ECO-BUS WEEKLY DIGEST June 13-19. Most important Economy & Business news by IPN
●Tuesday, June 21
Natalia Gavrilița: Attempts are being made to create destabilization movement
Prime Minister Natalia Gavrilița warns the citizens not to allow to be manipulated by political forces that try to cause destabilization in society. She said that attempts are made to use the people’s dissatisfaction to facilitate the coming to power of obscure forces. The official assured that effort is being made for the country to have electrical energy and natural gas at advantageous prices. Premier Natalia Gavrilița said the protest mounted in the central square of Chisinau last Sunday is an element of democracy and represents the realization of the right to freedom of assembly. But attempts to cause chaos in society have been witnessed in the recent past.
Moldovans this May borrowed more actively from banks than last May
The new loans provided this May came to 4.120,2 billion lei, an increase of 24.5% on last May. Consumer loans represented 69.5% of the loans raised by private individuals. According to the National Bank of Moldova, the loans repayable in two to five years constituted 52.1% of all the loans. Such loans taken out by legal entities represented 37.2% of all the loans. 60.7% of all the loans were loans raised in national currency, which came to 2.501,3 billion lei. 35.8% were loans in foreign currencies, which, recalculated in Moldovan lei, added up to 1.473,9 billion lei. The loans dependent on the exchange rate of the currently represented 3.5%, totaling 145.1 million lei.
Permanent checkpoint opened at Costești customs post
A permanent checkpoint is now available at the Costești customs post. To avoid the formation of rows near the Costești customs post, carriers will be able to stop near the checkpoint. The export of highly perishable goods will be facilitated and prioritized there. The transit of non-animal perishable goods going to other states than the EU member states is permitted through this border crossing point that works from 8am until 8pm.
Call to authorities to protect businesspeople from right side of the Nistru
The head of the Metals Employers Association Valentin Eșanu calls on the authorities in Moldova to intervene urgently to create equal conditions for the business entities operating on the left side and the right side of the Nistru. He said that currently, the companies of the Transnistrian region do not pay taxes into the state budget, use gas free and cheap electrical energy, while the entrepreneurs from the right side experience harsher conditions. Moreover, the authorities imposed a 12% tax rate on the collection of scrap metal and a cap of 10,000 lei on the purchase of metal by cash. These provisions should be annulled.
European Commission praises stability of Moldova’s financial sector
In its opinion on Moldova’s application for EU membership, the European Commission noted the progress made towards significantly strengthening the stability of the Moldovan financial sector and strengthening macroeconomic policies, among others. Thus, a solid basis has been created for further alignment with the EU acquis. The European Commission’s document notes that prior to the global inflationary pressures fueled by the Ukraine war, the National Bank of Moldova generally managed to keep inflation within its target range and maintained a stable national currency. At the same time, against the background of the sharp rise in energy and food prices, inflation remains one of the major challenges for Moldova’s macroeconomic stability in the future.
●Wednesday, June 22
Excise duties on diesel fuel to be fully covered for SMEs this year
The excise duties on diesel fuel used in 2022 by small and medium-sized agricultural enterprises will be fully covered by the Government, Prime Minister Natalia Gavrilița announced in a working meeting with representatives of an association of agricultural producers. The large agricultural producers will benefit from subsidies in the amount of 30% or of 894 lei/tonne, while the SMEs will be fully paid the excise duty, to the value of 2,980 lei/tonne. The excise duty will be paid retroactively, in accordance with the receipts, starting with January 1, 2022, and almost 14,000 enterprises will benefit from subsidies. The total sum intended for small, medium-sized and large producers is about 277 million lei.
Moldovan leu depreciated by 2.7% against US dollar in May
In May, the Moldovan leu depreciated by an average of 2.7% against the US dollar, to USD 18.9244 / MDL, compared to USD 18.4274 / MDL in April.
The data of the National Bank of Moldova show that in May the coverage of the net demand for foreign currency by economic operators through the net supply of foreign currency from individuals was 106.2%, compared to 67.6% in April. Compared to the previous month, the net supply of foreign currency from individuals increased by $82.3 million, and the net demand for foreign currency by economic operators increased to a lesser extent, by $ 9 million.
●Thursday, June 23
Moldovan civil society awarded for implemented EU-funded projects
Eight Moldovan civil society organizations on June 22 were awarded by the Delegation of the European Union to the Republic of Moldova for the implemented EU-funded projects. The SCOs through their initiatives promoted democratic changes in society, gender equality and assisted the population in overcoming social crises. In the third edition of the European Union Civil Society Awards Gala, the Head of the EU Delegation to the Republic of Moldova Janis Mazeiks said that civil society in Moldova is an example in the management of the refugee crisis as this showed extraordinary mobilization and demonstrated that Moldova is indeed a small country with a big heart.
