EBA MOLDOVA

DRIVER FOR CHANGE

ANNUAL REVIEW 2017 17 CContentsontents

MESSAGE OF EBA HONORARY PRESIDENT 4 BUSINESS SUPPORT 44 • WORKSHOPS 45 MESSAGE OF EBA PRESIDENT 5 • BUSINESS BREAKFAST 47 BRIEF MACROECONOMIC ANALYSIS 6 • BUSINESS NETWORKING EVENTS 49 EBA BOARD 10 • GENERAL ASSEMBLIES • EBA COOPERATION WITH 51 EBA MEMBERS 12 DEVELOPMENT PARTNERS EBA TEAM 17 BUSINESS PROMOTION MOLDOVA – EU 53 EBA AREAS OF ACTIVITY 18 • EBA MODLOVA’S ACTIVITIES 53 WORLDWIDE BUSINESS ENVIRONMENT 19 • EBA SECTOR COMMITTEES 20 AUDIT REPORT 58 30 Vlaicu Pîrcălab str. • PUBLIC-PRIVATE DIALOGUE 22 MEMBERS DIRECTORY 62 Chișinău • PUBLICATIONS 23 www.eba.md • ECONOMIC COUNCIL TO THE PRIME 24 MINISTER OF THE RM 022 907 025 • FOREIGN OUTREACH 26 • TECHNICAL MEETINGS 28 • BUSINESS ENVIRONMENT ISSUES 31 • EBA MOLDOVA SUPPORTING 43 AUTOMOTIVE SECTOR

| www.eba.md 3 on various Public Private Dialogue Platforms. EBA has continued and signifi cantly increased promoting expectations of European and EU related economic agents and advocacy activities in a number of Dear Members, important sectors such as tax policy, food safety, trade facilitation, waste management, data protection which are aimed to support EU business and to bring European standards of doing business in Moldova. As a result of this dynamic agenda during 2017 - 14 new Over the last years the European Business Association has members have joined EBA (increase by 25%) that is now accounting emerged as one of the leading business associations of the almost 60 companies in its membership. Republic of Moldova. Over 2017 EBA members had the occasion to meet important EU missions to Moldova, including with EU Commissioners for Trade and Today our association has almost 60 members consisting Health in order to discuss the real implementation of the DCFTA. These of subsidiaries of companies originating from European Peter Michalko discussions also touched the grounds on a number of practical issues Union member states as well as of other companies that are Thomas Moser Head of EU Delegation in RM actively trading with the European single market. Among our EBA President EBA Honorary President faced by businesses in the context of international trade that have been also shared with Moldovan authorities. members are some of Moldova’s largest investors, exporters Danube Logistics and employers as well as an increasing number of medium- The year 2017 was marked by signifi cant progress in implementation EBA has carried out an impressive activity in terms of producing more sized companies that manage to successfully expand their environment, to enhance the capacity of our members as well as of the DCFTA as well in overall EU – Republic of Moldova cooperation. than 30 position papers refl ecting upon a series of legal amendments business as a result of the Deep and Comprehensive Free Trade to promote business between Moldova and the European Union. The economic integration have been improving and delivering the in the context of aligning Moldovan legislation and good practices to Agreement with the European Union. Our work in regard to improving Moldova’s business environment most expected results. We are proud to mention that the EU has the EU aquis. With the support of the EU Delegation, EBA developed has again shown encouraging results. Through our initiatives strengthened its position of the fi rst trading partner of Moldova. Two an update of the Main developments a ecting the business climate in The year 2017 was marked among other issues by the restructuring and our constructive policy dialogue with the Government and thirds of Moldova’s exports went to the EU in 2017 while investments the context of the DCFTA. of the public administration, the National Bank’s e orts to the Parliament we were able to provide important input in a coming from the EU are constantly increasing and were more than 55 strengthen Moldova’s banking sector and numerous legislative I would like to congratulate EBA and its members on the achieved large number of primary and secondary legislation relevant for % from existing overall FDI’s volume. initiatives to improve Moldova’s business environment such as results and wish them prosperity and a lot of success in keeping the international trade and investments in Moldova. The Government continued necessary reforms in order to ensure right track towards economic Integration of Moldova with the EU, as important amendments to the labor code. Exports to the European fi nancial and macro-economic stability following the massive banking important partner to the Government in the reform implementation single market increased by 19.9% and constituted 65.9% of the total The high quality of the EBA’s work is not only appreciated by crisis. However, additional e orts in the banking fraud investigation process to ensure the benefi ts of the joint e ort to the citizens of the exports. At the same time investors from the European Union were Moldova’s authorities but has also by the international donor as well as in improvement of business and investment climate, fi ght RM. once more responsible for the majority of foreign direct investments community. As a result, we were able to successfully co-operate in Moldova, amounting more than 80% in 2017 originated from the with various international cooperation partners on projects that against corruption and relevant improvements in the justice sector are It is my personal honour that from September I fulfi l 2017 the role of EU and were primarily responsible for the creation of a substantial enable the EBA to achieve its objectives. still required, so that Moldova and its economy can make full use of the Honorary President of the EBA. I am confi dent that the excellent co- number of additional jobs during the course of the last year. opportunities created by the current high level of relations with the EU. operation between the EU Delegation and EBA will further develop and I would like to thank all of our members, the Delegation of the European Business Association proved to be one of the leading deepen. We have a common goal: to bring the Republic of Moldova Throughout 2017 the EBA has made good progress in all European Union to Moldova, the Moldovan authorities and our business support organizations and one of the most active members closer to the European Union, with the aim to increase its prosperity. of its areas of activities, which aim to improve the business partners for the excellent co-operation in 2017.

4 Annual Report | 2017 | www.eba.md 5 Brief macroeconomic analysis

Macroeconomic Indicators Trade

Macroeconomic statistics shows that the GDP registered an increase of 4.5% in real terms in 2017. The infl ation rate The European Union continues to be the most important external trade partner of Moldova, the has temperate from 5.4% in the beginning of the year to 0.6% in December 2017. Gross average nominal salary for share of exports being in increase over the last years. the fourth quarter of 2017 was 6113.6 MDL, registering an increase of 12.4 % comparing to same period of 2016.

The gap in the evolution of exports and imports The Republic of Moldova increased by 21 positions The share of exports to EU countries represents Also, the EU is the main imports partner for Moldova, led to the accumulation in the year 2017 of a trade in the “Starting a Business” indicator, from 44th to 65.9% of total Moldovan exports. Deliveries of goods at the same time, the growing share of exports balance defi cit of $ 2406.3 million, with USD 431.3 23rd. Moldova is ranked 44 among 190 economies to this group of countries accounted 1596.9 million in combination with growing share of imports million (+ 21.8%) higher than in 2016. in the Ease of Doing Business, according to the USD (an increase by 19.9% compared to 2016). The contributes positively to the Moldovan trade fl ow. latest World Bank annual ratings. main partners are Romania (24.8% of total exports), Italy (9.7%), Germany (6.9%), Great Britain (5.6%), Poland (4.2%) and Bulgaria (3.2%)

Top 10 exported goods from Moldova in 2017 Moldovan exports to regions in 2015-2017, thousands USD

GDP 4,5% 0 100 200 300 400 100% Insulated wire, cable and other insulated... 301,27 90% Sunfl ower seed 197,81 80% 70% 1 331 EU Infl ation 5,4 0,6 Wine of fresh grapes, including fortifi ed wines 128,37 1 215 587,51 1 596 903,6 60% 898,45 Wheat and meslin 105,24 50% Nuts, fresh or died 98,64 40% Other Trade Seats, whether or not convertible into beds 96,22 30% 256 955,26 Medicaments 61,73 mil. USD 298 527,05 365 308,44 balance 21,8% 20% Maize 53,65 492 294,53 CIS 10% 414 185,25 462 906,3 defi cit 51,33 Fruit juices 0% Sunfl ower seed 51,33 2015 2016 2017

6 Annual Report | 2017 | www.eba.md 7 Foreign direct investments

The imports from EU accounted 2389,1 million USD an increase by 21,1% compared to 2016. The goods a imported Foreign direct investments (FDI) in 2017 registered the accumulated value of 39,2 million USD. The biggest investors mainly from Romania (+25,9% compared to 2016), Germany (+23,4%), Italy (+18%), Poland (+25,4%), France (+25,3%), for Moldova come from the EU Member States: the Netherlands, Spain, France, Cyprus, Romania, Italy and Germany. being the main trade partners of the Republic of Moldova.

