● TUESDAY, February 16
ICT Ministry: Bill on post office matches European Postal Services Directive
The Ministry of Information and Communication Technology said the draft Law on Post Office corresponds to the European Commission’s Postal Services Directive. Such a statement was made after members of the Association of Independent Press said the bill does not agree with the European Directive. According to the Association’s members, the bill, which was passed by Parliament in the first reading at the end of last December, excludes the distribution of books, catalogues, newspapers and other publications, from the universal postal service. “We consider that the concerns stated by the Association of Independent Press as regards the non-compliance of the bill with the European Directive, are groundless. The draft Law on Post Office, at different formulation stages, was subject to a number of amendments suggested by European and national experts so as to strictly adjust its provisions to those of the European Commission’s Directive, including the list of services included in the universal postal service to which the Association makes reference,” it is said in a press release of the ICT Ministry.
“Expert-Grup”: Political instability is a major cause for stagnation of budget transparency index
The Budget Transparency Index of Moldova made no progress during the last few years mainly because of political factors. The Independent Analytical Center “Expert-Grup” determined that Moldova in 2015 had a score of 59 out of 100, remaining at the same level as in 2012. This shows that the government offers the public limited budget information. Analysis author Tatiana Savva said this score places the country the 27th out of 100. At regional level, Romania moved up to the Top 10 countries, in contrast to the 49th rank in 2012. Since 2012, the Republic of Moldova has improved transparency in the publication of the adopted budget and of the annual state budget implementation report, but made no progress in drafting the budget for the people and the mid-year review. As regards the people’s participation level, the country scored 20 points out of 100 possible, which means that the government does not manage to engage the people in the process of working out the budget.
Moldova didn’t take opportunities to export to EU offered by Association Agreement, analysis
In 2015 Moldova didn’t take the opportunities to export to the EU offered by the Association Agreement. Moldova’s exports to EU last year were larger compared with 2014, but their value decreased by 2.3%. This means that we exported more, but at lower prices, reveals an analysis by the Institute for European Politics and Reforms. The analysis shows that a part of the goods exempted from taxes remain non-eligible on the EU market, such as the products of animal origin. Moldova pledged to adjust its sanitary and phytosanitary legislation to the EU’s, but made modest progress in this regard at a time when only one quarter of the measures defined in the national plan of action for implementing the Moldova-EU Association Agreement for 2014-2016 were carried out in 2015, with the rest being under implementation.
● WEDNESDAY, February 17
Main State Tax Service still can carry out inspections in particular cases
The Main State Tax Service says that until the law on the moratorium on state inspections takes effect, the initiation of inspections at the scene by the methods provided in the Tax Code, including by setting up fiscal posts, is suspended, but inspections can be still carried out in particular cases. Thus, the Ministry of Finance’s order is not applied when the inspection is performed at the office of the fiscal body or at the request of private individuals and legal entities. Tax inspections can also be carried out based on the decision of bodies empowered to withdraw or suspend licenses, approved by court decision, and within trials, in accordance with the ordinances of law enforcement agencies, as well as within cooperation with the authorities of other states based on international treaties to which Moldova is a party.
● THURSDAY, February 18
Grant agreement with EBRD submitted for ratification
A bill to ratify the grant agreement between the Republic of Moldova and the European Bank for Reconstruction and Development within the project to restructure Moldova’s Railways was endorsed by the Cabinet on February 17. The grant will be provided from the Neighborhood Investment Fund (NIF). The €5 million offered by the NIF is intended for the rehabilitation and purchase of new engines for improving the energy efficiency of Moldova’s Railways, monitoring of fuel consumption by the existing engines and promotion of other reforms at the company.
PARE 1+1 program supported mainly agricultural projects
More than 60% of the investment projects supported within the program to attract remittances to the economy PARE 1+1 are agricultural ones. The projects from this sector are almost all eligible. The experts of the Organization for the Development of Small and Medium-Sized Enterprises help the applicants to start a business that will be most profitable, the Organization’s director Iulia Iabanji said in the program “Dialog” on Agro TV Moldova channel. She noted that PARE 1+1 was extended until 2018, while the money is provided by the EU as a grant after the investment projects are implemented and monitored.“In 2015 the applicants submitted projects to the value of 42 million lei. We stopped temporarily the reception of applications and started to amend the budget. We managed to increase the budget from 30 million lei to 42 million lei to support 98 investment projects,” stated Iulia Iabanji.
Moldova received over €3bn in external financial assistance in five years
The Republic of Moldova during the last five years received more than €3bn in external financial assistance, half of which as grants. The money was intended for doing reforms and for improving infrastructure. Less was donated for economic development, research and science, experts Valentin Lozovanu and Sergiu Gaibu said in the program “60 minutes of economic realism” produced within a project of the Institute for Development and Social Initiatives “Viitorul” and Radio Free Europe. The experts stated that Moldova started to get external financial assistance from the World Bank in1994, but at rather high interest rates that made the country heavily indebted, the money being repaid during ten years, until 2004. In 2004, the World Bank reviewed its strategy and included Moldova in another financing system, with smaller rates.
