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berz

NIK

-YEAR

II-NUMBER

27-16thJUNE

2008-(SUPPLEMEN

TOFTENDERNIK)

THE ECONOMIC GROWTH IS NOT LINEAR,IT FACES SHOCKS

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DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS 3Date 16.06.2008 number 27 berzNIK

Until the next MondayMakedonka Baldazarska

BerzNIK editor-in-chiefe-mail: [email protected]

Macedonia rushes and rushes with theEuropean agenda, but Europe, are still far-off

- Macedonia is aware that is not prepared to becomemember in near future, but is prepared to start the negoti -

ations for EU membership. We have administrative and po-litical capacity and on basis of the fulfilled criteria and theresults that are achieved ,we have a chance to start thenegotiations, which will increase the efforts and the mo -tivation for further reforms, stressed the Minister AntonioMilososki at the meetings with the high members of theEuropean parliament, emphasizing the EU integration aspriority of the foreign policy of Republic of Macedonia

- To continue with working on the European agendaand the reforms, suggested the Euro parliamentariansDoris Pak, Jelko Kacin and Angelika Ber - Efforts forsurpassing the name dispute with Greece to be made, sug-

gests the Euro commis-sioner Olli Rehn. Thesupport for Euro and Eu-

ro Atlantic integration ofRepublic of Macedoniaby the Vice-Presidentsof the group for the Eu-ropean national partiesMar Karas, Inko Fridrihand Ana Ibrisagik, arethe recommendationsthat they gave to Miloso-ski during the two day vi-sit of Brussels.

After these marvelo-us wishes and suggesti-ons, we have to admitthat our first man of the

Macedonian diplomacybeautifully composedour gratitude: - Thename issue is not hurtfulonly for the Macedoniasprogress and develop-ment, but also for thecredibility of NATO and

EU principles, stressed Milososki, in the same time inform-ing the European democrats (apart from their knowledge forthe situation) that Macedonian side, contrary to the Greek,has constructive attitude towards issue solution.

- Greece after the NATOs Summit in Bucharest startswith implementation of the so called a-typical em bargo, withmaking additional hurdles in the political and also in theeconomic communication. That kind of attitude of Greece isnot contributing, as was underlined in the European Parlia-ment, there is no constructive plan, contrary to the Republicof Macedonias attitude. Also, Mi lososki appointed the indi-cators that are showing that Greece misuses the name dis-pute as excuse for achieving other internal and externalpolitical goals.

Speaking of the suggestions for continuance of thework on the European agenda and the reforms, Milososkianother time underlined the position of the Government: -That is also our goal.

We are at the eve of another working summer andautumn in order to be able to meet all terms, both as Go-vernment and partner of the European Commission.

And now, speaking of the support, the leaders of theEuropean national parties Mar Karas, Inko Friedrih and

Anna Ibrisagic made public promise that they will demandthe European Commission Macedonia to start the ne-

gotiations for membership in the European Union towardsthe end of 2008. They expressed satisfaction that the citi-zens in the early elections voted, as they say, pro-Europeanpolicy and rate, appointing in the same time that our coun-try is prepared to make the next step.

Certainly, the European democrats didnt forget to re-mind the chief of Macedonian diplomacy of the course ofthe happenings on 15 June, but also of the readiness formeeting some standards of the EU f rom which de pendswhether Macedonia will obtain positive report by theEuropean Commission. The chief of the Macedonian dip-lomacy assures that the Government would do anythingthat is in its power in order to meet the goals. But, in frontof the European parliamentarians, the Minister Milososkiunderlined that it would be much easier if the leader of the

relevant political parties of the Macedonian ethnical Albanian, come out publicly to condemn the incidentscaused by certain individuals and groups, to dissociate fromthem (it would be really democratically). Also recommend-ed that- the Macedonian citizens and the democracy will notbe hostages of some individuals which havent understoodthe democratic process in the country.

- The Macedonian Minister for foreign affairs after themeetings with the Euro-Parliamentarians expressed satis-faction, because many of them have good knowledge of thehappenings in Macedonia. At the end of the two day visit ofBrussels, the Minister for foreign affaires Antonio Milososkistressed that in the European parliament Macedonia havemany friends and major group of parliamentarians are prin-cipled supporters of the European aspirations of our coun-

try. Milososki for the meeting of negotiators with the medi-ator Matthew Nimitz expressed hope that in relation of thebeginning of the negotiations with EU, Greece will respectthe Copenhagen criteria, and France as future chairmanwill remain principled with the common values. It is a factthat Macedonia in that process will continue to use thepower of the arguments, but it is hard for Greece to main-tain the democratic principles, at least taking in considera-tion the current happenings

However, apart from the objections of Greece and thedemands for prolongation of the negotiations for the name,they will still continue, is the conclusion from the meetinginn New York. - That process continues with good will fromboth sides. I dont see discontinuity in the process, stated inNew York the mediator Matthey Nimitz after the meetingwith the negotiators Nikola Dimitrov and AdemantiosVassilakis. According to the mediator, although the newGovernment is not composed, the results from the electionsclearly showed who will be the Prime Minister and the lead-ing party in the Parliament, so there are no reasons for thenegotiations to be delayed. According to him, the events inthe last couple of months have brought some new ele-ments: the gap hasnt been reduced nor narrowed, saysNimitz, but the discussion themes, according to him, aremore focused.

For Nimitz 9th July, as given deadline by NATO in orderMacedonia to join Croatia and Albania in the process forentry in the Alliance, is not a deadline for the name dispute,therefore these negotiations have no deadline

Whether Macedonia, after NATOs brush - off, willobtain positive report by the European Commissi-

on?... Disputable question isnt it? So if we makeone retrospective, it is not hard to conclude that, nomatter whose history reading book of the Balkans pe-ople is looked, or more the archive cadastre notaries,the topic itself: Macedonia sits on the European table,I assume, since the Ottoman times But there is al-ways something that is missing in composing the mo -saic and Macedonia not to be part of Europe not onlygeographically but also and politically and sociologi-cally Macedonia sin ce long times obtains tasks andit is not that they are not appropriately worked out, butthen, again obtains new variances of the tasks. So -mething, see mingly as the one in the moment as there-run in some parts of Macedonia if the re-run isfair and democratic the negotiations for EU would

startFrom here the words- In our country we willfight for uniformity, equality and legality. All of us to beequal I front of the law, but the MinsterMilosovski af-ter the meeting with the Commissary for enlargementin the European Commission Olli Rehn in Brussels,again start the topic for discussionOf course, de -pending of the epilogue

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4 DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTSberzNIK number 27 Date 16.06.2008

STOCK EXCHANGE NEWS... STOCK EXCHANGE NEWS..

NATIONAL BANK`S ANNOUNCEMENT

ZK Pelagonija will say goodbye to its shares inStopanska Banka of Bitola

The sale of ordinary shares issued from Stopanska Banka a.d. Bitola, will be offered onsale of Macedonian Stock Exchange a.d. Skopje with public stock exchange auctions

In accordance with the Law on banks (Article 137 and 138) the governor of NBRM reached adecision implementing the share sale of Stopanska banka a.d Bitola, ownership of ZK Pelagonija

Bitola, by NBRM.

The share sale is announced in Official Gazette No.67 form 30 May this year and in nine news-papers on 2 June 2008 god.

Stopanska Banka Bitola issued total 389.779 ordinary shares and 1.198 priority shares. Thenominal value of the shares is 3000 denars. The main principal is 1.172.931 000 denars.

The announcement offers 63.381 ordinary shares on sale issued by the Bank, whose owner isZK Pelagonija from Bitola. The participation of the shares on sale in the total number of bank`sordinary shares is 16.29%. The off set price of one share is 8.899 denars.

The shares will be sold on Macedonian Stock Exchange a.d. Skopje through public stock auc-

tions:-Three packages per 5, 43% by which every package is composed of 21.127 ordinary shares

selling on the principle all or nothing. Packages will be sold on auctions held in the following days:-17.11.2008 the three packages will be sold at a price of 5.43 %;-18.11.2008 unsold packages form the previous auctions will be sold;-19.11.2008 -unsold packages from the previous auctions will be sold;-20.11.2008 - unsold packages from the previous auctions will be sold;-21.11.2008 - unsold packages from the previous auctions will be sold;

The off set price on the auction is 8.899 denars.If nobody accepts the off set price on the public auction, the shares will be offered at a price

lower than the initial price on the next auction, and the sale price will be reduced for another 10%,until or more investors didn`t state readiness to buy the offered shares.

The shares offered on sale will be paid in cash. The settlement should be performed withinthree days from the day of holding the public Stock Exchange auction.

On the public Stock Exchanges only participants with prior consent by the NBRM`s governorfor meeting the conditions needed for gaining the property of shareholder in a bank and which toNBRM will submit written statement that they will pay the assets within the deadline determined bythis announcement.

The conditions and the documentations needed for achieving the property of shareholder inthe bank are regulated in Articles 13, 17 (paragraph 1, item 5,6,7,8 and 13 and in paragraph 2,3,4,and 5) Article 18 (paragraph 3) from the Law on banks (Official Gazette of RM No. 67/2007) andChapter X and XI from the Decision for issuing consents (Official Gazette of RM No.91/2007 and134/2007).

Every person interested to participate on public stock auctions should submit until 30September inclusive, a request of the necessary documentations due to establishment of meetingthe criteria necessary to become shareholder in the bank. If the shares are cancelled, the total pro-cedure for share sale will repeat.

The sale of shares will be conducted Authorized person by the governorJane Lekovski.

COUNCIL OF NATIONAL BANK OFTHE REPUBLIC OD MACEDONIA

The interest of collateralloan increased for one percent

The Decision for obligatory depositwith the National Bank of the Republic ofMacedonia and the Decision for the inter-ests of National Bank of the Republic ofMacedonia are the two decisions theCouncil of the National Bank of theRepublic of Macedonia has adopted on thesession that was held on June 12 this year.

