COUNTRY FACT SHEET
MOLDOVA
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COUNTRY FACT SHEET
TABLE OF CONTENTS TABLE OF CONTENTS I. GENERAL INFORMATION 1. Government and political situation 2. Transnistria Conflict II. ECONOMY 1. Employment Opportunities 2. Private Employment Agencies 3. Requirements to Access the Labour Market 4. Unemployment Assistance 5. Pensions III. BANKING SYSTEM AND BUSINESS SET-UP OPPORTUNITIES 1. The Banking System 2. Micro Credit to Start a Business or Buy Property IV. HEALTH CARE 1. The Health System 2. Health Insurance Companies 3. Public Medical Institutions 4. Medicines V. HOUSING 1. The Housing Situation 2. Renting Property 3. Buying Property 4. Social Grants for Housing VI. EDUCATION 1. The Education System 2. Structure and Organization of the Education System 3. Recognition of Foreign Diploma 4. Vocational Training Courses, Scholarships and Grants VII. CUSTOMS VIII. TRANSPORTATION 1. Transport between the Major Cities IX. MEDIA AND OTHER COMMUNICATIONS 1. Media 2. Internet 3. Phones X. VULNERABLE CASES XII. USEFUL LINKS AND CONTACTS
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COUNTRY FACT SHEET I. GENERAL INFORMATION • • • • • • • • •
Population: 4,317,483 (July 2010 est.) Area: 33,851 sq km Capital: Chisinau (Kishinev) Head of State: (acting) President Mihai GHIMPU (since 11 September 2009) GDP/capita: $2,300 (2009 est.) Religions: Eastern Orthodox 98%, Jewish 1.5%, Baptist and other 0.5% (2000) Official language: Moldovan Other languages: Russian, Gagauz (a Turkish dialect) Ethnic Groups: Moldovan/Romanian 78.2%, Ukrainian 8.4%, Russian 5.8%, Gagauz 4.4%, Bulgarian 1.9%, other 1.3% (2004 census) • Life expectancy: 71,09 years • Monetary unit: Moldovan leu (MDL) Part of Romania during the interwar period, Moldova was incorporated into the Soviet Union at the close of World War II. Although the country has been independent from the USSR since 1991, Russian forces have remained on Moldovan territory east of the Dniester River supporting the Slavic majority population, mostly Ukrainians and Russians, who have proclaimed a “Transnistria” republic. One of the poorest nations in Europe, Moldova became the first former Soviet state to elect a Communist, Vladimir Voronin, as its president in 2001. Voronin served as Moldova’s president until he resigned in September 2009, following the opposition’s gain of a narrow majority in July parliamentary elections and the Communist Party’s (PCRM) subsequent inability to attract the threefifths of parliamentary votes required to elect a president. Moldova’s four opposition parties formed a new coalition, the Alliance for European Integration (AEI), which will act as Moldova’s governing coalition until new parliamentary elections can be held, possibly in summer 2010. Moldova experienced significant political uncertainty in 2009, holding two general elections (in April and July) and four presidential ballots in parliament, all of which failed to secure a president. 1. Government and political situation The current Moldovan government was elected in July 2009 and took office in September in a peaceful transfer of power. Four former opposition parties together won a majority of seats in the Parliament (53 of 101), and created the Alliance for European Integration (AIE) coalition government. Liberal Democratic Party leader Vlad Filat (PLDM, 18 seats) was elected Prime Minister. Liberal Party leader Mihai Ghimpu (PL, 15 seats) became Speaker of Parliament. Our Moldova Alliance leader Serafim Urechean (AMN, 7 seats) became Deputy Speaker of Parliament. Democratic Party leader Marian Lupu (PD, 13 seats) was the AIE candidate for President. The Communist Party (PCRM) went into opposition, holding 43 seats in the Parliament. Independents and small parties took the remaining seats. Speaker Ghimpu has served as Acting President since September 2009. The AIE coalition failed twice in November and December 2009 to attract the additional eight votes required (61 total) for the Parliament to elect Lupu, which meant that Ghimpu was constitutionally required to dissolve Parliament and call new elections. A September 5, 2010 referendum to replace the system of parliamentary election of the president with direct popular election failed due to low turnout. Parliament was dissolved September 28 in preparation for new parliamentary elections on November 28, 2010. The AIE government has launched an ambitious reform effort and placed a clear priority on Moldova’s relations with the West and integration with the European Union. It has 3
COUNTRY FACT SHEET pledged to respect and promote human and civil rights, improved relations with neighboring Romania, and negotiated a difficult agreement with the International Monetary Fund (IMF) to help alleviate the effects of the global economic crisis. The Government of Moldova generally recognizes freedom of religion in practice, although it has continued to deny registration to some religious groups. A new law on religion, passed in July 2007, liberalized registration procedures for religious groups, transferred responsibility for registration from the State Service for Religion to the Ministry of Justice, and permitted congregations to switch denominational allegiance. Of the 24 groups that submitted applications after the new procedures came into effect, only the Unification Church, the Armenian Christian Apostolic Denomination, and the Ukrainian Orthodox Patriarchate have been successfully registered. Orthodox Christian, Muslim, and Protestant organizations continue to encounter bureaucratic obstacles to registration, and Jehovah’s Witnesses recount numerous instances of social discrimination and abusive behavior. In August 2009, the majority Moldovan Orthodox Church successfully blocked a concert by Seventh-day Adventists in the public square next to the Orthodox cathedral. In December 2009, a menorah displayed in a public square was removed and dismantled by members of an Orthodox Christian group, whose leader recited anti-Semitic rhetoric. The Government of Moldova publicly condemned the event, and the menorah was reassembled a few blocks away at the Holocaust Memorial without further incident. A number of minority religious groups in the breakaway region of Transnistria, which is not under the control of the Moldovan Government, continued to be denied registration and are subjected to harassment by Transnistrian authorities. 