MacedonianeconoMic Guide

(econoMic diPLoMacY)

�

This publication was produced for review by the United States Agency for Inter-national Development. It was prepared by the Ministry of Foreign Affairs of the Republic of Macedonia in conjunction with the Ministry of Economy, the Ministry of Culture and the Agency for Foreign Investments of the Republic of Macedonia.

The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

Courtesy by MIC. Photo on the cover page: Rumen Kamilov; Nace Popov

CIP- Каталогијација во публикацијаНационална и универзитетска библиотека “Св. Климент Охридски“, Скопје338(497,7) (036) MACEDoNIAN Economic Guide (economic diplomacy). - SkopjeUSAID Business Environment Activity, 2010. - 51 стр. ; илустр. ; 21 смфусноти кон текстотISBN 978-9989-2881-8-0а) Стопанство - Македонија - Деловни водичиCoBISS. MK-ID 81506570

�

RePuBLic oF Macedonia

GeneRaL inFoRMaTion

Geography

The Republic of Macedonia is situated in the central part of the Balkan Peninsula (Southeastern Europe) covering an area of 25.713 square kilometers. Its relief is characterized by large and high mountain massifs giving way to extensive, flat valleys and plains.Almost the entire territory of Macedonia lies between latitudes 40 and 42 and is a transitional region between the Mediterranean and Continental climates. The climate is classified as being transitory from a Continental climate to a Mediterranean climate. The country is bordered by Serbia and Kosovo to the North, Bulgaria to the East, Greece to the South and Albania to the West. The capital is Skopje. other major cities are Bitola, Kumanovo, ohrid, Tetovo, Veles, Gostivar, Stip and Strumica.

climate

Macedonia has a moderate continental climate with four distinct seasons. Along the Varadar and Strumica river valleys, the climate is temperate Mediterranean. Inland, the climate is generally continental with hot-dry summers and cold-wet winters.

Population

The population of Macedonia is approximately 2.05 million of which over 600,000 people live in Skopje, the political, administrative and commercial centre of Macedonia. After Skopje, the largest cities are Bitola, Kumanovo, Prilep and Tetovo, with populations ranging between 50,000 to 100,000 people.

Ethnic groups:Macedonian- 64.2%Albanian– 25.2%,Turks – 3.9%

�

Rhomas – 2.7%,Serbs – 1.8%,Bosniaks – 0.8%,Vlachs – 0.5%others- 1%

Ethnic Macedonians are generally Christian orthodox and ethnic Albanians are generally Muslim. Catholics comprise the next largest religious group.

The official language is Macedonian. Additional languages spoken in Macedonia include Albanian, Turkish, Rhomas, Serbian, Vlach and other languages.

Transport

Although a landlocked country, Macedonia benefits from a strategic geographical position at the crossroads of two major pan-European transportations corridors (corridors VIII and X) linking Central Europe to the Adriatic, Aegean and Black Seas.

The railway network extends over 900 km. The principal North-South rail connection from Belgrade to the port of Thessalonica (Aegean sea) passes through Skopje. Macedonia has two international airports, in Skopje and ohrid.

History

The name “Macedonia” comes from the territory encompassing the ancient kingdom of Macedon, which included, along with current day Macedonia, some parts of present day Greece, south-western Bulgaria and Albania. The ancient kingdom of Macedon reached its pinnacle during the reign of Alexander III, also known as “Alexander the Great” (356-323 BC), who increased Macedon’s influence through Asia Minor, the Levant, Egypt, Mesopotamia, Persia and some parts of India. Macedon gradually declined after the death of Alexander the Great in 323 BC and was conquered by the Romans in 168 BC and was annexed to the Roman Empire in 148 BC.

After the fall of the Western Roman Empire, the territory of Macedonia came under control of the Byzantine Empire in the 6th and 7th centuries. During this time period, large numbers of Slavic people came to and settled

�

in the Balkan region. By the end of the 14th century, the ottoman Empire gained control over Macedonia and continued to rule Macedonia for more than 500 years. During this period, political and cultural customs were heavily influenced by the Ottoman Turks.

In the late 19th century, as Greece, Bulgaria and Serbia began to compete for control over the territory of Macedonia, a number of nationalist movements emerged and challenged the ottoman Empire. In the most well known uprising in August 1903, Macedonian revolutionaries liberated the town of Krushevo from the Ottomans and briefly established the Krushevo Republic. The uprising was quickly put down by ottoman forces. In 1912, a combined force of Bulgaria, Serbia and Greece defeated the ottoman Empire in the First Balkan War and forced the ottomans to leave Macedonia and surrounding regions. Shortly thereafter, Bulgaria, Serbia and Greece fought against each other in the Second Balkan War in an attempt to divide Macedonia. The Treaty of Bucharest officially ended this conflict in 1913 and the territory of Macedonia was partitioned among these countries. Following the First World War, present day Macedonia was incorporated into the newly formed Kingdom of Serbs, Croats and Slovenes (later known as the Kingdom of Yugoslavia) as part of the Province of Vardar.

During World War II, Macedonia was occupied by Bulgaria and Italy. Harsh rule by the occupying forces encouraged many Macedonians to support the resistance movement led by the partisans and Marshall Tito, who became Yugoslavia’s president when the war ended. Following World War II, Macedonia became a constituent republic (federal unit) of the Socialist Federal Republic of Yugoslavia and remained a republic with the name “Republic of Macedonia” until the dissolution of the federation.

After the collapse of the Former Yugoslavia, like other republics that constituted Yugoslavia, Macedonia declared its independence in November 1991.

Political and Legal System

Macedonia held a national referendum in September 1991 to establish a sovereign state based on a parliamentary democracy. Executive authority rests with the government, which is headed by the Prime Minister. The Prime Minister and cabinet ministers are elected by the National Assembly. Ministers are elected by a majority vote of deputies in the National Assembly. The National Assembly (the Parliament) of Macedonia, the legislative body of the country, consists of 123 representatives who are elected every four years. The President of the Republic of Macedonia

�

represents the Republic, and acts as Commander-in-Chief of the Armed Forces. The President is elected on general and direct elections, with a mandate of five years, and a maximum of two terms.

