The world is switching over to new International [property] Valuation Standards (IVS)  but Moldova keeps using obsolete, long-outdated norms that only lead to great financial losses and kill development possibilities, maintain the representatives of the Moldovan Society of Independent Appraisers (SEI RM).     

SEI RM Executive Director Dumitru Taraburca told a news conference held at INFOTAG on Thursday that in 2022, the National Agency for Land Relations and Cadastre became a member of the International Valuation Committee, which is now (from April 28 to July 28, 2023) holding consultations on the new edition of the International Valuation Standards. But in Moldova, this issue is not even raised, although in neighboring Ukraine it is the subject of serious discussions.

Taraburca stressed that the current profiled legislation of Moldova contradicts many norms adopted in the global investment community.

“Evaluation and the appraiser is a public specialty, the results of which, in certain cases, are socially significant. Only on the liquidation of 3 commercial banks and on the sale of an air company [the Air Moldova state company], the Moldovan State Budget lost several billion euros. Unfortunately, appraisers keep playing an essential role in this: they continue to tackle the most complex problems in the same outdated manner - without much success,” the expert believes.

The SEI RM plans to apply through Ukrainian partners to the International Committee with its proposals that concern the abolition of certain provisions on the correct/incorrect assessment of the value, the need to take into account the production and service potential of the object in the valuation, etc.

“The introduction of International Valuation Standards (IVS) will give the possibility in our country to put an end to the issues of inefficient management of state and municipal assets and will give impetus to economic development. Now Moldova has a unique chance to integrate into the European Community in parallel with the world and get another instrument to improve the efficiency of economic decisions. It doesn't matter who develops the valuation standards for the Republic of Moldova, the main thing is that they are adapted to the world practice,” concluded Taraburca.