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berNIK-YRINUMBE10hAPIL2

SP

METOFTDENIK)

PSYCHOLOGICALMOMENT BROUGHT

THE INDEX DOWN

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4 D A ILY S TOC K EX C H AN G E R E V IE W O F P R INT ME DIA E V E NTSberzNIK number 17 Date 07.04.2008

TOPLIFIKACIJA AD SKOPJE

ACHIEVED INCOME MORETHAN 117 MILLION DENARS

Toplifikacija AD Skopje last year achievedtotal income of 2,024,740 denars, while totalexpenditures amount 1,888,049 denars.Achieved income in 2007 after the taxationamounts 117,703,398 denars. Gross profitaccording to the annual account in 2007 is7.71% of the nominal value of each share. Onthe session of company`s Management Board,held on 31st of March, was concluded that theShareholders` Assembly, which is scheduledon 22nd of April 2008, to decide the amount ofportion of this profit to be paid as dividend to

shareholders. Draft decision for allocation ofthe net profit reads that 15% of it or17,655,510 denars are allocated as legalreserves, dividend for regular shares in grossamount in 25 million denars or 450,000 sharesat price of 55.55 denars.

Other part of the profit remains not allocat-ed and will be used for investments. Accordingto 2007 dividend calendar, the date forannouncing of the Shareholders` Assembly forannual account for last year is 1st of April2008. The last trading day with right of divi-dend is 30th of April, and the first day withoutright to dividend is 2nd of April 2008. The datefor review of shareholders` book is 6th of April,and the dividend will be paid within legally pre-scribed term, up until 30th of September 2008,across shareholders` transaction accounts.

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

THERE IS NO SPACE FOR

PANIC - NO MARKETMISBALANCE

Regarding the last events related to theaccession of the Republic of Macedonia inNATO and its effect over trading onMacedonian Stock Exchange Ltd. Skopje on03.04.20058. MSE Board of Directors heldurgent session and passed appropriate conclu-sions for public information.

- MSE Board of Directors considered thesituation of securities trade on MSE on03.04.2008 and ascertained that the main

index of Macedonian Stock Exchange Ltd.Skopje - MBI-10, on the closing of 03.04.2008marked record breaking daily fall of 8.4%. Inthe same time, the Board ascertained that thetiming of events related to Macedonian NATOaccession for longer time was well known infor-

mation for all investors on MSE. Performedanalyses shown that beside record breaking

fall of MBI-10 index on daily bases, achievedtotal turnover on MSE of 76.7 million denars isamong the top-five trade days in 2008.Furthermore, Board of Directors ascertainedthat the trade of individual securities on MSEon 03.04.2008 mainly evolved without stressedmarket misbalance, i.e. on the market therewere purchasing and buying orders;

- Out of these reasons, the Board ofDirectors concluded that the trade on MSEFriday, 04.04.2008 will continue in accordanceto effective trading rules approved by theSecurities Commission, which was in perma-nent communication with the stock exchange

during the day. Board`s conclusion is based onthe fact that the past several years (when MSEmarked exceptionally great increase of pricelevel and total turnover) many mechanismsthat were intended for objective formation ofprices of securities were implemented in the

rulebook of MSE trading, but, even moreimportant in this moment, and minimization of

possible great price oscillations sloping up anddown (introduce price limitations, establish-ment of the so called base price and minimumacceptable quantities etc.).

- The Board of Directors pointed out oncemore that worldwide experiences show thatdecisive factor that determines securities` priceon stock markets are operative and financialperformances of companies, their current con-dition and future perspective on medium andlong term. All other circumstances, includingthe outcome of the NATO summit, do not havedirect influence over the work of joined stockcompanies, but, before all, they affect on time

dynamics of price amplitudes of the market.

- The Board of Directors will continue tofollow developments on the securities marketand act in accordance to them.

FOLLOWING RECORD BREAKING INDEX FALL - SESSION OF MSE BOARD OF DIRECTORS

GRANIT AD SKOPJE

ENGAGEMENTS IN UKRAINEConstruction company Granit informed that

this month starts to work in Ukraine. It is a mat-ter of reconstruction of the highway Kiev-Cop,investment estimated on 53.4 million euros. Inthat order, from Macedonia will be engaged300-400 workers, who are supposed to work inUkraine in the next 30 months.

REPLEK AD SKOPJE

DIVIDEND PER SHARE - 4,981 DENARS

Operation results in the past year show that Replek AD achieved total income of958,557,012 denars, while expenditures reach 768,578,836 denars. After the taxation andincome contributions, results of regular operations amount 182,966,390 denars. Shareholders`Assembly held on 31st of March 2008 passed a decision for allocation of the profit, accordingto which 8,582,308 are allocated for legal reserves, and for paying of dividend to shareholdersis allocated amount of 129,186,900 denars. After paying the personal income tax from dividend,the net amount of the dividend is 116,268,210 denars.

The amount of dividend per share is 4,981.5 denars. The Fund for Employees` Awards isallocated amount of 17,703,853 denars, and the sum for payment of employees is 15,933,468.According to the dividend calendar, the last trading day with right of dividend for 2007 is 14th ofApril, the first trading day without right of dividend is 18th of April, and the date for registrationaccording to which will be determined the List of Shareholders with right on dividend for 2007 is17th of April 2008. One part of the payment of dividend will be realized by the end f April, andother part by the end of August.

NEW COMPANY

ESTABLISHEDConstruction company Granit establishedTrading and Services Company Car Wash-

Granit DOOEL Skopje, which deals withmaintaining and reparation of motor vehicles.Recently founded company uses basicassets owned by the founder part of the build-ing premise Mehanika, necessary for per-forming of the function and modern equip-ment for car washing. Equity amounts 5,000euros.

TEMPORARY STANDSTILL OFTRADING WITH PM01According to the correspondence of the

Ministry of Finance of the Republic of Macedo-nia, on the 27th, 28th and 31st of March 2008,(Thursday, Friday and Monday), there was a

temporary standstill in the trading of bondsissued by the Republic of Macedonia for settl-ing the claims of citizens on the basis of placedforeign currency deposits, with the trading codeRM01, due to calculating the interest with thebalance April 1st 2008.

The trading of bonds issued by the Repub-lic of Macedonia for settling the claims of citi-zens on the basis of placed foreign currencydeposits will continue on Monday, April 1st2008.

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DAILY S T OCK EX CHANGE RE V IE W OF P RI NT M E DIA E V ENT S 5Date 07.04.2008 number 17 berzNIK

2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS

1. ESM-EVN FILES LAWSUIT AGAINST THE DECISION ON PAYING FINE (***)2. THE STOCK EXCHANGE TOO AWAITS THE OUTCOME FOR THE ADMISSION TO NATO (**)

31.03.2008 MONDAY

1. SHORT REVIEW OF EVENTS

DNEVNIK

p.1 BUNARDZIK AWAITS THE NEW MEM-BER OF THE FAMILY

p.7 BUNARDZIK AWAITS THE NEW MEM-BER OF THE FAMILY

p.7 MZT PUMPI GAINS 1.4 MILLION EUROSPROFIT

UTRINSKI VESNIK

p.8 THE STOCK EXCHANGE TOO AWAITSTHE OUTCOME FOR THE ADMISSIONTO NATO

p.8 ESM-EVN FILES LAWSUITAGAINSTTHEDECISION ON PAYING FINE

p.8 THROUGH GOOD MANAGEMENT - EAS-IER TO CAPITAL

VECER

p.6 TELEKOM WITH THE HIGHEST ISSUEDFINE OF 2,3 MILLION EUROS

p.6 VISAS RESTRICT THE BUSINESSp.7 DIESELFUEL E4 ON SALE

VREME

p.6 GASIFICATION IN MACEDONIA CAN`TSEEM TO START

p.5 THE GOVERNMENT GIVES SILMAKPRIVILEGED POSITION

NOVA MAKEDONIJA

p.5 THE STATE RECEIVED OVER 2 MILLION

US DOLLARS FOR THE IPA PROGRAMp.2 NATO SUMMIT: COUNTDOWN FOR THE

INCERTITUDE ON THE STOCK EXCHAN-GE

In the text, titled - The Stock Exchange tooawaits the outcome for the admission to NATO, intoday`s issue relates to the situations on the Mace-donian Stock Exchange. According to the analysts,even though Macedonian capital market was activein the recent period, all investors are anticipatingthe solving of this very important dilemma whetherour country will get an invitation for admission tothe Alliance. If Macedonia becomes a member, itwill probably result with an increase of the turnoveron the Stock Exchange, as well as with an appreci-ation of the shares. This especially refers to thecompanies which showed excellent economic re-sults last year. Otherwise, last week on the StockExchange was characterized with a mild increaseof the prices of the shares, but with a lower turn-over than the week before. Shares in the amount of3.4 million euros were traded, which was 30% lessin comparison to the week before. It was mostlytraded with the capital of Komercijalna Banka, andshares worth 749,000 euros were sold. The valueof the shares depreciated throughout the week.

The shares of Alkaloid made a turnover of 426,000euros. Shares of Granit worth 336,000 euros weretraded.

The amount of 2, 3 million euros that Make-donski Telekomunikacii earned for abuse of domi-nant position on the market, is the highest fine thatthe Commission for protection of competition(CPC) has issued in 2007, Vecer conveys. Telekomearned its fine because it had calculated and char-ged its subscribers service charges in their month-ly accounts.

As this print media conveys, in the annual re-port of the Commission, it can be read that Te-lekom is one of the nine cases the Commission hasacted on last year and all of them were issued fineof 2.401.802 euros. Utrinski Vesnik informs thatagainst one of these decisions of fines it has alre-

ady been filed a misdemeanor. Namely, last weekESM-EVN filed lawsuit to the Administrative Courtagainst the Commission for protection of competiti-on's decision on the issued fine for charging servi-ce charges in the electricity bills. ESM-EVN thinksthat so far no misdemeanor with charging thesecharges in the electricity bills has been made andthat there is no ground for issuing fine. Accordingto the company, the Commission's decision waspremature and against the principle of presumptionof innocence.