2. Transnistria Conflict The population of the Moldovan region of Transnistria, which includes most of the land between the Nistru/Dniester River and the Ukrainian border as well as the city of Tighina/ Bender, is approximately 40% Romanian/Moldovan, 28% Ukrainian, and 23% Russian. Separatist forces maintain control of the Transnistrian region. Moldova has offered the region rather broad cultural and political autonomy. The dispute has strained Moldova’s relations with Russia. The July 1992 cease-fire agreement established a tripartite peacekeeping force comprised of Moldovan, Russian, and Transnistrian units. Negotiations to resolve the conflict continue, and the cease-fire is still in effect. The Organization for Security and Cooperation in Europe (OSCE) is trying to facilitate a negotiated settlement and has had an observer mission in place since 1993. In July 2002, OSCE, Russian, and Ukrainian mediators approved a document setting forth a blueprint for reuniting Moldova under a federal system. Over the next year and a half, the settlement talks alternated between periods of forward momentum and periods of no progress. In February 2003, the U.S. and European Union (EU) imposed visa restrictions against the Transnistrian leadership. In April 2003, the Moldovan Government and the Transnistrian authorities agreed to establish a joint commission to draft a constitution for a reintegrated state. However, fundamental disagreements over the division of powers remained, and a settlement proved elusive. President Vladimir Voronin decided not to sign a Russian-brokered settlement with Transnistria in November 2003; the proposal--seen by many as not in Moldova’s best interest--sparked opposition protests. During the summer of 2004, the Transnistrian separatists forcibly closed several Romanian language Latin-script schools in the region, for which the regime was subject to international condemnation. In 2005, the Transnistrian regime prevented farmers on the right bank of the Nistru River from working their fields on the left bank. The OSCE Mission to Moldova eventually mediated solutions to these 4
COUNTRY FACT SHEET crises. After a 15-month pause, the sides met for a renewed round of settlement negotiations in October 2005. Mediators from Ukraine, Russia and the OSCE joined the Moldovan and Transnistrian representatives at the talks. In addition, the U.S. and EU joined the talks as observers. However, subsequent “5+2” negotiations have made little progress on a settlement or on withdrawal of Russian forces from Moldova: Russia still has weapons and munitions of the Operational Group of Russian Forces (formerly the Russian 14th Army) stationed in Transnistria, although it pledged to remove them under a timetable established at the 1999 OSCE Ministerial--the so-called “Istanbul Accords.” However, there has been no progress on Russian withdrawals since early 2004. In response to Moldova’s call for international monitoring of the border, in December 2005 the EU dispatched a Border Assistance Mission (EUBAM) to help stem the flow of illegal trade across the eastern border with Ukraine. In March 2006, Ukraine and Moldova began implementing a 2003 customs agreement, under which Transnistrian companies seeking to engage in cross-border trade must register in Chisinau. Despite the protests of Transnistrian leader Igor Smirnov, most major Transnistrian businesses have subsequently registered. In what is seen as a response to the new customs procedures, the Smirnov regime began a boycott of formal 5+2 talks in March 2006, which stalled negotiations for several years. Since then, the 5+2 has been able to meet only for informal discussions. II. ECONOMY Moldova remains one of the poorest countries in Europe despite recent progress from its small economic base. It enjoys a favorable climate and good farmland but has no major mineral deposits. As a result, the economy depends heavily on agriculture, featuring fruits, vegetables, wine, and tobacco. Moldova must import almost all of its energy supplies. Moldova’s dependence on Russian energy was underscored at the end of 2005, when a Russian-owned electrical station in Moldova’s separatist Transnistria region cut off power to Moldova and Russia’s Gazprom cut off natural gas in disputes over pricing. In January 2009, gas supplies were cut during a dispute between Russia and Ukraine. Russia’s decision to ban Moldovan wine and agricultural products, coupled with its decision to double the price Moldova paid for Russian natural gas, slowed GDP growth in 2006-07. However, in 2008 growth exceeded 7%, boosted by Russia’s partial removal of the bans, solid fixed capital investment, and strong domestic demand driven by remittances from abroad. The country reversed course again in 2009, due to the onset of the global financial crisis and poor economic conditions in Moldova’s main foreign markets, which dramatically decreased remittances. GDP fell about 8% in 2009. Unemployment almost doubled and inflation disappeared - at 0%, a record low. Moldova’s IMF agreement expired in May 2009. In fall 2009, the IMF allocated $186 million to Moldova to cover its immediate budgetary needs, and the government signed a new agreement with the IMF in January 2010 for a program worth $574 million. Economic reforms have been slow because of corruption and strong political forces backing government controls. Nevertheless, the government’s primary goal of EU integration has resulted in some market-oriented progress. The granting of EU trade preferences and increased exports to Russia will encourage higher growth rates, but the agreements are unlikely to serve as a panacea, given the extent to which export success depends on higher quality standards and other factors. The economy is making a modest recovery in 2010 but remains vulnerable to political uncertainty, weak administrative capacity, vested bureaucratic interests, higher fuel prices, poor agricultural weather, and the skepticism of foreign investors as well as the presence of an illegal separatist regime in Moldova’s Transnistria region.
