BULLETIN No.1
JANUARY 2008
- REGULATION FOR CONDUCTING SMALL PUBLIC PROCUREMENTS
- IMPORTANT EVENTS IN NATIONAL ECONOMY IN 2007
- MOLDOVA CAPITAL MARKET TO REACT TO REACT CALMLY FURTHER ON ABOUT INTERNATIONAL FINANCIAL CRISIS
- FOUR IMPORTANT EVENTS TO MARK MOLDOVAN WINE PRODUCTION IN FEBRUARY 2008
- RESULTS OF QUALITY COMPETITION 2007
- MOLDOVA AND CYPRUS SIGNED CONVENTION ON AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION
- MOLDOVA AND AUSTRIA TO REALIZE ACTIONS TO IMPEL BILATERAL COMMERCIAL-ECONOMIC RELATIONSHIPS
- EUROPEAN COMMISSION APPRECIATED AS REMARKABLE RESULTS MOLDOVA REGISTERED IN MANAGING PUBLIC FINANCES
- A MEMORANDUM OF INDUSTRIAL COOPERATION TO BE SIGNED BETWEEN MOLDOVA AND ITALY
- EU COUNCIL OF MINISTERS ADOPTED A REGULATION ON INTRODUCTION OF AUTONOMOUS TRADE PREFERENCESC IN MOLDOVA
- MOLDOVA-EU SUB-COMMITTEE ON ECONOMIC, FINANCIAL AND STATISTICAL ISSUES TO REUNITE IN BRUSSELS
III. LEGAL FRAMEWORK
I. BUSINESS & ECONOMY
1. REGULATION FOR CONDUCTING SMALL PUBLIC PROCUREMENTS
It was approved on January 30, the Regulation for conducting small public procurements, the provisions of which may be applied to goods and service procurements that does not exceed 20,000 lei for goods and 25,000 lei for services VAT not included.
The document also sets out that a contract for a small public procurement is under one thousand lei, and when calculating the estimate value of such a procurement contract the total value to be paid, estimated by the contracting authority, VAT not included, shall be taken into consideration.
The regulation shows that if at the moment of signing the contract, its value exceeds 20,000 lei for goods and 25,000 lei for services, VAT not included, then the state beneficiary must apply the public procurement procedures such as the price offer, sole sourcing, or special auctions with limited participation.
2. IMPORTANT EVENTS IN NATIONAL ECONOMY IN 2007
The Institute of Economy, Finance and Statistics of the Academy of Sciences of Moldova has identified the most important events in the economic activity of Moldova in 2007. The national economy liberalization initiatives rank first. They provide for the capital legalization; benevolent declaration of all money means and assets owned by both natural and legal persons. The second legislative initiative refers to the fiscal amnesty and provides for forgiving all fiscal debts of the economic agents accumulated before 1 January 2007. The third legislative initiative provides for the modification of the income taxation system for legal persons by setting out a zero income tax in case economic agents decide to reinvest the profit.
Second place - Moldova was granted the preferential trade regime with the EU; expansion of regional trade relations and implementation/monitoring of implementation of the commitments assumed when the country joined the WTO. As of 1 January 2006, Moldova obtained the “GSP plus” system that allows the access on the EU market for about 9200 Moldovan products without customs duties and the CEFTA agreement was signed.
Third place– operation of petrol terminal in Giurgiulesti. The Giurgiulesti petrol terminal was operated on 12 September 2007. The first tanker with petrol products accosted at the petrol terminal of the Giurgiulesti Free International Port. So far the total amount of investments in Giurgiulesti Port constitutes 30 mln USD, including 3 mln USD were placed in environment protection actions, anti-fire measures and accident prevention.
Fourth place – launch of industrial, technical-scientific parks and innovation incubators. The law on the technical-scientific parks and innovation incubators was adopted and promulgated in summer 2007. The establishment of industrial parks implies attraction of investments in industrial projects, while the state will secure all the conditions necessary for activity, in particular, will establish the infrastructure for their implementation.
