b e r z N I K - YEAR II - NUMBER 21 -05th MAY 2008 - (SUPPLEMENT OF TENDERNIK)

MACEDONIA DESERVES TO
BE IN THE EUROPEAN FAMILY
Date 05.05.2008 number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
Macedonia deserves to be in the
European family
- The Union as a global player will manage to
include the countries candidates. – On no cost one can
not allow for the Balkan to become a black hole and to
be outside the European Union, considers the president
of Slovenia Danilo Tirk, the country that holds the EU
rotating presidency. According to him, the Republic of
Macedonia has a status of a candidate country and has
received enormous support, which will continue to be
enjoyed from here on.
His stance is supported from the majority of the
presidents that were guests of the Macedonian presi-
dent Branko Crvenkovski. And, according to them, the
name of Macedonia can not be an obstacle for the
admission of the country in the Euro Atlantic structures;
Macedonia operates very well, which is important for the
whole region, and because of that, EU should initiate the
negotiations with this country. The region of Southeast-
ern Europe will be stabile only with the integration in the
EU and NATO. These
- No one is owner of the European Union and conclusions from the
therefore no one can be excluded from this process, Summit of the presi-
considers Vatzlav Claus, the president of the Czech dents, that has been
Republic. The Hungarian president on the other side, held this weekend in
Lazlo Shojom calls on – the Union must stay open for Ohrid, regardless of the
all the countries that have met the criteria and the fact that by its essence it
standards. has a political content,
These are a part of the opinions, stances and the berzNIK points them for-
commitments for the future expansion of the Union ward because we have
from the 17 presidents of the countries from Central to agree that their real-
Europe, whose host has been the president Branko ization is the basic ele-
Crvenkovski in the last weekend in Ohrid. For the ment for the economic
challenges from the expansion of EU have talked the growth not only of Ma-
presidents of Croatia, Moldova, Bulgaria, the Czech cedonia but of the whole
Republic, Montenegro, Slovakia, Serbia, Austria, region, which only with
Germany, Ukraine, Poland, Bosnia and Herzegovina strong economy can be
and Albania, Romania and Italy. integrated in the Euro-
That the Republic of Macedonia belongs in Euro- pean family.
pe, the Prime Minister Nikola Gruevski believes that - In the European
it is going to be confirmed by the parliamentary electi- home there is a place for
ons and the results from the same. After them Mace- everyone that has been
donia will continue to work strongly on its economic prepared to share the
development and political stability and therefore common democratic val-
deserves to be found in the big family called the Eu- ues and responsibilities,
ropean Union. and your participation
on the Summit will rep-
resent strong and clear
signal to the citizens of our countries that the process of
uniting Europe still continues, pointed out the president
Crvenkovski on the opening of the 15th Summit of pres-
idents of countries from the Central Europe. He does not
miss to emphasize that the – Individual interest of one
member – state connected with the bilateral dispute with
our country has imposed over the collective interest of
the Alliance and of the basic principles upon which the
organization itself rests. – Macedonia is a country that
has never generated instability in wider surroundings.
Macedonia, on the regional plan is already profiled as a
promoter and supporter of the regional projects and ini-
tiatives, with a purpose for the common European val-
ues and standards to become a part of our stance as
quickly as possible, pointed out Crvenkovski.
A thesis that the Prime Minister Gruevski comple-
mented: The countries from the Central Europe are
proven friends of Macedonia. – To the challenges of the
21st century can only be responded commonly and
organized. A big part of these questions, such as the
economic prosperity and the energetic stability, that
although not in the same measurement and in the same
moment do not concern us, are questions on which we
can only respond together.
The Macedonian Prime Minister reminded the state
officials once again – Our firm European and euro
berzNIK
3
Atlantic determination has been demonstrated through
implementation of the various reforms in the defense, in
the economy, the judiciary, the education, in the agricul-
ture, by synchronizing the legislation with the European
directives and with the consistent fulfillment of the
assumed international responsibilities.
The blockade politics towards which our neighbour
has turned, that prevented the deserved invitation of
Macedonia for membership in NATO and with which it
stands on the way of the integration in the EU, as point-
ed out by Gruevski, actually presents a blockade of the
realization of the interests of the principles and values of
NATO and EU.
- We look at EU as a family with diverse nations that
work together, where the interest of every nation is
respected and in which the cooperation rests upon the
solidarity. Macedonia wants to enrich that community of
values, with its own language and national identity,
added Gruevski.
And the special guest on the Summit, the president
of the Republic of Turkey, Abdullah Gull, speaking
before his colleagues, said – I do not doubt that our
message for United Europe from here, from Ohrid, from
the heart of the Balkan will touch the European people.
The consolidation of the permanent peace and stability
in the region, as an integral part of Europe, is an impor-
tant challenge for its total integration.
In the last week, besides the high meting of the
state officials, in Macedonia has been held a round table
on the subject: Promotion of Macedonia in the world –
following steps and challenges, in the organization of
the Foreign investments agency. An event on which the
ambassadors of the foreign countries in Macedonia
were present, with their own assessments, comments
and proposals how to continue with the campaign
–Invest in Macedonia, in the future. This government
campaign, by which our promoters, through the diplo-
matic representations throughout the countries in the
world represent our country, has started around months
ago. Until now, around 175 foreign companies have vis-
ited Macedonia and are interested to start a business,
but from them only several companies have invested in
Macedonia.
The week between the two holidays has been
marked by the newest analysis of the European com-
mission about the movement of the prices, the growth,
the unemployment and the other indicators important for
the economic health in Europe. According to the analy-
sis, the increase of the prices of the food and of the
energy do not make the European forecast pink for EU
this year, and for Macedonia also. According to the data
announces by the Economy commission, Macedonia for
this year will have a record inflation rate of 6%, in rela-
tion to last year when it amounted only 2.3%. The
Macedonian inflation rate will be bigger from the one in
the European Union too (3.8%), but the forecasts of
Brussels are that already from the next year it will be
stabilized and it will again fall on 2.7%.
This trend will also follow Croatia and Turkey, the
remaining two candidate – countries for membership,
but the common impression will improve the economic
growth which for Macedonia for this year is being pro-
jected to 4.8% and 5.5% for the next year.
On the securities market last week, the small offer
and the small demand were common.
Until the next Monday
Makedonka Baldazarska
BerzNIK editor-in-chief
e-mail: berzNIK@interNIK.com.mk
 4 berzNIK
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
IN THE FIRST QUARTER OF 2008
During the last working days of April, four-
teen companies have announced their non-
audited financial reports of the Stock
Exchange. According to displayed income
statements, these companies indicate positive
results, although compared with the same peri-
od last year. The quarter profit at some of them
is reduced, above all due to raw materials` price
increase. Beside Komercijalna Banka, which
has one hundred percent bigger financial result
compared with the same period, last year, there
are the profits of Alkaloid and Makosped.
KOMERCIJALNA BANKA
WITH 100% GREATER
FINANCIAL RESULTS
The realized financial result of 419, 5 mil-
lion denars for the period of 01.01-31.03.2008
is for 105% greater than the realized positive
financial result in the same period last year.
The bigger amount of the realized positive
financial result compared with last year is a
result of the increased profits from the regular
operations (profits from interest, commission
and compensations), and from bigger amount
of profits from unpaid dubious and disputable
claims, profits from securities as well as
smaller volume of separated reservation for
the first three months of 2008. Namely, in the
first two months of 2008 significantly higher
profits have been realized from unpaid bal-
ance claims. Also the separated reservation in
the first three months of 2008 is significantly
smaller compared with the higher amount of
the separated special reservation in the first
three months of 2007 due to harmonization
which last year was made with the Decision
on Amendments of the Decision determining
the methodology on active balance and off-
balance classification of banks according to
their risk level.
MAKSTIL CARRIES OUT QUANTITATIVE
PRODUCTION PLANS
The business report in the first quarter of
the business 2008 of Makstil AD Skopje high-
lights top production dynamics and fulfillment of
the set quantitative targets in the two produc-
tion plants.
The production in the production plant
Celicarnica is bigger than the planned produc-
tion by 3.08%, i.e. by 3.75% in comparison with
the production in the same period last year. The
value of the indicator is even bigger if the high
comparative basis in 2007 is taken into consid-
eration. The planned production of hot rolled
thick steel plates has been fulfilled, and the
increase in comparison with the last year’s
quarterly achievement is 13.4%.
After the initial visual evaluation, the quality
of the manufactured steel semi-products in
Celicarnica is by 4.2 percent points better than
planned and by 2.7 percent points better than
after the completed preparation for further pro-
cessing.
The quality for the manufactured hot rolled
thick steel plates is also better by 0.2 percent
points than the highly target level for 2008.
number 21
KOMERCIJALNA BANKA, ALKALOID, MAKOSPED AND
MAKPETROL WITH BIGGEST POSITIVE
BALANCE SHEETS
In the first three months, Alkaloid realized
net-profit of 107.421 million denars, which rep-
resent an increase of more than 30 million
denars compared with the same period last
year i.e. for this period, last year Alkaloid real-
ized net-profit of over 68 million denars.
According to numbers from the income state-
ment the profit is a result of the increased oper-
ative profits of 18.524.000 to 48.231.000
denars. Finished products reserve sector and
the production sector record great positive
change, of 65.080.000 denars compared to
negative balance sheet statement, the same
period, last year. Pharmacy Company records
positive difference in operations in relation to
last year which increased this year up to 142,
85 million denars.
TD Makosped records drastic positive trend
of its operation this quarter compared to last
quarter. The net-profit of the company from 3.37
million denars had increased to 2137.79 million
denars. This positive jump is due to enormous
increase of the assets from the other profits
which is more than 148 million denars (last year
was around two million denars). The company
informs that this difference emerging in the non-
audited profit and loss sheet for this trimester in
the item of other profits compared to 2007 is
due to sale of the shares in Makosped osiguru-
vanje, realized in the first quarter of 2008.
Makpetrol also records big difference in the
first months compared to last year. This compa-
ny`s net-profit is 35, 703 million denars, com-
pared with the negative balance of 16 million
denars last year. Makpetrol informs that the
realized profit in the past three months of this
year is a result of the bigger profit compared
with the same period last year.
The use of the scrap metal as a basic
metallic raw material is in accordance with the
standardized proportion which also goes for the
