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FROM VIRTUAL STUDENTS TO PROFESSIONAL STOCK PLAYERS

DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS 3Date 07.07.2008 number 30 berzNIK

Until the next MondayMakedonka Baldazarska

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

The first half of 2008 in bear`s domination

After the constant decline that lasted one month, thelast year`s positive indices and share price vibration, maybe considered as a kind of stabilization and a move forward.Fi nally the share prices went in opposite direction lastweek. The positive trend of Macedonian stock exchange in -dex (MBI-10) retained by the end of week on Monday, 30Ju ne. Namely, MBI-10 began its first trading day of thisweek with a value of 4.710, 18 index points, moved forwardand closed on 4.885.99 index points or growth 3.73 per-cent, after which it moved in positive zone on 4 July, whenit reached 5.154. 02 index points, which represented growthof 104.18 index points, or, 2.06 percent. In other words MBI-

10 recorded 443.84 in -dex points on a weeklyba se.

If we make one ret-ro spective, June still webe marked in the stockex change lobbies asmonth with longest priceco rrections in the pastexistence of the Ma ce -do nian Stock Exchange.Thesis that results formthe correction of MBI-10which began on 2 June,the first trading day ofthe month, when the in -dex closed at 5.712,99in dex points, with dropby 0,67% and lasted un -til 27 June when for afirst time in the monthMBI -10 made a positivesig nal. That was a peri-od in which the Ma ce -

donian Stock Exclave index lost over 1.000 index points.But, compared to May, in June MBI -10 had lost 865,3 indexpoints, or dropped by 15,05%, while the index of PubliclyHeld Companies had lost over 1000 index pints, or markeddrop by 16,7%. According to statistical monthly report of theStock Exchange, the movements on the market in Junecompared to May, are showing negative changes of thetotal market capitalization by 11, 75%. However, whatmakes space for calculations apart form the all negativeprognosis and the epithets for the black days of the StockExchange is the turnover increase in June which comparedto the prices drop of the companies shares, marks increase.Thus, the total turnover, which includes the shares trading,bonds and block transactions, in June shows increase by48% in relation to May. On monthly basis, there is markedincrease of the average daily turnover by 33, 84%, as wellas increase of the daily number of transactions from 144 inMay to 157 in June ( in average). But, if economically it maysound maybe illogical, contrary to the trading increase, theprices of almost all securities had downward trend. Majordrop is marked in the shared of TTK banka by -28, 46%,then Teteks by -24, 52%, ZK Pelagonija by 19, 11%, Betonby 18, 93% and Granit by 14, 35%. In the chart t is markedonly the greatest increase of the Investbaka share with

growth by 0, 87%.

According to the indicators for participation of foreignin vestors in June, in the listed companies of MBI-10 indexin relation to May, there are no drastic changes. Five com-pa nies mark minimum percentage decrease in range from-0, 02 to 0,45%. In this group are the shares of Zk Pe la go ni -ja, Stopanska banka Bitola, Ohridska banka, Toplifikacija,Ko mercijalna Banka, Makstil and Alkaloid have minimumpo sitive changes and range between 0,001 and 0, 38%.Otherwise, on monthly basis, in June, in relation to May the -re is smooth increase of the total foreign investors on theOf ficial Market of the stock exchange by 0,14%.

But it is question less the fact that the Macedonian cap-i tal market in the first six months of the year is in knockout,cer tainly if compared to 2007, year of records. From here, itwo uld be unreal to compare the parameters and the total in -di cators when we talk about the turnover, the volume andnum ber of trading, the market capitalization. We can con-clu de from the six month report of the Macedonian StockEx change that greatest turnover in the classical trading isma de in March, greatest turnover on all market segments isre alized in February, while lowest in May. According to theturn over volume, most traded in this half of the year are thesha res of Komercijalna banka which have realized 8, 7876million euro, Alkaloid with 7, 814 euro and Makpetrol with6,158 million euro. These three companies had made thegreatest market capitalization.

One of the basic data that supports the thesis that theStock Exchange in the first half of the year was negative isalso the fact that the shares of all blue chips of MBI-10marked drop. Major drop of June’s in relation to January’sprice marked the share of Teteks by – 58,61%, Toplifikacijaby -56,32% and Makpetrol by 53,29%, while lower percent-age drop marks the share of Komercijalna banka by minus21,18 percents.

The participation decrease of foreign investors in thecom panies’ capital of MBI-10 for these six months is mostevi dent in Granit, where there is decrease by 9, 51% andBe ton by 7118%. In Toplifikacija the participation is the mostre duced by only 0, 32%. More, according to the participati -on of foreign investors in the total turnover of the Stock Ex -chan ge they are the most dominant in February with53,49% in relation to the total turnover.

Having regard of the Pleiades of these figures, the the-sis that the cycle of prices drop is more than obvious. Also,the conclusion of Steriev - It is important to be seen the per-formances of the companies on middle and long term, theirdevelopmental perspectives, everything else are only per-ceptions of the investors, and the Euro ambassador ErvanFuere - the stock exchanges every time are influenced byva rious external factors and external weavings, are not ex -clu ded from many speculations, can be summed at onepoint - the market is sensible and turbulent base on whichhead it is common to be the bear and the bull, certainly al -ter natively?

There is a room for additional growth on Ma ce do -ni an Stock Exchange and the Stock Exchanges in there gion, and the last trends which followed after the re -cord growth last year and the price decline in the firsthalf of this year doesn`t have to mean anything, em -pha sized the head of Macedonian Stock Exchange,Ivan Steriev, on the project results presentation, Stu -dent Stock Exchange. The director Steriev emphasi -zed that it is very important companies` performancesand their developmental perspectives to be observedon short-period. According to him, the rest representsinvestor`s perception which determines the prices onthe stock exchanges whether they will be close or farfrom the share`s theoretic value.

Mihail Petkovski, professor at the Faculty ofEco nomy, says that the dynamic and the speed ofmar ket`s healing are still unclear. But, according tohim, one of the main factors in the market`s healingpro cess is the investment funds, which can not allowfurther assets` decline i.e. securities in its current as -sets.

4 DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS

berzNIK number 30 Date 07.07.2008

The promotion of the project was held inMacedonian Stock Exchange premiseson 3, July. The Student Stock Exchange

was awarded for best participant and highestvalue of the share trade portfolio achieved inthe frames of this students` project which last-ed from October last year by May this year.Stevan Kenjeres received the award.

The project organized by MacedonianStock Exchange, according to AmbassadorErwan Fuere, represents connection of stu-

dents` gained education with practice andopportunity to apply what they have learned.

-This project enables a connection of thetheoretic knowledge and practice which con-tributes towards young people` education andtheir preparedness for the challenges whichbrings the market economy, said Fuere, addingthat the development of the secure markets andinvestment services is crucial precondition forattracting foreign and domestic investors in allfields of the economy.

He said that there should be regulatoryframework in order to enable safer economy,expressing hope that the new Government willfocus on intensifying the reforms to strengthenthe economic state in the country in order toopen the doors for foreign investors and toreduce the unemployment.

According to the executive director IvanSteriev, the project`s successful results aremotivation to work on other projects whichmakes the theory to practice and the studentsinto professionals.

The fourth cycle of the Student StockExchange will start next year.

END OF THE ANNUAL PROJECT STUDENT STOCK EXCHANGE

FROM VIRTUAL STUDENTS TO PROFESSIONAL STOCK PLAYERS Macedonian Stock Exchange awarded Stevan Kenjeres, for being the most successful economics student.He also received free training of professional examination on securities and annual subscription for thesystem BEST – NET. The value of his portfolio reached 5.108.813 denars.

Stevan Kenjeres- Letter of gratitudeThe winner of the price for this year, the best student’s stock exchange trader Stevan Kenjeres,

didn’t attend the ceremony organized by the Macedonian Stock Exchange on occasion of awardingthe first price on annual level for the project Student’s Stock Exchange. But, Kenjeres expressed hisgratitude in his letter sent to the Stock Exchange. I am not able to be present on this ceremonybecause of my stay in Aspen, in the state Colorado, in the frames of the USA Government programfor cultural exchange of students. I apologize to all participants of the project for my absence, andalso to all people present on the ceremony.

He, in his letter describes his goal- to be the best.I was persistent, and I wanted to try to win the primary award for 2007/2008. For that purpose,

I prepared a program with which I was following cumulatively the results of my players during theseason… If you wonder why I was so persistent, the answer would be: I believed that, according tosome of mine predispositions, the stock exchange work would be interesting for me. I was trying to prove this by wining the annual award. Whetherthe eventual professional work in the Stock Exchange will be realized, depends from many factors, in part of which I cannot have any influence.

Apart from the obvious everyday free training for stock exchange trading and everything that goes along with it, I had another one advantage.I was introduced with the main features of great part of our most prominent companies- something that would help me in my further work.

I can say that I am very pleased that I won the first place. I would like to emphasize that I won competing with hundreds of students, of which,at least ten are excellent players. For part of them I have the impression that is playing on the Macedonian Stock Exchange. I would especially men-tion my colleague Emilija Popovska ( who I haven’t met personally) ,who had convincing domination on the last day when , with mine risky but for-tunate investment in shares of Teteks Tetovo which enormously increased, literally lost by a hair’s breadth.

I don’t trade on the stock exchange, from one simple reason, I have no funds. Until 2007 when the stock exchange was constantly going up,the fact that I wasn’t able to invest real money seemed to me like a handicap, but that changed when the stock exchange began to drop. I believethat this downward trend will end soon. I except that there will be all conditions to include myself in the real stock exchange after my return fromthe USA…

Brand managers from several Macedonian

companies exchanged their experiences on the

workshop “Tools for implementation of brand man-

agement”, which was held in Skopje and which

brought together managers from Alkaloid, Ko mer -

cijalna banka, Telecom, Macedonian Air Transport

etc. The marketing expert Robert Lauterborn

from USA held a lecture on the theory of integrat-

ed marketing communications.

- It is a matter of the contribution of the inte-

grated marketing communications in the creation

of strong brands. Essentially it is a matter of the

changes which should be made in the thinking

pro cess. For example, inside-out is a typical ap -

pro ach. It is something that the company wants to

do about the outside world, i.e. the customers.

That approach should be changed and an outside-

in approach should be considered. It means that

the information from the surrounding should be

gathered and processed, the needs of the consu -

mers should be considered and it should be con-

sidered what the company can do about it. This is

something that is successfully applied in USA, as

well as in many other developing economies, like,

for example, China.

A product should not only be sold, but a story

about it should be build, because you sell the

story, not the product, and the brand should also

enter the conscious of the customers, i.e. position-

ing in the conscious of the customer in a manner

on which that brand would meet his requirements.

The companies must identify customers` require-

ments, and the brand should properly meet those

requirements.

My impression is that there is a lack of confi-

dence in Macedonia, and Macedonia is a beautiful

country and its citizens should have more confi-

dence and therefore fight for their goals.

According to Snezana Mojsovska-Sa la mov -

ska, assistant at the “St. Clement from Ohrid” Uni -

versity in Bitola, - because the brand is a promise,

it has to be kept. It is an important component, be -

cause the strong brand understands building loy-

alty, and it is build only through trust. We have

brands in many fields: in the foodstuff industry, in

the tourism and our country is a kind of a brand, so

we have potential to be realized. Every brand has

a potential to become global, but only if it has good

management. We have good brand managers and

marketing managers who are quite interested of

turning their products, services, and corporative

brands into global.