In today's newspapers edition you can also re-ad about the reaction of the cement factory Usje,with reference to the Government's decision to sellthe night surpluses of electricity at lower price onlyto Silmak from Jegunovce.

According to the General Director of Usje, An-

toni Nikopulos, by this decision the Governmentdiscriminated the other major consumers which didnot get this privilege, so the transition from tariff toimported electricity costs them three times more.

- Usje is the only company working with greatcapacity at night. We expressed preparedness totake the night surpluses, emerging in the system.But the Government decided to give the total elec-tricity to Silmak. Does this mean that Silmak hasprivileges on the market, asks Nikopulos.

The print media follow the preparations for be-ginning of construction of the Johnson METI facto-ry in Bunardzik with great interest. As you can readin Dnevnik, Johnson Controls are expecting theirarrival with impatience; correspondingly they areseeing a partner in Johnson METI in order of cana-lizing their mutual demands as foreign investors,and will commonly articulate their common needsin solving the problems regarding the inefficiencyof the administration, the non functioning of theone-stop-shop, especially in the Cadastre and inthe institutions which are issuing licenses.

The newspapers are coming round on the to-pic for corporative management, seeing that it ena-bles the companies a greater competition, easierway to gain capital, provides more profit as well asgood sale on the Stock Exchange. The good corpo-rative management means, above all, better ac-cess to capital. As a support of this claim the ex-perts take the research of Governance Metric inter-national from 2006 as an example, which was ma-de on 3.200 companies throughout the world, andwhose results had indicated that the companieswith good corporative management in average in-dicate profit increase for 16 percent while, compa-nies with weak corporative management recordaverage profit increase for just 8.7 percent.

Skopje seated company MZT Pumpi closedlast year at 1.4 million euros profit.

- In 2007 we made serious and important stepforward and achieved profit rang us among themost successful in the country. This financial resultis even more significant if two other indicators areconsidered: Earnings before Interest, Taxes, De-preciation and Amortization (EBIDTA) and export'sparticipation of 76% in the in total income. This is aresult of successful restructure, team work, impro-ved corporative management and care of humanresources, officials in MZT Pumpi stated. Their pro-ducts and services are present on Southeast Euro-pe markets and in countries that are leading theenergy sector in the world. In the next period com-pany considers issuing new emission of stocks inorder of collecting assets for extension of its capa-cities.

Publishing: INTERNACIONAL NIK AD - SkopjeMedia library and digital archiveEditors office: berzNIKAddress: Square MAKEDONIJA bb, p.box 882 Skopje, 1000,

R.MakedonijaPhone. 02/25.32.800 faks: 02/25.32.839web: www.interNIK.com.mk;e-mail: [email protected]

Executive Director: Zdravko JosifovskiAccount Menager: Divna Pesic

Public relations: Natasa DimovskaMarketing manager: Ivona Josifovska

Assistent: Stojne DanilovaLogistics manager: Ana Petrova

Finance 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: 17Date: 07.04.2008

IT IS DISTRIBUTED FOR SUBSCRIBERS ONLY

FRONT PAGE PHOTO:

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, Aneta

Menoska, 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

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

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

BRITISH BUSINESS GROUP IN OUR

COUNTRY CELEBRATES ITS ANNIVER-

SARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 - 9

MACEDONIAN INSURANCE MARKET IN

EXPANSION ................................8-9

ILIRIKA FUND MANAGEMENT ADSKOPJE . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. 10-12

berzNIK, THURSDAY, FRIDAY, SATURDAY...............................................13-15

WEEKLY MAGAZINES..... ... ... .. ... ... .. ..16

WEEKLY REVIEW OF THE MACEDONIANSTOCK EXCHANGE. . . . . . . . . . . . . . . . . 17-19

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MSE investors are expecting the outcomeregarding NATO, write today`s daily newspa-pers in their stock exchange reports. Accordingto brokers and analysts, it would be unfavoura-

ble for Stock Exchange should this country failsto join NATO, but if this is the case it won`t col-lapse, Utrinski vesnik informs. According toAleksandar Manev, Chief Executive Officer at Ili-rika Fund Management, the current positive va-lues of MBI-10 is being sustained by the domes-tic companies which are "getting a position" inexpectance that the situation will be changedand the trade will be intensified after the eventu-al NATO accession of the country. The foreigninvestors won`t disappear, and there is the sup-port from the domestic companies which are notin a bad position. In case this key issue has po-sitive outcome, the brokers are expecting eu-phoria in the trading in shares - Drastic changeson the Stock Exchange may be expected. The

indices would go up, as well as the share prices.Both the foreign and the domestic investors arewaiting for political decision for the time being",claims Gjorgji Paleski, Chief Executive Officer ofPostel Broker.

Experts explain that influence of the foreigninvestors intensified last year when the Macedo-nian Stock Exchange was making highest prof-its. In that period, the Slovenian and Croatian in-vestors were showing greatest interest for ourStock Exchange. Macedonian Stock ExchangeIndex, MBI-10, yesterday went up for 2. 65 per-cent. The Stock Exchange gained overall turn-over of around 57 million denars.

All newspapers write about the news on

petrol going down in price for one denar. Accor-ding to yesterday`s decision of the Energy Re-gulatory Commission, there is price reduction ofthe refinery and the retail prices of the oil deriva-tives by 3.05 denars i.e. 3.35%. The new priceof motor petrol MB-96 is MKD 69.50 a litre, EU-ROSUPER-95 will be sold for 66,50 denars a lit-re, while EUROSUPER-98 will cost MKD 67.50a litre. The new retail price of the eurodiesel (D-E4) will cost MKD 36.50 a liter, and is 2.50 de-

nars lower a litre compared to the price of die-sel-E3.

Today`s issue of Nova Makedonija informsabout the intention of AD Skopski leguri to enlar-

ge the business with a third stove, which wouldmean increase of the employees` number. Forthat purpose, the company has requested logis-tics support by the Government, similar to thatof Mittalsteel, where the Government has anno-unced buying 100 wagons in the Railway forcompany`s operation.

All companies were offered to purchase thenight surpluses of power, Vice-Prime MinisterZoran Stavreski stated for the newspapers, afterthe accusations by the big consumers, address-ed to the Government, that only Silmak had re-ceived the authorized position of buying the sur-pluses of energy in the night hours. Some didnot have technical support to accept the surplu-ses, and some had already signed contracts on

power supply with other traders. But, if in futurethere is an interest from other companies and ifthere are night surpluses, they will get them -Stavreski explains. The big consumers say theGovernment`s offer came after they signed thecontracts with the traders.

Today`s Spic informs that starting today themilk and cooking oil will be selling by the old pri-ce from last week when they were cheaper by 5to 10 percent, and the bread will keep the priceof 20 denars until the end of the month. This iswhat the producers, traders and the Govern-ment have agreed on the meeting of Committeeon Price Observation yesterday out of a reasonthat the new prices caused big reactions among

the citizens, who spent most of the domesticbudget on food.Farmers from Bitola blocked dairy Ideal Sip-

ka and they want their money, Vreme informs.Unsatisfied with the purchase price, a monthago they stopped the cooperation with this dairyindustry and transferred into the larger competi-tive dairies Swed milk and IMB. Farmers accusetheir milk is paid to them at the price of 22 de-nars per litre although it was agreed to be paid

at 29 denars per litre. In the current dairies thefarmers are paid at a purchase price up to 30denars. Moreover, Ideal Sipka daily purchasesaround 70,000 litres milk, and strategic partner

is the Croatian industry Dukat.Daily newspapers also inform about enrich-ing of the production palette of Zito Luks with thenew special breads - bio integral and Frenchbread. The price of this type of breads duringthe promotional sale period will cost 26 denars.The bio integral bread belongs to the group ofbreads produced from different cereals such as:rye bread, dietary, corn and mixed bread. Theprice of these products today is cheaper for onedenar. The price of the most popular bread pro-duced from white flour remains the same 20 de-nars.

Serbian company for production of milk anddiary products Implek plans to invest 10 millioneuros this year to improve the milk production.

The money will be invested to reconstruct theproduction plants, to renew the equipment formilking, and the equipment for food production.In fact, the investment purpose is to improve thequality of the milk, i.e. the label extra class do-esn`t not bring 60% but 90% of the purchasedmilk and that this quality is needed in order toexport the milk in the European Union. Lastyear, Implek became owner of MMB, while own-er of Implek is the Dutch group Danube Foods.

In today`s Vecer one can read that the rea-son for the hydropower station Vrutok from to-day to enter a phase of regular revisions is ser-vice, and not a defect. As AD ELEM informs, thepower station experienced technical difficulties,

but as spokesperson of ELEM, Mirce Kotevski,stated the problem would be resolved in the fa-shion of regular overhauls and revisions. - Oneblock transformer from the power station Vrutokhas been sent to maintenance in Skopje and ac-cording to the preliminary information, there isno serious problem and the malfunction will besoon removed - Kotevski said.