The Macedonian legal system is based on a civil law system. According to the Constitution and laws, judicial power is independent and exercised by courts, with the court system headed by the Judicial Supreme Court, the Constitutional Court and the State Judicial Council. The latest legal changes in 2007, introduced the Administrative Court, to act upon appeals on decisions made by the state administration.

economic overview

The Government of Macedonia is committed to implementing an economic programme that will continue and intensify the existing reforms in all segments of the economy with the goal of accelerating the economic growth and development of the country, job creation and improvement of the living standards of the population

General economic indicators

Indicators 2006 2007 2008 2009 2010

GDP, USD bin 6,373 7,911 9,522 9,282 9,162GDP per capita, USD 3,124 3,870 4,649 4,525 4,458Real GDP growth rate, % 4.0 4.1 4.0 5.9 5.0Inflation, average % 3.2 5.9 5.0 -0.9 2.0 Annual unemployment rate, %

36.0 34.3 33.8 32.2 32.0

Index of industrial production % (compared to the previous year)

103,6 103,7 105,5 92,3 95,7

General Government balance (% of GDP) -0.6 0.6 -1.0 -2.7 -2.5

Current account, net (% of GDP) 0.8 7.7 13.3 13.3

Trade balance (% of GDP) -20.1 -20.3 -26.7 -23.2 -19.8External debt, (% of GDP) 36.05 27.4 28.2Foreign currency reserves, EUR mil 1,416.7 1,524.4 1,494.9 1597.5 1714.5Exchange rate, DEN/1EUR 61.3 61.3 61.3 61.3 61.3

Source: National Bank, Ministry of Finance and State Statistical Office

�

The World Bank 2010 Doing Business Report ranked Macedonia on the top of the world reformers. According to the Report, Macedonia is the third top reformer in the world, and is the easiest place to do business in Southeast Europe. Macedonia has implemented reforms in seven out of ten areas covered in the report, and is on 32nd place in this year’s global rankings, going up 37 places from last year. According to the World Economic Forum’s Global Competitiveness Index 2009-2010, Macedonia is on 84th place, improving its ranking by 5 places, compared to the last year. In addition, in 2009 the Credit Rating Agency “Standard and Poor’s” upgraded Macedonia’s credit rating from BB-negative to BB-stable.

FoReiGn TRade ReGiMe and MaJoR ReGuLaTionS

1.Macedonia joined the World Trade organisation (WTo) on 4 april, 2003:

1.1 Following the WTo principle to eliminate quantitative restrictions on trade, an extensive liberalization of trade regimes has been implemented.

1.2 In the process of harmonization of the WTo sectoral agreements at the level of the highest tariff rate and following the bilateral and multilateral negotiations with the WTo members, the average tariff rate after the transitional period of WTo accession will be about 8% by the end of 2011.

2. Trade liberalization and facilitation

2.1 Macedonia at the time of its independence, achieved a high level of trade liberalization due to the conclusion of:

1. Bilateral Free Trade Agreements with Republic of Turkey (1998) and Ukraine (2001)

2. Multilateral Free Trade Agreements with EFTA countries (2000), CEFTA countries (2006) and Stabilization and Association Agreement with member states of EC (2001)

2.2 Free trade agreements (FTAs)

1. Presence of Macedonian products on the internal market of 650 million inhabitants

�

2. Diagonal accumulation of origin with EFTA countries, CEFTA countries, member states of EC and Republic of Turkey

3. Establishing of free trade areas within FTAs -in industrial and agricultural sectors with Montenegro (2005), Serbia (2005), Bosnia and Herzegovina (2005), Kosovo (2008), and Albania (2010)-in industrial sectors with Turkey (2009), Ukraine (2010), EFTA States (2011) and member states of EC (2011)

3. export and import

Import and export statistics (EUR millions)

Indicators 2006 2007 2008 2009 2010Exports 1,917.5 2,446.4 2,689.2 1,920.9 2,497.5Imports 2,979.7 3,795.0 4,643.4 4,842.5 4,119.1

Source: State Statistical Office

over 87% of the trade exchange of Macedonia is realized through preferential conditions in accordance with the mentioned bilateral and multilateral Free Trade Agreements (FTAs).

The coverage of imports by exports was 61.9 % in 2005, 63,8% in 2006, 64,2 in 2007 and 58,6 % in 2008.

�

Export and import of goodswith significant trade partners/1

(EUR millions) (EUR millions) (EUR millions)Export 3,978.2 2,691.6 3,3(USD b)

USA 11.16 9.49 14.24Germany 564.87 450.38 692.53 Greece 536.37 290.01 245.09 Italy 321.44 217.97 234.58 Netherlands 70.62 61.53 7 0.25 Slovenia 65.11 34.27 69.10 Bulgaria 379.29 216.95 294.03 Croatia 230.49 152.72 123.62 Serbia 934.82 337.59 271.81 Russia 32.68 22.54 26.74

Import 6,882.65 5,043.11 5,450.67 USA 101.56 110.73 102.38 Germany 652.91 517.49 610.10 Greece 511.70 439.17 448.65 Italy 390.18 361.71 327.28etherlands 94.12 70.42 68.46 Slovenia 203.40 190.88 165.12Bulgaria 327.92 242.63 301.59 Croatia 137.77 118.34 113.29 Serbia 533.06 397.05 418.39 Russia 932.02 495.02 552.54 1/ Ex port and import data prepared by the State Statistical Office are on a CIF basis, w hereas the ex port and import statistics in the balance of Payments data prepared by the NBRM are on a FOB basis.

Source: State Statistical Office.

2008 2009 2010

Foreign direct investment

The Macedonian Constitution guarantees equal, national treatment for all market participants and the right for foreign investors to freely transfer and repatriate investment capital and profits. In general, there are no limitations on foreign investments in the country, except in the areas of historical monuments, cultural wealth and trade with narcotics

investor protection

- The MIGA membership since 1994 provides protection of FDI against political risk

- The protection of FDI has also been provided by Agreements for stimulating investment and mutual protection of investments, which have been concluded with 31 countries to date

10

- Bilateral Agreements for avoiding double taxation have been concluded with 34 countries

Foreign direct investment in GdP

During the period 2003-2008, the average ratio of foreign direct investment inflows to GDP is 5.3%, increasing from 2.4% in 2003 to 6.3% in 2008.

The following table shows the breakdown of foreign direct investment as a percentage of GDP for the periods indicated.

1997-2003 2005 2006 2007 2008 2009

Annual FDI/1 (EUR millions) % of GDP

100.4 77.2 344.8 506.0 412.5 180

2.4 1.7 6.8 8.7 6.3 2.2

FDI stock/1 (EUR millions) % of GDP

1,292.1 1,769.0 2,098.6 2,545.2 2,957.7 3,141.38

31.5 37.8 41.3 43.9 n/a 51.9

1/ This data represents the total cumulative investment in Macedonia Source: NBRM and SSO.