Fifth place - Moldova has joined and took over CEFTA Chairmanship. As of 2007, CEFTA signed in Bucharest entered into force. In 2008 Moldova took over the CEFTA Chairmanship, which was an important step in the intensification of trade and in the process of cooperation within the regional initiatives as well as in the process of European integration.
Sixth place – foreign investments, record of 2007. Of the total of 7527.4 mln lei of direct foreign investments in the first 9 months of 2007, the investment made by the French Group Societe Generale of 18.4 mln EUR stands out. It purchased 70.57% of Mobiasbanca shares, the fifth important bank of Moldova.
Seventh place – the capital repair of the international road ?Chisinau-Leuseni?. On 25 September 2007 the international autobahn Chisinau-Leuseni was re-inaugurated, after it was repaired in line with the European standards. The capital repair started in March 2006. The road is about 100 km long and connects Leuseni customs point and Chisinau municipality.
3. MOLDOVA CAPITAL MARKET TO REACT TO REACT CALMLY FURTHER ON ABOUT INTERNATIONAL FINANCIAL CRISIS
Moldovan stock exchange market has a rather calm reaction to the international financial crisis because the investors’ interest in Moldova is oriented mainly towards concentration of control stocks, rather than towards speculative transactions.
Current holders of the control stocks in Moldova will have to wait for about 3-5 years, so that it is unlikely to witness price drops related to the international financial crisis. It is forecasted for 2008 an increased investment inflow in Moldovan companies because very many investors of foreign portfolio, including individuals, brokers and dealers are interested in the shares of Moldovan companies. It is informed that the volume of stock exchange transactions reached in 2007 a record level of 1.233 bn lei, 3.6 times up compared with 2006. In 2007 the biggest share came to tender bids (41% of the total volume of transactions), public outcry auctions (33%), sell-buy transactions (17%), privatization (6%), CNPF auctions (3%) etc.
The stock exchange index EVM COMPOSITE, that shows the general evolution of the market value of all shares admitted for transactions at the Stock Exchange Moldova (BVM), grew twice in 2007 reaching 2,126.0798 points, and the increase of the value of this index was determined by the considerable growth of profitability of bank shares as well as of the share price of a number of companies in the real sector of the economy.
The biggest price raises produced in May, July, August and October. The biggest price promoters were the commercial banks (Moldova-Agroindbank, Victoriabank, Moldindconbank, Investprivatbank etc). It denotes, according to the expert, both the quality of stocks, their adequate financial state, high profitability, and the investors’ interest in the financial companies.
If in 2006 about 46.90% of stock exchange transactions were carried out with shares of financial companies; 21.30% with shares of companies specialized in the production of other products from non-metal minerals; 5.09%, equipment and radio, television and communications; 5.08% food industry and drinks, then last year 76.49% of stock exchange transactions were carried out with shares of financial companies; 6.86% construction; 3.01%, food industry and drinks etc. In 2008 the interest of investors will shift to constructions that register a notable growth, food industry, processing industry, road repair and maintenance.
4. FOUR IMPORTANT EVENTS TO MARK MOLDOVAN WINE PRODUCTION IN FEBRUARY 2008
Several significant events are to mark Moldovan wine industry on 16-23 February 2008. They are the XVII-th edition of "ExpoVin Moldova-2008" exhibition, International Wine and Drinks Contest, practical-scientific conference "InWine-2008" and Wine Gala-2008, events organized by Poliproject Exhibitions.
As many as 175 companies have already announced their participation in the exhibition planned for February 20-23 at Moldexpo Exhibition Center. Among them are wine producers, producers and suppliers of equipment for wine industry, and specialized media editions of Moldova, Germany, Russia, Italy, Romania, Bulgaria, France, Portugal, Sweden, Cyprus, Belgium, Spain, Slovakia, Czech Republic, Belarus and Ukraine.
Wine samples that are to compete for golden, silver and bronze medals, the big golden medal and two Big Prizes are to be exhibited at the International Wine and Drink Contest to be held on February 16-17.
Famous tasters from Russia, Ukraine, Belarus, Romania, UK, Germany, Austria, Czech Republic, Slovakia, France, Italy, Cyprus, Ireland, Armenia and Moldova confirmed the participation as jury members for this contest.
