MAK-NEWS 19/01/96 (M.I.C.)

From: "M.I.C." <mic@ITL.MK>

Macedonian Information Centre Directory

CONTENTS

SKOPJE, JANUARY 19, 1996 (MIC)

[01] CARL BILDT TO VISIT MACEDONIA

Carl Bildt expressed the desire to meet with President Kiro Gligorov and Foreign Minister Stevo Crvenkovski, in order to, as it is emphasized, get a first-hand look at the situation in Macedonia and the stances and efforts of the Macedonian state leadership concerning the stabilization of the situation in the Balkan region.

[02] CONSTITUTIONAL NAME ON MACEDONIAN OFFICE IN ATHENS

Practically all Greek newspapers informed about the Wednesday opening of the Macedonian Liaisons Office, not failing to comment that a chief of mission has still not been appointed due to "fighting" between the candidates.

[03] IMPLEMENTATION OF AGREED VISA REGIME

[04] PERSPECTIVES FOR COMPREHENSIVE BILATERAL COOPERATION WITH MOLDOVA

The ceremony, that was organized on this occasion in the Cabinet of the President, was also attended by Foreign Minister Stevo Crvenkovski.

President Gligorov said, among the rest, that "the establishment of diplomatic relations between our two countries and your appointment to this responsible duty presents an important step, both in the direction of development of the bilateral relations between our two countries, and in the direction of the development of the process of European integration."

"As members of the Council of Europe, our two countries will contribute to European understanding and cooperation," Gligorov added, concluding that both countries have similar interests and sending greetings to the President of Moldova Mirchek Snegur.

The similarities between the two countries were also emphasized by ambassador Koshkodan. "Now, after the declaration of the state independence, new favorable perspectives for bilateral cooperation in various fields have opened up, as well as the strengthening of friendly relations between our two peoples. I am convinced that they will develop on the basis of future agreements which, I hope, will be signed between our two countries in the nearest future," Koshkodan said, conveying greetings to President Gligorov from the President of Moldova Snegur.

The Moldovan ambassador was received yesterday by Prime Minister Branko Crvenkovski and Speaker of Parliament Stojan Andov.

[05] PROJECTS FOR REVALUATION OF VILLAGES

Angelov emphasized the significance of the to-date cooperation between Macedonia and this international association, explaining the future projects in the field of agriculture, with a special accent on the revaluation of the village.

The Macedonian delegation, led by Ivan Angelov, was also received by the IFAD Deputy President Jimmy Nudi. The discussion focused on the concrete programs for direct realization, which also includes the arrival of the IFAD mission in the Republic of Macedonia, during the second half of February, which will be the mission's third mission. According to plans, the mission should determine the priorities for realization of individual programs that are of interest to Macedonia, as well as its contribution to the world agricultural production.

[06] CAR BOMB DRIVEN BY WOMAN

The photo, taken by a German tourist, shows the vehicle AMI-8 parked in the same spot the previous day, and according to witnesses, it stayed there from early in the morning till about 1.00 PM. This indicates that perhaps the assassination was planned the previous day. Experts also support this conclusion, who say that the vehicle was laden with a 60 kg load.

The analyses of the explosive device in Germany, U.S.A. and Great Britain detected the presence of a chemical substance (peton). The explosive device was between 4.5 and 7 kg heavy and made by manganese iron, of very high quality.

In the search conducted in the suburb of Kisela Voda, the police found identical sand samples, as that found in the AMI-8. Furthermore, it was determined that a rare type of car battery was used to make the explosive device, which is practically not used in Macedonia.

In the interest of the investigation, Trpe Stojanovski refused to comment the statements by Ljubomir Frckovski made at his last news conference, that a multinational organization of a neighboring country is behind the assassination attempt. He repeated that the assassination was performed by a team of professionals, and that the investigation was going well.

MACEDONIAN PRESS REVIEW:

[07] "ECONOMY PRESS": MACEDONIA'S MACROECONOMIC AND MONETARY POLICY IN 1996

The realization of these goals will go through the monetary policy, the fiscal policy and the policy of wages. As to the revival of the economy, it is expected to be stimulated through structural reforms: privatization, restructuring of the enterprises and the banking system. In addition, investments are expected to increase.

As to the monetary policy, this year, plans are to lead a neutral monetary policy, that is to say, the offer of money to be equivalent to the scope of merchandise and money transactions, under conditions of a 2% GDP growth and a 6% increase in retail prices. Furthermore, the circulation of money supplies is expected to drop further in 1996, which should lead to a 4% increase in the demand for money.

According to the projection of the balance of payments, the monetary policy in 1996 will be realized in conditions of higher supply than demand of hard currencies on the foreign exchange market. The surplus of supply of hard currencies for the whole of 1996 is estimated at US$ 60.9 million.

Therefore, Vice Governor Bisev writes, the National Bank will intervene in the foreign exchange market and buy up the surplus hard currencies. The regime of flexible foreign exchange rate will remain in 1996. Nevertheless, the foreign exchange rate of the denar, as compared to the German mark, will present the basic nominal anchor of the economy.

The deficit in the current transactions of the balance of payments is planned at US$ 178 million. The financing of this deficit, as an increase in the foreign currency reserves, as planned, will be realized with an influx of capital, on the basis of direct foreign investments, up to US$ 27 million, long-term foreign credits of US$ 165 million and short-term foreign credits up to US$ 9 million.

The real labour costs per unit product in 1996 are expected to drop 5%.

The fiscal policy in 1996 is to carry out 3 important functions: the stabilization support of the structural reforms and support of the monetary policy. According to Mr. Bisev, the stabilization function should be realized by balancing the budgetary revenues and expenditures, and by reducing the participation of fiscal expenditures in the GDP. The Budget will manifest its support of the structural reforms by providing funds to finance the reconstruction and recovery of the banks, the restructuring of the enterprises, social help, the payment of the "frozen" foreign currency savings deposits and investments in the economic infrastructure.

The Budget will carry out the function of support of the monetary policy by providing a part of the funds for the purchase of the surplus of foreign currencies on the foreign exchange market. Thus, in 1996, it is foreseen to transfer funds up to 2.5% of the GDP from the Budget to the National Bank, on account of interventions in the foreign exchange market.

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