Moldovan imports from regions in 2015-2017, thousands USD Top 10 imported goods in Moldova in 2017 Main source regions of FDI in Moldova Main sectors benefi ting from FDI 100% 0 100 200 300 400 500 90% Petroleum oils and oils obtained from bituminous... 463,5 80% Medicaments 203,86 1 954 250,91 1 973 711,55 2 389 113,27 Financial and insurance 70% EU Petroleum gases and other gaseous hydrocarbons 167,54 60% Motor cars and other motor vehicles 145,72 Other 10% 102,08 50% Other Insulated wire, cable and other insulated electric... 13% Manufacturing 13% 40% 1 014 458,35 Telephone sets, induding telephones for cellular... 74,94 6% 1 019 203,3 1 236 238,97 mil. USD CIS 30% Cooper wire 66,77 1% CIS 6% Trade 20% Insecticides 65,77 4% 1 018 110,76 1 027 442,11 1 206 060 10% Cigars, cheroots, cigarilos and cigarettes 62,61 15% 0% Electrical energy 56,98 Energy 2015 2016 2017 Information and communications 26% Goods produced by the industrial enterprises of the EU Transport Industry Republic of Moldova in 2017 increased by 3.4% compared 81% 25% Real estate with 2016. transaction

The main factors which led to the growth of the industrial Evolution of industries in 2017 Other 45% sector are: the expand of the foreign investor’s activities, 40% especially in the automotive sector, the positive 35% developments in the agricultural sector that stimulated the 30% growth of the food industry, the increase of domestic and 25% 20% 42,90% foreign demand for national industrial products, due to the 15% The European Union, its member states and institutions, European Commission, GIZ Moldova, Swiss Cooperation, opening of the foreign markets and the implementation 10% Austrian Development Agency, Swedish International Development Authority, EBRD and Romania are among the biggest 5% 6,40% 7,80% development partners of Moldova. Following a request by the Republic of Moldova, the European Commission adopted for of the international economic cooperation agreements. 4,50% 1,70% 0% -3,70% Extractive industry and energy sector registered a decrease -5% 2017 a proposal for a Macro-Financial Assistance programme of up to 100 million Euro, out of which up to EUR 40 million with 3.7% and 1.7% in 2017. Manufacturing Food Beverage Automotive Extractive Energy would be provided in grants and up to EUR 60 million in medium-term loans at favorable fi nancing conditions.

8 Annual Report | 2017 | www.eba.md 9 EBA Board

Thomas Jose Luis Gomez Juan Luis Wolfgang Lerke Moser Pascua Martin Ortigosa

EBA President Danube EBA Vicepresident Gas Banca Comerciala Romana Moldo-German Business Logistics Natural Fenosa Chisinau Association

Antoine Maxim Diana Alexandru Turcan Karoly Alexandru Gozun Gabizon Banaga Neagu Szalai

Mobiasbanca – Groupe Sudzucker Moldova Vernon David Turcan Cazac METRO Cash&Carry PwC Moldova Société Générale Law Firm Moldova

10 Annual Report | 2017 | www.eba.md 11 Industry profi le EBA Members of the EBA Members

Gold Members Countries of origin

MOLDOVA Wholesale / retail 5.25% AUSTRIA IT & electronic Agro & food processors FRANCE communications 7% Silver Members 26,25% Manufacturing ITALY 7% Energy sector GERMANY 3,50% Logistics ROMANIA Members 3,50% NETHERLANDS

GREAT BRITAIN Business consulting Services TURKEY 17,50% 17,50% JAPAN Financial institutions SWEDEN 12,25%

SPAIN Employees Turnover GREECE 18 782 866 mln euro USA

12 Annual Report | 2017 | www.eba.md 13 14 Annual Report | 2017 | www.eba.md 15 MARIANA RUFA EBA Vision Executive Director EBA Ensures the full executive and administrative authority for EBA, developing the EBA strategy, work plans and budgets, managing recruitment of member corporations, facilitating partnerships, projects, and co-operations The EBA Vision is to enable & drive the full establishment of European business practices and values in for the benefi t of EBA, and handling contact to EBA Sector Committees. Team Supports the team in the lobby and advocacy process, services, project Moldova, wishing to promote and contribute to the harmonization of economy of Moldova and the EU. management and press & media work.

ION CEBANU Executive Assistant & Events Manager Provides administrative support and manages the daily o ce tasks of the organisation. Maintains protocolar EBA Mission correspondence. Takes care of projects implementation and reporting. Ensures the smooth-running and organization of EBA events, trainings and seminars.

The EBA is one of the main business hubs for Moldovan and foreign entities aimed at: ALEXANDRA POPA • Facilitating domestic and foreign trade; Lobby & Policy Manager • Improving business climate through di erent communication platforms; Develops and organizes the lobby work for EBA, drafting position papers, representing EBA at meetings and • Bolstering foreign investments; working groups in relevant public–private platforms and organizations. Assists the Executive Director in her e orts towards lobby issues, building up and keeping an active network with relevant stakeholders for lobby • Promoting business activities between EU and the RM. and advocacy work. Supports project management and leads Sector Committees meetings.

ANA-MARIA URSU Communication & Service Manager Is responsible for developing and implementing the communication strategy, and for provision of business support services. Maintains and updates communication vehicles such as website, newsletter, press releases, Operation Manual social media, and others.

EBA has developed and released a comprehensive Operation Manual, keeping a full documentation HENRIK KUFFNER of all policies, procedures, processes, strategies and rules within EBA. Senior Advisor The EBA Operational Manual is a milestone for the association in regard to its institutional protection and the further sustainable growth and development. Advises EBA on institutional, organisational matters and on internal structural issues. Builds up an international business network for the benefi t of EBA. Ensures the development of the service department for EBA, general support on marketing issues and all-over support on HR issues.

16 Annual Report | 2017 | www.eba.md 17 EBA Areas of Activity BusinessBusiness Environment Environment

Business Environment

Business 1334 25 Support PPD PlatformsPosition Papers Progress on Initiatives

Business Promotion Moldova-EU

18 Annual Report | 2017 | www.eba.md 19 EBABusi Sectorness Committees Environment

Tax & Health, safety & Agriculture & HR Automotive Customs Environment agro-processinig Committee Committee Committee Committee committee

TATIANA TRAIAN DUMITRU DIANA EDUARD ALEXANDRU STAVINSCHI NECHIFOR VICOL NEAGU GURIN BORDEIANU Senior Manager Tax Country Manager, General Director, Partner, Associate, Finance Director, & Legal Services, Coca-Cola Hellenic Monicol Vernon David Vernon David Draexlmaier PwC Moldova Moldova Automotives, Moldova

20 Annual Report | 2017 | www.eba.md 21 PublicBusi nPrivateess Env Dialogueironment Publications How EBA informes its stake holders National International on the private sector Platforms: Platforms:

• Parliamentary Commissions • European Business Organisation World Wide • Economic Council to the Prime Minister Network • Customs Service Advisory Committee • European Commission (DG Trade, DG Near, DG • Tax Inspectorate Advisory Committee Energy) • Ministry of Economy Working Group on Regulation • European Parliament of Business Activity • OECD • Ministry of Finance Technical Working Groups • IMF • Tax & Customs Policy Development • EBRD • E-public Procurement • World Bank The Publication on DCFTA Business Climate • Tax Code Development • IFC Doc from December 2017 is focused on • Ministry of Environment Technical Working Groups revealing the key issues faced by the business community a number of sectors such as foreign trade, customs procedures, food safety energy sector, telecommunications, fi nancial sector, rule of law etc. The issues have been collected not only from the EBA members but a wider spectrum and are presented at a rather technical level within a specifi c sector.

22 Annual Report | 2017 | www.eba.md 23 EBABusi - chairness of Envtradei facilitationronmen t EBABusi COOPERATIONness Env ironment working group in the Economic UNDER ECONOMIC COUNCIL Council to the Prime Minister

The Economic Council to the Prime Minister is one of the main Public-Private Dialog Platform where EBA is the chair of Trade Facilitation Committee. During the 2017, EBA As the main tangible results has managed to address key issues faced by business achieved, the following can be Meeting on environment through participation at the working groups listed: Data Protection Legislation and technical meetings organised within the Council. Below is the list of issues that have been tackled by EBA • Amendment of the Law under the PM Economic Council. 1540/1998 on Payments for Environmental Pollution in December 2017

• Payments for Environmental Pollution • Approval of the Regulation concerning the organization • Dual education reform of programs for technical • Domestic trade professional training through dual education • Labour, civil, fi scal, code reforms Evaluation meeting • Amendment of the Labour Code Meeting on improving Customs Evaluation procedure with Prime Minister, Pavel Filip • Meat processing industry (36 amendments) • Placing the advertising objectives on national and regional roads • Approval of the modifi cations on • Social insurance the Road Law in December 2017 • Data protection • Approval of the Law on meal tickets in September 2017 • Meal tickets • Electricity market regulation • Regulatory Framework on Tobacco Products • Customs evaluation Meeting on Meeting with Prime Minister Meeting on addressing Sanctioning System in the RM on business climate issues Food Safety related issues.

24 Annual Report | 2017 | www.eba.md 25 BFOREIGNusin OUTREACHess Environment EBA - an active member within international Public Private Platforms

EBA participated at the 9th PPD EBA Board meets Head of Unit Workshop organised EBA participated at the reunion of World Wide Network, in Brussels, June 2017. DG Trade, Mr. Petros Sourmelis by the World Bank, Tunis, May 2017.