Tenth criminal case over frauds at Banca de Economii
Prosecutors set to court the tenth criminal case over the frauds committed at Banca de Economii. In this case, five former members of the Lending Committee of Banca de Economii (BEM) are accused of violating lending rules, causing thus significant damage to the bank. According to the prosecutors, in 2010-2011 the former president, in cooperation with five members of the Lending Committee of the BEM, illegally released loans to the value of 244 million lei to three firms. Though the legislation provides that the Lending Committee must intervene and stop the provision of loans by immediately recovering the released money, the culprits did nothing and the banks sustained thus considerable damage.
● FRIDAY, February 19
Expert-Grup: Economies from both sides of Nistru saw declines
The economic rapprochement between the two sides of the Nistru River became more evident in the recent past given the worsening of the economic situation in both of the areas. However, the situation worsened faster in the Transnistrian region than on the right side. Such conclusions are contained in the most recent issue of the magazine “Transnistrian Economic Reality”, which is produced by the independent think tank “Expert-Grup”, IPN reports.According to the experts, the investment activity in 2015 decreased by 20.3% on 2014. The external trade declined on both of the sides, though the exports diminished more on the right bank (15.9%, as opposed to 14.7%), while imports fell more on the left side - (30.4%, as against 25%).
Grants to intensify cooperation between sides of Nistru
The European Union provides non-reimbursable financial support for implementing projects to create or strengthen platforms for cooperation between business associations and NGOs from both sides of the Nistru River. The grants are intended for nonprofit organizations. According to a press release of UNDP Moldova, associations and organizations from both sides of the Nistru can apply for financing of up to €55,000. The projects must contain sustainable trans-river initiatives of cooperation in the business sector and in building confidence between business associations and NGOs from both sides of the Nistru. The project implementation period is April 2016 - August 2017.
Tiraspol reduces price of gas for meat and dairy producers
The companies that produce meat and dairy in the Transnistria region will pay less for the natural gas. The Transnistrian administration took such a decision in a move to help these producers cope with the competition on the market given that production costs will this way decrease. According to the local press, the so-called minister of agriculture of Transnistria Svetlana Timotina said that now the dairy production satisfies 34% of the internal needs, while meat production – 18%.
About 2,000 new jobs to be created at Edinet Industrial Park
Approximately 2,000 new jobs will be created at the Edinet Industrial Park. Unlike other such parks that started work based on existing industrial platforms, this is greenfield-type industrial park. Deputy Prime Minister and Minister of Economy Octavian Calmac paid a working visit to this park. A project to the value of 12.4 million lei is now implemented at the park with money from the National Regional Development Fund. It is entitled “Connecting the Edinet Industrial Park to access infrastructure and public utilities”. According to the deputy mayor of Edinet town Rodelia Vasilcov, the works to build the infrastructure started in 2014 and go on. There was erected the administrative block and registered three resident companies – “T.B. Fruit” from Ukraine and two local companies. The Ukrainian company built an apple juice concentrate factory with own investments to the value of €25 million and signed contracts with a number of apple producers from the district and the region.
Courts of law hamper recovery of loans released by banks under liquidation, lawyer
The courts of law impede the recovery of the loans provided by Banca de Economii and Banca Sociala, which undergo liquidation, while the loans of 14 billion lei received by the two and by Unibank from the National Bank of Moldova will become public debt, stated the head of the Center for Initiatives and Public Authorities Monitoring Ion Dron. In a news conference on February 19, Ion Dron said that the banks that are being liquidated possess property, assets and loans that weren’t repaid. To reduce the amount of debts, the state institutions should aim to recover the money, including by selling the assets of these banks. Ion Dron said a firm from Chisinau took out a loan from Banca Sociala and pledged several possessions as security. On the settling day, the firm was to pay 40 million lei, which represented the loan and the interest rate. The company went to court and asked that the lending contract should be declared null and void. The court accepted the request and nullified the contract, arguing that applying for a contract is not equal to having a lending contract.
● SATURDAY, February 20
Romania remains Moldova’s main trading partner
Romania confirmed its position of main trading partner of Moldova. Bilateral trade in 2015 was US$1.352 billion. Romania’s exports to Moldova amounted to US$820 million, while imports from Moldova came to US$532 million. The balance of the bilateral trade was US$288 million in favor of Romania. According to the Embassy of Romania in Chisinau, the mineral products accounted for over 35% of the goods exported by Romania to Moldova. These are followed by machines, apparatus and equipment with over 21% of the total. Among the main products purchased from Moldova are the machines and equipment (over 43%) and base metals and metallic objects (over 20%).
New privatization round
The Public Property Agency announced a new round of privatization of state public property for February 19 – April 8. Among these are: the brandy and cognac producer SA “Barza Alba”, the tobacco company “Tutun –CTC”, the Universal Central Store UNIC and the carpets factory “Floare - Carpet”. According to a press release of the Agency, over 1 billion lei is to be earned from the sale of the shareholdings in the 24 joint stock companies exhibited for sale. The informative communique about the property put up for sale was published in the February 19 issue of the Official Gazette and on the website of the Public Property Agency. On outcry auction will be held to sell 12 facilities, including two undividable patrimonial complexes, four completes of real estate and six unfinished constructions, for an estimated sum of 35 million lei.