The Government should improve the busi-

ness climate and to take actions regarding the pro-

tection of the industrial property in order to mini-

mize imitations and unfair competition as a plat-

form for creation of a brand.

TWO-DAY WORKSHOP FOR IMPLEMENTATION OF BRAND MANAGEMENT IN SKOPJE

THE BRAND IS NOT JUST A STORY, IT IS ALSO A PROMISE

The seminar is organized by the Agency for entrepreneurship potential developmentHumanopolis, which is part of ERA Group Slovenia


2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS

1. COUNTRIES FROM THE WEST BALKAN FACE WITH ENERGETIC LACK (****)2. ENDS THE LONGEST FALL IN THE HISTORY OF THE STOCK EXCHANGE (***)

30.06.2008 MONDAY

1. SHORT REVIEW OF EVENTS

DNEVNIKp.9 AUSTRIAN HIPO TO OPEN BANK IN MACEDO-

NIABIZNIS

p.1 THE STOCK EXCHANGE GETS OUT OF THELONG FALL?

p.3 FRANCE, AUSTRIA, SLOVENIA AND SERBIA–GREATEST INVESTORS

p.4 TIKVES WINERY – THE BEST REGIONAL BU -SI NESS PART¬NER

p.15 MBI – 10 PASSED INTO THE GREEN ZONEp.15 MBI REPORT 27.06.2008p.16 FINALLY AN INCREASE ON THE STOCK EX -

CHAN GEp.16 ENDS THE LONGEST FALL IN THE HISTORY

OF THE STOCK EXCHANGE p.17 OIL PRICE – 150 US DOLLARS A BARRELp.17 NET-EARNINGS DECLINE OF 26.5 PERCENT

UTRINSKI VESNIKp.7 THE PURCHASE WITH CREDIT CARDS

EXPENSIVE PLEASUREp.8 COUNTRIES FROM THE WEST BALKAN FACE

WITH ENERGETIC LACK

VECERp.6 OIL TO INCREASE UP TO $170 THIS SUMMERp.6 MAKPETROL DISPUTES DAIRY OWNERSHIPp.7 THE MBI – 10 INDEX, FINALLY TO MOVE

VREMEp.4 AUSTRALIA SHOWS INTEREST IN MARIOVO

URANIUM p.6 THE MOST LIQUID COMPANIES IN THE

GREENp.6 PATRIOTIC TRADE MAKES UNSEEN CHAOS

NOVA MAKEDONIJAp.7 IS THIS THE END OF THE POOR TRADE SE RI -

ES ON MSE? p.7 AUSTRALIANS IN MACEDONIA IN SEARCH

FOR URA¬NIUM AND IRON p.7 WEST BALKAN AHS A LACK OF ENERGY p.8 CARDS DID NOT REDUCE ROWS IN THE

BANKS p.8 OIL SETS NEW RECORDS

SPICp.5 SEARCH FOR URANIUM IN MARIOVO p.5 AUSTRALIA WILL TEACH US TO PLANT FRUIT

WITHOUT LANDp.5 WEST BALKAN ENERGY SPONGE

This week begins in the printed media with thenews for the main energy raw material- the oil. Thepri ce of the black gold, which during Friday’s tradingre ached new record price of 142, 99 dollars per bar-rel, and according to the American experts for ener-gy, it is expected very soon to reach 150 dollars perba rrel. Apart from the slow down of the USA econo-my and some other most developed Western countri -es, most of the experts agree that there are conditi -ons for new, additional jump of price. The long termprog noses for this fuel are more pessimistic, be ca -use they are indicators that this key raw material inthe following three to four years could increase to ap -pro ximately 200 dollars per barrel.

Some of today’s newspapers convey the an -noun cement of the International Agency for Energy,that seat in Paris, according to which every sixth citi -zen of Western Balkan is facing with lack of energy.The agency mentions that the energetic crisis in thearea of Western Balkan follow after the wars in thete rritory of Former Yugoslavia, during the previousde cade, and appoints to the necessity for fast renew-al of the current and construction of new electroener getic plants in the region. In the report it is con-clu ded considerable higher energetic spending in theco untries of Western Balkan in relation to the stan-dards of EU and OECD.

In their stock exchange reports, today’s newspa-pers inform that the major drop in the history of theMa cedonian Stock Exchange has finished. Namely,af ter the 18 days continuous drop of the MBI-10 in -dex value, finally Friday managed to close the daywith positive value of 2,44percents. Apart from that,seen as a whole, analysts estimates the previouswe ek as one of the hardest for our stock exchange.On weekly level the leading index of MBI10 markedco rrection by 6,04 percents, on monthly level it has adrop of 17,66 percents and this week another timere ached the minimum 52 on weekly level- its ab so lu -te value Thursday was worth 4.598,02index points.

Direct foreign investments, last year, brought239 million euro, and major investors were France,Aus tria, Slovenia and Serbia - it can be noticed fromthe data of the Ministry of finance, which conveys to -day’s issue of Biznis. Of total direct investments, 35

mi llion euro is realized in the reinvested profit and110 euro is another separate capital. Foreign directin vestments in 2007 mainly are located in the financesec tor, telecommunications, as well as the producti -on respectively food procession. Another time it can-not be omitted the conclusion that our country is onthe bottom of the investor’s map, which the foreign-ers drew in the region.

For some investors, as the Austrian financialgro up Hipo, our country is favorable business desti-na tion, which affirms Gorge Vojnovik, member of theMa nagement Committee of Hipo Alpe Adria Leasing,who for today’s Dnevnik announced that this groupin tends to open a bank in Macedonia.

Austrians prefer to buy home bank in Ma ce do -nia, but if that fails, they would make Greenfield in -vest ment. According to Vojnovik, the successfulwork ing of Hipo Leasing in Macedonia is certainlyfac tor plus for the expansion of the business in theban king sector, too. Namely, the first half of the year,the group Hipo marks increase of 250 percents in re -la tion to 2007, and have placed in the country over25 million euro for vehicles and equipment leasing.

The citizens who buy furniture, white goods,com puters and similar products by credit card, oftenare paying higher sum or they are losing the discountright which is valid for paying in cash. Thus, thosewho are using their credit cards for payment, theybuy the product expensive by 5 percents. This infor-ma tion can be read in Utrinski vesnik, which conclu -des that the buying by credit cards is expensive ple -a sure. According to the unofficial statements, if therep resentatives of shops and companies, banks arecollecting commission from the trade companies forpay ment by credit cards, and for the traders, so far,the most ideal way for hiding the commission is dis-count cancelling which is valid for paying in cash.

The vinery Tikves received the award Best Re gi -o nal Business Partner 2008, which awards the agen -cy Mass media internacional, from Serbia, on basisof independent research conducted in the compa-nies from the Region. Tikves is the only companyfrom republic of Macedonia that receives prestigiousaward.

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

R.Makedonija Phone. 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 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: 30Date: 07.07.2008

IT IS DISTRIBUTED FOR SUBSCRIBERS ONLY

FRONT PAGE PHOTO:MACEDONIAN STOCK EXCHANGE

Photo:Robert Spasovski

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

Marketing, distribucija i 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

MACEDONIAN – SLOVENIAN BUSINESS COOP-ERATION FAR BEYOND THE POSSIBILITIES. . . 8-9

INFORMATION IS FOR GIVING NOT FOR KEEPING -9

AGBIZ GRANTS FOR NINE MACEDONIANAGRIBUSINESS COMPANIES . . . . . . . . . . . . . . . 10-11

PROJECT- ASSESSMENT OF THE GOOD MAN-AGEMENT POTENTIAL IN MACEDONIA. . . . . . . . . .11

REVIEW OF THE REGIONAL STOCK EXCHANGE.. . .12

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

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

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

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



Macedonia is on the 50th place in the 50thpla ce in the world for leading business is the titlethat marked the titles on all of the today’s print-ed media. In competition of 121 country, in thelist of the “Forbs” magazine, Macedonia is onthe 50th position according to the conditions thisco untry offers for leading business, which repre-sents progress for 32 places compared to thelast year. In the qualification of the Americanma gazine on the list as best ranked country forle ading business is Denmark, before Irelandand Finland and then follow the USA, GreatBritain, Sweden, Canada, Singapore, HongKong and Estonia. Thanks to the huge progressof 32 positions, we were ranked before Greeceon the list, which is on the 53rd place. Ma ce do -nia was already pronounced for one of the best10 countries in the world for implementation ofre forms for improving the business climate, ac -cor ding to the report of “Doing Business” of theWorld Bank. In 2007/2008, our country wasranked on the high fourth place, compared to178 countries in the world for the progress theco untry has achieved in the area of tax reforms,business registering procedures, regulatoryguillotine, customs reforms and speeding uppro cedures for obtaining construction permits.The economic experts say that this progressabo ve all is due to the favorable economic me -a sures that the government had realized in thelast year and a half.

Biznis announces that the low prices of theMa cedonian shares have woken the buyers.

Yes terday, one needed a sharer more on theMa cedonian stock exchange. Since 9 o’clock inthe phase of indication, the buyers that have de -ci ded to buy through the weekend, lined up onthe maximal day limits with the part of the sha -res from the MBI – 10. The demand was so bigthat it looked like it scared the sellers, especial-ly the ones from Toplification, and Makpetrol.The prices that were high until before Friday we -re offered today by the buyers without hesitati -on. In this way, the trading day has ended withsig nificant increase of the MBI – 10 from 3.37%and 1.8% of the MBID. The overall turnoveramo unted 45.3 millions of denars with the in clu -ded block of 16.27 millions being realized with 1915 shares of InvestBanka.

According to the stock exchange analysisma de public in Utrinski vesnik, although the in -dex has increased, it is early to say that theStock Exchange finally is healing after previous-ly it had been sinking into debts. The yester-day’s new increase of the Macedonian stock ex -change index MBI – 10 for 3.73% as well as theregistered increase on Friday, at the end of thelast stock exchange week, for 2.4 percents isim posing new optimistic stage on the Ma ce do -nian market of capital. Big number of investorshas emerged having great interest for buyingshares, and the owners like they did not want tosell, hoping that there are going to be higher pri -ces of the shares in the following days. In relati -on to the last two days of the stock exchange inwhich it seems that the Macedonian market of

capital shows signs of some modest moving up,pre viously the condition on the Stock Exchangewas even more than desperate. No one was bu -y ing shares, and the sellers while in panic weretry ing to get rid of their securities, which loweredtheir prices to extremely low levels…The priceof the oil which is on record – breaking level,has passed the limit of 143 dollars, announcesVest.

Yesterday, the price of the oil has increasedfor more than three dollars per barrel on a newre cord – breaking level of over 143 dollars, en ti -ced by the increased fears on the market for thecon flict between Israel and Iran about the Te he -ran’s nuclear program. Iran announced that theywill impose their control upon the oil delivery inthe Persian Gulf and the Moreuz Hormuz in ca -se they are attacked. Moreuz Hormuz, the tightwa ter passage dividing Iran from the ArabianPe ninsula, covers almost 40% form the oil trad-ing in the world. The prices later dropped underthe record – prices for this season, partially be -ca use of the straightening of the dollar in relati -on to the euro.

Until tonight, you will read that the bio – fu -els did not fulfill their goal and have brought po -ver ty throughout the world, while in Vest you willre ad that the Italian government is interested toin vest in the construction of windmills for pro-duc tion of electricity in Macedonia. The exami-na tions will start soon on several locations onthe mountain Ponikva near Kocani.