1. PETROL DOWN ONE DENAR, DIESEL REDUCED FOR 2, 5 DENARS (*****)2. STOCK EXCHANGE INVESTORS EXPECTING THE NATO OUTCOME (***)

01.04.2008 TUESDAY

DNEVNIKp.1 EITHER WHEAT FROM THE RESERVES OR BREAD FOR A

PRICE OF 30 DENARSp.7 STAVRESKI: SILMAK IS NOT PRIVILEGED FOR ELECTRICITYp.8 THE CITIZENS CAN ASK FOR A REFUND FROM THE TELECOM

AND ESMp.8 HPP VRUTOK SHUTS DOWNp.8 DIESEL CHEAPER BY 2.5 DENARSp.8 THE DAIRYMEN PROTEST IN FRONT OF IDEAL SHIPKAp.8 SKOPSKI LEGURI TO PUT THE THIRD FURNACE IN USEp.9 ZITO LUKS LOWERS PRICESp.9 EITHER WHEAT FROM THE RESERVES OR BREAD FOR A

PRICE OF 30 DENARSp.9 BITOLA MILK WITH A PRICE OF 39 DENARS

UTRINSKI VESNIKp.8 MBI 31.03.2008p.8 PETROL DOWN ONE DENAR, DIESEL REDUCED FOR 2, 5

DENARSp.8 STOCK EXCHANGE INVESTORS EXPECTING THE NATO OUT-COME

p.8 OIL UNDER $105 ABARRELVECER

p.6 HEC VRUTOK UNDER REPAIRS

p.6 EURODIESEL TO COST MKD 63, 5 A LITERVREMEp.6 IDEAL SIPKA BECOMES THE BIG BOSS WITH OUR MONEYp.7 COMPANIES RECEIVE OFFER ON THE NIGHT POWER

VESTp.3 PETROL DOWN ONE DENAR, DIESEL CHEAPER FOR 2, 5

DENARSNOVA MAKEDONIJA

p.5 SKOPSKI LEGURI TO EXPAND THE BUSINESSp.5 BIO INTEGRALAND FRENCH BREAD WITH REDUCED PRICESp.5 INVESTORS` HOPES RISE WITH THE NATO SUMMITp.5 IMPLEK TO INVEST 10 MILLION EUROSp.5 THE PRICES OF THE OIL HAVE DROPPED TO 105 DOLLARS

PER BARRELSPIC

p.1 MILK AND COOKING OIL BACK WITH THE OLD PRICESp.8 MILK AND COOKING OIL BACK WITH THE OLD PRICES

p.8 LOT OF EMPLOYMENTS IN SKOPSKI LEGURI NEXTYEARp.8 VRUTOK GETS FILLED, THE HYDROELECTRIC POWERPLANT ON REPAIR

p.8 FUELS DEPRECIATEp.8 GOSHEV: INFLATION UP TO 7%

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D A ILY S TOC K E XC H AN G E RE V IEW O F PR IN T ME D IA E V EN TS 7Date 07.04.2008 number 17 berzNIK


02.04.2008 WEDNESDAY

DNEVNIK

p.1 THEY HAVE WHEAT, BUTTHEY WANT MOREp.6 MBI 01.04.2008p.6 THEY HAVE WHEAT, BUTTHEY WANT MOREp.6 PRODUCTION GROWTH IN OHISp.6 CROATIA HAS AN EYE ON QBE AND TABAKp.6 SALE OF TOBACCO FACTORY IN PRILEP IS CERTAIN

UTRINSKI VESNIK

p.8 CURRENCY RESERVES COVER 3.5 MONTHS OF IMPORT,ARE THEY ENOUGH?

p.8 MBI 01.04.2008p.9 MISKOVIC BUYS GENEKS FOR EUR 150 MILLION

p.9 GRANIT TO BUILD IN UKRAINEVECER

p.6 INVESTORS PLAYING FOR TIME IN THE OPENING THREEMONTHS

p.7 MISKOVIC BUYS KONTINENTAL HOTELVREME

p.7 THE INFLATION WENT OVER 10 %p.7 THE INFLATION ON SCALE

VEST

p.8 CROATIA INSURANCE ANNOUNCED ENTER IN MACEDONIANOVA MAKEDONIJA

p.5 THE MILK RETAINS ITS OLD PRICE; THE PRICE OF THEBREAD REMAINS THE SAME

p.5 ENERGY REGULATORY COMMISSION WITH 12.53 % MOREPROFIT THAN PLANNED

p.5 EURO ZONE INFLATION HITS RECORD HIGHp.5 GAZPROM INVESTS 85 BILLION US DOLLARS IN PRODUC-

TION OF GAS

p.5 THE PRICE OF THE OIL BENEATH 102 US DOLLARS A BAR-RELSPIC

p.8 NO CHEAP FOODp.8 SEVEN TIMES PURER DIESEL

The biggest Croatian insurance companyCroatia Insurance will expand its activities inMacedonia and the other countries in theregion, today's editions of the daily newspapers

inform. According to the news published in theCroatian daily Poslovni dnevnik, CroatiaInsurance announced establishing of companyfor life insurance during the year in Macedonia,and such companies will be also established inMontenegro and Serbia. Representatives of"Croatia Insurance" do not wish to reveal thename of the Macedonian insurance companythat they plan to take over, even though theprint media think that it would be QBEMacedonia or Sava Tabak. In the same time,Croatian company intends to make an offer forbuying of Albanian Insig, which operates inAlbania, Kosovo and part of Macedonia withAlbanian majority population.

More than half of millers who receivedcheaper state wheat still fail to pay and pick thegoods from storage towers, Dnevnik informs.This is one of the reasons why the Governmentplans to give bread producers new quantities ofwheat from the commodity reserve. Accordingto the newspaper, Bakers do not deny that theystill did not pay and pick the wheat, and disso-ciate themselves with the agreement signedwith the Government. Actually, neither millers,nor oil producers want to explain why thedemanded urgent wheat and crude oil if they

did not need it, but they are unanimous that ifthey do not receive new quantities from com-modities, in one month they are going toincrease the price of bread at 30 denars.

Utrinski vesnik conveys the various atti-tudes from the several-month debate regardingthe question whether Macedonia has enoughforeign currency reserves. Their level at the endof 2007 provided coverage within a period of3.8 months of import, and dropped on 1.53 bil-lion euros at the moment, which provides cov-erage within a period of 3.5 months. Accordingto Governor Petar Goshev, reduction is a resultof higher projected import for 2009. FormerMinister of Finance Nikola Popovski feels thatthe current coverage of 3.5 months importmeans that the Government continues with badbehavior towards currency reserves and fails tomaintain minimum required level, 4-month cov-

erage. Some economic experts have differentattitude. According to Miroljub Shukarov,Professor at SEE University, the level of cover-age is quite enough. It is not recommended tothe state to keep currency reserves over 4-month coverage, because in this case thoseassets are less employed, which means thatstate's potentials are closed, Shukarovexplains.

The newspapers also inform for the 50%production growth in the company Ohis.According to the management, conditions in the

company are getting settled, but still far fromstabile and final solving of cumulated problems.Final goal of the new management is selling ofthe company.

Tobacco factory in Prilep will receive itsnew owner by the end of the year. According tothe statements of CEO Toni Dimitrievski,although the company is in debts, many foreigninvestors showed interest for investing in thecompany. The company closed last year withloss of 9 million euros, which is less than theyear before. More than 45% of the capital isstate owned, and principal is owned by 2,800minor shareholders.

As of this month, the construction company"Granit" starts working in Ukraine, the printmedia inform. It is a matter of reconstruction ofthe highway Kiev-Chop, investment estimatedon around 53.4 million euros. For that purpose,

300-400 workers will be hired from Macedonia,who are supposed to work in Ukraine in thenext 30 months.

The news about the sale of the largestcompany on the territory of the former SFR ofYugoslavia, Geneks-Belgrade, which was soldfor a sum of 1 billion euros, were the most top-ical among the news from the region. Just forcomparison, everything that had been sold sofar in Macedonia, starting from firms to farmingco-operatives and factories, was sold for 1.5 bil-lion euros.

1. CROATIA INSURANCE ANNOUNCED ENTER IN MACEDONIA (****)2. THEY HAVE WHEAT, BUT THEY WANT MORE (**)


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BRITISH BUSINESS GROUP IN OUR COUNTRY CELEBRATES ITS ANNIVERSARY

MACEDONIA IS STABILE AND INTERESTING

BUSINESS DESTINATION

Macedonia didn`t get invitation to join NA-TO, however this will neither change themind of the foreign investors to invest in

the country, nor terminate the business relati-ons of the international companies already pre-sent in this country. The foreign businessmenrecognize that Macedonia is a politically stabilecountry with economic growth.

- According to Power, NATO was a militaryorganization, while the business sector was thefactor that triggered prosperity. We already

know there is business stability in this region.The leading people in the world confirm the po-litical stability had been achieved here, and we,as a business community, recognize this as sat-isfying guarantee. It doesn`t matter to us whet-her you were or were not invited to join the Alli-ance. This doesn`t mean nothing to the inves-tors that are already here, British AmbassadorAndrew Key told the press-conference on the

occasion of the second anniversary of the Bri-tish Business Group in Macedonia.

- I do hope that the contribution the BritishBusiness Group has to offer will improve thebusiness climate in Macedonia and serve as asupport for the efforts of the Republic of Mace-donia for EU membership. Another significantthing for me is the fact that the partnership alsoopened possibilities for the British companiesthat have long-year experience in working inEU to share their practice-emphasized Ambas-

sador Key.

- The British Business Group is active inMacedonia with the support of the British andMacedonian Government, which are aiming atestablishing relations between the Macedonianand the British businessmen and promoting theways of improving the overall investment clima-te in Macedonia in the inertest of both countri-

es. The conference was chaired by the Presi-dent of the British Business Group, Ray Power,who, regarding the participation of the British onthe Macedonian securities market, says that theBritish see Macedonia as a country with manyopportunities that will additionally increase withthe trading in shares. Power comments the cur-rent stock exchange index fall, which is the big-gest so far, as a psychological moment that " Ibelieve it will be resolved."

- The people that aren`t well acquainted are

selling their shares even for up to 10 percentlower prices in expectance for collapse due tonot getting invitation for NATO, and such collap-se would surely not going to happen. To be hon-est, I regard this course of events on the StockExchange as short-termed and a result of theemotional reactions of certain companies.

As a confirmation for the results achievedby the Macedonian Government in the area of

We have 99 year investment i.e. a long-year and enormous investment. The

thing we find important is not the polit-

ical situation, but the safety. We have

no interest in the political establish-

ment in power. We regard the political

situation in Macedonia as stabile and

that is our long-term assessment.

Macedonia is the 51st country which

Johnson Matthey has settled in and we

haven`t made a mistake so far, the

regional Director of Johnson Matthey,

Collin Geoffrey, states for Berznik.

Sigal has been present on the Macedonian insur-ance market since October 2004. Their 2005 premi-um incomes got at the amount of 2, 3 million euros.In 2006, SIGAL Macedonia increased the incomefrom premiums by 70 percent and reached four mil-lion euros. It has 50 officers on 21 locationsthroughout Macedonia with over 140 agents serv-ing the client.

