ECO-BUS WEEKLY DIGEST June 29-July 5. Most important Economy & Business news by IPN
● MONDAY, June 29
Carriers seek support measures from authorities
The situation in road freight and passenger transport has worsened significantly and the volume of services decreased considerably. A large number of employees cannot be remunerated or are paid only a part of the salary. Practically no investments have been made in this sector in 2020, the Consultative Council on Road Transport of the Ministry of Economy and Infrastructure ascertained. The Council requested the senior state officials and the parliamentary groups to take urgent measures to reduce the impact of the pandemic on the road transport sector in Moldova. The carriers reported a drastic decline in the number of passengers and the volume of freight transported in the period after the state of emergency. In parallel, an insufficient number of bilateral and freight transit authorizations for the Russian Federation is issued. This can lead to the blocking of exports in agriculture and other sectors. Investments in the sector haven’t been made and this can have negative effects during the next few years as owing to the non-competitiveness of the sector compared with foreign carriers. The carriers accuse the Modern Bus Station of abuses and of self-assuming the inspection duties of the state.
● TUESDAY, June 30
Doctors’ salaries to be raised by 30% on September 1 and by another 30% on January 1
The salaries of health professionals will be increased in two stages. At the first stage, the pays will be raised by 30% on September 1 and by another 30% on January 1 next year. Their salaries will be then raised by 40% in the first half of next year. Such a decision was taken by representatives of the government coalition in a working meeting on June 29. This involved Prime Minister Ion Chicu and President Igor Dodon. According to a press release, the representatives of the Democratic Party (PDM) and the Party of Socialists (PSRM) also decided to launch the “First House 6” program within which the employees of law enforcement agencies will get compensations equal to 100% of the bought dwelling’s value. This means the state will fully pay the interest rates on loans for police officers, service members, employees of the National Anticorruption Center, the Security and Intelligence Service or the State Guard and Protection Service. A sum of 20 million lei will be allocated from the state budget for the purpose. The sides also discussed the loan of 100 million that is to be provided by the EU for alleviating the impact of the COVID-19 pandemic in the Republic of Moldova.
Markets to have special program. Children under 7 to be banned access to them
As of July 1, the markets in the municipality of Chisinau will work according to a special program, from 5am until 7pm, including on the weekend. Children under seven will be denied access to the markets. This is provided in a decision taken by the Extraordinary Public Health Commission of the municipality of Chisinau on June 29, IPN reports. Monday will be a sanitary day for all the markets in the municipality, regardless of their form of ownership. The shopping centers and trading units working as part of these in Chisinau, except for cinemas and recreation centers, will work as usual, by observing and strictly monitoring the provisions concerning the prevention of infection with COVID-19. The economic activities are resumed on July 1 by mandatorily observing the general public and special measures, with a number of exceptions.
First Moldovan tourists will fly to Antalya by charter flight on July 4
The COVID-19 pandemic made many tourists to cancel the trips scheduled for this summer. Others do not hesitate to make reservations for the immediate period as the tour operators have attractive offers. Turkey will welcome Moldovan tourists from from July, but a series of rules must be obeyed. Greece will also accept tourists from next month, but these will be able to reach the seaside by road only and after filling out a form showing the exact destination. Ukraine and Romania keep the 14-day self-isolation regime for those who enter them. The Moldovan tourists cannot yet reach the seaside in Bulgaria, at least until July 15. Viorica Cașu, director of a tourism agency that provides charter flights to Turkey, said that regular flights to Istanbul will become available as of July 1. A charter flight to Antalya will be operated on July 4. This year, owing to the pandemic, a number of rules that are compulsory for tourists were imposed. On the plane, each passenger must wear a mask and gloves. When at the airport in Antalya, the tourists will be able to buy health insurance for COVID-19, which costs about €24 for seven days. It is not yet known what this will contain, but it will cover the costs for two tests and of stationary treatment. The insurance could be probably bought in Moldova too. Before going through passport control, the tourists will have their body temperature measured. If the temperature is higher than 37.7 degrees, the person will be isolated and will have a test for COVID-19. If the presence of the virus is confirmed, the person will be taken to the hospital. This will be allowed to stay at the hotel only in case of mild symptoms. In hotels, there will be special isolation areas.
