MAK-NEWS 11/05/95 (M.I.L.S.)

From: "Demetrios E. Paneras" <dep@bu.edu>

CONTENTS

  • [01] GLIGOROV RETURNS TO SKOPJE

  • [02] VAN DER STOEL SEES OBVIOUS PROGRESS IN ETHNIC RELATIONS

  • [03] GREEK PARTY DELEGATION VISITS MACEDONIA

  • [04] GREEK VETO REMAINS PART OF NEGOTIATIONS

  • [05] AUSTRIAN AMBASSADOR HANDS OVER CREDENTIALS

  • [06] MACEDONIA JOINS CONVENTION ON PATENTS

  • [07] REGIONAL CONFERENCE OF INTERPOL

  • [08] AIR BRIDGE BETWEEN LONDON AND SKOPJE

  • [09] PARLIAMENTARY BRIEFS

  • [10] NINE MORE COMPANIES TO BE SOLD

  • [11] PRICE OF ELECTRICITY UNCONSTITUTIONAL

  • [12] ROUND TABLE FOR EDUCATION OF ALBANIANS

  • [13] SKOPJE OIL REFINERY WORKS AGAIN

  • [14] SKOPJE MAYOR KILLED IN ROAD ACCIDENT

  • [15] MACEDONIA TIES WITH ARMENIA

  • [16] MILS SPECIAL SUPPLEMENT: WE ARE TALKING INTERNATIONAL STANDARDS HERE (Business Europa April/May 1995)

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    M I L S N E W S

    Skopje, 11 May 1995

    [01] GLIGOROV RETURNS TO SKOPJE

    Macedonian President Kiro Gligorov has ended his two day visit to Moscow where he attended the 50th anniversary celebration of V-Day. Yesterday morning he paid his respects at the tomb of the unknown hero to express the gratitude of the Macedonian people for the contribution of the Russian people in the victory over fascism. Upon his return from Moscow, Gligorov told reporters of his numerous contacts with other top politicians. At a meeting with US vice-president Al Gore, Gligorov discussed the situation in the region, stating concern about the possibility of a spill-over of the war to the south. He also stressed a desire to have a solution for the problem with Greece as soon as possible. Gligorov and Russian President Boris Yeltsin discussed ways to extend bilateral relations and the possible appointment of a Russian ambassador to Skopje in the near future. Gligorov also met UN Secretary General Boutros Boutros-Ghali to exchange ideas on the dispute with Greece.

    [02] VAN DER STOEL SEES OBVIOUS PROGRESS IN ETHNIC RELATIONS

    The OSCE National Minorities Commissioner Max Van der Stoel is currently visiting Macedonia. He met with Prime Minister Branko Crvenkovski, Foreign Minister Stevo Crvenkovski and Minister of Education Emilija Simoska. Van der Stoel later met Parliament President Andov for talks on ethnic relations in the country. They both agreed that relations are making obvious progress. Stoel also met Minister Muhamed Halili and they concluded that this is a period of stabilization of political trends in the country but that there still remain a number of open issues likely to bring about ethnic misunderstanding. They also discussed the higher education of Albanians in Macedonia.

    [03] GREEK PARTY DELEGATION VISITS MACEDONIA

    Two days ago a delegation of the Greek left-wing party, Sinaspizmos, visited Skopje, A1 Television reports. The delegation met with the left-wing block of Macedonian political parties on the subject "Macedonian-Greek dispute and negotiations on its resolution with UN mediation." Mr. Sterios, Sinaspizmos' foreign issues representative, sent official invitations to Macedonian social democrats and socialists to attend the planned three-day meeting of left- oriented parties in the Balkans, scheduled for June 3-5 in Athens. The Macedonian Social Democratic Alliance will decide whether to accept the invitation after the complete list of participants is known.

    [04] GREEK VETO REMAINS PART OF NEGOTIATIONS

    Radio Skopje reports that Tore Bogh, Chief of the OSCE Mission in Macedonia, left urgently for Vienna. This is in connection to announcements of possible OSCE mediation in the Greek-Macedonian dispute. No other details are known. In regard to this OSCE initiative, Greek Foreign Minister Papoulias stated that his country would not prevent Hungary from persuading the former Yugoslav Republic of Macedonia from introducing changes to its constitution and national symbols so that it is admitted into the OSCE. Papoulias added that the Greek veto is only a part of the negotiation package and Greece will continue to use its right to a veto. He underlined that Greece's patience has still not come to an end and that there is still hope that President Gligorov will, at a moment devoid of internal problems, sit at the negotiating table. Papoulias also said that the EU and international mediators consider the attitudes of Greece as justified. Greek President Stephanopoulos, on the other hand, said in Moscow that he hoped the dispute with Macedonia will be resolved soon with the help of the United Nations. Makfaks cites him as saying that Russia, having good relations with Skopje, could provide useful advice for the leaders of the state of Skopje in regards to their accepting direct talks. Stephanopoulos used the opportunity to point out that "it is not Greece which causes trouble in the Balkans" and to accuse Macedonia of aggressive policy.

