| Moldova's Brief Major Financial-economic News Of The Year Of 2005 |
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__TOC__ JANUARY National Bank registers positive dynamics in the development of Moldova’s banking system over 11 months of 2004. Russian gas supplies to Moldova in 2005 will come up to 3.15 bn. M3. This figure is 50 m3 or 1.6% more than the 2004 target. According to Government Securities (GS) sale results in 2004 Ministry of Finance of Moldova transferred 199.8 mil lei ($16.04 mil) to finance state budget deficit 2004 budget in Moldova executed at 101.6%. Cumulative inflation rate in Moldova in 2004 was 12.5%. Consolidated budget of 2004 executed at 102.8%. the consolidated budget reached MDL 7.521 bn., 13.6% (over MDL 900 million) more than in 2003. In 2004 the growth of receipts from taxes services turned out to be more sizable than those from customs: 25.7% (MDL 825 mil.) and 18.1% (MDL 683 mil.). Average weighted yield on Government securities (GS) in 2004 is 11.96% annually. In 2003 average weighted yield on all types of GS was 15.10% annually, and 5.75% in 2002. In December yield on GS as compared to November fell on average by 1.8 percentage point to 7.90% annually. Total volume of GS in circulation in 2004 amounted to MDL 1449.98 million ($116 mil.). This figure over the year increased by MDL 192.38 mil. As of 1 January 2004 securities trading at the allotment auctions are estimated at MDL 1041.97 million ($83.34 mil) or 71.9% of all securities in circulation. In the first year of full liberalization of the telecommunication and informatics services market the number of participants increased by 40% to 646 operators. In 2004 the consolidated budget of Chisinau municipality received MDL 2.7 bn. ($216 mil.), 26.7% above the 2003 figures and 5.8% above the target. In 2004 Moldova’s agricultural output reached MDL 930.2 mil. ($746.4 mil.), 23.4% above the 2003 figure. Voxtel’s commodity turnover in 2004 topped MDL MDL 612 million ($49.3 mil.), up 62% from the previous year. National Procurement Agency made subordinate to government. “Government made decisions aimed to encourage investment in the country’s energy sector” said Energy Minister Iacob Timciuc. Shareholders Union Fenosa group in Moldova accepted voluntary resignation of the group’s president Ignassio Ibarra who’s held this post for five years . In 2004 the number of imported cars in Moldova doubled compared to 2003, reaching 3173 cars. In 2004 prices for residential real estate in Chisinau rose 40%. Investments in Chisinau in 2004 totaled MDL 2.3 billion ($184 mil.), up 0.84 billion (36.5%) from 2003. Danish company "Danfost" intends to build waste disposal facilities in Chisinau to the amount of MDL 50 mil. ($4 mil.). Moldova is among first ten countries of the world that achieved most significant results in reform of business activity system in 2004. In 2004 the Ministry of Economics implemented economic development targets at 98%. In 2004 funds reinvested by foreign companies amounted to $50 mil. Austrian organization «Central & Eastern European Musictheater» (CEEMT) plans in 2005 to provide approx. EUR 100 thousand to the National opera and ballet theater. Currency reserves of the National Bank of Moldova as of end of December 2004 reached $470.23 mil. As of 31 December 2004 government debt to National Bank of Moldova amounted to 2738.0 mln lei ($219.8 mln). In 2004 primary dealers bought government securities (GS) to amount of MDL 3731.6 mil. ($299 mil.), up 47.4% or MDL 1007.5 mil. from 2003. In 2004 capital investments of the building industry in Moldova’s budget rose 8% compared to previous year to MDL 5 bn. (over $400 mil.). Issues by joint stock companies registered by the National Securities Commission (NSC) in 2004 amounted to MDL 1.65 bn. ($132 mil.). A new power plant with capacity of 2 MWt was built in Chisinau by Energy Investment Group (EIG). In 2004 the biggest confectionery Bucuria produced 8492 tons of products to the total amount of MDL 250.5 million ($20.1 mil.). “Doubled budgets from 2001 to 2004 for countries of our region is an unprecedented achievement”, said President Vladimir Voronin. A Single unemployment information system to be established in Moldova, to fund which 3 million lei (over $240 thousand) are planned to be provided from the state social insurance budget . Daniela Wendhaus appointed as the new General Manager of ProCredit S.A. Government approved Regulations for the preparation process of converting debt of companies into shares. In 2004 foundation of the securities market will be laid for development and capitalization in coming years. Deals on the capital market of Moldova in 2004 amounted to MDL 811.8 mil., down 1.7% from 2003 (MDL 826 mil.). Receipts of Railway of Moldova (RWM) in 2004 amounted to 5 million lei, 93% below the target (MDL 75 mil.). Revenues of the consolidated budget in 2004 reached MDL 7.5 bn. ($600 mil.), 2.8% more than the planned figure, and up 13.6 % from 2003. President Vladimir Voronin recognized as “Man of 2004”. The World Bank (WB) adopted a new strategy of assistance to Moldova for 2005-2008 with providing $137 million to this country. Ukraine / The new management of the National Bank of Ukraine liquidated the public relations administration and closed down its web page. To implement WB projects in Moldova in 2004, the bank provided 36% ($52.8 mil.) of the planned $146.2 mil., 3388 thousand people live in Moldova (Trasdniestria not taken into account) According to the preliminary results of the census that took place in October 2004, of the total number 52% (1756 thous.) are women, 48% (1632 thous.) are men. Seven municipalities and rayons in Moldova have over 100 thousand population. According to the preliminary results of the census, there are 716,53 thousand people in Chisinau municipality (46,9% are men and 53,1% are women );. In 2004 return on of assets and capital in the banking system of Moldova fell by 0.59 and 1.59 points, respectively. Prices for real estate in Chisinau in 2004 grew by 40% compared to 2003, with average price of $490 for 1 m 2. In 2004 real estate exchange LARA preformed approx. 