-According to the Decision for obligatorydeposit with the National Bank of the Republic ofMacedonia, banks and saving banks will beobliged to allocate obligatory deposit if theirincrease of the population credits exceeds 40%

at the end of December of 2008.

The allocation of obligatory deposit will becarried out monthly for the amount for which thebanks would possibly overdraw the established

rate of interest increase, provided with theDecision. The Decision refers to the period ofJuly-December 2008, and on the obligatorydeposit the National Bank of the Republic ofMacedonia will be paying interest of 1% yearly.The purpose of adopting this Decision is to dis-courage the too-fast increase of the populationcredits which reached 55% on yearly basis. Onone hand this credit increase has an influence onthe significant increase of the countrys trade

deficit, and at the same time, it already manifeststhe first signs of worsening of the banks creditportfolio engaged with the population.

The Council also adopted amendment of theDecision for interests of the National Bank of theRepublic of Macedonia. Namely, the interest theNational Bank of the Republic of Macedoniacharges for the collateral credit, instead of 7,5%it will be 8,5%. This increase of the collateralcredit interest has been caused by the previousincrease of the interest of treasury bills, in orderto maintain the usual difference between thesetwo types of instruments.

FIRST REGIONAL INVESTOR CONFERENCE OF THE CAPITAL MARKETS OF THE COUNTRIES OF SOUTHEASTEUROPE

Promotion of Alkaloid, Granit and Komercijalna banka-Last week the stock exchanges of Banja Luka, Belgrade, Ljubljana, Sarajevo, Zagreb, the Macedonian stock exchange and the stock

exchanges of Montenegro and NEX Montenegro from Montenegro organized the first common regional investor conference of the capital marketsof the countries from Southeast Europe. The purpose of the conference is promotion of the leading regional companies and capital markets andattraction of new investors.

On June 11, 2008 in the hotel of Sheraton in Zagreb was held the first regional investor conference of the capital markets of Southeast Europe. On thisevent all eight stock exchanges of the region took part, the stock exchanges from Banja Luka, Belgrade, Ljubljana, Sarajevo, Zagreb, the Macedonian stockexchange and the stock exchanges of Montenegro and NEX Montenegro from Montenegro. The companies listed on these stock exchanges were represent-

ing themselves on this conference, and at the same time they held separate meetings with the interested investors.Among the 24 companies that were represented on the conference were also the three companies listed on the Macedonian stock exchange: Alkaloid

a.d. Skopje, Granit a.d. Skopje and Komercijalna banka a.d. Skopje.

The regional investor conferences are one of the activities projected with the Memorandum for partnership signed in December of 2007. Their goal is toprovide promotion of the regional capital market and its companies.

This event caused great interest and attention among investors. Present were about 150 institutional investors and approximately 160 separate meetingwith investors were held. By the end of 2008 it is planned another investor conference to be held, which will be intended for international investors. It is plannedthis event to take place on fall in Vienna.

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2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS

1. COSMOFON TO CLOSE IN MACEDONIA (****)2. LUKOIL WANTS TO EXPAND IN MACEDONIA (***)

09.06.2008 MONDAY

1. SHORT REVIEW OF EVENTS

DNEVNIK

p.1 COSMOFON TO CLOSE IN MACEDONIAp.2 LUKOIL WANTS TO EXPAND ACTIVITIESp.7 HYPO BANK ENTERS THE CAPITAL MARKETp.7 THE CEMENT FACTORY IS NOT CAUSING

DISEASESp.7 MACEDONIAN PEOPLE CAN HAVE SOME

ELECTRICITYBIZNIS

p.1 THE IMPORT HAS EATEN THE EXPORTTWICE

p.1 THE TRANSITION TRACES ILLEGAL CHAN-

NELSp.3 THE INVESTIGATION ENDS IN AUTUMN?p.4 THE MACEDONIAN MARKET- CHALLENGE

FOR THE INSURANCE COMPANIESp.13 NEW FACTORY, TECHNOLOGY AND COM-

PUTER CENTERp.15 DROP OF MBI-10- INCREASE OF MBIDp.15 ON THE OFFICIAL MARKET TURNOVER OF

11, 8 MILLION DENARS.15 MBI REPORT FOR 06.06.2008p.16 GREAT EXPECTATIONS OF INVESTORSp.16 CREDITS WITH FAVORABLE TERMS FOR

PROFESSIONALSp.17 MBI 10 CRASHED BELLOW 5.600 POINTSp.17 THE STOCK EXCHANGE ON THE MARGINS

OF THE ECONOMIC GOINGS-ON IN THE CO-UNTRY

UTRINSKI VESNIKp.8 MEPSO SELLS ALL NIGHT SURPLUS POWER

FOR THE FIRST TIMEp.8 NBM TO SELL 16 PERCENT FROM THE SHA-

RES OF STOPANSKA BANKA-BITOLA

p.8 GREEK MEDIA CLAIM THAT WILL CLOSEKOSMOFON

p.9 LUKOIL WANTS TO EXPAND IN MACEDONIAp.9 G-8 COUNTRIES, CHINA, INDIA AND SOUTH

KOREA CONCERNED ABOUT THE EXPEN-SIVE OIL

VECER

p.6 INCREASE OF THE PRICES OF THE OIL TO-DAY?

p.7 STOCK EXCHANGE WAITS FRO BETTER TI-MES

p.7 INTEREST OF 10% FOR FIXED-TERM DE-

NARSVREME

p.6 TURNOVER DECREASED BY EIGHT TIMESp.6 THE MARKET WILL WAIT FOR REAL COMPE-

TITIONp.7 APARTMENT LOAN STUCK IN DOUBLE TA-

XESVEST

p.7 KOSMOFON TO CLOSENOVA MAKEDONIJA

p.8 THE STOCK EXCHANGE HOSTAGE OF THEDUI AND DPA QUARRELS

p.8 COSMOFON TO LEAVE MACEDONIA!?p.8 AT LEAST 100.000 CITIZENS WITH GREATER

CHANCE FOR EMPLOYMENTSPIC

p.1 GRUEVSKI FYROM 102.3 PERCENTSp.4 I AM GRUEVSKI FROM FYROMp.5 KOSMOFON LANDLINE OPERATORp.5 AND MAYBE CLOSES DOWN?p.5 LUKOIL TO EXPAND IN MACEDONIA

Cosmofon stops operating, is the top news con-veyed by all today`s newspaper editions, which wasreleased by Greek Ta Nea. As Greek paper announ -ces, Cosmote, company that owns Macedonian Cos -mofon, after careful insight of the agreement for stra -

tegic partnership, signed by the German companyDeutsche Telekom and Greek government, acceptedthe conditions, according to which Cosmote cancelsall activities in Macedonia and it will not use the li -cense for mobile telephony in Montenegro. The goal,according to Ta Nea, is to stay aside of Deutsche Te -lekom`s interests in these countries. German opera-tor is present in Macedonia across mobile operatorT-Mobile Macedonia, and after the realization of theGerman-Greek contract , the company will take cont -rol over Cosmofon. This opens the risk Deutsche Te -lekom to control 92% of the domestic market of mo -bile telephony. Cosmofon officials, as daily papersconvey, refuse to comment announces released inGreece. At the beginning of the year, Cosmofon star -ted reduction of the number of employeesThey re -

fused to comment the number of lay-offs, but con-firmed that sacking is part of the process of sell, i.e.reconstruction of the company for other services. Be -side concession for TSM mobile telephony services,last year obtained license for the third generation ofmobile telephony 3G, and wireless fixed line te le-phony WiMAX.

Biznis conveys that MSE is on margins of eco-nomic developments in the country. Following theelections, as we assumed, there was no change onMSE when it comes to turnover and movement ofprices of the most traded shares. Even more, leadingindex MBI-10 in every day last week was markingnegative results, closing at 5,595 index points, whichis the lowest value since 17.04.2008. Beside MBI-10`s weekly drop of 2.72%, there were remarkable

transactions Wednesday and Friday (shares of Alka-loid Skopje, Toplifikacija Skopje, ZK Pelagonija Bito-la and OKTA Skopje), which practically contributedthis week turnover to reach higher level compared tolast week.

Above mentioned transactions determined thenmost traded shares last week. At least 100,000 citi-zens with better chance for employment, is the titleof Nova Makedonija, which analysis forecasts thatGovernment`s new program will release from payinghealth contributions in terms of 18 months if they em-ploy citizens under 27 years or older than 50 years,redundant workers from state owned companies.Health Insurance Fund, one of the institutions incharge for implementation of this governmental me-asure, announced soon start. Employers` Organiza-tion supports the initiative and say that the time willshow the effect of this measure over increase of em-ployment rate.

Utrinski Vesnik announces that Russian Lukoilwants to expand its activities in Macedonia. In order

to achieve these goals, according to paper`s infor-mation, company`s president Vagit Alekperov infor-med Macedonian president Crvenkovski aboutcompany`s investment activities, especially on theBalkans, including Macedonia Macedonian presi-dent supported Lukoil`s plans fir developments ofour country and released expectations that in theforthcoming period they will be realized at much fas-ter tempo.

Utrinski also conveys announcement releasedby NBRM for sell of 16% of shares of StopanskaBanka Bitola, owned by Farming Cooperative Pe la-gonija from Bitola. These shares NBRM will offer onsell across MSE, by public stock exchange biddings.

Announcement is released on NBRM`s internet site,and it was also announced in several daily papers.

Publishing: INTERNACIONAL NIK AD - SkopjeMedia library and digital archiveEditors office: berzNIK

Address: Square MAKEDONIJA bb, p.box882 Skopje, 1000,R.Makedonija

Phone. 02/25.32.800 faks:02/25.32.839web: www.inter NIK.com.mk;e-mail: [email protected]

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Public relations: Natasa DimovskaICT Manager: Kiro Velkovski

Marketing manager: Ivona JosifovskaAssistent: Stojne Danilova

Logistics manager: Ana PetrovaFinance manager: Gordana Stojanovska

STOCK EXCHANGE REVIEW OF EVENTS IN THEPRINT MEDIA berzNIK

berzNIK is founded in year 2007.