    [05] AUSTRIAN AMBASSADOR HANDS OVER CREDENTIALS

    Macedonian Foreign Minister Stevo Crvenkovski received the credentials of Dr. Kurt Spalinger, ambassador of Austria to Macedonia. They both underlined the friendly and good mutual relations and successful cooperation in international organizations.

    [06] MACEDONIA JOINS CONVENTION ON PATENTS

    A delegation from Macedonia, led by Minister of Development Bekhir Zhuta, met with the Director General of the Specialized Agency for Intellectual Ownership in Geneva to report on Macedonia's decision to join the international Convention on Patent Cooperation. The meeting was also attended by Macedonian ambassador to Geneva, Goce Petrevski, and Gjorgi Filipov, Director of the Macedonian Institute for Industrial Ownership Protection. They discussed potential aid, in the form of equipment, for the institute.

    [07] REGIONAL CONFERENCE OF INTERPOL

    Yesterday in Ljubljana, Slovenia, Interpol began its European Regional Conference with the participation of 41 European states, including officials of the Macedonian Foreign Ministry. Interpol's Director, General Bjorg Ericson, said that during the current process of transition in Eastern and Central European states there are doors that are open for a rise of old and new forms of crime. Besides drug and arms smuggling, he pointed to money-laundering operations, international terrorism and computer crime as the most dangerous forms.

    [08] AIR BRIDGE BETWEEN LONDON AND SKOPJE

    Officials of the Macedonian and British ministries of transport are to negotiate, today and tomorrow, on regulating air traffic between the two countries and will focus on establishing a London-Skopje direct air link.

    [09] PARLIAMENTARY BRIEFS

    On May 17 the Macedonian Parliament will hold its 19th session. PMs will be expected to vote on several legal projects, including the proposal for a law on public enterprises.

    [10] NINE MORE COMPANIES TO BE SOLD

    The Macedonian Privatization Agency will offer today the following nine companies for public sale by the managerial method: Skopje Cement Factory "Usje" (DM 100 per share), "Vitaminka" of Prilep (DM 29.11 per share), "Vinka" of Vinica (DM 37 per share), "Veteks" of Titov Veles (DM 71.81 per share), the Bitola Dairy "Mlekara" (DM 132.2 per share), "Elmar" of Stip (DM 192 per share), "Jugotrans" of Struga (DM 78.03 per share), "Zelop" of Sveti Nikole (capital initially priced at DM 1,311,292) and "Agroprodukt" of Skopje (capital initially priced at Dm 121,470). The last two enterprises will be offered for sale by the indivisible part method.

    [11] PRICE OF ELECTRICITY UNCONSTITUTIONAL

    The Macedonian Constitutional Court, at yesterday's session, appealed all acts brought by the Macedonian government and the public electricity company regarding the increase of the price of electricity in the country. Under this decision the price is to be lowered to the price valid before January 30, 1995.

    [12] ROUND TABLE FOR EDUCATION OF ALBANIANS

    The Rector's Office of the University "St. Cyrill and Methodius" in Skopje held a round table yesterday on the topic of "Possible Alternatives for Meeting Educational Needs of Ethnic Albanians in Macedonia". The debate was organized by the Ethnic Relations Center of the Sociology and Political research Institute in cooperation with the Open Society Institute. The debate was of a closed type and included George Soros, founder of the Open Society Institute, the rectors of the two Macedonian universities, parliamentary members, government ministers, representatives of the Initiative Committee of the university in Tetovo, scientists, journalists and members of various forums. Soros insisted on the resolution of educational problems within the legal framework of the society and suggested opening classes in Albanian language at the Pedagogical Academy in Skopje. He expressed readiness to provide financial backup for multilingual studies. As for the initiative for a university in Tetovo, Soros said he disapproved of it, but stressed that it should not be suffocated by oppressive measures. Participants divided into two lines; one group was for solutions within the legal framework and the other went along with the Tetovo university initiators. The organizer offered a third alternative of opening private educational institutions and groups in the Albanian language at certain departments.

    [13] SKOPJE OIL REFINERY WORKS AGAIN

    The Skopje oil refinery, having recently received sufficient quantities of oil, has resumed refinery operations. This comes after a break of an entire year which was due to the Greek embargo. The refinery will try to purchase additional crude oil, despite the ongoing blockades, to enable the continuing production of different types of gasoline.

    [14] SKOPJE MAYOR KILLED IN ROAD ACCIDENT

    Early yesterday morning Goran Nikolovski, mayor of the city of Skopje, was killed in a car accident on the Skopje-Tetovo highway. An investigation is underway. Nikolovski (32-years old) had been in the position of mayor since 1993. Telegrams of condolence were sent to his family by President Gligorov, Prime Minister Branko Crvenkovski, Parliament President Stojan Andov, the mayor of the city of Nuremberg and from the Socialist Party of Macedonia.

