● MONDAY, June 29
“Expert-Grup”: Economic growth will visibly slow down
The economic growth in Moldova will visibly slow down, with the economy being forecast to stagnate until the end of this year given the very difficult current economic, social and politic situation. The Independent Analytical Center “Expert-Grup” has launched a new edition of “Economic Realty” where it analyzes the economic development in the country. The publication says there is unprecedented dissonance between the population’s perception and the statistical data about the Moldovan economy’s development. According to the preliminary data of the National Bureau of Statistics, the country’s GDP in the first quarter of 2015 increased surprisingly by 4.8%. At the same time, the Public Opinion Barometer, presented in April 2015, shows only 7.9% of the respondents consider the economic situation is better or slightly better compared with a year ago. This is one of the lowest levels since the given survey is being carried out. Such dissonance is a due to the quality and frail durability of the economic growth revealed by the statistical data.
● TUESDAY, June 30
Electricity supply could be reduced by 40%
The companies Red Union Fenosa and Gas Natural Fenosa Furnizare Energie, which form part of the Gaz Natural Fenosa Group and serve about 70% of the country’s territory, said they were warned by the supplier that the supply of electricity could be reduced by up to 40% owing to the delay in paying for the supplied power starting with July 1. In a press release, Gas Natural Fenosa says that this decision is unilateral and that it has to postpone making the payments because of the non-adjustment of tariffs since 2012, which, for their part, do not cover the full costs associated with the distribution of electric power. The electricity is purchased in US dollars at an exchange rate of 11.8 lei/dollar, which was included in the current tariff, at a time when the real exchange rate is now 18.68 lei/dollar. This situation leads to the accumulation of negative deviations that do not allow fully paying for the consumed heat.
Number of SMEs continues to go up
The number of small and medium-sized enterprises (SMEs) continues to increase. As many as 52,300 SMEs worked in 2014, up 2.8% or 1,400 on 2013. Compared with 2010, the number of SMEs rose by 6,700, from 46,600. The SMEs represent about 97.4% of the total number of companies registered in Moldova. The people employed by SMEs came to 291,700, making up 56.2% of the total number of salary earners of companies. The revenues from sales of SMEs added up to 83.650,3 million lei, constituting 31.8% of the total revenues in the economy. The analysis of the development of SMEs revealed an increase in the average size of SMEs. The average sales revenues per company in 2014 came to 1.599 million lei, an increase of 5.2% or 79,000 on 2013. The average revenues per employee were 286,800 lei, an increase of 27,400 lei or 10.5% on 2013. The average number of employees per enterprise in 2014 was six persons.
EU offers over €1m for strengthening National Bank’s capacities
The European Union provides about €1.2 million in assistance within a project aimed at strengthening the capacities of the National Bank of Moldova (NBM). The Twinning project launched on June 30 aims to provide technical assistance for strengthening the prudential supervision framework within the harmonization with the EU norms and standards and to increase the institutional and administrative capacity of the NBM in view of ensuring the proper functioning of the banking system. According to a press release of the EU Delegation to Moldova, the objective of the project is to improve the banks’ prudential regulations oriented towards ensuring a sound and competitive banking sector, pursuant to the commitments undertaken by the Republic of Moldova through the Association Agreement with the European Union, the Moldovan legislation is to be harmonized with the EU provisions and international standards related to Basel III within a period of 3 years from its signing.
● WEDNESDAY, July 1
ANRE will examine requests to increase electric power tariffs
The National Agency for Energy Regulation (ANRE) announced that it will convene a public meeting to examine the requests to adjust the electric power distribution and supply tariffs, made earlier by a number of operators. The ANRE will do it after the process of verifying the data and calculations presented by the operators is completed. The public meeting of the Agency’s Administration Board will involve representatives of civil society, consumer protection associations and of mass media, experts in the field and other interested persons.
Revenues in electronic communications sector up 7.5%
The total revenues in the electronic communications sector in the first three months of this year rose by 7.5% compared with the corresponding period last year to over 1.6 billion lei, shows a report by the National Regulatory Agency for Electronic Communications and Information Technology. According to the report, the rise is due to the higher sales on practically all the market segments, except for the audiovisual programs broadcasting and retransmission sector, where sales fell by 3.3% on the first quarter of 2014 to 80.7 million lei.
The highest rise in revenues, of over 14%, was recorded on the dedicated mobile broadband Internet access services market, where sales totaled over 82 million lei. The revenues on the fixed Internet access services market grew by 13.1% or over 29 million lei, to about 256 million lei.