use of the slabs in the Rolling Mill for production
of thick plates. The market opportunities are
extremely favorable, i.e. top market conditions
for the products from the production commer-
cial program during the entire quarter.
As a big consumer of electricity, the compa-
ny is faced with unprincipled and discriminating
price policy by the energy authorities in this
country, as well as with serious problems in pro-
viding of the necessary transport capacities, fol-
lowed by frequent reticence of the Thessalonica
harbor as main transportation destination.
The fact that the higher level of effectuated
incomes from sales has been achieved even
with an unfavorable structure of the delivered
quantities from an aspect of the contained valu-
able component which is a result of keeping of
continuous favorable price relations should be
pointed out. Carrying out of the large invest-
ment action of the one of the furnaces in the
Rolling Mill, installing of a new furnace with sig-
Date 05.05.2008
The first months of this year are positive for
Komuna too. The company realized positive
balance of 6.9 million denars this year against
the negative balance for the same period last
year.
Makedonijaturist ends the first quarter with
net-profit of 41.957 million denars, Teteks,
Tetovo ends the year with net-profit of 3.6 mil-
lion denars while Makoteks records positive
balance of 1.58 million denars.
RZ Uslugi also records positive profit and
loss sheet with net-profit of 4.33 million denars,
Vitaminka, Prilep records 8.5 million denars,
OHIS, Tehnometal Vardar and DG Beton has
profit of 5.57 million denars. Typically for these
companies is that although they`ve realized
positive profit and loss sheet in during these
three months, this profit compared to the same
period last year is lower. Construction Company
Beton records this reduced profit.
BETON WITH LOWER
PROFITS IN THE FIRST
THREE MONTHS
The construction company informs that in
the period of 01.01 to 31.03.2008 DG Beton
a.d. realized lower financial result compared to
the same period, last year which is a result of
the increased operating costs caused by enor-
mous price increase of strategic materials and
certain services. Namely, there was enormous
price increase of the armature iron and the
products of ferrous metallurgy (50%), oil,
transport, and other services.
nificantly bigger heating capacity and signifi-
cantly improved specific energy consumption,
without disruption of process mission’s produc-
tion rhythm is planned for the forthcoming peri-
od. The reconstructed cooling system and inner
transportation of the plates has also been put in
use in order to prevent damaging of plates’ sur-
face, and several projects for improvement,
development, and increase of the production
are also being prepared. The activities for
improvement of the performances of the rolling
mill, as well as reengineering of the basic
mechanical parts of the line of the shears and
integration of a mechanical system of dimen-
sional molding during the final operations are
also ongoing. The package of activities regard-
ing the application of an integral ecological per-
mit, as well as the implementation of the ISO
14001 standard, should solve the problem with
the emission of all kinds of pollution in the air,
the water and the soil, as well as to solve the
temporary storing and recycling of the solid and
liquid wastes, for which purpose, an operative
plan with a dynamics of realization of the
emphasized activities and financial construction
of the same has been prepared, is in a phase of
the realization, i.e. the activities targeted for the
first year of its implementation are ongoing.
 Date 05.05.2008 number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
1. SHORT REVIEW OF EVENTS
C O N T E N T S
Macedonia this year will have record inflation, is the
headline with which Utrinski Vesnik starts the working
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . 3 week after the Easter holidays.The food and energy pri-
ces raise does not make the economic prognosis for the
STOCK EXCHANCE NEWS. . . . . . . . . . . . . . . . . . . 4 EU this year optimistic, but for Macedonia as well- it is
the result of the Bruxelles latest analyses on price fluctu-
berzNIK, MONDAY, TUESDAY, WEDNESDAY..... 5-7 ation, growth, unemployment and other indicators impor-
tant for the European economic health. According to the
PROMOTING MACEDONIA IN THE WORLD- announced data by the Economic Commission, Macedo-
nia this year will have a record inflation of 6%, compared
NEXT STEPS AND CHALLENGES. . . . . . . . 8-9 to last year when it was 2,3%. The Macedonian inflation
will be higher than one in the Union (3,8%), but the Bru-
ZORICA APOSTOLOSKA- DIRECTOR OF xelles estimates are that the following year it will stabili-
MAPAS.......................................10-12 ze and fall to 2,7 per cent.
Such tendency will follow in Croatia and Turkey, the
berzNIK, FRIDAY, SATURDAY...............13-14 remained two candidate states, but the general impres-
sion will improve the economic growth that for Macedo-
WEEKLY MAGAZINES...…....................15 nia this year is projected for 4, 8 per cent, and for the fol-
lowing year for 5, 5 per cent.
WORLD STOCK EXCHANGES.................16-17 In today’s newspapers you will read also: The Go-
vernment with tied hands for the wheat import. In times
WEEKLY REVIEW OF THE MACEDONIAN when major part of the countries import wheat, in order
STOCK EXCHANGE............................18-19 to meet the new possible rise up in price of this basic ali-
mentary product on the world stock markets, our Go-
vernment has tied hands to take the same step.
This is a period when it’s getting clear that the end
of the cheap food has come, so therefore many countri-
es have started with urgent import of wheat. The countri-
es that produce, on the other side, have started to forbid
I M P R E S S U M its import. Our Government, apart form the announce-
ments about the possibility of making urgent import of
wheat, has blocked that possibility because of the disso-
lution of the Parliament and the technical character of
the Government, which cannot bring decision for import
of the wheat. The intention of the Government for wheat
import was to provide continuity of bread production and
Publishing: INTERNACIONAL NIK AD - Skopje maintaining the current price of this basic product, more
Media library and digital archive precisely preventing new rise up in the wheat and bread
Editors office: berzNIK price.
Address: Square MAKEDONIJA bb, p.box 882 Skopje, 1000, Vreme reports, the banks with software and chips
R.Makedonija are fighting the thieves. The citizens are used to the usa-
Phone. 02/25.32.800 faks: 02/25.32.839 ge of the payment and of the credit cards but they do not
web: www.interNIK.com.mk; want to accept the risk of hacking and robbing the mo-
e-mail: info@interNIK.com.mk ney, which goes with them. The Ministry of interior has
warned that the abuse is increasing and that there is an
Executive Director: Zdravko Josifovski increased trend of robbing the ATM’s. only in the last
Account Menager: Divna Pesic
Public relations: Natasa Dimovska
year around thirty attempts have been seen of illegally
ICT Manager: Kiro Velkovski
Marketing manager:
Assistent:
Ivona Josifovska
Stojne Danilova
2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS
Logistics manager: Ana Petrova
Finance manager: Gordana Stojanovska 1. FOOD PUMPS UP INFLATION (***)
2. THE CEMENT FACTORY USJE BOUGHT ELECTRIC POWER FROM MEPSO (**)
STOCK EXCHANGE REVIEW OF EVENTS IN THE
PRINT MEDIA berzNIK DNEVNIK
p.1 HELL PRICES OF THE FRUIT AND VEGETAB-
berzNIK is founded in year 2007. LES
p.1 CONTROL OF THE CONTRIBUTIONS
STOCK EXCHANGE REVIEW OF EVENTS IN THE p.7 SLOVENIANS ARE BUYING CISTOTA FROM
PRINT MEDIA berzNIK KUMANOVO
Number: 21 p.13 CONTROL OF THE CONTRIBUTIONS
Date: 05.05.2008 BIZNIS
p.1 FOOD PUMPS UP INFLATION
IT IS DISTRIBUTED FOR SUBSCRIBERS ONLY
p.1 T-HOME OPENS DOOR FOR NEW FOREIGN
FRONT PAGE PHOTO: BRANDS
p.1 SUBVENTIONS FIRST FOR THE TOBACCO
GROWERS
Photo: p.2 МBI 29.03.2008
Robert Spasovski p.3 KOMERCIJALNA BANKA - PROFIT OF 419, 5
MILLION DENARS
Editorial staff of berzNIK p.3 MBI-10 DROPS BY 1.54 INDEX POINTS
Internet distributive system: www.interNIK.com.mk
Editor: Makedonka Baldazarska p.3 112.3 MILLION DENARS SEPARATED FOR DIV-
Journalist: Vaska Mickoska, Kiro Simonovski IDEND
DTP: Tatijana Trpkovska p.3 OFFICIAL MARKET`S VALUE – 10.5 MILLION
Editorial staff: DENARS
News Evaluator: Anita Bashoska, R. Tasovska p.4 T-HOME OPENS DOOR FOR NEW FOREIGN
[operators]:Mare Lazarevska, Arslan Skoro, Zoran Stamatovski, BRANDS
Martin Arsovski, Gorge Redzik, Toni Arsovski i Darko Tripunovski p.4 SUBVENTIONS FIRST FOR THE TOBACCO
[translators]: translator's manager Senka Mihajlovska, Angelina GROWERS
Filipovska, Slobodan Trajkovski, Aleksandar Stamenkovski, Aneta p.5 FOOD PUMPS UP INFLATION
Menoska, Filip Koviloski, Darko Ivanovski
Fotoreporter: Robert Spasovski
UTRINSKI VESNIK
p.1 ТHE GOVERNMENT HAS TIED HANDS FOR
Marketing, distribucija i prodazba: THE WHEAT
INTERNACIONAL NIK AD - Skopje p.3 RECORD INFLATION IN MACEDONIA THIS
YEAR
berzNIK
5
29.04.2008 TUESDAY
raising money from the ATM’s most commonly in the in-
terior of the country.
The amount that the thieves raised moves from
30.000 to 150.000 denars. Some of it has been revealed
by the services for preventing organized computer crime
at the ministry of interior, but some are managing to go
out of the country because this is a case with foreign citi-
zens, Romanians and Bulgarian citizens.
You will also read in Vreme that, the cement factory
Usje bought electric power from the State transmission
company MAPS. At the auction where MAPSO was sell-
ing the night surpluses, the only interested company for
electricity during night hours was the cement factory
from Skopje. For the first ten days of MAY, the cement
factory Usje bought 770 mega watt hours of night elec-
tricity surpluses. Every day, until May 11th, it will receive
70 MWh electric power in the period of midnight to seven
a. m. By this sale, MEPSO will earn more than 22 million
euro in only ten days.
In today’s newspapers are, also, published the re-
ports for the acquisitions and allotment of dividend in
many successful companies. Granit ,approximately 1,1
million euros gross amount from the total realized sum of
5,6 millions of euros during last year will use for share-
holders dividend. The company Fershped has realized a
turnover of 3.1 millions of euros, or approximately 190
millions of denars during last year. In addition, a dividend
for the shareholders 33 millions of denars will be paid
off, or in other words 537 thousands of euros.
Dnevnik publishes that the Slovenian company Atrik
will buy the majority packet shares from the public enter-
prise from Kumanovo Cistota and greenery. The repre-
sentatives from the company from which Cistota has
bought special vehicles for taking out trash two years
ago, have concluded a deal with the mayor of the munic-
ipality of Kumanovo, Zoran Damjanovski and the direc-
tor of the company Erol Bekteshi.
The petroleum price, yesterday, on the New York
Stock Market has increased, again, to record value of al-
most 120 dollars per barrel. This rise in price was result
of the closing of the oil pipeline, through which one third
of the petroleum is delivered from the British fields in the
North Sea to the refineries in Great Britain, by the petro-
chemical corporation (Bi-Pi) because of the strike in the
refinery in Scotland, Grangemouth , as well as because
of the armed attack upon the police in Nigeria which pro-
vides the major Nigerian petroleum and gas terminal.
p.7 LAST YEAR GRANIT GAINED PROFITS FROM
5.4 MILLIONS OF EUROS
p.7 FERSPED WITH PROFIT OF 3.1 MILLION
EUROS
p.8 OIL WITH NEW RECORD OF ALMOST 120
DOLLARS
VECER
p.1 ELECTRICITY IMPORT REGULAR
p.6 UNI BANK INCREASED THE ASSETS FOR 50
PERCENTS
p.6 LOANS UP TO 150.000 EUROS WITHOUT
MORT-GAGE
p.6 ALKALOID- LEADER IN TRADING
p.6 ELECTRICITY IMPORT REGULAR
VREME
p.6 THE CEMENT FACTORY USJE BOUGHT ELEC-
TRIC POWER FROM MEPSO
p.6 GRANIT WITH SHAREHOLDER`S DIVIDEND
p.7 IMB ORGANIZES WORKSHOP FOR STOCK-
BREEDERS
p.7 SUNFLOWER RETURNS TO THE FIELDS
p.11 WITH SOFTWARE AND CHIPS THE BANKS
ARE FIGHTING THE THIEVES
NOVA MAKEDONIJA
p.5 OIL PRICE RISES TO RECORD $120
p.5 REDUCED THE STOCK MARKET TRADING
p.5 AT THE BOGORODICA PASSAGE, SHERATON
HOTEL IS GOING TO BE BUILT
p.5 GRANIT WILL PAY DIVIDEND
p.5 FALL OF THE MICROSOFT GAIN
 6 berzNIK number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
Date 05.05.2008