26.1 thous. real estate deals, up 11% from 2003. World Bank (WB) raised Moldova’s rating from 3.3 in 2003 to 3.5 in 2004, Prices for commercial real estate in Chisinau in 2004 rose by 8-12% compared to 2003, reaching $90-400 per m2. Production at the biggest clothing factory «Ionel» in 2004 г amounted to 96,5 million lei ($7,78 mil.), up 9,4 % from 2003. Production in footwear producing factory «Zorile» in 2004 grew by 34% compared to 2003, reaching 52,3 million lei ($4,2 mil.). Consumer crediting in Moldova in 2004 grew as compared to 2003 by 65.8% to MDL 273 million ($21.9 mil.). National Bank of Moldova lifted a restriction on yield on NBM certificates. Sales of wines and wine materials in bulk (including exports) tend to fall and sales of bottled wine tend to rise. Ukraine toughened transit requirements for foods going to Transdniestria. GDP growth in Moldova in 2004 is estimated at 7.3%. Moldova ranked 89 in private sector crediting. Exports of farm produce from Moldova in 2004 rose by 8.4% to $572.5 mil. FEBRUARY The first objects of the Northern Bus Station have been put in commission February 1 2005 . The amount of funds to be allocated in 2005 for financing science and innovations from the state budget will increase 40 percent against the year of 2004 and will total over 113.6 mln. lei ($9.1 mln.). Revenues in the state budget in January 2005 grew 58.4% compared to the same period last year, reaching MDL 384.5 million ($30.8 mil.). According to results of January 2005, the Ministry of Finance of Moldova used 8.6 mln. lei ($0.69 mln.) from the sale of public securities for financing the state budget deficit. The amount of the average monthly wage in Moldova in 2004 totaled 1103.8 lei ($89). The number of foreign tourists who visited Moldova in 2004 increased 9 percent against the year of 2003 and totaled 26.5 thousand people. Average weighted yield on Government securities (GS) in January 2005 was 6.76% annually. The share of data transfer and Internet access services reached 7.2% of Moldova’s GDP in 2004. Total investment in fixed assets in 2004 in Moldova rose by 8% compared to 2003, reaching more than MDL 5 bn. ($403 mil.). In 2004, enterprises of the railway, motor, river and air transport carried about 16.5 bln. tones of freight, what is 4.9% less than in 2003. The agricultural production output volume increased 20.4 percent in 2004 in comparison with the year of 2003 and totaled 12.6 bln. lei (over $1 bln.). The largest shareholding of the Victroiabank, one of the largest financial institutions of Moldova has been sold Friday. The License Chamber withdrew licenses from 13 insurance companies with authorized capital below required 2 million lei ($160 thous.). The USA has provided Moldova with $1.7 mln. for holding free and fair elections. Moldova has the lowest video production piracy level in the CIS. One of the lowest GDP growth rates indicators among the CIS countries – 7.3 percent, was registered in Moldova. The number of registered economic subjects increased 22.2 percent in 2004 in comparison with the year of 2003 and totaled 7.03 thousand. The United Nations Development Program has provided $35 thousand to the Tourism Development Department for the technique of the tourism industry specialists perfection Center. 111 thousand tones of sugar were produced in Moldova in 2004, 33.7 percent more than in the year of 2003 (83 thousand tones). The change of the holder of 23.02 percent of stocks of the “Victoriabank” has taken place. According to the rules of the Moldova Stock Exchange and of the National Securities Depository, final calculations were effected Wednesday and the stocks were transferred to the ownership of four companies: “Program Invest” Ltd (Moldova); “Repcor-Com” Ltd (Moldova); “Victoria Invest” Limited (Great Britain), “Atrium” Limited (Great Britain). Each of them holds 5.76 percent of Victoriabank’s shares. As it has been reported earlier, the total amount of the transaction totaled 55.23 mln. lei ($4.43 mln.). The shares were sold by the investment fund “Danube Fund Ltd” (Cyprus). The number of the fixed communication subscribers in Moldova went up 9.5 percent (by 73.5 thousand) to reach 849.9 thousand in 2004. The Moldovan production export volumes in 2004 totaled $986.3 mln., 24.8 percent more than in 2003. The NBM Administrative Board has cut the refinancing rate by 1.5 percentage points – to 13% p.a. The economic growth in Moldova resulted from the economic growth in the region and money orders of citizens working abroad. The volume of import to Moldova increased 26.5 percent in 2004 in comparison with the year of 2003 and totaled $1774.2 mln. The World Bank will provide $10 mln. for construction of boiler-houses for Moldova’s social institutions by the end of 2008. The number of mobile communication subscribers in Moldova increased 67.6 percent – from 470 thousand to 787 thousand, in 2004. This year Italy will provide 2 thousand work places for Moldovan citizens, what is 33 percent more than in 2004. The project of reduction of accumulation of the long-continued decay pollution products worth $8.7 mln. is to be realized in Moldova. The number of mobile communication subscribers in Moldova increased 67.6 percent – from 470 thousand to 787 thousand, in 2004. Commercial banks of Moldova cut the rates on credits and deposits by 1.5-2 percentage points. Bankcard holders effected 5.15 mln. operations