STOCK EXCHANGE REVIEW OF EVENTS IN THEPRINT MEDIA berzNIKNumber: 27Date: 16.06.2008

IT IS DISTRIBUTED FOR SUBSCRIBERS ONLY

FRONT PAGE PHOTO:

Photo:Robert Spasovski

Editorial staff ofberzNIKInternet 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 Ivanovski

Fotoreporter: Robert Spasovski

Marketing, distribucija i prodazba:INTERNACIONAL NIK AD - Skopje

I M P R E S S U M

C O N T E N T S

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

STOCK EXCHANGE NEWS... ....................4

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

GROWTH OF THE MACEDONIAN VEGETABLE

CROP PRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . .8 -9

BASIC NATIONAL CHAMBER OF YOUNG

ENTREPRENEURS. . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 -9

COMPETITIVENESS OF THE SOUTH - EASTEUROPEAN COUNTRIES AND THE CHALLENGESON THE WAY TO THE EU ........................10-12

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

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

REVIEW OF THE REGIONAL STOCK EXCHANGES ..16

EVENTS THAT MARKED THE WEEK..............17

WEEKLY REVIEW OF THE MACEDONIAN STOCKEXCHANGE...............................................18-19

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The price of the petrol, which is speeding tow-ards 80 denars a liter, is the news that hit the head-lines of all today`s newspaper editions. After yes-terday`s decision of the Energy Regulatory Com-

mission, a liter of petrol MB-96 is now sold for78.50 denars, which is two denars more than twoweeks ago, while the diesel went up for one denar.Regulatory Commission officials explain that the oilderivatives price increase has resulted from the in -

crease of the crude oil price on the world marketsand the exchange rate between the dollar and thedenar. As forecasted by the world analysts, the oilis expected to reach a price of 150 dollars a barrelas early as the beginning of July.

Almost all newspapers carry out the storyabout the start of the construction of the first pur-chase and distribution center, in which the Croatiancompany Agrokor along with the Macedonian Go-vernment will invest 15.5 million euros and the pro-

ject will be also financially supported by the Muni-cipality of Strumica. Besides the Croatian market,the agricultural products that are to be purchasedby Agrokor will be also placed in Austria, Slovenia,Hungary, Germany and other EU countries wherethis Croatian company holds supermarkets. Accor-ding to the announcements, the purchase and dis-tribution center will be officially opened at the begi-nning of the following season.

Among the hottest news in the print media istoday`s startup and promotion of the association ofyoung entrepreneurs, which will function within theEconomic Chamber of Macedonia. Chamber offici -als announce that the association will enable conti -nuous development of the leadership skills, social

responsibility and the entrepreneurship spirit

among the young people, which are crucial forbringing positive changes in the society. Leadersand entrepreneurs aged up to 40 years will be tra-ined by the means of local, national and internatio-

nal projects in the Macedonian Economic Cham-ber.

The mobile operator Cosmofon, in its announ-cement carried by the newspapers, rejects as un-grounded the announcements that this companywill be closed in order to prevent creation of a mo-nopoly in Macedonia, since with the takeover ofOTE, Deutsche Telekom will own around 90 per-cent of the mobile telephony market in Macedonia.The reason for such thing lies in the fact that thecontract between the Greek government and De-utsche Telekom still hasn`t been ratified by theGreek Parliament. Officials from the Commissionfor Protection of the Competition, on the otherhand, inform they still haven`t received any notifi-

cation from Deutsche Telekom, which will possiblygive directions about the fate of the second mobileoperator in our country. Vecer also carries informa-tion from the field of the telecommunications, an-nouncing distribution of dividend of 80 million eu-ros. In accordance with the percentage it takes onthe Macedonian Telekom, the Government will getaround 27 million euros. The situation on the fixedtelephony in this country is a filed of interest of Vre-me too, informing that a real competition in thissector will be felt no earlier than September, whenOntel, the second fixed telephony operator, is tocomplete the expansion of its network; the samething is also announced by Cabletel and Nexcom.

In the article titled Elections delay tenders for

hydro power plants, Utrinski Vesnik informs that

the realization of the tenders for energy will be run-ning late at least a year, although on many occasi-ons they were regarded as crucial for this countyi.e. for its energy future, given the fact that our co -

untry has limited energy potential and increasingdemand for electricity, and the country spends a lotof money on importing expensive electricity. Be ar-ing in mind that the construction of the energy pro-

jects will last several years, then postponing of thestartup procedures should concern us.

The stock exchange analysis of the brokeragehouse Moj Broker published in Biznis newspaperputs forward the dilemma, in respect with yester-day`s fall of MBI-10 by 1.33%, whether the value ofthe Macedonian companies will continue thisdownward trend until august, when the govern-ment should be formed, or will continue falling in-fluenced by the other factors that are shaking theworld economy. Nevertheless, the shares of Mak-

petrol were the most traded on the Official Marketyesterday, followed by the shares of Fersped asrunner ups and Toplifikacija at the third place. Theshares of the Macedonian Telecom were the mosttraded on the Regular Market.

The same newspapers gives the analysis overthe world capital markets conducted by the fundmanagement company Moj Fond AD, saying thatthe main events on Wall Street last Friday were theinformation for the oil price increase by 11 dollars

and the greatest unemployment rate in USA in thepast 22 years, causing real panic and sell-outs,which has resulted with a fall of the main indices ofover 3 percent.



1. ASSOCIATION OF YOUNG ENTREPRENEURS FORMED (****)2. CROATIANS TO BUILD CENTER FOR PURCHASE OF VEGETABLE IN STRUMICA (**)

10.06.2008 TUESDAY

DNEVNIK

p.7 COSMOFON: WE WILL NOT CEASEp.7 THE PETROL PRICE INCREASED TO 78, 5 DENARSp.9 ASSOCIATION OF YOUNG ENTREPRENEURS FORMED

BIZNIS

p.1 MAYS TURNOVER ON THE STOCK MARKET HALVESp.1 UNREGISTERED ACTIVITY UNREGISTERED MONEYp.12 FALL OF THE THREE STOCK EXCHANGE INDEXESp.12 MOST TRADED THE SHARES OF MAKPETROL SKOPJEp.12 MBI REPORT 09.06.2008p.13 SALES CONTINUE - INDICES IN REDp.13 FREAKY FRIDAY CAME EARLY ON WALL STREETp.15 MAYS TURNOVER ON THE STOCK MARKET HALVESp.16 NEW RECORD OIL PRICE ABOVE 139 US DOLLARSp.16 UNI DENAR DEPOSIT WITH AN ATTRACTIVE INTEREST

RATEp.16 PETROL GOES UP TWO, DIESEL GOES UP HALF A DENARp.17 SMALL BUSINESSES - MAJOR ACHIEVEMENTS

UTRINSKI VESNIK

p.1 KOSMOFON DENIES TO BE CLOSEDp.1 ELECTIONS DELAY TENDERS FOR HYDRO POWER PLANTSp.5 YOUNG ENTREPRENEURS TO FORM ASSOCIATIONp.7 BI 09.06.2008p.7 CROATIANS TO BUILD CENTER FOR PURCHASE OF VEGE-

TABLE IN STRUMICA

p.7 PETROL TO GO UP FOR TWO AND DIESEL FOR HALF DE-NAR

VECER

p.1 STRUMICA VEGETABLE ON THE MARKETS IN EUp.4 THE TIME OF CASINO THEORY ON THE STOCK EXCHANGE

GONEp.6 YOUNG ENTREPRENEURS IN ASSOCIATIONp.6 INCREASED LIVING EXPENSESp.7 ABOUT 80 MILLION EUROS TO BE DISTRIBUTEDp.7 THE PETROL IS HEADED TOWARDS 80 DENARS PER LITER

VREME

p.1 GAS STATIONS DRAW INFLATIONp.6 TELEPHONE COMPETITORS ARE OUTWITTING WITH PA-

CKETSp.7 GAS STATIONS DRAW INFLATION

p.7 LUKOIL WANTS TO EXPAND IN MACEDONIAVEST

p.2 ON.TEL TO ACCUSE WHOLESALE PRICES OF TELEKOMp.3 PETROL GOES UP TWO DENARS

NOVA MAKEDONIJA

p.1 KOSMOFON: WE WILL NOT BE CLOSEDp.8 THE PRICE OF THE OIL GOES UP, THE MAKPETROL SHARE

GOES DOWNp.8 ALL THE WORKERS BACK TO WORK IN SILMAKp.8 NATIONAL ASSOCIATION OF YOUNG ENTREPRENEURS TO

BE FORMEDp.8 THE LIVING EXPENSES FOR MAY INCREASEDp.9 PETROL GOES UP TWO, DIESEL GOES UP HALF A DENARp.9 THE CUSTOMS ADMINISTRATION WILL INVESTIGATE WHE-

THER CUSTOMS OFFICERS ARE INVOLVED IN THE SMUG-

GLING OF CIGARETTESSPIC

p.7 VELES TO PROTEST AGAINST THE SMELTERp.7 ANOTHER APPRECIATION OF THE FUELSp.7 EXPENSIVE LIVING

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- Sava invest, the new company for fundsmanagement, is top news in the economic rub-rics of daily newspapers, according to the num-ber of the articles. Sava invest DD Skopje ob ta-

ined permission for establishing company forfunds management by the securities Commissi-on, convey todays issues of print media. Accor-ding to the Securities Commission, the basic ca-pital of the new company amounts 200.000 eu-ro, and the founders are two legal entities, Po-zavarovalnica Sava a.d. Ljubljana, Slovenia andDD for insurance Sava tabak - Skopje. Thecompany will establish and manage with threeinvestment funds.

