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SALVATION FOR EXPENSIVE FOOD- INCREASED DOMESTIC PRODUCTION

DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS 3Date 28.04.2008 number 20 berzNIK

Dutch grant

– sign of faith in Macedonia* The Government received one more acknowledg-

ment for the successful reform and economic policy, onemore support before the Easter holidays – a grant agree-ment for improvement of the investment climate and publicsector management. Meaning, the macroeconomic stabili-ty of Macedonia will be supported by a grant in the amountof 7 million euros, provided by the Dutch Government as asupport to the project, financed by World Bank. Accordingto the Ambassador of the Kingdom of the Netherlands,Simone Filippini, her country is supporting the develop-ment of many countries all over the world, but it rarely sup-

ports macroeconomicpro jects. – The fact thatthe country receives mac -ro support is a sign of fa -ith in it, emphasized Am -ba ssador Filippini. Shere commended to WorldBank and the MinisterSla veski to use the fundswi sely.

In the name of thetrust given, Minister Sla -veski informed that thefunds are already project-ed in the current budget.– These projects arefocused towards improve-ment of the investmentcli mate and strengthen-ing of the efficiency of thepub lic sector and its man-agement. Slaveski em -pha sized that part of themoney from the grant willbe used for improvementof the investment climatethrough reforms in the ju -di ciary and the labor mar-ket, strengthening of thefinancial mediation andsupervision and strength-

ening of the competitiveness of the business sector. Thesecond part refers to strengthening thorough public sectormanagement, where reforms of the public administration,the public health and the decentralization process arebeing financed.

World Bank Resident Representative to Macedonia,Markus Repnik, emphasized that the contribution from thisagreement is significant and that it supports the key ele-ments in a reform agenda. According to him, the reformagenda which was carried out under these projects alreadygave results. – In September last year, Macedonia wasranked among the best countries regarding the rate ofimprovement of the business climate in World Bank’sReport, Doing Business. Repnik emphasized that WorldBank, along with the Dutch Government and other interna-tional partners will support Macedonia in its reforms andEuropean integration.

* The Italian investors also concluded that Macedoniais interesting for investments. Businessman from this coun-try is interested of building of a hotel from the brand ofSheraton or Hilton in Skopje. This was announced by theItalian businessmen during their visit in this country. Theyshowed most interest for the energy sector, as well as forinvesting in real estate and the environment in Macedonia.

* The German construction company Hochtief is alsointerested to invest in our country, the airport in Skopje,Financial Times Deutschland said immediately before theholiday. The newspaper, quoting Government sources from

Macedonia, points out that Hochtief, which already ownssha res in the airports in Tirana and Athens (as well as inthe airports in Sydney, Budapest, Hamburg and Düssel -dorf), has a good chance to win the deal for the Ma ce do -nian airports. According to Government’s plan, which wasre cently published in the media, the best bidder shouldinvest 300 million euros in the development of the three air-ports in this country.

* Even the Greek businessmen, who are some of thebiggest investors in Macedonia, are interested for the busi-ness cooperation between the two countries to continue.

Let us remind that Greece invested about 300 millioneuros and makes a profit of about a billion euros in Ma ce -donia. I do not believe that the Greek politicians forgot thisdata when they forbid MAT to fly over their territory. Then,deliberately or accidentally, the barriers also appeared dur-ing the traditional import of Macedonian lamb into Greecebefore the Easter holidays. What could be expected afterall of this… Counteroffensive of course… Now theMacedonian citizens are also canceling the tourist arrange-ments for Greece. First the trips for the Easter holidayswere canceled, and now the summer arrangements arealso boycotted. According to the estimations, even 80% ofour citizens who had an intention to spend their summer inGreece gave up from the idea. The situation encouragesthe citizens who boycott the Greek products and compa-nies in Macedonia. The turnover is decreased by 15% onlyin the supermarkets of VERO. They ignore the fact that5.56% of the employees in the country are working in com-panies with Greek capital.

We will also lose in this trading war, but, in any case,our Southern neighbor stepped on the dignity of the com-mon citizen and of the rich people who went shopping inGreece… Let us not forget that the Greek market wasovercrowded with Macedonian shoppers during every holi-day… They emptied their valets there. But, as things are atthe moment, both sides lose. Because of the cancellationof all arrangements to Greece, the tourist agencies inMacedonia lost about half a million euros. They will not gettheir money back, because they paid the money to theirGreek partners several months ago as a deposit for rentingof hotel rooms and suites for the summer tourist season.

Representatives of the Association of the Travel Agen -cies of Macedonia say that if they consider the rented char-ters to the Greek islands, the damage for the cancellationof the arrangements for Greece would be somewherebetween 3 and 5 million euros.

* The war with economic restrictions which was initiat-ed by Greece involves the businessmen as well. Due tothat, not only the political authorities came out with harshreactions and protest note, but the chairman of the busi-ness association in Macedonia also tried to amortize thesituation. Chairman of the Economic Chamber of Ma ce do -nia Branko Azeski wrote to his Greek counterpart GeorgKasimatis, from whom he requested to appeal to theGreek authorities to cancel the blockades of the Ma ce do -nian products which are exported to Greece. According toAzeski, the recent occurrences with the Euro-Atlantic inte-grations disappointed the business community, but they didnot discourage in their orientation for the economy to con-tinue functioning in accordance with the matrix of thereforms regarding NATO and the EU.

Until the next Monday

Makedonka Baldazarska

BerzNIK editor-in-chief

e-mail: [email protected]

Even before the elections – praises, support andencouragement for us to continue on our waytowards Europe, even though we were tripped on theway towards NATO. Everyone supports us, butnobody can stand on the way of our Southern neigh-bor. The country which is the main reason for the suf-fering of the Macedonians on the Balkans and wider.The ones who say one thing in our faces and havedifferent attitudes behind our backs know this verywell. Sure, this is my thesis. This whole thing is justflattering, everything OK, but nothing can be donewithout good neighboring relations. I do not know asof when does changing of your own name is classi-fied as good neighboring relations…If you are notcalled X there goes the neighborhood…Just like thecommercial, either credit card or no sale…That isdemocracy for you in the civilized world of the bigcountries…It will be as they wish – democratic, or asthey plan, only with an economic restraint, or in otherwords, quiet economic blockade…But, anyhow, inthe name of the good neighboring relations and forthe sake of the big democratic countries, we are try-ing to carry out the wishes which should bring eco-nomic progress in Macedonia…Well, we lasted thisfar, we suffered a lot, we only need a bit of diploma-cy and we will become a part of the smart democra-cy!...Is not the boon of mankind contained in the well-being of all nations?...

4 DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS

berzNIK number 20 Date 28.04.2008

The purchase of Macedonian products,implementation of the Book of Rules fromilk, rural development projects and

appropriate usage of the money from theEuropean funds are the topics on whichMacedonian and Slovenian ministries of agri-culture discussed at the last week’s meeting inSkopje. On this second visit to Macedonia,Slovenian Minister of Agriculture Iztok Jarc andthe host, Minister of Agriculture of Macedonia,Aco SPasenovski, came to mutual conclusionthat our country moves in the right direction inthe agriculture sector. Our country will useSlovenian experience to get closer to theEuropean standards. Slovenian experts will becarrying out trainings for increase of the freshmilk quality and will help in as much bigger andmore rational usage of the European funds fordevelopment of rural environments as possible.

- We talked about specific things we can dotogether and about deepening what we havedone the past years. We discussed about theimplementation of the Book of Rules on the milkquality of a farm and exchange of experiences,where Slovenian experts would train our farm-ers and milk producers. In this period of coordi-nation and adjustment we will actually be usingthe Slovenian experience, Spasenoski said.

Slovenian minister pointed out that for thepast period Macedonia has made big successin adjusting Macedonian legislation to the oneof EU. - EU’s agricultural policy is actuallyexpressed as mutual policy and therefore it isvery important that we prepare on time for itsimplementation, so a lot of resources, bothhuman and financial have to be given to thisproject. In this direction Macedonian progress-es pretty good, Jarc said.

He confirmed Slovenia’s readiness to con-tinue helping our country in the development ofMacedonian village and announced technicalaid in setting software for keeping track on thepurchase from the placement of fruit, vegetableand meat, adjusted to the Macedonian needs,with special accent to the food safety, all of thisfor business connection and placement ofMacedonian products in Slovenia, especially inthe part of early garden products, fruit, veg-etable and Macedonian lamb.

As very important the Slovenian ministerpointed the standard projects for small process-ing capacities for their business activities. –That’s the model of rural development, whereSlovenia has great experience. These smallprojects will help Macedonian villages andMacedonian rural development to be able todevelop. Slovenian experience plays big rolehere, both in using the European funds and thespecific standard projects. Apart from the subsi-

dizing and the European funds, in the upcomingperiod the Agriculture Ministry has to directtoward the rural development as well, the mis-ter from Slovenia said.

Slovenia has successfully been using the

money from the European pre-accession funds,and the country allocates 300 million euros forgrants in agriculture yearly for the hundred reg-istered farmers.

K.S.

SLOVENIAN EXPERIENCE FOR USING THE PRE-ACCESSION FUNDS

- EU’s agricultural policy is actuallyexpressed as mutual policy and therefore itis very important that we prepare on timefor its implementation, so a lot of resources,both human and financial have to be givento this project. In this direction Macedonianprogresses pretty good

ON THE ROAD TOWARD EU- RURAL DEVELOPMENT A PRIORITY

OPENED OFFICE OF SLOVENIAN-MACEDONIAN BUSINESS CLUB

NEW IMPULSES FOR GREAT BUSINESS COOPERATION

In the rooms of the Economic chamber of Macedonia last week was opened an Office of

Slovenian-Macedonian business club and accepted were 19 new members. At the gathering of

the companies bearers of the business relations between the two countries, present were also

the Ambassador and the Consul of Republic of Slovenia to Macedonia, Alain Brian and Tomaz

Trobentar.

The Slovenian-Macedonian Business Club was founded in 2004 at the initiative of Marijan

Siftar, ex Ambassador, together with few companies with joint capital from the Republic of

Macedonia. The business club was formed to improve the economic activities, for support of

turnover, investments, the economic cooperation and development between the economic enti-

ties of the two countries, as well as for the support Republic of Slovenia is giving to the

Republic of Macedonia to its road toward the European Union.

President of the Club’s assembly is Momo Rafajloski, and president of the Board of

Directors Damir Kuder. As of November last year the Club started to operate professionally,

and for executive director is appointed Iskra Jovanovik. Starting with the first 10 companies,

founders of the club, now the club has 73 members. Besides with joint capital, members are

also firms and companies which are in full Macedonian ownership, but cooperate with Republic

of Slovenia. This only shows that there is climate of cooperation but also that Macedonia is

favorable place for investments.

Ambassador of Republic of Slovenia, Alain Brian Bergant, pointed out that this was one of

the most active business clubs of this kind on the Balkan and on the territory of former

Yugoslavia, and next is announced financial support by the Slovenian country.

- Compared to the other EU countries, Slovenian consulate in the Republic of Macedonia

has the most liberal regime and the biggest number of issued visas- Tomaz Trobentar under-

lined. – The alleviations that are planned refer to the part of business trips to Republic of

Slovenia. When submitting the documents for visa, the document issued by the Economic

chamber of Macedonia on the company where the applicant works will no longer be required.

At the end of June it is planned organizing of Days of Slovenian-Macedonian Business

Club, when the members will have an opportunity to present themselves to the wider public.