1. SHORT REVIEW OF EVENTS
Greece continues with the silent embargo
towards Macedonia. Top news in all newspa-
pers is yesterday’s refusal of Airplane of Mace-
donian airliner MAT by the Greek air authorities
to enter and fly over Greek territory, although
The flight was previously regularly registered
and there was approved plan from the Greek
flight control and Euro Control. Night charter
with 86 passengers to Sharm el Sheikh was
stopped, and the plane was forced to land in
Istanbul and continued to the preliminary desti-
nation.This is rough violation of the international
law and Chicago Convention, whose signatories
are Macedonia and Greece, write all newspa-
pers in the country.
Round table, the subject Promotion of
Macedonia in the world- next steps and chal-
lenges, that was held yesterday in organization
of the Agency for foreign investment had been
treated by all newspapers, in which the ,so far,
success of the governmental campaign has
been commented differently. In Utrinski Vesnik
stands, that 15 months ago, since the start of
the campaign, about 175 foreign companies
had visited Macedonia, with interest to start
business there but only few companies have
already invested in Macedonia, and with couple
of them there have been deep discussions, but
their names are for now business secret.
The 400 kilovolt pipeline towards Bulgaria
finished is headline in the newspaper Dnevnik,
news which is present in all economic rubrics
and the other daily newspapers. The pipeline
that stretches from Shtip to the Macedonian –
Bulgarian border to be put into operation when
Bulgaria will also build up required infrastructure
for electro connection. Macedonian Transmissi-
on System Operator (MEPSO) announced that
on the trace in length 71.2 km now are installed
aluminum-steel ropes for transmission of elec-
tricity. Transmission line crosses municipalities
Stip, Probistip, Kratovo and Kriva Palanka. “This
transmission line is of great importance for the
stability of the system and electricity supply-
writes Dnevnik.
The petrol and diesel fuels have reached
new record, rising in price for three, respective-
ly for three and half denars per litter, is the news
that publish all newspapers. The petrol, since
midnight, rise up in price for three denars, and
diesel fuels for 3,5 denars, decided yesterday
the Regulatory commission of energetic.
The price of motor petroleum 96 from 70
denars has increased to 73 denars, EUROSU-
30.04.2008 WEDNESDAY
PER 95 from 67 to 70 denars, and EURO-
SUPER 98 from 68 to 71 denars per litter. The
new price of EURODISEL is 67 denars, extra
light oil for household (EP) is 56 denars per lit-
ter, and the price of the extra light oil (EL-1) is
56, 5 denars. According to the Regulatory com-
mission, the new increase of the retail price of
the fuels is explained by the new increase of the
average price of the crude oil on the world mar-
kets of over eight percents for the last two
weeks.
Standard, the daily reports for the trading on
the Macedonian Stock Exchange of securities,
are published in Biznis. On the 81st day of the
trading on the Macedonian Stock Exchange
(29.04.2008) one bloc transaction had been
turned in with 7000 regular shares of Arcerlormi-
ttal a.d. Skopje (HRM).the trading had been
made with 18 shares, the bond for foreign cur-
rency deposits and the bond for denationalizati-
on (fourth, fifth and sixth emission). 4818 shares
have been traded through 69 transactions and
bond in nominal value of 29.059 euros though
15 transactions. 84 transaction have been made
in total and total turnover of 21.519.203,70 de-
nars is realized.

2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS

1. EVEN WITH PERMISSION THE GREEKS WON`T LET MAT (*****)
2. THE CAMPAIGN INVEST IN MACEDONIA GOT INTERESTED 175 COMPANIES (*****)

DNEVNIK p.6 ANOTHER PRECEDENT FROM THE SOUTH NEIGHBOR

p.1 GREECE LANDS PLANE OF MAT p.6 THE ECONOMIC ATTACHéS WILL LOBBY TO THE INVES-
p.7 RECORD BREAKING PRICE OF PETROL TORS
p.7 PROMOTERS MUST KNOW EVERYTHING p.6 GAS PRICES INCREASE FOR THREE DENARS
p.7 FTUM ON MAY DAY PROTEST p.8 THE CEMENT FACTORY HAS NO BAN ON HEATER THAT
p.7 400 KILOVOLTS TRANSMISSION LINE TO BULGARIA FIN- CONTAMINATES
ISHED VREME
BIZNIS p.1 3 000 EUROS OR NO ENTRANCE IN GREECE
p.1 METALS AND OIL PRICE CONTINUES TO GROW p.1 THE OIL WILL PUT TOO MUCH SALT IN OUR FOOD
p.1 BY THE END OF JUNE - EVERYONE BACK TO THE WORKING p.5 PETROL PRICE HAS RISEN UP FOR 3 DENARS
ASSIGNMENTS p.5 NEW INFLATION RISE
p.3 FORTY WIND CENTRES IN GEVGELIJA p.5 REGISTERED GREAT NUMBER OF AGRICULTURAL LANDS
p.3 BUILT PART OF THE PIPELINE SHTIP- CRVENA MOGILA VEST
p.3 GREECE-THREAT FOR THE FLIGHTS SAFETY p.1 GREECE FORCED THE MAT’S LANDING IN ISTANBUL
p.4 GOLD MEDAL FOR VIZBA FROM VALANDOVO p.3 THE GOVERNMENT WILL NOT BAN THE FLIGHTS OF OLYM-
p.5 THE APRIL MINIMUM 9885 DENARS PIC AND AEGEAN
p.13 MBI-10 INCREASED BY 13.08 PERCENT p.3 PRICE OF PETROL INCREASES FOR 3 DENARS
p.13 SHARES OF KOMERCIJALNA BANKA – MOST TRADED p.3 GREECE FORCED THE MAT’S LANDING IN ISTANBUL
SHARES p.6 YOU SHOULD PREPARE STRONG ARGUMENTS EXPLAIN-
p.14 STOCK EXCHANGE INDEXES LITTLE ROSE ING WHY COMPANIES SHOULD INVEST IN MACEDONIA
p.14 RISE OF THE MOSTE INDEX FOR 14, 84 PER CENT p.7 SAMAK: THE DANISH WANT TO INVEST 150 MILLION EURO
p.15 TETEKS WITH PROFIT OF 3,6 MILLION DENARS IN MACEDONIA
p.15 GRANIT WILL SHARE A DIVIDEND OF 67 998 994 DENARS p.7 MEPSO BUILT THE PIPELINE FROM SHTIP TO THE BULGAR-
p.16 OIL PRICE HIGHER FOR EIGHT PERCENT IAN BORDER
p.16 METALS AND OIL PRICE CONTINUES TO GROW p.7 THE INDUSTRIAL PRODUCTION INCREASED FOR TWO
UTRINSKI VESNIK PERCENTS
p.1 THE PETROL AND THE DIESEL 3 DENARS MORE EXPEN- p.8 T- MOBILE AND COSMOFON WILL NOT REDUCE PRICES
SIVE NOVA MAKEDONIJA
p.5 EVEN WITH PERMISSION THE GREEKS WON`T LET MAT p.8 MBI – 10 WITH AN INCREASE OF 0.23 PERCENTS
p.8 FOREIGN COMPANIES SHOW INTEREST, BUT ONLY A FEW p.8 GREEK FORCED MAT`S AIRPLANE TO LAND N ISTANBUL
HAVE INVESTED p.8 МBI 30.04.2008
p.8 ONLY THE FEDERATION OF TRADE UNIONS WILL MARK THE p.9 BUILT THE PIPELINE SHTIP- CRVENA MOGILA
LABOR DAY, 1ST OF MAY p.9 THE CAMPAIGN INVEST IN MACEDONIA GOT INTERESTED
p.9 MEPSO BUILDS STIP-CRVENA MOGILA TRANSMISSION 175 COMPANIES
LINE p.9 GAS AND DIESEL GOING UP
p.9 WITHIN ONLY THREE MONTHS IN 2008 KOMERCIJALNA p.9 SSM WITH MAY PROTEST
MAKES PROFIT OF 6,8 MILLION EUROS SPIC
VECER p.6 PROTEST AND PICNIC ON 1, MAY
p.1 BAN FOR MAT FLIGHTS OVER GREECE p.6 PETROL AND DIESEL EXPENSIVER FOR 3 DENARS
p.6 TRANSMISSION LINE STIP-CRVENA MOGILA FINISHED p.6 175 COMPANIES INTERESTED FOR INVESTING
 Date 05.05.2008
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
UNTIL THE YEAR OF 2012 IN MACEDONIA
FROM 30 TO 300,000 MILLION EUROS IN
THE FUND INDUSTRY
T
o get the real picture on the significance
and development of investment funds,
Markovski starts his analysis with review
on the phenomenon and progress of the invest-
ment funds in the regions of South and North
America. According to his analysis, the funds
mark the most significant increase on the
American continent in Chile, Mexico and Brazil.
Typical for the European continent is that the
countries from Southeast
Europe, most of all those
countries with transitional
economies, have also signifi-
cant rates of increase which
for example in Romania
move from 63%, in Poland
the percentage is 58%, Slo-
vakia shows increase rate of
31% and the Czech Republic
of 21%. Another typical thing
for the global trends is that
worldwide, in the period
between 1999 and 2006 this
industry marks an average
increase rate of 8%, actually,
if in 1999 the amount of funds
engaged in investment funds
was 11 thousand billion dol-
lars, at the end of 2006 this
amount increases to 21 thou-
sand billion US dollars.
From the investment
funds on a global level, the biggest share take
those funds that invest in ownership securities.
That’s almost half the total engaged funds in
this industry. The second place goes to those
that invest in instruments on the money market,
the third place hold the funds which invest in
long-dated securities, the fourth place goes to
those that have mixed, balanced strategy of
movement within 10% of the total engaged
funds.
USA is the leader of this industry and there-
fore it is considered that the trends that hap-
pened there on a long term can be taken as
landmark for the next movements in the region
and the Macedonian investment fund industry.
Typical for USA is that major part from their
funds invested through the investment funds
remains to be integral and growing part of the
households’ portfolios.
In 1990 about seven to nine percent of the
financial assets of the households in USA stick
to this type of investments, while at the end of
2006 this percentage reaches 23 percent,
which means that quarter of the financial funds
that the households own are being kept and
managed by the investment funds, which indi-
cates to high rate of education of the investors,
but also to a high rate of trust these institutions
number 21
enjoy in this developed economy.
The funds partake in the companies’ own-
ership structure with different types of securities
which are traded in USA. The participation in
the ownership securities moves up to 25 per-
cent, while in those municipal bonds which are
in phase of preparation here, they participate
with 34 percent.
The fund industry in the Republic of
Macedonia has finally started to func-
tion in the second half of 2007. The
investment funds are actually the
financial entities which are expected
to give stabilizing effect on the market
in time when the price oscillations are
more emphasized, as well as to be a
catalyst for development of the key
market- they are the tool that was
missing on the Macedonian capital
market.
Investment funds and their perspec-
tive in RM was a topic at the panel dis-
cussion within the ninth annual con-
ference of Macedonian stock
exchange, from which BerzNIK con-
veys the presentation of Goran
Markovski, director of the Office for
providing services with securities in
Komercijalna Banka a.d. Skopje…
berzNIK
7
As a factor that will determine the future
development of our fund industry is the move-
ment of the world’s stock exchange indexes, in
relation to the net inflow of funds. So, there is
high rate of correlation between the range of
additionally engaged funds in this industry and
the rates of yield that are being realized, actual-
ly registered through the world’s index.
As to the Southeast Europe, almost all
countries which in large
part have finished the
phase of accessing EU,
have a rate of engagement
of money in funds of about
eight percent from the
gross domestic product
which was our determina-
tion while establishing the
future potentials of this
industry.
In Croatia, in the peri-
od from 2004 to 2007 this
industry experiences sig-
nificant increase of as
many as 54 percent con-
cerning the range of en-
gaged funds. In 2004 there
are 630 million euros, so
that at the end of 2007 the
amount of money in the
funds increases to four bil-
lion and 170 million euros.
As to Macedonia, our predictions and
expectations are based on the level of develop-
ment of the capital market, the expected
increase of gross domestic product, the experi-
ence of individual investment that many
investors made in 2007 and which will serve as
reviser in their future investment decisions. The
development of Investment funds will be influ-
enced also by the appearance of the first
investment consultants that will mean quality
improvement of the atmosphere in the country
and of course an upgrading of the operation of
the main composers of Macedonian capital
market. Our predictions move in direction that
starting from 2008 about 30 million euros are
supposed to be invested in the fund industry in
our country, so that in 2012 this amount
increases to 300 million euros which would be
result of new deposits, and greatly as generic
increase of the portfolio itself as result of the
increase of these funds’ yields.
These projections have been made on the
basis of the performances important in deter-
mining the future, actually projections of rate of
participation in the GDP funds, but in spite
these somewhat optimistic absolute amounts,
we are far behind the average in Southeast
Europe.
K.S.
 8 berzNIK number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
Date 05.05.2008

