RETROSPECT OF THE WEEK May 29 – June 4. Most important IPN “Economics & Business” news.

[*Monday, May 29] [Districts put off presenting information regarding TAV payment by agricultural producers] The Republican Union of the Agricultural Producers Associations “UniAgroProtect” is unpleased with the fact that local authorities delay presenting information to the specialized institutions, namely the documents which would confirm the farmers paid the tax-added value (TAV) when purchasing pesticides and fertilizers. Therefore, TAV reimbursement to the rural economic agents is delayed. [„Moldova-Agroindbank” became the country’s most expensive company] „Moldova-Agroindbank” (MAIB) became the most expensive joint-stock company, due to the last evolutions of its stock. Now, the market price of the bank is of 674 462 100, exceeding the market price of „Moldovagaz”. [CNVM price stock index staying stable the 4th week in a row] For the fourth week already, the CNVM-32 price stock index stays unchanged. [IMF notes certain deficiencies in statistics] The International Monetary Fund (IMF) identified certain deficiencies in national statistics. According to IMF Assessment Report, made in the context of the Agreement with Moldova, the statistic of the labor force market is still inappropriate for exploring macroeconomic changes. It means the lack of data on unemployment according to International Labor Organization methodology, as well as non-inclusion in wages of additional benefits, which represent an important part of workers’ payment. [Authorities announce an increase of the average salary in economy] Statisticians announce an increase by 26% of the average wage in the first trimester of 2006, without making public the value of the minimum consumption basket for this period. According to the data of the National Bureau of Statistics (NBS), the average wage constituted 1478.8 lei, increasing by 26% comparing to the similar period of the last year and the real wage increased by 13%. [Entrepreneur activity to be regulated on the base of international practices] The state commission for entrepreneur activity regulation approved the reform strategy of the state regulation framework on entrepreneur activity in the Republic of Moldova. The Ministry of Economy and Commerce (MEC) elaborated the document, in conformity with international standards. [* Tuesday, May 30] [Banking system keeps high development pace] The Moldovan banking system keeps its high development pace, being placed in the top of the most dynamic sectors of the national economy. Within the period January-April 2006, the system assets increased by 6.37%, and compared to the same period of last year by 36.33%, amounting to 19,15 billion lei, according to National Bank of Moldova. The first five banks of Moldova, having as leader «Moldova-Agroindbank» and Banca de Economii, own almost 70% of the total assets. [Obligation of paying standard TAV could generate financial crisis in agriculture] The Republican Union of the Agricultural Producers Associations “UniAgroProtect” draws attention about a possible financial crisis in agriculture during June-August period, caused by the compulsoriness of paying the standard TAV when delivering agricultural production. [Moldova to provide power delivery from Ukraine to European countries] Ukraine will export electric power to Moldova, Romania and Balkan states, Ukrainian Prime Minister Iurii Ehanurov announced about this at a press conference, at the meeting of Joint Moldovan-Ukrainian Commission for Commercial-economic Cooperation, held on Monday, May 29, in Kiev. [Regulating goods transit across Moldovan-Ukrainian border is to continue] Prime Ministers of Moldova and Ukraine restated their intention to respect the provisions of the Joint Declaration on regulating goods transit via Moldovan-Ukrainian border, concluded on December 2005, in Kiev. [*Wednesday, May 31] [EVM Composite increasing for three days continuously] On May 30, the capital market was rather passive, with few transactions and low volumes. Anyway, there were as well registered positive price evolutions, influencing the increase of the EVM Composite stock quota for the third day in a row. [Three big companies of Moldova to take part at International Exhibition Fair in Bucharest] The Moldovan Exhibition Company “AXAR” organized the participation of three big Moldovan companies - “Bucuria”, “Natur-Bravo “ and “Alfa-Nistru” – at the 23-d edition of the International Fair “TIBCO-2006”, held on 31 May – 4 June in Bucharest, Romania. [Credits continuing to go cheaper] The bank credits market of Moldova, in April, was marked by a reduction tendency of the interest rate to loans in national currency, as well as in foreign currency. The average of