2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS1. THE LAMB AND MAT REMAIN BLOCKED (****)2. THE EUROPEAN BANK HAS ANNOUNCED 250 MILLIONS OF EUROS FOR THE WESTERN BALKAN (****)

21.04.2008 MONDAY

1. SHORT REVIEW OF EVENTS

DNEVNIKp.11 EXPORT IN UKRAINE STARTING FALL p.11 EUPHORIA MOVES THE STOCK MARKETS

IN THE REGION p.11 IDEA FOR NEW CREDIT CARDS IN EU RO -

PE p.11 CATTLEMEN DO NOT SELL THEIR LAMBS

BIZNISp.1 OKTA PAID 154; MAKEDONSKI SHUMI

OWES 18 MILLION EUROSp.2 CAPITAL MARKET BETWEEN THE POLI-

TICS AND REGIONAL STOCK EVENTS p.3 ABSURD GREEK JUSTIFICATIONS OF THE

FOOLISH MOVE!?p.3 GREEK FARMERS BLOCKED THE BOR-

DER p.3 SPEAK UP WEEKEND NEW OFFER FOR

THE YOUTH p.7 CREDIT LINE OF 250 MILLION EUROS FOR

WESTERN BALKANSp.12 ECONOMISTS SPEAK THE SAME LANGU -

A GE p.12 REINFORCEMENT OF THE COMPETITION

IN PHASES p.13 IN FAVOR OF THEIR OWN DAMAGE p.15 MBI-10 FELL FOR 1, 17 PER CENTp.15 THE BLOCK SKOPJE WEIGHTY 23, 5 MI -

LLI ON DENARSp.15 BLOCK TRANSACTIONS WITH SHARES

OF EVROPA - SKOPJEp.16 THE PROJECTED RATE OF ANNUAL IN -

CRE ASE OF THE CAPITAL M4-28,6 PER-CENTS

p.16 THIS WEEK IS EXPECTED FALL IN PRICEUTRINSKI VESNIKp.7 OIL RAGES ON GLOBAL STOCK MAR-

KETS, GOVERNMENT JUST WATCHES

p.8 THE EUROPEAN BANK HAS ANNOUNCED250 MILLIONS OF EUROS FOR THE WEST-ERN BALKAN

p.8 OLEG DERIPASKA - RICHEST RUSSIANBUSINESSMAN

VECERp.6 THE GREEK STOCKBREEDERS HAVE PUT

A RAMP ON THE MACEDONIAN LAMBp.6 GREECE WILL NOT RECALL THE DECISI -

ON ON MATp.6 THE POLITICS – THE BAROMETER OF

THE STOCK MARKETVREMEp.6 THE GREEK STOCKBREEDERS HAVE PUT

A RAMP ON THE MACEDONIAN LAMBp.6 GREECE WILL NOT RECALL THE DECISI -

ON ON MATp.6 THE POLITICS – THE BAROMETER OF

THE STOCK MARKETVESTp.6 EVN – ESM SHOULD DISCONNECT HALF

OF MACEDONIA p.7 GREEKS WITH BARRICADES AGAINST

MACEDONIAN LAMB NOVA MAKEDONIJAp.1 PASSENGERS AHEAD, LAMBS STOP!p.5 JANAKIEVSKI FILES PROTEST NOTE TO

THE GREEK MINISTRY OF TRANSPORT p.5 EBRD INVESTS 250 MILLION EUROS IN

WESTERN BALKAN p.5 CAPITAL OF 4,2 MILLION EUROS TRADED

ON THE STOCK EXCHANGE SPICp.5 THE BUTCHERIES IN STRUMICA ARE IN

LOSSES BEFORE EASTER p.5 QUARTER BILLIONS OF EUROS FOR

WES TERN BALKAN

Greece and Macedonia are on the edge of tradewar; Lamb and MAT remain blocked; the Governmentstill hasn`t received an official answer to the protest no -te sent to Greek authorities on the occasion of thetrans porter MAT`s ban for charter flights in this country.These are the main news in all today`s newspapers.For the Government, according to competent bodiesfamiliar with this problem this situation and the block-ade of Macedonian lamb import mean trade war ofGreece with Macedonia. In addition to this thesis arethe protests of Greek farmers who announced block-ade of Macedonian lamb import. Greek stockbreedersare against the import of lamb or any other meat fromMacedonian stockbreeders because it will endangerthe sale and the price of their products. This is secondshock for Macedonian stockbreeders since ten daysago, during the import ahead of eastern holidays; Gre -e ce stopped our shipments, leaving around 60 thou-sand lambs unsold.

- The European bank for reconstruction and devel-op ment (EBRD) has announced a credit line of 250 mil-li ons of euros for support of the development of themicro, small and medium sized entrepreneurships onthe Western Balkan. The board of directors of EBRD on12 of May will hold a meeting to dispute about theapproval of the credit line for the financial in Serbia,Montenegro, Bosnia and Herzegovina, Macedonia,Cro atia, and Albania and in Kosovo. The purpose ofthis project is to straighten the crediting of the smalland medium sized entrepreneurships, and to providede velopment of the mortgaging credits, leasing, factor-ing services, i.e. repurchasing of short term debts aswell as development of the insurance services.

Vreme publishes that importers use bank guaran-tee and don`t dare to use customs relief. So far none ofMacedonian companies asked for one hundred percentreduction of the bank guarantee for import of goods.

The reason for this are too high criteria placed by theCustoms, complain importers. According to the cus-toms it is about companies` inertia and insufficientinformation about the entire exemption of bank guaran-tee.

- The politics – barometer of the stock market isthe headline of the weekly stock exchange analysispublished by Vecer. According to the analysis smallprofit of 4.2 million euros was realized on MacedonianStock Exchange. This is less for one million euros inrelation to previous week. By the middle of the week,the stock exchange index MBI-10 was dropping andincreasing to close the week with 5.692, 42 indexpoints, which is 1.17% decline. These indicators onlyconfirm that capital market hasn`t been left immune tothe current political event in the country.

Dnevnik informs about the stock exchange analy-sis published in Croatian newspaper, PoslovniDnevnik. – Psychological moments in investors behav-ior not the market`s fundament are crucial for stockexchange indexes movement in the region. The eventsin the last few months confirm theories from the schoolbooks. The interest about investigating investors`behavior emerges after the New York Stock Exchangedownfall in 1929 which resulted with the bankrupt ofhundreds of banks where many Americans lost theirjobs. Than the psychologists established that majorityof the market behaves according to the psychology ofthe public pile which characterizes with irrationalbehavior. According to questionnaires, 73% of theinvestors in Japan and 64% in USA give advantage topsychology of investors before markets`s fundaments.Spokesperson of Zagreb Stock Exchange, ZeljkoKardum, considers that the rapid decline and growth ofshares on the Stock Exchanges in the region indicatethat investors behave euphorically.

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STOCK EXCHANGE REVIEW OF EVENTS IN THEPRINT MEDIA berzNIK

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STOCK EXCHANGE REVIEW OF EVENTS IN THEPRINT MEDIA berzNIKNumber: 20Date: 28.04.2008

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FRONT PAGE PHOTO:PETAR GOSEV - GOVERNER OF NBRM

Photo:Robert Spasovski

Editorial staff of berzNIKInternet distributive system: www.interNIK.com.mkEditor: Makedonka BaldazarskaJournalist: Vaska Mickoska, Kiro SimonovskiDTP: Tatijana TrpkovskaEditorial staff:News Evaluator: Anita Bashoska, R. Tasovska[operators]:Mare Lazarevska, Arslan Skoro, Zoran Stamatovski,Martin Arsovski, Gorge Redzik, Toni Arsovski i Darko Tripunovski [translators]: translator's manager Senka Mihajlovska, AngelinaFilipovska, Slobodan Trajkovski, Aleksandar Stamenkovski, AnetaMenoska, Filip Koviloski, Darko IvanovskiFotoreporter: Robert Spasovski

Marketing, distribucija i proda`ba: INTERNACIONAL NIK AD - Skopje

I M P R E S S U M

C O N T E N T S

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . 3

SLOVENIAN EXPERIENCE FOR USING THEPRE-ACCESSION FUNDS . . . . . . . . . . . . . . . . . . . . 4

berzNIK, MONDAY, TUESDAY, WEDNESDAY. . . . 5-7

NBRM- WORKROOM FOR THE FOODPRICES AND INFLATION . . . . . . . . . . . . . . . . . 8 - 9

JOHN JONOVSKI, OWNER OF PHALANXCAPITAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-11

OPTIMISM FOR THE MACEDONIAN TEXTILE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-11

STOCK EXCHANGE NEWS.. . . . . . . . . . . . . . . . . 12

berzNIK, THURSDAY, FRIDAY, SATURDAY..13-14

WEEKLY MAGAZINES...….. . . . . . . . . . . . . . . . . . .15

BUSINESS MEETING OF EC AND THE PRESI-DENT OF THE GOVERNMENT AND VMRO-DPMNE, NIKOLA GRUEVSKI......................16

PAST WEEK IN THE TOKEN OF... ..............17

WEEKLY REVIEW OF THE MACEDONIANSTOCK EXCHANGE............................18-19



- This year, Macedonia should make econo -mic growth of 4.5%, while the growth will be 5%next year; this was the prognosis of the In ter na -ti onal Monetary Fund which was published to -day’s editions of all print media. This prognosisis part of the latest report, which was preparedby experts of the International Monetary Fundand which is meant for the European countries.

These prognoses are far lower than thosefor the following period that have planned theMa cedonian authorities who are outgoing, andwho envisage that the GDP will range between6 and 6.5%.

The experts doubt that in time of electionsthey can achieve such successful economic re -sults. The Macedonian economy achieved anin crease of 5.1% last year.

In the analysis for the ranging of the Eu ro -pe an economy, announced yesterday on the ofIMF’s website, it is estimated that Croatia in thesa me period will make growth of 4% in 2008 and6% in 2009, while Serbia 4.3% in 2008 and 6%in 2009, while Serbia 4.3% in 2008 and lessthan 4% in 2009.

The news that Macedonia received a grantfrom the Dutch government from seven millionsof euros for improving the investment climateand for straightening the managing and the effi-ci ency of the public sector was also topical in to -day’s editions of the daily newspapers. The Am -ba ssador Simone Filipini said that Hollandsupports the development of many countries,but in a small part of them finances macroeco-nomic pro jects. Since 1999, Holland has provid-ed 102 mi llion euros as a macroeconomic sup-port of Ma cedonia. The money is already

planned in the Budget.The Prime Minister Nikola Gruevski, the

De puty Prime Minister Zoran Stavreski, the Mi -nis ter of Finance Trajko Slaveski and the direc-tor of ELEM Vlat ko Cingoski met with the busi-nessmen from the Macedonian Chambers ofCommerce. They wan ted to hear their demandsand proposals, which, according to Gruevski,could be even in clu ded in the electoral programof the party. The in vitation for the meeting camefrom the Go vern ment’s services, but Gruevskiemphasized that they met at VMRO-DPMNE’srequest.

The purchase of Macedonian products, im -ple menting the regulations for milk, projects forru ral development and right utilization of the mo -ney from the European funds are the key topicson which discussed the Macedonian and Slo ve -ni an ministers of agriculture, today’s editions ofthe print media inform.