1. MACEDONIA TAKES 50TH POSITION FOR DOING BUSINESS (*****)2. THE LOW PRICES OF THE MACEDONIAN SHARES WOKE UP THE PURCHASERS (**)

01.07.2008 TUESDAY

DNEVNIKp.11 MACEDONIA TAKES 50TH POSITION FOR DOING BUSINESS p.11 EVN-ESM SHUTS THE POWER DOWN IN KONDOVO AND

STUDENICANIp.11 FINE IN AMOUNT OF 5.000 EURO FOR NOT POSSESSING

FISCAL REGISTERS WITH SUNBIZNIS

p.1 THE LOW PRICES OF THE MACEDONIAN SHARES WOKE UPTHE PURCHASERS

p.2 HYPO TO OPEN BANK IN MACEDONIAp.3 MACEDONIA ON THE 50 SPOT AMONG 121 COUN-TRI¬ES p.4 VEHICLES MORE PRECIOUS THAN LIFE p.12 THE LOW PRICES OF THE MACEDONIAN SHARES WOKE UP

THE PURCHASERS p.13 MBI-10 RECORDS GROWTH OF 3.73 PERCENTp.13 RECORD JUMP OF MBI-10` VALUE p.13 MBI REPORT 30.06.2008p.15 THE INTEREST FOR THE BONDS DECREASED WITH THE

FOREIGNERSp.16 OIL PRICE TO RISE TO 170 US DOLLARS A BARREL

UTRINSKI VESNIKp.5 PATRIOTIC REGISTER RUSH CULMINATESp.7 INDEX GOES UP - IT IS EARLY TO SAY WHETHER THE

STOCK EXCHANGE IS RECOVERINGp.7 MACEDONIA ON THE 50TH PLACE FOR RUNNING MBUSI-

NESSVECER

p.6 BIO FUELS TO BRING POVERTY

p.6 KONDOVO AND STUDENICHANI TO BE SWITCHED OFF p.7 MACEDONIA TAKES 50TH POSITION FOR DOING BUSINESS p.7 ON SLOVENIAN ROADS ONLY WITH PAY-TOLL STICKERS

VREMEс.1 PATRIOTIC FISCAL REGISTERS SWEAT THE OWNERS p.4 EVN PUNISHED KONDOVO AND SARAJp.7 PATRIOTIC FISCAL REGISTERS SWEAT THE OWNERS

VESTp.3 MACEDONIA ON THE 50TH PLACE FOR BUSINESS LEADINGp.4 WINDMILLS FOR ELECTRICITY PRODUCTION ON PONIKVAp.9 OIL PRICE HITS A RECORD OF OVER 143 US DOLLARS A

BARRELNOVA MAKEDONIJA

p.7 THE DEADLINE FOR PATRIOT RECEIPTS WILL NOT BE PRO-LONGED

p.7 THE BULL GOT OUT AGAIN, STRONGER THAN ON FRIDAYp.8 FORBS: MACEDONIA IS THE 50TH BEST COUNTRY FOR

BUSINESS p.8 INSTEAD OF CHEAPER REGISTRATION, BONUSES FOR

SERENE DRIVERS! p.8 EVN SWITCHES OFF THE ELECTRICITY IN KONDOVO AND

STUDENICHANI SPIC

p.2 OIL RISES TO ABOVE 143 US DOLLARS A BARRELp.6 COLUMNS OF TRADERS FOR PATRIOTIC FISCAL REGIS-

TERS p.6 ELECTRICITY RESTRICTIONS FOR DEBTORS


Macedonia is attractive market for Slo ve ni -ans, is the appraisal of Slovenian Chamber ofCom merce representatives who attended thisyear Macedonian-Slovenian Business Forum inSkop je. All written media today convey the con-clu sion of Hribar Milic, Director of SlovenianCham ber of Commerce: Macedonia is very per-spec tive market for Slovenian economy, andoffers great conditions to companies for doingbu siness. He stressed that current economictra de between the two countries is poor, but ex -pre ssed hope for improving of this situation.One of the main topics on the discussion wascon sidering of the opportunities for improving ofthe trade between Slovenia and Macedonia andcon sidering of opportunities for Slovenianinvestments in the country. Because, accordingto Hribar, Macedonian low taxes, educated laborfor ce, free trade agreements with EU, Russiaand countries in the region, is very attractive forin vestments. Last year trade between the twoco untries reached 200 million euros, and Hribarsa id that successful cooperation can bring tradeof 1 billion euros. Macedonian Economic Cham -ber Secretary General Jelisaveta Georgieva,or ganizer of Macedonian-Slovenian BusinessFo rum, considers that both countries shouldwork towards creation of regional products,which would be later actively promoted.

Inflation is not reducing – 10% in June, arethe latest records of State Statistical Office ofthe Republic of Macedonia, which were conve -yed by Macedonian papers.

This means that the inflation rate is again

ex ceeding 10%, and June life expenditure indexcom pared to the same month last year in cre a -sed 10.1%. This index compared to May marksin crease of 0.3%. Inflation growth is a result ofthe increase of food price, and biggest growth isre gistered at fruit and cereals product, oil deri-va tives mark 7.7% increase as well…

June retail prices compared to last year in -cre ased 8.4%, and compared to May there is in -cre ase of 0.8%.

The problem of fiscal registers is delayed.Ac cording to the current situation, only the Go -vern ment is satisfied by the new fiscal registers,while traders consider that patriotic fiscal re ce -ipts will not improve the sale of Macedonian pro -ducts, but yet, they upgrade their fiscal registersdue to fear of high fines. According to today edi-ti ons many traders yesterday did not issue newfis cal receipts despite the fact that the term fortheir implementation already passed. They ex -pla in that the reason for the delayed issue if the -se receipts is a result of the delay of the upgradesoft ware in service companies.

Government officials say that patriotic re ce -ipts will improve the competitiveness if Ma ce do -ni an products, and create positive effects forcus tomers. Chamber of Commerce officials saythat patriotic fiscal receipts are expenditure,which will be paid by traders.

Biznis conveys that yesterday oil increasedon world market by 3.5 dollars reaching 143 dol-lars per barrel. On London Stock Exchange bar-rel of oil was sold at 143.81 dollars, while on NY -SE it reached 143.54 dollars. The price of North

Sea Brent in London increased by 3.5 dollarsand reached 143.81 dollars. Such records aredi rectly pegged to the dollar and its depreciationcom pared to euro.

Biznis also conveys that the increase ofelec tricity price in the region is not going to af -fect the electricity in Macedonia for now, ESM-EVN officials say. Company also explains thatthey are still calculating and operate on expens-es. They will submit calculations for expenses tothe Energy regulatory Commission by the end ofthe year, and it will decide on further steps. Justto remind, exactly two weeks ago GeorgValdner, President of EVN Managing Board,was the one to announce the electricity increasein Macedonia.

Utrinski Vesnik conveyed the yesterdaystart of service for phone number migration.This means that citizens will be allowed to chan -ge their mobile operator and preserve the prefixwhich is characteristic for the network he wasusing. This means that if some user of mobilete lephony services decides to migrate on othernet work, he will be able to keep his number, re -gardless if it starts with 070/071, 075/076 or077/078. It is expected that the introduction ofthis service will significantly strengthen the com-pe tition on telecommunications market. Elec tro -nic Communications Agency (AEK) announcedto fine operators with 4-7 pct if ban their sub-scribers the opportunity to migrate to other oper-ator, and keep their previous prefix.



1. INFLATION STANDS FAST-10% IN JUNE TOO (****) 2. ONLY THE GOVERNMENT IS SATISFIED OF THE PATRIOTIC FISCAL APPLIANCES (****)

02.07.2008 WEDNESDAY

DNEVNIKp.1 ONLY THE GOVERNMENT IS SATISFIED OF THE PATRIOTIC

FISCAL APPLIANCESp.9 INFLATION ONCE MORE OVER 10 PERCENTS p.13 AMERICA AND CHINA IN GLOBAL WAR FOR OIL

BIZNISp.1 THE THREE STOCK EXCHANGE INDICES RECORD GRO -

WTHp.1 INFLATION CONTINUES TO GROWp.3 ACHIEVEMENTS OF MAKPETROL ON THE WORLD EXPOSI-

TION p.3 PRICE CHANGES WILL NOT AFFECT MACEDONIA FOR THE

TIME BEINGp.3 MACEDONIA- PERSPECTIVE MARKET FOR INVESTING p.6 FISCAL REGISTERS BECAME PATRIOTICp.11 SHARE BUYBACK p.11 NET – TRADING TRANSFERS- p.11 MAKOTEKS REACHES DECISION FOR COVERING LOSSES p.11 MACEDONIAN STOCK EXCHANGE p.11 EXTENDED DEADLINE FOR FORMATION OF SHARE PACK-

AGE FOR SALEp.12 GROWTH OF THE THREE STOCK EXCHANGE INDICES p.13 МBI 01.07.2008p.13 2.01 PERCENT GROWTH OF MBI-10 p.15 INTERNATIONAL HOTELS TO ISSUE SECOND EMISSION OF

SHARESp.16 INVESTBANKA HAS OPENED ITS 22ND BRANCHp.16 OIL PRICE UP AT $143.81 A BARREL

UTRINSKI VESNIKp.1 INFLATION STANDS FAST-10% IN JUNE TOOp.5 STARTED THE SERVICE FOR MIGRATION OF NUMBERSp.7 THE FISCAL PATRIOTS ALREADY ENTERED INTO FORCE,

THE CHAOS CONTINUESp.7 MACEDONIA - INTERSTING MARKET FOR THE SLOVENIANS

VECERp.6 THE SLOVENIANS ARE SHOWING INTEREST IN GREEN-

FIELD INVESTMENTSp.6 UTILITY SERVICES AND VILLAGES – DISCONNECTEDp.7 THE OPTION FOR NUMBERS MIGRATION IS POSTPONED

FOR TWO WEEKSp.7 START OF THE PATRIOTIC FISCAL RECEIPTS

VREMEp.6 THE CITIZENS NOT INTERESTED IN THE PATRIOT FISCAL

RE GISTERSp.6 TOPLIFIKACIJA WANTS 40 PERCENT MORE p.6 THE INFLATION INCREASED AGAINp.6 EVERY NETWORK WITH THE SAME NUMBER

VESTp.1 INFLATION OVER 10 % AGAINp.6 THE ASSEMBLY WITHOUT FISCAL RECEIPT p.7 MAT HAS A SHORTAGE OF AIRPLANES

NOVA MAKEDONIJAp.1 THE STATE REQUESTS BUT, DOESN`T ISSUE PATRIOTIC

FISCAL RECEIPTS p.7 PRICES OF MAKPETROL AND TOPLIFIKACIJA INCREASED

BY 10 PERCENTp.7 WHAT’S WRONG WITH THE DATA FOR MACEDONIAN INFLA-

TION?p.8 MACEDONIA IS AGAIN SHAKEN BY INFLATION OF OVER 10

PERCENTS -p.8 EVN CUT OFF 18 ENTERPRISES

SPICp.1 CHEAP ELECTRICITY SILENTLY NIBBLES THE BUDGETp.9 THE PATRIOTIC IN FRONT OF CONSTITUTIONAL COURT p.9 DOUBLE-DIGIT INFLATION p.9 EVN CONTINUES TO DISCONNECT ENTERPRISES AND VIL-

LAGES



MACEDONIAN – SLOVENIAN BUSINESS COOPERATION FAR BEYOND THE POSSIBILITIES

CHALLENGE – JOINT APPROACH

ON THIRD MARKETSThe Macedonian and the Slovenian businessmen should not look only at the Slovenian and the Macedonian market, bust also on the mar-

ket between Western Europe and Russia, respectively entire Eastern Europe, which today is one of the fastest growing regions in the world.It is a region with over 200 million citizens, over two trillion dollars of economy, with seven to ten percents of growth… enormous market,

where jointly, the Macedonian and the Slovenian companies have limited possibilities to supervene and to represent the joint competitivepossibilities and benefits.