Last week, Uniqa Group Austria, becamean owner of 45, 6% of the shares of SI-GAL Holding, which group SIGAL Mace-

donia belongs to. With this change of the own-ership structure, Uniqa Group Austria has beco-me the largest individual shareholder in Sigal.

The settlement of Uniqa Group Austria into

Sigal Macedonia opens a new chapter in thework of this insurance company on the Macedo-nian market. This cooperation united the best ofboth companies. On one hand, Sigal contribu-tes with its great management and the profoundknowledge of the Macedonian insurance mar-ket. On the other hand, Uniqa Group Austria isbased on its tremendous international experien-ce and financial stability. This combination sho-uld bring rapid development and stabile positio-ning on the Macedonian insurance market.

- Macedonia is a market with enormous po-tential for insurance business development. Ingeographic terms, Macedonia is situated in theheart of South East Europe and according to

our recent analysis, it will be one of the bestemerging markets. This is due to the qualitycadres and the extraordinary skills they own, aswell as the enormous will of the people fromMacedonia to create safe and stabile future.

We are assured we will contribute to theentire development of this country through ourexperience and financial stability, AndreasBrandstetter, Management Board member ofUniqa Group Austria, told the conference on theoccasion of the entry of the new insurance com-pany.

- Uniqa Group Austria has tremendous ex-perience in all insurance sectors, especially inthe health insurance, which gives us the lead-ing place in Austria.

MACEDONIAN INSURANCE MARKET IN EXPANSION

UNIQA GROUP AUSTRIA - BIGGEST

SHAREHOLDER IN SIGAL

8 D A ILY STOC K EXC H AN G E R EVIEW O F PR IN T M EDIA EVENTSberzNIK number 17 Date 07.04.2008

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attracting foreign investors, the British hosts po-inted out the investment by Johnson Matthey inMacedonia and recommended to the othercompanies to follow its example. The head ofJohnson Matthey for Macedonia, Colin Geoff-rey, says that not getting invitation for NATO isas much disappointing and absurd for them asit is for the Macedonian nation, since the Mace-

donian soldiers are fighting arm to arm with theBritish forces in Afghanistan more than the oth-er countries that have been member countriesfor a longer period of time. Still, not joining NA-TO has absolutely no influence on JohnsonMatthey`s business.

- We have 99 year investment i.e. a long-year and enormous investment. The thing wefind important is not the political situation, butthe safety. We have no interest in the politicalestablishment in power. We regard the politicalsituation in Macedonia as stabile and that is ourlong-term assessment. Macedonia is the 51stcountry which Johnson Matthey has settled in

and we haven`t made a mistake so far, the re-gional Director of Johnson Matthey, Collin Ge-offrey, states for Berznik.

The business forum was also attended bythe Minister of Finance of the Republic of Mace-donia, Trajko Slaveski. He expressed hope thatin future the British Business Group would be-come one of the strongest supporters of theMacedonian business climate and one of thepromoters of the investment opportunities ofthis republic.

- The activities of the Group are aiming tow-ards creating a favorable business climate for

the investors in order to for them to feel safe,enjoy protection of their rights and feel a climatethat is competitive in relation with the other re-gions-said Slaveski. He regarded the things be-ing done by Macedonia together with its part-ners from the interested investor-countries asequally important as the accession to NATO.

The conference also scrutinized the negoti-ations with IMF for the inflation movement, on

which occasion the Minister of Finance pointedout the micro stability as the most important fac-tor for the favorable business climate.

-These are decision-making factors for theinvestors. Good news is that the base inflation,which shows the movement of the other prod-ucts other than the food and energy, is decreas-ing, which means that the measures being car-

ried out by the competent instructions are giv-ing results-he pointed out and warned thatshould the upward trend of the energy pricecontinues, the Government will have to takemore serious measures for conserving energyand continue protecting citizens`standard,especially the incomes of those with lowincomes.

Minister Slaveski also pointed out the activ-ities that contributed to the development of theMacedonian economy in general and concrete-ly in the financial sector.

He regarded last year as the most success-ful for Macedonia from its independence both inrespect with the participation of foreign invest-

ments and in respect with the inflation move-

ment, salaries increase and interest ratesreduction. He also emphasized the Govern-ment`s efforts for overcoming the barriers forrapid exist from the market, as well as for therapid entry, given the fact that nowadays a com-pany can be registered within few hours andthere are results achieved in the field of liquida-tion of companies. At the end of his addressing,

he turned to the capital liberalization, which hecharacterized as significant not only for meetingthe criteria of Brussels, but also for improvingbetter economic conditions and attracting moreforeign investors.

The real estate market liberalization pro-vides equal treatment both for foreigners andMacedonian citizens and opens additionalopportunities for attracting foreign capital andintensification of Macedonia`s economic devel-opment. This proves that the MacedonianGovernment has open approach towards theinitiatives for improving the business climate inthe country that are primarily coming from theprivate sector-he highlighted.

K.S.

Two leading companies cover 90% of the market- The leasing companies in Macedonia have smallest market coverage in the region, which

is due to the fact that the Macedonian private sector is at great extent composed of banks andvery small part belongs to the insurance companies, while the leasing companies cover only 1percent. Namely, Macedonia has six registered leasing companies, two of which cover 90% ofthe market, stated Gjorgje Voinovic, member of the Management Committee of one of the mostfamous leasing companies in Europe-Hipo-Alpe Adria.

- The finances collected from leasing contribute to the countries`development. The leasingfinances are the target of all market segments in terms of long-tern financial needs in favor of theinvestment trading-explained Voinovic.

- The lasing is important as it offers flexible services without mortgages and is focused onmeeting new, modern and advanced financial segments. This has resulted from the economic

globalization and the leasing is precisely the one that can solve the current issue in the econo-my-he added.

However, there were remarks that the Central Register of Macedonia has data for significantimproving of the finances form leasing after Hipo-Alpe Adria had entered the market. Namely, inDecember 2006, the overall leasing market had value of 34 million euros to reach around 50 mil-lion euros the following year. This company has already prepared a financial framework for eco-nomic development support, by the means of promotion of the leasing services in all market seg-ments and by the means of including i.e. inviting the competitions, which will impose new stan-dards.

What we are talking about here is an addi-tional health insurance that will be offered onvoluntary basis, thus the citizens will be provid-ed with additional opportunity for covering their

expenses for health protection services.At the same time, it serves as a develop-ment for of different types of insurance policiesfor motor vehicles, property and other individualinsurances.

The Macedonian insurance market hasenormous development potential.

SIGAL wants to be part of this developmentand give contribution to with its regional knowl-edge and experience.

SIGAL will offer new insurance products,which will be real market refresh, stated theleading people in Sigal and UNILJA.

- Sigal Holding is one of the younger insur-ance companies on the Macedonian market.Our priority is focusing on our clients on theMacedonian market, and their trust in us is our

great satisfaction, stated Avni Ponari, Presidentof Sigal Holding.

- Macedonia remains one of the most

important markets for SIGAL, and our goal is ina very short period of time to grow into one ofthe Macedonian insurance companies with thebest services on the market, says GeoffreyGriffin, President and Chief Executive Officer ofthe Albanian-Macedonian entrepreneurshipfund AAEF, one of the shareholders in SIGAL.

In Albania, SIGAL is the largest and mostactive insurance company with 28% marketparticipation in the past year.

Sigal Holding was founded in March 2007by merging the four already existing compa-nies, Sigal Non Life Insurance& Reinsurance,Igal Life in Albania and Kosovo and SIGALMacedonia.

Sigal has been existing on the Macedonianinsurance market since 2004. The income from

policy premiums in 2005 was 2, 3 million euros.In 2006, SIGAL Macedonia increased the pre-mium income by 70% to reach 4 million euros.The company owns 50 offices on 21 locations

throughout Macedonia and the clients areserved by more than 140 employees.


Uniqa Group Austria reaches premiumincome of 5, 2 billion euros as one of the lea-ding insurance companies in Central andEast Europe. Besides in Austria, the compa-ny is also present on 19 other insurance mar-kets like Croatia, Serbia, Bosnia and Herze-govina, Monte Negro, Albania, Romania, Bul-garia and Kosovo In Austria, UNIQA parti-cipates with 20% on the entire insurancemarket and with over 50% on the health insu-rance market. Last year, UNIQA Group sold12, 5 million insurance policies. The grouphas 17.500 employees and a preliminarygross profit of 340 million euros in 2007. Thecompany owns capital of over 22million eurosand its financial power is reflected in the Arank given by Standard&Poors.

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ILIRIKA FUND MANAGEMENT AD SKOPJE

Macedonia has solid funds, comparing theirresults with results of funds in the region and withresults of stock exchange indexes. Although, thereare falls, our funds managed to do much.

S

lovenian Ilirika DZU Ljubljana is the firstto establish Assets Management Fund -

Ilirika Fund Management Fund. The com-pany was established in July 2007 and startedwith two investment funds, Ilirika SEE and IlirikaGRP, which differ in the structure of their invest-ments, i.e. from the aspect of countries in whichfunds can invest.

Gordana Godgo - Ilirika SEE PortfolioManager, explains that they fulfilled legal condi-tion.

-Both funds were to collect 500,000 euroseach within three months from the release ofthe public announcement (20th of November2007) up until 20th of February. Ilirika SEEachieved it sooner, and Ilirika GRP failed. Yet,two funds, and there is third as well, Inovo, withBulgarian capital, probably were too much forcurrent constellation in Macedonia. People isnot that educated, everybody waits on funds,but they do not decide to invest easily. So it

happened, on of the funds to fail collectingrequired capital.

According to Godgo, the second conditionthat was to be fulfilled is within terms of 4 fourmonths from the releasing of the publicannouncement, was to coordinate with theprospect of each fund. This legal frame is mini-mum, i.e. maximum of the portfolio to be invest-

ed in deposits and assets. This means that asopen action funds, legally we are not allowed tokeep more than 25% in cash and deposits.Because the constellation on the market in thelast two months, since we started working wasnot favorable for us, not only for Macedonia, butthe region and world markets in general, there-fore, we kept cash as much as we could. Thismeans that we managed to amortize falls ofshares. But the law is a law and we were ob-liged until 20th of March to reconcile, and wehad 24% deposits. By this step Ilirika SEE isexposed in shares, and automatically every ne-gative or positive movement of shares, affectson movement of price of the portion.