The Securities Commission gave approvalalso to the clearing house Klirinski interbankars-ki sistemi a.d. Skopje for issuance seventh emi -ssion of shares in amount of 14.670.000 denars.IK banka DD Skopje obtained permission to sell

1.051 of their shares through public offer.TTK Banka increased its wide range of pro-

ducts with the introducing of product intendedfor child savings is one of the events that mar-ked the previous day. With the child savingsevery client younger than eighteen years hasthe opportunity to have transactions accountand savings account, and there are also twotypes of saving books, denars savings book andforeign currency savings book. TTK Banka inthe frames of its campaign donated the kidsfrom the SOS Detsko selo - Skopje with checkin amount of 85.000 denars.

After the yesterdays rising of the petrol pri-ces, Dnevnik made an interesting analyze: As

much for hotel as for petrol, in which Dnevnikmakes comparison of the petrols prices in ourcountry to the ones in the other countries. Thepetrols expensiveness in Macedonia is right be-

hind the one in Serbia. With the last rising of pri-ces of oil derivates, one litter of unleaded petrolin our country costs 1, 22 euro, and at the Ser-bian gas stations is sold at price of 1, 24 euro.The price of the same type of petrol in Croatiaamounts 1,22 euro, as costs in our country, andcheaper is the unleaded petrol in Monte Negro,where cots 1, 18 euro, in Slovenia costs 1, 16euro per litter , in Bulgaria 1, 14 euro and in Bos-nia and Herzegovina costs 1,08 euro. The citi-zens who are planning in the following twoweeks to travel on holiday in some of these co -untries should set aside at least 100 euro onlyfor fuel.

On the same subject, which apparently mo-

re frequently imposes as dominant, the newspa-per Biznis writes that the oil on worlds stockmarkets, yesterday, realized considerable dropof price after previously reached the historic re-cord of 139 dollars per barrel. Light American oilon the stock market in New York dropped to134, 35 dollars per barrel while on Londonsstock market one barrel of Brent reached priceof 133, 91 dollar. According to the experts cal-culations the oil price this summer most proba-bly will reach price of 150 dollars per barrel, be-cause of the fact that the drop of the market of-fer surpasses the weak demand.

Goldman Sachs, most attractive bank in theenergetic market and one of the first that predic-

ted increase of the oil price two years ago,when in that time seemed illusory, the previousmonth warned that the oil price may increase toeven two hundred dollars per barrel in the fol-

lowing two years, writes todays Biznis.In the same newspaper you can read the

Agony of the Macedonian shareholders doesntends, stock market indices still in red. In the textstands that also the yesterdays drop on the Ma-cedonian stock market indices was grave. MBI-10 closed at -1, 61% worth 5.431,98 points. Thisis the lowest level since 15.04.2008, thus thelowest value in the past twelve months.

Dnevnik conveys that National Bank will ta-ke 16 percents of the ordinary shares in Stopan-ska banka- Bitola, which are in ownership of the

Agricultural combine Pelagonija, because themanagement of Pelagonija havent met theterms for becoming owner. The shares will be

offered on sale through stock market auctionson 17th November this year.

Vecer announces that the shares of thepharmaceutical company Alkaloid, in amount ofalmost one million euro, yesterday were sold inthe Stock Exchange in block-transaction.

Most of the daily newspapers announcedthat EVN modernized the network. The newhigh voltage switchers in the transformer Stru-mica 1, new 110 kilovolt transmission line nearKavadarci and revitalization of most of the trans-formers are the new investments of EVN Make-donija in the distributive network.



1. SAVA INVEST NEW COMPANY FOR FUNDS MANAGEMENT (*****)2. TTK BANK OFFERS CHILD SAVINGS (****)

11.06.2008 WEDNESDAY

DNEVNIK

p.1 FOR PETROL AS MUCH AS FOR HOTELp.9 BI 10.06.2008p.9 TTK BANK OFFERS "CHILD SAVINGS"p.9 SAVA INVEST NEW INVESTMENT FUNDp.9 NBM TAKES AWAY SHARES IN STOPANSKA BANKA-BITOLA

p.9 ON VACATION WITH POCKET OF MONEY FOR PETROL

BIZNIS

p.1 THE STOCK EXCHANGE INDEXES IN REDp.1 SAVA INVEST NEW COMPANY FOR FUNDS MANAGEMENTp.3 POSSIBILITIES FOR LEADER SKILLS DEVELOPMENTp.3 SHARE OF LAST YEARS` DIVIDEND OF 80 MILLION EUROp.12 EC BANK TO SELL OWN SHARESp.12 CHILD SAVINGS WITH ATTRACTIVE INTERESTSp.12 SAVA INVEST NEW COMPANY FOR FUNDS MANAGEMENTp.13 ABOUT 7.742 SHARES FROM ALKALOID TRADED IN BLOCK

TRANSACTIONp.13 MBI-10 FALLS FOR 1,61 PERCENTp.13 BI 10.06.2008p.15 THE STOCK EXCHANGE INDEXES IN RED

p.16 OIL PRICE DROPS TO 134,35 DOLLARS

UTRINSKI VESNIK

p.1 EXPENSIVE PETROL PUSHES TRANSPORTERS` PRICESp.5 EXPENSIVE PETROL PUSHES TRANSPORTERS` PRICES

p.7 BI 10.06.2008p.7 CHILD SAVINGS IN TTK BANKp.7 EVN-ESM TO MODERNIZE DISTRIBUTIVE NETWORKp.7 SAVA TO FORM INVESTMENT FUNDS

VECER

p.6 SAVA INVEST WILL MANAGE FUNDSp.6 INVESTMENTS IN STRUMICA AND IN KAVADARCIp.6 THE SOLUTION IS REDUCED FLIGHTS OR NEW AIRPLANESp.6 SOLD SHARES OF ALKALOID WORTH MILLION EURO

VREME

p.6 NEW FUND MANAGEMENT COMPANYp.7 PETROL MORE STRIKES THE MACEDONIAN POCKETp.7 SMALL BANKS WITH OLD INTEREST RATES

NOVA MAKEDONIJA

p.8 MBI-10 CONTINUES TO DROWN, CORRECTION REINFORCEp.8 NINE NEW ECONOMIC PROMOTERSp.8 TTK BANK INTRODUCES CHILDREN`S SAVINGSp.8 EVN MODERNIZES DISTRIBUTIVE NETWORK

p.8 STRIKE IN THE GREEK OTE AGAINST THE INCOMING OFDEUTSCHE TELECOM

SPIC

p.2 THE OIL SHORTAGE IS A MYTH

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LEGAL TRADERS WILL HAVE A PRIORITY AT THEBORDER CROSSINGS

The Macedonian companies should export the veg-etable further away from the neighboring countriesand the farmers should form cooperatives fororganized distribution, representatives of the Mi-nistry of Agriculture, Forestry and Water Economyrecommend.

The fall of the wholesale prices of theearly vegetables, especially in theStrumica region, is unreal, concluded

the representatives of the farmers on themeeting with the Minister of Agriculture AcoSpasenoski last week, directly blaming theunlicensed traders and the retailers for thisphenomenon. In order to curb this situation,

to stabilize the purchase prices and toincrease export, the Minister Spasenoskiannounced an increased activity of theinspection, as well as cooperation with theCustoms Administration, which will introducea special line for the legal traders on the bor-der crossings, because there is an increasedproduction in the agriculture sector this year.

- I think that the agriculture is slowlybecoming significant in the society and in theMacedonian economy. The discussions onthe monthly meetings with the farmers, withtheir representatives, with the farmers`union, where we considered the current

problems in the agriculture, what can be do-ne and the current agricultural policy of theMinistry of Agriculture, Forestry and WaterEconomy also contributed for that. The pro-duction and the purchase of vegetables were

among the first items, then there was theproblematic about the milk, the subsidizing,and it was also discussed about the insur-ance, payment and the registration of farm-ers.

Production for commendation

We are happy to inform that the Ma-cedonian vegetable crop production is drasti-cally growing. The production of tomatoes in2003 was 22,596 tons, while the productionof tomatoes in 2007 was 47,832 tons, andsuch is the case with the cucumbers gherkins

from 13,590 tons to approximately 19,000

tons. We have an increase of the productionof cabbage from 19,012 tons in 2003 to43,808 tons in 2007. In the recent period, theexport and the prices of the vegetables aresatisfactory. Only the Strumica region regis-tered a drastic fall of the purchase prices ofthe vegetables in the last few days, repre-sentatives of this region pointed out andadded that the fall is due to certain middle-men and retailers which agree on the price.

As a reaction to that, in order for the Ma-cedonian vegetables to be exported unhinde-red, we agreed with the Customs Adminis-tration the trucks loaded with vegetables tohave an advantage in the export on all border

crossings in the period from 8 pm until 1 am,when the export is most intense. It was alsoagreed that there will be a special line for thevegetables on the border crossing Ta banov-ce, whereupon, instead on the terminals, the

clearing will be performed directly on the bor-der, where there would be a phytosanitaryinspector as well. One more benefit for theexporters is the credit lines which they canuse with 5% interest for purchase of agricul-tural products, Minister Spasenoski stated.

Manipulations with the milk prices

The farmers requested from the marketand the land inspectors to go on field more inorder to prevent potential abuses during thepurchase. Even though the large companiesare still purchasing, the Ministry again ap-peals to the markets in the region and wider

where the Macedonian products are distrib-uted, that Macedonia currently has a surplusof products and appeals to them to purchasethe same.

It is interesting that in Strumica againthere is a fall of the purchase price of the milkfor two, three and four denars by the severalprivate Strumica dairies, while the large pur-chasers like the Swedish and Bitola dairy didnot register such falls.

- We dont know why this problem withthe fall of the purchase prices is appearing inthe Strumica region. In order to annul this,

we once more appeal to dairies not to abusethe subventions in amount of two denarswhich was given to the farmers who wouldsell the milk to a dairy and, proportionally tothat, to reduce the price by two denars.