● WEDNESDAY, July 1
Moldova can become again success story of EaP trough ECIPES program, IDEP
The German Presidency of the Council of the European Union has the historical chance to contribute to the restoration of Moldova as a success story of the Eastern Partnership (EaP), namely through the ECIPES (European Cohesion by Individual, Public and Entrepreneurs Support) program. The Institute for Development and Expertise of Projects (IDEP) of Moldova on July 1 requested German Chancellor Angela Merkel to favor the approval of the ECIPES program. In a press release, IDEP says the ECIPES program is developed by ordinary people, for ordinary people and is supported by personalities and notable institutions of the EU. The program will benefit 17% of Moldova’s population, 50% of mayors and 2,000 young people. Also, IDEP Moldova repeatedly requested the authorities of EU27 to inform about the ECIPES program, respectfully asking to facilitate the approval of the program through representatives delegated by each country to work on EU institutions. Owing to this program, the Moldovan citizens could apply online to have domestic electrical appliances replaced with appliances of the A+++ class and will get a one-off grant of €100 per person in support. The second large category of beneficiates includes the mayor’s offices that are twinned with EU municipalities. They could implement a local development project with a maximum of €10,000 in EU funding.
Tourism agencies adjust tourist offers
In the new reality configured by the COVID-19 pandemic, the travel agencies in Moldova have to adjust their tourist packages to the local demand. The adjustment of the tourist offers by including the new safety measures that enable to make trips was the main subject discussed in the webinar “Pill after COVID-19. Responses to Challenges Faced by Internal Tourism” that was held on the initiative of the Investment Agency together with the National Inbound Tourism Association of Moldova. In the event, Investment Agency director general Rodica Verbeniuc said the epidemiological situation in the country is uncertain and there is no stability. “We all went through the rethinking of strategies. As the tourism industry in our country centered mainly on the inbound and outbound tourism, we reconsidered the pandemic crisis as an opportunity to come with systemic support for revitalizing domestic tourism. Within the nationwide campaign #NeamPornit (We Got Started), we worked out instruments in support of tourism agencies and tourism service providers so as to update the products, adjust them to the preferences and possibilities of our citizens, generating increased internal consumption,” stated Rodica Verbeniuc. “Magenta Consulting” presented the results of the nationwide survey carried out during the campaign #NeamPornit, with emphasis on the expectations of the citizens, real demand and opportunities in domestic tourism. The study showed that 71% of the Moldovans are interested in visiting national tourist destinations, while two in three respondents prefer active rest. The survey involved over 2,000 respondents aged between 25 and 55.
New version of “e-Invoice” system put into industrial operation
Taxpayers as of July 1 can use the new version of the automated information system for creating and circulating electronic fiscal invoices “e-Invoice” that was put into industrial operation. The “e-Invoice” system can be accessed in an automated way through the system “Personal Taxpayer’s Cabinet” on https://www.sfs.md. The new version of the electronic service was designed and is managed by the Center of Information Technology in Finance. The Center’s director Vitalie Coceban said the designing and launch of the new version of the “e-Invoice” system is one of the most important projects of this year’s agenda, noting their team of IT specialists managed to cope with this challenge. He called on the business entities to more actively use this service so as to convince themselves that this is a convenient, efficient and swift instrument in the recording of transactions, interaction with the State Tax Service and fulfillment of the fiscal obligations.
PPPDA suggests complementing state social insurance budget law
The Party “Dignity and Truth Platform” (PPPDA) registered a legislative proposal concerning the complementing of the law on the social insurance budget for 2020. Under the bill, the calculation of penalties on mandatory state social insurance contributions paid by the employer and on individual mandatory state social insurance contributions will be annulled until December 1, 2020 for business entities that have been affected by the pandemic. In a press briefing, PPPDA vice president Alexandru Slusari, Parliament Speaker, said the business entities remained without Government support, only with promises. There was launched no program for those who are close to insolvency.
Flyone and Air Moldova resume regular flights
Flyone and Air Moldova restarted the regular flights on July 1. The regular flights operated by Air Moldova to Salonic, Larnaca, Nisa and Berlin remain suspended in July. The announcements were placed on airlines’ websites, IPN reports. Flyone said tickets can be booked until next March at prices that start from €39, with all taxes included. The prices for members of Flyone Club start from €34. Flyone operates flights to 14 destinations (Frankfurt, Tel Aviv, St. Petersburg, London, Moscow, Parma, Verona, Dublin, Lisbon, Paris, Antalya, Heraklion, Sharm El-Sheikh, and Bodrum), ten regular flights and four charter flights.
● THURSDAY, July 2
New support instruments for SMEs
The Government approved the program for the support of businesses with high growth and internationalization potential. This is based on three pillars: investment augmentation; development of businesses, competitiveness and productivity of SMEs; orientation to export for reducing imports; creation and strengthening of ties with national and foreign partners. The goal of the project is to support the SME sector that plays an important role in developing the national economy and in creating jobs. Within the approved program, enterprises will benefit from continuous formation, including from a business voucher to the value of 50,000 lei, and from other types of training. Also, these entities will be offered grant components to make investments equal to up to 50% of their value. If the enterprise will still need financing, it could ask for an additional business voucher of 50,000 lei if it invests 40% of the investment’s value from own funds.