EBA Members meet EU Commissioner for Health and Food Safety, Mr. Vytenis Andriukaitis to address on food safety issues Meeting with EU Commissioner for Trade, Mrs. Cecilia Malmstrom faced by Moldovan importers and exporters. EBA o ce, Chisinau.

26 Annual Report | 2017 | www.eba.md 27 BConferencesusiness co-organised Envi rbyo EBAnm Moldova.ent Technical meetings to support the EBA business environment agenda

MINISTRY OF FINANCE CUSTOMS SERVICE ON: ON:

MINISTRY OF ECONOMY • Tax & Customs policy development • Legal proposals on electronic PARLIAMENT OF THE RM ON: • Regulation on booking & commerce legislation ON: amortisation of fi xed assets • Customs Valuation - legal proposals • Polllution Tax, implementation of on electronic commerce legislation • Domestic Trade Law Extended Producers Responsibility • Rules of Origin • Labour Code • Road Tax • New system of electronic Public • Issues in the export of walnuts onto • Pollution Tax • ANTA Regulation Aquisition EU Market • Meal ticket legislation • Energy Market Regulation Presentation of Key Business Issues Briefi ngs in RM • Optimisation of invoicing system in • Electronic declaration of goods • Wastes Management legislation (Document elaborated by EBA) • Advertising of Alcohol products Moldova • Proposals to the draft legislation on advertisment MINISTRY OF AGRICULTURE EU DELEGATION ON: ON:

• Waste incineration legislation • Presenting the issues on • Pollution tax reporting system Over 2017, EBA participated in more than reforms implementation to EU Counsellors • Legislation on consumer 87 meetings in the context of national and protection european private-public dialogue platforms

ANSA COMPETITION COUNCIL (FOOD SAFETY AGENCY) Black Sea Trade & Development Bank Regional Business Forum ON: ON:

• Draft Code of good practices MINISTRY OF JUSTICE ECONOMIC COUNCIL TO THE • Domestic trade law between retailers & producers ON: PRIME MINISTER • Issues faced by meet processing • Domestic Trade Law companies • Data protection • Wastes Management • Business Package Reform of • Labour Code regulation/ Food Wastes the sanctioning system of the Treatment requirements economic activity • Labour migration legislation • Dual education regulation • Surveillance of establishments • Legal proposals to the draft law on requirements of Civil Code • Legal proposal to upgrade the tertiary education system in Moldova implementations • Control & Inspection reform • Food safety certifi cation • Customs Valuation Legislative perspectives 2017 - News and surprises organised by KPMG & Vernon David • Food safety certifi cation

28 Annual Report | 2017 | www.eba.md 30 BTECHNICALusiness MEETINGS Environment Business Education System Reform To support the EBA business environment agenda Implementation of Dual environment issues Education and Improving Tertiary Education in Moldova

Draft Regulation on Dual Education Waste Management Legislation Issues: EBA Actions: Meeting on setting up the Packing Meeting on Pollution Taxes & wastes Meeting on Amendments to Law 1540/1998 on Payments for Environmental Pollution Association with the support of EBA management legislation AEO Simplifi cation procedure • Adjusting the legal framework considering the labour • Position Paper addressed to the Ministry of Education, market demand driven professions required by the busi- Culture and Research, Ministry of Health, Labour and So- ness community and economic realities, with a special fo- cial Protection, Economic Council to the Prime Minister Issues: EBA Actions: cus on engineering and technology professions under the and GIZ Moldova; • Disproportionate tax quotas applied to packaging, espe- • Position Paper addressed to the Parliament, Govern- Governmental Training Plan for specialists with funding • Regular meetings and discussions in the Economic cially for food products; ment, Ministry of Finance, Ministry of Economy and In- from the state budget for the academic year 2017-2018; Council (Committee on Labour Market Flexibility), in- frastructure and Ministry of Agriculture, Rural Develop- • Lack of a mechanism providing exemption and reim- • Adjusting the Classifi cation of Professions according to cluding participation of business environment repre- ment and Environment; bursement of environmental pollution taxes applied to the existing trends and industry upgrade; sentatives, public authorities and development partners packaging / goods / products intended for export; • Organization of the workshop on “Waste Incineration - Best focusing on presentation of the proposals to improve • Initiating the review process of the existing fi nancing practices of EU member states – the experience of France”; the Government Decision on the organization of voca- • Di culties faced businesses in determining the taxable mechanism for the tertiary education in Moldova, with tional training programs through dual education. subjects and the correct calculation of the payments, as • Organization of training sessions on implementation of the view of increasing resource e ciency, better payroll well as those linked to the specifi cs of the tax adminis- EU best practices in the area of waste management sys- and upgrading the teaching sta skills in educational in- Meeting on foodsafety certifi cation Meeting on Tax policy Meeting on tration and control performed by the State Fiscal Service tems for packaging and WEEE in Moldova; stitutions at all levels; with Andrei Balan, ANSA implementation issues National Trade Facilitation Plan and the State Environmental Inspectorate; Status: • Meetings and discussions in the Parliament (Committee • Lack of regulatory framework on dual education system • The Regulation on organization of programs for technical • Concerns of the economic operators related to the pen- for economy, budget and fi nance), Economic Council to in the Republic of Moldova; professional training through dual education has been alties applied for tax non-payment and in case of sub- the Prime Minister working group on Trade Facilitation • Improving the curricula at all levels in the education sec- approved by Government Decision nr. 70 on 22.01.2018 mitting incorrectly fi lled out tax declarations; (chaired by EBA), Ministry of Finance, State Tax Service tor so as to meet the demand of the private sector; and includes the recommendations addressed by EBA. and the State Environmental Inspectorate. • Harmonisation of the Moldovan legislation with the EU • Ensuring the necessary amendments to the Labour legislation, by implementing the Extended Producer Re- Code in accordance with best international practices in sponsibility principle in the waste management system the implementation of dual education in the RM; in Moldova and establishing an adequate management Status: of payments in this regard. • The pollution tax rates have been adjusted as recom- • Required professional training of young people to meet mended by EBA; the urgent demand of qualifi ed specialists in the fi eld of engineering and manufacturing; • The amendments to the law have been approved in Sep- Meeting on IMF Review Meetings Meeting with Private Sector tember and December 2017. • Technical barriers (taxation, employment relations, etc.) to be Customs Evaluation procedure with Business Community on Waste Management Legislation addressed in the implementation process of dual education.

31 Annual Report | 2017 32 Annual Report | 2017 | www.eba.md 33 LegislationBusiness on Domestic Envir Tradeonment Labour Code Reform Amendments to the Law on Domestic Trade Draft Law amending the Labour Code Issues: EBA Actions: Issues: Status: • The conditionality of food products returns depending • Position Paper addressed to the Parliament, Prime Minister, • Several provisions of the Labour Code require a serious • The amendments to the Labour Code have been ap- on the expiry date and product category; Ministry of Economy and Infrastructure, Economic Council review in order to eliminate the defi ciencies, which create proved by the Parliament with the recommendations ad- to the Prime Minister, National Agency for Food Safety; confusion, contradictions and di culties in the Code’s dressed by EBA; • Unclear regulation of the relationship between suppliers application, as well as revision of the labour norms con- and retailers; • Regular meetings and discussions with the related au- • The most important amendments refer to: the emplo- sidering the dynamics of the labour market in the current thorities in order to improve the draft law; yee’s obligation to provide justifi cation in due time in • Establishment of trade discounts to 10% of the supplier’s economic realities; case of absence; elimination of employer’s obligation sales price, making this provision inconsistent with the • Addressing the issue at the EBA Business Breakfast • Discrimination against employees who are not members to submit the approved sta ng lists to the labour in- basic principles of e ective and loyal competition; with the Minister of Economy and Infrastructure; of trade unions; spection authority; provision on fi xed-term contracts for • Reduced period for marketing and advertising activities; • Addressing the issue with DG Trade and the European employment of foreigners; establishing the probation • Reform of the labour code is essential to stimulate addi- Commission; period for young employees; elimination of employer’s tional investments in the export-oriented, labour-inten- • The requirement of the trader to purchase and ensure obligation to justify the decision on dismissal unsatis- sive manufacturing (e.g. automotive, textile) and service shelf life of food products from the short food sup- • Active participation in public debates on the issue. factory probation period result; activation of dismissal sectors (e.g. ICT, BPO). ply chain in the proportion of at least 50% of the linear for all contraventions and crimes against unit’s property; length of the commercial shelf; Status: termination of employment contract upon retirement • Amendments to the Contravention Code. EBA Actions: age; dismissal of trade union members employees with • The EBA recommendations have been included in the preliminary consultation of the trade union body, instead draft law, which is currently in the process of fi nal review • Position Paper with necessary amendments proposed to of its agreement; reducing the unpaid additional leave in the Parliament. improve the Labour Code addressed to the Government, from 6 to 4 years; defi nition of serious violation of labour Ministry of Education, Culture and Research, Ministry of obligations and regulation in a separate article, etc. Health, Labour and Social Protection, Economic Council Draft Code of Good Practice between Retailer and Suppliers to the Prime Minister, GIZ; Issues: EBA Actions: • Regular weekly meetings and discussions in the work- ing group of the Economic Council to the Prime Minister • Unclear regulation of the relationship between suppliers • Position Paper addressed to the Competition Council, focused on drafting the Labour Code amendments. and traders; Ministry of Economy and Infrastructure; • Inconsistency of the proposed Draft Code with the ex- • Regular meetings and discussions with relevant authori- isting legislation regulating the domestic trade and with ties and business environment representatives. international practices dealing with the issue of good practices between retailers and suppliers. Status: • The draft Code of Good Practices has been approved by the Competition Council and is applicable based on the principle of commitments in relation to the signatory un- dertakings concerned.

