● MONDAY, August 6
Agrifood prices fall
In the first half of this year, average retail prices for products sold by agricultural enterprises have amounted to 93%, or by over 7% less than the same period last year. Vegetable prices posted by producers have fallen on average by 8.2%. Tobacco prices have fallen by 33%, berry cultures – by 31%, sunflower seeds (excluding sort seeds) – by 18%, rapeseed – by 15%, cereals and legumes – by 9% (of them, legume bean cultures – by 24%), corn (excluding sort seeds) – by 10%, wheat (excluding sort seeds) – by 3%. Meanwhile, fruit prices have risen by 38%, vegetables – by 18%, and potatoes – by 3%.
● TUESDAY, August 7
Rising exports in first half of 2018
In the first half of the year, trade exports have amounted to 1.3 billion dollars. According to the National Bureau of Statistics, the number is around 28% higher than last year’s same period. In June, goods worth a total of 214 million dollars have been exported, 4% less than in the previous month, yet 25.2% more than in June 2017. Thus, in six months, exports of locally-produced goods have surpassed 877 million dollars, 35.1% more than in January-June 2017. Re-exports totaled at 438 million dollars, a 15.6% increased relative to January-June 2017.
Fuel price caps remain unchanged
The National Energy Regulatory Agency is extending the fuel price caps in effect since July 24 until an overhaul of the pricing methodology. Till then, a liter of gasoline will cost no more than 19.01 lei at the pump and a liter of diesel will remain capped at 16.89 lei. The regulator said in a press release that the measure is in line with an amendment to the petroleum legislation adopted by Parliament on July 20 and published in the Official Gazette on August 3. In compliance with the new provisions, the regulator is now initiating an extensive revision of its fuel pricing formulas.
Minister Gaburici seeks to bring Tesla, Apple and IBM to Moldova
Minister of Economy and Infrastructure Chiril Gaburici is aiming to invite American giants like Tesla, Apple and IBM to do business in Moldova. During a meeting with U.S. Ambassador James Pettit, Chiril Gaburici said he seeks cooperation with the American corporations in order to import their entrepreneurial culture into our country, enhance competitiveness in Moldova, and launch joint business activities. The Ministry said in a press release that Chiril Gaburici briefed the Ambassador on the progress of the economic reforms and the commitments made by the Government to the development partners. Minister Gaburici mentioned in particular the pro-business legal package, the regulatory reform and the simplified fiscal rules.
● WEDNESDAY, August 8
85 km of M3 road to be rehabilitated
The State Road Administration has signed an agreement with the Ukrainian company LLC Automagistral-Pivden to rehabilitate 85 km of national road M3, which connects Moldova’s southernmost point Giurgiulesti to Chisinau. The rehabilitation will involve two stretches of the road: from Comrat municipality to Svetli village, and from Ciumai village to the bypass road of Slobozia Mare village. “With the rehabilitation of this road completed, businesses will have smaller transportation costs and shorter delivery times. Also, people will be able to get faster to their destinations, while ambulances and other emergency services will improve their response times”, stated Minister of Economy and Infrastructure Chiril Gaburici after the agreement was signed.
● THURSDAY, August 9
Imports rose 25% in first half of 2018
In the first half of this year, Moldova received imports totaling over 2.7 billion dollars. This, according to the National Statistics Bureau, is by 25% more than in the similar period of last year. In June, imports stood at 450 million dollars, 9% down on the previous month, and 18% up on June 2017. Accounting for more than half of the total, imports from EU countries amounted to 1.3 billion dollars, 30% up on January-June 2017. Imports from Commonwealth of Independent States countries totaled 637 million dollars (+17.4%) and had a share of 23.3% of the total.
BNM suspends license of bon-banking service provider
The executive committee of the National Bank of Moldova (BNM) has decided to suspend the license of “Artosis” Ltd. - an electronic payment service provider – for a term of six months, starting with August 9 (17.00). BNM says in a press release that the decision has been taken as a result of an on-site investigation of the activity undertaken by the e-currency issuer, taking into account the gravity of the offenses and their repeated perpetration. The investigation identified breaches of the Law on the prevention and combating of money laundering and funding of terrorism, as well as of previous guidelines provided by BNM.
2018-08-09/11:59/ EU funds help Gagauzia family start honey&nuts business
A couple from southern Moldova had worked abroad, and three years ago have decided to return home, to their children. The family have built their own apiary and, with the support of the European Union, have started to produce a honey&nuts jam. The business was launched using an EU grant worth 5.5 thousand euros, along with a personal contribution. UNPD Moldova mentions in a press release, quoted by IPN, that three years ago Gheorghe and Tatiana Cîvîrjic have decided to return from abroad to their native village of Cazaclia, in the Ceadîr-Lunga district. At home, they bought a small apiary from a friend, and today they have over one hundred hives. Unlike other beekeepers in the region, who offer their honey to businesses at wholesale prices, the Cîvîrjic family has founded a farm and are retailing their product.
