● MONDAY, April 4
Foreign investors expect business climate in Moldova to be improved
The foreign investors are awaiting an improvement in the business and investment climate in Moldova. Representatives of the Foreign Investors Association (FIA) in Moldova consider legal amendments to this effect are needed. In a meeting with Deputy Prime Minister and Minister of Economy Octavian Calmac, they highlighted the urgent need for a roadmap of measures to further improve it, and emphasized the importance of resetting the relationship with the International Monetary Fund and of restoring economic stability. According to a press release of the FIA, a proposal suggested by FIA representatives was, among others, setting up a working group to create a clear body of fiscal legislation for the residents of Free Economic Zones. The Association representatives also spoke about the need for an assessment of the customs duties introduced on dairy products, as well as for certain categories of industrial goods, such as cement imported from Ukraine. As regarding dairy products, Moldova lacks the capacity to fully meet the local producers' demand for raw material. The deficit of milk on the market could lead to higher costs for the final consumers and impair Moldova’s export capacity.
Three joint stock companies, including UNIC store, privatized
The state-owned shareholdings in three joint stock companies, to the total value of 258.2 million lei, were sold at outcry auctions staged by the Public Property Agency on April 4. According to the Ministry of Economy, the 85.45% holding in the central universal store SA “UNIC” was sold for over 252 million lei, the 100% holding in SA “Aeroport Catering” – for more than 5 million lei, while the 99.385% holding in SA “Amelioratorul” – for over 982,000 lei. Under the national legislation, the buyers of state-owned shareholdings must also pay a private tax of 1% of the transaction’s value into the state budget. Thus, a sum of 260.8 million lei is to be transferred to the state budget.
Moratorium on state inspections in force
The Law on the Moratorium on State Inspections adopted on March 4 took effect on April 1. During the three-month moratorium, particualr state inspections will not be performed, including fiscal, financial, of the quality of products/services, technological parameters and of the labor protection, sanitary and anti-fire norms. The moratorium applies to both planned and unplanned inspections carried out on the spot, in offices, at the place where the activities take place or where the property of entrepreneurs is located by bodies empowered to initiate inspections based on provisions of the Law on State Control over Entrepreneurial Activities, the Tax Code, the Law on the Capital Market, the Law on the Police and other relevant documents.
● TUESDAY, April 5
Alexei Muntean: In Moldova it is easy to close a website
In the Republic of Moldova, a website can be easily closed when there is an ordinance to this effect. Furthermore, a relevant case was witnessed in Moldova in April 2009, when all the service providers barred access to the Internet without such an order and without a decision by the Supreme Court of Justice, the representative of the Concern “Starnet” Alexei Muntean said in the public debate “Real and nonexistent dangers to the basic human rights generated by the government’s intention to modify information technology regulations” that was organized by IPN News Agency and Radio Moldova. According to Alexei Muntean, the bill to amend and supplement the legislation to ensure information security and combat cybercrime is ambiguous. As regards data storage, in Moldova the state’s problems are solved with the people’s hands. “In this case, the operators are those that will bear the whole financial burden. Why do you oblige us to store tens of terabits for each user daily? Enormous investments must be made for the purpose,” he stated.
Demand for foreign currency in Transnistria at over US$10m
The demand for foreign currency in the Transnistrian region amounted to over US$10.8 million and the central bank in Tiraspol could satisfy no request from commercial banks and business entities owing to lack of supply. The Transnistrian central bank on April 5 held a new tender contest for local commercial banks and business entities, but no bid was submitted and the demand for foreign currency remained thus unsatisfied. Meanwhile, Agroprombank offered the central bank a loan of US$10 million. But the central bank’s administration refused it for the reason that this loan will help satisfy the demand for foreign currency during a day only and the situation on the currency market will not be remedied.
