● MONDAY, June 11
Hotbed of African swine fever confirmed in Anenii Noi
A hotbed of African swine fever was confirmed in a private farm located near Mereni village of Anenii Noi district. Maxim Sirbu, of the National Food Safety Agency’s Sanitary-Veterinary Surveillance Division, has that the owner is from Mereni, while the farm is situated about 1.5 km from the village. A number of 22 pigs at the farm were affected by the virus. Six of these died within 24 hours, while the others were killed. African swine fever is not dangerous to humans, but spreads swiftly among animals and causes considerable damage to agriculture. If the virus is confirmed, the animals are killed and the places where these were kept and the areas nearby and used utensils are disinfected. The last case of African swine fever in Moldova was reported in Tvardita village of Taraclia district in May.
● TUESDAY, June 12
Gasoline and diesel fuel grow more expensive
The price of gasoline will be by 0.34 lei higher, while of diesel fuel by 0.32 lei higher. The National Agency for Energy Regulation announced the fuel price ceilings for June 13-26. During the next two weeks, the price ceiling of gasoline will be 19.49 lei/liter, while of diesel fuel – 17.41 lei/liter. For the first time the Agency provided explanations. Thus, 9,23 lei/liter is the price of gasoline according to quotations, 3.76 lei/liter is the excise duty, 3.25 lei/liter is the specific commercial margin, while 3.25 lei/liter is the VAT. In the case of diesel fuel, 9.50 lei/liter is the price according to quotations, 1.76 lei/liter is the excise duty, 3.25 lei/liter is the specific commercial margin, while 2.90 lei/liter is the VAT.
Revenues from sale of electronic communications services decline
The revenues from the activities performed in the electronic communications sector (mobile and fixed telephony, mobile and fixed Internet, transmission and retransmission of audiovisual programs) in the first three months of this year decreased by 4.8% compared with the corresponding period last year, to almost 1.5 billion lei. The National Regulatory Agency for Electronic Communications and Information Technology said the sales of fixed telephone services fell by 21.8% to 143.1 million lei, of audiovisual programs by 10.2% to 58.9 million lei, while of mobile phone services by 5.4% to 749.1 million lei. In the period, the sales of mobile and landline Internet access services continued to go up. The revenues from the sale of wireless Internet access services rose by 20.8% to 244.3 million lei, while the sales of fixed Internet access services grew by 5.8% to 315.1 million lei. The revenues from other activities in the sector diminished by 4.6% to 152.3 million lei.
Minister Gaburici warns administration of Moldova’s Railways
Minister of Economy and Infrastructure Kiril Gaburici requested the administration of the state-owned company Moldova’s Railways until autumn to take all the necessary measures to swiftly optimize processes at the company. If the administration does not act appropriately, corresponding measures will be taken. In a communique, the Ministry of Economy and Infrastructure said the company’s activity was examined in a meeting of the Ministry’s administration and the administration of Moldova’s Railways. They discussed the financial-economic situation of the company, the difficulties and solutions for eliminating these, the company’s development priorities, methods of clearing the salary arrears and the rise in salaries. The administration of Moldova’s Railways was instructed to work out a development plan for 2018-2020 until July 1. This should envision the automation of processes and optimization of costs.
Economy Ministry files lawsuit to have fuel price ceilings annulled
The Ministry of Economy and Infrastructure requested the Buiucani branch of the Court of Chisinau to annul the National Agency for Energy Regulation’s order of June 12 by which higher price ceilings for gasoline and diesel fuel were set. The lawsuit was filed on June 12. In a press release, the Ministry said the claim was submitted in concert with the Agency for Consumer Protection and Market Surveillance. They asked to suspend the order until an irrevocable court judgement is passed. The claim says the rights and legitimate interests of the consumers could have been violated. The National Agency for Energy Regulation on June 12 announced the fuel price ceilings for June 13-26. During the next two weeks, the price ceiling for gasoline will be 19.49 lei/liter, up 0,34 lei, while for diesel fuel – 17.41 lei/liter, up 0.32 lei.