At the moment, companies from Moldova, Romania, Slovakia, Czech Republic, Bulgaria, Ukraine, Cyprus, Georgia, Armenia and Tunis have already submitted samples for this contest. The winners are to be announced on February 20 during the traditional Wine Gala.
At the same time, on February 20-22, Poliproject Exhibitions Ltd is to organize a practical-scientific conference "InWine-2008". This year the participants to the event are discuss about the improvement of the level and wine consumption culture among local consumers, the decline of which was noted by specialists from many European countries over the past years.
5. RESULTS OF QUALITY COMPETITION 2007
As many as 31 economic agents were awarded the State Prize in Quality-2007.
Thus first degree prizes for quality-2007 were awarded to 10 economic agents, among them: Macon, Milestii-Mici, Tutun-CTC, Moldcell, CMC-Knauf, Produse cerealiere, MoldData, Nufarul Alb, Codru Hotel and Calcar.
The list of the 9 laureates who received the second degree State Prize in quality names Incomlac, Keramin Chisinau, Zorile, Dionysos-Mereni, Tricon, Carmez, MGM, Inconarm and Liga-2, and diplomas will be awarded to 12 entities including Barza-Alba, Floare-Carpet, Carahasani-vin Viorica-Cosmetic, Orhei-Vit, Moldagroteh.
The laureate companies of the contest will enjoy priority during public auctions organized by central and local authorities, will benefit from a 50% discount of the participation fee to the annual exhibition "Made in Moldova" to be held on February 5-10, where they are to be reserved an exhibition room of four square meters free of charge. Also, the laureate entities of the prize will be included free of charge in all official presentation editions of Moldova.
The economic agents submitted their participation forms by 1 October 2007.
The economic agents were evaluated based on criteria similar to the Model of Excellence of the European Prize for Quality managed by the European Foundation for Quality Management established in Brussels in 1988.
II. INTERNATIONAL RELATIONS
1. MOLDOVA AND CYPRUS SIGNED CONVENTION ON AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION
On January 29 in Larnaca, Moldova and Cyprus signed the Convention on avoidance of double taxation and prevention of fiscal evasion.
This Convention on avoidance of double taxation will give a new impetus to the development of commercial and economic relationships between two countries and will help Moldovan and Cypriot economic agents to explore at a much higher level the economic potential of our countries.
The parties discussed the opportunity to organize a Moldovan-Cypriot business forum in Chisinau, in April-May 2008.
So far, Moldova signed with Cyprus seven intergovernmental agreements, the last one was singed in September 2007, and provides for the mutual promotion and protection of investments.
Over the last quarter of 2007, the volume of commercial exchanges between Moldova and Cyprus increased by 2.5 times and amounted to 830.6 thousand USD. Moldovan exports increased by 1.4 times against the same period of 2006, and amounted to 49.3 thousand USD, and imports from Cyprus increased by 2.6 times and constituted 781.3 thousand USD.
Mainly, Moldova has exported sparkling wines and grapes wine and imported from Cyprus medication and fresh or dry citric fruits, tubes, pipes and plastic accessories for these. The trade with this country accounts for 3.8% of the total volume of trade of Moldova registered for the first quarter of 2007.
2. MOLDOVA AND AUSTRIA TO REALIZE ACTIONS TO IMPEL BILATERAL COMMERCIAL-ECONOMIC RELATIONSHIPS
Moldova and Austria agreed to realize, in 2008, a number of actions meant to impel the commercial-economic relationships between them.
They will organize, in January – June, the reunion of the Moldovan-Austrian Economic Commission, a conference on the economic and investment opportunities in Moldova and a representative mission of the Austrian business environment.
It is expressed an interest of the Austrian businessmen in developing and identifying new opportunities with partners from Moldova.
There is an active presence of Austrian investors in Moldova in the bank, air, insurance fields, the sugar and building industries, and in the informational technologies sector.
The Autonomous Preferential Preferences granted by the EU are a significant impulse to attract new European investments in the Moldovan economy.
In January – September 2007, the exports of the Moldovan goods to Austria increased by 50%, and the Austrian exports to Moldova – by 80%, according to official data.
