● MONDAY, July 16
National Committee for Financial Stability to be reorganized
The National Committee for Financial Stability is to be reorganized. The Ministry of Finance presented for public consultations a bill that provides that the Committee will be an inter-institutional cooperation body responsible for the coordination of implementation of the macroprudential policy and remedying of systemic financial situation crises. The Committee will coordinate the management of systemic financial crises and will submit policy proposals and measures concerning deposit protection, capitalization and re-capitalization of banks to the Government and other competent bodies. It will approve actions and measures designed to restore credibility in the safety of the financial system and will periodically issue official statements so as to avoid cases of misinformation. It will also adopt a policy and a plan of communication in financial crises and a national plan of action in emergencies.
New director of ICT regulator presented to staff
The new director of the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) Octavian Rau assures that together with the team they will be making effort to bring valued added to the Agency. He said he will work in the public interest so as to improve the quality of the services provided for the citizens. The statement was made by Octavian Rau after Minister of Economy and Infrastructure Kiril Gaburici presented the new director to the Agency’s staff. The former ANRCETI director Grigore Varanita was dismissed from post last October based on his resignation.
● TUESDAY, July 17
Central bank extends period for selling new share issue of Moldindconbank
The Executive Board of the National Bank of Moldova decided to extend the period for selling the new share issue of the commercial bank Moldindconbank, as an undividable shareholding of 63.89%, by three months. The Executive Board also decided to extend the term in office of the temporary administrators of Moldindconbank for a period of three months, as of July 20 this year. The temporary administrators work as part of the early intervention measure instituted at Moldindconbank on October 20, 2016, after the National Bank ascertained that a group of persons who held a substantial holding in the bank’s share capital, in the amount of 63.89%, acted concertedly, without its consent. According to the central bank, BC Moldindconbank S.A. works as usual and provides all the services, including those rated to deposits, loans and settlements.
Moldova to cooperate with Italy in delivering wine products of a high quality
The National Office of Vine and Wine of Moldova signed a three-year Memorandum of Understanding with the Central Inspectorate for Fraud Repression and Quality Protection of the Ministry of Agriculture, Food and Forestry Policies of Italy. The sides will cooperate in ensuring quality in the wine industry, the protection of consumer rights and the respect for intellectual property rights. The memorandum envisions the creation of a communication platform to prevent and counteract violations in the production and sale of wine products. Technical assistance will be provided in applying the European legislation concerning winemaking and winegrowing, especially as regards the wines with Protected Geographical Indications and Protected Designations of Origin.
● WEDNESDAY, July 18
Moldovan enterprises could enter large markets together with Romanian ones
The Moldovan enterprises, alongside the Romanian ones, could enter such large markets as China and Japan. This will enable business entities from Moldova and Romania to take part in economic missions, international fairs and business meetings. The proposal to initiate a project to internationalize Moldovan companies was discussed in a meeting of Prime Minister Pavel Filip and a delegation of the National Union of Romanian Employers in Chisinau. The sides expressed their interest in developing the tourist potential of the two countries, supporting the idea of working out common tourist packages. As many as 1,678 companies with Romanian capital operate in Moldova at present. The neighboring state ranks third by the volume of investments made in the Moldovan economy.
Tiraspol announces 53% rise in foreign trade in first half of 2018
The Transnistrian region’s exports in the first half of this year rose by 70% to US$ 351 million compared with the corresponding period last year. Imports rose by 44% to US$ 617 million. This way the balance of trade remains negative, at - US$267 million, as opposed to - US$220 million last year. Even so, the 53% rise in foreign trade shows that the economic situation is stable. According to the Transnistrian customs, the Russian Federation, the right side of the Nistru River, Ukraine, Germany, and Italy remain the region’s main commercial partners. Trade also grew with Poland, Romania, and China. Russia accounts for 40% of the turnover, but imports prevail in the commercial relations with this state. Exports to Russia represented 7% of the external sales.
Customs Service collects more revenues into state budget than projected
The Customs Service in the first half of this year brought 9.6 billion lei into the state budget, an increase of 270 million lei compared with the corresponding period last year. The data were presented in a meeting held to sum up the results achieved by the Service’s Revenues and Customs Control Department. According to the presented data, exports in six months rose by 16% to 28 billion lei. The value of goods exported based on declarations of origin presented by the holders of the approved exporter status increased almost three times to 2.7 billion lei.
● THURSDAY, July 19
Program “First House” is a perfect instrument for keeping labor force at home, opinion
The program “First House” announced by the ruling party, besides the social component, also as an economic component. This mechanism is a perfect instrument for keeping the qualified labor force at home, Alexandru Baltag, president of the Moldova Business People Association, was quoted by IPN as saying in the talk show “Fabrika” on Publika TV channel. Moreover, according to him, the program could serve as a stimulus for some of the citizens who left the country to return home. Alexandru Baltag said this program is a very good instrument for taking a part of the salary earners out of the underground economy. Minister of Finance Octavian Armasu said the families with a child will get a compensation of 10% of the value of the home loan repayable in 18 years.
Citizenship by investment could be a corridor for bringing stolen money back, opinion
The provision of citizenship by investment could be a corridor by which to bring back the funds stolen from the Moldovan banking system, given that the investigations into the banking fraud aren’t over and the direct and indirect beneficiaries haven’t been held accountable, economic expert Veaceslav Negruta stated in the program “Politics of Natalia Morari” on TV8 channel, IPN reports. Veaceslav Negruta said the difference between the Moldovan model, which is similar to the Maltese and Cypriote models, and the models applied by other countries to provide citizenship by investment is that in the case of the Republic of Moldova it is not about investment in business, but about lending to the state. According to him, the citizenship will be provided not to people who flee wars or hard life, but to persons who have financial resources that they try to legalize.
