Almost half of the draft laws promote the interests or benefits of the authors. This raises concerns as the legislative process deviates from the general public interest and is geared towards achieving private goals and interests. "Leaders in this chapter are the deputies, who in the period 2015 -2016 had 76% of the legislative initiatives that promoted the interests (private, corporatist) contrary to the public interest," said Viorel Pârvan, 15 minutes of economic realism, The IDIS Viitorul expert.
Promoting laws on interest rates leads to a decrease in the level of credibility of the Legislature and the creation of a perception in society of the corruptibility of Members who seem to be more concerned about personal interests than the interest of those who have elected them.
According to Viorel Pârvan, there is a growing discrepancy in the consultation of the business environment in the development and adoption of public economic policies at the level of the Government and within Parliament. In the Government, to a greater extent, the process of public consultation and involvement of the business environment is visible and results. For example, business associations are part of the working groups and committees created by public authorities (ministries) or even participate as members of the Premier's Economic Council.
"A draft bill submitted by a Member does not go through all stages and procedures of transparency that would be similar to those passed by a bill submitted by, for example, the Government. At the initial stage of drafting the legislative initiatives of the deputies, scientific substantiation is ignored to determine the consequences of any kind of regulations contained in them. At the same time, at this stage experts, specialists in the field and representatives of stakeholders are not always involved, so that they can promote their own opinion on the legislative initiative", Parvan added.
In conclusion, the expert said that, as a rule, the initiatives taken by the Government are more qualitative than those of the deputies. This is due to the greater capacities of the Government, its substantiation, expertise and law consultation. Even staff capacities are higher, the deputy is disadvantaged in this respect. He can have a counselor, but he does not always have the capacity to legislate. Overall, whether they are Government initiatives or Members' deputies, the quality of laws remains unsatisfactory.
The volume of projects submitted by Members in 2015-2016 is increasing compared to previous years. However, as far as government initiatives are concerned, they are fewer. Statistics show this: about 47% are the initiatives of the deputies and 53% are from the Government.
The show is made by IDIS Viitorul in partnership with Radio Free Europe.
For more details, please contact the Public Relations Coordinator IDIS Viitorul, Victor URSU at ursu.victoor@gmail.com or call 069017396.
Last week, the National Bank issued a communiqué in which it contains more detailed explanations regarding the evolution of the leu against the reference currencies. The economist, Iurie Gotisan, also explained during the 15-minute economic realism show that "the appreciation of the leu against the dollar and the euro is a factor that can reduce the rise in prices, which is so high. The strengthening of the leu is also convenient for those who have to repay credits in euros or dollars. "
A stronger lion, the importers benefit. But naturally, those with fewer lei will buy more dollars and euros to make bigger imports, but also to meet consumer preferences with cheaper imported products. Respectively, the increase in consumption gives rise to tuna and economic growth by increasing the volume of excises and taxes that are collected to the budget.
Referring to the disadvantages, Gotisan says a strong lion makes it difficult for exporters. That is, those who have exported or will deliver foreign goods will receive less ROL on the exchange. Moldovans benefiting from remittances are also affected by the appreciation. Or, if you had over 2,200 months ago, you were over 2,000 lei today, you just earn more than 2,000. Today, those who receive salaries in dollars or euros are also disadvantaging the appreciation. In addition, the appreciation of the leu would discourage those who are trying to speculate on the market.
According to the economist's forecasts, the leu will continue to appreciate for the short term. It is not excluded that at one point, the appreciation of the national currency will also show the reversal of the medal. "Some businesspeople see an exchange rate of 23-24 lei for one euro and 21-22 lei for one dollar. On the other hand, some analytical centers are predicting a rate of 19.5-20 lei for one euro and 17.5-18 lei ", concluded Gothisan.
The show is made by IDIS Viitorul in partnership with Radio Free Europe.
For more details, please contact the Public Relations Coordinator IDIS Viitorul, Victor URSU at ursu.victoor@gmail.com or call 069017396.
Small and Medium Enterprises in the Republic of Moldova have a major share in the country's economy. Thus, at the end of 2015, they held just over 97% of the total number of enterprises and provided over half of the total work places. SMEs contribute 31% to the total economy and provide 88% of the total net profit.
"However, despite these stunning figures, the outlook for the SME sector is not as optimistic. And that's because those numbers are steadily decreasing. Thus, just 5 years earlier (at the end of 2010), the SME share in no. The total number of enterprises was almost 98% (by 0.5 pp more), the share of the SME employees in the total employment employed by 59% (by 4 pp. More) and the share of SMEs in the total sales of approx. 37% (by 6 pp more)", said economist Ion Tornea explained during the show" 15 minutes of economic realism ".