34 Annual Report | 2017 | www.eba.md 35 LegalBusi Frameworkness Env on Advertisingironm ent Meat Processing Sector Amendments to the Law on Roads Improving supervision in the application of the legal framework Issues: EBA Actions: Issues: EBA Actions: • The proposed amendments have a negative impact on • Position Paper with necessary amendments proposed • Violation of food safety requirements in relation to prod- • Position Paper addressed to the Prime Minister, Minis- businesses in the area of outdoor advertising and local to improve the law addressed to the Parliament, Ministry ucts of animal origin and their components by certain try of Economy and Infrastructure, Ministry of Health, budgets, due to signifi cant revenue and job cuts; of Economy and Infrastructure, Ministry of Finance, Eco- meat producers and processors, due to the practice of Labour and Social Protection, Economic Council to the nomic Council to the Prime Minister; returning the expired meat products from retail chains Prime Minister, National Food Safety Agency and Fiscal • Banning on placement of outdoor advertising objects in and smaller shops back to processors for the repeated State Service and European Union Delegation in the Re- the public road area; • Regular meetings and discussions with the relevant eco- reprocessing and a further supply into the retail chains; public of Moldova; nomic operators and public authorities. • Inconsistency of the legal framework concerning its ap- • Enhance food safety control and supervision procedures • Regular meetings and discussions with the relevant plication in terms of advertising objects placement on to counter the return of expired meat products from retail- economic operators and public authorities (Ministry of national and regional roads, and related fi scal obliga- ers to producers and halt the re-sale of these products; Economy and Infrastructure, Economic Council to the tions associated to this activity; Status: Prime Minister, National Food Safety Agency); • The most signifi cant proposals included in the position • Meat defi cit on the Moldovan market and fi nancial loss- • Lack of a clear defi nition of the scope of the Law on papers have been considered in the amending draft law; es incurred by the meat processing industry due to high- • Addressing the issue related to the possibility of increas- Roads. er costs at imports of meat in the aftermath of the import ing the import quotas from EU at the meeting with Ms. • The draft law entered into force in December 2017. quotas from EU being exhausted; Cecilia Malmström, European Commissioner for Trade; Social Insurance Legislation Status: • The Law on Domestic Trade establishes the prohibition on Amendments to the Law on State Social Security Budget returns of expired food products from retailers to produc- ers/processors, however supervision by relevant authori- ties on the application of the law shall be strengthened; Issues: EBA Actions: • National Food Safety Agency enhanced its control and supervision of the establishments in order to prevent the • Lack of predictability and transparency principles in the process • Joint Position Paper with other business associations return of expired meat products from retailers to produc- of amending the law on the state social security budget without addressed to the Parliament, Prime Minister, Ministry of ers/processors; any economic and fi nancial impact assessment being provided; Labour and Social Protection and Ministry of Finance; • The risk management mechanism in control and su- • Elimination of the limit for the calculation of individual social se- • Meetings and discussions with relevant economic op- pervision of food safety requirements needs systemic curity contributions will increase the tax burden on employees; erators and public authorities. revision in order to tackle the vulnerabilities of specifi c • Re-establishing the limit for the calculation of the indi- industries and product categories. vidual social security contributions would lead to elimi- nation of signifi cant costs risk incurred by the State So- Status: cial Security Budget; • The most signifi cant issues indicated in the position pa- pers have been taken into consideration in the draft law. • The amount of the fi nes and penalties needs to be aligned according to the tax legislation in force.

36 Annual Report | 2017 | www.eba.md 37 DataBusi Protectionness FrameworkEnvironment Meal Tickets Amendments to Law on Personal Data Protection and Law on National Centre for Personal Data Protection Law on Meal Tickets Issues: EBA Actions: Issues: EBA Actions: • Maintaining the existing mechanism in the national leg- • Position Paper addressed to the Parliament, Ministry of • Regulatory measures in the area of personal data protec- • Position Paper addressed to National Centre for Person- islation based on the voluntary principle of the employer Economy and Infrastructure, Ministry of Finance, Eco- tion, in particular those concerning sanctions and penal- al Data Protection (NCPDP) and Economic Council to the in application of the meal plans for employees; nomic Council to the Prime Minister. ties, shall consider the economic scenario at the level of Prime Minister. each country in general, as well as assessing the operators’ • Lack meal ticket validity and the indication of the mini- • Regular meetings and discussions with the economic • Regular meetings and discussions between EBA mem- readiness to cope with the newly proposed legislation; mum ticket value (25 MDL), which should remain at the operators and relevant authorities. bers and the data protection authority. discretion of the companies; • Application of the personal data protection provisions both, at the EU level and in the EU Member States, is • Lack of provision clearly determining the relationship Status: part of a long process with gradual legislation review; Status: between the employer and the operator, concerning the specifi ed situations of refund, return and exchange of • The nominal value of a meal ticket per working day was • The proposed amendments shall respect the principle of • The draft law is being reviewed by the NCPDP and in- meal tickets; approved as between 35 and 45 MDL and the voluntary proportionality, especially at regulation of business activity ternational experts within the EU Twinning Project ”Ca- principle has been preserved; so that any administrative and fi nancial burden of the new pacity Building of the National Center for Personal Data • Developing a clear and non-interpretable primary and provisions is not detrimental to the interests of big compa- Protection of the Republic of Moldova” considering the secondary regulatory framework. • The Law on meal tickets entered into force in September nies that activate transparently and of SMEs, that risk to be recommendations addressed by EBA. 2017. incapable of coping with the newly proposed obligations. Reform of the Civil Code Tax Policy Draft Law amending the Civil Code Amendments to the Tax Code Issues: EBA Actions: Issues: EBA Actions: • Lack of a concept coordinated with the National Commis- • Position Papers addressed to the Government, Ministry • Negative impact on employees due to the requirement on • Position Paper addressed to the Ministry of Finance, sion for Financial Markets on the structure and content of of Justice, National Commission for Financial Markets; the new regulations regulating the area of insurance; declaring the extra income earned from the Trade Union Ministry of Economy and Infrastructure; • Meetings and discussions with private sector and rel- Committee and paying the income tax and as a conse- • Meetings and discussions with private sector and rel- • Need to develop a regulatory impact assessment on the evant public authorities; quence the employees’ refusal to be part of Trade Unions; evant public authorities; introduction of new concepts, such as succession in the • Reduced time (1 January 2018) for transition to the new cal- insurance contract; culation method of the individual attrition of fi xed assets; • Support adjustment of some defi nitions and provisions Status: • Lack of a deadline to declare the income obtained by Status: in the Civil Code that are not in accordance with the in- • The most signifi cant issues indicated in the position pa- non-residents from foreign companies for their activity • The most signifi cant issues indicated in the position pa- surance principles. pers have been addressed in the draft law; in the Republic of Moldova; pers were taken into consideration for modifi cation. • Recommendations concerning the provisions regulating • The amendments to the law were approved in December • Negative e ect of the increased income tax obtained from the status of the administrator, the bodies of the legal 2017. the delivery of phytotechnics and horticulture products; person, transportation contracts etc.