Structure of Ilirika SEE

Ilirika Southeast Europe (SEE) fund is limit-ed within the frames of the entire Balkans - for-mer Yugoslav countries, Bulgaria, Greece,

Rumania, Austria, and Poland, Czech Republic,Russia and Turkey.

-The strategy of Ilirika SEE is to be themost exposed in Macedonia, Godgo says.

-Almost 50% of investments are in thiscountry. We invested 13% in Croatia, 4.5% in

Russia, 2.6% in Serbia, 2.3% in CzechRepublic. From the list of countries where wecan trade, i.e. buy shares, we have still notinvested in Turkey, Greece, Rumania andBulgaria. There is diversification and it is theexact factor that amortizes recent falls, espe-cially the record breaking fall of MSE indexThursday (3rd of April). As an example, if thatday index marked 8.4% drop, Ilirika SEE por-tion marked 3.87% drop. The fall is reflection ofthe 50% openness in Macedonia, but the fall issmaller than the fall of index. That is amortized.

For now, we are defeating the index. That isthe major goal before all - to win. That is thebenchmark. Ilirika SEE considers MBI-10 asbenchmark. Up until now we are defeating theindex, says Godgo and adds: This means that ifany investor invests in portfolio consisted ofshares that constitute stock exchange index, inthe same proportion as the index, he wouldloose more compared to investing in Ilirika

FUNDS DEFEAT

STOCK EXCHANGE INDEX

For now, we are defeating the index and that is the main goal. That is a benchmark. Ilirika SEE considersMBI-10 as benchmark. Up until now we are defeating the index. As an example, if the index goes below

8.4%, portion of Ilirika SEE declined 3.87%.

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SEE. I am not saying that he would profit more,because we are loosing anyway, but he wouldloose less than in the index itself.

Godgo explains that beside mentionedcountries, the Fund invested in shares inKomercijalna Banka, Fersped, Beton, Replek,Alkaloid and INA from Zagreb. The first ten are

companies from Macedonia and Croatia.

-This is the current position of Ilirika SEE. InCroatia, in contrary to our country, there wereno expectations related to the stock exchangesince they are going to be extended invitationsto join the Alliance, but also in Macedonia,many Croatian companies announced favor-able financial results. Croatian stock exchangealso suffered significant correction, by the fall ofshares of their companies, in contrary to theincrease of their financial results, so automati-cally those companies become cheaper andunderestimated. The same situation isMacedonia and Serbia. So, when sentiment of

investors will be changed, this literally indicatesa moment of no danger, no political risk andpeople simply turn to funds by themselves andstart buying. The same is expected inMacedonia, Serbia and Croatia. There is poten-tial on MSE, and that is a fact. Which can not bedisputed by anybody, Godgo underlines.

What happened on Thursday?

The fundaments on middle and long term,after the crash, define the prices of the shares.This has been announced by the people fromthe Stock Market (the Board of directors hasannounced a report on their web page). It is

normal that the security questions and the polit-ical stability should not be undermined. Whathappened on Thursday on the Stock Market,explains Maryan Ivanovski, analysts in Ilirica.Simply, the perception for the risks from politicalinstability has changed drastically. A lot ofinvestors expected admission in NATO, andthat it would positively influence on the growthand on the perspective of the businesses.However, the expectations of the investorsautomatically changed after the negative deci-sion. They, especially the sensitive ones,believed for a moment that the blackest scenar-ios are possible - a negative growth in the busi-ness sphere. The Stock Market is sensitive on

bad news related to the political conditions. But,I believe that, although Macedonia has notreceived an invitation for admission in NATO,the positive signals from USA for support of thecountry, which has its own strategic position onthe Balkan and in which the USA see a strate-gic interest, have rejected the blackest scenar-ios - riots in the country. In other words, theprobability of their accomplishment is verysmall. This can also be seen from the next trad-ing day at the Stock Market, when the enthusi-asm, or as I should say the fear of the investorshas waned. I believe that the announcement forthe new agreement with the USA, as a secureshelter for Macedonia, will remove all the dilem-mas in relation to accomplishing the black sce-narios, which for some investors pushed thelimits to - war. Although they are sensitive onthese questions, I think that on Thursday whenthe investors showed with enormous quantities

of lowest sale prices will not repeat again. Ifwee see the situations more realistic, greaterdanger according to my opinion, comes fromthe global economic crisis. This is more deci-sive for the region and through that forMacedonia itself. Personally, I do not expectbigger falls, but there will be some stagnation

until the moment when the situations will clearup, until the new investment cycle on global, onregional and even on local level, after which wewill have big positive results. During the crisis,besides these announcements of the analystsand the experts from the branch, Ivanovskipoints out one particular comparison. Howmany investment funds have succeeded to pro-tect their investors can be seen very well fromthe following example: the Stock Market crashwas for 8.4%, and our funds were falling forabout 3.5%. If the crashes from the beginningof the year of the Macedonian index and thecrash of the Ilirika funds are compared, one caneasily see that they are still relatively smaller

from that, which could be lost by an investor, ifthey have invested in the portfolio which theStock Market represents itself. The reason forthis positive result, although we are speaking

for crashes, is that the fund has an active poli-cy of investments. This is an advantage for thesmart investments. We are constantly monitor-ing, understanding the when to buy, when tosell, we are thinking how to diversify the risksbetween the countries between the companies,between the various industries. I think that

when the dynamic of the role of the compara-tive funds from the region and the dynamic ofthe role of the Stock Market indexes are com-pared, we are achieving success. Macedoniahas real solid funds, comparing their resultsfrom the results of the funds from the Regionand with results of the Stock Market indexes.Although there are crashes, we managed to doa lot, estimates Ivanovski.

Ilirika -Global emerging markets

Ilirika GEM invests its assets in severalcountries throughout the world, above all in thedeveloped countries like USA, Canada,

Australia, EU, Japan and the developing coun-tries such as Brazil, Russia, India, China andother countries throughout the world.

ILIRIKA SEE (29.02.2008)

Structure according to the countries:

10 biggest investments:

On the chart, the light blue line is the index, and the other line is Ilirika SEE portion

MacedoniaCroatiaRussiaSlovenia

Czech RepublicSerbiaAustriaHungary

Beton

INA

Adris Grupa

Alkaloid

Komercijalna banka

Hrvatski komunikacii

Czeshko elektrostropanstvo

Makstil

Zemjodelski kombinat Pelagonija

Integra Group

Rest

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According to , portfolio manager and amember of the Board of Directors, the thing thatmust be achieved when talking about invest-ment policy of the Fund itself is its great risk dis-persion. The basic thing that every citizen of theRepublic of Macedonia should know is thatinvesting in a single company in our countrycarries much greater risk than investing in, let`s

say, five or ten companies in which a citizen caninvest the money as an individual investor. Inthis case, the investment funds, according tothe Law on Foreign Currency Operations,except for the banks with greater authoriza-tions, insurance companies, pension funds andinvestment funds, all others have no license forinvesting abroad.

Precisely this benefit, since we startedworking on November 21 last year, preventedmajor falls of the values of Fund`s share. All inall, we have protected the assets being deposit-ed by the investors in the funds, unlike the nat-ural persons that invested on the Macedonian

Stock Exchange individually. That is the mainadvantage which largely reduces the losses byless than 10% of the funds, unlike the losses ofindividual investors which varied among 30 and40%.

Another important thing is that the invest-ment policy is being created by portfolio man-agers and analysts, professionals who relyupon fundamental and technical analysis,which the common citizens are not familiar with,since they can`t afford wasting time in followingthe stock exchange movements on daily basisor to go to brokerage houses, sign warrants etc.All of these formal aspects will be overcome

with the investment fund. The only thing theywill have to do is to withdraw part or all of themoney from the Fund, wherever there is a needfor such thing.

I do hope, says Lazarevski, that in futureour citizens will understand the investmentfunds are one of the most dominant forms ofinvesting in the world.

The investment policy practiced by GEM atthe time serves the purpose of increasing thenumber of shares. It makes use of the eventswith the American market-the recession, whichprompted significant fall of the shares and

through selling and buying in case of such po-tential fall on all markets, the fund tries to gainas higher as possible profit or appreciation ofthe share value.

Regarding the industries that are investedin, there is also great risk dispersion. In this sit-uation, there are other factors for risk reductionsuch as in the oil industry, banking, construc-tion, health, telecommunications, food and carindustry, insurance companies and a number ofservices.

Important thing worth mentioning is that theFund, since it doesn`t act as legal person, is nota subject to taxation, explains Lazarevski. It isdifferent from any natural person in theRepublic of Macedonia, which has to pay taxesafter each sale. In our fund, this money is rein-vested until the member decides to quit fromthe fund. However, the important thing at the

moment regarding the money invested in theFund, is that no matter how many times themoney has been fructified, the part that shouldgo for taxes is being reinvested.

Another crucial thing, emphasizes Lazarev-ski, is the fact that the funds take very low bro-kerage commissions, both in the country and

abroad, since what we are dealing with here isa large amount of money, so they get a numberof benefits. Furthermore, the assets beingused, we are referring to a professional portfo-lio management that uses sophisticated techni-cal and fundamental analyses, enables reac-tions on a certain market at any time for the pur-pose of buying the appropriate instrument. Toconclude, we have much clearer insight into thesituation than the common citizen.

The fund suggests that every person, whohas available money assets and wants to investthem into securities, should invest them pre-cisely in the funds managed by Ilirika Fund

Management, bearing in mind that the personalways gets to choose in which fund he willbecome a member - there are two funds,

depending on the preference regarding the riskand the incomes. As far as the working of theinvestment funds is concerned, there is a pos-sibility for prevention against great falls, saysLazarevski.