● FRIDAY, August 10
Sergiu Cioclea: suspension of macro-financing installment will not generate major effects on currency exchange
National Bank Governor Sergiu Cioclea claims that, in the short term, suspension of the macro-funding installment stipulated in the Agreement on EU Macro-Financial Assistance to Moldova, will not generate a major effect on the currency market. The statement was made during an interview with the press. When asked about potential currency trends, in the context of a suspended first installment, Sergiu Cioclea mentioned that the large volume of remittances and high Moldovan exports ensure an important flow of currency on the local market, in spite of commercial deficit erosion. The volume of currency sold by individuals continues to be greater than that offered by businesses, which generally explains the rising trend of the Moldovan leu. The currency inflow for individuals has reached $1.2 billion in 2017, and is still rising, having increased by 16% in the first half of 2018.
Consequences of Laundromat still felt, BNM Governor
The consequences of the so-called “Laundromat” – the laundering of around 20 billion dollars from Russia through the Moldovan banking system – can still be felt. International perception of the Moldovan banking system has suffered greatly, says National Bank Governor Sergiu Cioclea. In a press interview, the governor stated that several foreign banks have severed their ties with Moldovan banks, and added that this process could continue if no major efforts are made to improve our country’s reputation. “As far as we are concerned, the National Bank has toughened supervision of local banks considerably. We work to improve inspections, by implementing an IT solution and by more frequent on-site inspections. We ask all banks to undergo an external audit specialized in fighting money laundering and funding of terrorism. It is a first for Moldova. We will, as soon as possible, amend the legal framework to include new provisions for the Law on Combating Money Laundering and Terrorist Financing,” says Sergiu Cioclea.
Agriculture Ministry expects above-average sugar beet harvest
The Ministry of Agriculture is predicting this year a gross sugar beet output of 800,000 tonnes, as compared last year’s 650,000 tonnes. This year sugar beet has been cultivated on an overall area of 20,000 hectares, which translates to a yield of 40 tonnes per hectare. Vasile Sarban, department head at the Ministry, told IPN the harvest will be enough to produce 117,000 tonnes of sugar. Almost 85,000 tonnes will be for domestic consumption and the remainder will be exported.
Veaceslav Ionita explains exchange rate shifts
Economist Veaceslav Ioniță claims that the European currency is falling due to three factors, and that the Moldovan leu will have kept a stable rate by election time, with slight growth relative to the American and European currencies. The economist published these forecasts within a lengthier analysis on his blog. According to Veaceslav Ioniță, one of the factors that have lead to the rise of the leu is international in nature. Recently, the euro has fallen relative to the dollar on international markets by 2.2%. Another factor is seasonal. Foreign currency falls in Moldova three times a year: during winter holidays, at Easter, and in August, when Moldovans come from abroad with foreign currency and authorities drop the rates for it.
● SATURDAY, August 11
Sic!: President Dodon’s five fake arguments in favor of tax reform
President Igor Dodon has announced the promulgation of a set of laws on fiscal and capital amnesty. The authors of a new article by Sic! remark that the president emerges again as a fervent defender of PDM’s dubious reforms. Following the introduction of the mixed voting system, the President promulgates and defends a reform with questionable benefits and major risks. According to them, his arguments are so weak that it almost seems like he is trying to take upon himself a part of the public heat and help the Democrats bear the weight of these controversial reforms. The article says the decision to promulgate the set of laws on fiscal and capital amnesty has somehow fallen into the shadow of his refusal to promulgate the law that would have sell the land underlying the former National Stadium to the US Embassy. However, for those who care, the head of the state has produced a small essay in defense of the Democrats’ project, even criticizing them for producing a reform that is not deep enough. The authors, however, believe that his arguments are riddled with bogus.
Amounts of food brought into Moldova for personal use to be regulated
The amounts of foods of both animal and non-animal origin that can be brought across the Moldovan border for personal use will be regulated. Authorities say the existing legal gap is frequently exploited by people who essentially smuggle food by hundreds of kilograms without customs officers being able to do anything about it. The list of goods, as well as the allowed amounts are included in a draft Government decision that has been submitted for public consultation. Under the proposed rules, it will be forbidden for individuals to bring in meat and variety meat, sausages, salamis and similar products. All types of dairy and milk-based products are also banned, except for baby formula or products for medical use.
