Activity of the Government on April 12–25, 2004

| e-journal #29 |

Decisions

Government developed a draft law on reorganising investment funds operating on the securities market into mutual investment funds due to their inefficiency on the investment market. Under the draft, shareholders would get substantial financial resources by redeeming their shares and would be able to decide whether to exchange the fund’s shares for the shares of the joint stock ventures in the fund’s portfolio. Non-mutual investment funds shall be able to redeem the shares by November 2004, at the prices set by the mutual funds. In addition, the minimal redemption price shall not be lower than 50% of the share nominal value.
Government has recently established a Coordination Committee for abolishing barriers to international transportation, as well as its membership. Vasile Iovv, Senior Deputy Minister was appointed as Committee Chair, whereas Vasile Zgardan, Minister of Transportation and Communications as Deputy Chairperson. Grigore Baltag, Chief of Industry and Infrastructure Department of the State Chancellery was appointed as the Committee Secretary. The newly established Committee will form task forces to abolish cross-border barriers in line with the Convention TIR, to simplify customs procedures and visa issuance to drivers. In addition task forces would work out procedures for abolishing technical barriers and will look at correct and simplified enforcement of the requirements on the vehicle capacity and dimensions, will adjust domestic framework and normative requirements to international standards, and develop propositions on implementing the international weighting certificate. Other actions would include improving fiscal legislation and drafting amendments providing for gradual abolishment of local and special taxes, enforcing “Green Card” insurance, annulling or decreasing fees for transit and for the amount of fuel in the tank, etc.
State Creditor Council will conclude a Memorandum with “Covoare-Ungheni” joint stock venture on restructuring its debt to the state budget. Accordingly, debts worth 15 m MDL shall be restructured for a five year period. A draft in this respect was endorsed by the Government last week. Noteworthy, “Covoare-Ungheni” activity is regulated by yet another Memorandum concluded with the State Creditor Council back in 1996. Back then the company incurred 33.8 m MDL.
So far, the company managed to pay back 56% of the total debt. Under the Memorandum, the entire debt is to be paid by June 30, 2005. A study of the economic and financial situation of the company found that it wouldn’t manage to pay back the debt in due time. Noteworthy, “Covoare-Ungheni” is a private company. In 2003 its net sales reached 75 m MDL, a 3.7 m surge over the previous year. Last year the company had a 6.8 m MDL gross profit.
Also last week, Government approved a draft law on modifying and completing the Law on Licensing several types of activities. It simplifies the procedures of issuing licences to businesses. Under the draft, second level local public administration shall be entitled to issue licenses for the retail sail of alcohol beverages and tobacco.
Another modification reduces and merges types of activity subject to the Law. Currently the law provides for 58 types of activity subject to licensing, whereas under the draft only 47. Such activities as judicial expertise, archaeological research, etc are excluded.
To de-bureaucratise licensing, it is proposed to exclude the obligation to submit a certificate to the effect that applicant has not outstanding debts to the state budget or social insurance fund. According to Zinaida Chistruga Chief of the Licensing Chamber, currently the law provides that if the applicant has such outstanding debts the license should be withdrawn. Also the move, would enable applicants to save money as authentication of relevant documents would no longer be needed.

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Activity of the Government on April 12–25, 2004

Decisions

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