● MONDAY, February 10
One quarter of Tax Inspectorate employees replaced
Important changes took place at the Main State Tax Inspectorate. During several days, there were replaced 45 employees. By rotation, a number of employees were transferred to other subdivisions of the Inspectorate. Their posts were taken up by persons who showed high qualifications and efficient tax administration abilities, including at the local offices. The changes affected about one fourth of the Inspectorate’s employees, director Ion Prisacaru said in a press briefing. “At the Anti-Fraud Division for example, 70% of the personnel were substituted. Similar changes were made in all the other divisions and sections,” said Ion Prisacaru. The Chisinau State Tax Inspectorate also underwent such changes. Special emphasis was put on the strengthening of the local tax administration bodies with increased tax evasion risks such as those in Drochia, Dubasari and Balti.
Compact facilitates farmers’ access to funding
The recent amendments to the Compact Credit Facility that aims to facilitate the farmers’ access to funding for investments in the post-harvest infrastructure and high-value agriculture enable the agricultural producers to expand their investments in the agri-industrial sector. According to the new provisions, entrepreneurs may apply for loans for construction or procurement of greenhouses for vegetables, procurement of equipment and/or associated land and new irrigation equipment and weather stations. The investments in new plantations of fruits, berries, grape or nurseries of fruit trees, table grape and berries have also become eligible for the Compact loans. On the other hand, the minimum loan amount has been cut from US$20 000 to US$ 5 000, while the maximum amount has remained US$600 000 and the loan term is from 3 to 7 years. The loans are meant for agricultural producers and businesses operating in the agri-food sector, such as peasant farms, individual farmers, micro, small and medium companies producing, processing or selling agricultural products, farmers’ associations, business cooperatives, partnerships etc.
● TUESDAY, February 11
Iurie Leanca says Moldovan wines will be promoted
Prime Minister Iurie Leanca assured winemakers that the Moldovan wines will be promoted on new markets and they will return to the Russian market in a meeting with a group of producers. According to a communiqué from the Government’s press service, Iurie Leanca said the Government will make everything possible for the Moldovan wines to penetrate new markets such as the Netherlands, the United States, China and India. The Premier also said that he discussed the wine problem with his Russian counterpart Dmitry Medvedev in an informal meeting held during the inauguration of the Sochi Olympics. He didn’t specify whether the discussions produced results, stating that the atmosphere of informal discussions often contributes to the clarification of issues.
Bills and invoices can be submitted online from today
A new electronic service was laucnhed on February 11. The e-Invoice service allows companies to issue and send bills or invoices without having to go to the State Tax Service headquarters. The electronic service e-Invoice is to be launched in three steps: first step – pilot, for a period of to six months, within which the service is to be tested with a limited number of economic entities. At the end of this stage, soft adjustments shall be done, if necessary. The second step - experimental area, to be launched under testing regime of the program for all the economic entities, starting from June 2014. The final step - the industrial launch, relates to the nationwide E-invoice service use, starting from January 2015. Attending the launch ceremony, Prime Minister Iurie Leanca said the provision of public services in electronic format is an important element in the elimination of corruption risks and in the process of integrating the Moldovan people and businesses into the European community.
New privatization round to be announced in spring
A new privatization round will be announced in spring. This year, emphasis will be put on small assets to the value of US$2-4 million, said Deputy Prime Minister and Minister of Economy Valeriu Lazar. In a news conference, Valeriu Lazar said that in an electoral year the foreign strategic investors, whom Moldova has waited for many years to invest in such large companies as Moldtelecom, the power distribution networks REDs and AIR Moldova airline, usually prefer to delay the investment decisions until more stable periods. In accordance with the budget law, revenues of 250 million lei are to be collected from privatization this year.
● WEDNESDAY, February 12
Negotiations with IMF continue
The negotiations with the International Monetary Fund (IMF) go on, Deputy Prime Minister and Minister of Economy Valeriu Lazar announced. According to him, there are no disagreements between the Government and the IMF. They agreed all the discussed subjects with the IMF mission that came to Chisinau two weeks ago. The IMF shares the forecasts of the official Chisinau as regards the economic growth of 4-5% for this and the next years, said Valeriu Lazar. According to the official, an active program with the IMF is a positive signal for those that want to invest in the national economy. Besides, we need the expertise and consultancy of the IMF. As regards the financing from the IMF, this fact is not so important for Moldova as the money from the IMF is directed to the National Bank, which now has enough foreign exchange reserves, of over US$2,8 billion.
Economy Ministry’s forecasts for 2014-2017
The Ministry of Economy projects that the GDP in 2014-2017 will rise by 4.5% an average, with structural improvements. Exports in the period will grow by 8.5% a year, while imports by 7.2%. The nominal average salary in the economy will increase by 31.5% to 5,525 lei in 2017, while labor productivity will be by 4.4% higher. As to 2013, Deputy Prime Minister and Minister of Economy Valeriu Lazar said last year saw one of the most spectacular economic growths in the region. In the fist nine months of last year, the GDP grew by 8% on the corresponding period a year before. He also said that the economic policies pursued over the last few years and some of the structural reforms under implementation created preconditions for an economic growth that had a certain impact on people’s lives. The real average salary last year rose by 2.5%, while the disposable incomes of the population – by 3.6%.
