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MILS: News from the FYROM, 97-06-03Macedonian Information Liaison Service Directory - Previous Article - Next ArticleFrom: "Macedonian Information Liaison Service" <mils@mils.spic.org.mk>CONTENTS
MILS SUPPLEMENTMILS NEWSSkopje, 03 June, 1997[01] MEMBERS OF NEW GOVERNMENT RECEIVED BY PRESIDENT GLIGOROVYesterday the President of the Republic of Macedonia Kiro Gligorov received PM Branko Crvenkovski with the members of the new Government, revealed the presidential cabinet. Upon congratulating them on their appointment, President Gligorov expressed his conviction that the new Government will endeavour to determine the most appropriate solutions to overcome current difficulties and create conditions for a faster development of the Republic of Macedonia - in spite of the complex socio-economic situation.[02] GOVERNMENT VICE-PRESIDENTS APPOINTEDDuring the first formative session of the Macedonian Government, PM Crvenkovski has appointed the following Vice- Presidents: Dr. Zlatka Popovska, Dimitar Buzleski and Naser Ziberi. Concordant to legal provisions these are to handle matters entrusted to them by the President. they are also to coordinate projects covering several sectors, Government sources reveal. The session commenced by PM Crvenkovski delving into the basic priorities of the Government over the following few months. These would above all refer to the budget deficit, internal debts and an analytic approach to employment. Upon familiarizing the new members with Government procedures, Crvenkovski stressed the necessity for improving cooperation and communication among ministers, while completely respecting the functioning of the Government as a collective structure - and the dignity and repute of every single member. During yesterday's session the Government has also outlined the draft-bill on labour inspection, which regulates the structure and operation concept of the National Labour Inspectorate, in contrast to existing legal provisions. Thus specific articles focus on measures and modes of monitoring - at the same time advocating the implementation of concrete legal provisions covering labour, employment and health and safety at work. This draft-bill would oblige the Inspectorate to implement legal and other provisions concerning relations of employment, as well as to monitor employment policy and the providing of health and safety at work and the upholding of collective agreements (outlining relations between the employer and employees).Sources reveal that the positive experience of developed countries has been integrated into this bill, including regulations generated by the Labour Inspection Convention. [03] FLAME OF PEACE ENDED ITS JOURNEY THROUGH MACEDONIAWith the ceremony marking the handing-over of the Flame of Peace to Head of State Kiro Gligorov yesterday, the 1 000 km long `Peace Run' came to its end in front of the MNT in Skopje. This by now traditional race has started in front of the UN seat in New York, while the Flame arrived in Macedonia through neighbouring Greece on 24th May. From Gevgelija the participants in this race have travelled through 26 cities and several smaller communities, in their endeavour to spread their message of peace. The last bearer of the torch in Macedonia was the young pianist Irina Naumovska from Skopje. She handed over the Flame to President Gligorov and read the Message of Peace. This was complemented by the forwarded messages from numerous NGOs, and a concert. The Flame is to resume its journey to Rome - where it will symbolize the wish for Peace from this part of the globe - together with 80 more torches from all around the world.[04] ON THE ROLE OF SMALL STATES IN `NATO' EXPANSIONDuring the Plenary Session of the North Atlantic Council in Luxembourg, under the motto `NATO in the Aftermath of the Madrid Summit, the general debate was being attended by a Macedonian delegation headed by Nano Ruzhin. MTV reports that in this context Ruzhin underlined the relevance of small states within the expansion of the Treaty Organisation, while adding that a more intense cooperation regime within the `PFP' Programme - known as the `Partnership Plus' - should be augmented by an increased role of associate members within NATO.[05] `SAL' ARRANGEMENT PREREQUISITES UNDER FIREThis Monday a WB mission arrived in Macedonia, in order to meet representatives of the Government, the NBM and the Retirement Pension and Disability Fund. Talks are to revolve around the prerequisites to the `SAL' Arrangement (worth 60 million dollars), i.e. the Macedonian side is to endeavour to convince the WB experts that the latter are being fulfilled. The Macedonian Radio reveals that this loan should be completely implemented by 31st March 1998. Besides this, `Dnevnik' informs that conditions to be met by the Government refer to the all-inclusive liberalization of trade (i.e. of the export-import regime), to the suspension of agriculture subsidies, the lowering of retirement pensions, unemployment benefits and the freezing of income levels at the public administration sector.