MAK-NEWS 02/03/95 (M.I.C.) [**]

Ta nea ths hmeras, opws ta eide to MIC:
  • [01] * YUHA ENGSTROM: "SITUATION IN TETOVO NOT TENSE ANYMORE"

  • [02] ** UNCHANGED POLICY TOWARDS MACEDONIA

  • [03] * U.S. MILITARY LIAISONS TEAM IN RM

  • [04] . HUNGER STRIKE ENDS IN SLOVENIA

    MONEY - Economy, Business, Finance & Market

  • [05] . GOVERNMENT - MACROECONOMIC POLICY FOR 1995

  • [06] . APPOINTMENTS - BORKO STANOEVSKI RE-ELECTED GOVERNOR

  • [07] * MEETINGS - DUTCH AMBASSADOR MEETS WITH MACEDONIAN MINISTERS

  • [08] . "LOSERS" - WAITING FOR GOVERNMENT MONEY


  • SKOPJE, 2 MARCH, 1995 (MIC)

    The new UNPROFOR Commander in Macedonia General Yuha Engstrom told MIC that according to reports of UN observers, the situation in Tetovo is no longer tense. "There is no increase in our patrols on the border with Albania. There is no need for that as the situation is calm." General Engstrom explained that it was normal, with the coming of spring, to have more patrols on the other side of the Macedonian border.

    General Engstrom stated that "dialogue is the only way of finding a solution for any problem," and "the field reports say that the Macedonian police has left the places where the incidents took place some ten days ago."

    "It is in our interest of prevent those conditions, which could also mean a threat to the peace," said Engstrom.

    Serbia will not recognize "Skopje" under the name Macedonia, provided it does not reach an agreement with Greece first. According to the Greek press, this stance was expressed by the Serbian leader Slobodan Milosevich in the meeting held in Belgrade two days ago, with the leader of New Democracy Miltijadis Evert, Makpress reports.

    The leader of the Greek opposition Miltijadis Evert, following the meeting with Milosevich, stated that he had received confirmation from the Serb president that he would remain on this position "at any political price."

    Makfaks, quoting the Athens news agency yesterday, conveyed that the last meeting between the Greek president Konstantinos Karamanlis and Prime Minister Andreas Papandreou was most probably held in Athens. The meeting was expected to be predominated by questions of the internal and foreign policy of the country, and to place a special accent on the national problems preoccupying Greece at the moment.

    According to AFT, Greece, Romania, Bulgaria and the U.S.A. will carry out joint military maneuvers in the region of Peloponez in May, as part of the NATO "Partnership for peace" program, the General Staff of the Greek army announced.

    Germany will take part in the maneuvers as an observer, while an invitation for participation, in the same function, has been sent out to Albania, which has still not sent an answer from Tirana, is said in the announcement of the Greek General Staff.

    As part of the program for joint contact-teams of the main headquarters of the U.S. Command for Europe, from yesterday, as well as in some member-states of the initiative "Partnership for peace," a military liaisons team has been deployed in RM, on the basis of long-term occasional duties.

    The beginning of the work of the military liaisons team realizes a part of the obligations for cooperation on a military plan, defined in the Memorandum for cooperation, signed between the Macedonian Ministry of Defense and the U.S. Department of Defense. Together with representatives of the Ministry of Defense and the General Staff of the Macedonian Army, the U.S. military liaisons team will work on the realization of the program for joint contact-teams in the Republic of Macedonia.

    The program that also contains the project - "Bridge toward America," the priority will be given to building up the army structure according to the model of the U.S. armed forces, as model of an competent army under efficient civilian control.

    The Macedonian embassy in Ljubljana informs that the hunger strike of the two Macedonian entrepreneurs Mihajlo Srbakovski and Andreja Radinovski from the construction company "Pecalbar" - Vevcani, in Maribor, has ended successfully.

    After making extraordinary efforts, the Ministry of Economy and the Slovenian Chamber of Commerce managed to find funds to pay the entire debt of "Gradish-Maribor" to the construction cooperative "Pecalbar." The bank transferal of the funds is underway.

    Ambassador Dimitar Mirchev, who visited the strikers, informed them of the found resolution, and asked them to end the strike, which they did.

    The two Macedonian workers will remain in Maribor a couple more days to recuperate, under medical supervision.

    MONEY - Economy, Business, Finance & Market

    [05] GOVERNMENT - MACROECONOMIC POLICY FOR 1995

    Yesterday in the Macedonian Parliament, Prime Minister Branko Crvenkovski and the ministers of the departments connected with the economy read out their reports on the economic policy over this year. The MPs from the Albanian parties, however, did not take part in the session, as a result of the events connected with the Tetovo university.

    In his report, Prime Minister Crvenkovski said that the economic reforms which are offered in this package do not have an alternative and that they are already accepted by the IMF and the WB. The package of program measures, according to Prime Minister Crvenkovski, include curbing the inflation to 18%, growth in the foreign currency reserves in the National bank of Macedonia for some US$ 60 million over the year, which presents eight-week exports of the Macedonian economy.

    The prime minister said that one of the aims is keeping the rate of the denar at the present level, as well as eliminating the deficits in the budget. An attempt will be made to eliminate the deficits in the Fund for pension insurance, till the middle of the year.