in the total amount of 2.87 bln. lei ($230 mln.) in 2004; it is 67.8 percent more than in 2003. According to the National Bank of Moldova’s data, 340.2 thousand bankcards were in circulation as of the beginning of 2005 in Moldova, what is 34 percent more against the data as of the beginning of 2004. The National Bank marks the on the whole positive bank sector development tendency in Moldova in 2004. The NBM’s press release reads that the first level capital in the system increased 20.3 percent against the 19.7% growth in 2003 and according to data as of December 31 2004 totaled 2442 mln. lei ($195.4 mln.). Moldova is among five CIS states that are in the lead as to the industrial production growth rates in 2004. The whole leadership of the state-run airline “Air Moldova” has resigned. Early this week, the airline’s international partners received a letter reading that Dorin Timciuc, the Director General; Alexandr Crigan, the chief financial officer; Radu Bezniuc, the marketing and sales director, Marianna Gandiuc, the international relations director; Sergey Budu, the inter-settlement manager; “are leaving the airline due to the approaching reorganization” that will take several months. The Parliament has dismissed two members of the National Securities Commission. 26 thousand foreign tourists used Moldovan travel agencies’ services in 2004, what is 10.4% more than in 2003. Russia may refuse the Moldovan alcohol and tobacco production import, introduce the visa order for Moldovan citizens and pass to the energy carriers supply at the world prices. The Parliament has confirmed the Court of Accounts new members’ appointment. MARCH The European Union will provide 42 mln. euro to Moldova in 2005 for fulfilling clauses of the three-year Moldova-European Union Actions Plan signed on February 22 in Brussels. From May 1 till October 31 2005 Moldova will preside in the Black See Economic Cooperation Organization (BSECO). The joint Strategy of the Government and the National Bank on Moldova’s financial sector development in 2005-2010 has come into force 60 Chisinau businessmen were awarded with the “Businessman of the year of 2004” title. “Unibank” has reported the advanced repayment of the $4 mln. credit to its shareholder – the Russian bank “Petrocommerts”, in February 2005. The new leadership of the state-run airline “Air Moldova” has been appointed. Vasile Botnari was appointed Director General. The net profit of the “Efes Vitanta Moldova Brewery” according to results of the year of 2004 totaled 75.1 mln. lei ($6 mln.) The first credit guarantee fund – the Inter-bank Guarantee Company (IGC) “GarantInvest”, has been registered in Moldova. The annual contest “The best small business entrepreneur” will be carried out in Moldova. President Vladimir Voronin rules out the possibility of the energy crisis in Moldova in case Russia takes sanctions against it. No electoral candidate used the right to receive interest-free credit from the state for organizing the election campaign. 11 mln. lei ($880 thousand) have been allocated for organizing and holding parliamentary elections in Moldova. Parliamentary elections were completed in Moldova. According to the CEC’s data, 63.71% of electors took part in the voting. After processing of 100% of voting papers, the CEC announced final results of the elections. Three electoral candidates gained seats in the Parliament: the Party of Communists of the Republic of Moldova (PCRM) that won 46.1% of votes, it receives 55 deputy mandates; the Democratic Moldova Bloc (DMB) that won 29.41% of votes, it receives 35 mandates; the Christian-Democratic People’s Party (CDPP) that won 9.7% of votes, it receives 11 mandates. Under the Code on Elections, the CEC is to submit the voting results to the Constitutional Court that will give the conclusion on whether the elections met the law within 10 days. Parliament chooses the president, and 61 votes are needed. The USA have provided Moldova with aid connected with the elections in the amount of about $1.7 mln. The inflation rate in Moldova in February 2005 amounted to 2.1%, one percentage point more than in January 2005 (1.1%). The volume of petrol import to Moldova increased 19.3 percent in 2004 compared to the previous year and totaled 241.8 thousand tones. The number of Internet users in Moldova increased 56 percent (by 162 thousand) in 2004 and totaled 450 thousand as of the beginning of 2005. The volume of public purchases of goods, works and services in 2004 totaled 2117.3 mln. lei ($170 mln.), what is 617 mln. or 41.1% more than in 2003. The volume of investments in the telecommunications and informatics market increased 30.1 percent in 2004 compared to the year of 2003 and reached 825.3 mln. lei ($65.4 mln.). The National Bank has changed criteria of evaluation of primary public securities market dealers’ activity and some conditions of T-bills purchase by banks. Following results of activity in 2004, the net profit of the “Apa-Canal Chisinau” JSC totaled 8.41 mln. lei ($672.72 thousand). Parliamentary elections’ results have been approved. On Thursday, the Constitutional Court (CC) approved results of the parliamentary elections held 2005 . The National Bank of Moldova’s monetary reserves as of the end of February 2005 totaled $461.08 mln. The expert team for developing and improving the legislative base for the Credit bureaus’ activity will be set up in Moldova The volume of Russian investments in Moldova’s economy in the period of 1994-2003 totaled $158.2 mln. or 24.9% of the total investment volume. The cost of fix telephony market totaled 1,547,00 lei ($123,800) in 2004, i.e. 30% more compared to the year of 2003. Natural persons will be subject to reduced tax rates in the year of 2005. In January – February 2005, the