Foreign direct investment by country

The following tables show the breakdown of the share of stock of foreign direct investment by country of origin in the total FDI for the periods indicated.

11

Stock of Foreign investment in Macedonia – by country/1

country 2004 2005 2006 2007 2008 2009(EUR millions)

Austria 62.3 57.7 219.4 238.3 347.1 362.6Bulgaria 24.3 27.4 42.8 62.5 98.0 92.3Cyprus 150.5 160.8 182.2 20.5 24.4 47.9Germany 70.6 64.1 64.1 85.9 86.9 62.0Greece 264.1 279.2 320.4 387.1 399.3 380.3Hungary 354.4 350.0 350.4 421.3 421.3 388.8Luxembourg 10.8 15.2 25.4 71.9 69.3 62.03Netherlands 103.2 213.3 212.0 431.3 479.3 523.6Serbia 0.0 0.0 0.0 66.3 67.4 83.7Slovenia 101.8 106.8 126.7 165.8 208.3 391.2Switzerland 143.9 164.2 150.8 166.8 186.3 202.1Great Britain 38.4 38.2 67.4 102.2 127.1 110.7others 285.8 292.1 337.0 325.2 443.0 /Total 1,610.2 1,769.0 2,098.6 2,545.2 2,957.7 3,141.41/ This data represents the total cumulative investment in MacedoniaSource: NBRM

Foreign direct investment by activity

The following table presents foreign direct investment by each sector of economic activity for the periods indicated.

Stock of Foreign direct investment in Macedonia – by activity

activities 2007-2003 2004 2005 2006 2007 2008

(EUR millions)agriculture, hunting and fishing

9.8 23.1 23.0 23.1 27.0 30,9

Mining and quarrying 15.5 22.4 39.3 45.3 50.7 51.6

Production 490.4 664.9 775.3 801.9 907.3 940.3electricity, gas and water construction

0.7 5.2 6.2 157.1 161.7 202.9

construction 65.9 64.5 61.1 70.5 87.1 109.6Total Services 702.5 822.0 854.2 984.5 1,302.7 1,571.4

1�

Trade and repair 106.2 113.7 118.9 182.0 264.0 301.4

Hotels and restaurants 21.6 23.8 27.7 39.6 52.9 67.9

Transport and communication 372.8 445.4 425.5 422.5 542.2 590.3

Financial intermediation 174.6 202.3 232.8 268.2 321.6 465.4

Real estate and business activities

20.0 29.0 40.1 57.5 106.0 127.7

other services 7.3 7.9 9.4 14.6 15.5 18.3not allocated 7.3 8.1 9.9 16.2 9.1 9.8undistributed-reinvested earnings and part of other capital

41.2

ToTaL 1,292.1 1,610.2 1,769.0 2,098.6 2,545.2 2,957.71/ This data represents the total cumulative investment in MacedoniaSource: NBRM

industry

Vision of industrial policy 2009 – 2020

The pro-active industrial policy will encourage the orientation of Macedonian industry towards higher value-added products and services based on knowledge, innovation and collaboration.

The future of Macedonian industry will be built on the development of capabilities in applied research and manufacturing of sustainable, organic and specialized high-tech products and services serving the needs of international niche markets.

By 2020 Macedonia will develop the dynamic mix of sustainable and authentic industries such as: organic wine and foods, eco-steel, eco-friendly construction, ITC, specialized electronic parts, renewable energy production, creative industries, medical equipment and services, authentic tourism and other industries.

1�

Structure of the industry

- Production of food and beverages 16,05%

- Procurement of electricity 12,21%- Production of basic metals 11,24%- Production of garments 11,07%- Production of non-metals and decorative

stone 7,27%

- Production of tobacco and cigarettes 5,71%- Chemical products 4,63%- Production of petrol derivates 4,45%- Production of elec. machines and

devices 3,47%

- Production of metal products 3,25%- Other 20,65%

Strategic industrial sectors

agribusiness and food processing

agriculture

Agriculture is an important sector in the Macedonian economy. The gross value added of the primary agricultural production, including forestry and hunting, accounted for 8.9% of GDP for 2008. Agriculture achieved a growth rate of 7.1% in 2008. According to the agricultural census conducted in June 2007, 167,992 people are engaged in the agricultural sector and 24.812 of them are with a full-time job. Agriculture accounted for 19.6% of total employment for 2008. The agro-food sector, which includes both primary agricultural production and the food processing industry, is currently estimated to contribute around 16% of GDP.

Food processing

The food industry is a very important segment in agricultural complex in the Republic of Macedonia. This industry has a strong reputation for quality food products and excellent access to regional and wider markets. The main products are: fruits, vegetable, wine, sheep and goat cheese. The share of food processing industry is 6% of GDP

1�

The production of raw agricultural products in the country is significant, so it is a good base for the development of the food-processing sector, as well as for food facility construction.

The food industry covers about 12.000 employees and contributes 11% of total employment in the industry.

The food industry provides 7%of the total exports of the country, mostly in the markets of USA, Switzerland, Germany, France, Greece, Italy, Albania, Bulgaria, Holland, Hungary, Croatia, BIH, and Slovenia.

The food industry accounts for 10% of the total imports of the country from the markets of Argentina, Austria, Bulgaria, Brazil, Slovenia, USA, and Croatia.

Metallurgy

Metallurgy has a significant part in the economic development of the Republic of Macedonia. In the total industry production, metallurgy covers 12%. The share of metallurgy in GDP is 1,3%. Main resources in metallurgy are: lead, zinc, copper, Ferro, nickel, and Ferro silica mines.

Development of metallurgy represents a base for the whole industry development, especially for metal processing industry. Approximately 11.000 workers have been employed in this industry branch, or 6% of total employment in the industry.

automotive components industry

- Existing engineering and manufacturing tradition

- Legacy of skills available to new investors

- Component production started 1960’s to supply Zastava, Serbia

- Companies primarily supplying aftermarket

- Johnson Controls, Johnson Matthey (Free Economic Zone), Hi-Tech to supply oEM’s

- Markets are Europe, Russia, Turkey, Africa, etc

- Most companies have ISO 9001 / TS 16949 quality certification

Textile industry

- Traditional industry- 30,8% of total exports

1�

- 37.84% of the total number of employed in the industry- 15.6% in GDP of industry- 93% CMT, 7% full package- Modern equipment- Esteemed reputation of Macedonian textile on the world market - Available capacities with infrastructure to foreign investors in the

ready-made clothing and knitted production industries

Mineral resources

Geological explorations and utilization as well as exploitation of mineral wealth have a long history and tradition on the territory of the Republic of Macedonia.