Owner of Criuleni hangar with helicopters reacts
Businessman Iurii Ceban, who says he owns the hangar situated in Criuleni district, reported that a group of enthusiasts did technical tests on mock-ups, not on helicopters, as the police called them in press releases. The man noted he holds patents on different technical solutions for fuselage models that were perceived as helicopters by the law. The mock-ups were fully assembled with minimum expenses, IPN reports. “I would even say “thank you” for the advertising on the future aircraft. But with such state attitude to inventions and testing of technical solutions, we started to have doubts already. After the persons in uniforms practically “cleaned” our hangar on June 30, we doubt not only that we can produce in Moldova, but also can invent something without being subject to pressure on the part of the forces,” Iurii Ceban says in an open letter. According to the entrepreneur, any qualified building engineer can confirm that any mock-up, called helicopters by prosecutors, to fly safely or to be bought by someone, needs to be tested for a long period of time and necessitates certification procedures that last for years. “It is a long path from the development of technical solutions, which is what we do now, to ordinary production as the process implies certification and obtaining of numerous local and international licenses and permissive documents,” said the businessman, noting one cannot say that a hangar that is over 10 meters in height and is located in a visible place in Răculești village, about which locals know, cannot be called clandestine
Mobiasbanca – OTP Group celebrates 30 years of work
Mobiasbanca – OTP Group marks the 30th anniversary of the launch of operations, being currently one of the largest four banks operating in Moldova. The bank has now 160,000 clients, employs about 800 people and runs 53 branches situated all over the country. In the immediate period, it plans to invest about €20 million in IT and physical infrastructure. Financial education is among the bank’s priorities and the Foundation for Financial Education “OK” was thus launched on the occasion of the anniversary. In a news conference, CEO of Mobiasbanca – OTP Group László Diósi, Chairman of the Executive Board, said that for almost a year Mobiasbanca has worked as part of the OTP Group of Hungary, with presence in Central and Eastern Europe. “These 30 years were very important for our clients and colleagues, especially in Moldova, when we for the first saw the history of the banking sector, I was shocked to learn that more banks disappeared from the market than exist now. This means the banks that survived the turbulent times full of challenges are already resistant and well-managed forces,” noted László Diósi, saying Mobiasbanca during the pandemic didn’t stop any of its investments and continued to hire new people and to develop the team.
Unemployment rate goes up amid pandemic
Owing to the restrictions imposed in connection with COVID-19, many of the salary earners lost their jobs, said Elena Coban, senior specialist of the National Employment Agency. Elena Coban said that when the state of emergency was declared in March, 1,511 unemployed persons were registered officially with their Agency. In April, the unemployment rate increased significantly, to 9,127 persons. In May, there were registered 6,182 people out of job. During the first half of this year, the officially registered unemployed came to 28,100. Most of the unemployed are aged between 30 and 49 (14,800 unemployed persons or 28% of the total). Those aged between 50 and 65 number 8,200. 17,600 unemployed persons or 63% didn’t have professional qualifications and had only primary/secondary/lyceum education. The women represented 64% of the persons of this category. Elena Coban said the right to unemployment benefit is set by the local subdivisions, while the size is decided by the National House of Social Insurance. The benefit cannot exceed the average monthly official salary for the previous year. For the period of the state of emergency, the persons registered as unemployed at local employment agencies, including the Moldovans who returned from abroad, get a monthly unemployment benefit of 2,775 lei since an application is filed. On June 2, the local employment subdivisions issued 14,698 decisions to set the right to unemployment benefit for the period between May 7 and 15. The National House of Social Insurance is to calculate and pay the unemployment benefit.
Discussions on new three-year program with IMF to be held remotely
The International Monetary Fund (IMF) mission led by Mr. Ruben Atoyan will hold discussions remotely from the IMF Headquarters in Washington, D.C. during July 7–22, 2020, IMF Resident Representative in the Republic of Moldova Volodymyr Tulin has said. “In response to the request from the authorities, the mission will hold discussions with the Moldovan authorities on a new three-year program focused on a comprehensive set of policies that would help maintain macroeconomic stability, support post-pandemic recovery, advance governance and institutional reforms, and mobilize external financing,” runs the press statement.
● FRIDAY, July 3
State Tax Service could investigate economic offenses
The investigation of different economic offenses could become the responsibility of the State Tax Service. A bill to this effect was approved by the Cabinet on July 3. Minister of Finance Sergey Pușcuța said the goal of such a decision is to prevent and fight economic offenses that affect the work of honest business entities and prevent the stimulation of loyal competition. The list includes such offenses as illegal entrepreneurial activities and financial activities, pseudo-activity of entrepreneur and tax evasion of enterprises.