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COUNTRY FACT SHEET 1. Employment Opportunities Generally, most employment is for 40 hours per week with one or two days off. Yearly paid leave must be at least 28 calendar days. The minimum age for being employed is 16 years although, in exceptional cases, young people are allowed to work from 15 years of age. The legislation regarding the minimum wage stipulates different rates for the private and public sector. From 1 August 2005, the minimum monthly wage for private sector employees is 550 MDL (about 34 EUR). Since April 2007, the minimum wage for public sector employees has been 400 MDL (about 25 EUR). The National Employment Agency (NEA) of the Ministry of Labour, Social Protection and Family is the main state body empowered with policy strategies, programmes, and implementation for the labor market. The NEA offers a number of free services that include the following: • Information about vacant jobs through announcements, publications and job fairs. • Free vocational training courses, including: welding; finishing; plastering; cooking; accounting; driving; mechanics; metal turning; designing; hairdressing; construction; office-work. Applicants need to register as unemployed with the National Employment Agency to enroll free of charge. Tuition-based enrollment is open to everybody. • Unemployment allowance during the training courses. • Payment of daily transport or return transport and housing for people attending courses away from home. NEA’s official web page is: www.anofm.md. The NEA’s portal on the labor market in Moldova is: www.jobmarket.gov.md 2. Private Employment Agencies There are a number of non-governmental organizations and private agencies that can assist in helping people find employment opportunities. There is an up to date list with contact data for all the private employment agencies at: http://anofm.md/Listaprivate. It is important to be aware that some of these agencies and non-governmental bodies may charge a fee for assisting you to obtain employment. 3. Requirements to Access the Labour Market Persons in search of a job can apply to the territorial employment agencies to get information about the vacant job places in the area where the agency is situated. One of the partners of the National Employment Agency is the local public administration authorities which organize common actions aiming at increasing the level of public employment through job fairs, informative seminars for various categories of population (youngsters, women) and for economic agents to create new job places. Also, people can get information on vacant job places by accessing the governmental web-site: www.jobmarket.md. In Moldova, the employment of foreign citizens and stateless people is permissible if the employment vacancy cannot be filled by local labor. This policy is implemented in accordance with the relevant domestic legislation and the international treaties to which Moldova is party. 4. Unemployment Assistance Unemployment assistance is available to men aged 18 to 59 years or women aged 18 6
COUNTRY FACT SHEET to 54 years, who are registered at an employment office and willing and able to work. Benefits may be reduced, postponed, suspended, or terminated if a worker is dismissed for misconduct, leaves his employment without good cause, violates the conditions for a job placement or vocational training post, or files a fraudulent claim. Claimants must have no income and have been employed for at least 6 months in the last 12 months preceding unemployment. Waiting periods apply for some categories of worker: 2 months for the non-voluntarily unemployed; 60 days for recently graduated students; and 30 days for ex-servicemen on completion of military service. The allowance for people who have been employed for from 6 months to 10 years is equal to 50% of the national average wage (about 160 EUR). For people with 10 to 15 years of employment, the benefit is 55%; for 15 years or more, the benefit is 60% of the national average wage. The benefit is adjusted every January in line with changes to the average national wage during the previous year. The allowance is reduced by 15% every three months but cannot be less than the minimum wage. 5. Pensions The legislation of the Republic of Moldova provides for pensions at retirement age, invalidity pensions and survivor’s pensions. The retirement pension is guaranteed when an individual reaches the retirement age and where the individual has worked the required length of time. The pension age is 62 for men and 57 for women. People who have not worked the required period of time (but have at least 20 years of work) have the right to a partial pension. At the beginning of 2009 the average pension was 645.5 MDL per month (about 40 EUR). Employees are required to make a contribution of 26% of their total remuneration. In addition, all employed individuals in Moldova contribute to the social fund, with a contribution of about 3% of their total salary. The non-state pension fund (NGPF) is established on a free will base principle, as to facilitate payment of the additional pensions to the retired persons. NGPF is a nongovernmental organization that collects and maintains the records regarding the financial free voluntary contribution paid by the individuals or legal entities and use the funds for payment of the additional pensions. The activity of the funds is separate from the obligatory social assurance. The Ministry of Labour, Social Protection and Family provides general coordination and supervision of pensions. III. BANKING SYSTEM AND BUSINESS SET-UP OPPORTUNITIES 1. The Banking System Unlike other activities in Moldova, the banking sector is characterized by a high level of competition. Moldova has rather a large number of banks for a small country, including three foreign ones. There are presently fifteen banks in Moldova in three categories: the so-called “big banks” with total assets over MDL 1,500m (about 94m EUR); middle-sized banks with total assets between MDL 500m (about 31m EUR) and MDL 1,500m (about 94m EUR); and the small banks with total assets under MDL 500m (about 31m EUR). The influence of the non-banking financial institutions has also increased, especially in the area of small and micro loans. Here, ProCredit, PrimeCapital, Microinvest and Corporatia pentru Finantare Rurala (Coorporation for Rural Financing) are particularly strong, granting 7
COUNTRY FACT SHEET loans to small and micro-enterprises on very advantageous conditions. In addition, there are several providers of mortgage loans who target individuals. The Moldovan banks offer the entire range of financial services, including channels for transferring remittances. The Moldovan banks primarily target clients from the cities and larger towns, such as Chisinau, Balti and Cahul. There are not many branches or representative offices in the rural areas. This is also true for promotion materials, such as billboards or mailed advertisements. Only the large banks, which inherited their infrastructure from the old Soviet banks (for example, Moldova Agroindbank and Banca de Economii din Moldova), can afford to allocate resources to target clients in the remote rural areas. Unfortunately, most of the rural areas are underdeveloped and are usually unattractive as investment opportunities. In addition, the poor Moldovan infrastructure (in particular, the state of the roads) generates additional problems. 