The basis of mining development is the geological structure of the Republic of Macedonia. The availability of these raw materials is significant and the geological composition of the deposits offers a wide range of decorated stones. The deposits are concentrated in the middle and western part of the country, while in the in the Eastern part, granite and andaluzite deposits are located. The geological factors and events made deposits of useful minerals, such as:

Metallic - zinc, cooper, lead, chrome, antimony, arsenic, nickel, molybdenum, silver and gold.

non-metallic - asbestos, andalusite, basalt, barite, brashest, limestone, gypsum, all types of clay, gneiss, garnet, granite, granodiorite, graphite, diabase, diatom soil, disthene, pemsa and pumicite, perlite, sienna, sulpha, talc, travertine, tuff, ornament breech, sodium and potassium feldspar.

architectonic – Construction Stone (ornamental Stone): marble, travertine, magmatic rocks.

other non-metals – bentonite clay, gipsym.

energy minerals – coal, uranium, geothermal water

non-metal mineral production and processing

Non-metal mineral raw materials mostly exploited and processed in the Republic of Macedonia are the following: dolomite, lime, quart sand, ceramic clay, feldspar, gypsum, diatomaceous earth, marl, opal tuff and etc.

The mineral deposits are extended through the whole territory of the country and the processing facilities are located mainly close to the non-metal mineral deposits.

1�

In the total industrial production the non-metal mineral production contributes with 1,53% and the non-metal mineral processing with 7,27%.

Regarding the product type, 70-90% of the non-metal mineral products are exported mostly into neighbouring countries, some EU countries and the Russian Federation countries.

The number of employees in the non-metal industry amounts to 5.890 and represents 5,1% of the total number of employees in the industry and mining.

icT Sector

Macedonia has the best telecommunication networks in the region- the system is 100% digital. In line with global trends, the Macedonian telecommunications market is developing rapidly, particularly in the mobile segment. There are currently three mobile carriers and several fixed-line operators: “Cosmofon”, “On-Net”, “Neotel”, Akton”, “Matel MK”, “Nexcom MK”, “InfelNetplus” and “Cabletel”. Another fixed telephony operator “Aicall” commenced its operations recently through a cable TV network. Multinational hardware and software suppliers (Microsoft, HP, IBM) are also present on the Macedonian market.

The Law on Electronic Communication, which entered into force in mid 2005, provides a stable and consistent regulation of the communication sector. It is harmonised with EU requirements, thus enabling full liberalisation of the market with the aim of attracting investments by domestic and foreign operators. Macedonia expects further expansion of the telecommunications sector.

The policy of the Government of Macedonia in the electronic communications sector has been directed at supporting the development and liberalisation of electronic communications services so that they are accessible to each person and offered at a low cost, and also to achieving mass broadband Internet usage.

The increased competition in the telecommunication sector is expected to establish the necessary infrastructure to provide for efficient, safe and timely delivery of good quality digital content and services.

construction

Construction accounted for 6.5% of total employment in 2008. The construction sector grew by 13.7% in real terms in 2008, mainly due to increased public sector investment in infrastructure and roads.

1�

The sector is expected to decelerate to approximately 5% growth in 2009 as a consequence of the negative impact of the global economic crisis, but the growth is expected to derive from the ambitious programme of the Government for investment in public infrastructure

chemical industry

Chemical industry is a very significant and high profitable branch in the economy of the Republic of Macedonia.

In the total industrial production of the country this sector contributes with 11,6%, where the basic chemicals production contributes with 5,5% and the chemical products processing contributes with 6,1%.

8% of the total employees in the industry are employed in this sector.

Chemical industry production is mostly export oriented. About 60% of the chemical products have been exported into the countries of the former Yugoslavia and into countries of Eastern and Central Europe.

The most significant export products are the following: pharmaceuticals, chemical fibres, plastic pipes, hoses and foils, paints, varnishes etc.

Healthcare sector-medical devices and Pharmaceutical

- Availability of well-educated staff at competitive costs - Quality assurance and standardization procedure intitialized- Existing pharmaceutical industry exports to over 30 countries

worldwide- Strong educational system, with an abundance of medical and

pharmacy graduates- Supportive regulatory environment - Licensing arrangements in place with many of world’s leading

pharmaceutical companies- Availability of serviced industrial sites- Manufacturing tradition

energy

energy infrastructure

The Republic of Macedonia disposes of installed generation capacity of about 1525 MW and serves about 700,000 clients. The largest generation capacity is TPP Bitola with plant that works on lignite and contains three blocks each of 225 MW. Second in size is TPP oslomej with one block with

1�

installed power of 125 MW. The main transmitting net contains 400 kV, 220 kV and 110 kV transmitting lines. The 400 kV system is the blood stream of the country and connects the TPP’s Bitola and oslomej with the consumers in the Republic of Macedonia and it is connected with the European transmitting system. The Republic of Macedonia has 28 distribution centres with a net of 35 kV, 10 kV and 0,4 kV transmitting lines.

Installed capacity in RMThermal Plants: 810 МWHydro Plants: 516 MWTransmission infrastructure: 2,023 км

oil pipeline:Length: 250 кmCapacity: 2.5 million tones

Gas pipeline:Length: 98 кmCapacity: 1,2 х 109 m3

1�

SuBSTanTiaL inVeSTMenT WiLL Be needed FoR neW PRoJecTS in THe eneRGY SecToR

- Electricity sector: construction of new high voltage overhead lines and small hydro power plants (400)

- Gas pipeline sector: further development of the gas network system, transmission and distribution network system

- oil pipelines sector - Renewable Energy Sources

Renewable energy Sources

Small Hydro Power Plants

In the next period, the Government of the Republic of Macedonia is planning to build 400 Small hydro plants with a capacity up to 5 MW or the total installed capacity of 250 MW and an expected annual production of 1200 GWh. In the period of 2006-2008 two public competitions were announced for granting concessions for the production of electricity from small hydro plants. So far 65 locations have been granted. In 2009 the third public competition finished and it is expected that 6 locations will be granted. In the next period the Ministry will announce public calls for building small hydro plants every 6 months . The model is DBoT (Design, Build, operate and Transfer).

Using the potential of the wind

In June 2005 an Atlas of the winds was made and the research of the wind energy of Republic of Macedonia was assessed. on the basis of this data, the project for exploring the wind potential in Macedonia was implemented. on 4 locations in the country measurement stations were installed for measuring the wind power. on the basis of the measurement data, there will be a procedure for building wind farms.

Solar energy

Annual radiation is 1385 kWh/m2, good climate characteristics with hot and dry summers, about 260 sunny days in the country.