Last year in the external trade exchange,Slovenia realized over Euro 40 million.Only about Euro 200 million of this fabu-

lous amount falls out to Macedonia. These sta-tis tics were the reason the Chief Executive Of -fi cer of the Slovenian Economic Chamber, Sa -mo Hribar Milich to ascertain that the businessco operation between the Republic of Sloveniaand the Republic of Macedonia is still too smalland to emphasize the issue about which are thereasons for not being able to use all the bene-fits from the both countries on the recent visit ofthe Slovenian business delegation in our coun-try.

- We have joint history, we have communi-ca tion, we have enough information on thework ing condition in the both countries, we visiteach other… now, even the visas are not an is -sue – we opened vacancies for the Macedonianworkers.

Nevertheless, the statistics on the ex chan -ge are more than humble. We are here to seethe mistakes we make on both sides, to reach ahigher extent at that exchange, not only to buyand sell. I think that the future is in seeing somejoint projects, investments… The businessmenfrom Slovenia consider Macedonia to be a per-spective market for the Slovenian economy. Weshould reach the number of one billion euros inthe next few years as far as the joint co-opera-tion is concerned.

We hope and believe that we have interest,possibilities, capital and knowledge to reachthis target pretty rapidly – Milich pointed out.

Actually, in that direction exactly was the

two-day visit of our country by the Slovenianbu siness-delegation, organized by their econo -mic association and the Public Agency for En t -re preneurship and Foreign Investments(JAPTI) of Slovenia.

As shown in the presentation by theAgency`s representatives, in the last two yearsSlo venia invests more outside the country, thanthe foreign investors do in Slovenia.

The indicators are fantastic. We reachedcertain level of development as a state whichcan be competitive on the European market.But, that is not our only goal. We want to placeour part in the Western Balkan region, or widerin Southeast Europe. As a state, Slovenia isprepared for that part, because it is on democ-racy level which enables us to rationally andmore tactically to plan our moves not only in theEU, but in these regions such as Croatia,Bosnia and Herzegovina, Serbia, Montenegro,Al bania, Macedonia – pointed out Tanja Drob -nich, manager of the Direct Investments andInternational Department within JAPTI.

Vele Samak, the Minister for attracting for-e ign investments also located the SoutheastEu ropean market as a possibility for joint super-ve ning of the Macedonian and the Sloveniancom panies, pointing out the fact that Ma ce do -nia is as competitive as China in the field of pro-duc tion, and as India when it comes to outso ur -cing.

- These two important factors should beused from the Slovenian companies for conqu -e ring new markets, as well as from the Ma ce do -nian companies for intensifying their possibili-

ties and conquering new markets. The marketsfor the Macedonian and the Slovenian busines -s men are not just Slovenia and Macedonia, butal so the market between Western Europe andRu ssia, respectively the entire East Europe,which today is one of the fastest growing re gi -ons in the world.

It is a region with over 200 million citizens,over two trillion dollars of economy, with sevento ten percents of growth… enormous market,whe re jointly, the Macedonian and the Slo ve ni -an companies have limited possibilities to su -per vene and to represent the joint competitivepossibilities and benefits. Here actually lies themajor potential, the growth of the economies,

Easy and tactically to the EU

What is interesting for us as a state isthat for the first time in the history weachieved surplus in our budget, which as astate enables us to decrease the taxes onmiddle or a long period of time. We noticedthat you too have significant taxesdecrease, which enables you somemomentary solutions, perhaps on the laborforce market – lowering the grey econo-my… However, we as a state, we movedvery slowly, carefully and we reached alevel which now enables us greater devel-opment on middle and long term. If youthink that you can really go the shorter way,you cannot. Slovenia has additional value ofthe export – stated Tanja Drobnich, manag-er of the Direct Investments andInternational Department within JAPTI. –We did not act as some other states didwhich entered the EU, by rapid opening ofthe doors to the foreign investments. We, asa state estimated that it is better to moveslowly and tactically, and now we see that itwas the right decision to make. TheSlovenian Government has certain meas-ures at disposal for the foreign investors.The foreign investors who have the possibil-ity of placing their products on our marketreceive resources from us, in replace fornew jobs openings. If you are interested inonly a year or two, or prepared, we willexplain the legislation concerning that field.Otherwise, Slovenia has qualified laborforce. We lack labor force where there is noadditional value. We have deficit here, inthe field of the catering industry, the trans-port, the logistics and distribution, thetourism, the regional management cen-ters…

The business ambient profitable for the investors

The extent of the Slovenian investments towards the end of the last year reached Euro 90million. Compared to the other countries in the region, especially Croatia, Serbia, and evenBosnia and Herzegovina it is very little. Nevertheless, we think that the potentials are vast –pointed Matej Rogelj, Deputy Head of International Business within the Slovenian EconomicChamber. – The information that Macedonia has 400 locations for small hydro power plants andthat only 26 projects are prepared is a major opportunity for the Slovenian companies. I thinkthat the potential of the Slovenian engineering and design companies is sufficient, and it ismore than obvious that the interest of the Slovenian companies is really big. Besides the ener-gy field, there are the metal and the automobile industry, and of course the foodstuff industry,which offers enormous potential.

As far as the business ambient in Macedonia is concerned, it is very good, especially thetax system and the measures for encouragement of foreign investments. Now, the only thingnecessary is the promotion, respectively to inform and get the international economic publicinterested. I still think that it would really help, if the process towards EU accession got intensi-fied. It is what would make the real turning point, when the foreign investors would be con-vinced that it is economically appropriate ambient. As far as Slovenia is concerned, that is noteven an issue.

We know the Macedonian market, and we are not afraid of some political and economicalrisks.


which not only brings challenges, but it alsobrings possibilities – Samak pointed out.

Analyzing the moments important for thepo ssibilities of the bilateral business cooperati -on, Jelisaveta Gheorghievska, Secretary Ge -ne ral of the Economic Chamber of Macedonia,stated that last year 65% of the Macedonianexport ended up on the EU markets, whereasthe import from this group of countries was only15%, which brings us to the conclusion that weshould look at the development of the bilateralbusiness cooperation through regional connec-tion and in the euro integrations.

For the possibilities of the Slovenian busi-nessmen supervening on the Macedonian mar-ket and accomplishment of higher forms of eco-nomic collaboration, Gheorghievska pointedout that besides the other legal regulation, theLaw on Concessions and other types of public-private partnership. – Besides projects for greathydro power plants and water systems, theMacedonian Government has 400 target loca-

tions for construction of small hydro powerplants.

So far, 26 locations have tender investors,such as is the case with the Macedonian –Slovenian Consortium, domestic investors, andinvestors from Slovenia, Italy, and Germany.

The potential investors can find interest inconstructing windmills. In addition to this,besides the Corridor 10, the entrepreneurshipinitiative for the Corridor 8 - Drac – Skopje –Burgas is very challenging, whose implementa-tion is planned until 2020. At the same time withit comes the corridor AMBO, which still seeksadditional financial and some other aid for real-ization.

The project South Vardar Valley, whichought to be benefit for the agriculture and theener gy, is still in search for investors so that theproject can be realized completely.

- We, as a state, make efforts for implemen-tation and following the EU legal regulation, alljust to be in pace. However, in the future, above

all we should be oriented towards the regionalproducts – in the real production, the services,the finances, the infrastructure, the promotion.Du ring this phase of the regional economic con-so lidation the input of the business communityis of crucial importance, but without political willwe can hardly reach the goal. In this very case,the input and the support by Governments arethe re, so together we find ourselves in front of acha llenge to once again set the matrix of the jo -int regional market. And we have already estab-li shed that with the Economic Chamber of Slo -ve nia – Gheorghievska emphasized.

The business co-operation with Sloveniawas estimated as positive by Savka Dimitrova,Pre sident of the Management Board of the Eco -nomic Chamber of Macedonia – because over100 companies in Macedonia are with dominantSlovenian capital. Hence, as Dimitrova pointedout, we expect that the technical – technologi-cal and the managerial capacities of theSlovenian businessmen will sustain our entre-preneurs in accessing the European Union andthe worldwide markets, for the wellbeing on theboth countries. Our bilateral business coopera-tion will be successful and with development,only if it is part of the global operation, if theyare jointly oriented towards third markets. Yearafter year, the Macedonian business ambient isless different than the European, is how we seeit, and it is also stabilized. The good partnershiprelations between the Slovenian EconomicChamber and the Economic Chamber of Ma ce -do nia expressed through the mixed Ma ce -donian – Slovenian economic chamber, estab-lished 15 years ago, as well as the Slovenian –Macedonian club are healthy foundation for cre-ating alliance as a support for our road towardsthe EU and lowering the obligations in front ofus. The partnerships and the alliances are aguarantee for every progress.

WORKSHOP FOR EXPERIENCES OF THE ENFORCEMENT OF THE LAW ON FREE ACCESS TO INFORMATION OF PUBLIC CHARACTER

Information is for giving not for keeping The right to free access to public documents is directed towards realization of the ideals for effi-

cient administration and fight against the corruption, i.e. towards two of the many goals that get uscloser to the desired European standards. - The Law on Protection of the Right to Free Access toInformation of Public Character is a peculiar primer of freedom and democracy in the Republic ofMacedonia – pointed out Mr. Janko Nikolovski, President of the Commission for Protection of theRight to Free Access to Information of Public Character at the one-day Workshop for the experiencesof the present Law enforcement to date.

According to Mr. Nikolovski, the right to free access to public documents, as an ultimate and pre-cise instrument, is oriented towards ideals: efficient administration and fighting corruption; whichmeans towards two of the many goals that bring us closer to the desired European standards.According to the Minister of Justice, Mr. Mihajlo Manevski, the fact that the Law on Free Access toInformation of Public Character is regulating relatively new subject in the legal system of Macedoniacreates favorable ground for certain temptations and strangers, which the information holders shouldgradually surmount and resolve together with the Commission.

- Information cannot be monopoly of the organs of the state authority, the institutions that havepublic authorizations, the judiciary, not including the classified information that have special regime of use, Mr. Manevski said. He assessed that exercis-ing the civil right to free access to information of public character also means a kind of a control over the work of the organs and institutions, its functionmainly being the protection of the interests of the citizens and enabling simpler and better life.

The Ambassador of Great Britain to the Republic of Macedonia, Mr. Andrew Key, the Workshop taking place under his support, emphasized thatexercising the right to free access to information was a relatively new phenomenon in a lot of countries, including Great Britain. In his opinion, Macedoniais progressing extremely well in this sphere and the implementation of this right, including the Law on Free Access to Information of Public Characterdemands huge devotion and a lot of hard work both by the Commission and the holders of information of public character.