2. Micro Credit to Start a Business or Buy Property Non-Banking Financial Institutions ProCredit Bank A business must have existed for at least two months before the date of the loan request. A loan request is analyzed in detail within a day, including an analysis of the business environment and client’s specific requirements (for example, evidence of a seasonal turnover or the possible need to postpone repayment). Returning customers can benefit from a scheme under which a loan is analyzed more quickly without the need for a field inspection. The usual term of a loan is 24 months for working capital needs, and 60 months for investment purposes. For the first visit, the potential client is advised to have along the following: • For an individual: a copy of the ID; a business license and a lease. • For a corporate body: a copy of a director’s ID, certificate of state registration of the enterprise, rules and regulations of the company, the renting contract and the licenses for the existing businesses. Contacts and more information: office@procredit.md , www.procreditbank.md. 65, Stefan сel Mare Ave., office 901 Tel.: (+373 22) 279351 Fax: (+373 22) 273488 Corporatia Pentru Finantare Rurala SA This savings and credit association (SCA) was created in 1997 by the first Moldovan SCAs. Its main targets are the small farmers and entrepreneurs who have not had access to finance because of a lack of experience, the small size of their business, and the lack of adequate assets on which to secure loans. In particular, there has been a high degree of uncertainty over agricultural investments. For individuals (farming and individual enterprises), the documents required include: • the documents founding the enterprise; • an extract from the state registry of enterprises and organizations; • a certificate from the fiscal authorities; • copies of the founders’ IDs. For corporate clients, the required documents are: • the documents setting up the business; • copies of the directors’ IDs; • licenses; • a certificate from the fiscal authorities. 8
COUNTRY FACT SHEET For both individual and corporate clients, the SCA will expect a business plan, offers from at least three suppliers for the goods that are going to be purchased as part of the project, contracts with suppliers, credit history, etc. Contacts and more information: office@microfinance.md, www.microfinance.md. Microinvest Ltd Microinvest Ltd is a micro-finance institution offering micro-credit services to individuals and micro and small enterprises. Besides micro-credits, the company offers assistance with developing business plans, consultancy and long-term monitoring and interventions in the event of problems. Microinvest maintains a number of regional offices throughout Moldova in order to stay closer to its clients. The potential beneficiaries of this organization include entrepreneurs holding a patent, farm enterprises, individual enterprises, cooperatives of entrepreneurs, and limited companies. The enterprise’s main activity may, for example, be livestock, harvesting multi-annual agricultural crops, public services, storage, transportation etc. The loans may be used to supplement working capital, to procure fixed assets for an existing activity or for a new activity, or to develop the enterprise. Contacts and more information: microinvest@microinvest.md; www.microinvest.md The Banks Mobiasbanca SA, Groupe Societe Generale. MBSG is another bank that has recently started to target this market actively. MBSG offers micro loans for amounts between $200 and $100,000 on the following terms: • loans under MDL 5,000 are unsecured; • a minimal set of documents are required; • No business plan is required. Contacts and more information: office@mobiasbanca.md, www.mobiasbanca.md Moldova Agroindbank SA The biggest Moldovan bank has also focused strongly on this market. It offers loans from MDL 10,000 for a period of up to 18 months, secured by guarantee or pledging of assets. The minimal requirements for prospective clients are: • a minimum history of 12 months; • a liquid balance sheet and a profit and loss account showing no losses for the current year; • no overdue amounts to other banks or to the budget; • a good credit history; • the beneficiary must be a client of the bank; and the following documents must be presented: o the documents setting up the enterprise; o the loan application; o financial reports; o documents confirming property over the goods to be pledged. Contacts and more information: aib@maib.md, www.maib.md Banca de Economii SA. In 2005, BEM launched a programme called “Support the Client”. It offered loans at lower interest rates and more advantageous conditions for several groups of companies, including SMEs and enterprises operating in the agricultural sector. Contacts and more information: bem@bem.md, www.bem.md 9
COUNTRY FACT SHEET Eximbank SA, Gruppo Veneto Banca. EXIM offers special conditions on loans up to MDL 50,000 (or its equivalent in EUR or USD) for small businesses. There is a floating interest rate with interest of 16.6% p.a. for loans granted in MDL and 9.6% p.a. for loans granted in EUR or USD. The loan matures in up to 12 months if used for working capital. Investment loans have a maturity of up to 24 months, with a grace period of 6 months in both cases. The loans and the interest are paid on a monthly basis. There are certain eligibility criteria for the beneficiaries: • The beneficiary is engaged in an entrepreneurial activity; • The number of employees does not exceed 15; • The annual sales do not exceed MDL 1m; • The client’s contribution must be not less than 30%; • The pledge is sufficient to cover the loan (and it must be evaluated by a licensed company); • The pledge is insured in favor of the bank. Contacts and more information: info@eximbank.com , web: http://www.eximbank.com Banca Sociala SA Banca Sociala offers loans in MDL and in foreign currency to economic entities and physical people on short term to long term (up to 1 year and more than 5 years, respectively) for required services, including purchase of a property. Contacts and more information: office@socbank.md , www.socbank.md. IV. HEALTH CARE 1. The Health System The health care system consists of three tiers: primary; secondary; and tertiary. Primary care is defined as the first point of contact with the health care system by a patient. It includes general medical care for common conditions and injuries as well as health promotion and disease prevention. The primary health care sector is based on general practitioners, called family doctors. Secondary care is provided by general hospitals. The district hospitals are scaled down to an average of 230 beds and serve as referral institutions at the district level. Secondary care also refers to specialized ambulatory services and basic hospital care (excluding long term care institutions). Tertiary care refers to specialist treatment. In the Republic of Moldova, entitlement to medical assistance is based on contributions to obligatory medical assistance insurance. 2. Health Insurance Companies The state healthcare insurance programme offers medical assistance financed from the funds of the compulsory medical assistance insurance programme. This is administered by the National Company of Medical Insurance. The insurance contribution to the medical assistance insurance company is a fixed sum of money or a percentage contribution from the salary or other remuneration, which the insured person is obliged to pay the insurer under the provisions of the legislation and of the insurance agreement. The amount of the insurance contribution is established every year by law. In 2009, the contribution was MDL 2,637 (about 165 EUR). The amount of health care provided within the medical assistance insurance programme is stipulated in the Uniform Programme of the medical assistance insurance scheme approved by the Government of Moldova. The Uniform Programme comprises lists of the diseases and medical conditions that require medical assistance from the medical assistance insurance scheme. 10