�0

Feed in tariffs:

Small Hydro Power Plants

Block Annual quantities of delivered electricity [kWh]

Feed-in tariffs[€cents/kWh]

I 1 – 1.020.000 12,00

II 1.020.000 – 2.040.000 8,00

III 2.040.001 – 4.200.000 6,00

IV 4.200.001 – 8.400.000 5,00

V above 8.400.001 4,50

Wind Power Plants 8,90

Electricity generation from biogas

Group Installed capacity

I ≤ 500 kW 13,00

II > 500 kW 12,00

Photovoltaic

Group Installed capacity

I ≤ 50 kW 46,00

II > 50 kW 41,00

Table of contents

Setting Up a Business

Education & Workforce

operating Within Macedonia

Taxes

Banking & Finance

TIDZs

�1

Setting Up a Business1. How do I register a company?You can register a company in Macedonia by visiting a single counter and addressing a single employee. The one-stop-shop system for registering a company operates within the Central Register via 32 electronically integrated offices located throughout Macedonia.

2. How long does it take to register a company?You can register a business in Macedonia in just 4 hours.

3. How much does it cost to register a company?The Central Register fee for registering a limited liability company is €42. You can expect minimal additional expenses for court translations and notary certifications of the required documents (around €5 per page).

4. Are there any additional mandatory fees before I can begin doing business in Macedonia?Minor fees are incurred to obtain mandatory licenses before operation of the business can begin in the country. After registering with the Central Register you do not have to pay any additional fees.

5. What types of companies can I register in Macedonia?The most common types of companies are limited liability companies, joint stock companies, representative offices and branches.

6. What documents do I need to register a company?When registering a company as a physical entity, the following documents are required before you go to the Central Register:

• copy of your passport certified by a notary• court translation of your passport in Macedonian certified by a

notaryAll other necessary documents will be provided at the Central Register. We suggest that you arrive prepared with several different names for the company, in case your first preference is not available.

When registering company as a legal entity the following documents are required:

��

• the registration of the mother company certified by a notary• court translation of the registration of the mother company certified

by a notary

7. Do I need to hire a lawyer to register my company?No, you are not obliged to hire a lawyer to register a company. The Central Register provides free on-site legal assistance. However, a lawyer would be helpful as your business grows in Macedonia.

8. What is the minimum capital requirement for registering a company in Macedonia?You do not have to deposit any money to establish a company. The minimum capital requirement of €5,000 for a limited liability company has to be deposited within one year of founding in one of two ways:

• Monetary contribution through remittances in domestic commercial banks in temporary accounts

• In-kind contribution appraised by an authorized Macedonian appraiser

9. How do I open a bank account in Macedonia?To open a bank account in a commercial bank in Macedonia you need the following documents, in original or notary certified:

• written request for opening the account• certificate from the company register not older than 6 months• evidence of assigned tax number

Neither the owner nor the manager of the company needs to be personally present at the bank when opening the account.For persons authorized to use the account you need:• identification document• written authorization signed by the legal representative

10. What cases warrant additional approvals for operating within Macedonia?To operate in certain fields, such as pharmaceuticals, banking, insurance, and educational activities, the company registration process is followed by a licensing process with the relevant authorities. The employees in the Central Register are trained to direct newly registered companies to the appropriate licensing authorities.

��

11. What is Macedonian government policy regarding overseas companies doing business in Macedonia?Тhe Constitution and the Law on Trade Companies guarantees equal treatment for domestic and foreign entities. Additionally, one of the Government’s top priorities is to attract foreign direct investments in the country. one Minister, responsible for foreign investments, and Invest Macedonia through its economic promoters stationed around the world, target companies in priority countries to meet potential investors.

12. Which law regulates company registration?The Law on Trade Companies (Official Gazette no. 28/2004, 84/2005, 25/2007) governs the establishment and organization of a company. The Law on Trade Companies is fully harmonized with EU directives and regulations. There are numerous local legal firms specialized in corporate law which are readily available for help.

��

Education & Workforce

1. What is the average monthly gross salary? What is it comprised of?The average monthly gross salary in Macedonia is €430, one of the lowest in Europe.This amount includes the net salary, personal income tax (10%) and social contributions for:

• pension and disability insurance• health insurance• employment insurance• additional health insurance

2. What portion of the average monthly gross salary is for social security contribution?

3. on average, what is the skill set that a candidate would possess?The average Macedonian worker possesses good linguistic, interpersonal, and teamwork skills.In general, Macedonian education is concentrated on providing a broad set of knowledge to the future workforce.

4. What percentage of the population speaks English? What other languages are in use?Every child in Macedonia begins to learn English in the first grade of primary school. In the sixth grade a second foreign language is introduced as mandatory, and a third as optional. Two foreign languages are mandatory

��

in high school as well: English, and one of German, French, or Russian.Also, the system of higher education entails two years of professional English. Regional languages (Serbian, Bulgarian, Albanian, Greek, Turkish) are widely understood and spoken.

5. What is the availability of skilled labor in Macedonia?

6. Are there any international schools in Macedonia?Numerous private international educational institutions exist in Macedonia, both European and American, starting from pre-school all the way to university. The Ministry of Education maintains a listing of accredited educational institutions.7. How do I find the right Macedonian staff for my business?Numerous HR companies and recruitment agencies operate in Macedonia. Invest Macedonia can provide relevant contacts upon request.

��

8. Who can I work with to train staff?Universities in Macedonia are open and willing to collaborate with incoming investors in meeting the investors’ particular skills needs by co-creating and implementing customized training programs. Invest Macedonia can provide appropriate contacts. Also, training programs can be implemented through HR and training agencies.

9. What do I need to be aware of when hiring staff?All issues related to employment are regulated by the Labor Relations Law, the respective collective agreements, other legal acts, and the individual contract between the employer and the employee that should be in accordance with the Law.

10. What are the different modes of employment in the country?There are two general forms of the employment contract:

• Permanent employment – for a period of time that has not been previously determined

• Temporary employment – for a period of time that has previously been determined

11. How fast can I hire employees in the country?According to the Labor Relations Law, an employer can hire employees through a public announcement registered with the Agency for Employment and/or published in a newspaper. The legally prescribed minimum period for the public announcement of a new position is 5 working days.

