● MONDAY, October 17
Moldova became regional financial laundry, Transparency International-Moldova
The problems in the financial sector, in general, and in the banking sector, in particular, accumulated in time regardless of the regimes and parties that ruled the country. The banking sector in the Republic of Moldova is the element that made possible the transformation of the country into a regional laundry of financial resources of dubious origin starting with 2005, says a digest produced by Transparency International – Moldova with the assistance of experts. The digest says this sector was used to steal money from the foreign exchange reserves of the National Bank of Moldova in 2014 by the ‘theft of the billions”, by later converting the debts and gaps into state debts. This generated major risks to the security of the state and financial system and of the people apart. These risks are caused by the transiting and withdrawal of financial resources of the Republic of Moldova, of people who work, including abroad, and their placing in offshore areas, in risky, secondary commercial banks, in a jurisdiction under the effect of international sanctions.
Electric cables factory inaugurated in Straseni
The Italian company La Triveneta Cavi Development opened an electric cables factory in the industrial park Straseni, which is a subzone of the Balti Free Economic Zone. Now the enterprise employs 49 people, but the number of workplaces will be extended to 200 in the near future. According to the Government’s press service, the factory will make low- and medium-voltage cables for telecommunications, signal and control cables and elements for gardening and domestic appliances that will be exported globally. Director of the Italian factory Fabio Fracasso said this is the first implementation stage that will lead to new hirings, which means more work, more production, new export markets and growth in turnover as a result.
● TUESDAY, October 18
Gasoline and diesel fuel grow more expensive
The price ceilings for gasoline and diesel fuel set by the National Agency for Energy Regulation for the next two weeks are higher. The new prices will be applied between October 19 and November 1. The price ceiling for a liter of gasoline coded 95 is 16.84 lei, up from 16.24 lei until now, while for a liter of diesel fuel is 14.75 lei, an increase of 0.72 lei compared with the last two weeks. The Agency calls on the people to report cases when service stations sell fuels at higher prices than the ceilings on the green line +373 800 10 800 or through the email address anre@anre.md.
Egg prices go up
Ten eggs bought from producers now cost by 2 lei on average more than several months ago, while to consumers these are sold at a price that is by 4-5 lei higher, depending on the profit margin imposed by traders. Contacted by IPN, Dmitri Ferfetski, producer from Parlita, Ungheni, said in summer ten eggs were sold for 14 lei, but now for 16 lei. In summer the producers worked at a loss. Now the prices were adjusted slightly. The price at which the eggs are sold to consumers depends on suppliers, which apply the profit margin. Ion Railean, producer from Briceni district, said the rise in egg prices is due to the low number of hens and, respectively, to lower production.
● WEDNESDAY, October 19
Honey and milk producers can access grants within second phase of Agriculture Competitiveness Project
The second phase of the Moldova Agriculture Competitiveness Project was launched on October 19 as part of the exhibitions “Moldagroteh” and “Farmer” that were opened at the Exhibitions Center “Moldexpo”. Minister of Agriculture and Food Industry Eduard Grama said the Agriculture Competitiveness Project is one of the largest by its value. Director general of the Agency for Payments and Intervention in Agriculture Nicolae Ciubuc said financing of US$10 million will be provided for implementing the second phase of the project. By the grants offered to farmers, the stimulation of investments in post-harvesting infrastructure in horticulture will be continued. The second phase of the project will cover two new subsectors – collection and processing of honey and milk.
● THURSDAY, October 20
Support for business development projects in Gagauzia and Taraclia
Startups and experienced entrepreneurs in the Autonomous Territorial Unit of Gagauzia and Taraclia region can benefit up to €18,400 through the EU funded “Support to Agriculture and Rural Development in ATU Gagauzia and Taraclia” (SARD) Program, implemented by UNDP. Project proposals for financing by the European Union through the SARD Program may be submitted during 17 October – 15 November 2016. This is the first round of the competition to support business development projects in Gagauzia and Taraclia. The second round of the competition will be announced in May 2017. Entrepreneurs from the ATU Gagauzia and Taraclia district who may contribute 20% of the requested amount are eligible applicants. Besides financial support, selected entrepreneurs will benefit from guidance and individual counseling in business during a year.
Balkan Pharmaceuticals opens production complex in Sangera
The company Balkan Pharmaceuticals opened its medicines production complex in Sangera town of Chisinau municipality. The investment exceeded €30 million. The inauguration ceremony was attended by Prime Minister Pavel Filip. “Today we took one more step towards making the drugs accessible to the people. On the other hand, it is a step towards their welfare. This company, after making investments that come from Romania, offers jobs to over 400 people. This means children whose parents will be at home, elderly people whose children will remain here, in the Republic of Moldova, and will take care of them,” stated the Premier. Pavel Filip spoke about the measures taken by the Government to support the business sector, in particular the pharmaceutical sector of Moldova, noting that the drugs market is a top priority for the executive. In this connection, the Premier said the plan of action worked out in March is designed to improve the situation in the field. Many of the measures agreed with producers and distributors of drugs were implemented and this enabled to reduce the prices of 160 types of most used drugs by 40%.
National Bank blocks group of shareholders of Moldinconbank
The National Bank of Moldova (NBM) established that a group of persons acted concertedly in relation to BC Moldinconbank SA by purchasing a substantial shareholding in the bank, of 63.89%, without the preliminary written consent of the central bank, violating thus the Law on Financial Institutions. Therefore, it suspended the exercise of some of the rights of these shareholders on October 20. Taking into account the suspension of the right to vote of the shareholders who own together over 50% of the bank’s shares, the NBM instituted an early intervention regime, in accordance with the Law on Bank Remedying and Resolution, in order to ensure the healthy and prudent management of the bank in the period during which the identified irregularities will be dealt with. The NBM named a temporary administrator at the bank and is to appoint local and foreign experts, who were already identified, as temporary members of the bank’s executive bodies so that these ensure the diligent and efficient management of the bank in the period.