interests on the banking system in April was of 17.83% to credits in national currency, compared to 18.18% in March, and 10.83% - in foreign currency, compared to 10.91%. [Amount of foreign investments per capita in Moldova – lowest in Europe] The Republic of Moldova has the lowest amount of foreign investments per capita compared to European countries, declared on Wednesday, May 30, the Minister of Economy and Commerce, Valeriu Lazar, during at hearings performed by the parliamentary commission for foreign policy and European integration, on the chapter Action Plan Moldova-European Union. [New draft law on insurances aims to seriously change the field] The participants to the Moldovan insurance market welcome the new draft law on insurances, approved by the Government a week ago and submitted to the Parliament for examination. According to them, the project will make serious changes in the area, as the existent legislative framework is obsolete. The current law on insurances was approved in 1993, so a new law was needed for a long time in order to adjust the legislation to the existent realities, to the new Civil Code and for ensuring a more precise regulation of the current relationships between insured and insurers. [*Thursday, June 1] [Microsoft appointed its first employee in Moldova] The Microsoft Company appointed its first employee in Moldova, who is to coordinate the sells and marketing activity, to hold talk with partners and clients about business opportunities, technology and Microsoft Corporation products available in the Republic of Moldova. [Mayoralty prepares in fair weather for foul] The mayoralty intends to purchase 50-60 snow-cleaning plows from specialized western companies. [NSC authorized transaction of 3 million shares of „Energbank”] The National Securities Commission (NSC) authorized on Thursday, June 1, the transaction of 3 million shares issued by the Commercial Bank „Energbank”. According to NSC, the nominal price of „Energbank” shares is 50 lei. At the same time, it was adopted the decision on canceling the securities issued previously by SA „ATC-Agrotehcomert” amounting to about 10,000 nominative obligations authorized for transaction and issued at the nominal price of 100 lei, linked to circulation expiry date. On Thursday, the Commission also registered the tender offer on purchasing the stock of the „Slobozia Mare” Wine Factory, announced by „Bavax” Ltd. [NSC charges „Estmator-VM” Agency of misevaluation] The National Securities Commission (NSC) alleged on Thursday, June 1, that the Rating, Evaluation, and Investment Consultancy Agency “Estimator-VM” undervalued the securities’ price of “Kazayak-Vin” Joint-Stock Company. [Foreign Investors Association concerned about the restraints imposed on land purchasing] FIA conveies its deepest concern regarding the recent approval by the Parliament of the R. Moldova of new amendments to the Law on the normative price for land and the procedure for land purchasing, whereby local legal entities, having their share capital formed of foreign investments, regardless of their proportion, shall no longer have the right to purchase farm land altogether. [*Friday, June 2] [First comes knowledge, then comes producing] Obtaining bigger volumes of agricultural production must concern the farmers only after a distribution network of these products will be developed, especially after the export to the EU member countries will be increased (EU), considers the secretary of the Republican Union of Agricultural Producers Associations “Uniagroprotect”, Alexandru Slusari. According to him, increasing the volume of production is not of first importance for agriculture, as long as it cannot be sold. At the same time, the farmers must give up to some products, which give small profits, in favor of the products with high value. “We must lay stress upon the strategic areas – viticulture, fruit and vegetable growing. It does not mean that we must forget the other areas (wheat, sunflower etc) which bring low incomes, but also do not imply high expenses”, states Slusari. In the list of strategic cultures, the expert affirms, can be included also sugar beet, but only in the Northern part of Moldova. [Business Consulting Institute elaborated legal framework for improving municipal transportation] The activity conditions and the quality of the services offered by the municipal transporters will improve after Chisinau Municipal Council will approve the Strategy for Public Transport Development of Chisinau municipality and the set of normative acts, aimed to ensure the practical implementation of this strategy. The declaration belongs to the experts of Business Consulting Institute (BCI), who elaborated the document together with the Technical University