12. What leave periods are employees entitled to?Employees are entitled to the following leave periods:

• Annual leave between 20 and 26 working days• Sick leave with notice within 24 hours• Maternity leave of nine months compensated by the Health Insurance

Fund• Up to seven days paid leave, in cases of marriage, death of close

family members,and professional examinations

13. What are the national holidays in Macedonia?• Jan 1, New Year’s Day• Jan 7, orthodox Christmas

��

• May 1, Labor Day• May 24, Sts. Cyril and Methodius• Aug 2, Day of the Republic• Sep 8, Independence Day• oct 11, National Uprising Day• oct 23, Macedonian Revolutionary Struggle Day• Dec 8, St. Clement of ohrid• Two days for orthodox Easter, depending on the orthodox calendar• Ramazan Bajram, depending on the Muslim calendar

In addition, there are many ethnic specific and religious holidays.

14. In which cases does the employer have the right to terminate the employment contract?According to the Law on Labor Relations, employment can be terminated in the following cases:

• By agreement between the employer and employee• Upon expiry of a fixed–term of employment• When enforced by law• By notice, supplied either by the employer or the employee• Due business reasons (e.g. restructuring)

��

operating Within Macedonia

1. Which multinationals are already working in Macedonia?Johnson Controls, Johnson Matthey, Lukoil, Duferco, ArcelorMittal, Deutsche Telecom, Telekom Slovenije, Mobilkom Austria, EVN, Societe Generale, Steiermarkische Bank und Sparkassen AG, ProCredit Holding AG, Nova Ljubljanska Banka, Hypo Alpe Adria Leasing, Soravia, ERA Group, etc.

2. Do I need an entry visa for Macedonia?The citizens of the European Union member states and Schengen Convention signatories can fulfill the right to enter Republic of Macedonia with legitimate and not expired ID issued by the legal authorities of the country of origin.

Republic of Macedonia also fully liberalizes the visa regime with all the countries on the White List of the European Union. The citizens of these countries will have the right to enter Republic of Macedonia the following year without any visas. Each foreign citizen who owns a legitimate Schengen C visa will be permitted admittance to the Republic of Macedonia without possessing a Macedonian visa, and the length of the stay will be limited by the Schengen visa conditions.For a complete list of all countries, please visit www.mfa.gov.mk.

3. How can I reach Macedonia by plane?Macedonia is well connected to the entire world through direct flights to Skopje Alexander the Great airport from: Vienna, Rome, Zurich, Dusseldorf, Cologne, Prague, Budapest, Ljubljana, Zagreb, Belgrade, Sarajevo, Sofia, Tirana, and Istanbul. Another international airport is located in the city of ohrid, in the southwest.

4. How do I get authorization for working in Macedonia?Foreign citizens can apply for work visas at the relevant Embassy or Consular office of the Republic of Macedonia. Once a work visa is obtained, upon your arrival you may apply for a work permit at the Employment Agency of the Republic of Macedonia.

��

5. Can foreign investors acquire rights to real estate in Macedonia?Foreign entities can directly own or lease property in Macedonia, according to the Law on Construction Land (Official Gazette of the Republic of Macedonia No. 82/08 from 08.07.2008).

6. What sort of help can I expect to receive in choosing a business premise?Invest Macedonia can help in identifying a suitable real estate agency in Macedonia. Also, based on your specifications, we can identify adequate state-owned parcels and buildings.

7. What is the cost of renting office space?Rents on office space range from €7.5 – €22.5 /m2/month, depending on the class of the building with an average of €12.5 - €15 /m2/month in Skopje.

8. What is the cost of construction land in Macedonia?State owned construction land is sold or leased through a public tender procedure. Minimum bidding prices are set by the Ministry of Transport and Communications in compliance with the Construction Land Price Determination Methodology.

The minimum bidding prices differ across municipalities and according to the intended purpose of the construction land, and range between €2/m2 and €100/

m2.

�0

Note: The above prices are extracted from the bylaws and law for transformation of the ownership of state owned construction land andrepresent the minimal prices for public bidding procedure. The data stated here can be subject to change. For further information on stateowned construction land please contact a representative of Invest Macedonia.

9. How much does a square construction meter cost?on average, a square construction meter for a construction shell costs around €170-225/m2.

10. What is the average monthly gross salary?The average gross monthly salary is €430, one of the lowest in Europe.

�1

11. What is the transportation cost for a 20t truck?

12. What freight companies can I use?In addition to excellent local companies, numerous multinationals also operate in Macedonia. For further details refer to www.mifa.org.mk.

13. What is the cost of electricity?The price of electricity is determined by the Energy Regulatory Commission of the Republic of Macedonia.

��

14. What is the cost of water?Water charges are determined at the local level and thus vary from one municipality to another.These are some examples for prices of industrial water in Euro per m3:

15. What is the cost of gas?The cost of 1m3 natural gas for consumers directly connected to the distribution system is €0.39 (18% VAT included in the price).

The price of natural gas is determined by the Energy Regulatory Commission of the Republic of Macedonia.

16. What is the cost for telephone installation?Initial connection fee for a standard (PSTN) line: ~ €10Initial connection fee for a digital (ISDN 2) line: ~ €20

17. What is the price per minute for international phone calls?Pricing varies according to the country dialled. Some examples are:

An alternative when making international calls are the international pre-paid calling cards, which are somewhat cheaper.

��

18. How much would a monthly Internet connection cost?

19. What would I expect to pay for postal and courier services?All the major delivery companies operate in Macedonia. The average price for a 24 hour delivery of documents to Stuttgart is €34 and to Vienna €35. Documents shipped to reach New York in the fastest possible time, costs around €46.

20. What are the average duty levels in Macedonia?Industrial products: 7%General average: 9.25%

For the equipment necessary to conduct the activities of the company, unused equipment and spare parts (except cars and office furniture) can be imported duty free. For companies in the Technological Industrial Development Zones, this includes used equipment as well.

21. I am looking for a business partner – who can I contact?The most important business associations in Macedonia are:Economic Chamber of Macedoniaic@ic.mchamber.org.mkwww.mchamber.org.mk

��

Macedonian Chambers of Commerceinfo@sojuzkomori.org.mkwww.sojuzkomori.org.mkEconomic Chamber of North-West Macedoniainfo@oemvp.orgwww.oemvp.orgMacedonian ICT Chamber of Commerce (MASIT)contact@masit.org.mkwww.masit.org.mk

The calendar of events of Skopje Fair includes 19 international and 3 local fairs and specialized exhibitions. Each year Skopje Fair organizes group national participation abroad. It is also a business partner of several trade fair organizers from this region. skfair@mt.net.mkwww.skopjefair.com.mk

22. Is intellectual property rights protection effective in Macedonia?The Intellectual Property Protection Rights, including copyrights, are regulated by the Law on Copyright and Related Rights, and industrial property rights are regulated by the Law on Industrial Property. A department within the Ministry of Culture is responsible for the protection of copyrightsand other related rights, while the Industrial Property Protection Office (IPPo) is responsible for industrial property rights.

