● MONDAY, January 19
33 agricultural companies to benefit from grants of over 5m lei
Thirty-three agricultural companies will receive grants to the total value of 5.3 million lei within the post-investment grants program “Sustainable Land Management” of the World Bank’s Moldova Agriculture Competitiveness Project. According to a communique of the project, two rounds were held in 2014 to select applicants. The assessment commission accepted 33 applications for financing of the 42 submitted in the first round. The other 80 applications filed in the second round will be examined until this spring.
EBRD plans to acquire up to 50% of shares of Victoriabank
The European Bank for Reconstruction and Development (EBRD) is prepared to increase its stake in Victoriabank with the aim of restoring effective corporate governance at the bank and ensuring its continued sound financial performance. While currently the owner of a 15.06 per cent-stake, the EBRD has applied for and received regulatory approval to acquire up to 50 per cent of the shares of Victoriabank. However, EBRD has not yet determined the exact amount of its proposed increased stake, which will depend on market developments.
High temperatures didn’t affect agricultural crops, but there are risks
The winter crops weren’t affected by the high temperatures of this month. Dangers can appear if the temperatures decrease suddenly. The head of the Agricultural Weather Forecasts Center Tatiana Mironova has told that such high temperatures in January are witnessed in Moldova once in four-five years. The specialist said that though the winter crops develop during the day, they grow insignificantly because the nighttime temperatures are lower.
ICT regulator announces contest to distribute four radio frequencies
The National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) has announced a contest to distribute four licenses for using radio frequencies of the 3400-3600 MHz band. The applications for participation and the accompanying documents can be submitted to the ANRCETI until March 13. The license will be provided for a period of 15 years. The contest is open to national and foreign legal entities, civil society organizations/associations of legal entities from Moldova and/or abroad, which can submit common applications and bids.
Air Moldova launches direct Chisinau-Vienna-Chisinau flight
Air Moldova airline extends the geography of flights by launching a new direct flight Chisinau-Vienna-Chisinau from April 10. The flight will be operated three times a week, on Mondays, Wednesdays and Fridays, by an Embraer 190. According to the airline’s official website, on Mondays and Wednesdays, the plane will set off from Chisinau at 1:50pm (local time). In Vienna it will land at 2:30 (local time) and will set off then at 3:20 (local time). In Chisinau it will land at 5:50 (local time).
Actions to slaughter animals in Orhei limited
The National Food Safety Agency (ANSA) limited the actions to slaughter animals during the period of quarantine in Cihoreni village of Orhei district, which was instituted following the detection of a case of anthrax in a cow last week. According to the ANSA, the cow was burned and the territory of the farm as well as the unit of transport that took the cow to a hole was disinfected. The veterinarians immunized all the farm’s animals against anthrax.
Police close oil company
A food oil making company based in Chisinau was closed. Following an inspection at the company’s production and processing section, the police established that it worked in insanitary conditions and in the absence of a sanitary and functioning authorization. According to the Chisinau Police Division, the company used the oil that was already used in the production process at other individual companies. This oil was indicated in the accounting documents as used up. The employees of the company’s accounting section could not provide explanations in this respect. The employees who were present at the workplace didn’t have work contracts and other mandatory documents.
● TUESDAY, January 20
EBRD reduces economic growth forecast for Moldova
The European Bank for Reconstruction and Development (EBRD) considers that Moldova’s economy in 2015 will stagnate and reduced thus the economic growth forecast made in autumn from 4 per cent to 0 per cent, quoting the Regional Economic Prospects published by the Bank. EBRD economists said a sharp fall in the price of oil has piled pressure on an already fragile Russia, and is hitting growth in energy exporters and other emerging nations with close links to Eastern Europe’s largest economy. They expect Russian GDP to shrink by close to 5 per cent in 2015. On the positive side, the oil price decline could help soften the impact on emerging economies of the expected normalisation of U.S. monetary policies.