38 Annual Report | 2017 | www.eba.md 39 EnergyBusi Marketness Regulation Environment Legislation on State Inspections Draft Law on Energy Amendments to the legal framework on state inspections Issues: EBA Actions: Issues: EBA Actions: • Application of fi nancial penalties in the established • Position Paper addressed to the Parliament, European • Implement institutional reforms at inspection authori- • Position Paper addressed to the Economic Council to the amount may cause damaging e ects on the operators’ Commission and Energy Community. ties as well as the clarifi cation of the control functions Prime Minister; activity by determining their inability to pay and inducing assigned to each of them; • Regular meetings and discussions in the Economic Coun- the enterprise in insolvency; • Development of checklists of documents for each in- cil, with participation of reform partners (IFC, World Bank • Required provision on the need to obtain the opinion of Status: spection; Group) on improving the draft legal framework. the Energy Community Secretariat prior to the amend- • The draft of the new Law on energy has entered into • Amendments to the Contravention Code and to the ments on the energy legal framework, especially con- force as of October 2017. Code of Criminal Procedure; cerning the regulation of electricity tari s; Status: • Development of necessary IT infrastructure in order to • Regulating the possibility on accountability of National • The draft law amending the state inspection function of sev- ensure the functioning of the electronic State Register of Energy Regulation Agency (ANRE) sta , including its eral authorities and secondary legislation establishing the Inspections. management, as a result of violation of mandatory rules control procedure checklists and completing the institutional in its activity; reform of control bodies has been approved by the Parliament. Modifi cation of the Tari Methodology on Electricity Distribution Advertising of Alcohol Products Issues: EBA Actions: Regulations on advertising of alcohol products • Premature amendment of the existing Tari Methodol- • Position Paper addressed to the Working Group on regu- ogy on Electricity Distribution (valid until March 2018); lation of the business activity in the Ministry of Economy (RIA Working Group). • Defi ciencies in ensuring the transparency of the consul- Issues: EBA Actions: tation procedure; • Discussions in the Working Group on regulation of the • EBA supports the measures directed to ensuring the • Position Paper addressed to Ministry of Health, Labour and business activity in the Ministry of Economy and in the • Failure to present a legally motivated decision of ANRE public health policy objectives; Social Protection, Ministry of Economy and Infrastructure public debates organized by National Energy Regulation to amend the existing Methodology; and Economic Council to the Prime Minister; Agency. • However, emphasizing the need of a correct regulation • Breach of key principles regulating the business activity in terms of production requirements depending on types • Regular discussions and meetings with the private sector (predictability, transparency and proportionality). of alcohol products and a balanced regime on advertis- and relevant authorities. ing that comes in line with the EU regulations. • Arbitrary measures a ecting negatively the rights of in- Status: vestors. • The amendments to the Tari Methodology on Elec- tricity Distribution has been approved without su cient Status: consideration of the recommendations from the operators • The draft law has been approved by the Parliament and and the Energy Community. includes the main recommendations addressed by EBA, although the legal framework on advertising is under continuous review.

40 Annual Report | 2017 | www.eba.md 41 Business Environment EBA MOLDOVA Retail Trade SUPPORTINGBusiness AUTOMOTIVE Enviro nmSECTORent Regulatory Framework on Tobacco Products In December 2016, EBA created the automotive committee, presided by Draexlmaier Automotives, Moldova. Over 2017 EBA enriched its Business Enviroment agenda In June 2017, EBA was the o cial partner of the Moldova Issues: EBA Actions: with issues faced by biggest employers, including automotive Automotive Days, event organised by MIEPO and Ministry • Lack of a subsidiary regulatory framework for the pack- • Position Paper addressed to the Parliament, Government, companies such as: of Economy for the fi rst time in Moldova with the support of aging and labelling of tobacco products; Ministry of Health, Labour and Social Protection, Minis- - Meal tickets GIZ. The event united the biggest automotive industry, stake- try of Economy and Infrastructure, Ministry of Agriculture, - Labour Code holders such as private and public entities from Moldova and • Strong demand for the elaboration of a regulation on Regional Development and Environment, Parliamentary - Customs procedures (AEO simplifi cations) abroad. More thann 400 people participated at the event. health warnings and labelling of tobacco products; Committee for economy, budget and fi nance, Parliamen- - Dual Education Regulation • Alignment of the secondary legislation to the legisla- tary Committee for social protection, health and family; tive framework in force, by abolishing the Order of the • Regular discussions and meetings with the relevant au- Ministry of Agriculture and Food Industry no. 140 of thorities. 18.07.2008; • Need to approve the electronic health warnings library. Status: Ministry of Agriculture, Regional Development and Envi- ronment has proposed to abolish the Order no. 140/2008, proposal that was rejected by the Ministry of Health, La- bour and Social Protection.

42 Annual Report | 2017 | www.eba.md 43 WORKSHOPSBusiness Support Business Organised by EBA Moldova Support

Practical workshop on Tax implications related to Customs Procedures Delivered by: Raluca Loredana Udroiu, Manager, Tax Assistance Services – KPMG, Romania 1012 494 26 Practical workshop on Labour inspection. Presentation of the Draft Government Practical workshop on Fraud and WorkshopsNetworking Participants Speakers Decree on the list of acts/procedures Compliance and Security of IT Systems. events and subjected to an eventual inspection Trends and challenges Delivered by: Delivered by: The State Labour Inspectorate; Daniel Varzaru, Alin Becheanu, George business Sergiu Morari, Head of Direction Labor Advanced workshop on Implementation of Dragusin - Association for Preventing Regulatory Impact Assessment breakfasts relations and Social partnership - Ministry of and Eliminating Fraud (APCF), Romania Delivered by: Roman Ladus, Director of Euro Health, Labour and Social Protection Management Group

Workshop on the Draft Regulation on organizing and carrying out dual education in Republic of Moldova Practical workshop on Waste Incineration. Best practices of EU member states – the experience of France Delivered by: Viorica Bejan, Advisor; Victoria Cotici, Advisor; Oana Vodita, Manager - Delivered by: Pierre Tournier, Incinerator director of Energy Structural Reform in Vocational Education and Training Project Recovery and Waste Treatment Unit, France

44 Annual Report | 2017 | www.eba.md 45 WORKSHOPSBusiness Support BUSINESSBusiness BREAKFASTS Support Organised by EBA under the USAID Moldova Competitiveness Project

Workshop for Benefi ciary BSOs: Elaboration of lobby and advocacy Workshop for Benefi ciary BSOs: Strategic Management in a BSO agenda within a BSO Delivered by: Henrik Ku ner, International CIM Expert, EBA Delivered by: Mariana Rufa, Executive Director EBA EBA members meet the Director General of Customs Service, Mr. Vitalie Vrabie and Heads of Departments from Customs Service

EBA members meet the International Workshop for Benefi ciary BSOs: Elaboration of a position paper in a Workshop for Benefi ciary BSOs: Communication process in a BSO Monetary Fund (IMF) Resident EBA members meet the Governor of National Bank of business association Delivered by: Ana Hajdau, Communications & Service Manager, Delivered by: Mariana Rufa, Executive Director EBA EBA; Henrik Ku ner, International CIM Expert, EBA Representative in the Republic of Moldova, Mr. Sergiu Cioclea Moldova, Mrs. Armine Khachatryan

46 Annual Report | 2017 | www.eba.md 47 BUSINESSBusiness BREAKFASTS Support BUSINESSBusiness Support NETWORKING EVENTS

EBA Back to action networking event

EBA members meet the Director of Center for Reforms EBA members meet the Minister of Economy and Implementation, Mr. Iurie Ciocan Infrastructure, Mr. Octavian Calmic

EBA members meet the Head of EBRD o ce in Moldova, Mr. EBA members meet the Dimitri Gvindadze & Managing Director, Economics, Policy President of the Parliament of and Governance, EBRD, Dr. Mattia Romani Moldova, Mr. Andrian Candu

48 Annual Report | 2017 | www.eba.md 49 Head of EU Delegation & EBA Honorary President, HE Mr. Pirkka Tapiola, Farewell Reception EBA cooperation with development partners

Welcome Reception for the new Head of EU Delegation & EBA Honorary President, HE Mr. Peter Michalko

50 Annual Report | 2017 | www.eba.md 51 EBA enhancing capacities BUSINESS PROMOTION of local Business Support Organisations under the USAID Moldova MOLDOVA – EU Competitiveness Project. EBA MODLOVA’s activities WORLDWIDE

EBA participated EBA is an active • APIUS The Light Industry Employer's Association Participation of at the World participant within EBA is an active EBA contributed • FSEA The Foreign Small Enterprise Alliance EBA in the study Bank PPD Award World Bank/IFC participant in the to creating a trip to Brussels on – PM Economic Trade Facilitation EBA Worldwide new Association EBA Moldova • ANTRIM The National Association for Inbound Tourism in Moldova EU best practices Council Moldova reunions with a Network heading of producers contributed to on creating WASTE got the FIRST set of concrete the Central and and importers setting up EBA MANAGEMENT PRIZE FOR MOST proposals for South European of packaging in Georgia, EBA 25 coaching sessions & workshops have been organised with each individual BSO or in a group SYSTEMS INNOVATIVE PPD change EBA Network Moldova Armenia format on such subjects as: - how to set up lobby and advocacy agenda • how to develop position papers • how to set up sector committees • what are the internal bylaws (internal operation manual) of an organisation • communication with members • Budget planning • tax policy process • how to organise General Assemblies

6 Position Papers produced on: • Food Safety Certifi cation • Tourism Law • Pension Law • Tertiary Education • Customs Valuation

52 Annual Report | 2017 | www.eba.md 53 25th of May General Assembly and Reception

On May 25, EBA members held the General Assembly session, followed by a business networking reception in the exquisite atmosphere of the Mimi castle.

The meeting was aimed at: • Approving the Annual Report for 2016; • Presenting the Q1 & Q2 2017 progress report; • Approving the 2016 Audit Report • Business networking The meeting was attended by the EBA Honorary President, HE Mr. Pirkka Tapiola, EBA Members, International Donors and partners.