GROWTH OF THE MACEDONIAN VEGETABLE CROP PRODUCTION

IF YOU STOP LEARNING TODAY-TOMORROW YOUWILL NOT BE DEVELOPMENT`S LEADER

Young entrepreneurs from Macedonia joined inchamber as a part of the international network JCI,spread over more than hundred countries, whichinstruct the entrepreneurs at the age of 40. The pur-pose of the Chamber is to develop leadership capa-bilities, social responsibility and entrepreneursspirit at young people, activating at the same timethe positive economic changes in the society.

National Chamber of young entrepre-neurs was founded last week on initia-tive of Macedonian Chamber of Co-

mmerce and with cooperation of the interna-tional young entrepreneurs organization JCI.

The development of the branch office isthe base of every economy. The use of for-eign experiences can contribute to strength-en the companies` competition. JCI interna-

tional is international organization which fo-cuses on young entrepreneurs and throughits program activities attempts to influence ondevelopment of their leadership`s and man-agement capabilities and business leading.

The junior international chamber is thebest kept secret probably in whole Europe,and we will reveal this secret in Macedoniatoo, said at the beginning of its representa-tion Richard Heck, member of the organiza-tion since 2000.

- I`m entrepreneur and leader of fiveorganizations. To be a volunteer in the juniorinternational chamber requires much time.But I can that its worth the energy and theeffort invested in this engagement. I workedon European conference last year, I was

three years a member of the board and nowI give instructions in the frames of the Orga-nization.

Approximately four million people aremembers of this organization, at the age ofmid twenties and forties. Japanese, Americaand Korea have most participants with morethan 45 thousand members. We have 35thousand members in Europe and 12 thou-sand members in Germany, which is thebiggest in the frames of this membership.Conferences have been organized on foursubjects all over the world, and very soonthere will be a conference in New Delhi, In-dia. The same conference represents a proj-ect, so that, Serbia too will organize a confer-ence.

The mission is to develop leadership

BASIC NATIONAL CHAMBER OF YOUNG ENTREPRENEURS


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Those two denars are not meant to make adifference in the price, but they are a subven-tion for applying of the milk production rule-book, in order for the farmers to be able tobuy equipment, chemicals for disinfectionand for production of more quality milk withthose money.

The first phase of the payment of twodenar per liter for the milk should have endedin May. In some cities, the dairymen submit-ted the lists from where they bought the milk,and that procedure is not finished in 70% ofthe dairies and the manufacturers cannottake subventions of two denars.

- The dairies informed us that they are ina phase of updating, so we appeal to them tosubmit the lists as soon as possible. If theStrumica region has a milk surplus and if thetrend of decreasing of the price continues,then other dairymen, who would purchasethe milk in that region, will come-Spasenoski

emphasized.

This year more fertile harvest

Veljo Tantarov, President of FarmersUnion, said that, apart from the problemswhich appear in the Strumica region, theyalso discussed with the Minister about theforthcoming harvest which will cover over130,000 hectares this summer.

- The current condition with the cereals inthe entire country is well and we hope thatthis year we will have a more fertile harvestthan last year, which we evaluate as one of

the worst in the past 15 years. We will havegood crop in some regions, especially inOvce Pole, but we are concerned by the factthat the conditions with the crops are not sogood in Pelagonija, from where the biggest

amounts of wheat and barley are expected,because the rains are causing problems tothe farmers for a while now.

Noticing the problems about the distribu-

tion of agricultural products, the FarmersFederation of the Republic of Macedonia in-formed the Ministry of Agriculture and askedfor a support in forming of agricultural coop-eratives, where they would directly be includ-

ed in the distribution of the products. Theseseveral categories of unlicensed tra derswould be avoided this way. The FarmersFederation is at disposal with its resources,through which it will organize certain train-

ings and it would help farmers in the registra-tion and in the reinvigoration from those agri-cultural losses, stated Gjoko Danailov, Pre-sident of the Farmers Federation of the Re-public of Macedonia.

Insuring agricultural crops in caseof badweather conditions

- Macedonia has increased and quality productswhich should be distributed on the European markets,wherewith it would maintain the realistic price. In orderto realize that, the farmers should form cooperatives

which would administer the production, said Ministerof Agriculture Aco Spasenoski on the meeting with thepress last week.

In our country, Spasenoski added, there is not atradition for the farmers to mutually register firmsthrough which they will realize purchase and export,even though the country covers 50% of the expenses.

According to him, it is expected that businessmenfrom Albania will visit Macedonia next week for even-tual signing of agreements for purchase of the domestic production. Spasenoski pointed out theunsolved property-rights relations in the agriculture as a major problem and he mentioned thatthe purpose of the subventions is to eliminate the illegal actions, especially in the cadastre.

He informed that the interest for insuring the agricultural production from in case of badweather conditions, especially in the regions of Negotino, Kavadarci and Kocani. The proce-dure for obtaining policy is simple. The farmer should report his production in the district unit andto insure it in order for the country to return 30% of the value of the policy later, Spasenoski said.

The interest of the insurance companies for providing such services is also increasing.Vardar Insurance, Insurance national policy and Eurolink are the companies in which the farm-ers can insure themselves from natural disasters. The state separated 70 million denars for thismeasure this year, and the deadline for applying is 30th of June.

skills, to develop own responsibility, entre-preneurship and fellowship, in order to cometo positive change. Our motto is to be better-better husbands and wives, and better man-agers. The founder of our organization,Biedenberg didn`t imagine our progresstoday. In our version several additional

issues in relation to the activity as citizens inthe society are involved. Our web-site indi-cates that we communicate through fourchannels entrepreneurship, leadership,management, and training. In order toachieve that we are based on four matters business working and behavior, as secondbase personal development, training andleadership so that you can be a leader ofyour own organization despite that you arenot a leader in the company that you work in,and joining JCI means that you become amember on the international organization.

The last base is the projects of the com-munity and the participation in it. The proj-ects present opportunities to learn, to devel-op as individual and as a group.

Why to join? The first reason is the per-sonal development. If you stop learning

today you will never be a leader of the devel-opment tomorrow. The second reason is theleadership. If you want to be leaders in ourorganization JCI, you can make mistakesand you can pass this experience in yourenterprises. Other reasons are the societalresponsibility and community`s projects,

through which we help our children to live inbetter tomorrow. And of course fellowship when there are many people with the samemental opinion and the same ideas, youknow that you are wining. The last matter isthe international events and fun.

We focus on development of good lead-ers, on broad network, personal develop-ment of skills in all areas, to be the best in thelearning business of good techniques, oppor-tunity to meet people who work in the samefield as you sharing at the same time theinterests and becoming trainer as I am.

What is the benefit? Despite the profes-sional thing that you learn, you meet manypeople; have free training, free network andfree knowledge sharing. In order to reassurethat you are the next individual I wil l point out

some of them mister Heineken, well knownafter the beer Heineken, but nobody knowsthat he was a member of this organization,Mr. Kennedy, Chirac, Clinton, Coffe Anan.

You also have your leaders in Macedoniaand you should be proud that you have such

names as Mother Teresa, and Alexanderthe Great who were leaders in the past andwill continue to be leaders in future, empha-sized among the otherRichard Heck.

Experts of JCI consider that Macedoniatoo has a suitable business climate, especial-ly with alleviating the company`s registrationprocess, and conditions of forming new com-panies.

The Macedonian National Chamber ofyoung entrepreneurs is based on the samemodel as in other countries too, where thisorganization is present. Financing the organ-ization is made by membership fee, sponsor-ships and governmental assets when itsabout social projects. In more than 100 coun-tries in the world, the international JCI organ-ization has over 250 thousand members.


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The researches implemented by theEuropean Commission on the situationin the ten new member- states in the

European Union, show that all of them havedifferent economic growth, but also that thereare differences in their real nearing to theUnion`s growth level. For the growth and im-

portance of the economic policy, underliningthe question are there any limitations for thereal convergence speed, spoke Istvan Se-keli, director for research in the DirectorateGeneral for Economic and Financial Affairs inthe European Commission, on the recentconference organized by the National Bankof Macedonia.

- The analyses show that the Baltic coun-tries` economies, although they have suf-fered economic shocks, converge significant-ly after the fast healing. The Central Eu rope-an countries started converging earlier, in2001, and Bulgaria and Romania much late-

ly. At the same time, great deficit on the cur-rent account was noted with the fast conver-gence - said Sekeli.

- Nobody doesn`t really know where isthe limit of the convergence. We are facing adifferent situation than the one we haveexperienced in the past. For these countries,we can say that on this income level, theworking force quality is unusually high. It isclearly indicated with the modern technology.Namely, it shows those countries can produ-ce better and more quality products if theyhave more educated cadres. The Baltic co-untries - Lithuania and Latvia are example of

that as they realize much faster develop-ment, especially in export.

But, there are also other factors that areimportant for the macroeconomic develop-ment, i.e. that influence the potential growth,like the institutional quality, acquiring educati-on, etc. Firstly, institution`s quality, not onlythe public, but the private as well is of a greatimportance. The second factor is acquiringappropriate education. The third factor is fi-nance convergence, which includes the ho-me saving, foreign investments and privatecrediting. I would mention the governments`efficiency as the last factor.

Finance integration

The finance integration and its influenceon the finance convergence are of a greatimportance for the West Balkans countries

because they are surviving a credit boomWe revise four possibilities to see the dynam-ic of the currency policy. We have a flexiblecurrency or flexible prices and we have in-flexible prices. So far, it was much spoken onwhether the application of a flexible currencyis good. Actually, there is interaction between

these two things. If the country has flexibleprices, the implications of a fixed currencyare smaller. If the country has completely fle-xible prices, theoretically, this regime be-comes almost unimportant. At the same time,if the country has inadaptable prices, whichdo not only include the prices market, but thelabour market as well, than important impli-cations happen. The country can becomemore sensitive to certain shocks and chan-ges. Those are the greatest challenges a co -untry faces when creating its policy. If a co-untry ha s a flexible currency or completelyflexible home prices, than they are equallydistributed.