Vladimir Bolea: CES will consider lifting wheat export ban
In its next meeting, the Commission for Exceptional Situations will consider lifting the ban on the export of wheat, said the head of the parliamentary commission on agriculture and food industry Vladimir Bolea. According to him, the state will help farmers by refunding the excise duty on diesel fuel for small and medium-sized enterprises. At the same time, the Association “Force of Farmers” demands that the Government should partially subsidize the purchase of fertilizers and should bring things on the oil products market in order. The executive director of the Association “Force of Farmers” Alexandru Slusari said farmers’ demands remain the same: subsidies for diesel fuel and fertilizers and the possibility of exporting wheat. The famers’ decision to take agricultural vehicles to national roads is a method of protest, but the dissatisfaction is not politically motivated.
Chances for signing gas agreement with Azerbaijan increase
Different energy projects are in the focus of Azeri and Romanian companies after Azerbaijan, on December 31, 2020, for the first time in history, exported natural gas to the European market through the Southern Gas Corridor. The Republic of Moldova is also making effort to purchase Azeri gas. Earlier this year, Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development, took part in the eighth Ministerial Meeting of the Southern Gas Corridor Advisory Council in Baku. On the sidelines of the meeting, Andrei Spînu met with the Azeri Energy Minister Parviz Shahbazov, who said that his country has the potential needed to increase the exports of Azeri gas and to extend the Southern Gas Corridor.
Grant for a new project to build social dwellings
Parliament ratified a €49,000 grant agreement with the Council of Europe Development Bank (CEB) for implementing a new porject to build social dwellings. Besides building social dwellings, the project envisions the renovation of student and professional dorms and the construction of old people’s homes and homes for persons with disabilities. As many as 556 social dwellings were constructed in 12 districts so far with the assistance of the CEB. Until the end of this year, 121 more dwellings are to be built.
Basarabeasca – Berezino rail branch to be available from autumn
After a hiatus of 25 years, the Basarabeasca (Moldova) – Berezino (Ukraine) rail section will become fucntional. The new branch will ensure connection with the ports Ismail and Belgorod-Dnestrovsk and with the stations Artsyz and Zatoca, IPN reports, with reference to the official channel for verifying government information “First Source”. Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development, signed a Memorandum of Understanding for developing railway connections with the Minister of Infrastructure of Ukraine Oleksandr Kubrakov. As a result, the Republic of Moldova will be able to export/import goods through the Ismail port situated on the Danube and crowdedness in the Reni port will be this way diminished. Ukraine will be able to export goods to Moldova and to the EU member states.
EBRD lends Moldova €300 million for strategic gas acquisitions
The EBRD is lending Moldova €300 million to boost its energy security by acquiring strategic gas reserves to supplement those currently provided by Russia through Ukraine. The loan is for on-lending to the state-owned energy trader JSC Energocom to procure gas on European Union hubs, IPN reports, quoting a press release. The loan will finance up to one-fifth of Moldova’s planned gas imports for 2022, which are vulnerable to potential interruption as a result of the war on Ukraine. Currently these imports all come from the Russian company Gazprom, under a contract that expires in 2026.
●Friday, June 24
NBM determined to further make effort to contribute to European integration
The National Bank of Moldova (NBM) welcomes the adoption by the European Council of the decision by which the Republic of Moldova was granted the EU candidate status. It notes that it is determined to further make effort to effectively contribute to the achievement of the national priority of European integration of the Republic of Moldova. “A huge leap in the European course of our country was made last night. I am glad that the European Union gave this vote of confidence to the Republic of Moldova. It is a vote that makes us understand that we need to work even harder, to drive the process of development and modernization and to bring innovations to our country. The NBM has managed the past few years to strengthen its capacity and bring the banking sector closer to EU standards. We will continue to enhance the stability and functioning of the banking sector, and to strengthen its credibility,” said NBM Governor Octavian Armașu.
●Saturday, June 25
Maia Sandu: I do not see any signs that inflation processes will moderate
President Maia Sandu has gloomy forecasts. She said there are now no signs showing that the prices of energy resources will decline and the rate of inflation will therefore remain high. The Government will try to help the citizens in the cold period of the year by providing subsidies for heat. But only the families with low incomes will benefit from support from the state. President Maia Sandu explained that the increase in all prices is due to the continuous rise in the prices of energy resources on the international market. The high food prices are due to the stopping of imports from Ukraine and to the reorientation to products from the European states.