[06] PAYMENT FLOW MOST PROBABLY TO BE HANDLED BY BUSINESS BANKS AS OFSEPTEMBERA-1 TV reports that the Macedonian banking sector is most likely to request the postponing of the application of the new payment flow management model. In compliance to the latter - the NBM envisions the handling of major transactions by business banks instead of the Payment Flow Institute as of 1st July. All transactions regardless of their magnitude would then be handled by business banks exclusively as of the beginning of next year.The most recent views aired by Macedonian bankers, however, are reported to advocate a postponing of this approach until the start of September. [07] COOPERATION AGREEMENT BETWEEN `MAT' AND `JAT' DUE SOONA-1 TV reveals that a cooperation agreement between Belgrade-based `JAT' and Macedonian air line `MAT' may be on the horizon very soon. Basic terms would regulate the joint emergence on third markets, the coordinating of flight schedules, the better use of available aircraft capacity, etc.It is being mentioned that the imminent signing of such an agreement would be the first step towards executing the concept of regional link-up in the Balkans, analogical to the example set by `SAS'. To this purpose a series of negotiations have been conducted with the Romanian national air line, then with `Balkan' from Sofia and `Avioimpeks' from Skopje is also being mentioned. According to `MAT' representatives the possible improvement of cooperation among several air lines in the Balkans would have to be founded on an egalitarian basis, without forcing individual companies to give up their identity. [08] TETOVO: GREEK-MACEDONIAN JOINT VENTURE ON DISHWASHING MACHINES PRODUCTIONYesterday the new production facility for dish-washing machines has been opened with a small festivity at the `Unius-Promet' company at Tetovo - the Macedonian Radio reports. This most recently built factory at Tetovo has been co-funded by the employees of `Unius-Promet' (who also provided the premises) and by Greek company `Morris'. The Tetovo-based business is already manufacturing TV sets, antennas, irons, vacuum cleaners and other household appliances. The new plant has been opened by the President of the Macedonian Chamber of Economy, Dushan Petrevski.[09] INOCULATION OF APP. 140 000 CHILDREN AGAINST POLIOAs of yesterday all mother and child care facilities in Macedonia have commenced the extra-ordinary inoculation against polio, `Vecher' reports. This one-week-long undertaking is to cover around 140 000 children between the age of three months and four years. This preventive measure has been proposed by the WHO, in order to contain the possible spreading of this virus since its has surfaced in Albania and on Kosovo some time ago. The inoculation project is to encompass all children, regardless of whether they have been vaccinated before, which is why they have been invited prior to the commencement of this action, aided by UNICEF (through procuring 250 000 vaccines from France).[10] IMRO-DPMNE: `IT IS THE SDSM'S MOVE NOW'After studying the reports on the one-hour meetings in all major communities in Macedonia on 31st May, the IMRO-DPMNE Executive Committee assessed these demonstrations as more than successful, since the overall turn-out has been estimated to more than 150 000 citizens. This - stated IMRO- DPMNE leader Ljupcho Georgievski yesterday - proved that the public is utterly discontent with how this country is being governed which is why early elections are being demanded. The IMRO-DPMNE has proven itself capable of staging such an event within the bounds of democracy, while asserting that public events in the streets are the ultimate form of peaceful demonstration - of expressing the will of a nation. `Through these meetings the IMRO-DPMNE has practically acquired the direct legitimacy of the people, the approval of entering negotiations with the Government on determining the date for early elections in the Republic of Macedonia. Our immediate goal has been achieved, and now we are awaiting the next move by the SDSM', stated Georgievski during yesterday's press conference. MTV further informs that IMRO-DPMNE would not stop insisting on the fulfillment of the already known demands, while adding that they would devise specific means at the right moment to ensure their implementation. These days - Georgievski stressed - the dialogue with the LDP on achieving their common goals (early elections, etc.) would also be initiated.