The dispersion in the pervious months hasproven the superiority of the investment

Funds in relation with the individualinvestors. I would like to point out the fundsmanaged by our company, which had suffereddepreciation of only 6% to 7% since the begin-ning of the year to date. Just for comparison,the funds in Croatia and Slovenia suffered a fallfrom 15% to 30% in the same period. But, whatis more interesting is the fact that the naturalpersons that invested on the stock exchange bythemselves share the same fate as theMacedonian and the Croatian indices that suf-fered more than 35% depreciation.

This basically proves the goal of the invest-ment funds i.e. the company that manages

them-sending professionals for manage theassets of the natural and legal persons, con-cludes Lazarevski.

On the chart, the light blue line is the index, and the other line is Ilirika GEM portion

ILIRIKA GEM (29.02.2008)

Structure according to the countries:

10 biggest investments:

Macedonia

Croatia

Russia

Kazakstan

India

Serbia

Austria

Brazil

Mexico

Rest

AlkaloidKomercijalna bankaHrvatski TelekomunikaciiGranitZIK PelagonijaBetonMakedonski TelekomunikaciiAdrisINAShtrabagRest

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1. THE GLOBAL INCREASE OF THE INFLATION SHOULD NOT CONCERN MACEDONIA (*****)

2. 8.5 TONS OF TOBACCO STOLEN FROM WAREHOUSE OF MAKEDONIJA TABAK 2000 (*****)

03.04.2008 THURSDAY

The start of the negotiations between theGovernment and ICM`s mission is top news intoday`s newspapers. The two digit number ofinflation of around 10.2 percent determined lastmonth will be the main issue to be discussed. The

chief of the mission, Mark Grifits, announced thatall indicators of the macroeconomic and fiscal pol-icy will be analyzed in order to determine whetherour economy is on the right path. Members of ICMwill inspect how the wage and pension increaseinfluence the increased inflation growth in thecountry. On a global level ICM expects lower eco-nomic growth, due to USA`s financial crisis beingassessed as the largest inflation from the periodof the Great Depression last century. If the globalgrowth drops by three or less percents from thepercent of the previous year and the year that fol-lows, a planetary economic crisis might happen, iswritten in ICM`s report transferred by all media.

NATO summit double increased the trade of

Macedonian Stock Exchange, is said in today`sstock exchange reports. The turnover on the totalmarket was 78 million denars, and the most activeshares were the shares of Makpetrol, Komerci- jalna, and Replek. Before the end of yesterday`s

trading day, new owner incested 10 million denarsto purchase 22 percent of the shares of the facto-ry of Veles Kiro Kucuk.

There is a possibility Macedonia to remainwithout food, due to banned import trend of the

domestic agricultural production in the world sincethe global shortage of cereals have appeared inthe world, wrote in Dnevnik`s analysis. The sour-ces` dry up for import of foodstuffs could strike thecountry. Experts warn that the problem can be im-posed very quickly, and the Government also con-firms this danger which was a reason to ban lastyear the import of wheat and corn used as a fod-der.

According to the information of the StateStatistical Office, the retail prices have increasedto 7 percent in February compared with the samemonth, last year. The growth of the costs of livingis a result of the higher indexes of the fruit for 15.8percent, oil derivates for 4.1, oils for 3.6 percent,

services for education and development 1.9 per-cent. The value of the consumption basket of onefour member family for March calculated on thebasis of the retail prices is 12.332 denars and inrelation to the previous month is higher for 1.3

percent.Of great interest for the written media was the

allocation of the state-owned plot of agriculturalland for which domestic companies as well as for-eign companies and citizens have the right for

which can get maximum 10 hectares. The newswhich received attention is that the huntinggrounds in the country will be under concessionfor a period of 20 years being allocated to at least200 concessionaries.

Today`s Dnevnik delivers the news that theconstruction company Beton began setting thecorner stone of the dam Knezevo on the riverZletovska Reka. The public company Zletovicawho manages the hydro system announced thatthe construction of the dam will be finished by themiddle of this month.

The written media deliver also the newsabout the two tobacco affairs. The first refers tothe theft of 90 pallets of crushed and sliced tobac-

cos, valued on 15 thousand dollars from Macedo-nian storehouses, while the second theft inJugotutun from Makedonski Brod, is valued ontwo million euros.


DNEVNIK

p.10 THE IMF EXPECTS SMALL ECONOMIC GROWTH IN THEWORLD

p.10 MBI 02.04.2008p.10 THE INFLATION SHOULDN`T BE IGNOREDp.11 NEW DISTRIBUTION OF AGRICULTURAL LANDp.11 ESM - EVN GAVE TIME TO THE STATE COMPANIESp.11 INSTEAD FOR TEN, LEASE IN DURATION FOR 20 YEARS

FOR THE HUNTING GROUNDSp.11 THE DAM ON "ZLETOVICA" IS BEING CONSTRUCTEDp.11 160 APPLICANTS FOR 140 TRACTORSp.11 ASIA IS PROTECTING ITSELF FROM FAMINEp.11 MACEDONIA CAN BE LEFT WITHOUT FOODp.14 PSYCHIATRIST HAD STOLEN 8.5 TONS OF TOBACCOp.14 TOBACCO AFFAIR DISCOVERED, HEAVY 2 MILLIONS OF

EUROSUTRINSKI VESNIK

p.5 8.5 TONS OF TOBACCO STOLEN FROM WAREHOUSE OF

MAKEDONIJA TABAK 2000p.5 IMF TO CHECK UP THE CONNECTION BETWEEN SALARIES

AND INFLATIONp.8 MBI 02.04.2008p.8 NATO SUMMIT SAVES OHIS AND MB FROM BEING SHUT

DOWN OF POWERp.8 BUCIM UNION WANTS 10 PERCENT, THE SALARIES

INCREASED FOR 20p.9 IMF REDUCED GLOBAL GROWTH ESTIMATION FOR THIS

YEARp.9 TURNOVER ON MSE RAISES TWICE AS MUCHp.9 FILED 5.800 REQUESTS FOR GRANTSp.9 CANCELED THE FIXED CONTRIBUTIONS FOR THE BUDGET

USERSp.9 PENSION AND DISABLEMENTS INSURANCE FUND WITH

PROFIT LAST YEARVECERp.5 THE GLOBAL INCREASE OF THE INFLATION SHOULD NOT

CONCERN MACEDONIAp.6 GRANIT FOUNDED NEW COMPANY

p.6 THE INTEREST FOR THE BROKERAGEp.7 THE MACEDONIAN FARMERS MORE CUNNING THAN THE

NEIGHBORS

p.7 THE TOBACCO PRODUCERS WILL BE THE FIRST TORECEIVE MONEY

p.7 22% OF KIRO KUCUK SOLDp.8 THE PRICE OF THE EGGS HITS 210 DENARS

VREME

p.1 THE GOVERNMENT BLAMES THE FRUIT FOR THE HIGHINFLATION

p.7 THE INITIAL PRICE WILL BE REDUCEDp.6 WE DON`T EAT THE FRUIT, YET, IT MADE OUR LIVES MORE

EXPENSIVEp.6 THE GOVERNMENT HAS NO STRATEGY FOR IMPOVER-

ISHED CITIZENSp.6 TO SUBSIDIZE THE LIVESTOCK

VEST

p.7 GRIFFITHS: THERE IS AWAY TO PREVENT INFLATION

p.10 ASIAN STOCK MARKETS ENLIVENED, THE FEAR IS DISAP-PEARINGp.10 US OIL FIRMS COME UNDER PRESSUREp.14 THEY WILL SPEND MUNICIPAL MONEY THROUGH A BUSI-

NESS CARDNOVA MAKEDONIJA

p.4 THE GUARDS DID NOT MANAGE TO GUARD THE TOBACCOIN MAKEDONIA TABAK

p.4 PAYMENT OF THE SUBVENTIONS FOR THE DELIVEREDTOBACCO

p.9 THE NATO SUMMIT INCREASED THE TURNOVER BY 100%p.9 GRANITTO BUILD A HIGHWAY IN UKRAINEp.9 THE COSTS OF LIVING INCREASED BY 10%p.9 PANIC ON THE RICE MARKETp.9 FALSE EURO COINS SEIZED

SPIC

p.6 DENARS START TO TURN INTO EUROSp.6 PENSION FUND WITH BIG PROFITp.6 JAPANESE TRACTORS TO BE SHARED ON FRIDAYp.6 AUTHORITIES NO, BUT BUSH CAN STOP INFLATION

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1. THE FIASCO ABOUT NATO DROPPED DOWN THE STOCK EXCHANGE INDEX AND PROVOKED PANIC AMONG INVESTORS (*****)2. GOVERNMENT YIELDS TO THE IMPORTED INFLATION (****)

04.04.2008 FRIDAY


- Veto breaks Macedonian stock exchange; Thefiasco for NATO breaks stock exchange index, panicamong investors; Delayed NATO invitation makesmess on the Stock Exchange, are only some of the

topics that were top news in today's papers.Practically, the bad news from Bucharest yesterdaycaused record-breaking fall of the MBI-10 index for8,4 percent comparing to the day before. This fall isactually the biggest fall in the history of this index'sexistence from January 1, 2005 on the MacedonianStock Exchange. The share price of some of the 10most liquid companies has fallen to even more than10 percent, while with some of the companies whichare not in the group of most liquid companies theprice has dropped to over 20 percent.

Nonetheless, on the Stock Exchange was real-ized turnover of 1,2 million euros. Panic and disap-pointment occupied the investors on the stock mar-ket. On the stock exchange yesterday the ones to

sell the most were the foreign funds and smalldomestic investors, individuals actually who got pan-icked from the bed news coming from Bucharest.The Stock exchange's Board of Directors heldimmediate session, after what on the web-site theycame out with calming official statement. Of course,optimists took advantage of this trend buying sharesand expecting the situation to normalize soon.

As Vest reports, the Minister for ForeignInvestments, Vele Samak, says that the question formembership in NATO is not even asked on themeetings with the foreign companes, which areinterested for an eventual entrance to Macedonia.

"It is a fact that the investments in Macedoniawill continue, because NATO is not a part of theinvestors` decisions. The question about NATO wasasked on less than 1% of the meetings with

investors and it never was a factor which affectedthe decisions," Samak stated.

