● MONDAY, November 19
Situation in small business sector remains precarious, statements
Even if progress is announced in the business sector, the situation is still precarious, namely in the small business sector. According to representatives of the Small Business Association, the harassment of small traders at markets in Căușeni is a pertinent, but also regrettable example. The sellers just want to work legally and to face no obstacles on the part of the authorities. In a news conference, president of the Small Business Association Eugen Roșcovanu said in December it will be 15 years of the first protests mounted by patent holders against the attempt to eliminate this democratic method of running a small business. The time limits for excluding patents were extended in time and the last extension was considered recently, with the relevant bill being given a first reading. Any terms and restrictions as to patent-based activity should be excluded and the small traders should be allowed to work.
National microfinance companies are legitimized stealing machines, PRO Movement
Experts of the Movement “Professionalism and Responsibility for the People” (PRO) said the microfinance firms in Moldova are ill-intentioned and the business entities and ordinary people suffer as a result. These apply uncivilized practices that form part of legitimized stealing machinery. Moreover, the activity of the microfinance sector is not monitored by the state institutions responsible for the regulation of the area and these do not take measures to improve the situation. In a news conference, the Movement’s leader Gheorghe Costandachi said an analysis carried out by the organization showed the people are cheated. Some have to go abroad to work so as to be able to repay the loans that ultimately turned out to be at least five times higher than the initially collected amount. During the past eight years, the number of microfinance companies and the volume of released loans rose over four times and the incomes of these firms grew eight times.
● TUESDAY, November 20
National Bank governor: Banking sector no longer poses threats to system, depositors or budget
The banking sector was recapitalized and now poses no threats to the system, depositors or budget, the governor of the National Bank of Moldova stated in a press briefing on November 20 where he presented the Bank’s strategic objectives for the next three years. “The consolidation of the banking sector is the heart of our actions and, according to the new supervision rules, we will improve banking surveillance, but our goal is to make sure the banks are healthy and to also resume the financial intermediation activity,” stated Sergiu Cioclea. According to him, energetic actions were taken to ensure bank shareholder transparency. As a result, two systemic banks were sold and the third was placed under temporary administration and discussions with potential investors are now being held. “Two years ago, less than 20% of the assets of the banking system in minority were managed by highly qualified international groups. Currently this figure stands at over 70%,” stated Sergiu Cioclea.
● WEDNESDAY, November 21
IMF: We commend NBM governor Cioclea on significant progress achieved under his leadership
The International Monetary Fund commends governor Sergiu Cioclea on the significant progress achieved under his leadership of the National Bank of Moldova (NBM), says a press line issued by the IMF Resident Representative in the Republic of Moldova Volodymyr Tulin. “We commend Mr. Cioclea on the significant progress achieved under his leadership of the NBM and thank him for excellent cooperation over the past three years. We look forward to continuing our close and constructive relationship with the NBM and engaging with new central bank governor as part of the dialogue with the Moldovan authorities on the economic program, as well as the Fund’s interaction with the authorities of member countries,” reads the press line.
Veaceslav Negruță: I presume capital amnesty caused most serious problem to NBM governor
The fact that Sergiu Cioclea announced his resignation as governor of the National Bank of Moldova (NBM) in an ad-hoc briefing showed that he was determined to leave and he offered no chance of being persuaded to keep office. There are probably things that governor Cioclea considered a powerful blow to him as an economist in the held post, Transparency International Moldova expert Veaceslav Negruță as saying in the talk show “Expertise hour” on Jurnal TV channel. According to him, the so-called package of tax laws that contained the law on capital amnesty caused the most serious problem to the governor. They often intervened in the banking legislation and this way opened a number or risk zones that created professional discomfort to the governor. “The IMF and the WB, and other development partners, pronounced on the law on capital amnesty, which is noxious. They didn’t manage to adopt it first in 2016, but succeeded now, in 2018. The NBM governor is governor at the IMF on behalf of the Republic of Moldova and any governor is between two camps in such a position. The given discomfort could have been an important element that determined the decision announced today,” stated Veaceslav Negruță.
Resignation of Sergiu Cioclea is negative news for banking sector, opinion
The resignation of Sergiu Cioclea as National Bank governor is negative news for the banking sector. The governors are not changed like gloves. It is a long-term tenure, economic expert Viorel Gârbu as saying in the talk show “Politics of Natalia Morari” on TV8 channel. According to him, this message is no way positive as it couldn’t have appeared without a specific cause or a negative context that does not allow for delays. “Money likes calmness. Stability and continuity are needed,” said Viorel Gârbu. He noted the replacement of the governor in the pre-electoral period when the Republic of Moldova is in a rather tense period and many donors have a rather critical view on the developments in our country is not welcome. Sergiu Cioclea is the only high-ranking official who enjoyed international community’s trust and strong support that was shown on numerus occasions.
Value of procurement agreements with continuous execution to be annually adjusted
Once during the budgetary year, the value of the agreements on government procurement with continuous execution signed for a period longer than a year will be adjusted. The adjustment will be made at the start of the budgetary year, after the statistics about the inflation index or deflation index for the previous year are published. The funds allocated and used during the first budgetary year when the procurement contract is implemented cannot be adjusted.
