{"id":448101,"date":"2020-03-21T15:04:20","date_gmt":"2020-03-21T15:04:20","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=448101"},"modified":"2020-03-21T15:38:59","modified_gmt":"2020-03-21T15:38:59","slug":"in-the-coronavirus-economic-crisis-attempts-to-help-the-most-affected-sectors","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/in-the-coronavirus-economic-crisis-attempts-to-help-the-most-affected-sectors\/","title":{"rendered":"In the coronavirus economic crisis: attempts to help the most affected sectors"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>The National Extraordinary Public Health Commission issued recently a decision, according to which the activity of shops, restaurants, fitness centres, concert halls, theatres, cinemas, museums must be stopped by <strong>April 1<\/strong>. The adopted measure is related to the state of emergency declared by the Parliament of the Republic of Moldova throughout the territory of the country until <strong>May 15<\/strong>.<\/p>\n<p>As a consequence, business associations from Moldova called for adoption of supporting measures to help companies mitigate the negative effects of the coronavirus outbreak.\u00a0An online <a href=\"https:\/\/www.change.org\/p\/government-of-moldova-adoptarea-m%C4%83surilor-de-urgen%C8%9B%C4%83-%C3%AEn-diminuarea-consecin%C8%9Belor-covid-19-asupra-imm-lor?fbclid=IwAR3MnUtpJaBQ056UdxqIZjEgWpU59L34ILmIJJO2lyD2mQ519nYQaUvrG9g\">petition<\/a> addressed to the Government of the Republic of Moldova was signed by thousands of citizens.<\/p>\n<p><span style=\"color: #000080\"><em>&#8220;The most powerful hit will be recorded in the case of small and medium-sized enterprises. Considering their vulnerability, the impact can be irrecoverable. Many of them will suffer major losses, some will partially or completely cease their activity, others may go bankrupt. Such areas as <strong>services, leisure, tourism, hotel, restaurants, catering, retail, event organisers<\/strong> and many others will be affected by quarantine and preventive measures,&#8221;<\/em><\/span> the petition stated.<\/p>\n<h3>Government&#8217;s list of actions<\/h3>\n<p>On March 19,\u00a0Prime Minister Ion Chicu announced a list of measures that will be taken to help business entities from Moldova during the pandemic situation. Among them are such measures as:<\/p>\n<ul>\n<li>postponing income tax payments;<\/li>\n<li>reducing VAT taxes for restaurant, hotels and catering companies;<\/li>\n<li>introducing a moratorium for tax controls;<\/li>\n<li>cancelling the compulsory audit of the individual financial statements for the year 2019;<\/li>\n<li>offering the possibility of commercial banks to reschedule mortgages for individuals and provide loans under more favourable conditions;<\/li>\n<li>increasing the Government Intervention Fund by 150 million lei, for offering bank lending guarantees to strategic economic entities, etc.<\/li>\n<\/ul>\n<p><em>&#8220;The extraordinary situation requires extraordinary measures. The crisis will generate losses, but together we will identify\u00a0solutions to reduce losses. [&#8230;] At the moment, the budget incomes are at a normal level, being 14% higher than compared to the similar period of last year. We need to identify adequate policies and measures to minimise the effects of this crisis,&#8221;<\/em> said Ion Chicu during the meeting with business associations, as a Government statement <a href=\"https:\/\/gov.md\/ro\/content\/ion-chicu-invitat-la-discutie-asociatiile-de-business\">reported<\/a>.<\/p>\n<div id=\"attachment_448102\" style=\"width: 940px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" aria-describedby=\"caption-attachment-448102\" class=\"size-full wp-image-448102\" src=\"http:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2020\/03\/gov.jpg\" alt=\"\" width=\"930\" height=\"620\" srcset=\"https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2020\/03\/gov.jpg 930w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2020\/03\/gov-300x200.jpg 300w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2020\/03\/gov-768x512.jpg 768w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2020\/03\/gov-400x267.jpg 400w\" sizes=\"(max-width: 930px) 100vw, 930px\" \/><p id=\"caption-attachment-448102\" class=\"wp-caption-text\">Source: gov.md<\/p><\/div>\n<p>The National Bank of Moldova (NBM) <a href=\"https:\/\/www.bnm.md\/ro\/content\/bnm-ajustat-instrumentele-de-politica-monetara\">announced<\/a> that\u00a0the institution will continue to use all available tools to meet the objectives of price stability and consolidation of the banking sector, which, at the moment, is declared as being well capitalised and resilient.