COUNTRY FACT SHEET Categories of exempt persons, for whom the Government pays the insurance contribution, are: • pre-school children; • pupils form primary schools, secondary schools and lyceums; • students from professional schools; • students attending secondary professional institutions (colleges) daily; • students attending higher education institutions daily; • students undergoing obligatory post university education; • children up to 18 years old who do not attend the school; • pregnant women and those who have given birth; • invalids; • pensioners; • people officially registered unemployed. No private health insurance schemes are available in Moldova, yet. However, persons working in international organizations benefit from their organization’s health insurance scheme. 3. Public Medical Institutions See http://www.ms.md/ministry/structure/Institutiilesubordonate/ for a list of public medical institutions (including hospitals) and contact data for them. 4. Medicines A wide range of medication is available on the market. A certain number of medicines are paid for within the medical assistance insurance system. However, poor quality and counterfeit medications have been reported. V. HOUSING 1. The Housing Situation In the last few years, access to financial services, including credit and hypothec (mortgage) has undergone substantial improvement. Credit facilities have become more flexible and accessible to wider categories of beneficiaries. Hypothec (mortgage) credit offered by the banks was one of the factors that fuelled the construction boom, meeting the growing demand for housing. The Moldovan real estate market has grown quickly in the last five years, with prices rising by up to 400 % in this period. This was stimulated by the general improvement in the economic situation in the country and the steady flow of remittances from abroad. The overall housing and social infrastructure has also improved in the last four years. Power cuts are not an issue anymore. Seven years ago there were cuts for 8-12 hours a day. Heating, water supply and the cleaning of public premises and streets have also improved. The best approach to finding a flat is to research advertisements in the newspapers or on the Internet, for example: • the newspaper Makler, which also has an Internet version – www.makler.md; • advertisements on the Internet sites www.999.md, www.imobile.md, http://doma.md/; • the real estate Internet portal – www.casa-ta.info; • through the real estate intermediary firm LARA, also on the Internet – www.lara.md. Landlords often try to avoid a formal rent contract, for tax evasion purposes. This is not advisable, as it does not offer any guarantee of length of tenure or of rent. People buying 11
COUNTRY FACT SHEET property are advised to use a qualified lawyer to perform due diligence checks of property rights, possible claims and charges. Complaints about standards of accommodation can be filed with municipalities’ housing offices. In Chisinau they should be filed with the General Department for Housing and Urbanism of Chisinau Municipal Council (tel: 22-54-61). A number of estate agencies in Moldova offer real estate services although the quality, fees and services may vary. Estate agents may offer to find an apartment or private house, obtain information about the real estate market, obtain information about construction (including companies, location, process and completion time of the buildings under construction) and obtain insurance and security information. 2. Renting Property For One Person The average monthly rent for a one room basic studio apartment in Chisinau is 130 EUR. In its suburbs, the average monthly rent is 100 EUR. The utilities in both cases cost about 30 EUR a month, excluding heating bills (which can be up to 50 EUR). Deposits are not commonly demanded in Moldova, although many landlords require three months rent in advance to protect them against damage to the property or early termination of the lease. For Two People The average rent of a two room basic apartment in Chisinau is 170 EUR. In its suburbs, the average one month rent amounts to 120 EUR. The utilities in both cases amount to 50 EUR month, excluding heating bills (which can go up to 70 EUR). For a Family The average rent of a two or three room family apartment in Chisinau is 200 EUR. In its suburbs the average one month rent amounts to 150 EUR. The utilities in both cases amount to 60 EUR month, excluding heating bills (which can go up to 90 EUR). Rents outside Chisinau The rent for the bigger towns in Moldova is on average 80 EUR for a one-room basic studio apartment, 100 EUR for a two room basic apartment and 120 EUR for a two or three room family apartment. In rural areas, depending on the size of the flat and the amenities, the rent for a two bedroom family house averages 80 EUR a month. 3. Buying Property The average price of a one room basic apartment in Chisinau is 28,000 EUR. In its suburbs, the price is lower: about 22,000 EUR. These prices are for flats in older blocks. The average purchase price for a two room basic apartment in Chisinau is 38,000 EUR, and 32,000 EUR in its suburbs. The price of a three room family apartment in Chisinau averages 50,000 EUR, and 45,000 in its suburbs. The average price in district centers and towns is lower by 30-60%, depending on the size of the town and its proximity to the capital city. The average price in a village for a basic one room family house varies from 8,000 to 20,000 EUR, depending on local amenities and access to roads and communications. Mortgages The majority of mortgages require the first payment to be not less than 30% of the price of the property. Generally, mortgage companies will not provide loans where repayments exceed 50% of the joint family income. 12
COUNTRY FACT SHEET 4. Social Grants for Housing Young professionals employed in rural areas under the public repartition (a state programme which assigns young graduates to less appealing jobs, mainly in rural areas) can receive free housing, starting in 2009. Housing will be provided by the state. Regulations on the provision of free housing to young professionals employed in the public institutions of villages (communes) was adopted in November 2008 by the Ministry of Local Public Administration. The state buys houses for young professionals, which will initially be provided on a rent free basis. After five years of work in the institution to which the professional has been assigned, the property will be transferred to the specialist free of charge. Free housing will be offered to young professionals who are employed in education, health and pharmaceutics, social assistance and culture. This covers young people who have graduated since 2007-2008. To qualify for housing, young people must submit applications to the Territorial Directorate of the Ministry of Local Public Administration of the district to which they are assigned. In the coming years, the programme expects to attract around 600-700 young professionals annually. VI. EDUCATION 1. The Education System Education is free and compulsory for all children aged between 7 and 16 years of age and comprises forms from I to IX. The grading system for pupils is from 1 to 10 (10 is the highest level; the lowest pass level is 5). Primary education begins at the age of seven years and lasts for four years. Secondary general education, beginning at 11, lasts for a maximum of eight years, comprising: a first cycle of five years; and a second of three years in the case of the lyceum, and two years in the case of general secondary schools. The academic year is from September to July. The languages of instruction are Romanian and Russian. 