Development of economic diplomacy is a precondition for attracting investment, expert
The Republic of Moldova does not possess an appropriate institutional framework and capacity needed to protect its economic interests at external level, considers expert Valentin Lozovanu,. In a public debate staged by the Institute for Development and Social Initiative “Viitorul” and Radio Free Europe, he said that the development of economic diplomacy is a precondition for attracting investment. According to Valentin Lozovanu, actions were lately taken to strengthen economic diplomacy. The economic advisers working at some of Moldova’s embassies abroad were brought together at training courses. Moldova also became more active in its dialogue with the diaspora. An office was set up under the Prime Minister to attract investment.
● WEDNESDAY, April 6
Ritlabs, obtained American support in adding value to its business
Ritlabs, SRL became a member of the The American Chamber of Commerce in Moldova (AmCham Moldova) and thus gained opportunities to promote its initiatives in improving business environment. “AmCham Moldova is enthusiastic about having Ritlabs on board and looks forward to working on adding value to its business. Ritlabs expertise on tax, labor and international trade issues will also contribute, in a qualitative manner, to AmCham membership consolidated position and will thus make it stronger”, said Mila Malairău, the Executive Director of AmCham.
Moldova 99% supplied with seeds
The agricultural producers in Moldova are 99% supplied with seeds for warm-season crops. The situation is yet worse as regards the legumes, pumpkins and potatoes. The authorities explainthat this is due to the fact that most of the seed producing companies remained on the left side of the Nistru River, where there are also all the scientists in this field. Thus, Moldova imports about 60% of the vegetable and pumpkin seeds and about 80% of the potato seeds. Head of the Seeds Control Division of the National Food Safety Agency Dumitru Rusu told a news conference that there are now 625 business entities that produce, process and distribute seeds. The country is now 99% supplied with seeds for summer crops. “Regretfully, seed imports increase. For example, we produce more sunflower seeds than we need and these remain in store because the people prefer to buy imported seeds,” he stated.
“Expert-Grup”: Bank fraud will affect economic development durian many years on
The bank fraud will affect the country’s economic development during many years on, said experts of the Independent Analytical Center “Expert-Grup”. For this year, these forecast a slight economic growth of 2.5%, which is about three times lower than the level needed to keep pace with the countries of the region. In the last number of the publication MEGA issued on April 6, the experts said that this growth will not be enough for dealing with the internal macroeconomic imbalances.
According to the experts, the recovery will be fostered by the compensatory growth in agriculture, after a difficult agricultural year in 2015. Given the low comparison basis of 2015, it will be easier to obtain positive growths in 2016. Inflation will be tempered and this will positively influence the real economic growth and will motivate the National Bank of Moldova to gradually relax the monetary policy.
Kaufland plans to invest €60m in Moldova
The launch of a large-scale investment project in Moldova was discussed in a meeting of Minister of Economy Octavian Calmac and the director general of Kaufland Romania Marco Hößl. Until 2020, Kaufland intends to open six stores in the municipality of Chisinau and invest €60 million for the purpose. According to the Ministry of Economy’s press service, Octavian Calmac assured Kaufland of the Ministry’s support and spoke about the conditions offered to the foreign investors, mentioning such actions as the elimination of administrative constraints, provision of such concessions as VAT refund on long-term capital gains, and exemption from VAT and customs duties of assets that are to be included in the company’s share capital. Among the advantages, there were noted the income tax of 12% and deduction of costs for food, transport and training of employees.
● THURSDAY, April 7
Stamp required on documents of business entities could be eliminated
The initiative to remove the obligation to have a specific stamp on the contracts and other documents of business entities was reintroduced by Prime Minister Pavel Filip at the beginning of the April 6 meeting of the Cabinet. Pavel Filip instructed Minister of Justice Vladimir Cebotari to complete the procedure for preparing the bill to eliminate the given stamp in the nearest future and to present it to the Cabinet for approval so that it could be later submitted to Parliament for consideration. A similar bill was earlier rejected by the legislative body. “I’m sure that this time we will enjoy support in Parliament and this rudimentary tool will be eliminated. We live in an information era and this is definitely not an instrument for securing the contracts and other documents on which this stamp is put,” stated Pavel Filip.