We take the households as secondexample. There are three kinds of house-holds. The ones are oriented toward l iquidity,i.e. spend as much as they earn, the secondones are those who take credits, dependingon their collateral, and the third group house-holds is composed of households that havefunds and do whatever they want with them.Suddenly, the households have need forcredits, not of a same value as their collater-al, but they take higher amount, e.g. 10 %more. It does not happen only here, it hap-pens in other countries as well. It is a shockin a system, when every household exceedsthe limit it is able to pay, to cover it by the

pawn. So, they have unlimited access to takecredits from the bank. Actually, they havecertain limitations, but if they are removed,the households will be able to take higheramounts, which they will not be able to coverby the pawns. This way the country can notmake progress, on the contrary, it returns inthe previous phase. The liabilities increase.

So, both processes appear to be almostsame. Therefore, when some problem orshock arises, the policy creators can notnotice all the problems immediately. Theyshould revise all the aspects, the conditionswhen they arose and so on. Even after thatappropriate policy can be created.

If we consider the last example, in phasetwo is the credit shock. It is especially difficultpart, because the fixed currency can be ma-de only through reduction of the home inflati-

on, which could mean deflation. That price in-flexibility comes to the forth right here. Somecountries have bigger problems to afford theadaptation. Similar example is the currentaccount deficit reduction. For example, thecredit shock and its influence on the currentaccount. In this case, there is a period when

COMPETITIVENESS OF THE SOUTH- EAST EUROPEAN COUNTRIES AND THE CHALLENGESON THE WAY TO THE EU

THE ECONOMIC GROWTH IS NOT LINEAR,

IT FACES SHOCKSThe Baltic countries, although they have suffered economic shocks, their economies converge significantly after the fasthealing. The Central European countries started converging earlier, in 2001, and Bulgaria and Romania much lately the

finance convergence includes the home spending, foreign direct investments and the private crediting

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the prices in certain country are higher thanthe prices in other countries. What do notsurprise us are that in many Balkans` coun-tries and other countries, theoretically wecan divide the both shocks and can see how

each country reacts on certain shock. Theremust be other problems as well, which givedifferent results.

Here are also the biggest policy challen-ges. The economies develop fast, the opini-

ons of the public and the policy makers mightdiffer, but when phase two comes, all theproblems a country faces in its economycome to the forth.

ChallengesImportant thing in this is the efficiency of

the Government and the quality of the publicfinancing, as well as the labor quality and thepossibility of introducing innovations. Inmany countries, the financial system is beingdominated by foreign corporations and insti-tutions, which can borrow means under theirconditions. There are other mechanisms,such as private transfers, not only in Western

Balkan but in other countries too. And, it isvery important to mention that when the cap-ital goes in, it only creates bigger productivi-ty. Meaning, everything depends on the fi-nancial system and how efficiently it can dealthe means it owns. If means are not invested,the overall process will be founded on theexpectations from several investments in thefuture. This is based on some expectationsfrom the crediting that, unless we havemeans that are not being allocated accordingto their quality, then we can not have suc-cessful distribution of means and their pro-

jection where it is necessary.

When it is possible the households investtoo, regardless of the fact for what kind ofinvestment it is all about. Every householdwants to achieve more, to invest whether intheir education or in other spheres of the live.If there are not enough investments, therewill be no progress of the productivity, whichdraws other consequences. Unless the sys-tem does not have, or its capacities are limit-ed, then it is hard that certain society willachieve success.

Some of the implications in this part are big government does not mean that it iswrong thing, but it is a question how this gov-ernment is efficient. Maybe the sintagma biggovernment should adjust to the sintagma ofgovernment that is big enough to achievecertain success. There are governments thatare big by numbers, but they are not efficientenough in implementation of the politics.

Once more I would mention the problem ofincorrect allocation of the means. Unless onebig government knows hoe to rightfully allo-cate the means, then, the success will be dif-ficult to be achieved.

As second item, I will mention the incre-ase of the crediting again, which signifies anincrease of the potentials. Every day the cre-ators of the politics should not think whatcould they have done, but they should givemore attention from the following day to real-ly pledge for the fulfilling of the previously setgoals to allocate the means they have real-ized in areas where they will be used thebest. As third, one mentions the trust in theforeign exchange savings. Until few yearsago, most of the domestic savings have beenin foreign exchange currencies. It is not amatter of making a comparison between the

savings in domestic currency and in foreignexchange currency. The problem is in theway of doing that and who are the investorsin these means. The savings in foreign ex-chan ge are as much useful as they are thesavings in domestic currency. However, theprob lem in most of the countries is that thesmaller banks are actually in ownership ofbigger foreign banks.

Priorities

In terms of priorities and the goal theyshould define when creating the policy, thegrowth potential should be improved and in-

creased, no matter which segment of the go-vernment we talk about. The governmentshould enable positive environment whichwill enable economic growth. There are alsoother important activities of the government,and if we look back again on what we havesaid, than it can be concluded that all shocksone economy can suffer, i.e. negative effects,can only return the country one step back.

Key role of the government in providingstabile financial basis is reducing the activi-ties that slow down country`s development.Satisfactory allocation, dispersion of the ca-dres should be enabled.

The financial integration is only in favourof the EU countries, not only those who arealready members, but I hope as well the ap-

continues on page 12

Macedonia has been approaching to the more advanced transition economies with high tempo in the past few years. We have beenachieving positive and stabile growth rates for several years in a row, but we are still far from the Eurozone average. Namely, the produc-tivity in the trade sector is growing with relatively lower rates in relation with our foreign partners, which was especially expressed by thelack of large foreign companies and the loss of important foreign markets due to export of low quality products. These were movementsthat caused inflation pressures and absence of real appreciation in each situation, as it was the case in the transition countries. This is theconclusion from the international conference organized by the National Bank of the Republic of Macedonia (NBRM) entitled TheCompetitiveness of Southeast European countries and challenges.

The Governor of NBRM, Petar Gosev, on this occasion announced that in the last decade, Macedonia was recording relatively low eco-

nomic growth rate of 2.7% in average, which also brings low dynamics in approaching to EU. The gross domestic product per capita is25.7% of the Eurozone average although it marked increase in relation with the year of 1996 (23.6%).

- In other words, we have bee achieving positive and stabile growth rates, furthermore, we reached the highest growth rate in 2007 withGDP of 5.1%. This process is backed by the realized foreign investments and the expedited credit expansion, which last year markedgrowth of 39%. Since last year`s closing quarter, the home inflation rate has speeded up largely due to the global food and energy priceincrease-said Gosev.

However, all these parameters related to the economic growth are part of the transformation not only of our country, but the transfor-mation of the Central and Southeast European countries on their road to the EU accession, which, as the Governor highlighted, will leavegreat mark in the history of mankind.

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plicant countries will benefit of that, so adop-tion of wrong policies should be avoided.

Certain weaknesses are also presenthere, and the central among them is the effi-ciency, the effectiveness of the government,especially in the public sector. Another as -pect would be the credit boom notable in ma -ny countries and it can be wrongly interpret-ed, because the situation is far more favou-rable than it looks like. What can the govern-ment do in order to deal with it? It is veryimportant to establish a policy that would bescientifically founded. It should reflect thereal situation. The government can not deci-de upon, for example, certain rise by 25 %,see the real possibility for such rise. There is

an interaction between the development ofthe macro economy and the credit policy. Di -agnose is the most important. If we deter-mine the reasons for certain shock wrongly,than the consequences can be great. Thefactors which are important for a country toestimate its own capacity are almost same inall countries. It is the reforms that should helpwhen adapting on those consequences. Itshould be long- term goal. The growth is nota linear process, it faces certain shocks andthe faster they are overcame, the more suc-cessful will be the country, the economy.

In many cases, there are certain external

shocks which can totally prevent the imple-mentation of certain policy. But, still, it mustbe realized that only one effective policy canbring progress. If this progress is moved, wewill face certain problems in many segments.

Main factor- stabile course

The competitiveness in South - EasternEurope is one of the most important issuesthat should be solved in the process of EU in -tegration of these countries, pointed out Pe-ter Mooslechner, director of Peter the Eco-nomic Analysis Section OesterreichischeNational bank, who explained the initial gap

at income on the Conference, the factors thatare in its basis in the SEE countries and theircompetitiveness in the Frames of Europeand which direction does the region move to.

- According to the income levels it can benoticed that they are lower in the South-Eastern European countries are lower than inthe EU countries. Those amounts are differ-ent indifferent countries. But I think that ingeneral, coming closer to the level which isrealized in the EU member - states is positi -ve. So, it should be seen how much time willpass until reconciliation is reached, i.e. low-ering the lag in income amount. What wouldhappen if the income rises by 2 % at aver-age; how long will it take if these countries orthis group of countries reach rise by 5 %, 6%, etc? It will take time, which is seen fromthe experience of Portugal and Greece,which, at the time they integrated in the EU

had such problem and still try to achieve theEU average level.

The new member - states fit well in the

trend that is notable in the EU countries. Themarket participation in the SEE countries`export is much lower, but when they will inte-grate in the Union, their complete EU integra-tion will be seen, so for this reason, this fac-tor`s importance should be born in mind.

Main factor which propels the competi-tion is the stable real currency. What we seein Macedonia is stabile currency, and thesame applies to the other SEE countries.But, also, what we see growing is the costsper working force. There are clear differen-ces among the new member - states. For ex-ample, this is also notable in Romania,

Czech Republic, Hungary. But, still, there arepositive examples- Slovenia, Croatia, whereit is adapted on the purchasing price parity.There is concern that the costs per workingforce will be the SEE countries problem inthe EU convergence process. On the otherside, there are clear improvements of theinstitutional framework. There is a significantimprovement in Macedonia in the last tenyears and the level of these transition indica-tors is now moving much closer to thosenoted in the EU countries. At this moment,the region`s advantage is that the main ele-ment is that one of the strongest factors giveindication toward certain loss or lowering the

price competitiveness, but the weak factorsgive a better image- there is better infrastruc-ture and it supports the trade with the EUmarkets. The geographic location, the close-ness to the enlarged EU, than progress in theregional cooperation and integration and it isclear that these countries are attractive forforeign direct investments.