With liberalization to cheaper Internet. Ma -ce donian railways rented part of the optical cab -le that is in their ownership to the VIP operatorof TELESMART. The price is 3000 denars per aki lometre, and the time for which the cables willbe rented will be determined at the signing ofthe agreement that could be signed from two toten years. It is a matter of a total length of an op -ti cal cable from Tabanovce to Veles, which en -ters Skopje too, with length of 120 kilometres,and in the next phase other optical cables will beof fered, informs Nikola Dimitrovski, director ofMa cedonian railways Transport. This is a sec-ond time for the optical cable to be rented. Thefirst time it was in 2006, but because a deal hadbeen made with an indirect agreement with one

do mestic company, it was annulled.In today’s edition of the daily newspapers

you will read that the entire Macedonian exportis carried out without an international mark. No -ne of the agricultural food products from Ma ce -do nia does not have international trademark.The trademarks mean that the products arestan dardized and quality, and without them, thepro ducts are without their geographic origin.The re is a danger for the products we exportwith out the symbols contained in the trademark,to end up on the markets in other countries asso me other products without geographical ori-gin.

The news about the export of lambs in Gre -e ce does not stop. The Macedonian lamb willstill end up on the Greek market as Serbianmeat, are the speculations from the butchersfrom Skopje, while Greece complains that theyare overflow with smuggled lamb meat from ourco untry. - The Serbian companies buy our meatand export it in Greece as their own. Thereforethe re is an increased export and smuggling oflamb meat in Serbia, a country that had beenun known for the domestic exporters-the butch-ers say. The representatives of the federation offarmers in Macedonia do not know whether thelamb is being smuggled in Greece and theyclaim that the repurchase this year is drasticallylower, than from the last year.

- The Government’s Spokesman IvicaBocevski and the Minister of Agriculture AcoSpasenovski came out yesterday with appealsto the Greek authorities, and the first man of theMacedonian Chambers of Commerce, BrankoAzeski, addressed to the Greek businessmen.


2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS

1. MACEDONIA SMUGGLED LAMB`S MEAT IN GREECE?! (*****)2. HOLLAND DONATION OF SEVEN MILLION EUROS (****)

22.04.2008 TUESDAY

DNEVNIKp.7 GREECE ACCUSES US OF LAMB SMUGGLINGp.7 HOLLAND DONATION OF SEVEN MILLION EUROS p.7 THE RAILWAYS RENTS OUT THE OPTICAL CABLE p.7 МBI 21.04.2008p.17 THE FAULTED STOVE OF USJE WILL NOT BE DISCONNECTED

BIZNISс.1 MACEDONIA WITH ECONOMIC GROWTH TO FIVE PERCENT p.3 GOOD STOCK FINDS ITS PLACEMENTp.3 THOUSANDS OF LAMBS SMUGGLEDp.3 SEVEN MILLION EUROS GRANT FOR THE COUNTRYp.13 МBI 21.04.2008p.13 THE FALL OF MBI-10 CONTINUESp.13 ON THE OFFICIAL MARKET REALIZED 15 MILLIONS OF DENARSp.14 69, 2 MILLION DENARS TO PURCHASE ITS OWN SHARESp.14 NON-TRADE TRANSFERS p.14 TEN MOST LIQUID LISTED COMPANIESp.14 ALKALOID TO ALIENATE PERSONAL SHARES

UTRINSKI VESNIKp.1 IMF FOR THE FOLLOWING YEAR ENVISAGES ECONOMIC GROWTH

OF ONLY 4, 5 PERCENTSp.1 APPEAL FROM MACEDONIA TO GREECE TO STOP THE TRADE WAR p.9 МBI 21.04.2008p.9 VIP AND TELESMART WILL USE THE OPTICAL CABLE OF MZ p.10 ONE DENAR PER MINUTE OF CONVERSATION THROUGH VIP

MOBILE OPERATORp.10 SGIP TRAINED WORKERS FOR PROTECTION OF ACCIDENTS с.10 IMF FOR THE FOLLOWING YEAR PROGNOSES GROWTH OF 4, 5

PERCENTSp.10 TEXTILE WORKERS ASK GOVERNMENT TO HURRY UP ON PROTO-

COL WITH TURKEYp.10 A GRANT OF SEVEN MILLIONS OF EUROS FOR THE PUBLIC SEC-

TOR FROM NETHERLANDSVECER

p.6 VIP AND TELESMART RENTED PART OF THE OPTIC CABLEp.6 GRUEVSKI: ELECTIONS WILL NOT AFFECT ECONOMYp.6 AFTER TETOVO MILK BREAD REDUCES PRICE AS WELL p.7 GREEK BLOCKADES TO STOP!p.7 MACEDONIA SMUGGLED LAMB`S MEAT IN GREECE?!

VREMEp.2 THE BUSINESS PEOPLE ARE LOBBYING AGAINST THE TRADE WAR p.6 THE FARMERS WILL LEARN FROM SLOVENIA p.7 THE BUYER OF ALUMINA BECAME STATE SECRET p.7 THE CONSTRUCTION WORKERS DEMAND BETTER PROTECTION p.7 WITH THE LIBERALIZATION TO CHEAPER INTERNET p.7 NO HERO TO PROTECT OUR FOOD ABROAD p.9 THE CEMENT FACTORY WENT OUT WITH A FINE

VESTp.2 DUTCH GRANT OF SEVEN MILLIONS OF EUROS p.4 TAXING THE TIP OF THE WAITERSp.7 ROASTED LAMB FOR THE SLOVENIAN MINISTER

NOVA MAKEDONIJAp.3 ECONOMIC GROWTH OF 4, 5 PER CENT IN MACEDONIA p.5 THE FOOD PRICE THREATENS THE STABILITY p.5 ONE DENAR FOR A MINUTE TALK p.5 SPEAK UP WEEKEND WITH REDUCED TARIFF p.5 DELIKATES DIAZ EXPORTED BAKED GOODS WORTH 400 THOSAND

EUROp.5 THE FIRST SLOVENIAN SUPERMARKET IN SHTIP

SPICp.1 THE LAMB GOES TO GREECE WITH SERBIAN PASSPORTp.6 7 MILLIONS OF DUTCH EUROS FOR MACEDONIAp.6 INCREASE FOR 4.5 PERCENTS



23.04.2008 WEDNESDAY

DNEVNIKp.8 DEUTSCHE TELECOM WANTS A TOTAL CONTROL OF OTE p.9 МBI 22.04.2008p.9 PLACEMENT OF LAMB MEAT WILL BE FORBIDDEN ON THE

GREEK MARKETp.9 EXPORT IN GREECE VIA SERBIA AND BULGARIA p.9 MACEDONIAN MILK IN FOUR YEARS IN EU

BIZNISp.1 IT IS TOO LATE FOR REDIRECTION p.4 IT IS TOO LATE FOR REDIRECTION p.11 THE THREE STOCK EXCHANGE INDEXES IN INCREASEp.11 CONCLUDED FIVE TRANSACTIONS WORTH 36,7 MILLION

DENARSp.11 A TURNOVER OF 14, 3 MILLION DENARS THROUGH 154

TRANSACTIONSp.11 MBI 22.04.2008p.15 MILESTONE DOMINANT OWNER WITH 90, 98 PER CENTp.15 NET- PROFIT FOR 2007- 146 978 567 DENARSp.15 ABOUT 25.000.000 DENARS FOR DIVIDEND OF ORDINARY

SHARES p.15 NON-TRADE TRANSFERS OF LISTED COMPANIES` SHARES

UTRINSKI VESNIKp.8 ALKALOID MADE PROFIT OF 6,8 MILLION EUROS LAST

YEAR

p.8 TOPLIFIKACIJA WITH PROFIT OF 1,9 MILLION EUROSp.9 THE BUSINESS MAN UNITED OPPOSE THE PATRIOTIC

CASH BOXES, THE GOVERNMENT DOESN’T WANT TO BOWp.9 EASIER TAXATION IN PRO

VECERp.6 TALKS OF ONE DENAR PER MINUTEp.6 CERTIFICATES FOR PROTECTION AT WORKp.6 SPEAK UP WEEKEND - 3, 9 DENARS PER MINUTEp.6 ONE TONE LAMB MEAT FROM MACEDONIA AND BULGARIA

CAPTURED IN GREECE?!VREME

p.7 THE RECEIVER TO SAY THE TRUTH ABOUT ALUMINANOVA MAKEDONIJA

p.5 ONLY SWEDMILK AND BITOLA DAIRY OWN EXPORTINGLICENSES

p.5 ALKALOID REALIZED 6.8 MILLIONS OF EUROS OF PROFITSIN 2007

p.5 PILKO WILL OPEN NEW PROPULSION FOR DELICATESSENPRODUCTS

p.5 IN GREECE ONE TON OF LAMB MEAT FROM MACEDONIAAND BULGARIA CONFISCATED

SPICp.1 THE PATRIOTIC FISCAL RECEIPTS IN CIRCULATIONp.5 STARTED THE ISSUE OF FULL LENGTH FISCAL RECEIPTS

The trade war between Greece andMacedonia is getting deeper.

The problems with the lamb export are verypresent in the daily papers even today. After theaccusations in the Greek papers of lamb smug-gling from Macedonia, the Government is seri-ously considering to officially ban the lambexport to Greece… The minister of agricultureAco Spasenoski says that the stock breedersshould not worry that their lambs will stay in thestockyards, since after the Eastern holidays hewould organize export for the Middle East.Nevertheless, the exporters are already mark-ing negative balance and claim that it is too latenow to compensate the lost placement of lambin Greece by redirecting the export in othercountries… Greek health inspectors require onthe meat intended for stores there be seal thatthe meat was from FYROM. Greek farmers yes-terday stopped the protests organized againstthe lamb import from Macedonia, Bulgaria andTurkey.

In order not to lose the Greek market, theMacedonian companies plan to open their ownrep resentation branches in Serbia and Bul ga -

ria.They claim that they do not have any prob-lems with their Greek partners, but they arecom plaining about the obstructions from thesta te organs in Greece.

The freighters were first to be under theblow, being forced by the Greek customs toalter the data in the documents. The customsser vices confirm that the protocol of passen-gers on the Macedonian – Greek border hasbeen cut in half and only the containers withChi nese goods, which arrive on the The ssa lo ni -ki port, have been passing without problems,and their final destination is Macedonia.

The German company Deutsche Telecomwants to have a total control upon the decisionma king process of the Direction council of theGreek telecommunication company OTE, to -day’s Dnevnik reports. At this moment theGreek state and Deutsche Telecom are ownersby 25% each plus one from the share capital ofOTE.

The two companies are present on theMacedonian market too. Deutsche Telecomthro ugh the Hungarian Matav owns Ma ce do ni -an telecom and Mobimak, and OTE is owner of

the second mobile operator Kosmofon. Only small percent of the milk meets all

European standards, and the major part doesnot meet the required criteria. Therefore thereis transitional period until 2012. Within thesefew years the farmers have to be trained andwork has to be done on field so that about 70 to80 percent of the Macedonian milk can meetthe EU standards - minister of agriculture, AcoSpasenovski, said at the visit of Central inde-pen dent milk laboratory at the Faculty of Ve te ri -na ry Medicine.

All business man is opposing the applyingof patriotic fiscal receipts, but the Governmentis persistent in the intention for their compulso-ry applying, until the beginning of July, this year,Utrinski Vesnik informs. Even the two Cham -bers of Commerce, which usually have differentstands and requirements in their address to theGovernment were united about this question.

In Biznis one could see in more details thefinancial reports on the working of several com-panies, such as Alkaloid, Toplifikacija, ZKPelagonija…

1. EXPORT IN GREECE VIA SERBIA AND BULGARIA (*****)2. DEUTSCHE TELECOM WANTS A TOTAL CONTROL OF OTE (**)


In order not to lose the Greek market, theMacedonian companies plan to open their ownrepresentation branches in Serbia andBulgaria. The businessmen are afraid that thedeteriorated political relations between the twocountries are going to endanger their businesseven more. They claim that they do not haveany problems with their Greek partners, butthey are complaining about the obstructionsfrom the state organs in Greece.

