● MONDAY, June 9
Amendments made to Law on Joint Stock Companies
The Government approved a number of amendments to the Law on Joint Stock Companies, adjusting its provisions to the new regulations of the Law on Capital Market. Deputy Prime Minister and Minister of Economy Valeriu Lazar said the given changes will contribute to increasing the protection of investors, balancing the rights of minority and majority shareholders and instituting clear rules for the work of joint stock companies. One of the important amendments refers to the place where the general assemblies of shareholders should be held. For the shareholders to be able to exercise their right to vote, the assemblies should take place on Moldova’s territory. The holding of the assemblies abroad is approved unanimously by the vote of shareholders. The decision to repeatedly convene the general assembly of shareholders can be taken within 10 days of the day when the date of the first meeting is set.
● TUESDAY, June 10
Surface of rehabilitated Sarateni-Soroca road expected to last for 20 years
The $112 million rehabilitation of a 93 km segment of the M2 Road (Sarateni-Soroca) is nearing completion. Many parts of the road are already open, and the whole road is expected to be open later this year. The rehabilitation of the M2 Road is part of the $262 million Millennium Challenge Corporation Compact Program sponsored by the United States of America.
Pea harvest higher than last year
The reaping of pea is underway in Moldova. Producers say they gather by 6 tonnes of peas a hectare and the harvest is higher than last year. About 20,000 hectares have been sowed with pea this year. The pea is collected by automated combines, but the recent rain hampered the harvest as the plants were downed owing to the heavy pods. When the seeds are taken out of pods, they are taken to the plants to be canned. The first peas canned this year will be available from stores in 12 days. Minister of Agriculture and Food Industry Vasile Bumacov told the journalists that the quantity of peas produced in Moldova is lower than desired. The authorities put emphasis on products with value added and make effort to promote chain production – sowing – harvesting – processing and then export.
● WEDNESDAY, June 11
Tax penalties are not proportional to damage caused, debates
Though some of the types of fines were reduced in May, when the amendments to the fiscal legislation took effect, the fines remain rather heavy for most of the economic entities, especially small businesses, Cristina Ciumac, of the Meat Producers Employers Association, said in public debates centering on the tax penalties, which were staged by the team of the National Business Agenda and the Institute for Development and Social Initiatives “Viitorul”. “The tax penalties are not proportional to the damage caused to the budget by violating the legislation. There are companies for which the fine of 10,000 lei is insignificant. But for a company with three-four employees, the imposition of a fine is equal to its disappearance,” said Cristina Ciumac.
Chisinau hosts Vienna Economic Forum
Potential investors from over 20 countries that represent foreign capital companies working in Moldova and local and central public authorities took part in the opening meeting of the Vienna Economic Forum that was held in Chisinau in the evening of June 10. VEF President Erhard Busek said that things in Moldova improve with his every arrival in Chisinau. By holding such events, they want the Europeans to understand better what kind of country Moldova is. “The VEF focuses on the attraction of long-term investments. We want Moldova, which has incomes lower than the European states, but which has potential and is developing, to benefit from the VEF activities. The solution to rapid development resides in the attraction of investments, increase in exports and enhancement of competitiveness of the Moldovan products on the European markets,” stated the European official.
Premier demands reducing number of regulations concerning business environment
“Without investments we cannot hope to modernize the economy, increase the export potential and create new attractive jobs,” Prime Minister Iurie Leanca said at the beginning of the June 11 meeting of the Government. Leanca said that he took part in the opening of the Vienna Economic Forum held in Chisinau and, in the context of the discussions and stated opinions, underlined that the major objective of attracting foreign direct investment to the economy will not be achieved if the administrative burden on the economic entities is not reduced.
● THURSDAY, June 12
Lower subsidies for insuring agricultural production risks
The Government approved amendments to the Law on Subsidized Insurance of Agricultural Production Risks, by which the state subsidy is reduced from 50% to 40% of the insurance premium. There was also set a ceiling of 700,000 lei for insuring the sugar beet and of 500,000 lei for insuring the other crops and the animals. Minister of Agriculture and Food Industry Vasile Bumacov explained that the number of applications for subsidies for insuring risks in agriculture has increased considerably over the last few years. Subsidies of 16 million lei were provided in 2010, while in 2013 the figure almost trebled, amounting to 45 million lei.
● FRIDAY, June 13
Two national roads to be repaired
In only several weeks, the national roads R1 Chisinau-Ungheni-Sculeni and R33 Hancesti-Lapusna-M1 will start to be repaired. The Ministry of Transport and Road Infrastructure signed a contract with the Azerbaijani company “Evrascon”, which won the tender contest for the rehabilitation of two road sections of 22 km and, respectively, 37 km. Minister Vasile Botnari told a news conference that there will be invested €33.7 million of the funds earmarked earlier by the European Bank for Reconstruction and Development (EBRD). The essential works on the Chisinau-Ungheni-Sculeni road include the rehabilitation and cold-in-place recycling of the road surface, reconstruction of brides and construction of small bridges, construction of collection and drainage systems and of a new road section.
AMIC puts new apartment building in commission
Modest, one or two-room apartments are now in demand on the realty market in Chisinau. That’s why the Chisinau Municipal Mortgage Agency (AMIC) has implemented mainly projects to build small homes. In the ceremony to put the building located at 101 Alba Iulia St in commission, AMIC director Petru Pripa has told that the Agency has more such projects. “We offer apartments for persons who do not have the whole sum of money. We build apartments that are small in area. Earlier, there were in demand large apartments, but now the people want smaller apartments, with bathroom, kitchen and halls larger than those built in the Soviet period. Earlier, they built large rooms and small kitchens and not all the family could sit at the table in the kitchen all together,” said Petru Pripa.
New norms concerning supervision of nonfoods market
The Government approved a bill on the supervision of the market, which stipulates clear rules for performing inspections to determine the compliance of nonfood products with the technical requirements. The market supervision activity will be coordinated by a council on consumer protection and market supervision consisting of representatives of the central public authorities, the market supervision authorities, the Customs Service, public consumer associations and professional sector associations. Inspections will be carried out to assess the risks and the proportionality of the penalties to the caused damage. Greater attention will be paid to the informing of economic entities about the responsibility they bear and of consumers about their rights.
● SATURDAY, June 14
Bids expected in privatization round of June-July 2014
Private individuals and legal entities can submit applications to take part in the two privatization contests – an investment one and a commercial one – announced by the Public Property Agency of the Ministry of Economy within this year’s second privatization round, of June-July 2014. “The enterprises, undivided patrimonial complexes and other property included in the lists published in the Official Gazette were put up for privatization for several times. The initial selling price was reduced to practically their market price,” said Deputy Prime Minister and Minister of Economy Valeriu Lazar.
