● MONDAY, February 05

Disciplined Transnistrian taxpayers enjoy concessions

The Transnistrian administration instituted for disciplined local taxpayers a simplified eligibility mechanism for the special taxation regime intended for agricultural producers. Such an initiative was signed by the Transnistrian leader Vadim Krasnoseliski. The local press reported that the special taxation regime intended for agricultural producers was introduced in 2004 and includes the payment of a common tax that substitutes a number of taxes, such as the tax into the social funds, the land tax, the tax for maintaining the housing sector and social cultural facilities, etc. At the same time, there was extended the deadline by which the fiscal debtors and taxpayers with debts to the budgets of different levels are obliged to switchover to the general taxation regime. Earlier, the deadline was December 21. Now the agricultural producers that prefer the special taxation regime can pay the fiscal debts by the last working day of the reporting year.

NFSA initiates inspections at dairy producers

The National Food Safety Agency (NFSA) commenced inspections at all the storehouses of dairy products in Moldova, banning their sale before the check. In a press release, the Agency said each imported consignment will also be verified and samples will be taken at sanitary-veterinary border checkpoints. A study initiated by East Europe Foundation and carried out in the labs of the Center for Applied Metrology and Certification shows that the milk fats in a large number of dairy products sold in Moldova, such as butter, sour cream, cheese and pressed cheese, are substituted with fats of other origins. There were analyzed 126 samples of domestic and imported dairy products. One fourth of the specimens failed the test. Under the current norms, the non-milk fats must not exceed 5% of all the fats contained in a milk product. The leading national dairy producer JLC is also a leader by the number of samples where the fats of vegetable origin exceeded the norm - in the “domestic” cow cheese by 6% (95.8%), while in granulated cow cheese “Faguras” – 5% (93.2%). In the cheese “Grauncior”, the fats of foreign origin represented 89.31%, while in the product “Gingasie” – 89%.

Chisinau-Ungheni train was supplemented with two cars

As of February 5, the train running on the Chisinau-Ungheni route was supplemented with two cars. Thus, the number of seats for travellers was increased from 520 to 752, IPN reports, with reference to the Ministry of Economy and Infrastructure. The decision was taken after Minister Kiril Gaburici last week travelled by the Chisinau-Ungheni train and discussed the faced problems with passengers and employees of Moldova’s Railways. So far the train travelling on the Chisinau-Ungheni route had six cars. The train sets off daily at 5:43pm from Chisinau and arrives in Ungheni at close to 9pm. A trip costs 22 lei.

● TUESDAY, February 06

Price of gasoline goes up, while of diesel fuel decreases insignificantly

The National Agency for Energy Regulation announced the fuel price ceilings for the next two week. The price ceiling for gasoline increases by 0.15 lei, while for diesel fuel decreases by 0.03 lei. A liter of gasoline coded 95 will be sold for at most 18.62 lei, as opposed to 18.47 lei during the past two weeks. Diesel fuel will cost at most 16.48 lei a liter, in contrast to 16.51 lei now. The new fuel price ceilings will be applied in the period between February 7 and February 20. The Agency calls on those who possess information about cases when filling stations post higher prices than the ceilings to report these on the green line +373 800 10 800 or through the email address anre@anre.md.

Protesters demand lower natural gas tariffs in front of NAER building

Members and sympathizers of the Party “Action and Solidarity” (PAS) requested the National Agency for Energy Regulation (NAER) to hasten the review of the natural gas tariffs paid by end-users. The request was made in a protest staged in front of the Agency’s head office on February 6 and was supported by a petition signed by 1,200 persons. The PAS leader Maia Sandu submitted the petition whereby the 1,200 signatories ask to hasten the review of tariffs to the NAER. The protesters made reference to energy experts’ assessments according to which the consumers have paid 1.5 billion lei extra tariffs as the import price of gas decreased, while the tariff wasn’t adjusted. Independent energy experts said there are preconditions for the gas tariffs to be decreased by 30%. Prime Minister Pavel Filip stated the tariffs could be reduced by up to 20%.