The reason for the modest evolutions of the SME sector and its decline in overall economic indicators seems to lie in the remaining obstacles to growth, especially in the growth of medium-sized companies - apparently, small companies do not grow in medium-sized companies. "The causes behind the reduction no. Medium-sized companies and no. Their employees, but also their sales growth at a rate that does not even exceed the annual inflation rate, appear to be the pressures and obstacles facing these companies, but also the worsening of business conditions, primarily linked to: More difficult access to the markets (especially after the closing of the Russian market for several product categories) and (a more volatile and unpredictable macroeconomic environment (this is mainly related to rising interest rates on loans and strong fluctuations in Exchange)", said Tornea.
In conclusion, the economist said that the biggest constraints for SMEs are: the low efficiency of the implementation of the legislative base, the strong imbalance in the development of the SME sector in the territorial profile - 2/3 of all companies are concentrated in Chisinau and the poor knowledge of Export / access techniques on foreign markets and reduced export share of SMEs.
The show is made by IDIS Viitorul in partnership with Radio Free Europe.
For more details, please contact the Public Relations Coordinator IDIS Viitorul, Victor URSU at ursu.victoor@gmail.com or call 069017396.
The Moldovan economy faced harsh regional conditions and economic pressures on the part of the Russian Federation thanks to the EU's Free Trade Agreement. The Free Trade Agreement provides Moldovan manufacturers with access to a market with 500 million consumers and the development and implementation of confidence building standards in Moldovan products. However, Igor Dodon, the President of the Republic of Moldova, is trying to throw the country into the arms of the Eurasian Union, space unpredictable and where the rights of the members are ignored. It is the opinion expressed by Ion Tăbârţă, expert IDIS Viitorul within the program "15 minutes of economic realism"
In mid-April 2017, President Igor Dodon participated in Bishkek at the meeting of states in the Eurasian Community. He signed a document by which the Republic of Moldova was designated as an observer in the community, and this has sparked controversy in the Moldovan society.
Through his gestures, Igor Dodon resurrected certain geopolitical feelings. For the Republic of Moldova, which is at the confluence between the East and the West, the EU is more attractive in terms of economic development and modernization of Moldovan society. Moreover, it may come up with some solutions to the problems in the Republic of Moldova. This means economic development, rule of law, but also other aspects that relate to democratic development. On the other hand, the Eurasian Union is not a space of democracy and clear rules of play.
"The act signed by Dodon is devoid of real, institutional consistency. Rather, it is part of the logic of the behavior of a geopolitical president and not of a president representing the interests of all citizens of the Republic of Moldova. This further divides the Moldovan society, which, in the absence of a consensus among the political forces, is looking for the country's model of development, "Tăbârţă said.
Currently, from an economic point of view, the Republic of Moldova should deepen its trade relations with the EU resulting from that framework created after Chisinau signed the Association Agreement. As an argument, our country has increased its trade relations with the community space where the rules of the game are predictable. While relations with the Russian Federation are determined by political and geopolitical criteria such as the introduction of all kinds of embargoes on Moldovan agri-food products exported to the Russian market.
The show is made by IDIS Viitorul in partnership with Radio Free Europe.
For more details, please contact the Public Relations Coordinator IDIS Viitorul, Victor URSU at ursu.victoor@gmail.com or call 069017396.
The 4.5% economic growth announced by the IMF for 2017 could be shattered by excessive government debt, maintaining trade restrictions on the Russian market, diminishing the rhythm of remittances and worsening the image of the Republic of Moldova in international clashes on fighting corruption. It is the opinion expressed by journalist Vlad Bercu on the show "15 minutes of economic realism".
The IMF announced that it has unlocked a new installment of $ 21.5 million from the $ 179m loan. However, the decision to unblock the tranche comes a few weeks after the Fund revised its economic growth forecast for the Republic of Moldova to 4.5% compared to 3.5% as previously estimated.
"The growth of Moldova's economy, according to the forecast, will be double the CIS average (1.7%). Estimates are optimistic, and the IMF binds the growth of reforms, political and economic stability. Also, an important factor is the increase in investments in long-term assets and the encouraging statistical data from the beginning of the year: increased remittances, exports, and imports ", Vlad Bercu explained.
The Republic of Moldova needs a higher growth than the announced 4.5% to reach the level of the states in the region.