Annual rate of inflation in May was lower, central bank
The annual rate of inflation this May was 2.8%, down 0.9 percentage points from the previous month, being lower than the lowest limit of the variation interval of ±1.5 percentage points from the inflation target of 5.0%. The inflation dynamics in May were determined by the modest aggregate demand and the effect of a high basic period in 2017. For the immediate period, the National Bank of Moldova anticipates a modest aggregate demand close to the potential, which will continue to generate disinflation pressure. Food prices contributed 1.7 percentage points to the annual rate of inflation, while the basic inflation and fuel prices 1.1 and, respectively, 0.5 percentage points. The regulated prices generated a negative contribution of minus 0.5 percentage points, by 0.1 percentage points lower than the previous month.
● WEDNESDAY, June 13
Tiraspol announces 50% rise in foreign trade
The Transnistrian region’s foreign trade during the first five months of this year rose to US$821.6 million according to statistics quoted by the local press. This is an increase of 53% compared with the corresponding period last year. Imports grew by 44%, while exports by 72%. The local customs’ chief Vitali Neagu, in a meeting with the Transnistrian leader Vadim Krasnoselski, said Transnistria’s exports to the EU amounted to 36% or US$ 105 million. Romania remained the main partner in Europe, being followed by Poland, Germany, and Italy. Exports to Russia in the five months came to US$ 32 million, which is 11% of the total. Among the states of the Eurasian Customs Union, Russia holds the lead by the volume of imports from the Transnistrian region.
NAER restores price ceilings set a month ago
The National Agency for Energy Regulation (NAER) said the retail price ceilings for the main fuels as of June 13, 3pm, will be 19.15 lei per liter of gasoline and 17.09 lei per liter of diesel fuel, which are the ceilings announced on May 15. The decision was taken with the aim of implementing the court judgment passed on June 12, by which the NAER order announcing higher fuel price ceilings issued earlier the same day was suspended. The Buiucani branch of the Court of Chisinau suspended the Agency’s order at the request of the Ministry of Economy and Infrastructure.
Tarom renounces planned Constanta-Chisinau flight
The Romanian airline Tarom annulled the Constanta-Chisinau-Constanta flight that was to be operated as from July 1, 2018. The International Airport “Mihail Kogälniceanu Constanta” informed about this in a press release. The press release says the annulment is momentary, but gives no details as to the reasons and the possible period when the flight will be operated.
Applications for subsidies in advance for starting agribusinesses can be filed as of July 1
The young people and women who want to start businesses in agriculture could apply for subsidies in advance from the national agriculture and rural development fund as from July 1 this year. Minister of Agriculture, Regional Development and Environment Liviu Volconovici said 45 million lei will be allocated from the fund for the purpose. The authorities estimate that 500 new jobs will be created as a result, especially in rural areas. Those who want to get subsidies in advance should design a business plan based on which the projects will be selected. Those who will convince the authorities that they can develop modern agribusinesses and will create at least one job in the village can receive state subsidies beforehand. The projects should be worth up to 1 million lei to which the state will contribute 65%.
● THURSDAY, June 14
NAER to approve new electricity and water tariffs June 15
The National Agency for Energy Regulation (NAER) will come together for a meeting on June 15 to examine and put to the vote the new electric power and water supply tariffs for the municipality of Chisinau and the national electricity distribution and supply tariffs. Based on the calculations presented by Gas Natural Fenosa, the NAER specialists established that the electric power tariffs for household users connected to a low-voltage power line should be reduced by 12%, not by 5.5% as the supplier suggested. For the household users connected to a medium-voltage power line, the NAER suggests a 13.1% decrease in the tariff, while the supplier proposes a 6.1% reduction. For the consumers connected to a high-voltage power line, the reduction proposed by the Agency is of 13.5%, while the one proposed by Gas Natural Fenosa is of 6%. For the consumers in norther Moldova served by RED-Nord and FEE Nord, the NAER proposes a 10% decrease in the tariff in the case of low-voltage power lines and a 9.7% decline in the case of medium-voltage power lines. As regards the water supply and sewerage tariff in Chisinau municipality, the supplier suggests a 1.44 lei decrease, to 12.13 lei/cubic meter per household users and to 25.90 lei/cubic meter for other users.