    [15] MACEDONIA TIES WITH ARMENIA

    Yesterday the Senior Macedonian soccer team drew 2 all in their game with Armenian team in the Armenian capitol Erevan, thus losing all theoretical chances of qualifying for the next European Soccer Cup. The junior Macedonian team lost against the Armenian players by 2:0.

    [16] MILS SPECIAL SUPPLEMENT: WE ARE TALKING INTERNATIONAL STANDARDS HERE

    (Business Europa April/May 1995)

    Andrew Wilson is confident that Macedonia will have a successful stock exchange. 'A positive factor for foreign investment here,' he says, 'is that Macedonia actually has a securities law, one of the first things done last year. Many emerging markets start without one, like Russia which is only now getting around to creating one. So Macedonia has a very good starting point.' Wilson should know. As part of the International Securities Consultancy (ISC), he helped set up the Russian exchange. His 20-plus years with the London Stock Market, his stewardship of the Scottish Stock Exchange and other various international assignments have taught him many lessons in building up from scratch a securities market. 'The people here in Macedonia want to have a formalised stock exchange,' he says. 'They want to attract foreign investors and this is the proper way to do it.' ISC, a private company formed in Hong Kong five years ago, does international consultancy stock exchange work. Since early December, Wilson has been working on proposals for the Macedonian Securities Exchange Commission. ISC is contracted by the British government through their Know-How Fund. 'We are about a month behind where we would like to be. The target date was 30 September. We have just established a capital markets development council.' Last November an application by a group of banks and private companies was turned down because it didn't comply with the old Yugoslav law - only banks and financial institutions can apply for permission to start an exchange. Since ISC has also reported that only banks should be members of the exchange, 'and this has been very widely accepted; there is no disagreement whatsoever.' The idea is to create an exchange up to western standards, he says. 'First of all, it should be a 'not for profit' institution - any profit should not be distributed to the shareholders. Secondly, it should have an open membership is applicants can meet the criteria for membership, such as capital adequacy, competence and resources. Also, our suggestion which was approved by the commission, was that at least 51 per cent of the members of the board should be independent elected members - from industry and other users of the market, a very western practice.' Dematerialization is a goal for the Macedonian Stock Exchange, he says, where there are no bits of paper flying around. 'Everything will be filed through a central depository and settlement system. Investors get a form of as a receipt; this may even resemble a share certificate but is of no real value.' Wilson says there has been some concern about setting up an exchange after the privatisation process has begun. This has been identified as a problem and a temporary facility for trading shares is being formulated. Banks which are members of the auction process could trade on behalf of their clients by submitting a buy or sell order to this embryonic exchange, which would then match it with a buy or sell order coming in from the other side. It would be very temporary, to provide a supervised method of trading shares. Also, we will have a memorandum of understanding with the privatised companies that have been trading so they can be aware of any price sensitive information emanating from the companies.' The lack of an exchange at the moment could affect foreign exchange investment, he says. Obviously it is a deterrent to foreign investors; equally, there is little information about the companies themselves. One of our tasks is to work with the Privatization Agency and the USAID consultants to ensure that the prospectus of any companies coming under the auction process are compatible with the criteria that the stock exchange would be looking for a listing-type prospectus. We are talking international standards here.' The commission has said that if a bank wants to become a member of the exchange, then it must form a separately capitalised subsidiary company. 'The only reason for this is regulation; if a bank joins as a bank itself, then it would be regulated by the Securities Exchange Commission and by the National Bank (Central Bank). The National Bank, as the banking regulator, is obviously nervous about another regulator encroaching on its territory. So the national Bank is quite happy that the securities trading aspect is taken out entirely into a separate subsidiary company.' Wilson believes the financial institutions in Macedonia have seen and learned the lessons of Russia. 'They want to have a formalised and regulated market. The stock exchanges are not operating to any great extent in Russia; around 95 per cent of all trading in equities and securities is OTC (Over The Counter) - a totally unregulated market. There is now a great push in Russia to develop a trading system very similar to NASDAQ (National Association of Securities Dealers Automated Quotation System) in the United States and through which the intermediaries will trade.' Although Macedonia is behind other countries, says Wilson, 'there is the capability to catch up, and I believe it will be a very successful market. There are a lot of potentially good companies here, but they naturally suffer to a very large extent from a lack of experienced people.' Wilson thinks many expatriate Macedonians will come back and ease some of the skills shortages. 'The financial industry is new to them here and it will create a demand for new labour skills and reduce unemployment. The banks are already taking on more people. A new financial advising industry will also arise. There are many people who want to get involved in it.'

    (end)

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