Differing opinions about need to increase electric power charges
Experts expressed opposing opinions about the necessity of raising the electric power charges in the talk show “Politics” on TV 7 channel. Economic expert Sergiu Tofilat considers the electricity suppliers’ request to increase the tariffs is not justified. “First of all, I think a serious audit at Gas Natural Fenosa is needed, which would take into account the oscillations in the exchange rates of the currency. We are told that the tariffs should be raised, but we do not know the reality. The rise in tariffs should be explained so that the people know why the charges are increased. Some of the suppliers may resort to frauds and the consumers must not be obliged to pay from their own pockets,” he stated. Tudor Soitu, ex-vice president of the Audit Office, confirmed that frauds are committed at Gas Natural Fenosa. “The audit report on Gas Natural Fenosa for 2010-2012 reveals irregularities. But this document wasn’t examined. I hope it will be taken into account when the rise in the electricity tariffs is discussed. I think a 60% rise is not justified,” he said.
Economy Ministry: Supply of electricity will not be stopped
The people in Moldova will continue to be fully supplied with electric power, the Ministry of Economy said, noting it monitors the situation in the energy sector and keeps in touch with the companies that supply electric power so as to deal with all the problems that appeared in the sector. The Ministry described the statements of economic entities supplying electricity to end-users as provoking and pressure exerted on institutions involved in the calculation and approval of new electric power tariffs. The institution considers that given the latest socioeconomic and political developments in the region and the country, the demands to adjust the electricity and natural gas tariffs are partially justified. But the arguments for such adjustments are unilateral, based on the promotion of corporate interests, without taking into account all the macro and micro economic factors that influence the political and economic processes in the region and the country.
Acting Premier: only major costs will be financed
The resignation of the Prime Minister and the whole Cabinet and the postponement of the negotiations with the International Monterey Fund affected the macroeconomic indicators, acting Prime Minister Natalia Gherman said in the July 1 meeting of the outgoing Cabinet. The acting Premier noted that several days ago she asked the Ministry of Economy and the Ministry of Finance to provide information about the economic situation in the country. The information shows that the industrial and agricultural production grows, while the investments in long-term tangible assets increase. However, the rate of inflation goes up, while the exports and imports decrease. “In such a situation, it is very important not to allow new costs, while the costs planned for purchasing goods that are not absolutely necessary should be suspended,” she stated.
New methodology of forming oil prices almost ready
The bill that contains a new oil price formation methodology and that enables agricultural producers to import diesel fuel for own consumption is almost ready. It was discussed in the meeting of the special commission for working out a package of legislative amendments for supporting the famers on July 1. According to the Parliament’s press service, the new provisions, which are in line with the European practice, stipulate that the retail prices of the main oil products will be calculated based on the average Platts FOB MED quotations, in accordance with the European Marketscan, and recalculated in national currency.
● THURSDAY, July 2
State Tax Service celebrates 25 years of foundation
The State Tax Service on July 2 staged the Open Doors Day for all those who want to start a career or advance their career at the State Main Tax Inspectorate and for the people who wanted to familiarize themselves with the working environment at the institution and to see how an ordinary workday there takes place. The local tax inspectorates also held such an event. On July 1, on the occasion of the 25th anniversary of the foundation, the employees of the State Tax Service and its veterans, government officials, MPs and representatives of taxpayers came together for a festive meeting where they remembered things from the past and spoke about the current objectives and development prospects of the institution. State Main Tax Inspectorate head Ion Prisacaru thanked the veterans for the contribution they made to improving the tax legislation and to introducing innovative methods in the fiscal administration. He noted that efforts are now made to improve the relationship with the taxpayers, launch new services, including electronic ones, for them so as to reduce the costs and time spent, and to create conditions for the taxpayers to comply voluntarily and to fully pay the taxes on time.
Parliament ratifies lending agreements to get money for building water supply systems
The legislative body on July 2 ratified the lending agreement between the Government and the European Bank for Reconstruction and Development (EBRD) and the lending agreement with the European Investment Bank (EIB) for borrowing €20 million for building water supply systems in northern Moldova. The money will be used to rehabilitate the Balti – Soroca water pipeline and to build water supply systems in six districts, namely Soroca, Floresti, Drochia, Rascani, Sangerei, and Telenesti. Acting Minister of the Environment Sergiu Palihovici said in Parliament that all the towns and villages in northern Moldova, except for Soroca and Balti towns, use underground water that is rather polluted. Therefore, water supply systems should be built in the northern districts to supply the residents with drinking water of a high quality.
Farmers can sign contracts for subsidization of measures of 2014
The agricultural producers who submitted applications for receiving financial support for the measures that were to be subsidized in 2014 are invited to the Agency for Payments and Intervention in Agriculture to sign contracts for the provision of the requested subsidies. The agricultural producers must come to the head office of the Agency with the stamp of the commercial organization. The institution is based at 162 Stefan cel Mare si Sfant Blvd, floor 15, office 1507.