23. What auditing standards does my company need to abide by?The central law regulating auditing in Macedonia is the Company Law. Company auditing is carried out in accordance with IFAC’s International Standards of Auditing as published by the Ministry of Finance in the Official Gazette of the Republic of Macedonia, updated on an annual basis.

24. What accounting standards does my company need to abide by?Financial reporting is carried out in accordance with the International Accounting Standards published in the Official Gazette of the Republic of Macedonia. The most recent annually updated IAS/IFRS are the valid financial reporting standards in the Republic of Macedonia.

��

Taxes

* Includes computer software and hardware** 2-3% for the taxpayer in the 2nd order of succession and 4-5% for the tax payer in the 3rd order of succession or not related to the testato

��

Banking & Finance1. Which banking institutions, according to total assets, are operating in Macedonia?

Largest: Komercijalna banka AD Skopje, Stopanska banka AD Skopje and NLB Tutunska banka.Mid-sized: Alfa banka AD Skopje, Izvozna i kreditna banka AD, Skopje, Investbanka AD Skopje, ohridska banka AD ohrid, Prokredit banka AD Skopje, Stopanska banka AD Bitola, TTK banka AD Skopje, and UNI banka AD Skopje.Smallest: Eurostandard banka AD Skopje, Ziraat banka AD Skopje, Kapital banka AD Skopje, Makedonska banka za poddrska na razvojot AD Skopje, Poshtenska banka AD Skopje, Starter banka AD Skopje, and Centralna kooperativna banka AD Skopje.

2. How can I obtain information about purchasing securities?The official stock exchange market of the Republic of Macedonia is the Macedonian Stock Exchange.Members of the Macedonian Stock Exchange may only be legal entities - brokerage houses and banks, registered and licensed in the Republic of Macedonia.

3. What are the brokerage houses in Macedonia?The legal entities that perform activities of trading with securities and that are official members of the Macedonian Stock Exchange, Inc. Skopje, can be found on the web site of the Securities and Exchange Commission of the Republic of Macedonia, www.sec.gov.mk.

4. What kinds of securities are traded on the Macedonian Stock Exchange?Shares (both common and preferred), as well as bonds, are two types of securities that are traded on the MSE.

��

5. What is the MSE index?The official index of the Macedonian Stock Exchange is MBI-10, a weighted index of the 10 most liquid shares on the MSE. Two other indices are the MBID, the index of publicly held companies, and the MBI, the bond index.

6. Are there restrictions for transferring funds to and from Macedonia?There are no restrictions for transfers of funds from a current account based on an invoice or other type of agreement or appropriate document. Profits and dividends from inward investments can be freely transferred abroad after taxes are paid.

Also, there are no regulatory restrictions on foreign investments by non-residents in Macedonia.Credit transactions between residents and non-residents can be freely arranged and have to be registered at the Central Bank. Non-residents can freely open non-resident accounts in Macedonian banks.

��

TIDZs1. What are the Technological Industrial Development Zones in Macedonia and where are they located?

2. What are the incentives offered for projects operating in the TIDZs?The investment incentives offered to companies operating in the TIDZs include:

• 0% corporate income tax for the first 10 years (10% thereafter)• 0% personal income tax for the first 10 years (10% thereafter)• No VAT and customs duties for export production• Free connection to piped natural gas, electricity, water and

sewage• Immediate access to main international airport, railroad and vital

road corridors• Land lease for up to 99 years at attractive concessionary rates• Special incentives for construction of facilities valued at €500,000,

��

denominated in MKD, depending on the value of the investment and number of employees expected to be employed

• Benefit package for eligible investors will be approved within 10 business days

3. What kinds of companies can be established in the TIDZs?The Technological Industrial Development Zones have been established to host high-tech clean industry production that is export-oriented.

4. What infrastructure solutions are offered in the Zones?Companies operating out of the TIDZs are offered free connection to natural gas, water, electricity, and access to a main international road network.

5. Who is already present in the TIDZ?At the moment, US based company Johnson Controls and Great Britain’s Johnson Matthey are fully operational in the TIDZ Skopje 1. South Korea’s Triview and China’s Haier joint venture company has started with preparation activities for the construction of a factory that will produce LCD television sets and monitors.The Government of the Republic of Macedonia has already signed a MoU (Memorandum of Understanding) with: Turkey’s Sisecam and Borteknik otomotiv, Italy’s orlandi, Slovenia’s Iskra, and France’s Montupet.

�0

Ministry of culture of the Republic of MacedoniaLiST of

international cultural events in the Republic of MacedoniaSkopje, 2009

inTeRnaTionaL THeaTeR FeSTiVaL “oPen YouTH FeSTiVaL” - Skopje

organizer: Youth Cultural Centre

: (02) 3111-508; 3115 225

Fax: (02) 3115 906

Address: Quay “Dimitar Vlahov” bb, Skopje

Established:

Date: September- october

Location: Skopje

“oHRid SuMMeR FeSTiVaL” - ohrid

organizer: ohrid Summer Festival

: (046) 262 304

Fax: (046) 266 133

Address: “Makedonski Prosvetiteli” nn, Ohrid

Established: 1961

Date: July 20 – August 20

Location: ohrid

www.ohridsummer.com.mk

�1

“SKoPJe SuMMeR” – Skopje

organizer: Directorate of Culture and Arts

: (02) 3238-372; 3222-341

Fax: (02) 3165-064

Address: Blvd. “Sv. Kliment Ohridski” nn, Skopje

Established: 1989

Date: June 21 – July 30

Location: Skopje

www.dku.org.mk

“MaY oPeRa eVeninGS” - Skopje

organizer: Macedonian opera and Ballet: (02) 3114 908Fax: (02) 3211 442Address: Quay “Dimitar Vlahov” nn, SkopjeEstablished: 1972Date: May 9 – May 31Location: Skopje

www.mob.com.mk

“SKoPJe JaZZ FeSTiVaL” – Skopje

organizer: Institution for Artistic Activities “Skopje Jazz Festival”