In addition, in accordance with the opportunities provided by the Law on Free Access to Information of Public Character, last year, even 197 com-plaints, out of the total 330, the citizens had filed were against the state institutions. The dissatisfaction of the so-called silent rejection, or the requestedinformation not delivered in time, as well as the incomplete or partial argumentation of individual requests, citizens have manifested by filing other 37 com-plaints against political parties and 28 complaints against shareholders. Moreover, last year 15 more complaints were filed against public enterprises andinstitutions that have duties of a public interest, 11 complaints against educational institutions and one complaint against physical entity.



AGBIZ GRANTS FOR NINE MACEDONIAN AGRIBUSINESS COMPANIES

FROM $3.2 MILLION INVESTMENT TO EXPORT OF

OVER $28 MILLION

Last week, nine export-oriented compa-nies from Macedonia received grantsfrom the US government. Through the

pro gram for agriculture development, AgBiz,USAID agency gave grants to Macedonianfirms that are working with certain agriculturepro ducts like wine, fresh vegetables, grapes,forest products, and above all wild mush-rooms. The overall investment in relation withthe export projects is 3.2 million dollars, andthe project`s goal is to improve the competi-tiveness of the home enterprises. The grantsare expected to increase the export by morethan 28 million dollars by the end of 2010.

- The improvement of the com-pe titiveness and productivity is in im -portant step towards opening newjobs for the Macedonian citizens.The signing of these contracts marksthe start of the implementation ofthe se projects that will increase theex port and the share of the agricul-ture products on the Macedonianmar ket, bring benefit for many peo-ple and stimulate the sale of prod-ucts with increase value; it was po -inted out by Patricia Rader, directorof the USAID mission to Macedonia.

The Macedonian products poss-es good quality. The thing that lacksis organization of the production,says Darko Naskov from the com-pa ny Lars from Stip.

- At the moment we find oursel -ves on an important crossroad, theentire vegetable processing in dus tryis being faced with the problem fromthe energy price increase. We arefighting and each year this industry markstre mendous progress, which unfortunatelygo es unnoticed by the state institutions andthe Macedonian public. This is one of the fas -test growing sectors in Macedonia for which Ibe lieve it has future and can prove itself inthe export. We lack sound strategy in the or -ga nization of the production, timelines andqu antities that would be produced at the de -mand of our buyers, says Naskov.

He said our state had very good reputati -on on the foreign markets and added: ”Whenwe were starting this business few years ago,no body in America either heard of Macedoniaor our agriculture products. Now, eight yearsaf ter our set up, Macedonia is already makingits way as serious country that gives top qual-ity products and we will be focusing on im -proving that quality, and adding as much ashigher value to our products so that we cantake the strong position that Macedoniadeserves. “

We as firms-processors within the frameof our associations, says Naskov, believe wepro duce high quality vegetables, but theprob lems that Macedonia is being faced withare the finances and the planned production.That is why there is a necessity of a soundstra tegy, a link, which has been created byus, the processors of agriculture products,step by step for the first time with the farm-ers, so that a real product will be created inthe real time.

The company Lars was allocated with agrant at the amount of around 20 thousanddo llars, which will be used for equipment thatwill save us up to 30 percent energy during

the work, thus increasing the expert and thequality of our products. We have investedmuch energy in meeting the criteria for theAgBiz program in order to prove the tremen-dous value of this project along with USAID,explains Naskov.

Momcilo Ivanovski, owner of Bonum,com pany for production and processing ofcham pignons and vegetables gave us a com-ment.

- At the moment, the vegetable accountsmore than 50 percent of Bonum`s production.The company is export oriented i.e. over 90percent of the vegetables is exported intoEurope and outside Europe-Canada andAustralia. Last year, we had overall export ofaround 30.000 tons i.e. around 30 millioneuros. We as companies can export muchmore, but we are being faced with lack of rawmaterials. Our farmers want to sell their pro-

duction while fresh, and should theyfail, they prefer selling it to the facto-ries. That is the main problem in thedevelopment of this industry.

Ivanovski explains that the grantwill be used for completion of the im -ple mentation of EU`s ISO22.000stan dard, and certain sum of moneywill help increasing the sale on theworld markets, more precisely on theSer bian market.

- Our products are competitiveab road, although this type of busi-ness brings no high profits as in someot her business branches. Ne vert he -less, our products are worthy and de -man ded because they are grown andprocessed in clean environment witha lot of sunshine. others set the com-petitiveness, while we always have toadjust to the terms and prices deter-mined by the larger countries. Forinstance, Turkey is a large exporterand in some way sets the prices, and

the same goes to Spain and Italy, says theowner of Bonum, Ivanovski.

All in all, this kind of business is not veryprofitable, but it has perspective, since ascloser we get to the EU, the greater demandfor food from clean areas like Macedonia is.Increasing the profit of Bonum and the othercompanies from the canning industry is pos-sible only through cooperation with the farm-ers and the state. We insisted for the farmersto get certain aid and subventions, but only ifthey make contracts with the canning indus-try. Bonum is working at half capacity for timebeing, since we lack raw materials to utilizethe full potential. Furthermore, there will besufficiency of raw materials if there are morefarmers producing for the canning industry,not only for the green markets where theseproducts are offered fresh. They could reachsuch thing by increasing the arable landseeded with these plants so that they couldsurely make contract with certain canning

Nine Macedonian firms receive grants through USAID AgBiz program for agriculture development. The AgBiz grant contracts were signedby the following companies: Badzo, Lars, Vipro, Agros 2004, Kokolanski, Bonum Plus, Avto Ria, Dentina and Popova Kula

The program for stimulation of theMacedonian agriculture, AgBiz, is financed bythe American people through the United StatesAgency for International Development(USAID). It is a four year program with a budg-et of five and a half million dollars. This pro-gram also projects several other grants, themain goal of the program is increase of theeconomic growth of Macedonia throughincreased sustainable production and sale ofagriculture products with added value, whichcan be reached by promotion the capability ofthe producers and processors to compete atregional and global level.


industry. At the beginning of the year the gov-ernment went public with an announcement forallocating subventions for the farmers shouldthey sell certain amount of their crops to thecanning factories, says Ivanovski, but the state-ment was changed in last moment. Should thevegetable production increases, I am sure thatwe will also have higher profit, which is a goodthing for the state as well.

Viktor Petkov, owner and general managerof Vipro from Gevgelija, fruit and vegetable pro-ce ssing factory says the grant they have re -ceived will be used for completion of their newfac tor in the vicinity of the village of Prdeici,Gev gelija region.

- We will use the grant of 25 thousand dol-lars for rounding up the investment, make aworthy fruit and vegetables processing complexthat will enable us to absorb the surroundingpri mary production and process it into high qu -ality product that will be exported into the worldmarkets. In other words, we are making prod-ucts with high added value, so we managed topla ce our primary production of 10 thousandeu ros as a product of 50 thousand euros oreven in greater figures such as placing pro ce -sses products of one million euros as productsof five million euros. This serves as a clear ar -gu ment that our industry has perspective, sinceit creates higher value and enables much bro -ader employment rate, and not only in the pri-mary sector, but ion the other additional sectorssuch as labeling, transport, consulting etc. -says Petkov.

The Macedonia ajvar has been known forlong, even since the time of former Yugoslavia.In the past there were attempts by certain pro-ducers to plagiarize that brand as their own, butnow the Macedonia ajvar got the place it de ser -ved and we are present on the world market asa brand. The Macedonian ajvar is exported intocountries where the diaspora from southeastEu rope lives, in Switzerland, Germany, theScan dinavian countries, then in England, Ame -ri ca, Canada and New Zealand. We have twotypes of ajvar: industrial, made of boiled pep-pers, and domestic, made by original domesticrecipe. Lately, the domestic ajvar is more de -man ded, but again it depends on the marketwhe re the ajvar is placed. For instance, in Cen -t ral and West Europe, the ajvar is used as sidedish and that is why the industrial ajvar is morede manded, while in America and Canada, onthe other hand, the home ajvar is more de man -ded - explains Vipro`s owner.

Vipro`s products are exported mostly in theoversea countries - America, Canada andAustralia, but in Europe as well.

Now we are aiming at Scandinavia and Ru -ssia. Making breakthrough on foreign marketsis not an easy thing, since it takes minimumthree years from initial positioning to selling lar -ge quantities of any product.

The Macedonian products are competitiveon the foreign markets should they are madewith modern technology and have appropriatepa ckaging, appropriate price and appropriateap proach.

Vipro`s products are welcomed on theworld market and enjoy the same status as tho -se from Serbia, Bulgaria and Greece, said theowner of the company for fruit and vege tab lepro cessing from Gevgelija, Viktor Pet kov.

PROJECT- ASSESSMENT OF THE GOOD MANAGEMENTPOTENTIAL IN MACEDONIA

MAPAS, CUSTOMSADMINISTRATION AND MUNICIPALITY

VELES – GOOD MANAGEMENTACKNOWLEDGMENT

The Customs Administration of the Republic of Macedonia received acknowledgement inthe category of the state administration out of 26 institutions, Veles in the category local self-

government units and the Agency for Supervisory of Fully Funded Pension Insurance (MAPAS) inthe category other state administration bodies or organizations on a central level.

- In the frames of the Projects, the assessment of the good management in Macedoniaon the Foundation Institute Open Society (FIOOM), on 3 July, three institutions receivedacknowledgments on good management, announced the Customs Administration.

The Customs Administration of the Republic of Macedonia received acknowledgementin the category of the state administration out of 26 institutions, Veles in the category localself-government units and the Agency for Supervisory of Fully Funded Pension Insurance(MAPAS) in the category other state administration bodies or organizations on a centrallevel.

The level of professionalism, efficiency, expertness and administration training, em plo -y ment of the administration, rule of law, transparency, public procurements, financial man-agement and control were criteria for the competition. Commission composed of five mem-bers assessed the fulfillment of the criteria on the basis of filled forms by the institutionson the competition, and the evaluation of additional criteria.

The institutions which received acknowledgements on good management, submittedgrant application to FIOOM related with the good management. The project for electroniclearning submitted by the Customs Administration was approved as well as the project forpromotion of the cooperative social responsibility for the improvement of the environmentthrough participation of the community Veles and project for strengthening the capacitiesof the human resources submitted by MAPAS.

After the allocation of the acknowledgement directions and conclusions were estab-lished towards which the institutions should strive for in order to improve and to achievebetter results in the field of good management. Strengthening of the intern communicationand the institutions communications with the external subject was emphasized as well asimproved internal protection procedures in case of conflicts of interest, opportunity forobtaining feedback information by users of the institution`s services, as well as strength-ening of collection data system about the property condition of the employment in the insti-tutions.

Institution with best management

- Biljana Trajkovska, counsellor in the public relation office of MAPAS gives an expla-nation about the award in the third category of institutions for strengthening the capacitieswith human resources

- We took part in the competition and we received a form with around 30 questions.The Applications were assessed by an expert commission which also awarded it. MAPASwon in the third category – state institution, or the Agency, with highest marks for goodmanagement, which means that it applies the principles of transparency, the rule of law,equal representation and participation of all employees, team job.

Criteria for the award for good management are the following: 1. Rule of law, efficiency, education and administration`s professionalism and court

control – 40 percent. 2. Transparency, participation, response – 40 percent3. Financial management and control – 30 percent

Six institutions were in our category, 18 institutions in the category of communities,and four institutions in the first category.