3. EUROPEAN COMMISSION APPRECIATED AS REMARKABLE RESULTS MOLDOVA REGISTERED IN MANAGING PUBLIC FINANCES
The European Commission appreciated as remarkable the results Moldova registered in managing the public finances, in spite of the external shock the Moldovan economy had to meet, in 2007.
The evaluation was made at the IV-th reunion of the Cooperation sub-Committee Moldova – EU, no.2: Economy, Finance, Statistics, held on January 24, in Brussels. The Moldovan and EU experts discussed the realizations in implementing the Plan of Actions, stressing, at the same time, the cooperation priorities in the future.
The European experts also appreciated as positive the efforts of the Moldovan authorities in implementing the regulatory reform, being underlined the necessity to continue this process, as well as to settle a transparent mechanism of examination and elaboration of the normative acts in regulating the entrepreneurial activity.
The European delegation informed about the planned business visit to Chisinau, in February, of the experts of the General Directorates for Economy, Finance and Budget, according to the source.
At the event, the Moldovan representatives presented the New Strategy of Development 2008 – 2011, stressing the development priorities and their correlation with the Framework of Expenses for Average Term.
The two parts highly appreciated the level of the Moldovan-community dialogue on the macroeconomic policies, the reunion having an opportunity importance in bringing up-to-date the last results Moldova obtained when the Commission elaborated the final report on progress regarding the implementation of the Plan of Actions.
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4. A MEMORANDUM OF INDUSTRIAL COOPERATION TO BE SIGNED BETWEEN MOLDOVA AND ITALY
On January 22, was signed a Memorandum of Industrial Cooperation between Moldova and Italy.
The press service of the Moldovan Ministry of Economy and Trade specifies that the document foresees the development of commercial and economic relations between Moldova and Italy, cooperation in industrial sector development, exchange of information between the countries, establishment of joint companies.
The basic goal of the cooperation is the “taking over the Italian practice in construction and industrial park development”, the press service specifies.
According to the ministerial data, in January-November 2007, the commercial exchanges between Moldova and Italy amounted to 369.7 mln USD. Moldovan exports to Italy grew by 21.3% and amounted to 126.6 mln USD, and imports from Italy increased by 39.3% and constituted 243.1 mln USD.
5. EU COUNCIL OF MINISTERS ADOPTED A REGULATION ON INTRODUCTION OF AUTONOMOUS TRADE PREFERENCESC IN MOLDOVA
On 21 January 2008, the EU Council of Ministers adopted the Regulation on the introduction of Autonomous Trade Preference in Moldova.
According to the EU legal procedures, for the document to be enacted it has to be published in the Official Journal in the official languages of the 27 member states. Thus, the de facto application of the Regulation will be possible as of March 2008.
This document represents the final formal decision earlier announced by the community institutions launching a new approach in the commercial Moldovan-Community
relations.
This new trade regime provides duty free access for all products originating from Moldova on the EU market, with the exception of a limited number of agricultural products that are extremely sensitive for the EU internal market.
It is important that although Moldova does not currently exports animal products (others than bee honey) to the EU, the European Commission has accepted to include these products in the list of Autonomous Trade Preferences.
The Moldovan Ministry of Foreign Affairs notes that the adoption of the Regulation confirms the correctness of the measures undertaken by the Moldovan party in particular the ones related with adjustment of the national system of control of goods origin to the European standards.
The text of the Regulation is available on the ministry’s web page www.mfa.gov.md
As of 1 January 2006 Moldova has enjoyed the Generalized Trade Preferences in trading with the EU (GSP+), which provided for a "zero tax" for almost 80% of the exported goods. Thus, 607 groups of goods of those 700 exported by Moldova to the European market fell under the incidence of this system. As much as 87% of Moldovan exports enjoy free access on the European market.
6. MOLDOVA-EU SUB-COMMITTEE ON ECONOMIC, FINANCIAL AND STATISTICAL ISSUES TO REUNITE IN BRUSSELS
The fourth reunion of the Moldova–EU Sub-Committee on economic, financial and statistical issues will took place in Brussels, Belgium on 24 January 2008.