: (02) 3131-090

Fax: (02) 3225 033

Address: “Maksim Gorki” No.5, Skopje

Established: 1982

Date: october

Location: Skopje

www.skopjejazzfest.com.mk

��

“SKoPJe SuMMeR” – Skopje

organizer: Directorate of Culture and Arts

: (02) 3238-372; 3222-341

Fax: (02) 3165-064

Address: Blvd. “Sv. Kliment Ohridski” nn, Skopje

Established: 1989

Date: June 21 – July 30

Location: Skopje

www.dku.org.mk

“MaY oPeRa eVeninGS” - Skopje

organizer: Macedonian opera and Ballet: (02) 3114 908Fax: (02) 3211 442Address: Quay “Dimitar Vlahov” nn, SkopjeEstablished: 1972Date: May 9 – May 31Location: Skopje

www.mob.com.mk

“SKoPJe JaZZ FeSTiVaL” – Skopje

organizer: Institution for Artistic Activities “Skopje Jazz Festival”

: (02) 3131-090

Fax: (02) 3225 033

Address: “Maksim Gorki” No.5, Skopje

Established: 1982

Date: october

Location: Skopje

www.skopjejazzfest.com.mk

“dance FeST” - Skopje

organizer: Interart Cultural Centre, Skopje

: 075 275 025

Address: “Gigo Mihajlovski” No. 9 – 3/ 1, Skopje

Established: 2004

Date: April

Location: Skopje

inTeRnaTionaL cineMaToGRaPHeRS FiLM FeSTiVaL “ManaKi BRoTHeRS” – Bitola

organizer: Macedonian Film Professionals Association

: (02) 3211 811

Fax: (02) 3224 334

Address: “8th March” No.4, Bitola

Established: 1976

Date: September

Location: Bitola

www.manaki.com.mk

“STRuGa PoeTRY eVeninGS” – Struga

organizer: Struga Poetry Evenings

/Fax:: (02) 228 345 - Skopje

: (046) 786 280 - Struga

Fax: (046) 786 280 - Struga

Address:

Established: 1962

Date: August

Location: Struga

��

“GaLicniK WeddinG” - Galicnik

organizer: MZ Galicnik

Phone: 070 244 888;

Date: July 11- July 12, St. Peter’s Day

Location: Galicnik

“VeVcani caRniVaL “ - Vevcani

organizer: Municipality Vevcani

Phone/Fax: 046 784 640/ 046 784 641

E-mail: opstinavevcani@yahoo.comwww.vevcani.gov.mk

Date: January 13 – January 14

Location: Vevcani

“STRuMica caRniVaL“ – Strumica

Phone: 070 339 977

E-mail: alexmkd@t-home.mk

Date: February – March

Location: Strumica

��

The church of St. Panteleimon at nerezi, Skopje

This five domed church is one of the most important preserved Byzantine monuments. It was erected and painted in 1164 as an endowment of Alexius Angelos Comnenus, a member of the ruling dynasty. The anthology fresco scenes of the Descent from the Cross, and the Lamentation are considered the forerunners of the Italian Renaissance.

Monastery of St. naum of ohrid, ohrid

The monastery complex with the church dedicated to the Holy Archangels Michael and Gabriel is located on the south coast of Lake Ohrid and was once one of the wealthiest and most

powerful spiritual centers on the Balkans. The original three-conch church was erected by St. Naum towards the end of the 9th century where he was buried in the 10th century.

��

The Monastery of The Holy Father Gavril of Lesnovo, Zletovo

The monastery is dedicated to the holy hermit Gavril of Lesnovo. The present-day church was erected in 1340/41 by the noble despot Jovan oliver. The fresco decoration was accomplished by several artists between 1346 and 1347 and in 1349.

church of St. George, Staro nagoricane, Kumanovo

The church was erected in 1313 by king Milutin on the remains of an older temple. The monumental fresco decoration from 1317/18 is the work of the well known painters Michael and Eutichios.

��

church of St. Sophia, ohrid

The cathedral church of the ohrid Archbishopric was erected during the office of the archbishop Leo (1037/56). This is a unique monument with the largest preserved Byzantine frescos from the 11th century portraying rare scenes from the old and New Testament. In the 14th century the church was supplemented by a paraklesion and an exonarthex.

The Monastery of The Holy Father Joachim of osogovo, Kriva Palanka

The monastery complex is dedicated to the founder, the Holy Father Joachim of osogovo, a hermit from the late 11th or

early 12th century. It was erected by the well-known master-builder Andrej Damjanov between 1884/85. The twelve domed church with three aisles was fresco decorated several times (from 1884 till 1944) by the artist Dimitar Andonov Papradiski.

��

The Monastery of St. John at Bigor, Rostuse

The monastery is dedicated to St. John the Forerunner. The present-day Athonite monastery type complex dates from the 18th, 19th centuries and with reconstruction in the 20th century. The wood carved iconostasis is the work of the masters Petre Filipovski and Makarie Frchkovski. Within the monastery there is a gallery of icons and liturgical objects.

church of The Holy Virgin Peribleptos, ohrid

The church was erected in 1294/95 by Progon Zgur a close relative of the Byzantine emperor Andronicus II Paleplogos. This monument is known to be among the earliest works of the painters Michael and Eutichios dating from 1295.

��

iSaK MoSQue - Bitola

It is also known as the Azreti Isak mosque, and it is considered one of the most attractive mosques in Bitola for its size and exterior, as well as for its luxurious interiors. According to the inscription above the portal it was erected as the legacy of the judge Isak Čelebi - Ibn Iso in 1506/07.

The Monastery of The Holy Virgin eleousa, Veljusa, Strumica

The monastery church dedicated to the Holy Virgin Eleousa (of Tenderness) was erected by the bishop Manuel of Strumica in

1080. This church is significant due to the 11th

century frescos, the floor mosaic and the authentic marble iconostasis.

��

archeological site-SToBi, GRadSKo

Stobi is one of the biggest ancient cities on the territory of the Republic of Macedonia. Stobi is settled on the location that

was once the center of ancient Paionia. As a settlement, it is recorded for first time at the time of Philip II of Macedon. Today on this location can be seen the Episcopal Basilica, the Theatre, Theodosian Palace, the Synagogue Basilica, the Large and Small baths, the City walls, etc.

YaHYa PaSHa MoSQue - Skopje

The mosque located in the Čair quarter was erected in 1503/04 by Yahya Pasha who was a town official in Skopje for a period of time. The Yahya Pasha mosque is one of the largest and most representative mosques in Skopje (it has the tallest minaret in the city).

�0

archeological site – HeRaKLea LYnceSTiS, BiToLa

The birth of the ancient city Heraclea Lyncestis is related with the Philip II of Macedon’s name in the middle of the 6th BC. Heraclea

later became a Roman military base and an important urban center. Today on this location one can see the Episcopal

Residence, the basilicas, the Theatre, the floor mosaics of high artistic value and more.

�1