average salary in the national economy totaled 1,126.6 lei ($89.4), having increased by 19% compared to the same period of the last year. At the first sitting of March 24 , the Moldovan parliament split up, elected Speaker, set date for presidential elections and accepted the resignation of the cabinet. The Administrative Board of the NBM kept the refinancing rate at 13% annual. Maria Postoico was elected First Vice Speaker of RM Parliament. APRIL Vladimir Voronin has been elected today for the post of the RM President. At Monday’s special sitting of the Parliament 75 parliamentarians have voted for his candidature. According to the results on the sale of the State Securities for the first quarter of 2005 the RM Ministry of Finance earmarked 39.9 million lei ($3.14 million) for covering the deficit of the State Budget The receipts to the RM consolidate Budget for the I quarter of 2005 constituted 2873,2 million lei ($228 million), that exceeds the target by 2,4% The volume of the premiums, collected by the Moldovan insurance Companies in 2004 exceeded that of 2003 by 30,7%, or by 89 million lei and constituted 378,9 million lei ($30,1 million). The General Meeting of the «Moldinconbank» shareholders has taken a decision to pay out dividends on the results 2004 in the amount of 22% on ordinary shares; 26,4% - on privileged voting shares; 40% - on privileged voiceless shared. Iurie Rosca has been elected the Second Speaker 77 Parliamentarians have voted for his candidature and 6 – against him. During five years the «ProCredit Moldova» Company has given more than 16.5 thous. credits at the total amount of more than $45 million. «The world is threatened by a long-term oil crisis and must be ready that the oil prices will be high during a long period» - the IMF warns. As of January 2005 the size of the average pension in Moldova was increased by 120 lei or by 56%, compared with 2004, and constituted 336 lei. In 2004, compared with 2003 the Budget receipts of the National Insurance Office (NIO) were increased by 500 million lei (by 20,7%) and constituted 2919 million lei ($233.5 million). The Review «Global Finance» designated the «Victoriabank» as the winner in the nomination «the Best Bank of the Developing countries» in 2005 in Moldova. The economic growth in Moldova for the years 2005-2006 will be lower than that reached for the two last years. Serafim Urechean has gone out of office of the Chisinau Mayor and will be the Leader of the Parliamentary faction “Our Moldova” Vice-Mayor Mikail Furtuna has been appointed to be Acting Chisinau Mayor. The Moldovan Parliament approved the composition and programmed of the new Government of Moldova: "Modernization of the country - wellbeing of people". The minimum of subsistence in 2004 constituted 679.9 lei (about $55 a month) that is by 8.2% more, compared with 2003. The RM government has approved the RM-EU Action Plan. The Labor Inspectorate will have the right to fine the unscrupulous employers. The new Ministry of Industry and Infrastructure inluded the Ministry of Power Engineering, the Ministry of Industry and the Department of Construction and Territorial Development in its composition. Ion Sturza has been appointed the Vice-President of the «Rompetrol» group. The Presidents of Moldova, Ukraine, Azerbaidjan and Georgia have signed a joint Declaration «For the Sake of Democracy, Stability and Development». The foreign currency reserves of the National Bank of Moldova constitute $461.25 million as of the end of March, 2005. MAY The National Bank of Moldova (NBM) cannot change the non-monetary factors, which influence the inflation growth. The Economic Court of Appeal (ECA) has taken a decision on the liquidation of the Branch Office of the Latvian Bank «Rietumu Banka», From 2007 the income tax rate for the juridical persons will constitute 15%. In March 2005 the volume of money in circulation constituted 3.65 billion lei ($0.29 billion) that is by 75 million lei or by 2.09% more than in February 2005. The NBM Administrative Council has approved amendments to the Regulation on the opening of accounts abroad. «Apa-canal-Chisinau» intends to issue an additional emission of shares to cover the spring tranche of the EDRD credits in the amount of $980 th. The general meeting of the «Moldova Agroindbank» shareholders has taken a decision on the payment of dividends on the results of the bank’s activities for 2004 in the amount of 50 lei per a share (25% yearly interest). Vasile Ursu is nominated as Acting Chisinau Mayor. The NBM Administrative Council has approved the Regulations on the terms, procedure of the emission and the circulation of the bank deposit certificates and the bank promissory notes. The net profit of the «Banca de economii» for 2004 was increased by 21%, compared with that of 2003, and constituted 88.7 million lei ($7 million). The growth of the real GDP in Moldova slowed down from 7.3% in 2004 to 5% in the two successive years, - The «Economist Intelligence Unit» (EIU), which is a sub-division of the leading international business periodical «The economist»asserts, «the growth of the real GDP in Moldova constituted 7.3% last year and each index testifies that Moldova remains the poorest country in Europe », - the EIU reports on Moldova asserts. The budget receipts for 4 months of 2005 constituted 2.21 billion lei, they exceeded the target by 336 million lei or by 30%. The RM Ministry of Finance allocated 54.6 million lei ($4.3 million) to finance the deficit of the State Budget on the results of the first four months of 2005. The right to use the Chisinau brand will be granted in the course of an auction. The Investments into the fixed capital for the I quarter of 2005 constituted 544.8 million lei ($43.2 million) in current prices, they were