New project to develop Moldovan-Ukrainian border launched in Chisinau

The European Union will allocate €4.5 million for strengthening the integrated management of the Moldovan-Ukrainian border, in particular the Palanca (– Maiaki-Udobnoe) checkpoint that is located on Moldova’s territory and the Reni (– Giurgiulesti) checkpoint that is situated in Ukraine. The project, with a total budget of €5.6 million, will be managed by the International Organization for Migration, in cooperation with the European Union, and will be carried out by the Border Police and the Customs Service of the Republic of Moldova, in close cooperation with the similar bodies of Ukraine and EUBAM.

Bus and minibus tickets to be available through electronic payment terminals

As of February 15, tickets to travel by buses and minibuses could be also bought through the electronic payment terminals QIWI. The state-run company “Road Transport Terminals and Stations” signed an agreement to this effect with the administration of QIWI. According to the Ministry of Economy and Infrastructure, the service will become accessible for regular international and interurban routes on February 15 and for local and district routes on March 15. The traveller will pay only the cost of the trip and no commission or additional taxes will be charged. Now the tickets are available from the company’s ticket offices and the website autogara.md.

National Bank forecasts inflation of 3.7% for this year

The National Bank of Moldova projected an inflation rate of 3.7% for 2018 and of 4.7% for 2019. According to the report on inflation presented by National Bank vice governor Vladimir Munteanu on February 6, the annual rate of inflation in December 2017 was at 7.3%, down 0.2 percentage points (p.p) compared with the Bank’s forecast. In the first half of this year, inflation will decline, but will rise again in the second half and will come close to 4.7% in 2019, not far from the National Bank’s target inflation of 5%, plus minus 1.5 p.p. According to the vice governor, the banks possess large volumes of liquidity. He also said that the average interest rate on loans is of 9.8%, at some banks even lower. This stimulated lending. The volume of new loans in lei last year rose by 0.3% after declining for two years.

● WEDNESDAY, February 07

Bureau for Diaspora Relations signs contract with “Paynet service”

The Bureau for Diaspora Relations has signed a contract with the nonbanking company “Paynet service”, which provides payment and electronic money issuing services. The company’s services will help Moldovans who are abroad to pay online for goods and services from the Republic of Moldova. Payments can be also made in favor of private individuals who use electronic wallets or “Paynet service” accounts. The contract stipulates that “Paynet service” will provide the Bureau for Diaspora Relations with information about its activity and will offer the necessary consultancy, while the Bureau will present this information at events that will involve representatives of the Moldovan diaspora.

Penalties for delays in paying property tax

As many as 213 persons paid penalties for delays in paying the property tax for last year by December 31, 2017. The deadline was December 25. The State Tax Service said the penalty for delay was 0.0384% of the property’s value for each day of delay.On January 31 this year, the number of those who paid the property tax stood at 1 865, out of the 2 287 persons who must pay this tax. The collected sum exceeded 35,000 lei, representing 80.7% of the sum calculated for 2017, which was 43,000 lei. Respectively, 422 persons have outstanding debts in 2018 and the calculated penalty is 0.0329% for each day of delay. In 2018, property tax will also be paid on cars assessed at 1.5 million lei and more.

Moldova to take part in “Expo Dubai 2020”

Moldova will participate in the World Exhibition “Expo Dubai 2020” that will take place in the United Arab Emirates between October 20, 2020 and April 10, 2021, IPN reports, with reference to a Government decision. The document envisions the creation of an organizational committee that will work out the plan of action and will stage national contests to choose participants in the international event. It will also determine the costs associated with the participation in the exhibition. The International Exhibitions Center “Moldexpo” was designated the national authority responsible for Moldova’s participation in “Expo Dubai 2020”. Organizers estimate that “Expo Dubai 2020” will be visited by 25 million people. Earlier Moldova took part in world exhibitions in Hanover, Shanghai and Milan.

● THURSDAY, February 08

Peter Michalko: Communication with pro-EU government and opposition has intensified

The European Union intensified its dialogue both with the pro-EU government and the pro-EU opposition and the goal of this dialogue is to better implement reforms for the benefit of the country’s people, Head of the EU Delegation to Moldova Peter Michalko stated in an interview for IPN News Agency, which centered on the results of the implementation of the Association Agreement and the Free Trade Agreement in 2017. Peter Michalko noted particular areas in which the pro-EU government managed to partially do reforms, but made it clear that greater results in this regard can be achieved through a political competition between the government and the opposition “We see positive things in the economic sphere. We see highly appreciated steps in stabilizing the banking sphere. This was the most important thing done after the banking fraud was committed. Confidence was restored on this segment, including by adopting the legislation envisioned by the Association Agenda, this being another condition for macro-financial assistance. In general, we can say that more progress is witnessed when we speak about the adoption of legislation, but we must yet see more implementation,” he stated.