“Electromas” and “Uralelectro” to produce together electric motors
The Tiraspol-based plant “Electromas” and the Russian company “Uralelectro” agreed to launch a common activity to develop and produce explosion-proof, high-efficiency rotating electrical machines with the height of the rotation axis of 56 to 132 mm. On its website, the Tiraspol plant says the project, which is mutually advantageous, will be implemented on the basis of the production platform of the Mednogorsk-based “Uralelectro” by training the specialists of the two companies. The main task of the companies is to produce high-quality, energy-efficient electric motors. These will be used not only for new industrial equipment, but also for equipment that is being used.
State offers subsidies for hiring unemployed persons from vulnerable groups
The employers that will hire persons out of work from vulnerable groups could apply for state subsidies for partially covering the salaries of these employees. In its June 14 sitting, Parliament adopted a bill concerning the promotion of employment in the final reading. Under the bill, the monthly subsidies will represent 30% of the average official salary for the previous year, for a period of six months for each employed person from such groups. The given groups are: persons aged 50 and over; persons freed from jail; victims of human trafficking who benefitted from psychological and social rehabilitation; persons who struggle against drug addiction; victims of domestic violence and other vulnerable categories. Subsides will also be offered for creating or adjusting the workplace for persons with disabilities employed on an individual work contract for an indefinite period of time. In these cases, there will be covered 50% of the costs incurred by the employer to create or adjust the workplace, while the subsidy will not exceed ten average official monthly salaries for the previous year for each created or adjusted workplace.
● FRIDAY, June 15
High fuel prices seriously affects agricultural producers and carriers, opinion
The high fuel prices seriously strike the agricultural producers and carriers. Furthermore, the rise in gasoline and diesel fuel tariffs will result in rises in the prices of different products. Such opinions were stated in the program “Direct access” on NTV Moldova channel. Civic activist Sergiu Ungureanu said the average fuel price seriously affects agricultural producers and carriers. Additionally, when fuel prices are raised, it is known that the prices of bread, milk and other products also increase. In the current conditions, the National Agency for Energy Regulation is put in the situation to attract all the public dissatisfaction to it. “A game between different branches of power takes place here. It’s clear that this should not happen and we said that we should see how the capping regulations were worked out and should change them,” stated the activist.
Water tariffs in Chisinau remain unchanged
The National Agency for Energy Regulation rejected the request of SA “Apa-Canal Chisinau” to increase the water and sewerage tariffs in Chisinau municipality. The supplier asked to raise the water and sewerage tariffs by 1.44 lei/cubic meter: to 12.13 lei/cubic meter for household users and to 25.90 lei/cubic meter for other consumers. Until a new decision is taken, the household users will continue to pay 10.69 lei/cubic meter of water, while the other consumers – 24.46 lei/cubic meter.
National Bank issues warning to EuroCreditBank
The Executive Committee of the National Bank of Moldova decided to impose a penalty consisting in warning on BC EuroCreditBank SA. The decision was taken as a result of a thorough inspection carried out at this bank during which a series of legislative violations were identified. In a press release, the National Bank says there were discovered violations of the Law on Financial Institutions, the regulations issued by the National Bank of Moldova and the Law on the prevention and combating of money laundering and terrorism financing. In particular, the bank didn’t respect the prudential requirements concerning lending activity, risk concentration, classification of assets, bank ownership transparency, etc. According to the National Bank, BC EuroCreditBank SA works in a normal regime and provides the whole range of services, including those related to lending and depositing.