increased by 28%, compared with the respective period of 2004. The Stock Corporations will not be obliged to allocate not less than 30% of their annual net profit for paying dividends to their shareholders as it was envisaged before. The local levy for the computer halls was decreased twice, whereas that for the casinos was increased five times. The State Budget receipts for the first quarter of 2005 constituted 1.8 billion lei that is by 12% more than the analogous target figures. The export-import transactions at 13.150 billion lei ($1.052 billion), was carried out in Moldova for the January-April 2005 period that is by 922.6 million lei more than for the respective period of 2004. Ex-Director of the Department for the Construction and development of Territories Igor Semenovcher has been nominated the Vice-Ministry of Industry and Infrastructure. Moldova is among the tree CIS member countries, which commissioned the lowest number of housing objects for the January-March 2005 period. The investments into the construction of the Wine City are estimated at $30 million. The size of the State unemployment allowance will be reduced and it will constitute 30-50% of the average salary in the National economy for the previous year, instead of the earlier fixed 50-60%. The Positive balance of trade between Moldova and Russia for the January-March 2005 period constituted $28.2 million, it was reduced by $0.8 million or by 2.8%, compared with the respective period of 2004. The activity of the Economic Council attached to the Chisinau General Mayor is suspended. The profit of the National Bank of Moldova for the first quarter of 2005 constituted 68.639 million lei ($5.49 million). Ukraine has ratified the Agreement on Free Trade with Moldova. The RM’s foreign currency reserves constituted $476.5 million, they were increased by $15.5 million or by 3.3%, as of May 1 , compared with the previous month. Beginning from April 1 2006 the documents, identifying a person will contain the biometrical data of its possessor. The activities of the RM Trust Companies have been suspended until January 1 2006 . JUNE The general meeting of the «Victoriabank» shareholders has elected a new composition of the Administrative Council. The «Victoriabank» shareholders have decided to allocate 25.6 million lei out of the total profit for 2004 at 53.36 million lei ($4.3 million for paying dividends). Vice-Minister of Industry and Infrastructure Igor Semenovcher is appointed the Director of the Agency for Regional Development. The meeting of the founders of the Universal Commodity Exchange of Moldova has nominated Liudmila Moraru as the new Exchange President. A state enterprise on horse breeding and training will be set up. A new order of the fine calculation is fixed in Moldova. The shareholders of the «Universalbank» approved the profit size on the results of 2004 – 4.5 million lei ($360 thousand). The Chisinau taxpayers transferred 664 million lei ($52.7 million) into the State Budget from the beginning of the year that is by 16 % more than for the respective period 2004. 10.9% of the Chisinau inhabitants (more than 77 thousand people) and 0.06% of the inhabitants of other localities of Moldova (1.6 thousand people) have an access to the Internet. Since June 1 2005 Moldova has the right for the import of goods from the member countries of the Stability Pact for SouthEast Europe in the preference regime. The average profitability rate on the deposits till called for in MDL was decreased by 0.47% for April 2005 and constituted 13.90%. The volume of the monetary transfers from the guest workers for the first quarter of 2005 was increased by 53% compared with the respective period of 2004 and constituted $153 million. The monetary mass (М2) in April 2005 constituted 8810 million lei ($701 million), it was increased by 207.7 million lei ($ 16.4 million) or by 4.3% , compared with the previous month. The National Bank of Moldova (NBM) will introduce in circulation a new memory coin at the value of 10 lei – «The European Chess Women Championship, Chisinau -2005г.». The RM Ministry of Finance allocated the earnings at 76.5 million lei ($6.1 million) from the sale of the State Securities for the first five months of 2005 for covering the State Budget deficit. As of June 1 2005 , the budget receipts constituted 3152 million lei ($250 million), they were increased by 50.8%, compared with the respective period of 2004. Moldova allocated $20.4 million for covering its external debt for the January-May 2005 period. The volume of the receipts of the RM Insurance Companies for the first quarter of 2005 constituted 101.7 million lei (there is no comparative data for the first quarter of 2004). Moldova supplied 58.4 tons of fruits to Russia for the January-April 2005 period, it increased its export to Russia 3.9 times, compared with the respective period of 2004. The positive balance in the trade between Moldova and Russia for the January-April 2005 period constituted $46.7 million, it was increased by 22.6% or $8,6 million, compared with the respective period of 2004. Moldova and Russia rank third in the inflation level among the CIS member countries for the January-April 2005 period, compared with the respective period of 2004. Moldova’s debt vis-a-vis Russia on the earlier received credits constituted $98.3 million as of the end of the first quarter of 2005, it remained on the same level as at the end of 2004. The inflation level (the consumer's price index) constituted 0.1% in May. Prime Minister Vasile Tarlev proposed to impose a tax in the amount of 35% on the citizens, whose revenue constitutes from 1 to 2 million lei. The European Commission will render a free financial assistance in the amount of 42 million Euro for Moldova in 2005-2006. The