PROMOTING MACEDONIA IN THE WORLD- NEXT STEPS AND CHALLENGES

IT IS A SKILL AND OBLIGATION TO KEEP THE

INTEREST OF THE COMPANIES AND THE
COUNTRIES
T
he promoters of Macedonian economy fair in Skopje in October we expect to close a longer term, there has to be systematic
in the world have to be prepared with a the negotiations relating the agreement on cooperation because, it’s a good thing to be
lot of concrete and deep knowledge economic technical and scientific coopera- informed, but that’s only the first step. The
about the potentials on Macedonian market, if tion, and we also gave ELEM a proposal on most important thing is to keep the interest
they want to attract foreign investors in the certain inter-border projects in the field of and attention of the countries and the compa-
country. They have to know the contractual energy. nies. This is where you will have to do a big-
right in more details, as well as the mecha- ger job, and I think the embassies should be
nisms of solving disputes, how well the work- According to the Romanian ambassador, more active exactly on this field. We are not
force is trained, how big are the pension con- the most important thing in promoting going to say that Hungarian companies are
tributions, what level the infrastructural serv- Macedonian economic potentials is to better than the Romanian or the British ones,
ices stand on, the ownership rights… And remove the incorrect images and representa- but we want to see equal treatment and
much more detailed information which they tions of the business and the business behav- approach, as well as transparent procedures
would show Macedonia as attractive busi- ior in Macedonia, and this can be done by during this investment process.
ness destination by, something that would organizing activities like these. – Taking into
distinguish the country from the other coun- consideration the current experience, I would Hungarian ambassador thinks that the
tries in its surrounding and would convince encourage the competent Macedonian insti- contact among the countries, among the gov-
the foreign companies to start business here. tutions, bodies, organizations, associations ernments and the ministries is the first level
Ambassadors and representatives of diplo- etc, to consider the possibilities of the existing that creates favorable frames for the compa-
matic offices in the country pointed these of special economic mission in Romania and nies’ economic activities, and the second le-
moments to the director of the Agency for to take the opportunity of the fairs and shows vel are the direct contacts among the compa-
Foreign Investments, Viktor Mizo, on the that are being organized, because of their big nies, where the skillfulness and the knowl-
round table at subject Promoting Macedonia popularity, to establishing concrete relations edge of the special experts of the embassies
in the world- next steps and chal- are to come to the fore.
lenges, organized at the occasion The contact among the countries, among the governments and
of placement of economic promot- the ministries is the first level that creates favorable frames Taking into consideration
ers of Macedonia in the target the fact that as a country we
countries for investments. for the companies’ economic activities, and the second level cannot afford to have this
are the direct contacts among the companies, where the skill- kind of diplomats-experts in
Representatives of diplomatic every country, ambassador
corps think that the idea of 23 eco-
fulness and the knowledge of the special experts of the Kekesi said that such people
nomic attaches promoting the co- embassies are to come to the fore are required in those coun-
untry was great and that it will give tries which are of great inter-
results. However, they warn that no improvi- not only with Romanian companies but wider est for Macedonia. In the other countries it
sations are allowed when realizing this idea. as well. would be good to appoint honored consuls,
who are very important in building the mutual
The promoters have to be ready to ans- - Business operation and attracting for- trust among the countries.
wer the investors’ questions like: what are the eign investments is a serious matter for every
taxes like, where is Macedonia? country, especially if the country is in transi- - Macedonia has many opportunities, but
tion, like Macedonia. These countries have unfortunately there aren’t enough information
Explaining the achievements made so far certain common characteristics, but differ- that percolate outside and enough informa-
on the plan of bilateral relations, Adrijan ences as well, and the foreign investors tion on the opportunities alone. When we talk
Konstantinesku, ambassador of Romania, expect to see big economic changes in rela- about investments we should promote not
pointed out that Macedonia has to continue tively short period of time, but also changes in only the opportunity, but the country’s poten-
representing its potentials in the countries the political processes, the social conditions, tial as well, its significance and place in the
from the Region and wider. Ferenc Kekesi, ambassador of Hungary, regional cooperation and the opportunities
explained. – I wouldn’t want to be too partial, and the position in the region. And this is
In the attempt of simplifying the direct negative or neutral to this campaign, because much more complex issue. I can write beauti-
contacts among the businessmen, one of the this campaign has to have a strategy. But on ful letters to the companies inviting them to
conditions is to establish good transport con-
nections. This means that more direct flights
between the two main cities have to be intro- So far Macedonia has nine economic promoters in its embassies in Germany, Italy,
duced as soon as possible. We have recently Greece, Austria, Slovenia, the Czech Republic, USA and in the countries from Benelux, and
signed the protocol for amendments to the eight more promoters start the training soon who will have a task to promote the country as
agreement on promotion and mutual protec- attractive business-destination.
tion of investments. In order to simplify these - There will be two promoters each in Germany and USA, because of their size and eco-
direct relations, in March we had joint com- nomic power, Viktor Mizo, director of the Agency for foreign investments, said.
mission for the road traffic which resulted in He reminded that the campaign, Invest in Macedonia, had started last year in February,
consent for greater liberalization of the regi- and that the big companies such as Johnson Matthey and Johnson Controls needed period
me for the Macedonian transporters in and of 18 to 24 months to decide to invest in our country. So far representatives of over 175 for-
throughout Romania- Konstantinesku un- eign companies have visited the Agency.
derlined. – In direction of deepening the coo- The economic promoters will have a six-month mandate, after what there will be evalu-
peration in certain fields, during the Tehnoma ation made on their work and the interest of the foreign investors, Mizo underlined.
 Date 05.05.2008
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
come to Macedonia, but they would say to
me- how can I come there, Kosovo is there
and I can have problems. So, you will have to
answer to the potential investors why they
should invest in Macedonia and what are the
guarantees that their goal will be achieved-
Kekesi pointed out, adding that unfortunately,
the relations between Hungary and Mace-
donia haven’t reached the so called critical
mass yet. Expectations are that in future the
economic relations will improve, especially
with the fact that Macedonia is an EU candi-
date, which means fundamental message for
the Hungarian companies.
The other participants on the round table
too pointed out the need for technical and
more detailed knowledge on the business cli-
mate in Macedonia that the economic pro-
moters have to possess. Even the American
companies, which are famous for their readi-
ness for risk and the aggressive presence
abroad, don’t want to invest without having
enough information on the country. Hence, as
Marsha Vong from UDAID explained, it is
very important to get to the information. –
American companies will do their homework
before coming here. Nonetheless, the Agency
for Foreign investments and
other institutions have to pro-
vide information on the de-
partment researches and
data. To build trust with for-
eign companies, especially
with American ones, auditing
reports have to be published.
I think the American market is
big enough for Macedonia’s
investment potential- Vong
pointed out. In the campaign
for attracting foreign invest-
ments, she suggests, for
starters the promoters to use
the associations of different
departments where all com-
panies gather. Also, taking
into consideration the suc-
cessfully held investment conference in
Washington, Vong recommended such con-
ference to be organized in the western part of
the USA as well. – Promoters will soon face
very difficult questions by the companies.
Thus, it would be good to advice them or give
them some specific points, to prepare ans-
wers upfront for them on the contractual right,
the legal frame, the mechanisms for solving
disputes, what the workforce is like, what
skills it possesses, but also answers on the
labor mobility, the pension contributions, the
infrastructural services, ownership rights etc.
The more practical information you share with
foreigners, the more interested and attracted
the investors will be to come in Macedonia-
Vong said.
Annette Kasten, German expert on
small and middle-sized companies, working
in the Agency for Foreign investments, too
put the accent on the need for information
and the using of the media. – I think it’s very
important to have good information which is
available immediately. We have two promot-
number 21
ers in Germany, because German economy
is much spread, it has different aspects and is
very present in Europe. However, there are
still many companies in Germany asking
where you are located exactly. Macedonia
has to be present not only in German media
and print but wider as well. You should be
spoken as a country with great potential.
Especially in Germany, because there are
middle-sized companies interested in invest-
ing here. There is growing interest especially
with the manufacturers of car parts, the metal
industry, departments where we closely coop-
erate with our German promoter. The idea of
sending young promoters in the countries is
very good, but Macedonia will have to pro-
mote itself in the media in other countries. We
cannot convince every country to come to
Macedonia, but what we can do is tell them
that we are here and it’s good to come and
invest here.
According to Malgorzata Markievic from
the embassy of Poland, in the campaign, and
later on, there has to be adjustment to the
needs of all countries separately, in order
there be better contact to the companies in
that country. Since the promoters will be too
busy and will have no time to collect all data,
the country, the Macedonian embassy abroad
actually, has to promote what sector should
be targeted.
Markievic pointed to other interesting qu-
estions the foreign investors would ask. First,
if they are coming to the Balkan, why not
invest in Serbia, which is much bigger market
than Macedonia? – In a case like this, the
promoters have to know what to say and what
to attract the investors with. Or, if one says
that the tax rate in Macedonia is only 10%,
you can hear that Albania did the same ting
last year- Markievic explained. – You have to
explain argumentatively why it would be bet-
ter to invest in Macedonia and not in some
other country. This is exactly where there is
plenty of room to improve the department
analysis, in sense of more specific informa-
tion, which will base on aggregative and col-
lective data analyses. So far these data are
not at one’s disposal. The State Statistical
Office does not publish them so one has to
collect them from several different institutions
berzNIK
9
and various sources. I think this is great
opportunity for the other institutions to get
engaged in providing these data. Especially
important could be the role of the NGO-sec-
tor, because sometimes it’s even better to see
these data if they are not coming from profes-
sional researchers. And, definitely this kind of
information concerning the comparative
advantages of certain sectors that you want
to develop, is something that’s very neces-
sary.
The potential Scandinavian investor
would like to see what business climate there
is in Macedonia, what’s the predictability, how
complex would it be for him to open company
in Macedonia, but before coming here, he
would like to know something about the coun-
try itself. Hence, Hildur Odlund from the em-
bassy of Norway emphasized the importance
of the Internet and the information on English,
because this is the place where the compa-
nies will start looking for information from. –
From what’s our experience, I think it’s neces-
sary to have long-term perspective. This is
not going to be easy to accomplish, but I think
that the fact that you are going toward EU and
accepting those rules, you can say it’s an
advantage, because for
our investors the applica-
tion of the EU rules and
their proper compliance is
very crucial in making a
decision to come here.
The representative of
the British embassy, Alison
Torp, voiced support for
the campaign underling
the importance of the two-
way exchange and open-
ness in comparing the data
among the countries, as
well as among the compa-
nies. Lilijan Kandikjan
from the embassy of Swit-
zerland voiced readiness
of the Macedonian promoter to have the start-
ing activities in representing their economic
chambers, as well as the SEKO fund which
gives funds to the Switzerland citizens for
opening businesses in other countries.
Jovica Palasevski, from the Ministry of
Foreign Affairs, pointed out that they under-
take many activities with the embassies, in
order to better promote RM as favorable busi-
ness destination. – Among the other things,
the Ministry of Foreign Affairs is also working
on the trade’s development, the improvement
of trade relations between Macedonia and the
other countries, the reduce of deficit, the
increase of export and in organizing those bu-
siness-forums where the businessmen can
directly exchange their experiences. The pro-
moters are trained and familiar with the certa-
in activities they will face together with the in-
vestors. They already know the legal frame
we have established with every country they
will be in, and we expect positive results from
them.
V.M.
10 berzNIK number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
Date 05.05.2008