The journalist lists a number of factors that would hurt optimistic economic growth forecasts. These are money remittances, which although they have a positive trend since the beginning of the year, the growth rate is decreasing. Finally, we can expect a reduction in consumption that stimulates economic growth. Another factor is the excessive increase of the domestic debt to 51 billion lei as a result of the conversion of the Government guarantee for the emergency credit granted to the devalued banks. Debt puts pressure on economic growth. "We are also talking about trade restrictions on the Russian market, although some of the state institutions are talking about a resumption of exports, things are steadfast. An impediment to economic growth is the political confrontation between the government and President Igor Dodon on his initiative to organize the referendum, but also the worsening of the country's image in the international indexes on the corruption index, which discourages investments, Bercu believes.
In conclusion, Vlad Bercu stated that it remains to be seen whether the Republic of Moldova will achieve a 4.5% economic growth as forecasted.
The show is made by IDIS Viitorul in partnership with Radio Free Europe.
Central public administration reform should reduce redundant functions, exaggerated costs of maintaining inefficient organizations, and a sudden increase in how public sector employees serve the interests of the population. The Republic of Moldova is today ranked among the top European states by the number of ministries, IDIS Program Director Viorel Chivriga said in the 15 minutes of economic realism show.
Chivriga says that the optimization of governmental structures should take into account the OECD experience, the results of the functional analysis, the goals of the reform, and the reaction of the population, dictated by the socio-political context in general. "The essence of social dissatisfaction is that even though the state is very small, the number of bureaucrats is excessive, and the efficiency of state policies is so low that citizens often think they would live better without bureaucrats."
However, the reform should not be limited to mechanical staff reductions. It is not the accountants who have to decide how the structure of the future government will look, but how far there can be a public consensus on the functions assigned to the state to make order, generate quality services, ensure the development of the economy and, last but not least, Corrupt officials do not lead us. You can not have a consensus without dialogue and without credible communication between the state and civil society, business, academia and development partners.
"There are many claims to some ministries, and the time that these changes can be made is not very generous in 2017," says Viorel Chivriga.
The show is made by IDIS Viitorul in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
The Republic of Moldova has failed to boast an attractive business and investment environment. In recent years, our country has regressed in the areas of corruption, the quality of governance, justice, macroeconomic stability and the efficiency of the labor market, which also removes capital investors. It is the opinion expressed by the IDIS Viitorul economist, Ion Tornea, within the "15 minutes of economic realism" program.
The Republic of Moldova is far from being considered by most foreign investors as an attractive location for capital placement. The main issues related to the investment climate are high corruption, state policy instability in the field of business regulation, government instability, inefficient state bureaucracy, access to finance, macroeconomic instability (high inflation). Most of the countries in the region, more recently those who have joined the EU or are inclined to this status, have advanced much in these chapters. The Republic of Moldova is in direct competition with the countries in the region, and the fact that we are better at the business / investment environment compared to Tajikistan or some African countries does not help us.
"The business outlook for business declined considerably after 2009. Thus, if in the period 2005-2011 the average annual gross profit margin was approx. 6%, it fell practically continuously in the coming years - 2.2% in 2012, 1.8% in 2013, 1.4% in 2014 and 1.2% in 2015 (less than 5 times). FDI of Russia fell, representing the country with the largest share of total FDI stocks in Moldova. In the last two years, investments in the banking sector, which traditionally represent the sector with the largest FDI in the Republic of Moldova, have been drastically reduced due to bank fraud and the crisis (including image) that have followed in this sector, "said Tornea.
In conclusion, in order to improve the investment climate, the economist recommends: strengthening the rule of law conditions, diminishing corruption, ensuring the independence of the judiciary, ensuring real investor protection, harsh counteraction of business takeovers / attempts (raider attacks), reviewing the legislation Working relationships that are burdensome for the employer, and facilitating the temporary employment of aliens who possess the necessary skills and improving governance and reducing the possibilities for arbitrary and non-transparent decisions in different areas of business regulation.
The show is made by IDIS Viitorul in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
The Kroll company, which deals with the investigation of the missing billion, has published an informative note from which it is concluded that there was a well-established mechanism in the Republic of Moldova to launder stolen money from banks with dozens of trained companies. This shows how vulnerable the country is and how weak the state institutions are. This is the opinion expressed by Veaceslav Ionita, expert IDIS Viitorul in the show "15 minutes of economic realism".
From the informative note, 75 companies were involved in the embezzlement of $ 600 million, but at least six groups were involved in the bank robbery. Kroll focused on the 75 companies in the Shor Group because it is the biggest and the biggest amount was embezzled.