<\/p>\n<p>However, economic experts say that the pandemic could affect the labor market and that the authorities have little room to financially help the business environment, as it is the case in European countries, but it could resort to external loans.<\/p>\n<h3>Companies&#8217; mitigation measures<\/h3>\n<p><strong>Andrei Crigan<\/strong> who is an\u00a0economist and business consultant, said that especially small and medium-sized enterprises (SME) are subject to lower incomes under the pandemic conditions, due to the pressure exercised by fixed costs such as rent, utilities and salaries.<\/p>\n<p>According to the economist, companies must make crisis plans, analysing cost cutting, contract re-negotiations and losses minimisation opportunities. <em>&#8220;In this period, the most important thing is the association with other entrepreneurs in order to exchange experience, observation of what others are doing to protect themselves, merging efforts and distributing the expenses together,&#8221;<\/em> <a href=\"https:\/\/www.moldova.org\/unele-tarile-europene-sunt-pregatite-sa-evite-colapsul-economic-care-este-situatia-in-republica-moldova\/\">explained<\/a> the specialist.<\/p>\n<p>Also, Crigan stated that it is premature to talk about how much money the state will need in order to support the business environment.<\/p>\n<p>In this regard, companies are advised to take more and more into account digital marketing activities in order to survive in such hard conditions. Offer <strong>home delivery possibilities<\/strong>, invest in <strong>digital promotion<\/strong> through social media and in <strong>situational marketing<\/strong> through corporate social responsibility are just some of them. Additionally, companies shall try to switch to <strong>online payment methods<\/strong>\u00a0and active use of <strong>contactless bank cards<\/strong>, so as to reduce the risks of COVID-19 transmission.<\/p>\n<h3>Specific industries&#8217; problems<\/h3>\n<p>Not all companies can switch to online environment though. Economic expert at Expert-Grup,\u00a0<strong>Iurie Morcot\u00eelo<\/strong>, said that companies oriented to the internal market, such as <span style=\"color: #993300\">hotels, restaurants, shops,<\/span> will be affected in the short term, because the main revenues come from direct contact with people.<\/p>\n<p>In the long run, <span style=\"color: #993300\">exports-oriented enterprises<\/span> will be affected, because consumer demand among importing countries will decrease.\u00a0<em>&#8220;We must acknowledge that public finances this year will be suffering significantly, as the volume of tax collections will be lower than anticipated at the beginning of the year. The state budget will have to be revised and many initially planned expenditures will not be disbursed,\u201d<\/em> the expert <a href=\"https:\/\/www.moldova.org\/unele-tarile-europene-sunt-pregatite-sa-evite-colapsul-economic-care-este-situatia-in-republica-moldova\/\">claimed<\/a>.<\/p>\n<p>According to the economic expert, there is a reserve fund for exceptional situations, but not for business support, while the Government could resort to external credits or increasing the domestic debt, if the volume of expenses will grow.<\/p>\n<p>Not all companies took the necessary preventive measures related to the COVID-19 pandemic situation. Activists are alarmed that work on some construction sites wasn&#8217;t stopped, as well as in many factories and service providing companies, whereas <span style=\"color: #993300\">protecting equipment wasn&#8217;t distributed to employees<\/span>.