- I have already been inquired about the

procedures and I have understood that it is theeasiest to open a company in Bulgaria, but inSerbia as well. I already have Bulgarian pass-port and it will be easy to move the businessthrough this country – says the owner of a trad-ing company from Strumica.

In the Chamber of commerce in Macedoniaconfirm that the administrative procedures withthe southern neighbor have been increased,but the documentation acknowledgeable.

Deutsche Telecom wants a totalcontrol of OTE

The German company “Deutsche Telecom”wants to have a total control upon the decisionmaking process of the Direction council of theGreek telecommunication company OTE,announced yesterday the “Imerisija” newspa-per. Also the negotiations between the govern-ment in Athens and “Deutsche Telecom” arecontinuing in this direction, reported MIA.

At this moment the Greek state andDeutsche Teleco” are owners by 25% eachplus one from the share capital of OTE.

Export in Greece via Serbia and Bulgaria



NBRM - WORKROOM FOR THE FOOD PRICES AND INFLATION

SALVATION FOR EXPENSIVE FOOD

- INCREASED DOMESTIC PRODUCTION

- The increase of food prices inMacedonia is among the highest ones,Governor Petar Gosev pointed out at theworkroom on subject: Food prices and infla-tion, organized by NBRM right before theEastern holidays.

In March this year the inflation was 10,2percent and the increase of the food expens-es are 20,6 percent. According to Gosev thebest answer for such price shocks is the con-crete plan for increase of the offering on agri-cultural and industrial food products fromdomestic production. Increased investmentsin this sector and measures taken to preventfurther degradation of the plowland are theonly answer to this kind of events. – Most ofthe central banks throughout the world reacton these events by tightening up monetarypolicy, the Governor underlines adding thatNBRM reacts on the same way, regardless tothe opinions that allegedly there is nothing tobe done here.

Introduction speech of the Governor

- As a problem the food prices and infla-tion concern the regular people, manufac-tures, the experts and creators of economicpolicies. The concern is more than under-standable, because there is hardly someonewho hasn’t felt the consequences of infla-tion… Opposite to the high benefits the mod-ern civilization has provided, at least half ofthe total world’s population of 6,6 billion peo-ple have problems with providing the basicexistential needs… According to the WorldBank, ¾ from them are among the poorestpeople in the world. IMF index, by which theprices of the stock exchange food stocks arebeing measured, from 1997 to 2007 hasbeen increased for 85%, calculated into dol-lars…In January this year the food prices inthe world have increased for 33% comparedto the same month last year, and the energyprice, which is an important factor in foodproduction as well, has increased for 65%.

As exceptionally open economy with highrate of import, especially in some sectors(extremely dependent on energy import andsignificantly dependent in the food sector),Macedonia, with this economic structure andthe small template, is basically an absorberof the world’s shocks. And that is why thefood and energy increase is inevitablyinputting itself in our price indexes and the

life expenses. In Macedonia the life expens-es in March this year were 10,2% bigger thanin March last year, with the food expensesincrease of 20,6%. The domination of foodprices influence on the overall life expensesindex, because of the low incomes of thehouseholds, is as many as 38.2 percent. Justfor comparison, in the developing countriesthis index is about 30% and in the developedcountries it moves between 10 and 15%.

Since our analyses show that for the pastfew years the inflation in Macedonia hasbeen under strong influence by the foodprices, this clearly imposes the significanceof the movements and conditions in theagronomy and food-processing sector bothfor the Central bank and the monetary poli-cy…

- The reasons for the food pricesincrease are to be looked in both supply anddemand. Namely, the countries with lowincome mark strong increase for many years.Apart from the income increase per citizen,there is strong process of urbanization, whichcaused increase of demand for higher caloricfood, especially the meat, milk and eggs.Between 1962 and 2003, the meat consump-tion per citizen in the developing countrieshad increased three times, while the con-sumption of cereals had increased for only20% per citizen. Analyses show that the meatconsumption had increased accordingly tothe GDP increase, but also that to produceone kilo beef one needs eight kilos of wheat.

As one of the growing economies, represent-ing one fifth of the world’s population, Chinaeats half of the world’s pigs. Here we cannotforget India and the other growing economiesas well. For the past few years the demandfor bio-fuels has been increasing pretty fast,because of the growing prices of the fossilenergy.

- The supply was also affected by theexceptional climate conditions. Four of thefive biggest wheat exporters have reduce ofproduction because of the bad conditions forcultivation in 2007.

The next key question is- Will the trend offood prices increase go on? The answer isnot simple. Based on old experiences, aftercertain period of time, one can believe thatthe market equilibrium will be removed. Thesupply will meet the requests and the priceswill calm down. However, analysts point tosignificant risks. Namely, the growing incomeper citizen and strengthening the demand foralternative sources of fuels, will continue theupward pressure on the food prices. Currentforecasts suggest that in the bigger growingeconomies the increase will go on.

Second, the climate changes which rele-gate the environment, the urbanization thatreduces the lands for cultivation of agricultur-al products and reduce of the number offarmers, seems to be another threat for thesupply as answer to the future.

- Is there something good in the latest

What are the reasons for the increase of food prices? Are these one-time factors or structural movements that will have influenceon longer term? Who loses and who wins in these relative movements of prices? What can be done to maintain macro-economic

stability and soften the consequences on the poor people on short and long term? - are only few of the questions on which expertsdebated at the workroom organized by NBRM

The price shock exported

Pero Dimshoski, deputy-minister of Agriculture, Forestry and Water Economy: Food prices on the world markets have marked in increase of over 50% comparing the

year before. For the past few months the high prices of food and fuels have stimulatedinflation globally contributing to reduce of the households’ consumption power, whereasEU already discusses increase of social transfers and their possible negative effect on thealready upward inflation movement. The same trend affected the Macedonian economy.The index of agricultural products prices in Macedonia marks constant increase compar-ing last year. In conditions of intensive trade exchange and externally exported price shock,increased domestic prices have been determined by the prices on the world’s market withcertain influence in the same direction as result of the reduced domestic supply caused bythe unfavorable weather conditions. The negative input from outside is big, especially inthe energy and cereals. The cereals have increased from 70% to 90%. The strategy will beclearer to us with the new crop. It will define new conditions, so we will know what direc-tion the prices in the new economic year will take.


increase of the food and food products pricesand the significant improvement of the agricul-ture’s position in the inter-departmentexchange?

Can this lead to reduce of poverty andbalance between supply and demand onlonger term, with positive effects on themacro-economic stability? My answer is- yesit can.

Namely, the high in cre -ase of food prices is some-thing like a double-edgedsword. On one hand, thethree billion people wholive at the villages, thethree quarters are the lionpart of the total number ofpeople in the category ofpoor people in the world,and it is logic to them thattheir position will improvethrough the relative priceincrease of the agriculturalproducts…

This food price in cre -ase is stimulation for posi-tive response by the poli-tics. Finally, this sector willbe paid greater attention,both in the spoiled Westand the poor underestimat-ed world of the developingcountries. Based on the oldlessons, it is reasonable toexpect: instead of blocking,unblocking of the DOHAnegotiations on the issuesenclosed in the agricultureagenda; Instead to keepand increase the subsidiesin agriculture, to be anopportunity for their reduc-tion and at the same timeto increase investments in the agriculture;Instead of ban on export of certain products,which some countries did unfortunately, theban on other trade obstacles too should beremoved.

In this direction the stimulation of newcontract on the global food policy de servesour support, which was done on the recentspring meeting of IMF and the World Bank,which basic goal is long-term increase ofagricultural production with special support tothe agricultural policies in the poorer coun-tries.

Prices of Macedonian food - the highest

In Macedonia the increase of the foodprices is among the highest ones. In Marchthis year, on a yearly level, prices are 20,6%higher.

Within this food index, the prices of thewheat products have increased for 26%, theones of fresh and processed vegetable for37%, of the fresh and processed fruit for29,8%, of the milk for 20,6 percent and of thefats for 49,9%. What do these indexes of

increase show? - In the inflation of 10,2% in March, the

food partakes with 7,88 percentage points or77%. This means that in this period we canfreely use the term agflation in Macedonia.We can see that there is great increase withthe products which are from domestic originand which Macedonia is net-exporter of, aswell as products which we completely export

or to which, more or less, Macedonia is net-exporter.

Through the prism of external-trade

exchange, as well as through some physicalindicators, the analysis at the side of supplyand demand has been offering us pretty neg-ative findings for the agricultural productionand the overall food sector of Macedonia forthe past few decades. Data show that from1998 to 2007 Macedonia has constant deficitof food products in the exchange with theworld, on yearly level with average of 174,6

million euros (without tobaccoand beverages). In 2007 thedeficit is 221,5 million eurosor total of 1.745,7 millioneuros for the past ten years.Since the overall trade deficitin the past decade is 8.680,4million euros, 20, 1% goes tothe deficit of agricultural prod-ucts.

The import’s share in theoverall consumption of foodproducts in the period of1998-2006 increases thewhole time, it goes from19,5% in 1998 to 29,2% in2006. Increase of the import-ing component can also bemar ked with certain agricultu -ral products such as the me -at, milk, etc.

From the indicators forcertain agricultural products-meat, milk, the garden prod-ucts, sugar…as well as fromthe size of the agriculturallands, one can draw conclu-sions that: agricultural pro-duction is in stagnation, op -po site to the domestic grow-ing requirements; The deficitof the agronomy and agricul-tural-food products in theexchange with the worldincreases; The lands for pla n -

ting agricultural products reduce all the time;The dependence from the food from the restof the world increases, creating an opportuni-ty for the world market to even more dictateour domestic prices and even without thenon-trade connections with the world andespecially with certain regions.

Summarizing, Governor Gosev pointedout that more probable and wiser is to expectthat the food prices in the world, and accord-ingly here as well, will not go down and weshould be prepared for this kind of situation.The best answer for such price shocks by thesupply is the concrete plan for increase of theoffering on agricultural and industrial foodpro ducts from domestic production. In -creased investments in this sector and meas-ures taken to prevent further degradation ofthe plowland are the only answer to this kindof events. After the decade derelictions, theclimate in this sector is finally great. The prof-itability rate is going up, with significantincrease of the food prices, which most likelyis not of short-term nature, and the increaseof demand in the world, as all forecasts say,will continue.

V.M.

Statistical aspects in measuring inflation

Snezana Shipovik - State StatisticalOffice: The index of life expenses marksinflation. In 2007 there was relatively lowaverage annual inflation - 2,3% inMacedonia and 2,4% in the EU countries.The indicative inflation at the end of theyear was 6,1% here opposite to 3,2% inthe EU countries. In 2008 the upward trendof inflation continues, starting 7,4% inJanuary to 10,2% in March.

The indicators that determined theinflation in 2007 are most expressed inrelation to the food and non-alcoholic bev-erages with 39,6 percent. Water, electricityand other fuels take 12,2%, traffic takes9%, clothing and shoes take 7,7%.

�What is the main occupation of PhalanxCa pi tal, and since when are you present in Ma -ce do nia?

- A year and half ago, we started workingactively in Macedonia, Practically, I am alwayson relation London-Skopje, but because we ha -ve a lot of work, we decided to open up an of fi -ce in Skopje. At the moment we are working ve -ry actively in Serbia, and we consider makingBel grade our regional headquarters.