2. Structure and Organization of the Education System The education system is organized in levels, stages and cycles. The structure is as follows. 1) Pre-school education. 2) Primary education. 3) Secondary general education: 3a) gymnasium secondary education - lower secondary (forms V-IX); 3b) lyceum secondary education – upper secondary (forms X-XII); 3c) general secondary school – upper secondary (forms X-XI). 4. 1) Secondary vocational education: a) vocational school; b) trades school. 4 2) Colleges. 5) Higher education. 6) Post-graduate higher education. Pre-school education is the first level of education. There is a network of education institutions of various types, mainly kindergartens. They can be public or private and offer a range of educational programmes which meet national educational standards. Preschool education caters for children between 3 and 6 years of age. Attendance is free of charge in public institutions but parents contribute 50% of the cost of meals. The pre13
COUNTRY FACT SHEET primary class is compulsory for 5–6-year olds. Access to a public pre-school is based on place of residence. The cost of attending private kindergartens varies between 50 and 200 EUR per month, depending on the programme and the meals on offer. The pre-school education system went through significant changes during the 1990s. As a result of the difficult economic situation, pre-school institutions and the enrolment rate have been significantly reduced, school meals for children have deteriorated, and teaching materials have become rather obsolete. Primary Education Primary education, or the first stage of basic education, is compulsory. Primary education is for children from 7 to 11 years of age. It is provided full-time for four years. It covers Grades (forms) I-IV and is organized as a full-time programme, which is offered in primary schools or general secondary schools. Children may attend school in their sixth year if they have reached a sufficient stage of development. Schooling is free under the Constitution but, in reality, parents, organized in Parents Associations, pay about 15 EUR to the class fund every month and 15 EUR to the school fund twice a year. School supplies may cost around 10 EUR a month. Some schools require their pupils wear school uniforms. Secondary General Education The first stage of compulsory secondary education, gymnasium, is full-time (V-IX forms) for children from 11 to 16. Children come to gymnasiums after graduating from primary school. Gymnasium education leads up to a graduation exam. The gymnasium issues the certificate of studies required by the Ministry of Education. The further stages of secondary education are the lyceum (or High School for X-XII forms) and the general secondary school (X-XI forms). These provide a basic theoretical training, which prepares pupils for higher educational institutions or vocational schools. Admission to a lyceum is only through examination. Lyceum education finishes with exams for the Diploma de Bacalaureat. Books and supplies for secondary school may cost around 15 EUR a month. Secondary Vocational Education Training is available at vocational (three years) and trade schools (one year), aiming at developing particular professional skills. Vocational training and professional courses are available in the following areas: construction; services; catering; office work; handicraft, agriculture, mechanics, etc. The Ministry of Education operates 77 vocational and trade schools. Students are offered housing, meals, and a small scholarship for the period of the training course. Every year, about 22,000 students graduate from these courses. At the beginning of the 2008/9 school year, 24,300 school children were studying in a secondary vocational institute, about the same number as registered in the previous school year. There are five times as many school children in vocational schools as in trade schools. The trade schools provide professional (vocational) training in one or more related trades. Graduates of gymnasiums, lyceums and general secondary schools can enroll in these schools. Special groups can also be formed with the approval of the Ministry of Education for pupils who did not complete the nine grades but are already 16 years old. These studies are from 6 to 18 months long and end with an examination. Those who pass are awarded a certificate. Private continuing vocational training providers cover a wide spectrum from private educational institutions, professional associations, companies, the Chamber of Commerce and Industry, specialized groups of employers, non-governmental organizations, etc. The continuing vocational training market is highly competitive and continually expanding.
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COUNTRY FACT SHEET Vocational training and retraining of the unemployed is coordinated at the national level by the National Agency of Employment of the Ministry of Labour, Social Protection and Family. The occupations for which the unemployed are trained or retrained respond to the preferences of the recipients if the local Labour Office is able to find training providers for the course locally. The most popular trades are those which offer self-employment (such as for tailors), followed by construction, public catering, information technology, etc. Colleges Higher technical/vocational education is provided by colleges and consists of short specialized courses in agriculture, teacher training, arts, mechanics, construction, industrial wood-processing, economics and others. The length of the study programme varies from two to three years, depending on the field of study. Courses lead to qualifications at undergraduate degree level. Admission to higher technical/vocational education is for graduates from secondary general schools and lyceums - holders of the Certificate of Studies, in the first case; and holders of the Baccalaureate Diploma, in the second case. Higher technical/vocational education ends with graduation exams and the production of a Diploma thesis. Graduates receive a Diploma of License or a Diploma of higher education in a particular subject area. Higher Education Higher education institutions offer full-time courses in all fields of study. Courses last for four to six years, depending on the field of study. 52.5% of students major in economics, law, social sciences, or in fields that the Moldovan Ministry of Education calls on its website “profession formation domains”. 18.4% study engineering and architecture and 16.0% study education. A total of 90 specialties (majors) are offered. External courses are available in engineering, construction, economics, humanities, agronomy, and sports. Evening courses are available only for engineering. These courses require one additional year of study. Higher education leads to graduation exams. A Diploma thesis is also required. The diploma de studii superioare or diploma de doctor-medic or diploma de inginer are awarded at the end of this stage. University tuition fees are between 120-430 EUR per annum, although not all students pay, as about 20% of students are exempted, based on academic merit and social vulnerability. A secondary school Diploma de Bacalaureat is required for entrance into all universities. Some universities have their own set examinations and guidelines for admission. Books and supplies may cost around 20-30 EUR a month. The educational system may additionally include following forms of education: • Special education; • Complementary education; • Continuing education. Special education is meant for children from vulnerable families, orphans and disabled children. Its aim is to prepare them for social and family (re)integration. Complementary education (out-of-school) is a very important trend of national education. It helps to develop the abilities and talent of children in various areas. Continuing education comprises all types of education for this category: various courses, open universities, distance learning etc. Private Education There are currently a significant number of private educational institutions operating on the basis of licenses issued by the Ministry of Education. The institutions are of various levels and kinds: 14 universities; one post-university institution; 18 colleges; 60 pre-university institutions (kindergartens, primary schools, gymnasiums, and lyceums); 5 vocational schools; and 200 training courses for adults. 15