Peter Michalko: Human factor will make the difference between economic and political relations

In the recent past, the relations between the European Union and the Republic of Moldova developed better at economic level rather than at political level and a part of the difference is due to the human factor. EU Ambassador to Moldova Peter Michalko formulated such an opinion in an interview for IPN News Agency, which centered on the results of the implementation of the Association Agreement and the Free Trade Agreement in 2017. “The economic integration opens up to the Republic of Moldova access to the largest market of the world, if we consider the power of the market - 500 million consumers in the European Union with big purchasing power – on condition that the same level of standards is ensured. This applies to the quality of production, which is also the general principle of access to the EU market. Instead, the Republic of Moldova has access to EU assistance for meeting these standards, which is important not only for exporting to the European Union, but also to everywhere in the world. At the same time, such a relationship, based on economic integration, is the best vising card or, if you want, invitation to investors, which can be sure they will have access to the European market if they start a business in Moldova,” stated the Head of the EU Delegation in Chisinau.

Peter Michalko: Investigation of banking fraud is main test of reform efficiency

The invetsigation of the banking fraud committed seeveral years ago is the main test for assessing the implmentation of reforms related to the fight against corruption and improvement of justice in the Republic of Moldova. Political will is yet needed to do these reforms, the Head of the EU Delegation in Chisinau Peter Michalko stated in an interview for IPN News Agency, which centered on the results of the implementation of the Association Agreement and the Free Trade Agreement in 2017. According to Peter Michalko, the restoration of trust in the financial-banking and economic sectors of the Republic of Moldova is another important thing in a broader meaning. “A state should be able to efficiently investigate corruption and should build a society where this is not welcomed and should be rooted out. The idea is also stated in the European Commission’s report of December 2017 on the fulfillment of the plan of action in the area of visa liberalization, which says it clearly that immediate steps should be taken to fight corruption and other steps should be taken to fight money laundering. And this is one of the conditions imposed by the EU for providing macro-financial assistance. So, the whole system of reforms is related to these steps, but the final goal is to eliminate corruption from society,” he stated.

Trips by train to St Petersburg and Moscow cheapened

Those who will travel by the Chisinau – St Petersburg and Chisinau – Moscow trains will pay by 11% and, respectively 12% less for tickets in the period between February 12 and March 31. The administration of the state-run company “Moldova’s Railways” said the train tickets to St. Petersburg will be by 240 lei cheaper. The trips to Moscow by train No. 47 will also cost by 240 lei less, while those by train No. 341 will be by 210 lei cheaper in the period.

Moldovan apples returned from Russia for inconsistencies in documents

Over 20 tonnes of Moldovan apples were sent back from Russia on February 7 following checks at the “Krupets” checkpoint in Kursk region. According to the Federal Service for Veterinary and Phytosanitary Surveillance of Russia, the consignment was not allowed to cross the border because the information about the importer indicated in the phytosanitary certificate didn’t correspond with the information from labels, which is a violation of the phytosanitary requirements within the borders of the Eurasian Economic Union.

Law on nonbanking lending organizations passed in final reading

Parliament adopted the law on nonbanking lending organizations in the final reading on February 8. The minimum share capital for these organizations was set at 300,000 lei. The provisions on the minimal share capital will take effect gradually. Within six months of the coming into force of the law, the share capital must be at least 100,000 lei, on January 1, 2020 – at least 200,000 lei, while on January 1, 2021 – at least 300,000 lei. The nonbanking lending organization whose assets at the end of the management period will exceed 50 million lei is obliged to perform an audit of the annual financial situations. The law takes effect on July 1, 2018.

● FRIDAY, February 09

Eleven animal farms certified as breeding ones

Eleven animal farms have been certified as breeding ones. Thus, the breeders have the right to sell breeding resources and can obtain larger revenues than any other production farm. The ceremony to hand over the certificates was held at the Ministry of Agriculture, Regional Development and Environment on February 8. “The beneficiaries of the anima breeding farms are supported through the Agriculture and Rural Development Fund. The cost of breeding animals is up to 50% covered and conditions are thus created for genetically improving the stock. The buyers can purchase breeding stock at prices that are almost identical to the prices for simple animals,” Secretary of State Alisa Pirlog stated in the ceremony.According to the Ministry of Agriculture, Regional Development and Environment, the breeding certificate offers a series of advantages to the holders, including subsidies.