54 Annual Report | 2017 | www.eba.md 55 5th of December EBA 6-year Anniversary General Assembly and Reception

On December 5, 2017, EBA Moldova organized the General Assembly with its members, followed by a reception at the National Museum of Ethnography and Natural History, to celebrate EBA 6-year Anniversary.

The General Assembly was aimed at: • Presenting the Activity Review of Q3-Q4/2017 and the 2018 Action Plan, highlighting the key performance indicators, new EBA members, policy dialogue issues, new EBA Membership Concept, as well as other EBA activities in the local and international business environment. • Election of the EBA President – with a unanimous votes given for Thomas Moser who got re-elected for the second mandate, as EBA President. Over the 6 years reception, EBA was honored by the presence of H.E. Mr. Peter Michalko, Honorary President of the EBA and Head of the EU Delegation in the Republic of Moldova and Iulia Costin, State General Secretary. Among the guests of the reception were also other representatives of the Delegation of the European Union to the Republic of Moldova, diplomatic corps, representatives of public authorities as well as various international cooperation partners and donors

56 Annual Report | 2017 | www.eba.md 57 Auditor’s responsibility for the audit of fi nancial statements of expressing an opinion on the e ectiveness of the Association’s internal control. The objectives of our audit are to obtain reasonable assurance AUDIT about whether the fi nancial statements as a whole are free from • Evaluate the appropriateness of accounting policies used material misstatement, whether due to fraud or error, and to issue and the reasonableness of accounting estimates and related an auditor’s report that includes our opinion. Reasonable assurance disclosures made by management. is a high level of assurance, but is not a guarantee that an audit • Conclude on the appropriateness of management’s use of REPORT conducted in accordance with NAS will always detect a material accounting on a going concern basis and determine, based misstatement when it exists. Misstatements can arise from fraud or on audit evidence obtained, whether a material uncertainty error and are considered material if, individually or in the aggregate, exists related to events or conditions that may cast signifi cant To: Board of directors of the European Business Association; they could reasonably be expected to infl uence the economic doubt on the Association’s ability to continue as a going decisions of users taken on the basis of these fi nancial statements. Opinion Other matters concern. If we conclude that a material uncertainty exists, As part of an audit in accordance with NAS, we exercise we are required to draw attention in our auditor’s report We have audited the accompanying fi nancial statements of Our report is intended solely for the information and use of professional judgment and maintain professional scepticism to the related disclosures in the fi nancial statements or, if the European Business Association in Moldova (hereinafter Board of directors of the European Business Association and for throughout the planning and performance of the audit. We also: such disclosures are inadequate, to modify our opinion. Our “Association”), which comprise the balance sheet as at 31 Association’s management. To the fullest extent permitted by conclusions are based on the audit evidence obtained up December 2017, the statement of income and expenses, the applicable law, we do not accept and do not assume liability to • Identify and assess the risks of material misstatement of the to the date of our auditor’s report. However, future events or statement of changes in fi nancing sources for the year then ended anyone other than the Association and the Association’s Board of fi nancial statements, whether due to fraud or error, design conditions may cause the Association to cease to continue and notes to the fi nancial statements, including a summary of director for our audit, for this report, or for our opinion. and perform audit procedures responsive to those risks, as a going concern. signifi cant accounting policies. and obtain audit evidence that is su cient and appropriate The fi nancial statements as of and for the year ended 31 December to provide a basis for our opinion. The risk of not detecting • Evaluate the overall presentation, structure and content of the In our opinion, the accompanying fi nancial statements are 2016 were audited by other auditors who expressed an unqualifi ed a material misstatement resulting from fraud is higher than fi nancial statements, including the disclosures, and whether prepared, in all material respects, in accordance with the National opinion. for one resulting from error, as fraud may involve collusion, the fi nancial statements represent the underlying transactions Accounting Standards (hereinafter “NAS”), Methodical Indications Responsibilities of management for the fi nancial statements forgery, intentional omissions, misrepresentations, or the and events in a manner that achieves fair presentation. regarding the Accounting Particularities for Non-Commercial override of internal control. Organisations and accounting policies described in the Notes to Management is responsible for the preparation and fair We communicate with those charged with governance regarding, the fi nancial statements. presentation of these fi nancial statements in accordance with • Obtain an understanding of internal control relevant to among other matters, the planned scope and timing of the audit National Accounting Standards, Methodical Indications regarding the audit in order to design audit procedures that are and signifi cant audit fi ndings, including any signifi cant defi ciencies Basis for opinion the Accounting Particularities for Non-Commercial Organisations appropriate in the circumstances, but not for the purpose in internal control that we identify during our audit. We conducted our audit in accordance with International Standards and accounting policies described in the Notes to the fi nancial on Auditing (ISAs). Our responsibilities under those standards are statements, and for such internal control as management further described in the Auditor’s responsibility for the audit of determines is necessary to enable the preparation of the fi nancial fi nancial statements section of our report. We are independent of statements that are free from material misstatement, whether due the Association and the East European Foundation in accordance to fraud or error. with the International Ethics Standards Board for Accountants’ In preparing the fi nancial statements, management is responsible Code of Ethics for Professional Accountants (IESBA Code) for assessing the Association’s ability to continue as going concern, together with the ethical requirements that are relevant to our NOTE: disclosing, as applicable, matters related to going concern and audit of the fi nancial statements in the Republic of Moldova, and using the going concern basis of accounting unless management The balance sheet as at 31 December 2017 and the statement of income balance sheet as at 31 December 2017, the statement of income and we have fulfi lled our other ethical responsibilities in accordance and expenses for the year ended 31 December 2017 are an extract expenses and the statements of changes in fi nancing sources for the year either intends to liquidate the Association or to cease operations, with these requirements and the IESBA Code. We believe that the from the full set of EBA fi nancial statements prepared, in all material ended 31 December 2017, and a summary of signifi cant accounting policies or has no realistic alternative but to do so. respects, in accordance with National Accounting Standards, Methodical and other explanatory notes. The full set of the fi nancial statements were audit evidence we have obtained is su cient and appropriate to Indications regarding the Accounting Particularities for Non-Commercial audited by Grant Thornton S.R.L., independent auditor of the EBA, who provide a basis for our opinion. Those charged with governance are responsible for overseeing Organizations and accounting policies described in the Notes to the issued an unmodifi ed audit opinion on 4 May 2018 for the year ended 31 the Association’s fi nancial reporting process. fi nancial statements. The full set of fi nancial statements comprise the December 2017.

58 Annual Report | 2017 ROW NO. NOTES 31 DECEMBER 2017 31 DECEMBER 2016 ROW NO. NOTES 31 DECEMBER 2017 31 DECEMBER 2016

ASSETS Non-current liabilities Non-current assets LONG TERM SPECIAL PURPOSE FINANCING AND RECEIPTS 270 59,145 161,751 INTANGIBLE ASSETS 010 19,708 17,932 OTHER LONG TERM LIABILITIES 290 19,606 43,225 TANGIBLE ASSETS 040 12,948 41,907 TOTAL NON-CURRENT LIABILITIES 300 78,751 204,976 TOTAL NON-CURRENT ASSETS 070 32,656 59,839

Current liabilities Current assets TRADE PAYABLES AND ADVANCES RECEIVED 330 81,50977,798 549,91182,388 TRADE RECEIVABLES AND CURRENT PREPAYMENTS 110 1,146 211,181 PAYABLES TO EMPLOYEES 340 91,398 90,625

RECEIVABLES FROM THE BUDGET 120 52,861 56,155 PAYABLES TO THE BUDGET 360 19,626 47,649

CASH AND CASH EQUIVALENTS 150 124,323 229,843 OTHER CURRENT LIABILITIES 380 3,763

TOTAL CURRENT ASSETS 180 243,440 565,742 TOTAL CURRENT LIABILITIES 390 188,822 224,425

TOTAL ASSETS 190 276,096 625,581 TOTAL EQUITY AND LIABILITIES 400 276,096 625,581

INCOME RELATED TO 010 5 2,150,599 1,931,168 EQUITY AND LIABILITIES SPECIAL PURPOSE SOURCES EXPENSES RELATED TO 020 6 (2,150,599) (1,931,168) Equity SPECIAL PURPOSE SOURCES SURPLUS (DEFICIT) SPECIAL 030 NET SURPLUS OF THE PERIOD 210 81,509 483,745 PURPOSE SOURCES

NON-CURRENT ASSETS FUND 230 8,523 16,514 INCOME FROM ECONOMIC ACTIVITY 070 4 332,578 1,186,300 OWN FINANCING FUND 240 (81,509) (304,079) EXPENSES FROM ECONOMIC ACTIVITY 080 6 (251,069) (636,389) TOTAL EQUITY 260 8,523 196,180 RESULT: PROFIT FROM ECONOMIC ACTIVITY 090

INCOME TAX EXPENSE 100 6 (66,166)