ZORICA APOSTOLOSKA- DIRECTOR OF MAPAS

WILLINGLY PENSION
SAVING IS FUTURE
There should be no limits for the third pillar. No
matter how much money will be invested, no
matter when or who for... The basis is wide.
Who wants, when does he want, how much
does he want, it depends on own will... The
potential insured should know how high will be
the cost, how much is the minimum for return,
which threshold should not be crossed down-
ward... Legally, the associations can not deny
anyone who is willing to become a member, but
they ought to explain everything to him... Every
citizen must adopt that philosophy. Saving, but
for pension. It is not saving in bank.

MAPAS was recently awarded a There are four sec-

prize for good management. What is
that actually and what does this prize
mean to you?
- The prize is awarded by the Foundation
Institute Open Society in the frames of the
project Estimation of the potential for good
management in Macedonia. So, MAPAS is
top in the category- other organs in the state
administration, organizations on a highest
level. A prize that I must confess means a lot
to me.
When we fulfilled the questionnaire for
our conditions, my conclusion and impres-
sion was that it is a good lesson, those ques-
tions should be a benchmark on what should
we be like. It is the greatest benefit for me.
But, I can not say that I am not happy,
because I am in the Agency since it is estab-
lished and I experience the prize as a per-
sonal satisfaction, although I prefer team
work and what is most important is that I cre-
ated the team. I must confess that the ques-
tionnaire was so well done that everyone
should have it and, from time to time, should
test whether he has achieved his goals in
good management.
That is the only way to achieve a good
quality level in an institution.
It was not easy in the beginning. I was
making good cooperators, loyal, who loved
the institution, and what is most important, to
feel it, to recognize themselves in it. When
one loves its institution and job- the results
can not be missing. MAPAS exists five years.
tors- control sector,
law sector, research
sector, and sector for
financial and infor-
mation technology.
So, the prize
is also recogni-
tion for creating
structure for em-
ployees in the
Agency?
- The creation of institutions is creat-
ing teams, good expert staff. I approached
many young people, with risk that they have
no experience. But, I was lead by the idea
that this is a new subject, it requires learning
and that it can be achieved by youths who
have theoretic preparations and who can
give good results by trainings combined with
the experience. Now, after five years, I can
confirm that I made no mistake. The structure
is heterogeneous- economists, lawyers,
finance math experts, electrical engineers,
electrical technicians. The technical stuff is
here because the software designation of our
control is based on the daily control.
- The researches are made in two
directions- macroeconomic and researches
of capital - financed pension insurance. They
are very compatible and can not function
separately. When we started the reform, the
question should we implement this reform
was often asked, when we knew how shallow
are the financial and the capital markets, how
undeveloped they are. But, on the other side,
the world practice showed that the pension
reforms influenced the deepening of the
financial market and the capital market. This
means that if there are minimum investment
instruments, it could be started and it is a pity
if it doesn’t start. Namely, the amount of
money that occurred on the market is not
negligible, and like it or not, it pushes the
bond market, the Stock Exchange...
The Fund for PDI has a control
over a significant amount of capital at
the joint stock companies. Do you buy
their capital on public auctions?
- It depends which companies own
shares, or what they offer on the auctions.
For us it is not important whether the shares
are for the PDI Fund; it is important who
issued the shares. If the shares meet the cri-
teria for investment, they can be bought.
There are three key conditions that must be
 Date 05.05.2008
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
fulfilled so that the pension funds can invest
in some shares. We are talking about obliga-
tory insurance and there must be many
mechanisms for protection. It is a policy of
the pension funds where would they invest.
But, according to our analyses, the funds are
available for only about twenty enterprises
from those which trade on the Official market
of the Stock Exchange. That is the first con-
dition. Also, a first limit, because there must
be diversification and security in investment.
We say that mostly 30 % of the funds can be
invested in shares. It can not be 100 %,
because as the Stock Exchange was moving
downward ... how much would the value
reduce... It was better last year, in the begin-
ning. That is the reason for diversification in
bonds, deposits... We say that the market
capitalization in shares had to be minimum
15 million euro. The company that issues the
shares must be quoted on the Stock
Exchange at least two or three years, so that
we can invest in the shares. To see the expe-
rience, their transparency... There also must
be auditory report with a positive evaluation.
- We do not allow investment in invest-
ment funds that are opening now, because it
is a risk to us. We will wait for two or three
years in order to see how they will work.
number 21
kets. As you are legally in charge of
monitoring their work, how do you
estimate their investments abroad?
- We claim some conditions for invest-
ment abroad, so it can not be invested in any
instrument. First, it must be bonds issued by
the state or the central bank in the country. If
it is shares, we claim that the companies
have about 500 million market capitalization,
a number of years quoting, rating. But now I
can say that the investments abroad had
lesser loss of value than the investments
here. They showed better, because the crite-
ria we claim are enough to invest in safer
instruments. This is initial investment and we
can not expect great profits, because, first of
all, this is a small volume of funds. The funds
of the funds on their own are too small to
expect extreme profit. No matter when I say
that the investments are good, the funds
withdraw some constant costs that as they
will rise and increase in the following years,
the expenditures will melt down. It is not the
case in the beginning, but it is expected that
the funds rise will give better results. There
berzNIK
11
will be further limitation; more than 5 % can
not be invested in shares. Or the total invest-
ment abroad can not be more than 20 % of
the funds. There is also diversification if, for
example, it is two million at the moment, and
there will be four million next year. They will
have better results from the investment vol-
ume, so that they will be able to bear the
costs like for foreign broker, for the sub-
guardian... So, as the time passes, the costs
will melt down in the funds volume.
- These investments are long term. That
is the key ant that is why I react when I see
comments or articles that the insemination
per cent is now lower than the costs. That is
normal in the beginning. We should consider
this for 20, 30, 40 years. The returns cover
these costs later. It is very important to see
how all this reflects on the final pension. That
is crucial. The explanation is necessary so
that people will not be frightened when they
hear costs of 8 % and a return of different per
cent. The world estimate is that the return will
overcome the cost in three to five years...
Will it be three or five years, that is the skill.

... So, it means that we monitor the work

on a daily basis. We are connected with an
electronic network system with associations,
KB Prvo penzisko drushtvo and Nov penzis-
ki fond, as well as with the National bank and
the PDI Fund. The database with all allowed
instruments must be reported to us, and if we
do not approve it, they can not invest.