“Expert-Grup” highlights constrains that can jeopardize economic growth
Despite the positive economic dynamics of the recent months, there are signals that the economic growth will slow down in the nearest future. The factors that will limit the economic expansion are determined by the well-known flaws of the national economy, low competitiveness and labor productivity, unfavorable weather conditions, as well as the repercussions of the autumn elections for the business environment. The conclusions were presented by experts of the Independent Think Tank “Expert-Grup” in a press conference at IPN where there was launched the quarterly publication “Real Economy”. “Expert-Grup” executive director Adrian Lupusor said the Center’s experts identified a number of constrains that can jeopardize economic growth. These derive from the low competitiveness of the Moldovan economy amid the appreciation of the national currency that will lead to a trade deficit and current account deficit in parallel with low labor competitiveness that will affect exports as well. The lack of rainfall could compromise particular crop harvests in agriculture even if the agricultural production, especially the animal one, saw upward trends in the first months. The risk of the electoral factors will materialize into the reluctance of private companies to invest, which will cause repercussions for bank lending. In addition, a series of pre-electoral initiatives that have already been launched, such as the “Good Roads for Moldova” program or the “First House” program, all lacking a clear budget coverage, threaten to affect the stability of public finances.
Some of policies and initiatives launched recently are populist in character, “Expert-Grup”
Some of the policies and initiatives launched in the recent past do not respond to the challenges of the national economy and are predominantly anchored in electoral interests and are not contributing to the welfare of the country, being rather populist, experts of the Independent Think Tank “Expert-Grup” stated in a press conference at IPN. The experts analyzed the quality of the policies and initiatives proposed by politicians in the June issue of the quarterly publication “Real Economy”. Economist Iurie Morcotylo said the Democratic Party’s local roads rehabilitation initiative “Good Roads for Moldova” was approved with deficiencies in terms of financial resources. It is specified that investments in the repair projects will be made when the necessary financial resources are accumulated, but this is inacceptable. Under the legislation and good international practices, the public authorities must not approve projects if the financing is not identified. The program was not discussed and argued and it is not known what communities should benefit from repaired roads, what length of roads will be repaired, etc.
GDP up 3.7% in first quarter
The Gross Domestic Product in the first quarter of this year rose by 3.7% compared with the corresponding period last year, to 37.6 billion lei, IPN reports, with reference to the National Bureau of Statistics. Positive contributions to the GDP were made by the retail and wholesale trade, accommodation and public eating places, extractive industry, processing industry and information and communication technology. Negative contributions were made by the public administration and defense, mandatory social insurance, education, health and social assistance. The GDP growth was mainly due to the final consumption of the population, which contributed 90.9% to the formation of the GDP. The information does not cover the left side of the Nistru and Bender municipality. Tiraspol announced a local GDP of 2.195 billion Transnistrian rubles for the first quarter. In real terms, (GDP in comparable terms), the economy grew by 15.1%.
● SATURDAY, June 16
Increased measures against African swine fever taken in Anenii Noi
The number of transport disinfection filters and check points near the hotbed of African swine fever in Mereni village of Anenii Noi district was raised from one to three. There are three large pig farms in the region and their protection is now a priority, the National Food Safety Agency has said. The Agency’s inspectors are assisted by employees of the Police Inspectorate. Together they examine the animal markets and explain to the population the dangers faced if the African swine fever spreads. The increased-risk units are being inspected to limit the possibility of the spread of the virus. The Agency will increase the number of inspectors in other local subdivisions and of freelance veterinarians so as to ensure the smooth examination process and combating of the virus at national level. A meeting with pork producers and processors will be held to discuss the combating and prophylaxis of the African swine fever.
Drivers dissatisfied with fuel prices mount new protest
The motorists on June 16 staged a new protest against the fuel prices, which they consider too high. These parked their vehicles in the Great National Assembly Square of Chisinau. The protesters demanded that Parliament should adopt a new law by which to eliminate the excise duties on oil products and to decrease the import duties on fuels to the level of duties imposed on the import of products considered basic necessities. Following the rises in fuel prices announced by the National Agency for Energy Regulation Agency on May 29, mobilized through social networking sites, automobilists mounted two protests even if the Agency on June 1 suspended its decision and restored the price ceilings announced on May 15 at the request of Prime Minister Pavel Filip. The Agency on June 12 announced the new fuel price ceilings for June 13-26, but its order was suspended later the same day by the Buiucani branch of the Court of Chisinau, following a lawsuit filed by the Ministry of Economy and Infrastructure. On June 13, the Agency said the fuel price ceiling were decreased to those announced on May 15, which is 19.15 lei per liter of gasoline and 17.09 lei per liter of diesel fuel.