Compact budget for this year exceeds US$100m
The Steering Committee of MCA Moldova approved the Compact implementation action plan and its budget amounting to about US$113 million for 2014. A significant part of this amount - around US$60 million will be used to complete the construction works on the 93 km Sarateni-Soroca road segment. The construction works left to be done, including the rehabilitation of local roads to facilitate the access to social facilities, such as schools, hospitals etc. are expected to be completed by July 2014. According to a press release from MCA Moldova, about US$38 million will be used to rehabilitate irrigation systems, as the construction works at the Criuleni and Lopatna irrigation systems will be resumed and the construction works at other eight irrigation systems are expected to start this spring. The approved budget covers funds for the Post-Harvest Credit Facility, Irrigation Sector Reform Activity, Compact monitoring and evaluation and other components.
Government to review provisions of budgetary-fiscal policy for this year
The executive next week will return to a number of provisions of the 2014 budgetary-fiscal policy in order to analyze the discrepancies that appeared after it was adopted by Parliament. One of them concerns the diminution of excise duties on luxury vehicles, Prime Minister Iurie Leanca said in the opening of the February 12 meeting of the Government. “The budgetary-fiscal policy was adopted by Parliament, but discrepancies appeared and we should examine the state of affairs. The submitted proposals will be discussed in the next meeting, when we will draw conclusions,” said the Premier.
● THURSDAY, February 13
Economy policy priorities announced
This year the Ministry of Economy will focus on implementing documents of strategic planning approved in 2013, said Minister Valeriu Lazar on Wednesday while announcing priorities for 2014. Among them, the minister highlighted the implementation of the Competitiveness Enhancement Roadmap, of the Innovation Strategy and the Regulatory Reform Strategy, Particular attention will be given to extending programs to support small and mid-sized enterprises and the network of industrial parks and to attract investment, in particular in production. “We won't develop any other strategic documents. Maybe with the exception of the updated draft Investment Strategy.
Government approves regulation on farm subsidies
The farmers willing to plant cherry, apricot, plum or peach orchards will be entitled to subventions of 20,000 to 30,000 lei per hectare, and the subsidy for a hectare of a newly-created berry farm will be 50,000 lei, under the 2014 Regulation on Farm Subsidies, which was approved by the Government Wednesday. Under the Regulation, the subsidy for removing multi-annual plantations rose from 3,000 to 5000 lei per hectare. In a move to further stimulate investment in greenhouse agriculture, subsidies rose to 60% for individual farmers and to 70% for groups of farmers. To stimulate irrigation agriculture, the Government rose specific subsidies by up to 50%. The animal farms looking to buy and upgrade equipment will enjoy a subsidy of up to 60% of the investment's worth in the case of cattle farms and of up to 50% in the case of sheep farms. This year, fish farms will benefit from subsidies too. For the packaging facilities located in rural areas, the subsidies' worth rose to 50%, and the upper limit rose from 2.5 million to 4.5 million lei.
Home appliances to have energy labels
Home appliances will be required to display labels containing power usage information, under a bill adopted today upon first reading. Deputy Economy Minister Tudor Copaci said the measure aims to contribute to a more effective use of electrical appliances. Displaying of standard information on energy consumption will be a requirement for manufacturers, importers, suppliers and retailers. The costs of labeling will fall on the manufacturer.The Agency for Consumer Protection will periodically conduct inspections to check compliance with the labeling requirements. In case of violations, the culprit companies will have to comply within 5 work days or face sanctions.
● FRIDAY, February 14
New funding instrument for winemakers to be launched soon
The Vine-growing and Wine-making Sector Restructuring Program will soon launch a new instrument to support winemakers through leasing arrangements. Agriculture and Food Industry Minister Vasile Bumacov said the leasing scheme will improve access to financing, including for smaller enterprises, as procedures are simpler than in the case of loans. Moreover, interest rates are more attractive, and the security deposits are lower. The Program's Implementation and Monitoring Consolidated Unit is now working on the leasing procedures, which will be subject to approval by the European Investment Bank (EIB) and the Program's supervisory board.
Government approves concept of public service infrastructure register
An automatized information system called the Register of Public Service Infrastructure ROITE is to be introduced by 2015, after the Government on Thursday approved a concept paper and an action plan to set it up. ROITE will include information on roads, railroads, airports and ports, electric and heat transmission systems, water supply and sewer systems, waste disposal systems, etc. The Register will provide a unified methodological base offering updated information to the local authorities to help them with town and land planning.
● SATURDAY, February 15
National Bank governor guarantees national currency stabilit
The governor of the National Bank Dorin Dragutanu is optimistic about the stability of the Moldovan leu and sees nothing to worry about the recent devaluation of the national currency. He spoke on this topic at Publika TV's Fabrika talk-show on Friday. According to the governor's forecast, the devaluation process should inverse if no barriers such as export restrictions appear in the near future. “The situation is under control and BNM has sufficient currency reserves to intervene, but this is not opportune right now”, said Dragutanu. The governor even sees possible benefits in the devaluation of the leu, such as increased economic activity and higher competitiveness for domestic products. Dorin Dragutanu also spoke about an illegal scheme to overtake controlling stakes in commercial banks, carried out by a group of “crooks”. According to him, the “crooks” sidestepped the law restricting the purchase of stakes over 5% without the agreement of the National Bank by creating several companies to buy stakes under 5% and then merging the new stakeholders.