Both pension funds, presenting

the last year’s operation results,
showed that last year they invested on
the foreign money and capital mar-

Best management
institution

Biljana Trajkovska, public relations advisor: - The prize is awarded in three categories, the first are the ministries or their
organs, the second category are the municipalities, the third category are institutions, i.e. Agency as ours. We contested and
received a questionnaire composed of about thirty questions.
The applications were evaluated by an expert commission and they awarded the prizes. MAPAS won the third category- a
state institution, i.e. an Agency with most points. That is a prize for best management, which means that the principles of good
management are applied- transparency, accountability, rule of law, equal dullness and interaction of all employees, team work.
Criteria under which it was decided to award the prize for good management:
1. rule of law, efficiency, training and administration professionalism and court control- 40 %
2. transparency, participation, response- 40 %
3. financial management and control- 30 %

There were six institutions in our category, 18 at the municipalities, and there were four institutions in the first category.
Unofficially, we were told that we had most points of all institutions. So, it means better than the municipalities and the admin-
istration organs.
12 berzNIK number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
Date 05.05.2008

It must be started by initial investment; than is to attract entrance of

the benefits will come. foreign capital, they
have experience that
How much satisfied are you from combine with our insti-
the pension users flow? tutions, our network,
should have positive
- I must also express my satisfaction that results. After the elec-
the people showed confidence in this two- tions, the promotions
pillar reformed pension system. We expected will continue in Croatia,
less interested persons, especially in the will- Austria... We work hard
ingly, where they could decide on their own on about 16 rulebooks
whether enter or not, to calculate whether it which must be prepared
is accountable or not. We have about 172 for the third pillar and
000 members and about 60 million euro total most of them are new.
amount of funds in both pension funds. There should be no lim-
Those are the results for two years and a itations for the third pil-
half. Since January 2003, it is obligatory for lar. The base is wide.
the users to enter, but the willingly insurance Who wants, when does
was also attractive; the fact that it is state he want, how much
project and it offers surety... Perhaps this does he want, it de-
was the most transparent reform that was pends on own will...
implemented here, although the preparations The potential insured
took long. Finally, these are two associations should know how high
that have strong and respective founders, will be the cost, how
like Komercijalna banka and Tutunska banka much is the minimum
which are supported by Slovenian compa- for return, which thresh-
nies which means a lot to the people. And old should not be cros-
than, the establishment of MAPAS as a con- sed downward... Lega-
trolling body. lly, the associations can
not deny anyone who is
The third pillar which is completely will- willing to become a
ingly is little more risky, but there will also be member, but they ought
control. There will be strong control. to explain everything to
him... Every citizen
The Law on pension insurance must adopt that philos-
was adopted in the Parliament. How ophy. Saving, but for
pension. It is not saving
far are the preparations for its imple- in bank.
mentation and when do you expect its although there are no drastic differences.
entering into force? What is the effect of shifting to Second reason, I wonder how much people
another pillar? know about this. This is still a first year and
- There is an unusual situation. The Law the members might not be aware that they
is adopted, but it still can not be applied have such right. And third; maybe it is in our
because previously, there were modifications - Claims for shift were filed by only sev- culture that we do not want much changes.
and amendments on the Law for the second enty- five people. I like this result. The rea- Actually, the shifts between the funds might
pillar. Because the Agency authorization to sons are, probably, that the two associations be more often if the associations were dras-
give licenses is right there. But for the dead- are quite similar. By quality, by results, by tically different.
lock in the Parliament, the laws for the EU investments. No matter I say similar, some- V. Mickoska
were preferential, so that this law came in the body still might find something appropriate, M. Baldazarska
Assembly after the amendments. We hope
that the procedure will intensify after the
elections. The business processes in MAPAS
are in preparation in order to enable control Third pension pillar - no limits
expansion from the second to the third pillar.
We have a good team. We will perform the - The third pillar is a good chance, for example, for those who are not insured,
control, similarly like for the second pillar, no are not in regular working relation, and they still have earning from another source
matter it is willingly. The supervision must be and are able to pay their insurance on their own. It is good for those who want to
done in order to make people feel safe. have higher pension. There are no limitations in that respect.
Besides the other characteristics of this system, one of its advantages is the
We promoted the third pillar of pension transparency. Unlike the old system when there were situations when some peo-
insurance in the region as well. Besides the ple did not know how many working years are missing, that were not paid by the
explanation in Macedonia on who can be
founder from the potential banks in the coun- employer, this system is more transparent. Every six months the insured receives
try, the insurance companies, the two exist- report from the associations on his funds per month, how much it is paid, how
ing associations, we also wanted to make a much are the costs, etc. And once a year he receives additional information on
road show in the region. For that purpose, what and where the association invested. So, he has complete information every
MAPAS and the Ministry of labour visited six months to see whether it is being paid. If it shows up that something is not right
Slovenia and Bulgaria and made promotion with some payment, he can intervene immediately and it is much better to solve
for the banks and insurance companies the problem right at the moment, than at the time when the insured will retire. This
there, so therefore I say that there is interest, already functions.
and some of them came to us. The purpose
 Date 05.05.2008 number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
berzNIK
13
02.05.2008 FRIDAY
1. SHORT REVIEW OF EVENTS

Top news in 2nd of May daily editions is the
battle between companies RWE and Verbund
about the construction of hydro power plants
Cebren and Galiste. Although the tender was
open before the 1st of May, future concession-
er will be picked by the next cabinet, after fin-
ishing of the early parliamentary elections.
However, in the Ministry of Economy there are
offers from these two companies, because the
other three the entered second round of qualifi-
cation in March, retreated from the tender.
German RWE in consortium with Slovenian
HSE offers state owned ELEM 47% participa-
tion in the projected company and 39 years
concession period, and Verbund offers 33%
participation and 50 years of concession.
The construction of these two hydro power
plants is expected to improve the supply of
electricity on Macedonian market. According to
the tender, the construction is planed to start
next spring, and to be finished seven years
later.
Despite established air pollution, Cement
factory Usje is fined with 200,000 denars, all
print media inform. Such decision of the Basic
Court Skopje 1 provoked enormous dissatisfac-
tion in Municipality Kisela Voda, which officials
plan to lodge a complain to Court`s decision
passed this January, which cancels the ban
Cement Factory to use petrol coke in furnace
for production of cement.
- How is it possible the Court the cancel the
ban, beside the fact that Inspectors established
presence of sulphur dioxide above maximum
limits two years ago. We do not want to inter-
fere Court`s operations, but we are going to
claim damage on citizens` behalf, because the
number of citizens with respiratory diseases
increases rapidly, mayor of Kisela Voda,
George Arsov, stresses.
From the beginning of May, tobacco pro-
ducers are going to receive subventions in
amount of 30 denars for each delivered kilo-
gram of tobacco on their transaction accounts,
Spic informs. Total amount that will be paid to
tobacco producers will amount 8 and a half mil-
lion euros, and these funds are provided from
the programme for financing of activities in pri-
mary tobacco production. This year were pur-
chased more than 16 million kg of tobacco or
20% less, compared to last year.
High food prices are still among the most
present topics in newspapers. Utrinski Vesnik
pays attention on influence of biofuels over the
production of food, stressing that the very pro-
duction of biofuel is one of the most important
factors for deepening of the food crisis, be-
cause large part of fields previously used for
production of food are no converted into pro-
duction of raw materials for production of biofu-
el. This world trend is still not present in our
country, and farmers are not even informed of
this, nor prepared to enter the process of pro-
duction of rape, which would be used in the
only production capacity in the country, the one
owned by Makpetrol.
Macedonian consumers are facing new
wave of price increase due to increase appetite
of Chinese and Indians, who shook world food
market this year, Nova Makedonija informs.
Although Government`s prognosis say that
prices of alimentary products will stabilize in the
next period and this year inflation will reach 5%,
traders and food producers still put pressure
prices of basic food products to increase. The
same paper conveys that prestigious interna-
tional business-magazines “Global Trade
Review” and “Trade Finances Magazine”
declared the project for construction of gas
power plant “TE-TO” in Skopje for The Best
Deal in 2007. Main contractors of this project,
worth around 167 million euros, are
Toplifikacija from Macedonian side and
Russian group Sintes from Russian side.
Komercijalna Banka Skopje also participated in
the realization of the project with 9 million
euros, and the deal was also supported by NLB
Tutunska Banka.
The Government prepares a project for
connection of optic cables of Macedonian
Railways, Macedonian Electro Transmission
System Operator (MEPSO) and Macedonian
Broadcasting in integrated network that will
provide telecommunications services to state
bodies and public enterprises, Dnevnik con-
veys. This optic network, which will be in paral-
lel to the existing managed by Makedonski
Telekom, will be rented to concerned compa-
nies and the state expects cut of institutions`
costs for telecommunications services and
affect on reduction of price of phone and inter-
net services.

2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS

1. THE NEW GOVERNMENT WILL SELECT CONCESSIONAIRE FOR CHEBREN AND GALISHTE (*****)
2. POLLUTION METER AROUND THE CEMENT FACTORY (****)
DNEVNIK p.6 THE FUTURE GOVERNMENT WILL DECIDE ABOUT CHE-
p.7 THE NEW GOVERNMENT WILL SELECT CONCESSI-ONAIRE BREN AND GALISHTE
FOR CHEBREN AND GALISHTE p.6 10 MUNICIPALITIES LEFT WITHOUT STREET LIGHT
p.12 DEUTSCHE TELEKOM PURCHASES MORE SHARES OF OTE p.6 ONE BLOCK TO BE REPAIRED
p.13 STATE INSTITUTIONS TO PROVIDE INTERNET BY THEM- VREME
SELVES p.6 DIFFERENT PROJECTIONS ABOUT THE BREAD PRICE
p.13 THE 400 KILOVOLT TRANSMISSION LINE TOWARDS BUL- p.6 BATTLE OVER CEBREN AND GALISTE
GARIA IS FINISHED VEST
p.17 USJE POLLUTES AND MAKES CITIZENS SICK p.6 GERMAN RWE AND AUSTRIAN VERBUND BID FOR CEBREN
UTRINSKI VESNIK AND GALISTE
p.6 BIODIESEL FUELS INTENSIFY FOOD CRISIS p.19 USJE WAS PASSED 3,000 EUROS FINE
p.8 THE FATE OF THE HYDRO POWER PLANTS CEBREN AND NOVA MAKEDONIJA
GALISTE TO BE AFTER THE ELECTIONS p.8 97, 1 MILLION OF DENARS FROM ALKALOID ARE TRADED
p.8 MAKEDONSKI TELEKOMUNIKACII BECOMES MAKEDONSKI p.8 WE IMPORT INFLATION FROM CHINA TOO!
TELEKOM p.8 PAYMENT OF SUBVENTIONS FOR TOBACCO STARTS
p.8 KOMERCIJALNA BANKA PART OF THE MOST SUCCESSFUL p.8 TE-TO THE BEST DEAL IN 2007
DEAL IN 2007 p.15 POLLUTION METER AROUND THE CEMENT FACTORY
VECER SPIC
p.2 GREECE DECLARED ECONOMIC WAR! p.6 TOBACCO SUBVENTIONS KICK START
14 berzNIK number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
Date 05.05.2008