R E V I E W O F T H E R E G I O N A L S T O C K E X C H A N G Efor the period 26.06. - 03.07.2008


1. ISRAELIS TO BUILD RESIDENTIAL PREMISES AND A BUSINESS CENTER INSTEAD OF ALUMINA (****)2. THIS YEAR WILL BE INESTED HALF A BILLION EUROS IN MACEDONIA (***)

03.07.2008 THURSDAY

Half billion Euros will be invested in Ma ce do -nia this year, is the prediction of Vienna Institutefor Economic Studies, Vecer reports. This institutefo recasts that Macedonia will end 2008 with halfbi llion Euros of foreign investment, which wouldbe the biggest level of foreign direct investmentsin the country since 2001. According to Viennains titute, Macedonia ended 2007 with 239 millionEu ros of foreign investments…The Institute pre-dicts that in 2008 investment increase will only ha -ve Albania, Macedonia, Poland, Romania, Lat -via…Except for Macedonia and Albania, for all ot -her countries in the region are predicted to havefall in this area…

Top news in all today’s papers is that NLB Tu -tun ska banka received the recognition for the bestin vestment bank in Macedonia for 2008 from theBri tish magazine, Euromoney, on the celebrationheld in Vienna. Euromoney recognition have beenawar ding to the best banks and financial instituti -ons throughout the world since 1992. The electionof the best is based on the business results, thevo ting and the assessments from the reportersand correspondents of Euromoney.

And, when it comes to the banks, there isanot her encouraging news for the users of banklo ans. Today all papers report the statement of thehead of Board of Directors of Ohridska banka,

Bernard Koenig, according to whom for the timebe ing their bank has no plans on introducing sig-ni ficant changes concerning crediting. Koenig po -in ted out that the strategy of Ohridska banka willnot change drastically concerning the inflationmo vements in the country. According to him, oneof the main goals of the member of Societe Ge ne -ra le is expanding the branch net and attracting asmo re clients as possible. Yesterday the bank ope -ned new subsidiary near Univerzalna Sala, cele-bra ting one year of the entrance of French SocieteGe nerale.

Today you will read that the government ac ti -ons for handling the oil shock have started. Thereis reduce of pay tolls and the fee for use of publicro ads that is charged with the vehicles registrati -on. The decisions will come into force once theyare published in Official Gazette.

Among the top news in the papers today is al -so the information that the oldest hydroelectricpow er plant in Macedonia, HEC Pena from Te to -vo, was put into operation yesterday. After thetwo -year redevelopment, the renewal made bythe Czech company, Hidropol, under which con-ce ssion are seven small hydroelectric powerplants in the country, has ended. Instead of thecur rent 2.5 MW, from now on Pena will operatewith installed capacity of 4.1 MW. Apart from in -

cre asing the capacity, increased has also beenthe efficiency for 90 percent, which improves thewa ter usage. The efficiency is also made automat-ic and can be controlled from distance.

According to the stock exchange analysis inBiz nis, MBI-10 is again with over 5.000 points.The Stock Exchange index MBI-10 yesterday tooin creased, but only for 0.61%. To be one day won-der on Macedonian stock exchange seems to bere peating. However, Macedonian companies atthe se prices are fundamentally cheap, and whe -ther after these three days the long-term down -ward trend will continue or not, is not up to the do -mes tic buyers who have not enough cash to ca u -se any big movements or expectations.

In the focus of the attention is also the newsabout Alumina. Its new owner if company GazitGlo be. The past eight years this company was theon ly bidder and in the fifth attempt to buy the facili -ty it offered 20 percent higher price than the start-ing one, and it plans to invest 100 million Euros inre sidential commercial center. This is one of thethree projects Gazit globe plans to initiate in Ma -ce donia, with overall value of 200 million Euros.The next two weeks the head executive director ofGa zit Globe will visit Macedonia and he will pres-ent the company’s future plans.


DNEVNIKp.5 HEC PENA WORKS WITH INCREASED POWERp.8 OHRIDSKA BANKA IS NOT GOING TO INCREASE THE RATES

OF INTEREST p.8 HALF A BILLION INVESTMENTS THIS YEARp.8 NLB TUTUNSKA BANKA - BEST INVESTMENT BANK p.8 STATE DIRECTORS SLEPT OVER THE PATRIOTIC FISCAL

RE CEIPTS p.8 THE PAY TOLLS AND VEHICLE REGISTRATION ARE GETT -

ING CHEAPERBIZNIS

p.1 MACEDONIA THE LAST ON THE LIST BY INVESTMENTS p.1 CHEAPER PAY TOOLS AND VEHICLES REGISTRATIONp.3 MACEDONIA THE LAST ON THE LIST BY INVESTMENTS p.3 GAZIT GLOBE NEW OWNERp.6 NEW CLIENTS FOR A GOOD GLOBAL PLAYERp.6 THE BEST INVESTMENT BANK IN MACEDONIAp.7 HEC PENA WITH 90 PERCENTS BIGGER EFFICIENCY p.7 VIP WITH TWO DENARS PER MINUTE TOWARDS ALL NET-

WORKS NONSTOPp.12 MBI-10 REACHED OVER 5.000 POINTSp.13 REVIEW OF TRADING - 02.07.2008p.13 GROWTH OF MBI-10 AND MBIDp.13 OFFICIAL MARKET RECORDS TURNOVER OF 18.8 MILLION

DENARS p.16 AUTOMOBILE BUSINESS CREDIT FOR BUYING BUSINESS

VEHICLE UTRINSKI VESNIK

p.6 HYDROELECTRIC POWER STATION PENA WITH DOUBLECA PACITY

p.7 LAST YEAR THEY RUBBED THEIR HANDS, AND NOW OIL TA -KES THEIR PROFIT

p.9 MACEDONIA ON THE LAST PLACE ACCORDING TO THE IN -VEST MENTS

p.9 ALUMINA IS TO BE SOLD TO GAZIT GLOBE p.9 NLB TUTUNSKA- BEST INVESTMENT BANK IN MACEDONIA

IN 2008p.9 OHRIDSKA BANKA IS NOT PLANING CHANGES IN THE CRE -

DITINGp.9 NOT A CHANCE FOR THE INFLATION THIS YEAR TO BE 5

PER CENTS

p.9 VIP PREPARED FOR NUMBER MIGRATIONVECER

p.6 THE POWER OF HEC PENA INCREASED TWICE AS MUCHp.6 FOR A CAR CHEAPER TOLL FOR 20%, FOR THE TRUCKS

30%p.6 NLB TUTUNSKA - THE BEST INVESTMENT BANKp.7 THIS YEAR WILL BE INESTED HALF A BILLION EUROS IN MA -

CE DONIAp.7 GAZIT GLOBE – NEW OWNER OF ALUMINAp.7 SIXTH BRANCH OPENED IN SKOPJEp.7 TWO DENARS PER MINUTE TOWARDS ALL NETWORKSp.7 VIP TO TEST THE SOFTWARE FOR MIGRATION OF TELE-

PHO NE NUMBERSVREME

p.7 CHEAPER REGISTRATIONp.7 OPERATION SUCCESSFUL, THE OPERATORS DEADp.7 MACEDONIANS GO TWICE POORER

VESTp.3 TUTUNSKA -THE BEST INVESTMENT BANK IN MACEDONIAp.5 THE PAY TOLLS AND VEHICLE REGISTRATION ARE GET-

TING CHEAPERp.7 OHRIDSKA BANKA TOO WILL INCREASE INTERESTSp.7 GAZIT GLOBE TO BUILD SHOPPING CENTER ON THE PLA -

CE OF ALUMINAp.7 MACEDONIA LAST ON THE LIST OF FOREIGN INVEST-

MENTS NOVA MAKEDONIJA

p.1 VELES SMELTERY IS NECESSARY, BUT ON OTHER LOCA-TION

p.7 GOVERNMENT DECREASES TOLLS AND REGISTRATION OFMOTOR VEHICLES

p.7 MACEDONIA WITH HALF BILLION EUROS OF INVESTMENTSIN 2008

p.8 TOPLIFIKACIJA BRINGS MBI-10 BACK TO OVER 5.000POINTS

p.8 ISRAELIS TO BUILD RESIDENTIAL PREMISES AND A BUSI-NESS CENTER INSTEAD OF ALUMINA

SPICp.8 INFLATION DECLINES, POVERTY SURROUNDS p.8 ALUMINA TO BECOME SHOPPING MALL p.9 THE OLDEST HYDRO POWER PLANT MODERNIZED



1. IDEAL SIPKA TO PRODUCE CHEESE TYPE PRESIDENT (*****)

2. AWARDS FOR THE BEST PORTFOLIO ON THE STUDENT STOCK EXCHANGE (****)

04.07.2008 FRIDAY


The connection of the theoretic knowledgeand practical work, yesterday were crowned withawards for the best portfolio on student Stock Ex -chan ge, informed today`s newspapers. Namely,Stevan Kenjeres is the most successful studentin the Project, Student Stock Exchange which vir-tu ally deals with securities. More than 1.000 stu-dents from the country took part in the Project tra-di tionally organized by Macedonian Stock Ex -chan ge. The euro ambassador Erwan Fuere findsthe Project connection of the student` gainedknow ledge and practice. The executive directorIvan Steriev, considers that the successful re -sults from the Project are stimulation to more for-ward and to work on other projects which the the-ory became a practice.

Biznis informs that the prices on the StockEx change begin to stabilize. After the last blackweak this one will be marked by stabilization ofthe share prices and indices. On Thursday allthree indices ended in the green zone: MBI-10was 0.71 percent or 5.049 points, the bond indexMBID was 0.39 percent and the last one, OMB en -ded on 0.25 percent.

According to Vest`s analysis, MacedonianStock Exchange reached the bottom but, there isstill a potential. Mihail Petkovski, a professor atthe Economic Faculty has the same opinion too,and according to him, it is unclear with whichspeed the market is going to be revitalized now.The professor says that the Stock market`s move-ment depend from factors which have economicand political base, and the result of the euro inte-gration processes, but estimates that the elec-

tions doesn`t influence the share prices. Thedirector of the Macedonian Stock Exchange, IvanSteriev pointed out that in all Stock Exchanges inthe region, including Macedonia too, there is a ro -om for growth and that the Stock Exchangeevents such as the price growth and later theprice decline doesn`t have to mean anything. – Itis important to see the companies` performanceson middle and long term period, their develop-mental perspective, the other are just investor`sperceptions that effects how close will be thestock exchange prices from the theoretic sharevalue, Steriev says.

Today you can read in more newspapers thatwith the USAID program, the agriculture willreceive 3.2 million dollars and it is expected by theend of 2010 the companies to result in increasingthe export of over 28 million American dollars.Contracts for allocation the Agrobis grants signedthe following companies: Badzo, Lars, Vipro,Agros 2004, Kokolanski, Bonum plus, Avto Ria,Dentina, and Popova Kula. The total investment isvalid around 3.2 millio American dollars.

Almost all newspapers convey the informa-tion that Ideal Sipka will produce French cheese.The dairy of Bitola, Ideal Sipka after ten yearssince the purchase negotiation start, integrated inthe Croatian dairy industry, Dukat, part of theFrench group Laktalis. The buyer of Ideal Sipkadoesn`t want to reveal how much money he paidto take over the dairy industry, second larger com-pany in Macedonia, which covers 17 percent ofthe domestic market. Dukat in the next threeyears announces investments of six million euros,

production capacity increase, new productionlines and technologies.