of Moldova. [Authorities promise increased wages for lowest salary category in non-budgetary field] The state authorities promise a new tariff salary for the first wage category in non-budgetary sphere on June 23, when the meeting of the tripartite Commission Government –Trade Unions –Patronages is to be held. The deputy minister of economy and commerce, Sergiu Sainciuc, announced that all the proposals of workers and employers’ organizations were explored within collective negotiations and the consensus version was set. Sainciuc did not mention the amount of the tariff salary, but noted that it was chosen the middle way. Previously, Trade Unions said to require employers to increase the amount of the tariff salary for the first wage category from 550 lei to 750 lei. But the employers rejected this proposal, noting that they are willing to pay for unqualified work only 650 lei. [Patronages consider that a vigorous social policy needs lots of money] The leaders of the patronages state that for making a healthy social policy in the Republic of Moldova a “bag of money”, coming from the development of the national economy. Solicited by Info-Prim Neo to comment upon the request of the trade unions to the patronages to increase the tariff wage for the first wage category in the non-budget area up to 750 lei, the deputy director of the National Confederation of Patronages of Moldova, Adrian Axenti, declared that the request of the trade unions to increase the wages up to the level of neighbor countries without taking into consideration our economic realities could, simply lead to an inflation crisis. In this case, any increase by 200 lei per month will be “swallowed” by inflation, so the increase will be simply on paper. [Profitableness of shares issued by „Moldova-Agroindbank” is stable] On 1 June, only one transaction was made at the Stock Exchange of Moldova with the shares of „Moldova-Agroindbank”, their price being preserved – 650 lei/share. According to the Rating and Estimation Agency „Estimator-VM”, a package of 0.04 % shares, about 286,000 lei, was involved in the transaction. Fast increase of the price for these shares is motivated by the increase of bank’s net income. Since 2002 till 2005, it has increased more than twice, from 64,9 million lei to 136,1 million. [„Apa-Canal Chisinau” called on CMC for additional shares to paying external debts] SA „Apa-Canal Chisinau”, Chisinau’s water supplier, solicited to Chisinau Municipal Council (CMC), its single stakeholder, to initiate an additional share issuance, in order to reimburse its credit debts to the European Bank for Reconstruction and Development (EBRD). According to the economic manager of the water supply enterprise, Ion Burdila, ACC proposes to initiate an additional share issuance of 140,000 shares, in order to collect the necessary resources for paying the spring tranche of the previously taken credit from EBRD and used for re-establishing the water system of the capital. According to him, the issuance initiation is to be made as well with the aim to increase the statutory capital of the enterprise. [*Saturday, June 3] [70 % of Chisinau’s passengers prefer to travel by minibuses] About 70% of the passengers who use the urban passenger transport from Chisinau prefer to travel by minibuses. According to the opinion poll was effected by the Business Consulting Institute, the mentioned-above category of passengers are followed by the persons which use trolleybuses (51%) and autobus passengers (about 14%). [Commercial activity on basis of entrepreneur license will be prohibited] Till 2009 the commercial activity on the base of entrepreneur license will be prohibited. The Parliament will approve on Friday, June 2, a draft law at the request of the Ministry of Economy and Commerce (MEC). The opposition MPs criticized the project. According to the minister Valeriu Lazar, the commercial activity on the base of entrepreneur license brings prejudices to the individual enterprises and big firms. The activity on the base of the entrepreneur license violates the rights of the consumer, declared Lazar. He said that till 2009, the activity on the base of the entrepreneur license will be prohibited, and these persons will have the possibility to create individual enterprises and limited liability companies. On the base of the license only the commercialization of own products and offering services will be possible. [*Sunday, May 4] [Activity of the commissions for collective consultations and negotiations will settled by a law] The organizational and functioning ways of the national Commission for collective consultations negotiations will be regulated by a separate law, which was adopted in first reading at the last sitting of the Parliament.