<\/p>\n<p>More than 24 thousand people have signed an online <a href=\"https:\/\/secure.avaaz.org\/ro\/community_petitions\/rosca_diana_cezara_dilevschi_haide_sa_semnam_pentru_stoparea_abuzului_la_cresterea_preturilor_la_produse_nealimentare_\/?fajeGpb&amp;fbclid=IwAR1jc0eo5yCb6EpmaZ8Qjia8ZFYbidkYDW6P_97QEM0WfSU7fjVm4I3fZIQ\">petition<\/a> signalling the <span style=\"color: #993300\">increase in food prices<\/span> and asking the authorities to take measures to protect the citizens. Meanwhile, on social networks people claim that they have observed an increase in prices for vegetables, fruits, dairy products, meat, hygiene products and disinfectants.<\/p>\n<p>On the other hand, some Moldovan companies continue to help those who fight coronavirus nowadays. Businesses donate money to hospitals in the country, support educational project of developing online learning platforms, provide e-books for free, offer free psychological consultations for doctors, cosmetic producers focus all their resources to producing disinfectants.<\/p>\n<p>Despite the losses they face during this period, several restaurants and food producing companies offer free food to doctors, taxi drivers bring doctors to work for free, young musicians organise live concerts online and groups of volunteers are organised to take care of their elderly neighbours by going to stores or pharmacies instead of them. Everyone who can afford it is advised to stay home.<\/p>\n<p>See also:\u00a0<a href=\"https:\/\/www.moldova.org\/en\/when-facing-hard-times-moldovans-acts-of-kindness-during-coronavirus-outbreak\/\"><span style=\"color: #000080\"><em>When facing hard times: Moldovans\u2019 acts of kindness during the coronavirus outbreak<\/em><\/span><\/a><\/p>\n<p>Photo:\u00a0<a href=\"https:\/\/unsplash.com\/@adeolueletu?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Adeolu Eletu<\/a>\u00a0|<a href=\"https:\/\/unsplash.com\/s\/photos\/financial-crisis?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Unsplash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>The National Extraordinary Public Health Commission issued recently a decision, according to which the activity of shops, restaurants, fitness centres, concert halls, theatres, cinemas, museums must be stopped by April 1. The adopted measure is related to the state of emergency declared by the Parliament of the Republic of Moldova throughout the territory of the [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":448103,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,4,56,11],"tags":[79,609,381,35,649,27,634,608],"class_list":["post-448101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-society","category-reportaje","category-tourism-en","tag-business","tag-coronavirus","tag-crisis","tag-important","tag-losses","tag-moldova","tag-outbreak","tag-pandemic"],"content_social_share":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>The National Extraordinary Public Health Commission issued recently a decision, according to which the activity of shops, restaurants, fitness centres, concert halls, theatres, cinemas, museums must be stopped by <strong>April 1<\/strong>. The adopted measure is related to the state of emergency declared by the Parliament of the Republic of Moldova throughout the territory of the country until <strong>May 15<\/strong>.<\/p>\n<p>As a consequence, business associations from Moldova called for adoption of supporting measures to help companies mitigate the negative effects of the coronavirus outbreak.\u00a0An online <a href=\"https:\/\/www.change.org\/p\/government-of-moldova-adoptarea-m%C4%83surilor-de-urgen%C8%9B%C4%83-%C3%AEn-diminuarea-consecin%C8%9Belor-covid-19-asupra-imm-lor?fbclid=IwAR3MnUtpJaBQ056UdxqIZjEgWpU59L34ILmIJJO2lyD2mQ519nYQaUvrG9g\">petition<\/a> addressed to the Government of the Republic of Moldova was signed by thousands of citizens.<\/p>\n<p><span style=\"color: #000080\"><em>&#8220;The most powerful hit will be recorded in the case of small and medium-sized enterprises. Considering their vulnerability, the impact can be irrecoverable. Many of them will suffer major losses, some will partially or completely cease their activity, others may go bankrupt. Such areas as <strong>services, leisure, tourism, hotel, restaurants, catering, retail, event organisers<\/strong> and many others will be affected by quarantine and preventive measures,&#8221;<\/em><\/span> the petition stated.