All those involved in bank robbery knew that they could wash that money through schemes that eventually appeared as clean money. According to Kroll's conclusions, stolen money returned to Moldova as an investment. With them were bought assets and shares in banks. Kroll knows what assets and who he bought. There was the possibility of injecting in our banking system dubious money, including bank robbery. Once you injected this money, it was already clean money. There have been concerted actions by some commercial banks that have participated in the bank robbery and no one has seen and countered that. Currently, in the Republic of Moldova there are millions of properties bought from stolen money from the three devalued banks, "Ionita explained.
The information in the Kroll information note shows how weak the institutions in the Republic of Moldova are without being able to identify bad loans from banks. Moreover, there is no mechanism to detect dubious credits at present.
"Out of the $ 600 million stolen, Kroll knows where 85% is, which makes us believe that the money will be recovered. Most of them are out of the country, "the expert concluded.
The show is made by IDIS Viitorul in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
The electronic procurement system is one of the most useful tools to increase the transparency of public procurement and the efficiency of using public money. The new electronic system launched by the Ministry of Finance by the end of 2016 aims to bring more transparency, reduce the administrative burden on the private sector, and generate savings for public authorities. This is the opinion expressed in the 15 minutes of economic realism by Diana Enachi, an economist at IDIS Viitorul.
In its opinion, the electronic procurement system will reduce bureaucracy and gradually "disappear" the paper, which will not only ease the work of the specialists and the working group on purchases but will make the procurement process more efficient. " Electronic purchasing systems is the selection of winners according to the lowest price criterion, which often does not ensure an adequate quality and contravenes the "value for money" principle. However, MTender will allow both the lowest price and the most economically advantageous tender to be used. "
"At present, the system is in the pilot phase for low-value purchases (goods and services - up to 80,000 lei, works - up to 100,000) and contracting authorities are voluntarily registered, with a test period available. Although more than 3 months have elapsed since launching, the involvement and involvement of public authorities in the system is rather modest. Accordingly, there were only 7 contracting authorities, which carried out 20 procedures, which raises doubts about the openness and transparency of public authorities, "Enachi said.
In conclusion, Diana Enachi said there is a direct dependence between transparency, competition in the sector and efficiency. Conversely, when the transparency of procurement procedures increases, the confidence and the degree of private participation in procurement procedures increase, which increases competition. But healthy competition leads to that "value for money", that is, quality services and products at competitive prices.
Authorities say that as of March 2018, the system will be fully operational, binding on all contracting authorities, and will cover the whole procurement cycle - from planning to the management and implementation of public procurement contracts.
The show is made by IDIS Viitorul in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
Following the liquidation of three devalued banks in the Republic of Moldova, international bodies have warned more about the vulnerability of the banking system as a result of dubious shareholders and obscure transactions. Subsequently, the NBM blocked two bundles of shares from two of the largest banks, but financial institutions continue to be threatened by political interests. It is Victor Ursu's opinion expressed on the show "15 minutes of economic realism".
The three largest banks Agroindbank, Moldindconbank, and Victoriabank, which hold more than 60% of the total assets in the banking system, are still under special supervision, and NBM claims that the banks' activity is not affected. At one of the banks - Victoriabank we have the share of doubtful loans of 25% of the total.
Loans have been compromised to affiliates, and the NBM is doing little for the banking sector's credibility after the millennium robbery. At the insistence of the IMF and the development partners, transparency of the shareholders of the banks was required to find the final beneficiary. Victoriabank's Board of Directors became operational only in the summer of 2016 after the bank had not had a council in 2014 by a court order. A new board of seven members was elected only in October 2015 at an extraordinary meeting of shareholders, initiated by the EBRD. However, it remained inoperable as three elected members did not submit the necessary documentation to be approved by the National Bank. It is easy to understand that arbitrary action is being taken, given that the other two banks, Moldindconbank and Agroindbank, NBM blocked significant stock packages, arguing that shareholders are acting in concert. The first is 60% and MAIB 40%, shares that would be indirectly owned by businessman Veaceslav Platon. The NBM has announced triumphantly that it has resolved the issue of shares being sold and that banks' activity is not affected.
In the case of bankruptcy of any bank in the Republic of Moldova, there is a deposit guarantee fund for individuals. At present the fund has 339.1 million lei, the money is enough to cover 57 thousand deposits worth 6000 lei. The Fund guarantees investments in domestic and foreign currency held by resident and non-resident individuals in domestic banks. For comparison, in the EU the deposit guarantee fund is 100 thousand euros. At present, the total balance of term deposits in lei is 18.3 billion lei (+ 16.5%), while those in foreign currency amount to the equivalent of 15.7 (-5%) billions of lei.
The show is made by IDIS Viitorul in partnership with Radio Free Europe.