“Rogob” acquired majority shareholding in UNIC store
The meat processing company FPC “Rogob” SRL obtained controlling interest in the Chisinau-based central universal store UNIC. In an outcry auction staged by the Public Property Agency on April 4, this purchased 68 174 shares in the store, which is a holding of 85.45%. The announcement was made by the company through a press release. “Rogob” director general Igor Rosca said the purchase of the majority shareholding in SA UNIC forms part of the company’s long-term investment strategy and of the business development and diversification plan.
Salaries will be soon paid by card only
The Cabinet approved a legislative initiative concerning the payment of salaries by bank cards. The bill was proposed by former minister of labor, social protection and family, now MP Valentina Buliga. At the first stage, the law will apply only to employers of companies and institutions located in towns. These will be offered a period of three months to adjust themselves to the new provisions. In the rural areas, the people will be able to get salaries both in cash and by bank cards.
Julia Otto: EBRD financed projects of over €1bn in Moldova
During its 20 years of work in Moldova, the European Bank for Reconstruction and Development (EBRD) financed 114 projects to the value of over €1.1 billion, Head of the EBRD Office in Chisinau Julia Otto said in a news conference held to mark the 25th anniversary of the foundation of the Bank, which coincides with the completion of Julia Otto’s duties in Moldova. Julia Otto said that in 2011, when she took up her duties, Moldova went through a period that was full of events and challenges. Since 2011 until now, the EBRD increased the annual volume of financing for Moldova from €60 million to €100 million. The Bank financed projects not only in Chisinau, but also in the municipality of Balti and in other regions of the country.
World Bank forecasts modest GDP growth in Moldova this year
The World Bank (WB) forecasts a GDP growth of 0.5% in Moldova in 2016. According to WB experts, the growth rate of the Moldovan economy is expected to recover during the next two years. The conclusions were presented in an event held to launch the Economic Update for Europe and Central Asia and for Moldova on April 7. World Bank Country Manager for Moldova Alexander Kremer said the economy is projected to remain subdued in 2016, with growth of 0.5 percent. Net exports are expected to be the main growth driver given the exchange rate adjustment and tighter domestic demand policies. Prolonged low remittances and higher costs of domestic financing, coupled with lack of investor confidence after the fraud in the banking system, will constrain domestic absorption.
● FRIDAY, April 8
Ukrainian travel agencies present offers at “Tourism. Leisure. Hotels” exhibit
Tourist offers for the Ukrainian seaside and for the Subcarpathian region are available at the international specialized exhibition “Tourism. Leisure. Hotels” at “Moldexpo”. The travel agencies provide both brochures about the provided services and samples of curative natural water. Adviser on economic matters at the Embassy of Ukraine in Chisinau Valery Kolomiiet has told IPN that a record number of Ukrainian companies are now present at the exhibition. “The number of tour operators that are ready to work with Moldovan tourists is increasing and the presence of Ukrainian companies at “Tourism. Leisure. Hotels” is now the greatest,” he stated.
Overdue subsidies paid to about 1 000 farmers
The overdue subsidies were paid to 1 120 agricultural producers, the Ministry of Agriculture and Food Industry has said. A sum of over 18 million lei was used for the purpose. According to a press release of the Ministry, 465 farmers got the overdue subsidies, to the total value of 6 million lei, this week. A number of 2 525 requests are yet to be satisfied.
● SATURDAY, April 9
Parliament adopts one more law on financial-banking system
A bill designed to extend the powers of the National Bank of Moldova and the National Commission for Financial Markets was adopted in the final reading in the April 8 sitting of Parliament. The law provides that the normative documents adopted by the National Bank of Moldova are not subject to juridical examination by the Ministry of Justice. Also, the National Bank, the members of its administration bodies and its personnel are not held criminally or civilly accountable for the actions that form part of the duties, except for cases when the courts of law ascertain ill will or negligence.