    The second part, according to the prime minister, applies to the privatization and the financial rehabilitation of the banking system.

    The prime minister stated that an attempt will be made to speed up the privatization, as well as transformation of the 25 "losers" and the sale of the business areas.

    As for the banking system, linear rehabilitation of the banks will be conducted, by transferring the frozen debts to the state, as well as transformation of the banks and privatization of "Stopanska banka."

    An important segment in the reforms, according to the prime minister, also presents the return of the debts to the world financial organizations, as well as the adoption of new laws for the business associations, for the public companies, for denationalization, etc.

    As the fifth segment in this program was the supply of credits from abroad. So far, according to the prime minister, US$ 85 million have been provided from the World bank and an additional US$ 14 million as support of the social policy. Also, US$ 100 million have been provided as credit funds for the traffic infrastructure, the agriculture, support of the private sector and the small economy.

    The Minister of Finance Jane Miljovski stated that the main aim of the macroeconomic policy of the Government will be the further reduction of the inflation, and stated that last year's inflation of 57% is still much too high. The main parts of the budget policy will the measures for the fiscal support of the monetary policy, which, with the surplus of purchase of foreign payment funds, will try to retain the stability of the denar.

    He said that for the conduction of the reforms, measures have been accepted which will increase the budget 2% from the GDP, and that sum is 3.5 billion MCD (US$ 90 million). This will be achieved by raising the prices of the oil derivatives.

    Speaking of the relations with the foreign creditors, minister Miljovski said that a part of the unlocated debt of former Yugoslavia to the IMF would have to be recognized, which is estimated at 5.4% of the total unlocated debt. Only afterwards, can the negotiations with the Zurich club start, in which the commercial banks are represented, which previously gave credits to the Macedonian banks and companies from Macedonia.

    As for the restructuring program for the "losers," the Minister of Economy Risto Ivanov, beside stating the already known situation, stated that so far, the "losers" have submitted request for the provision of revolving capital of up to MCD 13.61 million (US$ 350,000), while, by March 1, 1995, requests for pronouncing 3,881 workers as technological surplus have been submitted. In addition, government commissioners in the Managing boards of the companies have been appointed.

    The Minister without portfolio Ljube Trpevski, discussing the rehabilitation of the banks, stated that upon the cleaning of the financial statements of the banks and the obligations to the Paris club, the same would be transferred to the Agency for rehabilitation of the banks, while the obligations to the Zurich club would still remain in the banks.

    In order to lessen the dominant position of "Stopanska banka," in the state banking system, it has been agreed for it not to be greater that 1.8 times from the next largest bank. With that aim, Trpevski said, one branch of the bank of up to 10% of "Stopanska banka" will be separated, which will get a licence from the National bank to work as an independent bank with private capital of 51%.

    Minister Trpevski also spoke of the relations with the foreign financial organizations, for which he said that US$ 85 million would be obtained from the International Development Agency, as well as US$ 14 million for the social programs. These credits are with 10 years grace period, 30 year pay back deadline, without interest. In addition to these US$ 100 million, negotiations are being conducted for another US$ 100 million from the WB for development projects in the agriculture, road infrastructure and for development of the private sector.

    Minister Trpevski also stated that the stand-by arrangement with the IMF would bring Macedonia US$ 55 million.

    [06] APPOINTMENTS - BORKO STANOEVSKI RE-ELECTED GOVERNOR

    Borko Stanoevski, governor of the National bank of Macedonia, has been re-elected to the same function, in yesterday's session of Parliament.

    He was born in Berovo in 1937. Graduated from the Faculty of Economics in Skopje and holds a Masters' degree in development. He has been working in the National bank for 15, and has been governor 8 years. This is his third mandate on this function.

    [07] MEETINGS - DUTCH AMBASSADOR MEETS WITH MACEDONIAN MINISTERS

    The ambassador of the Kingdom of Holland in Macedonia Baron von Palant was received by the ministers Dimitar Buzlevski, Muhamet Halili and Emilija Simovska.

    The talks with the Minister of Traffic and Relations Buzlevski focused on the forthcoming signing of an agreement for road and air traffic between Macedonian and Holland. It was agreed to provide further contacts at expert level.

    In the talks with the Minister of Education Simovska and the Minister without portfolio of Albanian nationality Halili, the main topic was the situation in the education of the nationalities. Ambassador Palant offered financial help from his country for education of the nationalities.

    [08] "LOSERS" - WAITING FOR GOVERNMENT MONEY

    The President of the Union of the Skopje Steelworks Petre Acovski informed that the Steelworks is of dire need for the funds from the deal with Ukraine. He stated that Prime Minister Crvenkovski promised that US$ 3 million, from the necessary funds of US$ 7.5 million would be paid, however, that has still not been done.

    Acovski stated that rumors were already spreading in the Steelworks that it would go into liquidation in June, and that the Government has still not responded to any of the Steelworks' requests. Nevertheless, he added that certain part of the Steelworks would continue working, such as the part for the production of iron.

    According to Acovski, another problem are also the personal incomes, which have not been paid for 5 months already, and which, even if the deal with Ukraine is provided, will not be able to be paid soon, as the production process lasts 2.5 months.


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