COUNTRY FACT SHEET Both public and private higher education institutions function within a common legal framework. Curriculum design, admission, graduation and employment of teaching staff comply with requirements laid down by the Ministry of Education and Youth. 3. Recognition of Foreign Diploma Recognition of foreign studies, diplomas, and academic degrees, as well as the confirmation of doctoral or academic degrees, are the responsibility of the Higher Commission for Diplomas and Degrees (Comisia Superioara de Atestare). 4. Vocational Training Courses, Scholarships and Grants Vocational Training Courses At the beginning of the 2008/9 school year, there were 77 secondary vocational education units, including 25 trade schools (including 6 units near penitentiaries) and 52 vocational schools. Over nineteen thousand children study in these institutions with the option to choose between 85 professions. All enrolled children are entitled to a scholarship of 100 MDL a month (about 6 Euro). Trade schools provide vocational training over a period of one to two years, in line with the qualification categories set by the Ministry of Economy and Trade. The length of the study course after the gymnasium studies is up to two years. After secondary education and the lyceum, it is one year. The students are offered housing, meals and a small scholarship for the training courses period. Vocational schools provide free vocational education. After graduating from a vocational school, students can sit the vocational baccalaureate examination. The Diploma of Vocational Baccalaureate enables its holder to apply for a job, or enter post-secondary vocational education and higher education, in the special field that has been studied. Merit Scholarships The Educational Advising Center, under the Rector’s Council of the Republic of Moldova aegis, offers merit annual scholarships, on a competitive basis, for the best students from all over the country. The value of the scholarships is between 4,000 and 10,000 MDL (about 242 EUR to 606 EUR). Eligible candidates for the programme include students from all departments of the Republic of Moldova’s universities. They are expected to have an average mark score of: • not less than 9 for students from social-humanities studies departments: • 8.5 for technical and medical-biological studies; and • 8 for students with disabilities and/or orphans. VII. CUSTOMS Customs Regulations The following goods may be imported into Moldova by persons of 18 years of age or older without incurring customs duty: • 200 cigarettes; • 1 litre of spirits and/or wine; • a reasonable quantity of perfume and other goods for personal use. VIII. TRANSPORTATION In terms of trade, language, and culture, Moldova is a “gateway” between the former Soviet Union countries and Western Europe. The Pan European Corridor IX (MoscowKiev-Bucharest) crosses Moldova from East to West, traversing the capital city, Chisinau. Moldova is a net importer of transport services. The country’s economy relies heavily on 16
COUNTRY FACT SHEET trade, which has accounted for over 95% of GDP in the most recent years. Moldova’s well developed transport sector (albeit with problems of institutional and physical deterioration) consists of 10,531 km of roads (excluding municipal, agricultural and forestry roads), 1,318 km of railroad (about 100 km electrified), and four airports, one of which is of an international standard. There are direct train connections to and from the main cities of Russia (Moscow, St.Petersburg, Saratov), Ukraine (Kiev, Odessa, Lviv,), Byelorussia (Minsk), Romania (Bucharest), Bulgaria (Sofia), and Poland (Przemysl). Connections from Chisinau with such cities as Moscow, Bucharest, Odessa and Lviv are provided daily. The country’s road network has deteriorated badly and is long overdue for rehabilitation. About 78% of the national roads and 88% of the local roads have reached the end of their economic life and are technically outdated. Air transport is crucial for trade development in Moldova. The country has made good progress restructuring civil aviation. The airports are now legally separate from the national airline which has been partly privatized. Other private airlines have also been licensed to operate, although the recent history of the sector displays a concerted effort to eliminate competition in the industry. The country has joined the most important international organizations (e.g. European Civil Aviation Conference). The Chisinau airport terminal was renovated with a cost-effective, low-cost, approach financed by the European Bank for Reconstruction and Development and repaid by an airport user charge of $10 a head. Total passenger volume has increased by about 12% over the past three years. Due to its central location between Eastern and Western Europe, Chisinau airport could be an excellent hub for international freight forwarders. The International Airport of Chisinau is situated 14 km from the downtown part of the city. At the moment 12 airline companies have flights to more than 18 European and Asian countries. Joint flights are also made. 1. Transport between the Major Cities To travel between major cities, one can use either the train or a bus or car. Trains The train operator in Moldova is CFM (Calea Ferata din Moldova). The Chisinau train station is located in a very convenient part of the capital - not far from the downtown area on 1, Aleea Garii Str. (+373 22) 83 27 34). Each day there are direct or transit routes to different regions of Moldova. Trains to Ocnita, Otaci, Balti, Giurgiulesti, Ungheni, Calarasi, Straseni, Bender, Basarabeasca, Cahul, and Tiraspol are available. Prices vary, depending on the distance, from 6.5 MDL (0.4 EUR) for suburban trips, to 35 MDL (2.2 EUR) for a trip in the range of 100 km, to 80 MDL (5 EUR) for more distant locations (200 km) in the case of Ocnita and Otaci. The train timetable can be found on the CFM site: www.railway.md. Eurostar times and fares are at www.Eurostar.com. To check any European train time go to http://bahn.hafas.de. Buses There are three bus stations in Chisinau that ensure a link with all towns and villages in the country and with other countries. The central bus station (Gara Centrala) is located in the centre of Chisinau on Mitropolitul Varlaam Str. Buses to localities within Moldova, centre and south of Transdniestria, Ukraine, Romania and Russia depart from here. 17