Progress in the trade integration

It is evident that the SEE countries arecoming closer to the EU level, which showsthat there is clear increase in the stocks andservices export. Macedonia has therefore

good performances in that aspect too. Whichfactors are in the basis of these favourablemovements? It seems like mainly the increa-sed participation in the interregional tradehas its own significant part. We see that theexport participation with the prosperous EUstates is reduced, but that of the new EUmember- states is increased. The increasedparticipation of the SEE region integration isthe main locomotion of the export increase. Ifwe revise the kind of goods that are traded,we can realize that there is smaller concen-tration of chemical products and machines inthe export, and that is one of the critical po -ints in the integration process. These are thetwo areas where more advanced productsare included, with higher quality. If we con-sider the comparative advantages of the SEEcountries on the EU advanced market, it isevident that there is progress in processingand the other processed stocks and prod-

ucts, which is not a case at oils, chemicalproducts, machines and transport equip-ment. There is technologic advancement, offcourse, but the structural differences remain.

In many cases, in many countries it willhave to be seen why occurs greater export oflow-technology level products than high-technology level products for export.

The trade balance and the balance of thecurrent account were mentioned many timesso far. What we see is that the trade coursesin these countries increase and are now onmuch higher level than in 2000. But, at thesame time the balance has worsened, IMFalso mentioned this. We face this on a worldlevel as the oil and food prices movement.They are risk factors and bring challenge for

the economic policy in this area. There aregreat examples, like Montenegro comparedwith the external deficits in the Region, but itis thought that the deficit deepens over theyears. The same is valid for some of the EUmembers. What is good for Macedonia is thatdespite the worsening, it has much betterstarting point than many other countries inthe Region in this respect, and that can begood for your integration process.

Foreign investments

There are interesting differences amongthe countries in the composition of the com-

bined current and capital account. For exam-ple, SEE from Bulgaria to Macedonia, includ-ing Croatia, have big stocks and servicesdeficit, and in Albania, Macedonia, Bosniaand Herzegovina the capital account is notused, but the income transfers. Also, highlevel of foreign direct investments is notable.In some countries, like Croatia, which is mo-re advanced in the process of integration,they are higher. Montenegro also, which at-tracts many foreign direct investments, andMacedonia ism not that much attractive.

The composition of the foreign directinvestments should be taken into considera-

tion here. In many of these countries theservices are very significant, especially in thefinance sector. As a conclusion the question-where does the region go - is asked. Oneimportant fact is that SEE has a significantvalue according to the cost and the price inrelation to EU. EU is most important tradepartner of the SEE countries, but they havelow participation in the EU overall import,which indicates significant potential forgrowth. The trade with Central and EasternEurope and the five countries of this regionshows strongest growth than the rest of theEU. The specialization of the low-technologyand basic products faces great competitionwith the Asian countries, especially China.Obviously, technologic advancement is nec-essary in order to achieve long-term compet-itiveness.

V.M.

continues from page 11

COMPETITIVENESS OF THE SOUTH- EAST EUROPEAN COUNTRIES AND THE CHALLENGES

ON THE WAY TO THE EU

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1. DISPUTE BETWEEN THE GOVERNMENT AND THE TELECOM (*****)

2. MACEDONIAN COMPANIES ON INVESTORS` CONFERENCE IN ZAGREB (**)

12-13.06.2008 THURSDAY-FRIDAY

The government and the telecom did notcome to an agreement in the agreed, this is theconclusion that comes after the yesterdays the-atric end of the Shareholding assembly of

Telecom. The government is not satisfied with halfdividend from the Macedonian telecom anddemands the total amount from the gain, conveythe daily newspapers. it is a matter of a gain in thework of the Macedonian telecom in 2007 and theaccumulated gain from 2006. Yesterday, the rep-resentatives from the government capital in theMacedonian telecom have left the meeting of theShareholding assembly dissatisfied from the sug-gested dividend, due to which the Assembly wasinterrupted. According to the suggestion fromMagjar telecom, which was adopted in the lastmonth from the Board of directors, for the twoyears half of the profits should be divided. But inthis case, the government is entitled to 28 millionsof euros instead of the planned 60 millions

In the focus of todays press is also the newsfor the First regional conference for investors fromthe market of capital in Southeastern Europe, heldyesterday in Zagreb. All of the eight stockexchanges from the region of SoutheasternEurope are participating on the conference andthey are presented with 24 regional companies.Organizing portfolio representation for theinvestors in the region is one of the activitiesenvisaged with the partnership memorandum,signed by the stock exchanges in 2007. This rep-resentation has a goal of promoting the regionalmarket and the companies. 150 institutionalinvestors were present on the conference where160 bilateral discussions between the investors

and the companies have been agreed upon.

And, as Vecer and Biznis report, yes-terday most of the shares marked low liquidity onthe Stock Exchange. The correction has causeddecrease of the stock exchange index MBI 10

for 0.83% and the yesterdays trading day hasended with traded 78.5 millions of denars from allof the market segments. Namely, in the last sev-eral days, the investors were not asking about theselling price of the shares. It seems like the mainobjective had been to be selling as fast as it ispossible and at any cost. Such panic way of sell-ing resulted with the sale of the shares for lowerprices than the initial ones However, yesterday,the interest of the investors was turned towardsthe denationalization bonds from the fifth emis-sion. With them, a turnover of 45 millions ofdenars has been realized or almost 60% from thetotal turnover on the market.

Nova Makedonija with Stock Exchangeanalysis too, according to which, the envisagesthat with the emerge of the investment funds, thecourses of the Macedonian Stock Exchange forsecurities will become active, did not came true.This, as it stands in the text is basic impressionupon which almost every manager and analystincluded in this business agree. The explanationis that the political condition that created psy-chosis with the citizens and the investors is themain reason because of which the funds did notsucceed to collect enough capital in order tobecome movers on the Stock Exchange.

There are five fund management companiesand three active open investment funds. Thereare also thirty private investment funds in thecountry, from which most of them work with secu-

rities.

Several of the todays newspapers haveannounced the news that the Tikvesh Winery isregistering a company in Great Britain under thename Tikvesh wines international limited, with a

goal to win this market. As founders of the newcompany are the Kavadari winery with a packet of51% of the shares and the German companyRisse with 49%. The purpose of the joint compa-ny is researching the Western European market,logistics and placement of the products ofTikvesh, inform from the Winery.

Today, you can also read that the head officeof OTE from Greece in whose ownership is thesecond mobile operator in the country, confirmedthat Kosmofon is not closing down. According tothe Greek newspapers Katimerini andElefterotipija, the president of OTE and Kosmote,Mr. Panagis Vurlumis, in the speech before theparliament has rejected the publications in somemedia for the sale and for the closing down ofKosmofon, estimating them as irresponsible.

Vreme conveys the analysis of the WorldBank, calling the countries from Western Balkanto deepen the integration process in the EuropeanUnion and the intracooperation, to decrease theexpenses for telecommunication services and tosolve the problem with the lack of electricity inorder to support their economic growth.

-The last decade, especially the last fiveyears were extremely good for the countries ofWestern Balkan. Now they should improve andmaintain their successes in decreasing the pover-ty and to get closer towards EU, even and if thesurroundings set new challenges is stated in thereport from the World Bank.


DNEVNIKp.1 DISPUTE BETWEEN THE GOVERNMENT AND THE TELECOMp.11 BI 11.06.2008p.11 TIKVES ESTABLISHES COMPANY IN ENGLANDp.11 OTE CLAIMS THAT KOSMOFON DOESNT CLOSE UP-p.11 ELECTRICITY DEFICIT TO BE IMMEDIATELY SOLVED

BIZNISp.3 GOVERNMENT REPRESENTATIVES DISSATISFIED BY THE

OFFERED DIVIDENDp.12 THE BONDS DOMINANT ON THE MARKETp.13 BI 11.06.2008p.13 TURNOVER RISE TO 78, 5 MILLION DENARSp.13 FALL OF MBI- 10 BY 45, 02 INDEX POINTSp.15 SKOPSKI PAZAR HAS NO PROFITS FROM THE CUSTOMS

TERMINALp.15 BUY-BACK SHARESp.15 NON-TRADING TRANSFERSp.15 PROMOTION OF THE MARKET FOR ATTRACTING OF NEW

INVESTORSp.15 ON THE SERBIAN CAPITAL MARKET START THE CLOSED

INVESTMENT FUNDSp.16 NBRM TO RECEIVE NUMISMATIC MATERIALp.16 CONDITIONS FOR HOUSING CREDITS IMPROVEDp.16 EURO`S VALUE CONTINUES DROPPINGp.16 STRENGTHENING OF THE DOLLAR CAUSED DROP OF THE

OILUTRINSKI VESNIK

p.1 JOHNSON MATTHEY DELAYS THE FOUNDATION STONEp.1 THE GOVERNMENT PLANS TO REALIZE PROMISES WITH

TELEKOM DIVIDEND

p.4 OTE CONFIRMS KOSMOFON WILL NOT BE CLOSEDp.8 BI 11.06.2008p.8 VITALIA ON THE EBRD FORUMp.8 CRASHES AND LOW LIQUIDITY OF THE STOCK EXCHANGE

VECERp.1 TELEKOM REFUSES TO DISTRIBUTE DIVIDENDp.6 WESTERN BALKANS TO INTEGRATE IN EUp.6 INVESTMENT BANKING STARTSp.6 THERE IS NO ROOM FOR MHK ZLETOVO IN VELES

VREMEp.1 THE GOVERNMENT QUARRELS WITH TELEKOMp.5 TANKS CLOG UP OKTAp.6 WESTERN BALKAN SHOULD HURRY IN EUp.6 PETROL CAUSES TRADE DEFICIT

