows the Court of Auditors’ audit report that was presented in a public meeting on May 31. The Council for the Prevention and Elimination of Discrimination and Ensuring of Equality was created five years ago as a collegial body with the status of legal entity of public law to ensure the protection against discrimination and the quality of all the persons, regardless of ethnicity, education, beliefs or orientation. In 2017, the Council managed allocations totaling 3.3 million lei. The budget was 91.7% fulfilled. The unused allocations came to 0.3 million lei last yearned. The accounting balance sheet shows the property managed by the Council was valued at about 2.072 million lei, while the debts totaled 172,200 lei.

Small-scale farmers should cooperate to gain access to international markets, FAO

Fragmented land, limited access to finance and limited knowledge among small-scale food producers are among the main constraints to growth highlighted in the FAO report Republic of Moldova Value Chain Gap Analysis, published recently. One of the study’s main conclusions is that smallholders from the Republic of Moldova could form associations and service cooperatives to improve marketing of their products and gain access to international markets. The solution might look simple, but many barriers exist, including the distance between farms of a similar type, insufficient awareness among farmers about the benefits of cooperation, and lack of access among farmers to market information.
 

● SUNDAY, June 03

Drivers protest against rise in fuel price ceilings

Stefan cel Mare si Sfant Blvd in Chisinau was blocked for several hours on June 2 by drivers dissatisfied with the increase in the price ceilings of fuels. Even if the National Agency for Energy Regulation suspended the decision by which the price ceilings were raised, hundreds of automobilists took to the streets to demand that the fuel prices should be decreased. The drivers protested first in the Great National Assembly Square, parking their cars in two lines. They honked for several minutes uninterruptedly and then travelled along the streets of Chisinau in a march also honking. When returning, they blocked traffic in central Chisinau. Owing to the protest, trolleybuses hadn’t run on the main artery of the capital city for several hours. Those that didn’t get stuck in traffic were directed to adjoining streets.