Principally, we are dealing with financialser vices. We are engaged in four lines of busi-ness:

- Corporate finance, which includesstra tegic financial consultancy, mergers& acquisitions, restructuring, evaluationsand capital rising, equity and dead capi-tal. In that part, for example in mergersand acquisitions, we are not doing dealswhich are smaller than 15 – 20 million eu -ros, we prefer doing deals at around 30mi llion euros or more. We simply haveset up quotas for each indicator apart.So, for example if it is a matter of deadca pital, we will not do anything that isless than 20 million euros. If it is equityca pital, we will look for things which are

JOHN JONOVSKI, OWNER OF PHALANX CAPITAL

THE DISTRUST AND THE BUREAUCRACY

– OBSTACLE FOR FASTER ECONOMIC

DEVELOPMENT John Jonovski is an economic expert with over 15 years of investment bankingexperience, revision, advisory to the countries in transition from the region,including Macedonia. He gains the experience in the field of economy workingas a director in the investment banking sectors in world famous banks andinvestment funds such as UBS Bank of Switzerland, ABN-AMRO, RothschildFunds Management, Coopers & Lybrand, and he brought it in Macedonia for thefirst time when he acted as financial adviser to the former Prime Minister,Vlado Buchkovski.In 2005 he founds his own company to provide world-class financial servicesto clients in the fast growing markets of South East Europe, Phalanx Capital,with headquarters in London, and a year ago the company opens up its branchoffice in Skopje.

OPTIMISM FOR THE MACEDONIAN TEXTILE

The Macedonian producers of final textileproducts will finally have conditions for equalcompetitiveness on the competitive market inthe European Union. It will be enabled by theProtocol for diagonal cumulation betweenMacedonia and Turkey, with which, the possibil-ity for implementation of materials with Turkishorigin in the Macedonian products meant forexport in the EU member states. This way, thetextile producers and traders will be more com-petitive by 12-15%, a percentage which wasmeant for payment of duty for the Macedonianproducts until now. This presents a very signifi-cant positive impulse for this branch, because,according to the incomplete statistical data, thetextile realized an export of $686 million in theEU member states and USA last year, where-upon about 50% were exported to Germany.Except in Germany, the final textile productswere also distributed at the markets in Greece,Italy and the United Kingdom, and 1/3 of thetotal export went to the countries from the

region.Considering that Turkey is among the

biggest producers of raw material for textileproducts, it is clear why the Macedonian textilecompanies are eager to sign the Protocol assoon as possible and to start using the advan-tages which it offers. The lack of this documentis one of the reasons why the Macedonian tex-tile industry falls behind the textile industries ofthe countries from the region, especially ofRomania and Bulgaria, to which, this previous-ly signed diagonal cumulation enabled acceler-ated development. Many of our companies lostpartners from the European countries, whichfound partners in the countries from the region.– The further delay of the signing would meanmissing one more production season, that’swhy, we appeal the Protocol to be signed assoon as possible. The technical Governmentshould find a way to realize this, emphasizesVlado Netkov, member of Textile IndustryGroup at the Macedonian Chamber of com-

merce, adding that the Macedonian textileindustry is suffering enormous losses becauseit cannot use this benefit. He reminded thateven in October last year, the Customs Ad -ministration of Macedonia signalized that thisagreement is effective and that it can be used,because of what, many textile firms from the

EXPORT IN EU – WITHOUT DUTY

Diagonal cumulationA final textile product, in order to gain

preferential origin, has to be manufacturedfrom yarn. This cumulation allows that prod-uct to be made in Macedonia from importedmaterials, in this case, from Turkish materi-als. So, the products, even though they donot meet the yarn criterion, will meet the cri-terion for preferential origin, i.e. duty will notbe paid if they are exported in EU memberstates, says Irina Nedelkovska, independ-ent councilor from the Origin Service at theCustoms Administration of the Republic ofMacedonia.

With the Protocol for diagonal cumulation between Macedonia and Turkey, the Macedoniantextile workers will be able to distribute the final products in the EU member states withouthaving to pay duty, wherewith they will be more competitive, even though they will useimported material



probably five million euros, and up.Then, there is another line, which is Trading

and Securities – we do retail trading, rather wehelp our clients with large portfolios, in the re gi -on, to achieve good liquidity for those portfolios.

So we do, trading and securities, then wedo principle investment, and a principle invest-ment is when we find an opportunity which isinteresting, for example - firm needs money, orthey want to do something, then we considerinvesting our own money, and we will bringother investors alongside us, to invest in differ-ent businesses.

We are looking for return in period of threeyears, and we want at least 30% of the profit.

And the last sequence of the business isasset management; this is a business which weare building up at the moment, and that is anew line which includes wealth management,we work with the people who have a lot of mo -ney. We help them to manage their wealth, andwe usually work with people who have at leastone million euros to invest.

�What are the human resources thatPhalanx Capital has on disposal and what isthe experience of your team?

- Our executive consists of three people –me, Michael Jonovski and Hugh Creal. Ibelieve that collectively, we’ve got over 45years of in ter national investment banking expe-rience. We ha ve done more than 80 transac-tions, with a to tal value of more than 20 billioneuros. We have do ne that in Australia, America,Europe, and Asia…

In the professional portfolio of our team Ican enumerate companies like Union Bank of

Switzerland, ABN – AMRO Capital, BritishTelecom, World Bank, L’Oreal, M6 Investments,OTE and many others, where we have workedas investment advisors.

The Government of the Republic, Pivara –Skopje, Investbanka are all part of our engage-ment in Macedonia.

�In the Government of SDSM you werefinancial advisor of the Prime Minister at thattime, Vlado Buchkovski. What do you think ofthe Macedonian economy at the moment, andwhere do you think we are going in the future?

- Macedonia is moving forward, but slowly.The legal system in Macedonia still does notfunction as it should, because the legal reforms,the judiciary and the one-stop-shop system arestill in progress.

If we discuss the economy, and whyMacedonia is not moving forward, I think it isbecause of a culture of non trusting individuals,respectively people who are constantly disrupt-ing the business. It is a general culture in thebureaucracy.

The business climate in Macedonia isimproving, and in that direction are the cam-paigns for attracting foreign investments. It isthough only on of the factors. Other importantand influential factors are: the infrastructure,the people, respectively the human capital,communication with markets, openness toother markets, business-friendly governance,and a business-friendly bureaucracy.

I think that the Government can reduce thepersonal taxes more, which would significantlyincrease the foreign capital.

My opinion is that Macedonia never re a -ched an economic consensus about where it

re ally wants to go, and that is a major obstaclefor the economy for all these years.

�Considering your work, you are certain-ly acquainted with the work of the MacedonianStock Exchange. How do you comment therecent activities and events connected withthe Stock exchange?

- Regarding the Macedonian Stock Ex -chan ge, I would say that people hate taking los -ses. Having a paper loss in ok, but a cash loss,pe ople hate to realize cash loss. Phy si o lo gi -cally, lots of people hold on to the hope that theprices are going to rise, so there are lots of psy-chological issues here. Not accessing NATOhas caused nothing special, but a small turbu-lence on the Stock Exchange, definitely causeby the psychological factor only. When a sharestarts to depreciate, the people are afraid tosell, thinking it will never rise back. TheMacedonian citizen has no financial experienceor whatsoever regarding these matters. Whenyou are purchasing a share, you are investingin a business. When you are investing in a busi-ness, you need to make a certain evaluation,and here the investment is done over specula-tions only.

So, what I want to say is that people oughtto educate themselves. If they do not want to beinformed they should at least invest in someonewho is educated, or simply they should investwhere he invests.

The investment funds are good for them,because they are de facto managed by peoplewith extensive experience.

K.S.

Republic of Macedonia started using Turkishraw materials for the products meant for exportin the EU member states. But, it was concludedthat the approvals received from our CustomsAdministration are not valid. – It is now askedwhich will be the repercussions from all of this,because some of our companies’ partners willrequest compensation, from a reason that theywill have to pay duty for the products importedfrom Macedonia in their countries, says Netkov.

- The process is ongoing, emphasizedHasan Kizartichi, the trade representative ofTurkey to Macedonia, the Protocol for origin ofthe goods between the two countries in theframework of the Free Trade Agreement isalready completed, prepared, and delivered tothe Macedonian authorities. – Now it is only

necessary for the Macedonian side to sign it, toreturn it to Turkey, and thus the bureaucraticpart would be finished. Only the ratification willremain – says Kizartichi.

Krum Efremov, State Councilor for Tradefrom the Ministry of Economy, also expressedoptimism and emphasized that it is expectedthat the Protocol will soon be put in use, despiteof the political situation in this country. TheProtocol will have to be published in the OfficialGazettes of both countries, as well as in theOfficial Gazette of the European Union.

With the diagonal cumulation of the originof the goods, all products which will be export-ed from the region will be marked with a region-al mark. Until now, Macedonia could haveexported only products which were declared asMacedonian in the EU, whereupon duty waspaid, i.e. the products which contained compo-nents with an origin from the other countries,were not acknowledged as Macedonian prod-ucts.

V.M.

StatisticAccording to the unofficial statistical data for 2007, the Macedonian textile industry exported

products worth $686 million, while textile products and raw materials worth $517,416,142 wereimported. Over 86% of the products are exported in EU member states, USA and the countriesfrom the region.

The women’s blouses, which were third most exported product in 2006. Farther, men’s blous-es, women’s trousers and jackets, men’s trousers and jackets and blazers also had a big part inthe export. There are 14,453 employees in this industry.




STOCK EXCHANGE NEWS... STOCK EXCHANGE NEWS...

ALKALOID AD SKOPJE

Dividend – 100 denars per share

Alkaloid a.d. according to the results from the audited financial report realized in 2007 totalsale of 4.26 billion denars, which presents an increase of 20.48 percent compared to 2006. 41percent of the sale has been realized on the domestic market, while 59 percent of the sale wasrealized on foreign markets. Consolidated net profit for 2007 amounts 376.5 million denars andcompared with previous year is increased by 10%. The unit net profit for 2007 is 418.56 milliondenars i.e. around 6.8 million euros. According to the decision reached by the shareholder`sassembly, the profit will be allocated for dividend and personal income tax, additional expenseson the basis of the decision and personal income tax for investments. The part for dividend andpersonal income tax is around 159 million denars or 38 percent from the total profit, 26 percentof the profit or 108.5 millions are intended for additional costs while 36 percent of the profit or150.9 million denars will be reinvested. Owners of Alkaloid` shares will receive net dividend of 100denars net per one share.

According to the dividend calendar, the last trading day with the right on dividend for 2007 is7 May, first trading day without the right of dividend is 8 May, and the datum of acquiring the righton dividend is 12 May this year. The dividend will be paid on 16.05.2008.

Buy-back

Shareholders of Alkaloid a.d. on an annual shareholder assembly reached a decision foracquiring own shares with purchase of one tenth from company`s principal. Shares will be pur-chased from the special reserves separated in the past years.

At the same time a decision has been reached for alienating own shares in order to maintainthe stability of the company and to harmonize it with legal provisions. The nominal value of oneordinary share of Alkaloid is 25.56 euros. The shares which are subject of alienation are with theright on vote, under the principle of one share- one vote in company`s assembly. The procedurefor the sale of shares will be conducted in accordance with the provisions from the Law onSecurities. Alkaloid after alienating their own shares will notify the Security Commission and thepublic about the quantity of the recorded and paid securities.

ZK PELAGONIJA AD BITOLA

Net profit of 146,978,567denarsZK Pelagonija – Bitola made a net profit in

the amount of 146,978,567 denars in 2007.The company reports incomes of1,091,859,424 denars in the income state-ment, while the total expenses were inamount of 931,942,533 denars.

