MAK-NEWS 06/12/95 (M.I.C.)

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

Macedonian Information Centre Directory

CONTENTS

SKOPJE, DECEMBER 6, 1995 (MIC)

[01] RM AT MEETING OF NORTHERN ATLANTIC COUNCIL

The Ministerial meeting of the NATO Council is being held in Brussels, with the participation of Macedonian Foreign Minister Stevo Crvenkovski. The main topics on the daily agenda, in which the Macedonian minister is taking part for the first time since Macedonia's inclusion in the "Partnership for peace" program, are the situation in Bosnia-Herzegovina and the coordination of the activities on the plan of cooperation between the Northern Atlantic Council for Cooperation and the program "Partnership for peace." During the meeting, minister Crvenkovski is expected to meet separately with several colleagues, participants in this meeting.

[02] CREDITING SMALL AND MEDIUM-SIZE COMPANIES

An accord on the realization of the agreement for providing financial assistance to Macedonian experts, founding new companies, was signed between the Macedonian Government and the Government of the Federal Republic of Germany, in the Government of the Republic of Macedonia yesterday. The realizer of the agreement is Almako Bank Ltd. from Skopje.

It is assessed that this marks the beginning of the process of long-term credits for Macedonia, for small and medium- size companies. The credit amounts to 10 million DEM, approved by the Government of FR Germany and 10 million DEM from the Macedonian Government. The realization of separate projects will start in February, next year, and the maximum amount of the credit will be up to 150,000 DEM (or up to 60% of the value of the project), with an annual interest rate of 9% over a period from three to eight years, and a grace period from 6 to 18 months. Macedonian citizens-returnees from abroad, will have advantage in the realization of the credit. The credit from the German Government is endorsed for a period of 30 years, with a 10 year grace period and 2% interest.

[03] SELECTIVE EXPORT STIMULATIONS

The macro-economic policy for next year must be adequate to the newly-developed economic conditions following the end of the war in the former Yugoslav regions. This implies the selective stimulation of the export-oriented economy, a selective approach in the crediting of the economic companies and their exemption from a part of the customs taxes on the import of intermediate goods and equipment, which is not produced in our country. These are some of the more important remarks of the representatives of the export-oriented companies, which were tabled at yesterday's meeting with Prime Minister Branko Crvenkovski and the ministers "covering" the economy, which was held in the Macedonian Chamber of Commerce.

The basic problem, as most of the businessmen underlined, lies in the lack of personal current assets, necessary to restart their own production. Therefore, they asked for the bank credits (which are now at 50% on an annual level), to be reduced to a realistic framework that will correspond with the annual inflation rate of 8%. Furthermore, the increase in the prices of the transport services was accented as a problem, which has followed the lifting of the sanctions against FRY, whereby the railway transport in Macedonia alone has increased 100%.

Prime Minister Crvenkovski underlined that at present, there are normal conditions for doing business. Open borders, a stable rate of the denar, low inflation...The high bank credits, as he stressed, are a result of the bigger financial appetites of some companies which market the surplus financial means with interest rates higher than those of the banks.

As to the introduction of contingents for the import of foreign products and the introduction of selective customs rates, Prime Minister pointed out the need to coordinate the interests between the economic subjects, which should be done, before all, as part of the Commerce Chamber. In this sense, Crvenkovski called on the businessmen to come to an agreement on the determination of their common interests in relation to the exchange with the EU as well, in order to enable the Government to have a more objective approach in the negotiations with the EU.

[04] PROFITEERS SPECULATE

These days, the rate of the Deutsche mark in the private exchange offices in Skopje is constantly rising. Instead of last week's rate of 27.10 denars for 1 DEM, yesterday, it was sold for 27.50 denars. Certain bank circles explain this rise as a psychological moment that has appeared due to the reduced inflow of foreign currencies, which the Macedonian companies realized through re-exports to FR Yugoslavia.

The Governor of the People's Bank of Macedonia Borko Stanoevski comments the rise of the exchange rate in the private exchange offices as the attempt of some exchange offices (Bit Bazaar) to artificially raise the exchange rate, in order to realize profits with the sale of the foreign currencies, which they have in stock. According to the Governor, this rate has no realistic foundations to be maintained for long, since the People's Bank is permanently making interventions through the monetary policy, with additional reserves.

The Governor's statement is supported by yesterday's announcement of the Macedonian Bank that the citizens will be able to buy foreign currencies in its branches at a rate much lower than that of the private exchange offices. Thus, the Deutsche mark could be bought in the Macedonian Bank yesterday at 27.25 denars (including provision).

[05] SWEDISH DELEGATION

A Swedish delegation, led by Pierre Suri, Minister of Development and Cooperation with countries from Central and Eastern Europe, will be staying in Macedonia from today through Friday. The 20-member delegation, consisting of high-ranking representatives of the Swedish political establishment and a couple of businessmen, will be received by Prime Minister Branko Crvenkovski and Parliamentary Speaker Stojan Andov. This visit is a continuation of the cooperation that started with the visit of Victor Gaber, Under Secretary in the Macedonian Foreign Ministry, to Sweden, last month.

The goal of this three-day visit, according to Tihomir Ilievski, ambassador of the Republic of Macedonia to Sweden, is not only to strengthen the bilateral cooperation, but also to enforce the economic development in these regions, initiated by the recent decision of the Swedish Government to make investments in the Republic of Macedonia.

Beside the reception with the Minister of Development Bekjir Zhuta, who will host the delegation, meetings will also be held in the ministries of economy, education.

[06] UNACCEPTABLE CUSTOMS CHARGES

The Serbian Chamber of Commerce has assessed that the latest decision of the Serbian Government to impose customs duty and contingents, subjects products from Macedonia to unacceptable charges. This assessment was made at the meeting of the presidency of the Chamber of Commerce of Serbia, held in Belgrade on Monday, at which the Government was asked to reexamine its decision, in accordance with the agreement of the Commerce Chambers of Serbia and Macedonia.

The president of the Chamber Vlajko Stoiljkovich and the businessmen from Serbia have concluded that the new customs rates and contingents affect literally all export products from Macedonia. As it was said, the Government brought these measures without consulting with the businessmen.

"Macedonia's special status has crossed to regular regime, just like with the other countries," FRY Trade Minister Djordje Silovich said in relation to the decision of the Government in Belgrade to impose customs duty toward Macedonia.

"It was not done with an intention to put a load on Macedonia, but to place the trade relations in a normal framework. The road ahead lies in regional connections," the Belgrade media report his statement from yesterday. Stating that following the suspension of the sanctions against FRY, customs duty and other taxes are introduced toward Macedonia, "just like toward any other state," the commentator of the independent "Nasha Borba" writes that an explanation for such a decision is sought in the opening of the Yugoslav borders and the intention to put an end to the need to have to "sneak" goods into the country.

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