Who loses and who gains as a result of depreciation of leu
Economic expert Vitalie Rapcea said the depreciation of the leu affects those who receive the salaries and earn incomes in lei and those who took out loans in foreign currency and now have to pay higher interest from the same salaries in lei. The expert noted that at macroeconomic level, it is presumed that the exporters gain benefits from such a situation, but these say that they do not have export markets. Asked who gains as a result of the deprecation of the leu, Vitalie Rapcea said that theoretically, it is those who have savings in foreign currency and now change them for investments or other payments, but this probability is low.
Fifteen more groups of producers to be created in horticulture this year
Another 15 groups of producers will be set up this year in the horticultural sector. These will be able to apply for grants for the post-harvest industry to the value of up to US$ 350,000. The issue was discussed in a meeting of the Supervisory Board of the Consolidated Unit for Implementing and Monitoring Projects in Agriculture, which is managed by the MAC-P project. The Supervisory Board’s head Vasile Bumacov, acting Minister of Agriculture and Food Industry, said that one of the greatest challenges of the project was to convince the Moldovan farmers to form associations. Last year, there were created 18 groups of producers that involve over 100 farmers. “This is a very good result,” stated Bumacov.
Trade between Romania and Moldova on the rise
Romania’s Embassy in Chisinau said the volume of trade between Romania and Moldova continues to increase. In the first 11 months of 2014, the trade between the two countries rose by over 19.03% compared with the same period of 2013. The bilateral trade came to almost US$1.5 billion. Romania’s exports to Moldova amounted to US$1.028 billion, up 20.51% on the same period a year before, while imports from Moldova – to over US$461 million, an increase of 15.88%.
● WEDNESDAY, January 21
Dorin Dragutanu provides explanations over depreciation of leu
The National Bank governor Dorin Dragutanu said the leu depreciated because Moldova’s economy was struck by external shocks for which it wasn’t prepared. He provided explanations in the talk show “Moldova live” on the public TV channel “Moldova 1”. According to the governor, the economic situation in Russia and the bans imposed by this country on the import of Moldovan agricultural products were the key factors that determined the leu’s depreciation. “The Russian ruble fell dramatically so that the Moldovans working in Russia send fewer dollars or euros home than before. Thus, remittances decreased. Another cause that led to the depreciation of the leu is the decline in exports, influenced mainly by the bans imposed by Russia.
Transnistrian administration announces delays in salary payment
The administration of Transnistria has announced that it will pay with delay the salaries of budget-funded employees owing to the lower incomes collected into the region’s budget. The amounts collected during the first 20 days of this month fell four times to 16 million rubles (about 20 million lei), as against more than 60 million rubles (over 75 million lei) in the corresponding period last year. The local press reported that delays will be witnessed not only in Tiraspol, but also at local level, in such districts as Grigoriopol, Slobozia, Camenca and Dubasari. Now only Rybnitsa district can pay the salaries from the incomes collected at local level on time.
● THURSDAY, January 22
Baltic countries intend to increase imports of Moldovan agricultural products
The Baltic countries plan to import more agricultural products from Moldova and this will lead to a rise in exports, said acting Minister of Agriculture and Food Industry Vasile Bumacov. He has told that he recently took part in an event in Berlin, where he discussed the issue with his counterparts from the Baltic states. “Estonia expresses the greatest interest in our products. In February we will make a visit to this country to launch a project by which priority will be given to the import of Moldovan agricultural products,” said the official.
Situation on currency market will lead to higher cost of living, expert
The depreciation of the Moldovan leu against the main foreign currencies will cause a rise in prices in the medium and long term, especially of the imported products. Natan Garstea, director of the Rating and Assessment Agency “Estimator-VM”, has told that the situation created on the currency market will lead to a higher cost of living. The exporters gain benefits from the depreciation of the leu because the products sold in foreign currency abroad bring them now more lei. At the same time, the importers sustain losses because the products sold abroad cost more on the home market. Those whose expenses are expressed in currency, as for example the rent, also sustain losses.