investments into the development of the enterprises of the packing industry for 2004 constituted 36 million lei ($2.9 million). Moldova hopes to receive a preference regime in its trade with the countries of the European Union from January 1 2006 . Moldova lost the chance to receive grants at $500 million because of no acting agreement with the IMF. The WB Board of Directors will consider the issue of allocating $8.5 to Moldova for the implementation of the project «The Public Finance Management». Moldova plans to receive a credit at $10 million for the implementation of the Project «The Competitiveness Rise». The WB plans to allocate privileged credits up to for $45 million for Moldova in 2005-2006 for the implementation of four projects in the frames of the new Assistance Strategy for Moldova. Moldova intends to increase its export share to the countries of the European Union up to 50%. About half of Moldova’s foreign trade transactions (50.6% of the export and 44.5% of the import) fell on the CIS countries. The net losses of the Russian-Moldovan joint venture SC «Moldovagaz» constituted 64.4 million lei ($5.1 million) in 2004, compared with the net profit for 2003 in the amount 135.99 million lei ($10.8 млн.). The growth of the Gross Domestic Product of Moldova in the first quarter of 2005 constituted 8.2%. The ticket price for the interurban and international routes were increased by 15-18%, from June 15 2005 . The influx of foreign investments to Moldova constituted $250 million in 2004, it was increased by 72%, compared with 2003. The German Company «Metro Cash & Carry» was declared the Investor-2005 in SouthEast Europe in the nomination of investments from zero (”greenfield”). The Azerbaidjan Company «Azpetrol» is declared «Investor 2005» in Moldova. The government refused from the idea to impose the income tax at 35% on the citizens, whose income wavers from 1 million to 2 million lei and at 50% on those, whose income exceeds 2 million lei The total indebtedness of the economic entities vis-a-vis the Social Insurance Fund constitutes 941 million lei. JULY The government will allocate 120 million lei ($9.5 million) for paying out compensations to the agricultural producers in the connection with the price rise for fuel. The Parliament has passed the amendmeents to the Fiscal Code in the final reading, which fixed an 8% VAT tax on the import of medicaments and a 20% VAT tax on the import of mineral fertilizers, pesticides and agricultural equipment from January 1 2006 . Moldova received a free credit (grant) from the European Commission in the amount of 9.5 million Euro. The USA will grant $20 million to Moldova in 2006 for the implementation of the Program on the Promotion of Democracy and Economic Reforms. The prices for gasoline and diesel fuel have been increased in Moldova by 13.4% and 11.1% accordingly. The early elections of the Chisinau Mayor on July 10 were recognized invalid due to the low participation of the voters. The «AS Petrol Moldova» Company opened the first oil refinery in Moldova. The excises for bear, cigarettes and strong alcohol drinks will be increased from January 1 2006 in Moldova. The Turkish Administration for Cooperation and Development (TIKA) will complete the second stage of the Project for the Installation of the Water Supply System in the South of Moldova, which project is estimated at $1.1 million. AUGUST The first foreign branch office of the RM Ministry of Information Development was opened in Odessa (Ukraine). In 2007-2008 an aqua-park will be built on the territory of «Valea Morilor» park. The price on oil products was increased in Moldova again. On the average the prices were increased by 2.2%. Two daughter Companies of the RAO «ЕES Russia» became the only owners of the Moldavian Hydropower Station. The Prices for gasoline and diesel fuel were increased by 3.23% and 3.33% accordingly in Moldova again. The price for natural gas for Transdniestria will be the same as for the gas consumers of Moldova. The EBRD and the «Banca Sociala» have signed a credit agreement on 5 million Euro and the Trade Facilitation Programme (TFP) on the amount of $1 million. The shareholders of the «Businessbank» took s decision of the self-liquidation of the bank. In 2006-2008 it is planned to allocate 20.4 million lei ($1.6 million) for the development and the improvement of the Moldovan-Ukrainian border. The International Fund for Agricultural Development (IFAD) will give a credit at $14.5 to Moldova. Transdniestria offered 100% of the shares of the Opened Stock Corporation «Litmash» (City of Tiraspol) for sale at the initial price of $1.3 million. The European Bank for Reconstruction and Development has taken a decision on giving a credit at $7 million to the «Acorex Wine Holding» Company. Mihai Poalelungi is approved in the position of the Vice-Chairman of the Supreme Judicious Chamber for four years. The Gazprom will increase the prices for the gas, supplied to Moldova from January 1 2006 , Vice-Chairman of the Gazprom, Chairman of the Supervisory Council of the Russian-Moldovan Enterprise «Moldova-gaz» Aleksandr Riazanov has declared at a press conference. The volume of the direct Foreign Investments, attracted into the RM National Economy constituted $949.5 as of the end of the first half-year of 2005. SEPTEMBER In 2006 the income tax rate for the juridical persons will constitute 15% instead of 18%. The cost of the Compulsory Medical Insurance Police will constitute 816 MDL in 2006, its cost was increased by 23%, compared with 2004. The process of the liquidation of the «Businessbank», which is a foreign bank with 100% of foreign capital. The «Victoriabank» has signed a revolving type credit agreement with the EBRD in the frames of the Trade Facilitation Programme - TFP. The Chisinau Municipal Council has taken a decision on initiating the liquidation of the Municipal Bank "Chisinau" S. A. It is planned to introduce a single agricultural tax at 1.5 MDL pre one ball-hectare from January 1 2006 . Israel will open new credit line in amount of $10 mln. for Moldovan enterprises willing to purchase drop irrigation systems from «Netafim» company. Brand of the divin «Belii Aist» is estimated at $300-400 mln. and is the most expensive brand of Moldova. By the index of human development (IHD) Moldova holds 115 position out of 177 studied states. All the localities of Moldova will be provided with gas until 2009. The concept of the aviation security will be elaborated in Moldova by the end of this year. OCTOBER The project of the Strategy for Supporting the Development of Small and Middle Enterprises for the 2006-2008 period is placed in the Internet for public discussion - www.scers.md The Chisinau Company «Media Satelit» has received the right to relay the Russian «First Channel» on the frequency of the frequency of the third republican channel instead of the «AnaliticMediaGroup» Company. The «Inter RAO EES» Company will invest $160 million into the modernization and the reconstruction of the Moldavian Hydropower Station (the City of Dnestrovsk), it owns. Moldova ranks 95th among 159 States, included in the rating on the Corruption Perception Level in 2005, it was raised by 22 points, compared with 2004. Johan Mathisen has been appointed the new IMF Resident Representative for the RM. The «Itera» International Group of Companies will begin the construction of a 450-megawatt power station in the vicinity of the Village of Burlaceni (the Cahul region) at the beginning of 2006. Moldova ranks 74th in the mass media freedom level among 167 States, which participated in the survey. Minister of Finance Zinaida Greceanii was recalled from her post in the connection with her transfer to post of the First Vice-Premier. Mihai Pop has been appointed the new Minister of Finance. The voting right in the UNESCO, which Moldova was deprived from 2001, was returned to it. Moldova is the poorest State of Europe. It is stated in the WB report «The Growth, Poverty and inequality in the ex-USSR Republics». The regular traffic of new train № 952 «Chisinau-Basarabeasca» along the Revaca –Cainari section in the circumvent of Transdniestria began on been on October, 1. Moldova will open its Embassy for all the Baltic countries in Riga by the end of 2005. The Universal Commodity Exchange of Moldova has decreased its exchange due by 20% and has introduced the singe payment mechanism on the transactions, concluded on the exchange, on September 27 2005 . The RM Prime Minister has called upon the Commercial banks to reduce the interest rates on their credits by the end of 2005. NOVEMBER The largest Moldovan Footwear Factory «Zorile» celebrates the 60th anniversary from it Foundation Day. IMF new Resident Representative Johan Mathisen has begun his mission in the RM. The total cost of the projects, which the European Bank for Reconstruction and Development implements in Moldova in 2005, will constitute 17 million Euro. Moldova signed a Contract on the Electric Power Supply to Moldova in case of the Force-major circumstances. The USA will allocate $33 million for Moldova in 2006 for the implementation of the economic and social development programs. The traffic of all the route taxies was transferred onto the parallel streets from the Chisinau central street Stefan cel Mare from November 14 . The World Bank (WB) will allocate $9.8 million in 2006-2009 for the implementation of the Competitiveness Rise Project in Moldova. The Black Sea Trade and Development Bank (BSTDB) has granted a revolver credit line at 3 million Euro to the «Mobiasbanca». The coin production will be opened in Transdniestria on November 18 . Moldova predicts the growth of the State external debt by 4.1% - up to $749.5 million by the end of 2008. It is envisaged by the Average Forecast of Expenditures for 2006-2008, approved by the government earlier. Moldova predicts the GDP growth by 7% in 2005, not less than by 6% in 2006-2008. Moldova predicts the GDP growth by 7% in 2005, not less than by 6% in 2006-2008. The Moldovan Regional Power Station, situated in the City of Dnestrovsk (Transdniestria) and owned by the Russian Company «Inter RAO EES», has suspended the supply of electric power to Moldova on Wednesday, 16 November . Transdniestria has sold a single lot of 100% of the shares of the Bender bakery and the Bender Bread Products Enterprise to the Transdniestrian «Gazprombank» for $1.9 million. The «ASYCUDA World», system was introduced on all 15 customs offices of Moldova. The government will allocate 100 million MDL ($7.9 million) for purchasing new buses and trolleybuses for Chisinau. Romania plans to introduce the privileged visa regime, envisaging free visas, from for January 1 2007 . The Direct Investment Fund «Western NIS Enterprise Fund» declared the purchase of the RM’s largest fruit and vegetable processing Company «Natur Bravo» for $10 million. The agricultural producers will be freed from the income tax and a number of other taxes for five years beginning from January 1 2006 . Turkey is ready to release the second tranche of the credit for the implementation of the Project «On providing the South of Moldova with Portable Water» in the amount of $20 million. DECEMBER The growth of the Gross National Product of Moldova constituted for the January-September 2005 period 8.4%. The average salary in the Chisinau municipality for 11 months of 2005 constituted 1715 MDL ($133), it was increased by 17.5 %, compared with the respective period of 2004. The interest rates on the mortgage crediting, grated to the young