VESTp.7 GOVERNMENT CLAIMS TWICE THE OFFERED DIVIDEND

NOVA MAKEDONIJAp.8 WHOLESALE, PIECE BY PIECEp.8 INVESTMENT FUNDS FAIL TO BECOME MOVING FORCE OF

MSEp.8 TIKVES ESTABLISHED COMPANY IN ENGLANDp.9 DESULPHURIZATION OR BLOCKADE OF OKTA!p.9 TELEKOM DISTRIBUTES DIVIDEND AT ITS OWN ASSESS-

MENTp.9 STOPANSKA BANKA REDUCES HOUSING CREDIT FEESp.9 MACEDONIAN COMPANIES ON INVESTORS` CONFERENCE

IN ZAGREBSPIC

p.1 VELES PROTESTSp.5 BLOCKADES BEFORE OKTA


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1. THE BLOCKADES BEFORE OKTA AT EASE UNTIL MONDAY(*****)

2. DEPOSIT FOR THE BANKS FOR MORE GRANTED LOANS (*****)

14.06.2008 SATURDAY


The news for the condition of the domesticmarket of the mobile telephony is the most com-mon among the Saturdays printed media. Thenewspapers inform that the Commission at the

Electronic communication agency has rejectedthe appeals of the T Mobile and Kosmofon oper-ators for the initial solutions for referent offers forinterconnection, i.e. these two operators willcharge 50 percents lower prices for VIP for thecalls towards their network. The decision of theCommission is final, and the operators are due tosubmit the amendment of the referent offer forapproval to the Agency, in a deadline of 30 daysfrom the adoption of the second instance deci-sion, is stated in the announcement of AEK, fromwhere they explain that such decision has beenreached in order for efficient competitiveness inthe area of public communication services in thecountry to be promoted.

The National Bank wants to rein the increas-ing trend of crediting, is the title of the article inVecer, which informs that the banks and the sav-ings banks in the country from the 1st of July willbe obliged to separate additional deposit with theNational Bank, in case if the growth of the creditsfrom the population goes over 40% at the end ofthe year. About the compulsory deposit, theNational bank will pay interest from one percentson annual level. The Council has adopted amend-

ment on the decision for the interest in theNational Bank, with which the interest beingcharged by the National bank for the Lombardcredit instead of 7.5 percents will amount 8.5 per-

cents. According to the Stock Market analysis in

Nova Makedonija, MBI 10 continues to go downand it has lost half percent more on last Thursday,on the last trading day from the last week and itclosed on 5 358.34 points. The turnover of the offi-cial market in classic trading was 17.7 millions ofdenars. Bigger thickness of the traded shares inone transaction on Thursday has been noted withGranit, Alkaloid, Komercijalna Banka andMakpetrol. Together, these shares have realized aturnover of eight millions of denars, which repre-sents almost half of the total turnover on the offi-cial market, and they also dragged MBI 10down.

In Nova Makedonija you will read that theBalkan chambers network will hunt down foreigninvestments. Two thousand of companies fromEU and from Western Balkan can point out theobstacles for attracting direct foreign investmentsin the survey that will be implemented in theframes of the Partneri 2 project, with which theinvestments in Albania, Bosnia and Herzegovina,Macedonia, Croatia, Montenegro and in Serbiawill be promoted. The project costs at least 1.3

millions of euros, it will last 18 months and it hasbeen initiated and carried out by Euro Chambers.

Utrinski Vesnik emphasizes the leaving of thethird group of economic promoters of the country

during this week. Their destinations are Germany,France, Norway, Denmark, Sweden, Finland andthe Baltic countries, then follow Russia, Ukraineand Kazakhstan, Bulgaria with Romania Israel,Jordan and Egypt, China, Hong Kong, Korea,Japan and India with Malaysia, Singapore and Australia. Macedonia will have a total of 18 pro-moters abroad that are going to help in attractingforeign investments.

Utrinski announces that Silmak will becomeoperational with seven stoves for the productionof ferrosilicium. After the reactivation of Silmak inthe beginning of March this year, one started withmonthly production of around 4 000 tons of fer-rosilicium and now one gets near to 5 200 tons of

monthly production. For such production effect, allof the 600 workers that had been on forced vaca-tion earlier have been engaged.

In todays newspapers is the announcementthat Usje and Silmak have bought the night elec-tricity i.e. the electricity from the night surpluses,which were offered by MEPSO in the period from16th to 22nd of June. From this action, the trans-mitting system operator will cash in 62 000 euros.

DNEVNIK

p.7 "VIP" TO PAY CHEAPER INTERCONNECTIONUTRINSKI VESNIK

p.3 DEPOSIT OF THE BANKS TO NBM IF THE CREDITSINCREASE FOR OVER 40 PERCENTS

p.4 SILMAK TO START TO WORK WITH SEVEN STOVESp.7 12.06.2008p.7 APPEALS OF T-MOBILE AND KOSMOFON TO BE REJECT-

EDp.7 THE THIRD GROUP OF ECONOMIC PROMOTERS TO SET

OFFp.7 THE BLOCKADES BEFORE OKTA AT EASE UNTIL MONDAY

VECER

p.6 DEPOSIT FOR THE BANKS FOR MORE GRANTED LOANSp.6 USJE AND SILMAK BOUGHT THE NIGHT POWER

VREME

p.4 OKTA GOT EXPULSION UNTIL MONDAYp.6 THE SALE OF PETROLEUM DRIES UP, STATE BUDGET

OVERFLOWSp.6 BANKS EXAGGERATE WITH CREDITS

VEST

p.3 SILMAK TURNS ON ALL THE SEVEN STOVESNOVA MAKEDONIJA

p.8 THE FUNDS ARE DEPOSITING IN KOMERCIJALNA, ALKA-LOID AND IN GRANIT

p.8 DESULFURIZATOR UNTIL MONDAY TO BE SET OR TO STOPTHE REFINING IN OKTA

p.8 BALKAN CHAMBERS NETWORK TO HUNT FOREIGNINVESTMENTS

p.8 AEK REJECTED THE APPEALS OF T MOBILE AND KOS-MOFON

SPICp.1 OKTA TO RELEASE MOUNTAIN AIR?p.6 OKTA TO RELEASE MOUNTAIN AIR?


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GLOBUS

Pg.28 LIFE WITH GAS-MASKS

This situation is not surprising by two reasons. The radioactive iron usu-ally comes from Kosovo, where generally the radiation has highly beenincreased because of the war there and taking into consideration thatMacedonia, despite the warnings from the International agency for atomenergy, still doesnt have adequate warehouse for low and middle-radioac-tive waste, then radioactive lightning rods and old radioactive sources thatwere used in the industry can often be found among old iron.

KAPITAL

Pg. 8 LUKOIL IS YET TO EXPAND THE BUSINESS IN MACEDONIAThe upcoming period the Russian oil company Lukoi l will expand its ac -

tivities in Macedonia, the companys president, Vagit Alekperov, announcedon the meeting with Macedonian president, Branko Crvenkovski.

Pg.8 GOVERNMENT AND AGROKOR START BUSINESS TOGETHERIN STRUMICA

In Strumica these days started the preparations for the construction ofthe first agro-stock exchange in the country. According to the announce-ments, the purchase-distribution center in Strumica will officially be openedbefore the beginning of next production season.

Pg.11 KOSMOFON CONTINUES TO OPERATE, BUT IN WHAT WAYThe office of Kosmofon in Macedonia sent an announcement in which it

explains that it will not close, after the Greek paper Ta Nea published that thecompany will close its branch in Macedonia so that it does not harm the inter-ests of Deutsche Telekom.

Pg.11 BRILIJANT INVESTS 9,8 MILLION EUROS IN NEW PLANTCooking oil production factory Brilijant from Stip opened new plant for

production, in which it invests 9,8 million Euros. The new factory is equippedwith modern equipment, unique on the Balkans, which is from the worldsfamous manufacturer the German GEA Westphalia.

Pg.24 THE STRONGEST WAVE OF CHANGES COMES IN SEPTEM-BER!

Macedonian telecommunication market starts to shake again. The few-month the calm before the storm, which covered the market, right after thebombastic announcements for the wide range of services the WiMax opera-tors will offer, has ended, and now the market enters new chapter of very bigchanges.

Pg.28 VODAFONE SEES GREAT POTENTIAL IN MACEDONIASTEFAN VEIL SENIOR MANAGER FOR PARTNER MARKETS IN VO-

DAFONE

Besides that you now have exclusivity in the offer of BlackBerry servic-es here, do you have any other plans on expanding your business on Ma ce-donian market?

Veil: At the moment we implement BlackBerry on Macedonian market asresult of the mutual cooperation between Mobilkom Austria Group andVodafone, and there will be many other products coming in future as well.

Pg.40 INVESTMENT BANKING IN MACEDONIA AS WELL Apart from the standard services they offer to the population and the

legal entities, banks in Macedonia offer no services of the so called invest-ment banking, segment from the banking industry that develops in the regionmore and more, and the developed countries have it from long ago. Or, to bemore specific, they havent offered such services until now.

Pg. 42 ZK PELAGONIJA LEAVES STOPANSKA BANKA-BITOLA BY

FORCEGovernor of National Bank of Macedonia, Petar Gosev, passed decisi-

on by which the shares ZK Pelagonija owns in Stopanska banka-Bitola willbe sold through public auction on Macedonian stock exchange.

Pg. 43 THREE NEW OPEN FUNDS WILL ENTER STOCK EX CHAN-GE1

Macedonian capital market received new institutional player. Insurance

company Sava Tabak together with Slovenian company PozavarovalnicaSava (Sava Re) from Ljubljana founded new company for investment fundsmanagement which name is Sava Invest.

Pg. 44 A WEEK IN THE SIGN OF TOPLIFIKACIJA!The first week of June brought nothing spectacular concerning the

turnover or the share prices. Realized have been transaction worth 113,6 mil-lion denars, which is 13 million more compared to the week before. On theofficial market the turnover was 20 million denars bigger and on the regularmarket one million denar smaller.

Pg. 46 STOPANSKA BANKA INCREASED THE INTERESTS OF DE-NAR CREDITS AND DEPOSITS

Stopanska banka inc

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