In the balance sheet, the total assets arein the amount of 2,847,095,083 denars, whilethe total liabilities are worth 2,847,095,083denars.

After taxation in the amount of146,978,567 denars, the company separates23,987,533 denars from the retained earn-ings, which presents 15% of the profit in oblig-atory reserve fund, 2,615,077 denars, i.e. 2%in dividend from preference shares which area property of Pension and Disability InsuranceFund of Macedonia and 120,375,957 denarsmeant for reinvesting in investments of thecompany.

Also, with a decision of the shareholders’Assembly, Dine Mitrov from Skopje, Doctor ofVeterinary Medicine, was appointed inde-pendent member of the board of directors.

FERSPED A.D. SKOPJE

Forwarding agencies in Maywill divide over 33 milliondenars Fersped A.D. Skopje in its decision for

profit`s allocation after the annual account andfinancial reports for the business 2007 cameout with the following information:

The largest forwarding company ended2007 with profit (after taxation) of 189.568.541denars. On the basis of the decision for useand allocation of the dividend after annualaccount 33.020.650 denars will be allocated fordividends of shareholders and 156.547.891denars remain as unallocated profit. First trad-ing day without the right on dividend for 2007 is06.05.2008, while the last trading day with theright on dividend is 5 May 2008.

-The datum of evidence which establishesthe list of shareholders who have a right on div-idend for 2007 is 08.05.2008.

TOPLIFIKACIJA AD SKOPJE

25,000,000 denars for dividend of ordinary shares

The shareholders’ Assembly of Toplifikacija AD Skopje brought a decision for disposition of the2007 profit. According to the information submitted to the Macedonian Stock Exchange, the com-pany will separate 15% (17,655,510 denars) from the net profit of 117,703,398 denars for legalreserves. 25,000,000 denars in gross amount for 450,000 shares in a price of 55.55 denars pershare will be separated dividend of ordinary shares of the shareholders. The rest will be consid-ered as retained earnings and it will be used for investing.

According to the dividend calendar, last trading day cum-dividend is 30.04.2008. First tradingday ex-dividend is 02.05.2008, and the record date is 06.05.2008. The dividend will be paid until30.09.2008, and the payment will be carried out through shareholders’ transaction accounts.

SKOPSKI PAZAR AD SKOPJE

The shareholders will share15 millions of denarsIn 2007, Skopski Pazar A.D. has realized

total turnover of 1.994.902.310 denars, whilethe total expenditure amounts 1.838.533.466denars. On the session of the ShareholdersMeeting, held on 20 April 2008, after adoptingthe year account for 2007, a decision is madefor the net income of the company, in amount of94.272.717,00 denars to be allotted in reservesfor purchase of own shares, for which are allo-cated 69.272.717 denars, for participation inthe income of the employees and the manage-

ments are allocated 20 millions of denars, whilethe amount for dividend is 15 millions ofdenars.

The dividend for regular share amounts155 denars or 5 % of their nominal value, whilefor the priority share will be paid divided of 210denars, which is 7% of their nominal value.According to the dividend calendar, last day fortrading without right on dividend for 2007 is 29April 2008, first day of trading without dividendis 30 April, and datum for acquiring right on div-idend for 2007 is 5.05.2008. The dividends willbe paid off in the legal term, until 30 September2008.

On the shareholders meeting, also, was

reached decision with which the funds envis-aged for purchase of own shares, in amount of69.272.717,00 denars are approved, as well asunspent allocated funds in the past years inamount of 319.588.974,50 denars to be real-ized for purchase of at most 10% of the totalnumber of shares. The purchase should bemade with procedure envisaged by the Statuteand Law on trade companies, at price whichwill be attained on the Macedonian StockExchange, but not lower than the establishednominal value of the shares and not higherthan three hundred denars per share. Theshares should be purchased in period of oneyear, from the day of bringing the decision.


1. MACEDONIANS DON`T WANT TO GO TO GREECE, AGENCIES TO LOSE 500 THOUSAND EUROS? (*****)

2. THE FARMERS REQUESTED FAIR DIVISION OF SUBVENTIONS FROM GRUEVSKI (***)

24.-25.04.2008 THURSDAY-FRIDAY

Base inflation 2, 7% down is the news Ibelieve the citizens are most interested in and thenews that was carried by all newspapers. TheNational Bank of Macedonia in March recorded aslowdown of the base inflation (food and energynot included) from 3, 2% in February down to 2,7% in March, calculated on annual level. TheCentral Bank informs about constant monitoringof the economic trends and the effects of themeasures conducted for stabilization of the infla-tion expectations. According to NBRM data,March recorded continuation of the upward trendof the credits and deposits in the banking sector.The deposits have been increased by 25, 6% andthe credits by 42, 2% on annual basis.

- Macedonian veto on the Greek tourism isthe major news that hit the headlines of the news-papers` holiday editions. Around half a millioneuros are the figures mentioned as loss of theMacedonian travel agencies, which left depositsto reserve accommodation for the Easter holidaysin Greece, which, on the other hand, were can-celled by the Macedonian citizens. Three millioncontracts for the forthcoming summer season willalso fail and the loss of the agencies may varyfrom 400 thousand to one million euros dependingon the number of cancelled accommodation. Theproblems of the tourist workers, after the latestevents regarding the name dispute with Greece,

were put on table by the representatives of theAssociation of the Travel Agencies of Macedonia-ATAM yesterday in the Economic Chamber ofMacedonia. Angel Ivanov, Deputy Chairman ofATAM and owner of the travel agency AdriaticMavrovo, regards this as veto for the Macedoniantourism-Greece has declared war to us, not aclassic one, but war in tourism and economy.

We would not get our funds back, which is amajor loss for us-says Ivanov.

Another internet service of the Cadastre isthe daily event that almost all daily editions paidattention to. The State Office for Geodesy Affairspromotes additional option to the already existinginternet service, enabling search and insight intothe real estate data base throughout the territoryof Macedonia in those cadastre municipalitieswith established real estate cadastre. The realestate search will be carried by the number of thedeed or by the number of cadastre parcel in thecadastre municipality where the data is searched;the service is free of charge.

Today you will read about the story thatMacedonia started selling the excess of nightelectricity. The warm weather, the shut down ofthe heating in the households, as well as the stillturned-off air conditioners in the past few monthsbrought significantly reduced electricity expendi-ture than the planned. According to MEPSO, on

April 22, the electricity expenditure was 15, 6%smaller than the planned and the technical loss inthe transport network was down by 20, 8% thanthe plan. A day earlier, the expenditure was downby 14, 9% and the technical loss by 25, 7%, whileon April 20, the consumption of energy was down14, 3% with 22, 5 smaller technical loss then theplanned.

The farmers are demanding from Gruevskirighteous allocation of subventions, inform themedia. Namely, the Prime Minister yesterday metwith representatives of the farmers, from whom heasked suggestions for improvements in this area.

“We want our program to collect informationfrom the field, not only from the experts”, saidGruevski. He highlighted that the general tenden-cy for support of the farming would be roundedup. “70 million euros have been projected for thefollowing year and another 100 million for 2010”,emphasized Gruevski. The farmers are satisfiedwith the increased subventions, but reacted ontheir allocation, as well as on the allocation ofarable land. “We had some remarks on the alloca-tion of the subventions and recommendations forreduced administrative granting procedures”, saidMarija Gjoseva - Kovacevic, analyst from theFederation of Farmers.


DNEVNIKp.5 FENI OBTAINS INTEGRATED ECOLOGICAL PERMITp.8 WE PAY THE HIGHEST TAXES FOR PENSION AND HEALTH

INSURANCEp.8 THE MACEDONIAN PRICES ARE THE LOWEST, BUT ALSO

THE PURCHASE POWERp.8 МBI 23.04.2008

BIZNISp.6 DEPOSIT WORTH HALF OF MILLION EUROS GOES DOWN

THE DRAINp.10 ITALIAN GOVERNMENT TO SAVE ALITALIA p.11 MBI-10 INCREASES AGAIN

p.11 TRADE VALUE OF 13.250.857, 27 DENARS p.14 TEN MOST LIQUID LISTED COMPANIESp.14 SHARE BUY-BACKS OF LISTED COMPANIES` SHA-RES p.14 STOCK EXCHANGE TERMSp.15 PLIVA WILL RISE THE CAPITAL FOR 194, 57 MILLION HRKp.15 DISTRIBUTED 33.020.650 DENARS FOR DIVIDEND PAYMENT p.15 21, 1 MILLION DENARS OF ONE TRANSACTION p.15 UNI BANK WITH 100 MILLION DENARS PROFIT p.16 CREDITS UP TO 150 000 EURO WITHOUT PROPERTY MORT-

GAGEp.16 THE EURO OVERCAME 1, 60, AND THAN RETURNED ON 1,

59 DOLLARS p.16 THE OIL PRICE IS 119, 90 DOLLARS

UTRINSKI VESNIKp.1 MACEDONIANS ESCAPE GREECE p.5 MACEDONIANS DON`T WANT TO GO TO GREECE, AGEN-

CIES TO LOSE 500 THOUSAND EUROS? p.6 WORKERS OF BETON, BITOLA PAID MEMBERSHIP FEE

WITHOUT BEING MEMBERS OF THE TRADE UNION p.7 МBI 23.04.2008p.7 WE HAVE LOWER PURCHASING POWER THAN THE SER-

BIANS AND THE ALBANIANS

p.7 INTERNET – SERVICE OF THE LAND REGISTER EXPANDS p.7 THE NIGHTLY SURPLUSES OF ELECTRICITY WILL BE SOLD

FOR THE FIRST TIME p.10 THE FARMERS REQUESTED FAIR DIVISION OF SUBVEN-

TIONS FROM GRUEVSKI p.10 NBM IS CLOSELY MONITORING THE INFLATIONp.10 NATIONAL VITICULTURE STRATEGY

VECERp.1 THE GOVERNMENTS` SUPPORT TO THE FARMING WILL

RISE p.5 THE BASIC INFLATION REDUCED TO 2,7% p.6 OHIS IS COMPLETELY SWITCHED OFF p.6 SELLING OF NIGHT ELECTRICITY THROUGH AUC-TION p.6 MACEDONIAN VETO FOR THE GREEK TOURISMp.7 NEW INTERNET SERVICES FOR REAL ESTATEp.7 THE GOVERNMENTS` SUPPORT TO THE FARMING WILL

RISE VREME

p.5 SEEKING FOR SOLUTION FOR THE NIGHT ELECTRICPOWER SURPLUSES

p.5 BY STIMULATIONS TO A PROPER LIFE VEST

p.6 HALF MILLIONS OF EUROS LOSS FOR THE CANCELLEDARRANGEMENTS FOR GREECE

p.6 THE PRIME MINISTER ON A PARTY CONSULTATION WITHTHE AGRICULTURAL WORKERS

p.14 ITALIAN GOVERNMENT TO SAVE ALITALIAp.14 YAHOO REPORTS A JUMP IN PROFITSp.14 OIL TWICE AS EXPENSIVE AS LAST YEAR

NOVA MAKEDONIJAp.3 A DIRECT INSIGHT IN REAL ESTATE

SPICp.6 OHIS LEFT WITHOUT ELECTRICITY





1. MACEDONIA AHEAD OF NEW PRICE SHOCKS (***)

2. WE ARE GOING TO BRING THE BIGGEST INVESTMENT IN THE COUNTRIЕ (**)

26.04.2008 SATURDAY


Increased agricultural production can causeprice reduction, is the conclusion of the workshop:“Inflation and food prices” organized by NBRM on24 April this year. This Governor`s message isconveyed by all Saturdays newspapers. The infla-tion in Macedonia is imported. It is a result ofworld trends, consider Macedonian economicexperts. The food in Macedonia will increaseagain within the next period like everywhere in theworld. Products demand will continue to increasewithout any price reduction. The best way torespond the forthcoming shocks is to prepare con-crete plan to increase the demand of agriculturaland food products, giving significance toincreased investments in agricultural sector andsubvention reduction because it is obvious thatlow prices maintained for decades and the smallnumber of farmers are not necessary conditionsfor increase of the demand. This is NationalBank`s evaluation saying that many central banksreacted to this price shock by strengthening themonetary policy, more likely to happen inMacedonia too. Probably the prices will continueto increase due to expensive fuels on the worldstock exchanges – climate changes, poor har-vests and most of all due to increased bio-fuelproduction.

