MILS NEWS 19/04/96

From: "M.I.L.S." <mils@MILS.SPIC.ORG.MK>

Macedonian Information Liaison Service Directory

CONTENTS

MILS NEWS

Skopje, 19 April 1996

[01] NEW YORK TALKS AS EXPECTED

As Macedonian media reports, no significant progress was made during this fourth round of talks, but the mediator Cyrus Vance had denied the speculations that he would return his mandate to the Security Council.

A-1 Television reported the information of the Greek agency 'ANA', according to which Cyrus Vance stated yesterday that he was satisfied by both parties' stands and that he found it unnecessary to inform the Security Council in this negotiating phase.

[02] CIA - GREEK-MACEDONIAN DISPUTE BECAUSE OF MACEDONIAN LAND

The report also reads that Alexander the Great and Macedonians at that time were Illyrians and enemies to Greece, and that Macedonia was not Greek. The authors claim that Greece refuses to recognise Macedonia not only because of the ancient emperor, but also because of its fear that Macedonia might require a returning of its predecessors' land and a compensation for the violence in the past. Greece is also afraid, reads the report, that Macedonians might ask for their homes to be returned to them, which might become one of the most serious issues in this part of Europe. The report ends with the statement that, after the Second Balkans War, 'a policy of Hellenisation was applied in the Aegean Macedonia, and hundreds of thousands Greeks were settled in the area.'

[03] FRCHKOVSKI - 'GREECE MAY CALL MACEDONIA HOWEVER IT LIKES'

Regarding the Macedonian-Greek relations, he stated that the Accord on regulation of the bilateral economic and political relations signed last year, had been functioning excellently, and that it was a matter treated separately.

In his interview for the Austrian paper 'Courier', Frchkovski stressed the efforts of Macedonia to be included in NATO as soon as possible, explaining that the NATO troops in Macedonia and Albania would guarantee the Balkans peace.

He added that having these troops in the region would be an advantage for the Alliance itself, as it would calm down the tensions between Greece and Turkey.

Frchkovski also said that the idea of the Serbian president Miloshevic to divide Macedonia between Serbia and Greece had been definitely buried with the Skopje-Belgrade recognition.

Referring to the dividing of the former SFRY property between its former republics, Frchkovski emphasised this was a still unsolved issue, with only a global framework.

[04] ISSUING AUSTRIAN VISAS IN MACEDONIA?

[05] TECHNICAL NEGOTIATIONS ON THE AGREEMENT WITH EU STARTED

[06] MALAYSIAN PRIME MINISTER IN MACEDONIA TOMORROW

[07] MINISTER PORTILLO IN MACEDONIA IN JULY

[08] THE LATE PENSION WILL BE PAID FROM JUNE ON

Premier Branko Crvenkovski informed on yesterday's press conference that the government had obtained the money from other sources: from the privatisation capital, from the income paid by the Bank Rehabilitation Agency, from excess income of the public enterprises, etc.

This would be considered, according to Crvenkovski, the second rehabilitation phase of the Pensions Fund, and the third phase was planned to take place in 1997, when the Fund would be transformed into a Capital Fund and would work by the example of the west European countries.

President of the Pensioners Union Vite Isjanovski pointed out that the pensions fee had been raised a year ago, and the number of new pensioners had been restricted to 200 from the previous 1500.

[09] INDUSTRIAL PRODUCTION INCREASE OF 5.3%

The industrial production in March has raised 12.9% since February, especially in the electrical, constructional, food and tobacco industry. The products prices have jumped 0.7% compared to February, and 0.8% compared to last year.

Macedonian Television reported the information from the Statistics Institute that the consumers goods prices were at the same level as the previous month, but had increased for 5.4% from the average last year ones. The costs of living in March were 0.5% lower than in January, due to the lower expenses for food, culture, hygiene and health. They are, however, 6.2% higher than in the same period last year.

The average Macedonian net salary in January was 8 296 denars, i.e. 0.1% less than the 1995 average one. Necessary expenses in March reached the level of 9 262 denars, which is 2.8% more than in February and 8% more than at the beginning of 1996.

Macedonia had 349 954 employed in January 1995, 2% less than 1995 average. The number of officially unemployed has been increasing: 23.2% more people were unemployed in December 1995 than in 1994. According to Macedonian Television, 16.6% of the employed in Macedonia had not received one, two, three, or more salaries.

[10] BULGARIAN POLICE INVESTIGATES THE CASE OF JANCHEV

The information on the death of Janchev was kept a secret, as alleged, because a delegation of the EBRD Governors Council had been staying in the residence where he was found dead.

The opposition paper 'Demokratija', on the other hand, wrote yesterday that Ivo Janchev might have been killed because of the secrets of 'Multigroup', as those close to him had strongly rejected the possibility for a suicide.

MILS SUPPLEMENT

[11] Next Stage for Macedonia (Part 2)

('Financial Times' - East European Market, February 16 1996)

Finally, the brewery itself was privatised with initially 69.04 per cent of the shares in the company going to management and workers, but with management board finally securing a 52.6 per cent share.

Ratko Cadikovski, the brewery's deputy general director, speaks confidently about the company's future. There is a 'foreign cooperation' as he coyly refers, to the Heineken overtures, the brewery's Coca Cola plant is to be modernised and expanded under a DM 34m plan, probably with EBRD input and the company is working to a regional market strategy to the year 2010, drawn up by western experts. Says Mr.

Cadikovski: 'We are confident we have a bright future. So are our employees. They can see foreign investors on the horizon and they know the value of their stake in the company.'

Stock exchange. One thing that is likely to spur the initial domestic investment is the opening of the Skopje Stock Exchange in March. Thanks to a UK Know-How Fund programme, a full complement of staff has been trained and the technology is there. The exchange only needs a building for its floor.

Initially it will start with 20 members - banks and two insurance companies and will begin trading two or three days a week, gradually expanding.

The exchange will trade at three levels: larger companies with capitalisation of DM20m, 200 shareholders, 20 per cent shares in public hands with three years of audited annual accounts; smaller firms (DM9m capitalisation, 100 shareholders and 10 per cent in public hands with two years audited accounts); and other securities. 'It will be an education process', says Andy Wilson, the British securities consultant who headed the project. 'Macedonian management does not want to lose control. We must educate companies that they need to grow and for this they need capital. The logical place to go is the stock exchange.'

In March privatisation moves another step forward along the path set by the World Bank's $85m Financial and Enterprise Sector Adjustment Credit (FESAC) programme. Deliberately excluded from the first round of the sell-off it might prove a longer haul, possibly taking three years. Although 80 per cent of agriculture has traditionally remained in private hands, the sector is dominated by large agri-kombinats which are vertically integrated, with extraneous business interests.

Adds the World Bank's Alberto Eguren: 'Privatisation has broken the incestuous relationship between enterprises and the banks. Now we move on to bigger and better things by unleasing agriculture. It is perhaps the country's greatest asset and modernisation would multiply Macedonia's export potential.'

(end)

mils news 19 April 1996