Cabinet negotiates extension of contract on energy infrastructure with EIB
The financing agreement between the Republic of Moldova and the European Investment Bank (EIB) on the implementation of the project SE Moldelectrica Transmission Network Rehabilitation Project that was signed in 2012 will be extended for another two years, until December 26, 2020. The Cabinet on November 21 approved the initiation of negotiations and the signing of an amendment to this effect. The document will enable to fully use the €17 million lent by the EIB for rehabilitating the national electric power transmission infrastructure. A sum of €7.4 million has been used so far to change the power transformers and an electrical reactor. These works will be completed in 2019. Under the agreement, four power stations will be reconstructed at a cost of €9.6 million. The signing of the amendment will enable to perform these works during the next two years.
Private operates could also provide railway transport services
The state-owned company “Moldova’s Railways” will no longer hold the monopoly on the railway transport services market. The Railway Transport Code approved by the Cabinet on November 21 stipulates that the private operators will also be able to provide railway freight and passenger transportation services. The railway infrastructure will continue to belong to the state. Under the Code, the private railway carriers will have access to the railway infrastructure based on a payment that will be set in accordance with a calculation methodology approved by the Cabinet.
● THURSDAY, November 22
Telephone connection between both sides of the Nistru close to be restored
The regional telecoms carrier Interdnestrcom could be registered in Moldova’s jurisdiction and conditions for restoring the telephone connection between both sides of the Nistru will be thus created. The Cabinet approved the legislative initiative concerning the amendment of Article 97 of the Law on Electronic Communications. “The law needs to be adjusted so as to implement the protocol decision regarding the measures for organizing interaction in the telecommunications sector that was signed on November 25, 2017. By this decision, conditions are created for advancing the negotiations on the registration of the regional telecoms carrier Interdnestrcom in the jurisdiction of the Republic of Moldova and for ensuring the telephonic interconnection between both sides. The Government could offer compensation to the operators Orange and Moldcell for the retrocession, in territorial limits, of the frequencies of the 800 MHz band, while the regulatory authority will register the operator from Tiraspol in accordance with Moldova’s legislation,” stated Minister of Economy and Infrastructure Kiril Gaburici.
Import of red mud and blast-furnace slag allowed
The import of red mud and blast-furnace slag into Moldova will be allowed. Parliament on November 22 adopted relevant amendments to a number of legal acts after giving them a second reading. Now the legislation bans the importation of raw or processed waste and residues of any type. The head of the commission on environment and regional development Radu Mudreac when presenting the bill said the bringing into Moldova of the red mud, also known as bauxite residue, and blast-furnace slag – waste intended to be used as secondary raw material in cement production – will be permitted.
● FRIDAY, November 23
First Moldovan-Romanian tourist route to become available by this yearend
The first common Moldovan-Romanian route “Route of Voivode Stephan the Great and Holy in Romania and in the Republic of Moldova” will be created by the end of 2018. This will go through 19 localities and five winegrowing areas and will offer the tourists a lesson of history and spirituality. The subject was discussed in a meeting of Minister of Economy and Infrastructure Kiril Gaburici and Romanian Minister of Tourism Bogdan Gheorghe Trif in Bucharest. The route will offer a lesson of history and spirituality through such tourist attractions as monasteries patronized and fortresses built by the Great Voivode, the underground caves that are over 500 years and are still kept and the museums that host exhibitions of artifacts dating from the time of Ruler Stephan the Great and Holy.
● SATURDAY, November 24
Fines for land owners who do not destroy ambrosia
The owners of farmland will be obliged to take measures to fight and prevent the spread of weeds. The new regulations are stipulated in a bill to amend the Land Code and the Contravention Code that was adopted by Parliament on November 23 after giving it a final reading. If the obligation to combat and prevent the spread of weeds is not fulfilled, private individuals will be fined up to 1,500 lei, while legal entities up to 6,000 lei. The penalties will be imposed by the Environment Protection Inspectorate.
2019 state social insurance budget given a first reading
The legislative body on November 23 debated the 2019 draft state social insurance budget law and draft mandatory health insurance funds law in the first reading. Nelea Rusu, secretary of state at the Ministry of Health, Labor and Social Protection, said the revenues of the state social insurance budget next year will be 21.427,4 billion lei, an increase of 10.8% compared with 2018. The state social insurance contributions will represent 59.6% of these revenues and will total 12.770,0 billion lei, by 70.5 million lei less than this year.
Regulations on economic concentrations in mass media sector
The national legislation will be supplemented with norms concerning the assessment of economic concentrations in the mass media sector. Under the new regulations passed by Parliament, the special legal acts in the mass media sector can stipulate levels concerning the notification of economic concentrations others than those stipulated now in the legislation. Currently, the law on competition provides that the economic concentration operations are subject to assessment and are to be communicated to the Competition Council before they are performed, when the cumulative turnover of the involved enterprises the year prior to the operation exceeds 25 million lei. These will be assessed when there are at least two enterprises involved in the operation that had a total turnover higher than 10 million lei each the year prior to the operation on Moldova’s territory.