Businessmen are satisfied from the coopera-tion with the Government, informs Vecer.Macedonian businessmen`s suggestions and rec-

ommendations from the area of infrastructure andfiscal policy will be part of VMRO-DPMNE`s pro-gram for the incoming parliamentary electionswhich should be held on 1 June this year.Gruevski presented his attitude just after busi-nessmen`s meeting, members of MacedonianChamber of Commerce. Prime Minister confirmedthat economists are satisfied with recent govern-mental economic policy. He stated that their open-ness will help solving the private sector problems,and will improve country`s business climate.

- We will bring the biggest investment in thecountry, claims Cristian Kern, member of theAdministrative Board of Austrian Verbund in theinterview for Dnevnik. Austrian company Verbundcompetes for construction of the hydro plants

Cebren and Galiste in Macedonia. CristianKern, member of the administrative board ofVerbund says that this project will realize thebiggest investment in the country so far. Companyplanned to invest 6.7 billion euros by 2015 in thecountry and abroad, part of which are planned forMacedonia as well. This company is the leadingproducer of electricity in its country and leadingcompany for hydro power in continental Europe.

- Hydro power plant project Cebren andGaliste means a lot to us. We want Macedonia tobe a starting point for our expansion in SoutheastEurope, developing successful partnership withMacedonian power plants and significantly to con-

tribute for region`s power supply.- The Balkan quarrel about lamb meat is the

Vest`s headline. If the Bible was written especial-ly for Balkan, the ten commandments would prob-ably be: You shall not desire your neighbor`s lamb– Routers started the news about the lamb meatquarrel before Easter holidays. The questionwhose lamb meat is the best involves customs,market economy, and the national pride as well. –I appeal to customers to eat Greek meat forEaster holidays, said the Greek minister for agri-culture, Alexandros Kontos, explaining that theGreek meat is better, healthier and by buying themeat they support Greek farmers. But Mace do -nian minister for agriculture Aco Spasenoskisays that Greek claims are absurd.

- The world demand our meat, he said, and ifthe Greeks don`t want it there are countries thatare prepared to pay high price for the lamb.

Poor end of the modest trade week this yearis the headline about the stock analysis in NovaMakedonija. Another poor trade week to mark theend of the weekly stock below the average drama.The turnover in the classical trade with sharesamounts 7.5 million denars, which is below theaverage and very weak stock edition. Obviouslythe stock stagnated. There is no demand, no sup-ply. Buyers wait the turn of events. They are allbuying time and wait the early parliamentary elec-tions.

DNEVNIKp.13 TRADE UNIONISTS TO REACH COLLECTIVE AGREEMENTS p.13 PROCREDIT DEMANDS NO PROPERTY MORTGAGE p.13 WE ARE GOING TO BRING THE BIGGEST INVESTMENT IN

THE COUNTRYЕUTRINSKI VESNIK

p.1 MACEDONIA AHEAD OF NEW PRICE SHOCKS p.11 FOOD PRICE TO GO UP IN MACEDONIA p.11 BREAD PRICE REDUCED FOR ONE DENARp.11 MEMORANDUM FOR DEVELOPMENT OF AGRICULTURE p.11 GRUEVSKI LISTENS TO THE RECOMMENDATIONS FROM

THE ECONOMIC CHAMBER p.12 THE WORLD THREATENED BY THE DANGER OF THE

BIGGEST RECESSION EVER? p.12 FALL OF THE AVERAGE NET-SALARY OF 350 DENARS

VECERp.6 BUSINESSMEN ARE SATISFIED OF THE COOPERATION

WITH THE GOVERNMENT p.6 LOWER PRICES REQUIRE INCREASED FARMING PRODUC-

TION p.7 MORE INVESTMENTS FOR BETTER ECONOMIC GROWTH

VREMEp.6 THE ELECTRICITY IMPORTS IS REGULARp.6 WANTED BUYERS FOR NIGHT ELECTRICITY SURPLUSESp.6 OHIS RECEIVED ELECTRICITY

p.7 STOCKBREEDERS DEMAND GREATER CONCERN p.7 INTEREST RATES WILL INCREASE IF THE INFLATION CON-

TINUESVEST

p.4 BALKAN FEUD OVER LAMB p.5 ONLY 300 MACEDONIANS WENT TO GREECE I

NOVA MAKEDONIJAp.5 BIGGER OFFER OF DOMESTIC FOOD – RESPONSE TO THE

PRICE SHOCK p.5 THE TRADESMEN ARE PLANNING NEW INCREASE OF THE

PRICES p.5 POOR END OF THE MOST MODEST TRADE WEEK THIS

YEAR p.5 CROATIA IS THE MOST EXPENSIVE COUNTRY IN THE

REGION p.5 THE PRICES OF THE OIL ARE DECREASING p.5 FERSHPED AND TOPLIFICATION WILL SHARE A DIVIDEND p.6 OHIS GOT ELECTRICITY BY THE PROPOSAL OF THE MINIS -

TRY OF FINANCES p.6 MEPSO SELLS 3080 MEGAWATT HOURS OF ELECTRIC

ENERGY p.6 CHEAPER BREAD FROM ZITO LUX p.6 ONLY THE CEMENT FACTORY USJE IS BUYING NIGHT SUR-

PLUSES OF ELECTRICITY

KAPITAL

P.10 SERBIA TO SAVE MACEDONIA FROM DARKNESSMacedonia will no longer be dependent from the transmission line that

brings electricity for our state transit from Serbia across Kosovo. Serbiantransmission company will soon start the construction of the transmissionline to Macedonia that will provide safe transmission of energy to Macedonia.

P.11 BUSINESS COMMUNITY STRIKES BACKMacedonian pianist and greatest culture ambassador Maestro Simon

Trpceski was presented new concert piano Stanway – model D, produced inHamburg, which costs around 120,000 euros.

P.11 ITALIANS WANT TO BUILD HOTELS SHERATON AND HILTONIN MACEDONIA

Italian investor is interested for building hotels Sheraton and Hilton inSkopje. This was announced by Italian businessmen to Deputy PrimeMinister during their visit to Macedonia.

P.11 GERMAN HOTKIV TAKES POSITION FOR CONTROL OVERMACEDONIAN AIRPORTS

German construction company Hotkiv is interested to invest in theSkopje airport, Financial Times Deutschland announced. The paper, quotinggovernmental sources from Macedonia, points out that Hotkiv, which alreadycontrols parts of airports in Tirana and Athens, has fine chances to win thedeal.

P.12 NOT EUROPEAN AT ALLCraftsmen moral does not allow politics to interfere in business. And

European principles and rules also do not allow obstacles and blockades forcirculation of goods and services. This is the first letter for start of negotia-tions of every country that intends to enter EU, but not for Greece.

P.18 AND NOW GOODBYE…UNTIL THE NEXT ECONOMIC BOOMTo write on Macedonian economy is really frustrating. It is hard to per-

sist on objective analyses about irresponsible behavior of politicians andeffects of that conduct over the business and economy.

P.34 CLIENTS` CREDENCE IS THE MOST IMPORTANTIt was four years ago since UNI Bank obtained new ownership structure.

What you obviously managed to achieve is to make an image of you as pro-fessional bank that take care of the relationship with clients and their needs.Can you tell us about the satisfaction from the achievement in the past fouryears compared to the goals you had?

On the beginning of the passed four years period, period that followedafter changes in bank`s ownership and management structure, were set sev-eral basic goals and directions for achieving them.

P.42 YOU CAN PROFIT EVEN WHEN MARKETS FALLOne week after the NATO summit in Bucharest, MBI-10 index started to

fall without control, and at the end of the past week the situation stabilized.Some analysts gave different interpretations about current development onMacedonian Stock Exchange.

P.46 PILKO TO OPEN NEW PLANT FOR DELICATESSEN PROD-UCTS

Slaughterhouse for fresh pork Pilko plans to start production of deli-catessen products next year and open new plant for that purpose.

P.46 DELIKATES DIAZ EXPORTS BAKED PRODUCTS WORTH400.000EUROS IN GREECE IN JUST FIVE MONTHS

Kocani seated factory for production of bread, frozen baked productsand candies, Delikatesen Diaz, in the last five months exported 300 tons ofbaked products in Greece in total amount of 400,000 euros, company`s man-agement stated.

P.66 TINEX WITH DOUBLE INCREASED TURNOVER IN MACEDO-NIA IN FIVE YEARS

Kapital: You are the first retail market chain in Macedonia. Tell us yourcurrent condition on the market today?

Todorovic: In this moment we have 32 markets that will be 33 soon, withmore than 800 employees. Our latest market will be big hypermarket; I cansay the biggest market in the country, which is going to be located on thespace of the former slaughterhouse of Godel.

P.70 OUR STRATEGIC GOAL IS EXTENDING OF THE RETAIL NET-WORK

Kapital: Skopski Pazar is company with many years of experience onMacedonia market. On which fields is this company active?

Skopski Pazar is joined stock company for trade and export-import.Company successfully operates in many fields of national economy in its 65-year existence.

MAKEDONSKO SONCE

P36 THE FLAME OF THE INFLATION TO “BURN” THE CITIZENSMacedonia is slowly starting to “crack” under the pressure of the two-fig-

ure inflation rate, which it is experiencing second month in a row. The infla-tion continues growing and it achieved to 10.2% last month. What is espe-cially worrying is that the inflation exceeded all predictions of the domesticfinancial experts.

FORUM

p.32 VIA INNOVATIONS TO WORLD SUCCESSThe Macedonian information industry continues to be the generator in

the field of innovations and the creativity. The world trends in using the topinformation technology have been presented these days on the Days of inno-vations, a manifestation being organized for the first time this year by thelocal office from Microsoft.

p.35 ALKALOID IS THE MOST TRADEDThe political incertitude of the forthcoming extraordinary parliamentary

elections and the bad news about the resolution of the name doesn’t giveany space for optimism to investors. The mood of the home and foreigninvestors, present on our market, is still changing, up and down, so as thediagram of the index. The correction on the market is going, still, with thesame tempo.

p.44 THE CAPITAL AND THE FOREIGN BRANDS ARE PROVIDINGSTABILITY

Forum:n In the last few years we were constantly being emphasized thatthe admission in NATO will bring us more investments. What happens now,after we did not receive an invitation to access the Alliance in Bucharest?

Samak: from my discussions with the foreign businessmen these daysand earlier, as well as from the analysis of the movements of the foreigninvestments in the countries in the region and from Eastern Europe beforeand after the accession in NATO and the European Union, one can concludethat this decision will not change the events drastically.