[11] GOSTIVAR: `CONCLUSIONS INSTEAD OF UPHOLDING THE LAW'This Monday the Spokesperson of the Macedonian Constitutional Court, Jugoslav Milenkovikj, revealed that the Court had received a letter by the Gostivar Municipal Council in which no direct reply had been offered as regards the Court's request - i.e. it has not been stated whether the temporary order to remove the flags has been implemented. The Constitutional Court is merely being briefed in on the conclusions adopted during the session of the Municipal Council on 26th May. The Court's Spokesperson stated that the Constitutional Court intends to discuss the contents of this letter today, after which it is to issue a statement on further steps to be taken. So far it has been rumoured that the Constitutional Court is most likely to request the Government to implement the temporary court order. According to Gostivar Mayor Rufi Osmani, this letter notifies the Constitutional Court that Osmani remains to defend the views of the Municipal Council as the Mayor - and it points out that the execution of this order may father forth a gravitating escalation of inter-ethnic tension in Gostivar and the wider region. In this context A-1 TV reveals that the Court is being asked to adopt the conclusions of the Municipal Council during an extra- ordinary session, and thus suspend the previously issued order, until corresponding acts of law are enacted.[12] PAN-EUROPEAN UNION REQUESTS THE WITHDRAWING OF ALBANIAN AMBASSADORThe Pan-European Union of Macedonia has most severely condemned the conduct of the Albanian Ambassador to Macedonia, H.E. Amb. Shaban Murati, as he attended the PDP Central Assembly at Struga last Saturday. It has demanded from the Government of Macedonia i.e. the Foreign Office to proclaim H.E. Amb. Shaban Murati `persona non grata'. This is being justified - the request states - by the blatant interference of a foreign diplomat into political activities of another country, which represents a violation of the elementary diplomatic code of conduct. The severeness of the criticism is only being augmented by the publicly expressed support of Ambassador Murati to the illegal and anti- Constitutional `University of Tetovo' and the use of the Albanian national flag as part of the insignia of the Albanian ethnicity in Macedonia.[13] POLITICAL GAMES PLAYED AT THE PEDAGOGICAL FACULTY OF SKOPJEYesterday's statement of the PF Students' Association, it has been stated that the unusual and arrogant conduct of their Albanian fellow-students already acquired the dimensions of political games master-minded by Albanian political parties.Besides this, it is being emphasised that Albanian students admitted to this institution did violate certain articles of the Law on the Use of Minority Languages - whose enactment they initially favoured. Thus they continue to boycott instruction conducted in Macedonian, while nevertheless demanding the administrative recognition of the past semester. MILS SUPPLEMENT[14] `Denars Are Disappearing - Debts Are Growing'(`Nova Makedonija' - 31st May 1997)A huge lack in liquid assets is bringing the country down on its knees. Instead of funds, the `vicious' circle is being comprised of compensations, transfer of dues and assignations - i.e. of the simple exchanging of goods and documents. This is being complemented by a general lack of order... everybody owes everybody: companies owe companies, enterprises owe their employees, or the state (and vice versa). This is affecting trends on the hard currency market. The DM is stable on the one hand - but on the other hand there is no one to buy it. Experts say that this is a direct indicator of economic conditions and the decreased consumer capacity among the population. The number of enterprises in which pay is not being disbursed on a regular basis, is growing with each month. Based on most recent statistic data, throughout March 24.5% of the labour force do not receive any pay. Of these 31.4% fall off to the economic sector - and 4.1% are occurring within the non- economic one. This entails a particularly unfavourable position for large companies with a large number of employees. The number of blocked Giro accounts is on the rise, and this merely allows the disbursement of minimum pay. Following the numerous banking scandals in the country, all other financial affairs and the announcement on the mode of client restitution - a great number of rumours are making the round. Yet there is no sort of confirmation whether the withdrawing of denars and the withholding of pay is a direct consequence of all this. In this context it also occurred for the first time in ages that retirement pensions from the third group have been withheld over a longer period of time. In spite of such conditions, experts consider that there are liquid funds but that they are merely being `hoarded away' for bleak times! Upon analyzing the causes for such a situation they do not exclude the psychological moment. General working conditions have been creating a sense of insecurity among entrepreneurs to such an extent that the majority of them does not even consider starting a new venture - but they are doubting whether they will be in the position to wrap up the ones already in progression. Nobody seems to pay for provided services or delivered goods - fully aware of the fact that there is no mechanism in this country capable of forcing them to do so. This disease of neglecting to settle one's dues even appears to have befallen (local) government structures. This fear of circulating money may also be ascribed to