SURPLUS FOR THE YEAR 110 81,509 483,745

60 Annual Report | 2017 | www.eba.md 61 BCR Chisinau SA Type: Banking Tel: (+373 22) 265 000 / 852 000 Fax: (+373 22) 265 002 / 852 002 MEMBERS Info BCR Chișinău: 0 800 22 227 / (+373 22) 265 555, 852 555 Email: o [email protected] Address: 60/2, A. Pușkin St., MD-2005, Chisinau, Moldova Website: www.bcr.md Directory CEO: Juan Luis Martin Ortigosa

BC Energbank SA Type: Banking Tel: (+373 22) 858 000 Fax: (+373 22) 858 080 BC Moldova Agroindbank SA Type: Financial Institution Email: o [email protected] Tel: (+373 22) 222 770 / 216 685 Address: 23/3 Tighina str., MD-2001, Chișinău, Moldova Fax: (+373 22) 228 058 / 242 781 Website: www.energbank.com Email: [email protected] President: Iurii Vasilachi Address: 9/1, Constantin Tănase St., MD-2005, Chișinău, Moldova BC “Mobiasbanca – Groupe Type: Banking Website: www.maib.md Société Générale” S.A. Tel: (+373 22) 256 456 Chairman: Serghei Cebotari Fax: (+373 22) 541 974 Email: [email protected] Address: 81a, Stefan cel Mare si Sfant blvd.Chisinau, MD-2012 Type: Banking JS FinComBank S.A. Website: www.mobiasbanca.md Tel: (+373 22) 269 900 / 269 999 President: Antoine Gabizon Fax: (+373 22) 237 308 Email: fi ncom@fi ncombank.com Address: 26, Puskin St., MD-2012, Chișinău, Moldova ICS RED Union Fenosa SA Type: Energy Website: www.fi ncombank.com Tel: (+373 22) 431 111 President: Victor Hvorostovschii Fax: (+373 22) 431 675 Email: [email protected] Address: 4, A. Doga St., MD-2024, Chișinău, Moldova Kaufl and SRL Type: Wholesale of food and non-food products Website: www.gasnaturalfenosa.md Tel: +40 725 533 752 Country Manager: Jose Luis Gomez Pascual Email: dona-gabriela.rapciuga@kaufl and.md Address: 29, Sfatul Ţării str., MD-2012 Chisinau, Moldova Website: www.kaufl and.md IM Efes Vitanta Type: Beverages Project Director Moldova Breweryy SA Tel: (+373 22) 885 201 Rep. of Moldova: Dona Rapciuga Fax: (+37322) 410 103 General Director: Marco Volker Hößl Email: [email protected]/ [email protected] Address: 167, Uzinelor St., MD-2023, Chișinău, Moldova Website: www.berechisinau.md Managing Director: Gökçe Yanaşmayan

62 Annual Report | 2017 | www.eba.md 63 IM Moldcell SA Type: Mobile Communication Services Agro SZM SRL Type: Food; Agriculture Tel: (+373 22) 206 999 / 206 141 Tel: (+373 22) 202 333 Fax: (+373 22) 206 207 Fax: (+373 22) 240 707 Email: [email protected] Email: [email protected] Address: 3, Belgrad St., MD-2060, Chișinău, Moldova Address: 19, Timiș St., MD-2009, Chișinău, Moldova Website: www.moldcell.md Website: www.suedzucker.md General Manager: Barkin Secen Board Speaker: Alexander Koss

ICS Vernon David SRL Type: Legal Services for Business Agrosfera BM SRL Type: Production and processing of agricultural products Tel: (+373 22) 260 922 Tel: (0236) 64 555 Fax: (+373 22) 210 445 Fax: (0236) 64 555 Email: [email protected] Email: [email protected] Address: 49, Alexandru cel Bun St., 3rd fl oor, Address: r. Ungheni, v. Pârlita MD-2012, Chișinău, Moldova CEO: Andrei Buzovoi Website: www.dalegal.ro Partner: Diana Neagu BAA Efrim Roșca Type: Legal, business advisory and tax assistance Managing și Asociaţii Tel: (+373 22) 238 301 Partner: Charles Vernon Fax: (+373 22) 238303 Email: [email protected] Address: 72 Bucuresti Str., Chisinau MD-2012, Moldova METRO Cash & Carry Type: Consumer Goods Partner: Oleg Efrim Moldova SRL Tel: (+373 22) 405 201 Fax: (+373 22) 319 326 BC EXIMBANK Gruppo Type: Banking Email: [email protected] Tel: (+373 22) 301 102 Address: 5, Chișinăului St., Stăuceni, Veneto Banca SA Fax: (373 22) 601 611 MD-4839, Chișinău, Moldova Email: [email protected] Website: www.metro.md Address: 171/1, Stefan cel Mare si Sfi nt Blvd, CEO: Karoly Szalai MD-2004 Chisinau, Moldova Website: www.eximbank.com ABS SRL Type: Recycling company General Director: Alfredo Anzani Tel: (+373 22) 551 540 Fax: (+373 22) 533 998 BDR Associates-Strategic Type: Consulting; PR & Communication Email: o [email protected] Communication Tel: (+373 22) 214 156 Address: 9, Gradina Botanica str, MD-2004, Chisinau, Moldova Fax: (+373 22) 854 605 Website: www.abs.md Email: o [email protected] CEO: Vutcarau Vlada Address: 202, Ștefan cel Mare Bd., Kentford Business Center, 8th Floor, MD-2004, Chișinău, Republic of Moldova Website: www.bdr.md Managing Director of the representative o ce: Svetlana Japalău

64 Annual Report | 2017 | www.eba.md 65 Biroul asociat de avocati Type: Legal Services for Business Edenred MD Type: Service Discount Company Turcan Cazac Tel: (+373 22) 212 031 Tel: (+373) 60 50 21 13 Email: [email protected]; Email: [email protected] [email protected] Address: Str. Vasile Alecsandri 141 B, Address: 47/1-5, A. Pușkin St., MD-2005, Chișinău, Moldova etajul 1, Chisinau Website: www.turcanlaw.md Website: www.edenred.md Managing Project Manager: Dorin Corcimaru Partner: Alexander Turcan Ernst & Young SRL Type: Assurance Services, Tax Services, Advisory Services Brodsky Uskov Looper Reed Type: Legal services and consulting Tel: (+373 22) 214 040 și Partnerii SRL Tel: (+373 22) 23 23 24 Fax: (+373 22) 214 044 Fax: (+373 22) 23 51 86 Email: ey.o [email protected] Email: [email protected] Address: 51, Alexandru cel Bun St., MD-2012, Chișinău, Moldova Address: 17, Mihail Kogalniceanu str, Website: www.ey.com MD-2001, Chisinau, Moldova Director: Alexandru Sipitca Website: www.bulr.com CEO: Taisia Gherciu Farm Meat Processing LLC Type: Food/beverages Coca-Cola Imbuteliere Type: Non-Alcoholic Ready-to-Drink Tel: (+373) 61 061 666 Chisinau SRL Tel: (+373 22) 471 040 Fax: (+373 22) 26 43 22 Fax: (+373 22) 472 489 Email: [email protected] Email: [email protected] Address: 121, Muncesti Highway, MD-2002, Chisinau, Moldova Address: 42, Industriala St., MD-2023, Chișinău, Moldova CEO: Radion Melnic Website: https://ua.coca-colahellenic.com/ro/ General Manager: Traian Nechifor FPC Rogob SRL Type: Food; Beverages Tel: (+373 22) 866 556 Continent SRL Type: Automotive&Suppliers Fax: (+373 22) 866 566 Tel: (+373 22) 79 14 99 Email: [email protected] Fax: (+373 22) 791 488 Address: 1/1, Gloriei St., Goianul Nou, Stăuceni, Moldova Address: 17/1, Arborilor str, MD-2025, Chisinau, Moldova Website: www.rogob.md Website: www.toyota.md General Director: Igor Roșca CEO: Shumilo Victor

DRA Draexlmaier Type: Automotive and Suppliers Fujikura Type: Automotive Wiring Harness and Accessories Tel: (+373 22) 66 72 52 Automotive SRL Tel: (+373 231) 91 101 Automotive MLD SRL Fax: (+373 231) 91 102 Email: [email protected] Email: [email protected] Address: 801 Muncesti road, o .1, Address: 86, Dovator St., MD-3101, Bălţi, Moldova MD-2029, Chisinau, Moldova Website: www.draexlmaier.de Website: www.fujikura.com Administrator: Guido Meinelt Administrator: Angela Piliughin