<\/p>\n<h3>Government&#8217;s list of actions<\/h3>\n<p>On March 19,\u00a0Prime Minister Ion Chicu announced a list of measures that will be taken to help business entities from Moldova during the pandemic situation. Among them are such measures as:<\/p>\n<ul>\n<li>postponing income tax payments;<\/li>\n<li>reducing VAT taxes for restaurant, hotels and catering companies;<\/li>\n<li>introducing a moratorium for tax controls;<\/li>\n<li>cancelling the compulsory audit of the individual financial statements for the year 2019;<\/li>\n<li>offering the possibility of commercial banks to reschedule mortgages for individuals and provide loans under more favourable conditions;<\/li>\n<li>increasing the Government Intervention Fund by 150 million lei, for offering bank lending guarantees to strategic economic entities, etc.<\/li>\n<\/ul>\n<p><em>&#8220;The extraordinary situation requires extraordinary measures. The crisis will generate losses, but together we will identify\u00a0solutions to reduce losses. [&#8230;] At the moment, the budget incomes are at a normal level, being 14% higher than compared to the similar period of last year. We need to identify adequate policies and measures to minimise the effects of this crisis,&#8221;<\/em> said Ion Chicu during the meeting with business associations, as a Government statement <a href=\"https:\/\/gov.md\/ro\/content\/ion-chicu-invitat-la-discutie-asociatiile-de-business\">reported<\/a>.<\/p>\n<div id=\"attachment_448102\" style=\"width: 940px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" aria-describedby=\"caption-attachment-448102\" class=\"size-full wp-image-448102\" src=\"http:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2020\/03\/gov.jpg\" alt=\"\" width=\"930\" height=\"620\" srcset=\"https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2020\/03\/gov.jpg 930w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2020\/03\/gov-300x200.jpg 300w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2020\/03\/gov-768x512.jpg 768w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2020\/03\/gov-400x267.jpg 400w\" sizes=\"(max-width: 930px) 100vw, 930px\" \/><p id=\"caption-attachment-448102\" class=\"wp-caption-text\">Source: gov.md<\/p><\/div>\n<p>The National Bank of Moldova (NBM) <a href=\"https:\/\/www.bnm.md\/ro\/content\/bnm-ajustat-instrumentele-de-politica-monetara\">announced<\/a> that\u00a0the institution will continue to use all available tools to meet the objectives of price stability and consolidation of the banking sector, which, at the moment, is declared as being well capitalised and resilient.<\/p>\n<p>However, economic experts say that the pandemic could affect the labor market and that the authorities have little room to financially help the business environment, as it is the case in European countries, but it could resort to external loans.<\/p>\n<h3>Companies&#8217; mitigation measures<\/h3>\n<p><strong>Andrei Crigan<\/strong> who is an\u00a0economist and business consultant, said that especially small and medium-sized enterprises (SME) are subject to lower incomes under the pandemic conditions, due to the pressure exercised by fixed costs such as rent, utilities and salaries.<\/p>\n<p>According to the economist, companies must make crisis plans, analysing cost cutting, contract re-negotiations and losses minimisation opportunities. <em>&#8220;In this period, the most important thing is the association with other entrepreneurs in order to exchange experience, observation of what others are doing to protect themselves, merging efforts and distributing the expenses together,&#8221;<\/em> <a href=\"https:\/\/www.moldova.org\/unele-tarile-europene-sunt-pregatite-sa-evite-colapsul-economic-care-este-situatia-in-republica-moldova\/\">explained<\/a> the specialist.<\/p>\n<p>Also, Crigan stated that it is premature to talk about how much money the state will need in order to support the business environment.<\/p>\n<p>In this regard, companies are advised to take more and more into account digital marketing activities in order to survive in such hard conditions. Offer <strong>home delivery possibilities<\/strong>, invest in <strong>digital promotion<\/strong> through social media and in <strong>situational marketing<\/strong> through corporate social responsibility are just some of them. Additionally, companies shall try to switch to <strong>online payment methods<\/strong>\u00a0and active use of <strong>contactless bank cards<\/strong>, so as to reduce the risks of COVID-19 transmission.