Rodica Verbeniuc to manage Investment Agency
The Cabinet approved a decision to name Rodica Verbeniuc as the director of the Investment Agency. Rodica Verbenic has a work experience of about 15 years. She served with foreign companies, distinguishing herself as a communication specialist. The Investment Agency was created by reorganizing a number of agencies managed by the Government to attract investment to the national economy, to develop the tourism sector and to promote Moldova’s image abroad.
EIB funds for rehabilitating roads to be disbursed by June 25, 2022
The Cabinet approved the initiation of negotiations and signing of Amendment No. 1 to the financing contract between the Republic of Moldova and the European Investment Bank (EIB) for implementing the project to rehabilitate roads in Moldova. The amendment extends the time limit by which the money provided under the financing contract will be disbursed until June 25, 2022 following the prolongation of the national road rehabilitation works and the non-utilization of about €100 million of the financing provided by the EIB for implementing the project. The financing contract between the Republic of Moldova and the European Investment Bank for implementing the project to rehabilitate national roads was signed in Luxembourg on June 25, 2013.
Deposit Guarantee Fund to be raised
As of January 1,2020 the bank Deposit Guarantee Fund will be increased to 50,000 lei, as opposed to 20,000 lei at present, IPN reports, with reference to a bill to amend a number of legal acts approved by the Cabinet. The law was drafted in a move to improve the legal framework related to deposit guaranteeing and consolidation of the stability of the financial sector so that the national deposit guarantee system meets the fundamental international deposit guarantee principles. Under the amendments, the Deposit Guarantee Fund as form January 1,2020 will also guarantee the bank deposits in national and foreign currencies made by legal entities of private law. Currently, there are guaranteed only the deposits of private individuals. As a result, the deposits of 3.8 million depositors will be insured and the insured sum will total 13.6 billion lei. This way, 95.9% of all the deposits and 23.1% of their total volume will be guaranteed.
First comprehensive assessment of Moldova’s commercial corridors carried out with USAID support
The largest part of international trade is performed through corridors - particular routes by which the goods are transported by road, sea, or air. Corridor-based trade enables to apply economies of scale, to obtain chain effects and to appropriately organize the resources for improving the transport sector. The Moldova Structural Reform Program, with financial support from the United States Agency for International Development (USAID), carried out a study to assess the trade corridors of the Republic of Moldova. The study reveals a wide range of problems that influence the time and cost of transporting goods by Moldovan traders and carriers. The delays at border crossing points negatively affect the performance of trade corridors and, finally, the commercial flows.
French company EDENRED expands business in Moldova
During two months of work in Moldova, the French company EDENRED put into circulation over 75,000 meal vouchers with a face value of almost 3 million lei based on contracts signed with over 60 Moldovan enterprises that offer this extra-salary benefit to employees. EDENRED Romania and Moldova director general Dana Sintejudean told a news conference in Chisinau that the meal vouchers are a method of paying for meal, like with the card or in cash. Adelina Fuior, of another pizza chain, said the meal vouchers represent added value for consumers. “We were among the first to use meal vouchers. We already used 1,100 meal vouchers and the turnover rose by 41,000 lei. Our breakfast costs 35 lei and this price perfectly matches the lowest value of a meal voucher. This is a positive experience,” she stated. According to Diana Trohin, of a chain of gas stations and stores, their company offers the employees meal vouchers and enables the clients to make purchases with meal vouchers as they decided to test the new tendencies on the market.
● FRIDAY, July 20
Молдова и Китай намерены подписать Соглашение о свободной торговле
22-27 июля в Пекине пройдет второй раунд переговоров по Соглашению о свободной торговле между Республикой Молдова и Китайской Народной Республикой. Правительство утвердило в пятницу персональный состав молдавской делегации для участия в переговорах. Таким образом, руководителем делегации назначена государственный секретарь в области инфраструктуры качества и международного сотрудничества Министерства экономики и инфраструктуры Юлиана Дрэгэлин. В делегацию входят так же государственный секретарь в сфере политик/продукции растениеводства Министерства сельского хозяйства, регионального развития и окружающей среды Василе Лука, заместитель директора Таможенной службы Юрие Чебан, заместитель директора НАБПП Эла Малай и другие ответственные лица и консультанты указанных ведомств, а также из Министерства финансов, Государственного агентства по интеллектуальной собственности, Совета по конкуренции. Согласно утвержденному документу, переговоры и подписание Соглашения о свободной торговле с Китаем будет способствовать активизации торгово-экономических отношений, создадут условия для запуска проектов на уровне экономических агентов, а также для привлечения инвестиций.
● SATURDAY, July 21
NAER to set fuel price ceilings quarterly
The National Agency for Energy Regulation (NAER) will set the fuel price ceilings quarterly, not once every two weeks as now. Parliament adopted a bill to amend and supplement the Law on the Oil Products Market in the first and second readings on July 20. Under the law, the prices will be set depending on the average Platts quotes for the previous period. The NAER will have the right to adjust the price ceilings during the quarter only if the difference between the average Platts quotes and the average currency exchange rate set by the National Bank of Moldova exceeds 10%. The retail prices of the main imported oil products will be published on the Agency’s website. The NAER is to adjust the methodology for forming fuel prices to the given law within three months. Now the Agency sets the fuel price ceilings biweekly.