03.05.2008 SATURDAY
1. SHORT REVIEW OF EVENTS

No obstacles for money transfers from
Greece; Trade war without official response; The
Greek veto on money transfers does not concern
the Government…These are only few of the news
that hit the headlines of today`s print media edi-
tions, which are making reference to previously
revealed information for a blockade on the money
transfer from Greece to Macedonia. IK Bank,
which is the first agent of Western Union, announ-
ces there are no obstacles in the money transfer
and it has the common parameters for this period
of the year. The Macedonian Government belie-
ves that the problems that our citizens are facing
with in Greece are only isolated cases and they
shouldn`t be regarded as a system of treatment
for our country by Greece, and that`s why they
shouldn`t concern us. The Governor of NBRM,
Petar Gosev says that nobody has officially com-
plaint about a problem in the money transfers with
Greece. Our authorities are much more con-
cerned that our country is no longer visited by
Greek citizens that spend their money here, as it
was the case, especially in Gevgelija, Bitola and
Ohrid.
Telecommunication giant Deutsche Telekom
is to take over the Greek company OTE the fol-
lowing week, inform the newspapers. This deal
will make Deutsche Telekom a monopoly in the
telephony in Macedonia, since not only that it
owns the fixed operator Macedonian Telecom and
the mobile operator T-Mobile, but it will also get
the ownership over Cosmofon, which received li-
cense for WiMax technology. The Commission for
Protection of the Competition is watchfully monito-
ring the announcements for the formation of such
giant of a monopoly on the domestic telecommu-
nication market and says that in that case all ava-
ilable instruments and principles for protection of
the competition envisaged by our and the regula-
tion of the European Union.
Almost all media carries the announcements
of Makstil that this company, as a big electricity
consumer, is being faced with the inconsistent
and discriminatory price policy by the energy aut-
horities in the country. The announcement also
puts forward the problems the company is facing
with in providing the necessary transportation ca-
pacities due to frequent closure of the Thessalo-
nica port as crucial transport destination. Just for
information, Makstil realized the projected plans in
the both production capacities in this year`s open-
ing quarter.
Vest newspaper informs that the British com-
pany Johnson Matthey again postponed the con-
struction of the factory in Bunardzik, although a
month ago their representative, Collin Geoffrey,
stated that no political events, like non-extended
NATO invitation, events on Kosovo and Serbia or
problems with Greece will have an effect on the
realization of their investment or on the projected
production start period. The Director of the Agen-
cy for Foreign Investments, Viktor Mizo, announ-
ced that the construction of the factory was ex-
pected to start at the end of the month and expla-
ined the delay with the unfavorable weather con-
ditions.
The trade on the Macedonian Stock Exchan-
ge in April was again overshadowed by the politi-
cal events in the country, is the text from the stock
exchange analysis in Vecer. The stock exchange
barely made a turnover of 18, 3 million euros, a
profit identical to the one from March with around
17 million euros. On the first business day of May,
most of the overall profit was realized by the
shares of Komercijalna Banka with 10, 3 million
denars or 62 percent of the total turnover on the
Stock Exchange.
From the world news, the print media carry
the prognoses of the analysts that the oil price will
go down, as a result from the strengthening of the
dollar exchange rate in relation with the euro, the
growth of the reserves in US and the end of the
strike of the workers in the oil company ExxonMo-
bil in Nigeria.

2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS

1. FAST MONEY TRANSFER WITH GREECE FUNCTIONS NORMALLY! (****)
2. MAKSTIL REACTS ON ENERGY PRICE POLICY (**)

DNEVNIK p.7 THE INVESTORS IN THE SHADOW OF THE POLITICIANS

p.7 ZORAN ZAEV PURCHASES THE BRICK FACTORY
p.3 DEUTSCHE TELEKOM TURNS INTO MONOPOLY IN MACE- p.7 OIL TO REDUCE PRICE
DONIA p.7 FAST MONEY TRANSFER WITH GREECE FUNCTIONS NOR-
p.5 THE MUNICIPALITY OF CHASKA LEFT WITHOUT STREET MALLY!
LIGHTNING
p.7 DEUTSCHE TELEKOM TURNS INTO MONOPOLY IN MACE- VREME
DONIA
p.7 THERE ARE NO OBSTACLES FOR TRANSFERRING MONEY p.1 SALARY YOURS, CREDIT CARD MINE!
FROM GREECE p.3 SILENT TRADE WAR FACES OFFICIAL MUTENESS
p.7 MAKSTIL INCREASES ITS PRODUCTION p.3 GREEKS TO RETURN DEPOSIT MONEY OF TOURIST AGEN-
p.7 GEVGELIJA INVOLVED IN A PROJECT ON ENERGY EFFI- CIES
CIENCY p.5 SALARY YOURS, CREDIT CARD MINE!
p.6 PRESPA WILL BE MAJOR BALKAN OSTRICH`S BREEDER
UTRINSKI VESNIK p.6 THE PETROLEUM PRICE WILL DECREASE

p.7 THE GREEK VETO FOR MONEY TRANSFER DOESN’T WOR- VEST
RIES THE GOVERNMENT
p.7 WHO CHEATED TOBACCO PRODUCERS ABOUT SUBVEN- p.7 JOHNSON MATTHEY POSTPONES PLANT CONSTRUCTION
TIONS? ONCE AGAIN
p.7 MAKSTIL REACTS ON ENERGY PRICE POLICY
p.9 BRUSSELS DEFENDS ITSELF FOR THE BIO FUELS NOVA MAKEDONIJA
p.8 PRICE OF OIL STABILIZES AROUND 110 DOLLARS PER BAR-
REL p.8 SHARE OF KOMERCIJALNA COVERS 62% OF THE TURN-
OVER
VECER p.8 DAD PICK ME UP WITH CAR - NO MORE!