66 Annual Report | 2017 | www.eba.md 67 Grant Thornton Audit SRL Type: Consulting and audit ICS Betty Ice SRL Type: Ice cream producer Tel: (+373 22) 860 571 Tel: (+373 22) 859 859 Fax: (+373 22) 227 464 Fax: (+373 22) 859 851 Address: 69, Grigore Ureche str, MD-2005 Chisinau, Moldova; Email: o [email protected] 4D, Gara Herastrau str, Green Court Bucharest – Address: 6, Transnistriei str, MD 2026, Chisinau, Moldova building C, 5th fl oor, Bucharest, Romania Website: www.bettyice.md Tel: ( +40) 21 32 02 328 CEO: Stasiev Liuba Fax: (+40) 21 32 02 327 Email: o [email protected] ICS British American Tobacco Type: Consumer Goods Website: www.grantthornton.md - Moldova SRL Tel: (+373 22) 855 355 Fax: (+373 22) 855 356 SC Vinaria Tiganca SRL Type: Agriculture and wine production Email: [email protected] Tel: (+373) 69 122 503 Address: 65, Ștefan cel Mare Blvd., 4th fl oor, O ce 416, Fax: (+373 22) 24 30 12 MD-2001, Chișinău, Moldova Email: o [email protected] Website: www.bat.com Address: 107, Tarinei str, ap. 9, MD-2069, Chisinau, Moldova Legal & External Website: www.gitana.md A airs: Radu Vrabie CEO: Dulgher Svetlana ICS Danube Logistics SRL Type: Logistics and Transport; Free Economic Zone IM Elektromanufacturing SRL Type: Inductive electronic components Tel: (+373 22) 999 225 Tel: (+373 231) 85 400 Fax: (+373 22) 999 226 Email: [email protected] Email: [email protected] Address: 13, Decebal St., , Balti, Moldova Address: 9, Mihai Eminescu str, MD-2009, Chisinau, Moldova Administrator: Andrei Novacov Website: www.gifp.md Director: Thomas Moser IM Tirex Petrol SA Type: Oil Industry Tel: (+373 22) 200 728 ICS KPMG Moldova SRL Type: Audit; Tax; Advisory Fax: (+373 22) 200 729 Tel: (+373 22) 580 580 Email: o [email protected] Fax: (+373 22) 540 499 Address: 90 Columna str, MD 2012, Chisinau, Moldova Email: [email protected] Website: www.tirexpetrol.com Address: 171/1, Stefan cel Mare Blvd., 8th fl oor, Chief Executive MD-2004, Chișinău, Moldova O cer: Felix Kruse Website: www.kpmg.md Audit Senior ICS Arensia Exploratory Type: Exploratory clinical studies Manager: Vitalie Corniciuc Medicine SRL Tel: (+373) 78 88 33 91 Fax: (+373 22) 66 75 74 ICS Leogrant SRL. Type: Hotel Email: [email protected] Radisson Blu Leograndg Hotel Tel: (+373 22) 201 201 Address: 29 Testemiţeanu str, MD- 2025, Chisinau, Moldova Email: [email protected] Website: www.arensia-em.md Address: 77, Mitropolit Varlaam str, MD-2012, Chisinau, Moldova General Director: Ghicavii Nelea Website: www.radissonblu.com/hotel-chisinau General Manager: Husnu Tayank

68 Annual Report | 2017 | www.eba.md 69 ICS NUTSI Type: Processing and export of walnuts ICS Trigor AVD SRL Type: Wholesale; Distribution; Logistics; INTERNATIONAL SRL Tel: (+373) 69 039 457 Transport; E-commerce Email: [email protected] Tel: (+373 22) 479 898 Address: Slobozia-Dusca v., Criuleni r. Fax: (+373 22) 479 898 CEO: Valentina Chiriac Email: o [email protected] Address: 17, Otovasca St., MD-2023, Chișinău, Moldova Website: www.trigor.md; www.comenzi.md ICS Pricewaterhouse Coopers Type: Assurance Services; Tax and Legal Services; Advisory President: Iosif Ienei Advisory SRL Services Tel: (+373 22) 238 122 Fax: (+373 22) 238 120 IM Compania de asigurari Type: Insurance Email: [email protected] Grawe Carat Asigurari SA Tel: (+373 22) 225 596 Address: 37, Maria Cibotari St., MD-2012, Chișinău, Moldova Fax: (+373 22) 213 533 Website: www.pwc.com/md Email: o [email protected] O ce Leader: Alexandru Gozun Address: 51, Alexandru cel Bun St., Chișinău, MD-2012, Moldova Tax & Legal Website: www.grawe.md Manager: Tatiana Stavinschi General Assurance Director: Veronica Malcoci Manager: Constantin Barbaros IM Zerno SRL Type: Producer of spirits ICS Prime Capital SRL Type: Financial Institutions Tel: (+373 22) 529 003 Tel: (+373 22) 871 111 Fax: (+373 22) 529 003 Fax: (+373 22) 543 043 Email: o ce@zerno .md Email: [email protected] Address: of.1F, 13/1 Mircea cel Batran str., Address: 63/1, V. Alecsandri St., MD-2009, Chișinău, Moldova MD-2075, Chisinau, Moldova Website: www.primecapital.md Website: www.zerno .md General CEO: Constantin Turcan Director: Carmina Vicol Introscop S.A. Type: Automotive harnesses ICS Strabag SRL Type: Construction and Design Tel: (+373 22) 47 33 00 Tel: (+373 22) 85 30 83 Fax: (+373 22) 47 23 00 Fax: (+373 22) 85 30 82 Email: o [email protected] Address: 86, Petricani str, MD-2059, Chisinau, Moldova Address: 20 Mesterul Manole str., Website: www.strabag.com MD-2044, Chisinau, Moldova General Website: www.introscop.md Director: Herbert Franz-Xaver Schuster CEO: Valeriu Bodiu

70 Annual Report | 2017 | www.eba.md 71 JT INTERNATIONAL Type: Consumer Goods Nova Nut SRL Type: Processing and export of walnuts TRADING SRL Tel: (+373 22) 605 954 Tel: (+373) 69 211 211 Fax: (+373 22) 607 374 Fax: (+373) 237 72 221 Email: [email protected] Email: [email protected] Address: 11/8, Moscova bd., MD-2068, Chișinău, Moldova Address: Sireti v, Straseni d. Website: www.jti.com Website: www.novanut.md Corporate A airs CEO: Ion Cuhal and Communications Manager: Nicolae Corlăteanu Panprint SRL Type: Production of colour printing Tel: (+373 22) 80 00 11 Media Security SRL Type: Security Systems Fax: (+373 22) 80 00 11 Tel: (+373 22) 20 11 11 Email: [email protected] Fax: (+373 22) 20 11 13 Address: 115 Dosoftei str. MD-2028, Chisinau, Moldova Email: o [email protected] Website: www.sunprints.md Address: 5/4 Dimitrie Cantemir blvd., CEO: Panis Veaceslav MD-2005, Chisinau, Moldova Website: www.media-security.eu Phillip Morris Sales & Type: Consumer Goods General Tel: (+373 22) 824 002 Director: Victor Găină Marketing LLC Fax: (+373 22) 835 641 Email: [email protected] Moldo-German Business Type: Business Support Services Address: 21/3, N. Dimo St., MD-2068, Chișinău, Moldova Association (MDW) Email: [email protected] Website: www.pmi.com Website: www.mdw-moldova.org Manager Corporate President: Wolfgang Lerke A airs: Andrei Vrabie

Prometeu-T SA Type: Horticulture. Processing and export of walnuts Tel: (+373) 69 108 294 Email: [email protected] MONICOL SRL Type: Food; Beverages Address: 33 Petricani Str, MD-2059, Chisinau, Moldova Tel: (+373 22) 500 675 Website: www.walnut.md Fax: (+373 22) 500 676 CEO: Tudor Slanina Email: [email protected] Address: 49/5, Bernardazzi St., MD-2012, Chișinău, Moldova SC Business Intelligent Type: Business consulting Website: www.monicol.md Services SRL Tel: (+373 22) 278 701 General Fax: (+373 22) 275 418 Manager: Dumitru Vicol Email: [email protected] Address: o .4, 53A Berdnardazzi str., MD-2012, Chisinau, Moldova Website: www.bis.md Director: Valeriu Lazăr

72 Annual Report | 2017 | www.eba.md 73 SC Daac System Type: Software solutions developer. System integrator Integrator SRL Tel: (+373 22) 509 709 Fax: (+373 22) 509 710 Email: [email protected] Address: 10 Calea Iesilor str, MD-2069, Chisinau, Moldova Website: www.integrator.md General Director: Sergiu Ghincu

Starnet SRL Type: Information technologies and electronic communications Tel: (+373 22) 844 990 Fax: (+373 22) 844 445 Email: [email protected] Address: 170, Columna str, MD-2004, Chisinau, Moldova Website: www.starnet.md President StarNet Group of Companies: Alexandru Machedon

Varo-Inform SRL Type: Information and advertising services Tel: (+373 22) 73 77 09 /(+373 22) 73 77 94 Email: [email protected] Address: 2B Gheorghe Tudor Str., MD-2028, Chisinau, Moldova Website: www.varo-inform.com Business Partner: Andrei Jicol

74 Annual Report | 2017 | www.eba.md 75 +373 22 907 025 [email protected]

/European Business Association Moldova 30 Vlaicu Parcalab str., of.7, MD 2012, Chisinau, Republic of Moldova

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