specialists, sent to work in the urban areas, will be repaid by the State. The RM Budget-2006 Law has come in force. The text of the Law, approved by the Parliament on November 16 and promulgated by the President on November 28 was published in в «Monitorul oficial» on December 11 . Reportedly, the State budget receipts must constitute 9690.2 million MDL ($757 million); the expenditures – 10024.8 million MDL ($783 million); the deficit – 334.6 million MDL ($26 million MDL) or 3.45% of the receipts. According to the preliminary data, 50.3% of the citizens, having the voting right, participated in the elections to the Transdniestrian Supreme Council. The last elections of the Chisinau Mayor on December 11 were recognized invalid for the fourth time due to the low participation level of the voters. The influx of direct foreign investments to the Moldovan economy for the January-September 2005 period constituted $158.76 million. It is planned to ban the passenger transportation in Moldova micro-buses, adapted for this purpose from common cargo vans from January 1 2006 . The monetary transfers from abroad, made by the physical persons during the January-September 2005 period by means of the commercial banks, constituted $498.17 million, their volume was increased 1.7 times, compared with the respective period 2004. The introduction of the new system of the real estate taxation with taking into consideration its market cost was put off for one year from January 1 2006 to January 1 2007 . About 40 winemaking companies are participating in the contest on the selection of alcohol drinks into the new Catalogue «100&1 Best wines–2006». The IMF is optimistic about the signing of the three-year financing program with the Moldovan government and it will continue talks on this document in February 2006. The receipts to the consolidated budget of Moldova for January-October 2005 period constituted 11631.7 million MDL ($907.3 million) that is by 2763.3 million MDL ($215.5 million) or by 31.2 % more than the respective period of 2004. The Chisinau taxpayers transferred more than 2.6 billion MDL ($202.6 million) to the consolidated budget for 11 months of 2005 that is by 10.5 % more, compared with the respective period of 2004. The State budget receipts for 11 months of 2005 constituted 8040.2 million MDL ($627.2 million), it was increased by 2256.4 million MDL ($176 million) or by 39%, compared with the respective period of 2004. The RM’s losses due to Russia’s ban on the import of livestock and plant products from Moldova will constitute about $11-12 million in 2005. The receipts to the consolidated for the January-November 2005 period constituted 9.933 million MDL ($777 million.), they were increased by 2.42 million MDL ($188.6 thousand) or by 32.2%, compared with the respective period of 2004. According to the working data by the Ministry of Finance, which Minister of Finance Mihai Pop has presented at a government sitting on Wednesday, the target for this period was surpassed 288 million MDL ($22.4 million) or by 3%. At the same time the expenditures of the consolidated budget constituted 8.863 million MDL ($690.69 thousand) that constitutes 84.2% of the target. The Ministry of Finance will return $1 million to the «Interdnesrcom» Company in the most nearest time. As the InfoMarket news agency reports with reference to RM Minister of Finance Mihai Pop, these financial resources will be returned with a very short period , but in any case until the end of the year. The salary debts of the real economy sector were decreased by 19.8% for four months (July-October) and constituted 104 million MDL ($8.12 million) by November 1 2005 . It is planned to allocate about 2 million MDL ($158.8 thousand) in 2006 from the municipal budget for covering the interest on the bank credits for the Chisinau budget employees, wishing to acquire apartments by means of mortgage crediting. The largest Moldova light industry enterprise «Covoare Ungheni» celebrates its 25th anniversary. The inflation level in November 2005 constituted 1.9% that is by 0.4 % more than in October (1.5%). Moldova has become the Exporter of oil products for the first time in its history. As the «InfoMarket» reports with reference to the «AS-Petrol», in November Moldova sold 250 tom of M-40 fuel oil and 70 tons of hydraulic oil, which were produced at the Moldova-first «AS-Petrol» refinery. The oil products were sold at the Platts prices. The RM external State Debt (included guaranteed by the State) constituted $777.04 million, it was reduced for a month by $5.58 million or by 0.71% as of October 31 . The elections of the Chisinau Mayor on November 27 were not recognized invalid due to the low participation of the voters. It will the twelfth anniversary on November 29 2005 since the introduction of the Moldovan Leu as the national currency. The Russian «Gazprom» intends to increase the gas price twice in 2006 from $80 to $150-160 per 1000 cubic meters. Moldova considers the Gasprom’s proposal to increase the gas price for Moldova for 2006 from 80 to $150-160 per 1000 cubic meters as economically ungrounded. The new identity cards, containing the biometrical data of the holder, will be issued from April 1 2006 in Moldova. Moldova will enjoy the new preference system, which allows the access of 7.2 thousand good nominations at a reduced or zero customs dues in the trade with the European Union from January 1 2006 . The ЕBRD has opened a credit line in the amount of $1 million for supporting the Moldovan farmers and businessmen, acting in the spheres of the small and the meddle business in rural locations. In 2005 Moldova has spent 19.5 million MDL ($1.52 million) for the Parliamentary and the local elections. |
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