GLOBUS

p.23 GREEK INVESTMENTS DRIED UP AFTER THE VETOThe political estrangement between Macedonia and Greece pulled back

the economic cooperation between these two countries. MAT, the export ofthe Macedonian lamb, the tourism… The row of collateral victims increaseson daily basis. Some of the problems are years old, nevertheless the politi-cal elites are heating them up. These days, the Greek authorities openly for-malized why they are blocking MAT’s flights and landings through their terri-tory for years now.

1. SHORT REVIEW IN THE WEEKLY MAGAZINES

21.04.-26.04.2008 MONDAY-SATURDAY




LAST WEEK – TWO PUBLIC EXCHANGE AUCTIONS

On 22.04.2008, the Macedonian StockExchange of Securities, Inc. Skopje, held the115th public exchange action of shares andholdings.

The public exchange action offered sale ofshares from 40 shareholding companies andthe holdings of 15 companies with limitedobjectives, property of the Pension andDisability Insurance Fund of Macedonia.

Five transactions paid in cash have beenconcluded on action:

� A holding of 8, 39% of the value wassold to Rudproekt Ltd. Skopje for a price of100, 00% from the initial price of the holding.The total value of the transaction amounts668.500, 00 denars.

� A holding of 8, 59% of the value wassold to Skopje Fair Ltd. Skopje for a price of100, 00% from the initial price of the holding.The total value of the transaction amounts31.843.200 denars.

� A holding of 10, 68% of the valuewas sold to Veterinary Station ZDRAVJEKochani for a price of 100, 00% from the initialprice of the holding. The total value of the trans-action amounts 299.815 denars.

� A holding of 26, 20% of the valuewas sold to MKC Kozjak Ltd Kumanovo for aprice of 100, 00% from the initial price of theholding. The total value of the transactionamounts 3.800.200 denars.

� A holding of 6, 72% of the value wassold to Ltd. Bitolamak Bitola for a price of 100,

00% from the initial price of the holding. Thetotal value of the transaction amounts 103.864,60 denars.

The total value of the turnover realized onthe held public exchange actions is 36.715.579,60 denars.

Five transactions in value of 36, 7 million denars

PIOM sold the shares in the company Makedonija from Strumica

On 23.04.2008, the Macedonian Stock Exchange of Securities, Inc. Skopje, held the 116thpublic exchange action of shares and holdings.

The public exchange action offered sale of shares from 40 shareholding companies andholdings of 10 companies with limited objectives, property of the Pension and DisabilityInsurance Fund of Macedonia.

At the auction was concluded one transaction in cash, whereupon 6.750 shares issued byAD Makedonija – factory for production of sanitary ceramics Strumica, for a price of 3.140, 00denars per shares, which is 12, 62% from the basic assets of the company. The total value of thetransaction amounts 21.195.000, 00 denars.

The total value of the turnover realized on the held public exchange actions is 21.195.000,00 denars.

BUSINESS MEETING OF EC AND THE PRESIDENT OF THE GOVERNMENT AND VMRO- DPMNE, NIKOLA GRUEVSKI

THE BUSINESSMEN PROPOSALS PART OF THE PARTYS` PROGRAM

On April 22nd, the members of theManagement Board of the Economic Chamberof Macedonia (EC) had a business meeting withthe president of the Government and VMRO-DPMNE, Nikola Gruevski. On the meetingwhich was held yesterday in the premises of theEconomic Chamber, the business communitydiscussed upon the current economic issues.EC heralds to initiate such meetings with theother political parties as well.

The businessmen presented their objec-tions and suggestions they consider should becomprised in the program of this political party,in order to improve and develop the companiesbusinesses.

“On the basis of the analyses of the Go -vern ments` recent activities in accordance withthe businessmen claims which were appliedtwo years ago, we found that over 50 % are fin-ished or in progress. The proposals and the ECposition on the name issue and Ma ce donia`sNATO accession will be delivered to theGovernment in written”, said Venko Gligorov,president of EC.

At the meeting were revised the Go vern -ments` recent activities according to the docu-ment which EC applied on the business meet-ing held on 21.06.2006. The businessmen sug-gest and claim taxation on the distributed profitonly, and not on the reinvested profit from thefuture Government, a model that is applied in R.Estonia. In order to reduce the unemploymentrate, they suggest reduction of the income con-tributions, as well as opening economic zonesfor home investors. They also discussed imple-menting regulatory law on chamber workingand public authorizations.

“It is problems that affect the businessmen,

as well as problems that can be used as anadvantage. We listened to them carefully andwe will implement them more successfully inour program, that after the elections, we expectwill become Governments` program in the fol-lowing four years”, said Gruevski.

The Governments` deputy president incharge of economic issues, Zoran Stavreski,the minister of finance, Trajko Slavevski, theminister of transport and communications, MileJanakieski and the director of AD “ElektraninaMakedonija”, Vlatko Chingoski were alsopresent at the meeting with the business com-munity.

The businessmen suggest and claim taxa-tion on the distributed profit only, and not onthe reinvested profit from the futureGovernment, a model that is applied in R.Estonia


PAST WEEK IN THE TOKEN OF...

KOMERCIJALNO INVESTICIONA BANKA ADKUMANOVO

Milestone owns 90.98%Komercijalno Investiciona Banka AD

Kumanovo informs that the seventh issue ofsecurities, sale of treasury shares, ended on18.04.2008.

The private offer of the securities wasapproved by the Securities and ExchangeCommission on 13.03.2008 and it was pub-lished in the daily Dnevnik on 10.04.2008.

215,000 ordinary shares (securities) out ofthe offered 215,000 securities were sold for aprice of 369,800,000 denars, wherewith thesale was fully carried out. The nominal value ofthe shares was 1,720 denars per share.

The part of Milestone Ehf. Icelandincreased with the new issue and it is now90.98%.

TUESDAY, APRIL 22, 2008

Quotation of Continual Treasury bond Nr.1 in 2008

On the session held on 21.04.2008, the Board of Directors of the Macedonian Stock exchangehas brought a decision for quotation of the Continual Treasury bond Nr.1 in 2008

The Continual Treasury bond Nr.1 in 2008 has the following characteristics:- Type of security: Continual Treasury bond Nr.1 in 2008, issued in dematerialized form,

is worded on name, and is unlimitedly negotiable;- Issued by: Republic of Macedonia; - Total amount of the issue: 300.000 MKD;- Nominal value of one bond: 10.000 MKD;- Number of issued bonds in the issue: 30;- Date of issue: 31.03.2008;- Rate of interest: 6, 75% per year. The interest is calculated from 31.03.2008;- Deadline of submitting the bonds: 31.03.2011;- Way of payment: The interest is paid once a year, on 31.03, in period of three years. The

capital needs to be paid after the expiration of three years from the issuing, respectively on31.03.2011.

- Beginning of trading with bonds: 23.04.2008, on the Official market of the MacedonianStock Exchange;

- ISIN: MKMINNF20G143;- Code for trading on the Stock Exchange: DO160311

The system of the certified accreditationrepresents new model for determining and forpromotion of the success of the business ethicsof the companies members in GS1 Macedoniaand the promotion of the successful companiescredited for the development and for the imple-mentation of BS1 system in the republic ofMacedonia – said the president of GS1 Ma ce -do nia, Branko Azeski on the fourth session ofthe Board of directors and the third session ofthe General assembly of the Ma ce do ni an asso-ci ation for numbering the commodities – GS1Ma cedonia. On this meeting, Azeski as a part ofthe program activities promoted the ac cre di ta ti -on system, which on world level is uni que, orig-inal and own creation of GS1, Ma ce do nia. Withthe system of accreditation as its own cre -ditworthiness of the member, one provides po -pularizing and promoting the companies that re -gularly cover their obligations on the basis ofusing the GS1 standards in their businesswork ing.

The president of GS1 in Macedonia, Azeskieva luated that the development pace of GS1,Ma cedonia, the increased assortment and qual-ity of the services that are being offered on theMa cedonian business – community are ade-

quate. Through the GEPIR project, all of the active

members of GS1, Macedonia are included inthe international electronic catalog and realiz-ing business contacts with over 1 000 000 com-panies throughout the world that barcode theirproducts and at the same time a possibility forthe foreign companies to made business dealswith the Macedonian members of GS1Macedonia is provided. The increase of themembership in GS1 Macedonia is continuous,reaching the number of approximately 1 300companies, which with the bar-coding of their

products and services are included in the con-temporary world courses of national and inter-national level.

But, more encouraging is the fact that GS1Macedonia is becoming a factor for theincrease of the competitiveness in theMacedonian business community, and all in allthe awareness for the necessity of the imple-mentation of the GS! Standards in the businessworking – emphasized Branko Azeski.

The members of GS1 Macedonia by apply-ing the GS1 standards in their own work aregetting numerous benefits improving their work,increasing their profitability, competitivenessand acknowledgement on the domestic,European and on the world market.

The Certified accreditation – model for the success and of thebusiness ethics of the companies

IN THE COMMERCE CHAMBER OF MACEDONIA – GENERAL ASSEMBLY OF GS1 MACEDONIA

Meeting of the businessmen and the VMRO- DPMNE leadership

- In the last few days we started intensive consultations, negotiations and collecting ideas,proposals for the program from economic chambers, syndicates, farmers assemblies and allgood ideas that will bring progress and improvement of the condition will be applied in the pro-gram of VMRO- DPMNE- underlined Gruevski on the official meeting with the management boardof the Economic Chamber. That, according to the Prime Minister, was a beneficial meeting, witha serious approach, and that the businessmen were satisfied with the program so far.

The president of the Economic Chamber, Branko Azeski stated that in a conversation withthe Prime Minister Nikola Gruevski and his economic team they obtained conviction that theeconomy will be priority in the Governments` agenda if VMRO-DPMNE win the elections and theyalso obtained conviction for law regulation of consulting the business community in economicacts adoption.

GD GRANIT AD SKOPJE

Award for the managementteam- own shares Construction company Granit from Skopje

made profit of 348.137.827,00 denars lastyear. In accordance with the decision passedon the Shareholders’ Meeting that took placeon 24.04.2008, out of the total profit67.998.994,00 denars were allocated for divi-dend, 12,166.574,50 denars for awarding themanagement team, for purchase of own sha -res are planned 50 million denars while217.972.303 denars will be reinvested in newfunds. The award for the management teamwill be paid out in own shares that the compa-

ny owns, by the price reached on Macedonianstock exchange, on the day when the decisionfor distribution of the profit is passed. At the sa -me time, the Board of directors is authorized tode termine what persons from the managementteam will be awarded and with how many sha -res, and to deliver the list to the Central securi-ti es depositor. The dividend per share is 23 de -nars. According to the calendar for dividendpay ment, the last trading day cum-dividend for2007 is May the 9th, first trading day ex-divi-dend is May the 12th, and the date for registra-ti on according to which the list of shareholderswho have the right to receive dividend for 2007is established, is May 14, 2008. The dividendpay ment will take place by 30.09.2008 at the

la test. At the Shareholders’ Meeting was passed

de cision for gaining own shares by purchase,ac cording to which the number of shares thatcan be purchased by the company is 10% fromthe total number of shares issued by the com-pa ny, or total of 307.137 shares. The purchaseof shares is supposed to be carried out bystock exchange price not lower than 600 de -nars and not more than 2.500 denars. The pur-cha se will be carried out with the funds for thispur pose, in accordance with the decision fordis tribution of profit. At the Shareholders’ Me et -ing elected were the new members of the Su -per visory Committee and adopted the amend-ments to the Statute of GD Granit AD Skopje.



W E E K LY R E V I E W O F M A C E D O N I A N S T O C K E X C H A N G Eperiod 21.04. - 24.04.2008


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