Utrinski conveys interesting story: urgent in -vest ments in the energy sector or too expensiveelec tricity. The West Balkan region, as well as theen tire South East Europe, in the next five yearswill constantly face with lack of electicity, due towhich its price will increase, the World Bankwarns in its last report. The situation is not so dif-fe rent in Macedonia. The last investment in thepast 20 years is HEC Kozjak, put in operation fouryears ago with power of 50 megawatts and an an -nu al electricity production of 160 million kilowattsper hour, for the needed of Skopje and Skopje`sre gion. According to the estimations from EVN-ESM, the Balkan can deal with energy crisis onlyif within the next 20 years, 10 billion euros are in -ves ted in new production capacities for electricityand if additional 5.8 billion euros for reconstruc-tion of the existing one are spent.

Utrinski informs that the oil exceeded 146 dol-lars per barrel. The oil from the North Sea reachednew record price as a result of the value reductionof the American dollar in relation to the competiti -ve currencies and tensions on the Middle East.On the London Stock Exchange trading, the Eu ro -pe an brent for shipment in august has been sell-ing for 146.34 dollars per barrel. The Americanlight oil also recorded price growth, which on theelectronic trading before the opening of the StockExchange in New York cost 145.43 dollars per ba -r rel.

DNEVNIKp.9 WE HAVE ENOUGH WATER FOR EXPORT p.9 CHAOS IN CAR POLICY SALE p.9 THE DEFICIT SURPASSED 1.1 BILLIONS OF DOLLARSp.9 DUKAT TO BUY IDEAL SHIPKAp.9 USAID`S DONATIONS INTENDED FOR THE AGRI-BUSINESS

BIZNISp.2 THE INFLATION IN MACEDONIA IS DOMESTIC ABOVE ALL,

AND NOT IMPORTED p.2 THE SMELTERY CAN MAKE INCOMES FROM 158 MILLIONS

OF EUROSp.3 IDEAL SIPKA TO PRODUCE CHEESE TYPE PRESIDENT p.12 MBI OVER 5.000 POINTSp.13 MBI 02.07.2008p.13 THE THREE INDICES IN POSITIVEp.13 STABILIZATION OF PRICES AND INDICES ON THE STOCK

EXCHANGE p.15 JOINT OF FIELD KNOWLEDGE AND PRACTICE p.15 THERE IS STILL POTENTIAL IN REGIONAL STOCK EX -

CHANGES p.15 DEVELOPMENT OF SAFE MARKETS – CONDITION FOR

FOREIGN INVESTMENTS p.16 NEW RECORD PRICE OF THE OIL OF 146.34 DOLLARS

UTRINSKI VESNIKp.8 URGENT INVESTMENTS IN ENERGY OR TOO EXPENSIVE

ELECTRICITY p.9 OIL PRICE EXCEEDS 146 US DOLLARS A BARREL, MAJOR

PLAYERS AT ODDSp.10 SUPERIOR FRENCH CHEESE WILL BE MADE IN IDEAL

SIPKAp.10 AWARDS FOR THE BEST PORTFOLIO ON THE STUDENT

STOCK EXCHANGE

p.10 FINANACIAL SUPPORT BY USAID FOR THE AGRI-BUSINESSVECER

p.6 IDEAL SIPKA WANTS TO BE LEADER IN THE REGIONp.7 BLACK RECORD FOR TEH BLACK GOLDp.7 STEVAN KENJERAS - BEST ON THE STOCK EXCHANGEp.7 US 3, 2 MILLION FOR THE AGRIBUSINESS

VREMEp.4 THE DEFICIT DID NOT SCARE THE BUSINESSMENp.4 ONLY GOD KNOWS WHEN THE STOCK EXCHANGE WILL RE -

VI VE p.7 OIL RECHES 146 DOLLARS p.10 SKOPJE RESIDENTS TO TAKE MATTERS IN THEIR HANDS

VESTp.6 THE STOCK EXCHANGE HAS REACHED THE BOTTOM, BUT

THERE IS A POTENTIALp.8 TELECOM NOT TO CALCULATE BACK PAYMENT INTEREST

RATE FOR JUNEp.8 IDEAL SIPKA TO PRODUCE FRENCH CHEESE

NOVA MAKEDONIJAp.7 MBI-10 RISES, BUT SLOWLY p.7 ANTI-INFLATION ACTIONS "LIMIT" OHRIDSKA BANKA p.7 SHTERIEV: THERE IS A SPACE FOR BIG INCREASE ON THE

STOCK EXCHANGEp.8 NEW RECORD OIL PRICE OF OVER 146 US DOLLARS A BAR-

RELp.8 DEFICIT OF 1.1 BILLION US DOLLARSp.8 THE SALE OF VELES SMELTERY TO BE CONTROLLED

SPICp.2 OIL PRICE RISES TO 146.34 US DOLLARS A BARRELp.6 PRESIDENT CHEESE TO BE PRODUCED IN BITOLA p.6 KOSMOFON CHEAPER FOR THE PERSONS WITH SPECIAL

NEEDS




1. SWISSLION TO INVEST €10 MILLION IN AGROPLOD (****)

2. RUSSIAN COMPANY TO MAINTAIN REK BITOLA BLOCKS (***)

05.07.2008 SATURDAY

The modernization of the production ofSwis slion – Agroplod, which will enable conqu -e ring new markets, is a topic which was pub-lish ed in all Saturday editions of the print me -dia. By the year 2010, Swisslion - Agroplod willin vest 10 million euros in the company. The lar -gest investment of 4 million euros are plannedfor reconstruction and modernization of the ca -pa cities for production of Agrokrem, 2 millioneu ros for production of coffee and 2 millioneuros for installing modern assembly line ineach of the two new capacities for the new pro -ducts. This dynamics is a continuation of thetwo year investing in Agroplod after the entry ofSwisslion into the most profitable productioncen ters for raw materials and final products.Com pany`s management is convinced that theplans will be realized opposite the current prob-lems regarding the ownership structure. Na me -ly, Swisslion has filed a request to the Con s ti -tutional Court for reinvestigation of the decisionof the Securities and Exchange Commissionthat limited their right to vote to 5,339 shares inSwisslion - Agroplod in Resen, because theyfeel that the Securities and Exchange Com mi s -si on does not have jurisdiction to pass tempo-rary measures for limitation of the right to vote.

REK Bitola and a Russian company signeda cooperation agreement in Moscow yesterdaywhich projects joint implementation of the pro-gram for long-term development of the Bitolamining and energy complex. According to theannouncement of ELEM, which was publishedin the newspapers, the Agreement projects con-sistent enforcement of actions for securinglong-lasting and efficient work of the energy

blocks of the thermo-power plant for the periodto 2025 and readiness of the Russian companyto secure any kind of technical and financialsupport for realization of that assignment.

There was not a single interest buyer at thelast public bidding for Zito Bitola, the newspa-pers inform. According to official receiver JosifDi mitrovski, the procedure will continue, butthe trustees are not interested in lowering thepri ce. The initial price of the property of Zito Bi -to la is 7.6 million euros, and the official receiv-er informs that new public tender for sale of thefirm through public opening of bids is soon ex -pected.

New oil price increase in this country onMonday. Then the Energy Regulatory Com mi s -si on will decide for how much it will increase theprice of oil derivatives, Nova Maedonija publi -shed. The price raise is inevitable should wetake into consideration the fact that the oilreached a price of 146.3 US dollars a barrel.The article in today`s edition of Dnevnik titled“Cars on methane drive more economically andeco logically”, where it is read that use of me -thane as car fuel is much more economical andecological in respect with the oil derivatives, isalso interesting. It is a matter of an exceptional-ly pure fuel, with a very low emission of harmfulgases, even in comparison with the propane-butane or the auto gas, which is very used inour country. The Government recently an no un -ced that it would stimulate the use of the me -thane as one of the measures for absorbing theoil price shock. Its current price is 21.9 denarsper square meter.

Stopanska banka AD - Skopje is chosen

The Best Bank in Macedonia for 2008 by theBritish financial magazine Euromoney, it is readin bank`s announcement, which was publishedin today`s edition of the daily newspapers. Theawards for the best in the banking sector arebased on achievements based on the total per-for mances, excellent services for clients, inno-va tive products, application of top standards ofcor porative management and leadership in thefi nancial sector. Stopanska banka wins thispres tigious acknowledgement for the second ti -me.

Vecer relays the news from the Croatianmedia that, as of 1st of July, the company Ingrais the owner of the Skopje-based companyMav rovo Engineering, which was formed as ase parate company in the period when AD Mav -ro vo had problems. With this deal worth 2.5 mil-lion euros, Ingra additionally strengthened itspo sition in Macedonia and the region, becauseMav rovo Engineering is a company with experi-en ce in planning, projecting and performingcon struction works.

You can read in the same newspaper thatthe regional telecoms are paying higher divi-dends than in Western Europe. This fact, ac -cording to the regional analysts, is because thete lecoms on the Balkans, as former monopoli -es, are more attractive for investments than si -mi lar Western European companies. In additi -on, the fact that dividends of nearly 100% willbe paid in the telecoms where Deutsche Te le -com is interesting. On the other hand, the sha -re holders in Macedonian Telecom still have notagreed on the percent of the dividend which willbe divided.


DNEVNIKp.11 RUSSIANS TO MODERNIZE REK BITOLA p.11 CARS ON METHANE DRIVE MORE ECONOMICALLY AND

ECO LOGICALLY p.11 МBI 04.07.2008

UTRINSKI VESNIKp.3 BOTH CINGOVSKI AND LAZAROV WERE WORKING WITH

MANY IRREGULARITIES p.7 МBI 04.07.2008p.7 RUSSIAN COMPANY TO MAINTAIN REK BITOLA BLOCKSp.7 MINCO JORDANOV, HEAD OF THE BETON`S BOARD OF

DIRECTORS p.7 FOREIGNERS DO NOT RUN AWAY BUT YET DECREASE IN

NUMBER IN OUR TOP COMPANIES p.8 SWISSLION ANNOUNCES NEW INVESTMENTS IN AGRO-

PLOD p.8 STOPANSKA BANKA – THE BEST BANK IN MACEDONIA p.8 AGAIN - NOBODY INTERESTED TO BUY ZITO BI-TOLA

VECERp.6 INGRA TAKES OVER MAVROVO ENGINEERING

p.6 DEUTSCHE TELEKOM IN MACEDONIA OFFERS HALF DIVI-DEND

p.7 ZITO BITOLA REMAINS WITHOUT BUYER p.7 SWISSLION TO INVEST €10 MILLION IN AGROPLOD

VREMEp.6 МBI 04.07.2008p.10 WE ARE NOT POLLUTING THE ENVIRONMENT!

VESTp.7 SWISSLION AGROPLOD TO MAKE MACEDONIAN BAJADERA p.7 TELECOM EXPENSIVE FOR VIP, CHEAPER FOR COSMOFON

NOVA MAKEDONIJAp.7 FUELS NO DOUBT GO UP IN PRICE, BUT FOR HOW MUCH?p.7 KOMERCIJALNA BANKA SHARES DRIVING FORCE ON THE

STOCK EXCHANGE p.8 MINCO JORDANOV – HEAD OF BETON`S BOARD OF DIREC-

TORSp.8 SWISSLION FIGHTS FOR SHAREHOLDER`S RIGHT TO VOTE p.8 EUROMONEY: STOPANSKA BANKA IS THE BEST BANK FOR

2008p.8 RUSSIANS TO MAINTAIN REK BITOLA UNTIL 2025


KAPITAL

Pg.10 AUSTRALIANS TO EXPLORE URANIUM ON SELECKAMOUNTAIN

Australian company Universal Mining filed request for concessionfor exploration of uranium on Selecka mountain, the honored consulof Macedonia to Australia, Zoran Koseski, informs, who togetherwith group of businessmen from Perth visited Prilep today.

