Report on a project in the Republic of Moldova that attracted foreign investment: EU Project „Support for promoting exports and attracting investment in MD”

Since RM has been an independent country it has started to build a sovereign and independent state, with friendly external relations and with developed economy for the welfare of citizens. In this context the government continues to focus its efforts to improve internal and external economic conditions. Over the past few years the development of national economy continued to be influenced by a number of internal and external factors such as unfavorable weather conditions, increasing prices, the embargo on export wineries production in the Russian Federation, which had a negative effect on export-oriented industries.

Even so, RM is decided to  continue the promotion of competent and flexible policies to ensure sustainable growth of economy and European integration. EU still remains a faithful partner in support of economic reform policies. At every stage the main objective of the EU-RM cooperation consists in developing a relationship between the EU and RM, which would exceed the previous levels of cooperation, the development of policies for better economic integration, including in the energy sector, the promoting economic growth and reduction of poverty.

The European Commission has been actively involved in supporting the development of a socio-economic success in Moldova. Considering that Moldova could benefit successful and continue the specific support in promoting exports and investment of infrastructure of Moldova, the European Commission has launched a new technical assistance project for a period of two years which value is about 1.6 mln euros, called „Support to promote export and attract investment in Moldova” whose beneficiaries are the Ministry of Economy and Trade and Ministry of Agriculture and Food Industry. The project is lead by the German Company GFA Consulting Group in consortium with the Irish Company „IDI”.

The Stock Exchange is reducing speeds – is to blame the crisis? (an analysis for 2008 year)

In the 10^th month of this year it has been marked a rather precarious activism in the Stock Exchange of Moldova (SEM). It is hard to say what the reason is – perhaps the results of the international financial crises combined with internal measures to stop the growth of inflation or maybe the lack of transparency on the current activity of local companies, the lack of free shares in circulation, etc. we still have, therefore, a fairly low volume of transactions in the segment of the online exchange, quotations from several actions of interest to decrease, and only a few sparkles with large transactions on the shouting (calling) auctions segment.

Analysis of ARE Estimator-VM

At the end of October 2008, the value of the share index EVM-COMPOSITE was marking the value of 2267, 2570 points or less compared with the previous month – 34,1335 points. Therefore, after the value of index was falling during the previous two months and at the end of month it came back at the same rate, in the reference month it has not happened so. The falling of EVM-COMPOSITE index is certain.

The fallings of the index value in the reference month were due, mainly, to the price cuts to shares issued by joint stocks: CB Moldova Agroindbank SA, Franzeluta (ordinary shares), Fantasy-O, BC Moldindconbank SA (ordinary shares), Moldovahidromas, Orhei bread Factory.

The start value of EVM-COMPOSITE index is 1000 points and is fixed for the basic period in index calculation – January 1, 2006 and is available daily on the web page www.evm.md and www.stockdata.evm.md.

In October 2008, at SEM was registered a turnover of approximatively 44,61 million MDL against approx. 285 mil. MDL of the previous month, of which over 33% returns to the shouting (calling) Auctions segment and 6,4% – sale, interactive regime. The daily trade average amounts to approx. 2,1 mil. MDL. The total number of stock transactions was of 136, against of 220 for the previous month, of which 84 returned to interactive transactions. In the month subject to all stock parts were traded 43 classes of shares or less with 13 against September c.y. October   turnover has gone on five stock portions.

Sale on the online segment

The turnover of sale transactions on the online segment of the stock exchange amounted to only 2,85 mil. MDL, compared to 21 mil MDL for the same month of the previous year (2007). A larger volume was recorded with only the CB Moldova Agroindbank SA shares, 1.2 mil. MDL. Totally, interactive exchange transactions were recorded by the shares of 24 companies, versus 31 in the previous month. The most liquid shares on the basis of the operations number were those issued by SA Franzeluta (14 operations) and CB Moldova Agroindbank SA (10 operations). A shares package of a larger broadcasting has been dealt with the financial securities issued by SA North-Nectar (14.65%).

Shouting Auctions

In the shouting Auctions the turnover was much higher – 41.7 mil MDL, against 63 mild MDL in the previous month was supplied in a large part (85.5%) from the alienation of the packages of shares at SA Bread Factory from Balti (23 mil MDL, 49%) and SA Introscope (about 15 mil MDL, 28.45%). The largest package of shares tendered was issued by the SA Transportation Base No. 37 (87.85%). Totally, in that period were alienated by that process („buy all or nothing”) 19 packages of shares, including, for the first time, a package of shares issued by CB Universalbank SA.

Public Offer

In October 2008 at the SEM were registered 2 public offers of purchasing. A buyer came into possession of a package of shares worth 26.66% issued by SA Asicon, and another has become the owner of 4.4% of shares issued by the Transportation Base No 29.

Report on vending machines in Moldova

A vending machine is a coin-operated device which can be used to dispense a variety of consumer products and services. The idea is to vend products without a cashier. Items sold via vending machines are different from country to country and region. In many countries this became a very profitable business because it offers many advantages such as: immediate cash-flow, flexible hours – you are the boss, low overhead, no employees, no need to rent for an office, working from home, no bad checks, credit risks, accounts receivables, or other collection problems that typically plague business owners, no advertising cost etc.

Unfortunately, in Moldova vending machines business is not so widely spread. There are only a few products currently sold in VM such as toys, candies, coffee. These VM are placed in shopping centers, universities and are being used by kids or students mostly. There are also fortune VM placed in casinos and bus stations. Their clients are usually people who just want to try  their fortune or those who are depressed and want to spend their money hoping to get some more instead. New innovations in service VM include internet kiosks and DVD vending whose customers are usually the youth and busy people.

Very widely spread in Moldova became service VM which are placed at banks or shops and in most of the shopping centers and its customers are people who have a bank account.

These are just a few products that are distributed via VM in Moldova. I would suggest further products that could be distributed via VM like newspapers, cookies, fresh fruit, mild, cold food, and even frozen products like ice cream. Also there could be used healthy VM that offer a range of healthy beverage and snack products that are high in saturated fat and sugar. These VM could be placed in schools, universities, high traffic locations such as bus stations, shopping centers, airports and service stations.