The Moldovan delegation comprised representatives of the Ministry of Foreign Affairs and European Integration, Ministry of Economy and Trade, Ministry of Finances, Court of Accounts and National Statistics Bureau.
The press service of the Ministry of Foreign Affairs and European Integration specifies that the agenda of the reunion includes aspects related to the implementation of the regulatory and fiscal reform, adjustment of the normative and legislative framework in financial and financial control area to the European standards, as well as the evaluation of the results achieved in the statistics field. A separate issue was the analysis of the developments registered in the implementation of the commitments assumed under the Memorandum on macro-financial assistance to Moldova worth 45 mln EUR. The progresses under the implementation of the RM-EU Action Plan are discussed at the expert level within four Moldova-UE Cooperation Sub-Committees.
III. LEGAL FRAMEWORK
1. LAW REGARDING THE JOINT STOCK COMPANIES
It has been passed in new redaction with some modification the Law regarding the Joint Stock Companies! (Official Monitor nr. 1-4 (3094-3097) 01.01.2008).
Unlike the old redaction the new law comprises the following main modifications and annotations:
- There is only one type of Joint stock companies – open ones.
- The number of shareholders is unlimited;
- There are just two types of meetings for the General Assembly:
a) annual ordinary b) extraordinary
- The total contributions in money for the social capital of the Company are made before registration of the Company.
- The Governing bodies of the Joint Stock Company besides General Assembly and Censor Commission have Management Board and Council of the Company.
2. THE NEW ORDER OF THE CUSTOMS SERVICE
It has been passed an ORDER of the Customs Service regarding the approval of some normative acts for implementation of the Customs Code. (Official Monitor nr. 1-4 (3094-3097) 01.01.2008).
Thus, was approved the Regulation about Temporary Storage, Regulation regarding Customs destination “Destruction”, Regulation regarding “Abandonment in the favor of the state”. All these Regulations describe in detail all above mentioned customs regimes.
3. DECISION REGARDING THE APPROVING THE REGULATION OF CUSTOMS BROKER
It has been passed a Government Decision regarding the approving the Regulation of Customs Broker and customs specialist in customs domain (Official Monitor nr. 8-10 (3101-3103) from 15.01.2008).
According to this regulation is established the way and the order of obtaining the broker authorization, the rights and obligations of the Customs broker, customs specialist in customs domain, the relation between customs bodies and customs broker.
V. USEFUL INFORMATION
Average exchange rates for November 2007
Euro - 16. 7772 MDL
USD - 11.2617 MDL
Travel information
The Chamber of Commerce Moldova-Belgium offers to its members, assistance in getting air tickets from Moldova. We can book your flights from Belgium to Moldova through Prague, Vienna, and Budapest.
The air ticket will cost you starting with 540 EUR to 680 EUR, depending on class.
If you are willing to enter our country through a special area, CCMBL can book you the VIP entrance at the Airport that will costs 48 EUR for turn-return, which include:
- Registration of passengers;
- Launch Room service;
- Meal for passengers
- Internet, telephone and fax services
- Passengers delivery on the board;
- Luggage delivery on the board.
Visa regulation for EU citizens
Starting with the 1st of January 2007, according to the Law 151 - XVI from the 8th of June 2006 of Republic of Moldova, the visa regime for foreign people coming on the territory of Republic of Moldova is cancelled. The visa regime cancellation is applied only for citizens from EU countries, Switzerland Confederation, Island, Norway, U.S.A., Canada, Japan, the citizens from the rest of the countries need visa for entering the territory of Republic of Moldova according to the traditional visa regime for foreign people.
Get easy hotel accommodation
CCMBL also offers assistance in getting hotel accommodation for the price from 60 EUR to 180 EUR depending on clients' requests.
Access useful links
CONTACTS
For any additional information or questions don’t hesitate to contact us.
Chamber of Commerce Moldova-Belgium-Luxembourg
Chisinau city, MD-2072
Republic of Moldova
E-mail address: info@ccmbl.md
Tel: 3732 2 56-49-65
Fax: 3732 2 76-26-85