Yesterday's meeting of the British businessgroup in Macedonia was proof for this thesis ofSamak, that the foreign investors in Macedonia donot care about our country's membership in NATO.Almost all Macedonian papers reported that, accord-ing to them, most important is the fact that the coun-try is political stable and marks economic growth. -For us the invitation for membership of Macedonia inthe Alliance has no significance. Surely we wantMacedonia to receive membership invitation, but if itdoesn't, that's not going to affect much on us, RayPower said, president of the British business-groupin Macedonia, on yesterday's press-conference for

the first annual general assembly. According toPower, NATO is military organization, and for the cit-izens' prosperity what's crucial is the economy.

In spite the catastrophic fall of the index, on thestock exchange yesterday was sold 22 percent ofVeles bricks factory Kiro Kucuk. The transaction'svalue is about 10 million denars. This happenedafter the Pension and Disablement Insurance Fundfrom Veles withdrew the request for insolvency offactory Kiro Kucuk. This opened an opportunity forsell of part of the company. Previously was sold thebrick plant in the Czech Republic. The buyer is com-pany Elenica from Strumica in ownership of the

mayor Zoran Zaev's family.Utrinski vesnik reports optimistic news. The

European Bank for Reconstruction andDevelopment approved the credit line of five million

euros through TTK Bank, for financing and develop-ment of small and middle enterprises in our country.This was announced yesterday to economists andbusinessmen from Tetovo region by Adriano Semen,international bank expert and consultant of theItalian EUREKNA, established in Skopje. In TTKBank the European Bank for Reconstruction andDevelopment is a shareholder as of last year, whichis being reckoning among the group of small andmiddle banks in the country but with complete bank-ing service satisfying more than 35.000 clients.

Today's papers report the assessment ofFinance Minister Trajko Slaveski. He pointed outthat Macedonia cannot have any influence on theglobal trend of increase, but the Government has to

protect the citizens' standard. - Nor the finance min-ister, the governor or any former minister in theGovernment can with some measures affect the oilprice, which is importing product, or the food thatcomes from abroad.

Unlike Macedonia, where the oil price increase jeopardizes our standard, in Russia in the periodbetween 2000 and 2007 it has brought incomes big-ger for 475 billion dollars. Russian vice-prime minis-ter Aleksej Kudrin specified that 340 billion dollarsfrom this sum, 72 percent actually, went in the cen-tral budget, and the rest was allocated to the compa-nies.

DNEVNIK

p.12 RECORD BREAKING FALL OF MSEp.12 GOVERNMENT YIELDS TO THE IMPORTED INFLATIONp.12 SAVA TABAK IS NOTON SALEp.13 WE ARE STILL ATTRACTIVE FOR INVESTORSp.17 DETENTION FOR THE SUSPECTS IN THE TOBACCO AFFAIR

OF 2 MILLION EUROSUTRINSKI VESNIK

p.5 WITH OR WITHOUT NATO THE ECONOMY SHOULD FUNC-TION

p.7 SOLD 22% OF THE SHARES OF FACTORY KIRO KUCUKp.7 INVESTORS OF GEVGELIJA SEEK PROFESSIONAL PER-

SONNEL

p.8 THE FIASCO ABOUT NATO DROPPED DOWN THE STOCKEXCHANGE INDEX AND PROVOKED PANIC AMONGINVESTORS

p.8 GOVERNMENT CLAIMS CAN NOT INFLUENCE ON INFLA-TION

p.9 FOR THE BRITISH BUSINESSMEN THE MEMBERSHIP INNATO IS NOT CRUCIAL

p.9 TODAY - NEW TENDER ON LAND LEASEp.9 FIVE MILLION EUROS INTENDED FOR SMALL AND MIDDLE

ENTERPRISESp.9 APPLICATIONS FOR TRACTORS FROM THE JAPANESE

HELP WILL BE OPENEDVECER

p.6 PRESENT BRITISH INVESTMENTS EVEN WITHOUT BEINGADMITTED IN NATO

p.6 FOR FOOD AND DRINKS - 12 322 DENARS

p.6 TOPLIFIKACIJA WITH PROFIT OF 1.9 MILLION EUROSp.7 THE DELAYED NATO INVITATION MADE A MESS ON THE

STOCK EXCHANGEp.7 THE INFLATION UNDER CONTROLp.7 DROP OF THE OIL PRICE

VREME

p.4 THE VETO BREAKS MACEDONIAN STOCK EXCHANGEp.7 HEALTHY LIFE WILL COST US AFORTUNE

VEST

p.7 RECORD FALL OF THE SHARESp.7 JOHNSON MATTHEY: WE ARE DISAPPOINTED, BUT WE

WILL BUILD IN BUNARDZIKp.7 SAMAK: THE INVESTORS DO NOT EVEN ASK ABOUT NATOp.9 SLAVESKI: WE WILL MORE SERIOUS ACTIONS AGAINST

THE INFLATIONp.14 ALITALIA TO GO BANKRUPTp.14 INVESTMENTS WORTH 9 BILLION EUROS IN ELEKTRO-

PRIVREDA SRBIJE

p.14 RUSSIA MADE $475 BILLION FROM THE APPRECIATION OFTHE OIL

p.14 GOOGLE EXECUTIVE POACHED BY EMINOVA MAKEDONIJA

p.1 INFLATION SPIRAL HAS TO BE CURBED INp.6 INFLATION TO DROPTO ONE-FIGUREp.6 AIR FRANCE-KLM`S BID TO TAKE OVER ALITALIA FALLS

APARTp.6 LUKOILENTERED MONTENEGRO TOOp.6 EBRD WILLINVEST 260 MILLIONS OF EUROS IN SERBIAp.7 PRESENTATION OF MACEDONIAN WINESp.7 CROATIA INSURANCE IS INTERESTED FOR QBE AND SAVA

TABAKp.7 TOPLIFIKACIJA REALIZED NET-PROFIT OF 1.9 MILLION

EUROSSPIC

p.6 RECORD SHARE DECLINEp.6 CONSUMPTION BASKET OF 12.332 DENARS IN MARCHp.6 THE INFLATION, UNSOLVED ENIGMA FOR SLAVESKIp.6 EVEN WITHOUT NATO THE BRITISH REMAIN ON OUR MAR-

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1. INGRA DEFINITELY BUYS MAVROVO (*****)2. THE PRODUCTION BY STEELWORKS OF MAKSTIL STOPPED (****)

05.04.2008 SATURDAY

As of yesterday, after the shock inBucharest, which drastically decreased the indexon the Macedonian Stock Exchange, the panicslowly calms down; convey all Saturday issues of

the print media. The Macedonian Stockexchange index MBI-10 not only it did not drop; iteven registered increase of 1, 6%. Otherwiseyesterday, the total turnover on the MacedonianStock Exchange amounted nearly 49 milliondenars, which is a lower amount that the turnoverof 77 million euros, which happened the daybefore yesterday.

The news that the Croatian Ingra definitelybuys Mavrovo is also present in all of today`snewspapers. The Securities Commission gavethe Croatian investor permission to start the pro-cedure for undertaking shares from Mavrovo.

As Utrinski Vesnik comments, the final entryof Ingra is a sign that even besides the failure for

NATO, the foreign investors will still invest in ourcountry.

Such is also the example of the Austrianinsurance company UNIQA Group entry, whichpaid over 15 million euros, and became owner of46, 5% of the Sigal Holding shares, and in whichSigal Macedonia is also a member. According to

Andreas Brandstetter, member of "UNICA Group"Board of Directors, Macedonia, because of itsgeographic position, is a market with huge poten-tials for development of the insurance business.

UNICA Group has round six million clients in20 countries, and has signed round 13 millioninsurance agreements. It owns 20% of the insur-ance market in Austria, and over half of thehealth insurance market.

- The citizens are increasing the inflation bythemselves, is the title of the analysis in Vreme,which explains that the trend of turning thedenars savings accounts into foreign exchangeones may lead to even higher increase of theinflation percentage, which is 10, 2% at themoment. The bankers say that the money is thesame in fact, and that is a kind of a guarantee forstability of the denar. The experts advise that thecitizens must trust the denar because with the

constant buying euros, the inflation is only heat-ing up.

- The trade deficit continues growing thisyear too. Only in the first two months of 2008 ithas increased to 414.8 million dollars, which is a73 percent growth in comparison to the sameperiod last year, when it was 239.6 million dollars.

Experts believe that this country must build mar-ket economy because the main reason for thehigh trade deficit, which is becoming a chronicdisease of the market, is still the low competitive-

ness of the export products. As a result we havelow foreign exchange inflow at the expense of thegrowing import of competition products, but theimporting dependence of fuels as well.

The Slovenians and Bulgarians are interest-ed in getting included in the third pension fund inMacedonia. They have the intention of formingthree associations in the voluntary pension insur-ance, which is supposed to start functioning inJuly, this year. The start of the voluntary pensioninsurance depends on the amendments of theLaw on Voluntary Capital Insurance, which arestill waiting in the assembly, ever since the lastyear.

Lukoil Macedonia expands the network of

gas stations throughout the state, Vecer conveys.Yesterday, on the street "Prvomajska" was

celebrated the opening of the new object in areaof 2,500 square meters, which has been built inaccordance with the strict standards of security,services, and quality.