<\/p>\n<h3>Specific industries&#8217; problems<\/h3>\n<p>Not all companies can switch to online environment though. Economic expert at Expert-Grup,\u00a0<strong>Iurie Morcot\u00eelo<\/strong>, said that companies oriented to the internal market, such as <span style=\"color: #993300\">hotels, restaurants, shops,<\/span> will be affected in the short term, because the main revenues come from direct contact with people.<\/p>\n<p>In the long run, <span style=\"color: #993300\">exports-oriented enterprises<\/span> will be affected, because consumer demand among importing countries will decrease.\u00a0<em>&#8220;We must acknowledge that public finances this year will be suffering significantly, as the volume of tax collections will be lower than anticipated at the beginning of the year. The state budget will have to be revised and many initially planned expenditures will not be disbursed,\u201d<\/em> the expert <a href=\"https:\/\/www.moldova.org\/unele-tarile-europene-sunt-pregatite-sa-evite-colapsul-economic-care-este-situatia-in-republica-moldova\/\">claimed<\/a>.<\/p>\n<p>According to the economic expert, there is a reserve fund for exceptional situations, but not for business support, while the Government could resort to external credits or increasing the domestic debt, if the volume of expenses will grow.<\/p>\n<p>Not all companies took the necessary preventive measures related to the COVID-19 pandemic situation. Activists are alarmed that work on some construction sites wasn&#8217;t stopped, as well as in many factories and service providing companies, whereas <span style=\"color: #993300\">protecting equipment wasn&#8217;t distributed to employees<\/span>.<\/p>\n<p>More than 24 thousand people have signed an online <a href=\"https:\/\/secure.avaaz.org\/ro\/community_petitions\/rosca_diana_cezara_dilevschi_haide_sa_semnam_pentru_stoparea_abuzului_la_cresterea_preturilor_la_produse_nealimentare_\/?fajeGpb&amp;fbclid=IwAR1jc0eo5yCb6EpmaZ8Qjia8ZFYbidkYDW6P_97QEM0WfSU7fjVm4I3fZIQ\">petition<\/a> signalling the <span style=\"color: #993300\">increase in food prices<\/span> and asking the authorities to take measures to protect the citizens. Meanwhile, on social networks people claim that they have observed an increase in prices for vegetables, fruits, dairy products, meat, hygiene products and disinfectants.<\/p>\n<p>On the other hand, some Moldovan companies continue to help those who fight coronavirus nowadays. Businesses donate money to hospitals in the country, support educational project of developing online learning platforms, provide e-books for free, offer free psychological consultations for doctors, cosmetic producers focus all their resources to producing disinfectants.<\/p>\n<p>Despite the losses they face during this period, several restaurants and food producing companies offer free food to doctors, taxi drivers bring doctors to work for free, young musicians organise live concerts online and groups of volunteers are organised to take care of their elderly neighbours by going to stores or pharmacies instead of them. Everyone who can afford it is advised to stay home.<\/p>\n<p>See also:\u00a0<a href=\"https:\/\/www.moldova.org\/en\/when-facing-hard-times-moldovans-acts-of-kindness-during-coronavirus-outbreak\/\"><span style=\"color: #000080\"><em>When facing hard times: Moldovans\u2019 acts of kindness during the coronavirus outbreak<\/em><\/span><\/a><\/p>\n<p>Photo:\u00a0<a href=\"https:\/\/unsplash.com\/@adeolueletu?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Adeolu Eletu<\/a>\u00a0|<a href=\"https:\/\/unsplash.com\/s\/photos\/financial-crisis?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Unsplash<\/a><\/p>\n<div class='heateorSssClear'><\/div><div  class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https:\/\/www.moldova.org\/en\/in-the-coronavirus-economic-crisis-attempts-to-help-the-most-affected-sectors\/' data-heateor-sss-no-counts=\"1\"><div class='heateor_sss_sharing_title' 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