● MONDAY, November 9
High interest rates on deposits in lei stimulate saving in national currency, NBM
The volume of new loans provided in Moldovan lei in the third quarter of this year fell by 19.3% on the corresponding period last year. The average quarterly interest rate on the new loans released was 14.7%, compared with 11.2% in the third quarter of 2014. Commenting on this data, acting governor of the National Bank of Moldova (NBM) Dorin Dragutanu said that though the central bank since last December has increased the base rate by 16 percentage points (to 19.5% at present), the average interest rate on new loans provided in lei rose by only 3.5 percentage points. “The idea that the economic entities do not take out loans owing to the high interest rates is not justified. More exactly, this is not the only reason why they do not apply for loans,” stated Dragutanu.
Minister of Justice: There are no reasons to terminate contract for leasing airport
There are now no reasons to terminate the contract for leasing out the Chisinau International Airport. The working group set up to determine possibilities of terminating the contract produced a report with conclusions and recommendations for the Government. The group’s head, Minister of Justice Vladimir Cebotari said there were identified a series of vulnerable points of the Government in relation to the lessee, which should be eliminated.“There are now no reasons to end the contract, but this does not mean that the lessee fully honors its obligations. Our legislation provides that when a violation is identified, a period for removing it should be given. If we want to avoid lawsuits, we must be correct in our acts,” stated Vladimir Cebotari. He noted that the working group identified a series of deviations from the contract. The three components that were to be constructed within the first modernization stage by August 30 are not yet ready. Two of these are still under construction. The contract stipulates remedying periods when the construction works must be completed and when the lessee must make a minimum of investments. If the lessee does not fulfill its obligations, there will be reasons for terminating the contract.
Important agreements signed at Investment Forum held in Gagauzia
The branch of the Chamber of Trade and Industry of Moldova in the Autonomous Territorial Unit of Gagauzia will stage business forums to promote the export of agricultural products to the Republic of Tatarstan that forms part of the Russian Federation. An agreement to this effect was signed at the first Investment Forum that was held in Gagauzia. There were also signed cooperation agreements between the administration of Gagauzia and the Russian regions of Krasnodar and Penza and a series of cooperation agreements between the economic operators that attended the event. The forum included six panel discussions that centered on agriculture and processing industry, investments in infrastructure and industry, innovations and technology, energy efficiency, tourism and ICT. Within them, there were presented investment projects to build photovoltaic pars, exhibition and business centers, hotels, factories for assembling Belarusian tractors or to develop large-scale agricultural businesses.
● TUESDAY, November 10
Expert: Impact of higher electricity tariffs will amplify
Energy expert of the Institute for Development and Social Initiative “Viitorul” Ion Muntean said the impact of the higher electricity tariffs already starts to be visible through the dissatisfaction expressed by the people and will amplify when the new tariffs generate new rises in the prices of services and energy-intensive products. The expert stated his opinions in an analysis presented by “Viitorul”. Ion Muntean considers attention should be paid to the way the rise in tariffs is regarded and interpreted by the population. “This shows that the population is not sufficiently and correctly informed about the mechanisms of forming tariffs and the vulnerable factors for the country, which influence the price of electric power. This is due to the lack of political will for fulfilling the commitments to diversify the sources of energy supply and to strengthen the country’s energy security,” he stated.
● WEDNESDAY, November 11
Paradoxically, intermediary provides particular guarantees and stability in power supply, expert
The presence of the intermediary company in the process of supplying electric power to Moldova guarantees particular stability, but the lack of alternatives is the country’s biggest energy-related problem. At the same time, Moldova purchases electricity at a relatively lower price than the costs it would incur if it produced itself power by burning gas. These are some of the conclusions formulated by invitees to the program “Moldova live” on Moldova 1 channel. Director of the Market Economy Institute Roman Chirca said the Republic of Moldova imports electricity at a lower price than the costs of generating electricity by burning gas in the country as the Transnistrian region does not pay for gas. He gave the example of the thermoelectric plants CET-1 and CET-2, which produce power at higher costs, noting that if the Cuchurgan Power Plant had been transferred officially under the administration of Moldova, we would have had a kind of CET-3.
● THURSDAY, November 12
Economic crisis is expected to worsen by this yearend, analysts
Moldova will witness a worsening of the economic crisis towards the end of this year, which will be followed by a considerable decline in 2016, analysts of the Institute for European Policies and Reforms say in a study. According to them, the production and trade indexes predict an economic collapse. Study authors – the Institute’s economic policy moderator Eugen Ghiletski and associate analyst Dumitru Vicol – analyzed two economic indicators: industrial production and retail trade. These show a continuous decrease in the industrial output starting with the middle of 2014, which became more distinct in the first half of this year. The industrial production index fell by 5.8% and, respectively, 3.3% in August and September. The last similar development was witnessed in 2011, after which an economic decline of almost 1% followed in 2012, according to the World Bank data.
Group of experts demands that energy regulator should postpone rise in tariffs
A group of energy experts and representatives of civil society called on the National Agency for Energy Regulating (NAER) to postpone adopting the decision to increase the gas tariffs and to make public its draft decision on these tariffs beforehand. “We consider it is irresponsibility on the part of the NAER to review the tariffs now that the amendment to the law on the natural gas, proposed by former Liberal-Democratic MP Semion Furdui, is in force. This amendment runs counter to the European Directive2003/55/CE and causes damage of about 800,000 lei to consumers,” ex-NAER director Victor Parlicov told a news conference. According to him, about 5-6% of the July rise in natural gas tariffs is due to this amendment and the tariff includes additional costs. “Based on this amendment, the money that is paid by the Russian company Gazprom for the transportation of gas through Moldova goes to MoldovaGaz, which uses it how it wants, and is does not enter the state budget,” stated Parlicov.
● FRIDAY, November 13
Natural gas tariffs increased
The National Agency for Energy Regulation (NAER) abrogated its July decision by which the natural gas tariffs were increased by 15.4% and approved a new tariff that is by 5.6% lower than that approved in July. Thus, the tariff per thousand cubic meters of gas will be by 9.8% higher than the current one. The new tariff is yet by 25% lower than that asked by the public utility “Moldovagaz”. The decision was adopted by the Agency’s administration Board by a unanimous vote. In the meeting held to reassess the natural gas tariffs, expert Victor Parlicov, ex-director of the NAER, asked not to take a decision until the so-called Furdui amendment to the Law on Natural Gas is not repealed. According to him, due to this amendment, the money paid by the Russian company Gazprom for the transportation of gas via Moldovan reaches “Moldovagaz”, which uses it how it wants, but should be transferred to the state budget.
National cyber security program takes effect
The Government Decision concerning the approval of the national cyber security program came into force on November 13 following its publication in the Official Gazette. The program provides for the safe processing, storage and accessing of data, ensuing of the security and integrity of networks, strengthening of cyber defense capacities. The program is designed to contribute to the implementation of the Association Agreement between Moldova and the EU. It covers seven intervention areas, namely emergency response and prevention capacities, prevention and combating of cybercrimes, education and information, and international interaction.