● FRIDAY, October 21
IMF: Moldovan authorities made progress in implementing agreed prior actions
The Moldovan authorities have made significant progress in implementing the agreed prior actions needed for the IMF Executive Board to consider the future program, Armine Khachatryan, Resident Representative of the IMF in Moldova, stated in response to media inquiries. “An IMF mission reached a staff level agreement with the Moldovan authorities on a three-year economic reform program that could be supported by the IMF on July 26. Since then, the Moldovan authorities have made a significant progress in implementing the agreed prior actions needed for the IMF Executive Board to consider the program. A date for the meeting of the Executive Board will be set following the implementation of all prior actions. No postponements have been made,” the IMF Resident Representative says in a press statement.
Foreign investor willing to open animal waste processing plant in Moldova
A plant for processing animal by-products and for recycling used cooking oil could be opened in Moldova by the Italian company “Salgaim Ecologic”. The issue was discussed in a meeting of Prime Minister Pavel Filip and representatives of the company. Pavel Filip said the Italian company’s intention to bring investments to Moldova will help fulfill the commitments deriving from the Moldova-EU Association Agreement. It is about a project to collect and manage animal by-products that are not intended for human consumption, by meeting all the European standards.
Realities and prospects of developing women’s entrepreneurship
Women face a series of difficulties when they start or develop businesses. They invoke the fact that they do not have enough time for business owing to domestic responsibilities, that they meet with difficulties in accessing funds and raising loans and that men’s entrepreneurship prevails in the country. The issue was developed in a roundtable meeting staged by the National Institute for Economic Research of the Academy of Sciences of Moldova. Elena Aculai, senior scientific researcher of the Institute, said a number of priorities were set, including the need to improve the women’s access to different sources of financing, education and consultancy. The access to training is to improve the women’s access to different funds. Another mentioned priority is related to the legal framework, which should generally refer to entrepreneurship in general, but should also contain specific provisions, with measures to support businesswomen.
Farmers could be compensated for spring frost damage
The Ministry of Agriculture and Food Industry asked for 45 million lei from the Government’s reserve fund for financially supporting the agricultural producers whose orchards were affected by the late frost of this spring. The Ministry drafted a Government decision to this effect. The informative note to the draft decision says that low temperatures under the biological resistance level were recorded in some of the northern districts of Moldova on April 26-27 this year. These caused considerable damage to the agricultural sector, especially horticulture. According to the data of the district agriculture and food divisions, the late spring frosts seriously affected the fruit harvest in the districts of Briceni, Donduseni, Drochia, Glodeni, Ocnita, Rascani and, partially, Soroca. The losses were estimated at 207 million lei.
Moldova’s economy saw downward trend last year
Moldova’s economy in 2015 saw a downward trend, while the external sector of the national economy was marked by the economic recession witnessed by the main trading partners in the CIS (Russian Federation and Ukraine, whose GDP decreased by 3.7% and, respectively, 9.9% in real terms on 2014). This had a substantial negative impact on export and on personal remittances, IPN reports, quoting data of the National Bank of Moldova. The personal remittances of the residents of Moldova also saw a downward trend during the last few years, decreasing from 25.3% of the GDP in 2013 to 21.8% in 2015, especially as a result of the decline in remittances from Russia. The Moldovan leu continued to depreciate against the euro and the US dollar on the domestic currency market. The consumer price index in December 2015 was 113.6% on December 2014.
● SATURDAY, October 22
Average gross salary over 12% up in August
The average nominal gross salary this August was by 12.3% higher than last August and came to 5,242 lei. Related to the consumer price index, the rise was of 8.4%, IPN reports, quoting the National Bureau of Statistics. The highest nominal rise in the salary was reported in the electricity, heat and gas production and supply sectors, where the gross pays rose by 25% to about 9,700 lei. The salaries in the financial, insurance and ICT sectors increased to a smaller extent, but continue to be the highest in the economy – between 9,700 and 10,500 lei.
Berry jams compete in “Golden Ladle” contest
The fifth national contest for excellence in artisan gastronomy “Golden Ladle” is taking place within “Farmer 2016” exhibition at “Moldexpo” On October 22. This year the contest is entitled “Best berry jam” and involves 23 participants, who presented 37 berry jams. “By this competition, we are trying to support the national berry growers who are making effort to offer value added to their products by making jam,” the event’s director Tamara Schiopu has told IPN. The contest involves jams without sugar, dehydrated or raw, of blackberry, bilberry, buckthorn, dogberry, rowan tree berries, with added honey, white wine and borage flowers. “This contest is designed to discover unique homemade products with commercial potential,” stated Tamara Schiopu.
Vice governor Aureliu Cincilei takes over Administrative Committee of Moldindconbank
The Executive Committee of the National Bank of Moldova appointed the Bank’s vice governor Aureliu Cincilei as president of the Administrative Committee of BC Moldindconbank SA. In virtue of the Law on the National Bank of Moldova, the duties of vice governor Aureliu Cincilei were suspended for the period of the early intervention. The temporary administration at Moldindconbank was instituted within the early intervention regime following concerted actions taken by a group of persons to acquire a substantial shareholding in the bank, of 63.8%, without the preliminary written consent of the National Bank of Moldova, violating thus the Law on Financial Institutions.