Moldova’s exports to Japan at US$ 1.9bn last year

In the course of 2017, Moldova exported to Japan goods to the value of US$1.9 billion, an increase of 32% on 2016, IPN reports, with reference to a press release of the Customs Service.The importance of intensifying cooperation between the customs organizations of Moldova and Japan, especially by increasing exports to the Japanese market, was underlined in a meeting of the Customs Service director general Vitalie Vrabie and Japan’s Ambassador in Chisinau Masanobu Yoshii. The cooperation envisions the provision of mutual assistance in correctly implementing the customs legislation, in preventing, investigating and fighting customs frauds and in ensuring the security of the international supply chain.

Salary tax revenues 14% higher

The changes made to the legislation and the measures taken to fight the underground economy led to a rise of almost 14% on 2016 in the amounts collected into the national public budget as salary tax revenues. The amounts came to over 3.5 billion lei. According to the National Confederation of Trade Unions, the highest rise in revenues, of over 18%, was recorded in the state social insurance budget. The Confederation said the good results are also due to trade unions’ demands to review the size of the minimum guaranteed salary in the real sector. In April 2017, the Government increased the minimum guaranteed salary in the real sector to 2 380 lei, calculated for a complete working program of 169 hours on average.

Milk products containing vegetable fats could be named non-dairy products

The National Food Safety Agency suggested amending a Government decision so that the products containing vegetable fats could no longer be named dairy products. In a move to make the dairy producers more responsible in terms of quality, the Agency proposes that the penalties for business entities that will sell falsified products should be made harsher. Last weekend, the media outlets disseminated the results of a study showing that national and imported dairy products, such as butter, sour cream, cheese and pressed cheese, contain much more non-milk fats than the admissible level of 5%. In some of these, the level of vegetable fats stood at even 95.8%.

● SATURDAY, February 10

Waste collection vehicle for Vulcanesti district

The administration of Vulcanesti district came into possession of a garbage truck and 147 cans for solid waste. These were purchased within the project “Optimization of the solid waste management system in Vulcanesti district” that was financed by the National Regional Development Fund. The cost of the project was of 9.5 million lei. The project in Vulcanesti district was implemented in compliance with the waste management strategy for 2013-2027. This envisions the creation of eight waste management zones in Moldova. Each zone will be outfitted with a complete waste collection system, transfer and sorting facilities, etc. The feasibility study for Zone 1, which includes Vulcanesti and Ceadir-Lunga districts, was carried out and approved with the assistance of the German Agency for International Cooperation (GIZ).

Salary tax revenues increased due to higher pays, expert

The almost 14% in the salary tax revenues in the 2017 national public budget compared with 2016 is due to the about 11% rise in salaries. Requested by IPN to explain such a trend, Corina Gaibu, expert of the Institute for Development and Social Initiative “Viitorul”, said the nominal salary in 2017 rose at almost the same pace as the salary tax revenues did. It is normal for the revenues from income and other taxes related to pays to increase when the nominal salaries grow. “The average salary was about 5,800 lei and in 2016 it was by 11% lower. Normally, if the salary fund in 2017 increased, the taxes paid from this fund were higher,” stated Corina Gaibu.

Presidential office is one of the least financially transparent institutions, study

The presidential office of the Republic of Moldova is among the institutions that are the least transparent from financial viewpoint, shows a study by the Independent Analytical Center “Expert-Grup”. According to experts, the way in which records of the budget resources intended for the given institution are kept does not enable to cover all the costs related to its activity and thus to objectively, transparently and effectively report on the use of funds. According to “Expert-Grup”, starting with 2008 the costs for the presidential staff have slightly diminished, but are planned for be somewhat increased in 2018. In 2017, the costs associated with the presidential office increased by 10%, mainly as regards the services, in particular trips abroad, transport, protocol and printing services. The costs related to the residencies in Condrita and Holercani, guard and others are shown only partially. On the website of the President of the Republic of Moldova, there is no information about the procurement process. The President’s progress report does not show a connection between activities and costs and the results achieved in his work.