2.TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS

DNEVNIK

p.7 PETROLEUM AND ELECTRICITY INCREASE TRADE DEFICITp.7 INGRA OFFERS 2.500 DENARS PER SHARE OF MAVROVOp.7 THE PRODUCTION BY STEELWORKS OF MAKSTIL

STOPPEDp.7 UNICA MADE ITS ENTRY TO SIGAL

UTRINSKI VESNIK

p.1 BUSH INCREASED THE STOCK EXCHANGE INDEXp.1 TRADE DEFICIT INCREASED BY 415 MILLION DOLLARS IN

ONLY TWO MONTHSp.8 TRADE DEFICIT INCREASED BY 415 MILLION DOLLARS IN

ONLY TWO MONTHSp.8 AUSTRIAN UNIQA GROUP TOOK OVER SIGAL MACEDONIAp.8 STEELWORKS EMPLOYEES TEMPORARILY WITHOUT A JOBp.9 BUCHAREST DECREASED IT, BUSH INCREASED OUR

STOCK EXCHANGE INDEXp.9 INGRADEFINITELY BUYS MAVROVOp.9 PROFESSOR BEXHETI GOES INTO BROKERAGE BUSINESS

VECER

p.6 AUSTRIAN UNIQATAKES OVER SIGALp.6 GAME OF CHANCE FOR REGULAR PAYERSp.6 INGRA TAKES OVER MAVROVOp.6 HOW WILL THE STEEL BE HARDENED NOW?p.8 NEW LUKOIL GAS STATION

VREME

p.1 STOCK EXCHANGE RECOVERS FROM THE SHOCKp.5 CITIZENS REPORT TO PRO, AND THE REVENUE OFFICEINFORMS ON THEM

p.7 STEELWORKS OF MAKSTIL STOPS OPERATINGp.7 CROATIAN INGRA OBTAINS LICENSE FOR MAVROVOp.7 CITIZENS THEMSELVES INCREASE THE INFLATION

VEST

p.8 BULGARIANS AND SLOVENIANS WILL BE WORKING IN THETHIRD PENSION PILLAR

p.9 MAKSTIL OPERATES WITH ONE PLANTp.9 INGRA PAYS 2.500 PER SHARE

NOVA MAKEDONIJA

p.5 TRADE DEFICIT GOES 414.7 MILLION DOLLARSp.5 ALITALIJA BEFORE BANKRUPTCYp.6 THE CROATIANS WILL INCREASE THE CAPITAL UPTO 51%

p.6 THE AUSTRIAN UNIQA GROUP TAKES OVER 46, 5% OFSIGAL

p.6 LUKOIL OPENS GAS STATION IN KISELAVODASPIC

p.7 GAS STATION OF LUKOIL IN KISELA VODAp.7 TRACTORS TO BE DELIVERED BY MAYp.7 NO LAND DISTRIBUTION

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GLOBUSP.20 FOREIGNERS MANAGING OUR ECONOMYP.21 DIRECTORS UP CLOSE AND PERSONALCheerful, communicative, philanthropist, globe trekkers, fiends of the

Macedonian nature and kitchen, passionate explorers of national cultures,

friendly sportsmen, dedicated professionals who , after all, are most happywhen home with their closestp.22 RELAXED MANAGER IN THE HIGH-VOLTAGE DISTRIBUTORGEORG WALDNER, PRESIDENT OF ESM-EVN MANAGEMENT COM-

MITTEEP.23 WORLD TRAVELER ON MISSION TO MACEDONIANIKOLAI J.B. BECKERS, CHIEF EXECUTIVE OFFICER OF MAKE-

DONSKI TELEKOMUNIKACIIP.24 THE AMBASSADOR OF MACEDONIAN WINESMICHAEL LAWRENCE, CHIEF EXECUTIVE OFFICER OF T-MOBILE

MACEDONIAp.25 COASTAL INHABITANT IN MIDDLE OF TIKVES WINE WAVESKOSTANTINOS DASKALAKIS, MANAGER GENERAL OF FENI

INDUSTRY

KAPITALp.8 WITH KAPITAL TO SCHOLARSHIPS WORTH 105.000

We are aware that the development of a successful career large-ly depends on the education too. The mission of Cotrugli Business School- abusiness school for whose curriculum Kapital allocates scholarships-is toprepare ambitious individuals for the changes that the business world ispassing through.

p.11 NEW SHOPPING MALL, CITY GALLERY, OPENEDThe complex City Gallery was opened last week on Macedonia Square.

The new modern trade center, City Gallery, started working in the premisesof former Shopping center NAMA, later renamed in Tipo.

p.11 BULGARIAN MEGA EP ESTABLISHES REAL ESTATE COMPA-NY

The Bulgarian company Mega Ep this week formed a real estatecompany in Skopje under the name Mega EP Properties.

p.11 GERMAN INSURER VIAS ESTABLISHES SUBSIDIARY IN GOS-TIVAR

The German insurer broker Vias, who owns a company in

Macedonia, last week established a subsidiary in Gostivar.p.12 MACEDONIA TO PROVIDE ELECTRICITY BY WINDMILLS

The construction of windmills in Macedonia is expected very soonand out of these reasons the Government determined the legal regulative forthis purpose at its last session.

p.14 DUNA COMPUTERS WITH 1.500 CONTRACTS FOR DIGITALCOPY MACHINES LENDING AND MAINTENANCE

Duna Computers signs the 1500th contract for lending and main-tenance of digital copy machines.

p. 14 MACEDONIA IN DANGER TO LOSE THE TRADEMARK OF ITSWINE

The wineries this year may be left without raw materials for pro-duction should they fail to offer higher purchase price for the grapes to thevine growers.

p.14 GOVERNMENT PURCHASES 100 NEW WAGONS FOR MACE-DONIAN RAILROADS

The Government to assist companies to transport their products

with additional 100 new wagons for Macedonia Railroads.p.18 AMBO TO UNDERGO CONSTRUCTION

AMBO oil pipeline, after more than a decade of planning andpostponing, seems to become reality.

p.24 WE HAVE BIG PLANS FOR MAVROVOADG Mavrovo is definitely one of the "hottest" companies within

the past few months only in Macedonia, but in the region, since the foreigninvestors have a significant participation in the company.

p.28 GAS AS THE ONLY SOLUTION FOR THE ENERGY CRISISSince 1997, when the Macedonia gas pipeline was put in use and

had13 spenders, this number has been increased for only about twenty newusers.

p.34 FC VARDAR ON THE STOCK EXCHANGE?Football clubs as joint stock company is the newest idea in the

Macedonian sports circles being actualized by the acting president of FCVardar, the famous Skopje businessmen Orce Kamcev.

p.36 SLOVENIANS TAKING OVER BROKERS FROM KOMERIJAL-

NA BANKA!As of last week, Vasko Mitev is the new Chief Executive Officer

of broker agency Ilirika Investments, ad at the same time he was appointedfor Management Board member, learns Kapital.

p.37 TREMENDOUS OSCILLATIONS

Last week the Stock Exchange continued from where it stoppedon Friday, March 21, at least as far as the index movement is concerned.

p.38 BULGARIAN COMPANIES EXPECT ECONOMIC BOOM INMACEDONIA!

Bulgarian investments in Macedonia in continuous growth since 2000.

Total of 140 million of Bulgarian direct investments have entered into theMacedonian economy within six years.p. 43 AUTOMAKEDONIJA WITH 10 MILLION IN TURNOVER IN 2007Automakedonija in 2007 sold a total of 759 vehicles, which is 18 % sale

increase on annual level.p. 43 MZT PUMPI WITH 1,4 MILLION OF PROFIT!MZT Pumpi rounded up last year with net taxed profit of almost 1, 4 mil-

lion euros, informs the company`s management.p. 44 CHILDREN LEARN TO SAVE IN PROCREDIT BANK

Children learning to save can be seen in all subsidiaries ofProCredit Bank, which runs an educational action for stimulating the chi-dren`s saving.

p. 45 IK BANKA OPENS SUBSIDIARY IN KISELA VODAIK Banka opened another subsidiary in Skopje in the settlement of

Kisela Voda. The subsidiary provides all of the Bank`s products and servic-es for natural and legal persons.

p. 45 STOPANSKA BANKA WITH 19,6 MILLION OF PROFIT LAST

YEAR Stopanska Banka last year gained gross profit of 19,6 millioneuros (1.202.481 denars), according to the international accounting stan-dards, or 18, 3 million euros (1.118.714 denars) according to the Macedonianaccounting standards, informs the bank.

p. 47 JANUARY SALARIES 12% HIGHERThe average net salary in Macedonia per employee in January 2008, in

relation with the same month last year, is higher for 10, 2 %, while the netsalary marks 12% increase for the same period.

p. 50 GENERAL ELECTRIC TO "PLAY" ON THE BALKANSTHROUGH DELTA

Delta Holding company, owned by the Serbian millionaire MiroslavMiskovic, and the American company General Electric and negotiating forcooperation. The partnership would involve activities in the real estate sectorand cooperation in the financial services.

p. 62 DELICIOUS BAKED GOODS AFTER HUNGARIAN RECIPEOne of the most famous Hungarian companies for baking goods

and cookies, Fornetti, kicked start in Macedonia.

MAKEDONSKO SONCEp.34 COMPANIES MAKE PROFIT EVEN WHEN SHARE PRICES

DEPRECIATEDespite the "large" profits made by the domestic joint stock companies,

at the moment there is a certain share price decline on the Stock Exchange.

FORUMp.28 WE ARE NOT POLLUTERSThese past few days the companies with Greek capital are in the inter-

est of the Macedonian public. In one of the first interviews the CEO of thecement factory Usje talks about the current problem with ELEM, the accusa-tions of polluting the environment, the influence of politics over business

p.31 DOMINANCE OF KOMERCIJALNA BANKA

The last week in march is the final week in which the political chaos onthe domestic scene, the political pressure of the international community andthe political agony imposed to us by our southern neighbor were playing withthe decisiveness of the of the market participants and the offer, where therewas occasional panic, and there were transactions without reconsidering, aswell as from the side of the demand, where the hesitation was mainly led bythe matter if we were to become a member of the Alliance.

p.33 THE OLYMPICS IS AFFECTED BY THE WEAK DOLLARMore exactly, the financial problems are connected to the stability of the

American dollar. The dramatic depreciation of the dollar value is a heavyblow for the IOC because it is reducing the value of selling the media cover-age rights for the Olympic Games in Torino (2006) and in Beijing (August thisyear).

DENESp. 21Disconnecting electricity - only way for collecting debts

In the absence of mechanisms for functioning of a legal state, herebyimpossibility to make the expected profit from the activity performed by theAustrian distributive monopoly EVN-ESM, it decided to undertake a vastcampaign for disconnecting the debtors from the power supply network.

1. SHORT REVIEW IN THE WEEKLY MAGAZINES

31.03.-05.04.2008 MONDAY-SATURDAY

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