p.2 THE INFLATION SHORT OF WIND SPIC

p.6 CANCELLED FLIGHTS COST THEM €2 BILLION A YEAR
p.6 LAPTOP FOR 750 DENARS PER MONTH p.2 NEXT WEEK - DEAL FINALE BETWEEN DEUTSCHE TELE-
p.6 BITOLA’S DIARY EDUCATES THE FARMERS KOM AND OTE
 Date 05.05.2008 number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
1. SHORT REVIEW IN THE WEEKLY MAGAZINES
GLOBUS
Pg.24 THE FALL OF THE DOLLAR REDUCED OUR INDEB
TEDNESS
Macedonian citizens cannot feel the benefit from the exchange
rate differential of the dollar losing its value, because there are no
loans indexed in this currency in our country. Nonetheless, part of the
total debt of the country is in dollars, and therefore the fall of its value
the past period favorably reflects on the obligations from
Macedonia’s external credit indebtedness. In order to return the
loans with the foreign creditors, today the country should collect less
funds from the tax payers than seven years ago when the dollar’s
value started to fluctuate in relation to the other world’s currencies.
The situation with the dollar going weak goes to the benefit of
Macedonia, because most of the financial inflows from abroad are in
euros.
From the beginning of 2000 up until today the dollar lost 63 per-
cent of its value. In the same period seven years ago one dollar was
worth 60,79 denars, and today it costs 38,54 denars or 22,25 denars
less. According to the National Bank of Macedonia, at the end of
2007 the country’s external gross-debt was 3,983 billion dollars. For
the past ten years Macedonia has continually been reducing the
indebtedness with abroad. The central bank’s statistics say that the
participation of the private debt today, in which belong the banks’ and
the companies’ obligations with abroad, is bigger than the public
debt, the country’s loans actually. The Ministry of Finance claims that
last year the external debt reduced for 248,3 million euros. Now the
euro has dominant place in the currency structure of our overall cred-
it debt.
- As result of the performed operations of premature purchase,
the debt expressed in euros compared to 2006 has increased for 5,6
percentage points and at the end of 2007 was 65,8 percent, and at
the same time at the expense of this there was reduce of the public
debt in US dollars for 6,8 percentage points. The debt expressed in
domestic currency marks slight reduce in the overall public debt of
0,3 percentage points, actually from 11,4 percent to 11,1 percent,
Minister of Finance Trajko Slaveski’s cabinet informs.
CHANCE Professor at the American college, Tome Nenovski,
says that the monetary and the executive power should be more flex-
ible and use these favorable periods in the exchange rate differen-
tials with the dollar.
- Because of the record decrease of the dollar’s value in relation
to the other world’s currencies, the people in charge should reexam-
ine their policies and not reject the premature servicing of obligations
expressed in the same currency. In perspective, this action can save
money to the country and the citizens. One has to have in mind that
this trend of the dollar’s value is not going to last for much longer,
Nenovksi predicts.
According to him, the dollar has already reached its bottom and
now the monetary authorities of the United States of America are
expected to take steps in stabilizing their domestic currency.
Predictions say that after the presidential elections in USA the
dollar’s value will start to grow, and along with it all financial claims
expressed in this currency.
In its last-month projections on the condition in the USA national
economy, the International Monetary Fund gave no significance to
berzNIK
15
28.04.-03.05.2008 MONDAY-SATURDAY
the fall of the dollar’s value and predicted that the USA economy will
not go into recession. IMF explained these predictions with the fact
that graded on wider, trade basis, the American dollar is a strong pay-
ment facility after all.
USA’s trade exchange with part of the Asian countries is big and
growing. Nevertheless, for the past few months the dollar has expe-
rienced the record low value compared to the euro and the Swiss
franc. The dollar’s value compared to the Japanese yen has fallen to
the lowest level for the past three years.
In spite this state with the American currency, some of the
experts on monetary economy criticized Prime Minister Nikola
Gruevski’s policy, who started returning the debt with the multilater-
al creditors too soon.
According to them, the government action was futile, because the
foreign investors remained deaf to the shown signals that Macedonia
was stabile country. The Government elaborated the premature serv-
icing of debt as a measure of savings, but most of all as a step by
which it will attract larger direct foreign investments. Those who did-
n’t agree with this view claimed that it would be more useful for
Macedonia to invest this money in projects which will provide devel-
opment to the country. Therefore, today, after almost a year since this
government action, experts emphasize that the two desires have
failed- foreign investments and economic development. In regional
frames Macedonia is the lowest indebted country. Macedonia’s net
indebtedness before the premature return of loans was 50,3 percent
from the country’s gross-domestic product. In the countries from the
region this share is significantly larger- Hungary with 93,3 percent,
Croatia with 85,3 percent, Bulgaria with 80,1 percent, and the partic-
ipation of Slovenian gross-external debt in the overall domestic prod-
uct is 78,5 percent. The foreign investments’ inflows that these coun-
tries realize are incomparable with the Macedonian circumstances.
GLOBAL CRISIS For the rest of the world the dollar’s decrease
is not good news. This is the case because the currency’s decrease
goes hand in hand with the crisis of American economy.
Seven years ago the banks in USA started to approve high-risk
loans. Citizens got massively in debt with the banks, but it was shown
soon after that they cannot meet the obligations toward the creditors.
After the crash of the American mortgage market, the crisis trans-
ferred on the other financial markets in the world as well. The coun-
tries which have developed trade cooperation with the United States
of America got into direct danger.
Macedonia does not belong to this group of countries. But it is not
however isolated from the global crisis. The biggest cancer-wounds
of the world’s economy today, the oil and food increase and the infla-
tion pressure, were additionally burdened with the crisis on American
market. The benefit that Macedonia can have from the dollar’s
decrease is neutralized by the danger of the importing inflation, econ-
omy experts warn. This inflation is fed by the increase of oil derivates,
the raw materials and the food. Being importing dependent from fuels
and raw materials, there is nothing Macedonia can do to block the
products price increase. The only solution to reduce the problem
economy analysts see in the agricultural products export and the
increase of the farmlands. This will reduce the trade imbalance that
Macedonia gets from the bigger import at the expense of the import.
This will also reduce the reasons that force Macedonia to get into
debts with the foreign creditors.
16 berzNIK
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
WORLD STOCK EXCHANGES...
A HUNDRED BILLION DOLLARS FOR ENGLISH BANK`S RECOVERY
STATE BONDS INSTEAD OF BAD
MORTGAGE SECURITIES
England`s Central Bank (Bank of England)
approved package of 50 billion pounds (around
100 billion dollars) for replacement of bank`s
claims with state bonds in order to exceed the
consequences from the global credit crisis.
According to information from British media, the
Central Bank will help tottering financial organi-
zations by replacing their bad mortgage securi-
ties with high liquid state bonds.
THE AUSTRIAN CAPITAL MARKET IS EXPANDING ON THE TERRITORY OF FORMER YUGOSLAVIA
The Ljubljana Stock Exchange is looking
for a buyer, and Wiener Börse and the Greek
group Hellenic Exchange are the most serious
candidates for its acquisition.
If the acquisition in Slovenia ends success-
fully for the Austrians, Wiener Börse does not
JACK WELCH, THE LEGENDARY HEAD EXECUTIVE DIRECTOR OF GENERAL ELECTRIC
YOU DID NOT GET RID OF THE BURDEN IF
YOU HAVE LOADED IT ON SOMEONE
ELSE’S BACK
The mortgage crisis that is shaking America
but whose influence reflects upon the global
economy is a subject to analysis in the last few
months. Jack Welch, the legendary executive
director of General electric, has recently com-
mented the events related to the fail of the pri-
vate equity funds. Here is what Welch said for
New York Times:
“The short answer would be that the world
has changed. Many of the companies that have
turned towards buying new assets are sudden-
ly retreating from the business for which they
think that it will not bring them enough profits.
It looks somehow of the moments when
Titanic hit the iceberg. The more realistic
number 21
Bank`s director, Mervin King, stated that
this is a plan to improve the banking system liq-
uidity, and to strengthen the confidence in
financial market.
The period in which the claims will be
replaced with state bonds shall last one year,
with a possibility of one year extension. Besides
this measure, the Central bank of England is
prepared to invest more assets if needed.
WIENER BÖRSE INTERESTED ABOUT THE
LJUBLJANA STOCK EXCHANGE
hide the intention to continue with expansion
towards the southeastern region.
amongst the people on the boat were not look-
ing where they are going in order to get to the
rescuing boats. They have been stamping one
on top the other in order to get there first. It is
exactly what we see today, not only with the pri-
vate equity funds. Lot of the companies,
encouraged by the strong economy and the
abundance of favorable credits were buying
whatever they can get in the last few years. In
all of this, the risk has not been undermined,
but they have been thinking that there would be
a solution from the mess later on – if there
would be a mess. Now, when that “later on”
came, everyone wants to “jump” from the sink-
ing ship.
Date 05.05.2008
Analysts say that this Central Bank never in its
history has undertaken such extensive financial
operation to safe private bank from bankruptcy
or certain downfall. Realization of this plan
could be the biggest operation to safe a bank-
ing system in the world.
The Bank of England has already helped
the domestic private bank`s consolidation, last
month with around 11 billion pounds, which last
year and at the beginning of this year were
forced to write-off enormous claims due to busi-
nesses with American mortgage securities.
Domestic private banks informed about enor-
mous losses at the end of 2007.
In his statement for the Slovenian media,
the joint CEO of Wiener Börse, Heinrich
Schaller, pointed out that if the taking over of
the Ljubljana Stock Exchange by Wiener Börse
ends successfully, they, as a strategic investor,
will relay their entire experience and knowledge
in the further development of the Slovenian
capital market. He added that Wiener Börse is
also interested about the rest of the stock mar-
kets on the territory of former Yugoslavia but
provided that they are interested about such an
acquisition.
It looks amazing, but some even succeed.
Or at least they try, thanks to MAC, the clause
for significant negative changes, which is part
of every agreement for joining or undertaking.
According to us, the thing that is happening with
MAC gives us an important but bitter lesson fro
the management, for the fact, when is the real
time for the main executive director to transfer
the responsibility for the “details” related with a
bigger risk to someone else – and that would be
never. Very bitter lesson, because it teaches us
how simple is to get in this kind of trap.
Imagine that you find yourself in a middle of
a deal that you want to complete. Your team
has given a “generous” offer to the team from
the “targeted” company of 23 dollars per a
share. Their answer had been: “Ridiculous. We
are not showing before the Board with less than
27 dollars”. Then comes the endless “stretch-
ing”, in which little by little, the both sides let go
of half dollar each, while muttering all the time.
At the end, in Wednesday, the deal will be com-
pleted by the price of 25.5 dollars per a share,
 Date 05.05.2008
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
WORLD STOCK EXCHANGES...
The good results of a number of companies
in the first quarter of 2008 contributed Wall
Street shares achieve the highest level of
January in the end of the last week.
The Dow Jones index raised by 0,3%, but
Standard & Poor`s – 0,5% and Nasdaq- 0,8%
also raised.
The analysts in the USA estimate that the
positive results of the work in the corporative
sector in the last three months can be taken as
a signal that the recession, will still not unwind
according to the most pessimistic anticipations
that the American public was inclined toward.
ON CROATIAN CAPITAL MARKET
DRASTIC DECLINE OF THE DOMESTIC
BONDS` PROFIT
- In the first quarter of 2008 bonds` profit is
significantly declined and amounts 6.1 billion
kunas which is convincingly the lowest quarter
profit in the past three years, explains Mladen
Smiljanic, analyst of Zagreb Bank in the trimes-
ter capital market review in Croatia.
According to this analysis the volume of the
monthly profit has been declining continuously
these four months. In March it amounted
scarcely 1.2 billion kunas- the lowest liquidity in
the past six months and penultimate during the
past five years. The expectations for April are
not optimistic, and 7, April is an instance of the
with an addition of some sugar for the targeted
company.
And of course, it is already Friday, eight
o’clock in the evening. You and the other head
executive director are handshaking, exhausted
as much as you are delighted, you say to your
lawyers: “get the agreement ready; and let it be
ready before the opening of the stock market in
Monday.” And the lawyers are turning into
hyperactive mode.
One of their tasks is to remember all of the
things that can go wrong in the period between
the announcement of the deal and its conclu-
sion, for instance, a big strike in the targeted
company, or a crash of their biggest buyer.
Such prediction of the possible “negative
changes” is one of the simplest parts in the
preparation of the agreement and it usually
ends without much mess.
Toughest part – and that which usually is
ignored the most – is the clause that deter-
mines what exactly “negative change” means,
number 21
THE PESSIMISTIC PROGNOSIS ON RECESSION LOOSEN
INDEXES RISE ON THE WORLD
STOCK EXCHANGES
The technologic companies were quoted very
well last week.
On the other side, the oil price, which
moves around the level of 120 dollars a barrel
these days contributed fall of the shares of the
airway companies and the trading corporations.
It is expected that the high price of the oil as an
important input will result in prices rise in these
big “lethargy” of the bond market, a day when
zero transactions are realized.
As a possible reason for the drastic liquidi-
ty decline in the first quarter of this year is con-
sidered to be the absence of, for that period,
common state bond emission. The emission
delayed due to state budget delay and the new
Government and Assembly establishment. The
next Croatian bond, compared with previous
one, should appear of foreign markets and will
be partially used for state bonds payment with
maturity date in second quarter of 2008. It can
be claim with certainty that the bond issue for
i.e. change that would be significant enough to
ruin the total deal.
It is tough to define the significance. The
biggest reason for that is that the laws that reg-
ulate this material are not clear and precise
enough. This means that it is very difficult in any
kind of conditions, at least in the conditions of
being under great pressure to determine the
meaning of this term. Whether it would signify a
decrease of the profits for 20% or decrease of
the incomes for 15%. Because of that the
lawyers formulate this things to be enough
abstruse for the both sides to be able to say
“OK, everything will be as it should”.
Let us go back now and think that the
toady’s crisis of second class mortgage credits
is one such “negative change”. You will realize
why such number companies are leading end-
less box matches about what their MAC claus-
es are actually providing on a technical level.
Sally Me, the biggest provider of student
credits in America and the private equity fund
J.C. Flowers is possible to be dragged in court
berzNIK
17
two economic sectors.
The stock exchange indexes in Europe
rose influenced by the positive movements in
the mining and energetic sector. At the end of
the week, the London FTSE rose by 0, 6 %, and
the Frankfurt DAX rose by 0, 8 %.
A highest rise noted the Tokyo index Nikkei
by 3 % last week.
foreign markets will not contribute for the inac-
tive domestic market`s revival.
The most liquid bond in Croatia in the first
quarter of this year was the kuna`s nine-year
bond RHMB-17 with realized turnover of 1.2 bil-
lion kunas, and the six-year bond with foreign
exchange cause records turnover of over one
billion kunas.
As opposed to state bond market, corpora-
tive and municipal bonds is far more active. The
total turnover in this segment exceeded half bil-
lion kunas, which is for 30% more compared
with the last year quarter. Ten-year bond of
Croatia`s Electric Power Company with realized
turnover of 150 billion kunas and 30 % partici-
pation in the total turnover realized in this seg-
ment. No other bond has turnover higher than
100 million kunas.
with years, as well as the international invest-
ment fund Cerberus or the biggest world com-
pany for equipment renting United rentals.
What a waste of time, energy and money.
Of course, with the course of time, the
economy will get better, and when that hap-
pens, the details from every clause for the sig-
nificant negative changes will be less important.
But, even then there would be agreements with
a space for playing and maneuvering the condi-
tions.
If this chaos about the second class mort-
gage credits has thought us something, that
would be that the bosses had to stay in the
work until the end itself, whatever that would
be, and to decide for every, even for the small-
est detail connected to the risk. I know that it is
hard, cruel, tedious and awful job. But when it is
a matter of big inputs, you do not have any
choice. Do not think that you have been freed
from the burden if you have loaded it to some-
one else’s back. (New York Times)
18 berzNIK number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
Date 05.05.2008

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 E
period 28.04. - 02.05.2008
Date 05.05.2008 number 21
DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS
berzNIK
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