COUNTRY FACT SHEET For information call (+37322) 54 21 85. The south bus station (Gara de Sud) is in Chisinau on 146, Hincesti Str. Buses to the south of Moldova and Gagauzia (Comrat, Cimislia, Cahul, Vulcanesti etc.), for the south of Romania, Russia, Greece and Bulgaria depart from here. For information call (+37322) 72 39 83. The north bus station (Gara de Nord) is a recently built modern terminal not far from the central bus station, close to the tobacco factory “Tutun CTC” and the biggest market for clothes, shoes and goods in Chisinau “Calea Besarabiei”. Buses for the north of Moldova (Soroca, Balti, Edinet, Floresti, Tipova, Saharna etc.) and Transdniestria (Dubasari, Rybnitza, Grigoropol, Bassarabeasca etc.) depart from here. For information call (+37322) 41 13 38. Prices vary, depending on the distance, from between 3-10 MDL (0.2 – 0.6 EUR) for suburban trips, to 0.5 MDL (0.03 EUR) per km for the rest of the country. For example, it would cost about 100 MDL (6 EUR) to make a trip of about 200 km. Cars Private vehicles need insurance. The Green Card system, which contains the distinctive MD mark, is accepted in the territory of Moldova. Drivers should possess an international driving license, issued by the 1968 International Convention on Road Traffic. There are petrol stations at frontier points and on the roads. The average fuel price per liter is 0.88 EUR for A95H fuel and 0.76 EUR for diesel. Speed limits are 60km/h in built-up areas and 90 km/h outside built-up areas. IX. MEDIA AND OTHER COMMUNICATIONS 1. Media Television is the most-popular medium. The public broadcaster’s Moldova One channel is available nationwide. Observers say it presents a highly-favorable image of the ruling party. Russia’s Channel One and Romania’s Antena 1 networks are widely available. By 2009 there were 37 terrestrial TV channels, 47 radio stations and 168 cable operators, according to the media regulator. The press divides along pro-government or opposition-leaning lines. Political parties publish their own titles. Moldovan editions of Russian papers are among the best-selling publications. The reach and impact of the print media are low. While the constitution guarantees press freedom, the penal code and press laws prohibit defamation and insulting the state. Reporters Without Borders (RSF) said the media were “targeted” by demonstrators and “treated as an enemy” by security forces amid postelection protests in April 2009. The authorities in the breakaway Trans-Dniester region operate their own TV and radio outlets. 2. Internet The Internet in Moldova is developing very quickly. The overall number of Internet users in the country increased by a factor of 30 in the last 8 years, and is continuing to increase. In September 2007 there were 727,700 Internet users in Moldova with overall Internet penetration of 19.5%. Around 850,000 Moldovans were online by September 2009 (Internetworldstats). 18
COUNTRY FACT SHEET 3. Phones The Moldovan phone system is outmoded and rather inadequate. It offers a poor service outside Chisinau though some modernization is under way. In some areas, new subscribers may face a long wait for services. A GPRS system is being introduced and a CDMA mobile telephone network began operations in 2007. Combined fixed-line and mobile-cellular tele-density is currently approaching 70 per 100 persons. At the moment there are five mobile operators in the country. Unite and IDC are CDMA2000 systems; Orange, Moldcell, and Eventis are GSM. The overall mobile network penetration in the country was 55% in 2008. X. VULNERABLE CASES Victims of trafficking The Chisinau Assistance & Protection Centre (CAPC), managed by IOM and Ministry of Social Protection of Moldova, provides temporary shelter in a safe and welcoming environment to adults, elderly, children and mothers with small children who are both victims and potential victims of trafficking. A wide range of services are available, including medical, psychological, social, legal, educational and recreational services. Individuals in need of its services can contact the centre directly. Officials and other agencies (e.g. police, border guards, social services, NGOs, and embassies) may also refer trafficked persons or “at risk� individuals to the National Coordination Centre within the Ministry of Labour, Social Protection and Family (MLSPF). Children and Mothers The constitution of the Republic of Moldova stipulates that mothers and children have the right to assistance and special protection. All children, including those born outside wedlock, are entitled to the same social protection. The state provides allowances and assistance for the care of sick or disabled children. As noted above, children, as well as pregnant women and those who have already given birth, have their insurance contribution paid by the government. Education Through its reintegration services, IOM Moldova can provide educational support for returning migrants. If necessary, the tuition fee for studies at university or similar educational institutions can be covered, as well as kindergarten and school fees for children who return with their parents. Special education offers training for children with mental and physical impairment. Generally, the duration of compulsory education is 8 years. Employment and vocational training The Chisinau Assistance & Protection Centre (CAPC) may be able to help. The National Employment Agency can also be approached for job mediation and for counseling vulnerable cases. The centre for vocational training and social reintegration, Insula Sperantelor (www.insula.md), aims to promote the social reintegration of victims of trafficking in human beings and people in high risk situations by offering: a vocational training; placing in the job market and social reintegration on a case by case basis. IOM Moldova 36/1 Ciuflea str., MD-2001, Chisinau Tel: (+373 22) 23 29 40/41, Fax: (+373 22) 23 28 62, e-mail: iomchisinau@iom.int http://www.iom.md/
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COUNTRY FACT SHEET Chisinau Assistance & Protection Centre (CAPC) and MSPFC - National Coordination Centre Tel: (+373 22) 72 72 74, (+373 22) 73 54 85, e-mail: coordonator.snr@mpsfc.gov.md International Centre “La Strada” Hotline 0 800 77777 (in Moldova - free of charge), (+373 22) 233309 (from abroad) NGO “Interaction” Hotline in Transnistria: 0 800 88888 (in the region - free of charge), (+373) 533 8 60 30 (from abroad) XII. USEFUL LINKS AND CONTACTS Moldova http://www.moldova.md http://www.moldova.org The President of the Republic of Moldova http://www.president.md The Parliament http://www.parlament.md The Government http://www.gov.md The Border Guards Service http://www.border.gov.md/index_m.htm The Ministry of the Interior http://www.mai.gov.md The Ministry of Economy and Trade http://www.mec.gov.md The Ministry of Foreign Affairs and European Integration http://www.mfa.gov.md Ministry of Health http://www.ms.md The Bureau on Inter-ethnic Relations http://www.bri.gov.md The Bureau on Migration and Asylum http://www.mai.gov.md/biroul-migratie National Company of Medical Insurance http://www.cnam.md Free International University of Moldova http://www.ulim.md Centre for vocational training and social reintegration “Insula Sperantelor” http://www.insula.md Website of the Ministry of Labour, Social Protection and Family for the treaties http://mpsfc.gov.md CIA – the World Factbook https://www.cia.gov U.S. Department of State http://www.state.gov The National Employment Agency (NEA) www.anofm.md www.jobmarket.gov.md
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COUNTRY FACT SHEET Migration http://www.migratie.md Railway information www.railway.md www.Eurostar.com http://bahn.hafas.de Postal Service http://www.posta.md/
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