conditions in the neighbouring countries. Unrest in Albania, Bulgaria and SR Yugoslavia have cut many business ties, postponing the disbursement for provided services / goods at the same time. All this rekindles the suspicion that the economy is burdened by greater sanctions than it used to be. Such analyses inevitably lead to the `TAT' banking scandal in which huge sums of money went M.I.A. Thus it is being said that businessmen are hiding their assets in fear of losing them once they would have been detected. Times are such that nobody is plunging into unforeseen expenses, while the settling of dues is not considered compulsory. This boils down to the following: should tax be evaded there is a risk of ending up at the bar, but if debts are not paid - nothing happens... Bankruptcies are becoming the favourite `drama production of this age' in order to avoid settlement. Goods are being ordered and received while they are not being paid for, etc. Bankruptcy procedures are being dragged out longer than allowed and the state has neglected to devise a mechanism that would enforce the settling of dues with business partners. The best case would make provisions for restitution within three months - and at times even this is postponed for up to several years. The anarchy prevailing with regards to paying tax is one of unseen proportions. The budget becomes increasingly emptier and the money crisis appears to have `contaminated' the health sector, education, the Government ministries, etc. This closes the vicious cycle. In conditions of this sort the disbursement of pay is a long way down the list. Concordant to provisions on financial transactions, priority obligations have been set down for companies lacking liquid assets. These `charts' are being led by tax, while minimum personal income occupies the runner-up position. Based on data released by authorities , the number of those enterprises ever making it to No. 2 is trifling. It has also been registered towards the end of 1996 that pay-related dues have grown by almost 50% in the business sector! The Payment Flow Institute is further indicating another paradox. As of the beginning of this year the regular disbursement of pay has improved a `wee bit' - but not in a financial sense... This is rather due to the fact that enterprises do forward the minimum pay for each industrial branch, prerequisite for the forwarding of payroll contribution and for `keeping in good graces' with the Payment Flow Institute in spite of a lack of funds and a blocked account. It has further been stressed that recently the number of the latter has been increased considerably. Another public `holy cow' confirms that part of these funds are circulating through other than state channels. In terms of reimbursement for food and transport expenses of employees, it has to be noted that in spite of the fact that income has not been paid over several months - these expenditures are being covered. In addition to this the compulsory transferring of funds from hard currency to denar accounts has been suspended. Thus entrepreneurs are using these funds to their advantage - exchanging them on the market while their giro account remains blocked at the same time. This leaves basic dues - including the one of paying employees - unsettled. The situation is such that nobody is interested in even obtaining a loan. There are credit lines but no clients... Nobody dares taking money while not knowing whether there will be a possibility to return them. Therefore economic activity has been reduced to a minimum. Without a solid financial basis every entering into a new business or production venture becomes a maximum risk. Can one thus escape the vicious circle of `no money, no discipline, no life' ? The Payment Flow Institute experts have been advocating several options. Due to the fact that debts among companies seem to be the main burden - multilateral compensation has been proposed. There have been previous instances of such multilateral clearing procedures , and so far results have been solid. It is being expected to register that most of these dues are fictional, as everybody is prone to report that (s)he is being owed something - regardless of whether this happens to be the truth. Once these matters have been settled, there has been the idea to go about improving the overall economic climate - not by issuing new money, but by implementing existing funds to advance business. To this purpose there would be tax alleviation (i.e. the exempting from paying personal income tax) for export enterprises, since it is known that subsidies have been suspended some time ago. This has to be inevitably complemented by compiling a set of complex measures to tighten up affairs in the fiscal sector, to speed up liquidation procedures, etc. as the bankruptcy of one enterprise usually entails severe losses for 5 to 6 more businesses. (end)mils news 03 June 1997Macedonian Information Liaison Service Directory - Previous Article - Next Article |
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