Over 90,000 numbers ported since launch of portability service
During two years since the launch of the number portability service in Moldova, more than 90,700 numbers have been ported. According to the National Regulatory Agency for Electronic Communications and Information Technology, 91% of these are mobile phone numbers, while 9% are landline numbers. In a communique, the Agency says the number portability service became an efficient instrument for ensuring the freedom of choice of phone users and for stimulating competition between providers, especially the mobile phone carriers.
Chisinau heating system will be rehabilitated with money of EBRD
Parliament on July 2 adopted the lending agreement for the amount of €10 million between the Government of Moldova and the European Bank for Reconstruction and Development (EBRD). The money will go to rehabilitate the heating system in the municipality of Chisinau. The given bill caused the dissatisfaction of the Communist MPs. Oleg Reidman said it is not within the competence of the Government to assume responsibility for the rehabilitation of the heating networks of the capital city. “Chisinau has its own administration that can assume responsibility for this loan. The heating charges are very high and will continue to increase so that this loan could be repaid,” he stated.
ANRE: Electricity charges can rise, but can also decrease
The National Agency for Energy Regulation (ANRE) will examine the request of Gas Natural Fenosa to increase the electric power tariffs, but the rise asked by the company is too high, the Agency’s director Sergiu Ciobanu said in Parliament on July 2. According to Ciobanu, the request to raise the electricity tariff by 60% is not justified. “We consider that such a demand is not reasonable. We are now analyzing the reports and are to determine how much the electricity charges can rise,” said the ANRE director.
● FRIDAY, July 3
Agreement on international transport between Moldova and Portugal ratified
Moldova’s Parliament ratified the agreement on international passenger and freight transportation with Portugal. The accord lays down the conditions and methods of running such transport and allows liberalizing the transport activity with this state. The agreement also describes the cases when transport without authorization is possible – trips with ‘closed doors’ when the same number of passengers reaches the destination, conveyance of freight up to the destination and return without passengers or other loads, transport of medicines or other freights with special destination, mail, funeral and other types of transport.
● SATURDAY, July 4
How public money was to be spent in 2015, “Expert-Grup”
The Independent Analytical Center “Expert-Grup” said that before announcing the budget austerity in June 2015, the Government planned to collect revenues of over 45 billion lei into the national public budget. Of this sum, 30.4 billion lei was designed for the state budget, 13.5 billion lei for the social insurance budget, while 5.16 billion lei for the mandatory health insurance fund. The Center examined how this money was to be spent this year. Some 15.43 billion lei of the state budget incomes of 30.4 billion lei was to be collected from VAT, almost 4 billion lei from excise duties, while about 3 billion lei from the taxes paid by legal entities and private individuals and from grants. Of the expenditure of over 34 billion lei, more than 7 billion lei was to be transferred to the local public authorities, over 3 billion lei for infrastructure, while less than 1 billion lei for subsidization.
State Tax Service provides details about recalculation of income tax of employees
The State Tax Service said that following the approval of legislative amendments, the employers will have to recalculate the income tax of employees earned between January 1 and June 4. The tax bodies will not impose penalties referring to the recalculation of private individuals’ income tax for the given period. According to the Service, the income tax of private individuals will be recalculated and shown in the first report (Form IRV14), which will include the income tax payments after the coming into force of the given amendments. The income tax will be adjusted to the difference that results from the size of the exemption that was to be used for the periods subject to recalculation and the size of the used exemption. The cumulative income formed when the salary for June is paid will be fully taxed.
Transnistria faces large salary and pension arrears
The Transnistrian administration announced that it has salary and pension arrears of almost 400 million rubles (over 400 million lei – e.n.). In a meeting of the special fund distribution commission, officials in charge said the region’s budget in the first half of this year received slightly over 600 million rubles. Of this amount, only about 500 million can be used to pay social welfare and salaries. A sum of 700 million rubles was allocated for making these payments in the corresponding period last year.
Sunflower and wheat yields projected to be lower
The quantity of sunflower and wheat that will be harvested this year is expected to be lower than in 2014. The State Hydrometeorology Service said the lower harvest is due to the insufficient precipitation that fell in May, which in parts represented 10% to 65% of the norm. As a result of the carried out agro-meteorological examinations, the State Hydrometeorology Service anticipated for 2015 an average harvest of 2.8-3.1 tonnne/ha of winter wheat. The average for the last ten years was 2.7-2.8 tonne/ha of wheat, but last year it was 3.5 tonne/ha. The average sunflower yield was projected to be 1.4-1.6 tonne/ha, almost twice lower. Last year, the average production per hectare was 3.6 tonne/ha of sunflower and the Moldovan framers obtained one of the best harvests in the last few years, of over 500,000 tonnes.