Pg.20 AMBASSADOR VALERO REAPS WHAT HAS NOT SOWN Even before to start to realize, the decision of French car compa-

ny Montipe to invest in Macedonia, caused conflict betweenMacedonian government and the Embassy of France in Macedonia.The conflict refers to whose benefit was the decision the French toinvest in Macedonia.

Pg.22 AGROPLOD WAS DEVALUED BEFORE THE DISPUTEDSELLING OF THE SHARES OF SWISSLION

I really hope things will settle taking into consideration the exis-ten ce of auditing reports, commissions and state organs in Ma ce do -nia, which confirm that Swisslion is clean and that we bought Ag ro p -lod legally, businessman Rodoljub Draskovik, owner of Swisslion,said last week for Serbian media.

Pg.26 WITH 3G AND WIMAX TECHNOLOGIES WE WILLSTRENGTHEN THE LEADING POSITION ON THE MARKET

Germanos group, the main bearer of the expansion of subscrip-tion net of Greek Telekom operator Kosmote in Greece, Bulgaria,Romania and Macedonia, has achieved impressive results last year.Then number of new subscribers in Kosmote in 2007 is 1.2 millionsor 50% more than the year before, and Germanos group has madeprofit of 992.6 million Euros.

Pg.28 THE REAL UNEMPLOYMENT RATE IN MACEDONIA IS26%

In the first quartile of the year registered were 319.912 personsas unemployed. With this the official unemployment rate inMacedonia is 34.8% which makes us record holders in Europe.

Pg.32 MACEDONIAN BUSINESS COMMUNITY UNITESGunter Offner, president of the European business association,

last week presented the Memorandum of the Macedonian businesscommunity, an initiative which main goal is to intensify the communi-cation between the Government and the business community in orderto improve the conditions for running a business and to seed up theeconomic growth.

Pg.36 INSURANCE IS NOT THAT EXPENSIVE AS FARMERSARE NOT INFORMED

Two years ago when the vine plantations with indigenous sorts ofgrape on Korcupa and Pepesec were completely destroyed, Croatiangovernment decided to take strategic actions to solve the problemswhich were caused by the common natural disasters, which weredestroying the agricultural harvest.

Pg.40 CONTROLLING SALE PACKAGE WILL BE FORMED BYTHE END OF THE YEAR!?

Last week the Supervisory Committee of Stopanska banka Bitoladecided to expend the deadline for forming block of shares of at least51% from the bank’s asset. Instead of June 30th, date that alreadypassed, the deadline for forming controlling package, according tothe decision of the Supervisory Committee of Stopanska banka-

Bitola, is extended until the end of the year, or December 31st.

Pg.41 “KVASARA BITOLA” TO EXPORT ON THE RUSSIANMARKET

The only factory for baking powder production in Macedonia willbe exporting in Russia, the state news agency MIA reports. “We willexport as many as 70% of the production of baking powder and alco-hol on the Russian market, and the rest in Albania, Bosnia andHerzegovina, Serbia, Kosovo, Greece and Hungary”, Ivanco Na -umov, manager of the baking powder and alcohol factory - Bitola,said.

Pg.42 THE INDEX INCREASES AFTER GOING DOWN FORENTIRE MONTH (23.06-27.06.2008)

The first four trading days of last stock exchange week passedsame as the previous few weeks- with continuous fall of the index,which from Monday until Thursday lost 6.13% of its value.

Pg.43 TROUBLES IN COMMUNICATION Our Prime Minister seems to be using lot more the practice of not

showing on events which he is announced to attend. Without gettinginto analyses whether the reasons for this lie in the personal featuresor in the disorganization of his protocol, such manifestations leavebad impressions.

Pg.44 WE WILL BUILD STRONG BANKING BRANDIt has been more than half year since Bulgarian financial holding

Alfa Finance took over International and private bank and started itstransformation, first with changing the name into Kapital bank, andthen with changes in the bank’s internal management, as well as withthe adoption of new strategy for development and breakthrough onMacedonian banking market.

Pg.49 TONS OF WASTE COLLECTED WITHIN THE CAMPAIGN“SAVE THE NATURE”

Eco-campaign under the motto Save the Nature, organized at theinitiative of the employees of ProCredit bank, was successfully real-ized in all planned locations - Strumica at dam Vodoca, Tetovo-SarPlanina, Ohrid- the city beach and quay of river Vardar.

Pg.49 NO DIVIDEND FOR THE SHAREHOLDERS OF OHRIDS-KA BANKA

The shareholders Assembly of Ohridska banka decided this yearnot to share dividend to the shareholders. According to the passeddecision for allocation of profit of 1.52 million Euros made last year,15% form the income is allocated for obligatory reserve fund, while85% stay as unallocated profit.

Pg.49 STOPANSKA BANKA PROVIDES SUMMER MICRO BUSI-NESS LOANS

By the end of September all applicants for Instant, Express, Microor OK loan receive opportunity to get loans by the lowest interestrates, Stopanska banka announces.

The promotional interest rates will apply for four to six monthsdepending on the credit product.

Pg.54 OIL PRICE WITH NEW RECORD OF 143 DOLLARSAt the beginning of the week the oil prices reached new record,

exceeding the level of 143 dollars per barrel, after the increase ofalmost 4% one day before, stimulated by the new rush of theinvestors on the raw materials market, as result of the prices depre-ciation on the global share market.

1. SHORT REVIEW IN THE WEEKLY MAGAZINES

30.06.-05.07.2008 MONDAY-SATURDAY




EVENTS THAT MARKED THE WEEK...

European Bank increases base interest rate The Board of Governors of the European Central Bank at its session on June 3 in Frankfurt

increased the basic interest rate by 0.25 percent to the level of 4.25percent, as part of the meas-ures for curbing further inflation increase in the Eurozone.

The President of the European Central Bank, Jean-Claude Trichet, stated that the bank wasforced to such move in order to deal with the high inflation, which is the main threat for the econ-omy in the Eurozone. Trichet emphasized that the bank`s 21-member board of governors couldcontinue increasing the base interest rate in the period to come should such thing is required fortoughening the monetary policy.

According to the European Statistical Agency, the inflation rate in the Eurozone reached fourpercent at annual level in June, which is double the maximally allowed inflation of two percent setby the European Central Bank.

The base interest rate of the European Central Bank hadn`t been changed for entire 12months and now it is double the interest rate of the US Federal Reserve System. Among thedeveloped countries, Japan had the lowest base interest rate of 0.5 percent.

EUROPEAN FINANCIAL MARKET

ACCORDING TO EUROMONEY, FOR 2008 IN MACEDONIA

Stopanska Banka AD – Skopje – the best bank in thecountry

Stopanska Banka AD - Skopje wins this prestigious award for the second time, after it was chosenThe Best Bank in Macedonia for 2007 by EUROMONEY. The awards for the best in the banking sector arebased on achievements based on the total performances, excellent services for clients, innovative prod-ucts, application of top standards of corporative management and leadership in the financial sector

Stopanska Banka AD - Skopje is chosen The Best Bank in Macedonia for 2008 by the Britishfinancial magazine EUROMONEY. The awards for the best in the banking sector are based onachievements based on the total performances, excellent services for clients, innovative prod-ucts, application of top standards of corporative management and leadership in the financial sec-tor.

Stopanska Banka AD - Skopje wins this prestigious award for the second time, after it waschosen The Best Bank in Macedonia for 2007 by EUROMONEY.

The award by EUROMONEY, which was presented to the managerial team of StopanskaBanka AD – Skopje at a ceremony held in Vienna on 1st of July, is a deserved acknowledgmentfor the good working and the efforts for satisfying clients` needs, but it also presents a challengefor continuing with the application of the European work standards. The bank`s successful teamcontinues working for the clients and on meeting the financial requirements as the most stablepartner in the achievement of their wishes, ideas and plans.

NLB Tutunska Banka – the best investment bankThe famous British magazine for international financial markets and institutions Euromoney gave NLB

Tutunska Banka recognition for best investment bank in Macedonia for 2008. On the ceremony held in Viennaon 1st of July, the magazine`s expert team gave three recognitions for excellence (to NLD Ljubljana, NLBMontenegro Bank and to NLB Tutunska Banka - Skopje) to representatives of the NLB group.

The recognitions from Euromoney are known are independent since 1992, and are given tothe best banks and financial institutions throughout the entire world. The election of the best isbased on the business results, the voting and the scores by the journalists and the reporters ofthe magazine.

NLB Tutunska Banka won the award for best investment bank through its brokerage houseNLB Tutunska broker, where the bank has capital share of 100%. NLB Tutunska broker is estab-lished in 1996 as organizational unit in NLB Tutunska Banka, and from 1998 it functions as inde-pendent legal entity.

- NLB Tutunska Banka is one of the oldest and most attractive associations for stockexchange intermediation, co-founder of the Macedonian Securities Stock exchange, and it alsogave significant contribution in the development of the capital market in Macedonia. We are gladthat our work and efforts are acknowledged by the international public - says Gjorgji Jancevski,CEO of NLB Tutunska Banka - Skopje.

Tomas Mirow takes overpresidency over EBRDThe German Thomas Mirow on July 4 offi-

cially assumed the EBRD Presidency, succeed-ing Jean Lemierre, who had been on the helm ofthis financial institution for the past eight years.Mirow was named EBRD President on thebank`s annual conference that took place in theUkrainian capitol, Kiev, May 18 and 19.

Up until now, Mirow served as StateSecretary at the German Finance Ministry,where his responsibilities included national andinternational financial market policies and theactivities of international financial institutionsand multilateral development banks.

Speaking on his first day as President, MrMirow praised the countries in the EBRD regionfor, as he said, “the remarkable progress theyhad made”.

- The road ahead remains difficult. There ismuch to do. The EBRD is equipped and morethan willing to be a long-term partner for thesecountries as they evolve into fully-fledged mar-ket economies, stated Mirow.

EBRD was set up at the beginning of thenineties for the purpose of speeding up the tran-sition of the former communist states from EastEurope towards the market economy.

European banks short offrom 60 and 60 billion euros

-The European banks are in need for raisingcapital from 60 top 90 billion euros to maintainthe current level of financial working in state ofcrisis on the global credit market, stated theinvestment house Goldman Sachs (London,July 4)

Goldman Sachs experts estimate that themain reason for increased worry among thebanking investors is the reduced credit activityand the pressures the banks are put on due toenforced control over their working by the com-petent organs.

-Should the monitoring over the work tough-ens, the banking sector could regain the levelfrom the beginning of last decade, reads Gold -man Sachs report and adds that is such thinghappens the European banks will be in a needof additional capital for securing stabile working.

The leading European business banks, likethe Swiss UBS, the French Pariba and SocieteGenerale and the British Royal Bank of Scotland(RBS) have already announced losses at tens ofbillions of euros for this year.

The market value of the shares of thelargest banks, as wee as of a number of otherfinancial organizations in the opening sixmonths of the year have been significantly re -duced in relation with August 2007 when the USsubprime mortgage crisis started.



W E E K LY R E V I E W O F M A C E D O N I A N S T O C K E X C H A N G Eperiod 30.06. - 04.07.2008

MKBN20080707-0030E

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