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DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTS 3Date 14.01.2008 number 5 berzNIK

In berzNIK - room for allHolidays are over… Two weeks of 2008 are

already behind us. Dynamic triviality… tempo…and the object of our distributive center berzNIK -the transfer of printed media information thatdirectly or indirectly refer to the movement of thecapital market are present more and more everyday… There are enough points of view, assess-ments, positions, commentaries, and analyseson the securities market daily trading to repre-sent the post New Year`s start of the companies,a base where the diagrams with upward anddownward line are drawn… a base with whichthe increasing or decreasing trend of the securi-ties, indexes, and volume of trade and turnoveris going to be compared… Parameters that aregoing to enable the perception of the real imageof the movement on the Macedonian marketevery week, and every month until the end of theyear.

The analysis is made precisely throughthese parameters according to which the last-year market movement is considered to be thegreat ascent, and for that purpose in this editionof the weekly review of berzNIK we publish theinterview with one of the first brokers on theMacedonian capital market Kiril Mitrovski, aswell as the stock exchange report for the lastmonth of the past year.

The digital service berzNIK stores, selects,classifies all daily news, information, and reportspublished in the daily printed media and distrib-utes them to all interested clients in Macedonianand English language. Our base, as part of thedigital library newsNIK, keeps growing bigger,enriched in content and articles regarding everysegment that has any impact on the financialeconomic movements in this country. However,we are ready to store, file and record all yourremarks, constructive ideas, suggestions, andprogrammes that are going to enrich our basewith expert opinions, analyses, and commen-taries.

Therefore, berzNIK is open for all of yourideas, notes, criticisms, researches, personalexperiences, and everything you consider couldhave an impact on the knowledge, approach,

exchange, and development of the conscienceof all interested potential participants on the cap-ital market.

Counting on the great interest of the usersand clients, who have the need, desire, andinterest to inform themselves about what andhow do you work, what and how do you offer,and what they should do to get an answer totheir questions, berzNIK gives equal space to allparticipants on the capital market for individualrepresentation and gets the public acquaintedwith your way and principle of work.

Without partiality, our digital service offersfree-of-charge representation for all brokeragehouses, open and private investment funds,pension funds, audit agencies, and state institu-tions that are more or less connected with regu-lating, observing, and revising the marketevents… of course, the representations of allagents of the foreign branch offices and stateinstitutional organizations, which are concernedand follow the financial economic and marketevents are also welcomed…

Our goal is - as more as possible, as closeras possible, and as simpler as possible - topresent to our clients all detailed data that aregoing to help and enable them, with OUR helpand together with YOU, to reach their destina-tion - to become part of the capital market aswell, to trade, develop, and make profit…

This personal representation of yours in frontof the public is just the first step… I hope eachsucceeding one will influence the reinforcementof our cooperation, and increase the users`interest for your and our services. I hope thatonly in this way, with joined efforts, we will com-plement the base with useful data, assess-ments, and analyses that reflect the movementon the Macedonian capital market…

Until the next Monday

Makedonka BaldazarskaBerzNIK editor-in-chief

e-mail: [email protected]

With your

presentation,

through our

job - all

interested

clients are

closer to the

market… We

work for

you… You

work for us…

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efforts closer

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4 DAILY STOCK EXCHANGE REVIEW OF PRINT MEDIA EVENTSberzNIK number 5 Date 14.01.2008

WEEKLY REVIEW OF MACEDONIAN STOCK EXCHANGEperiod 07. - 11.01.2008 year

Turnover by market segments

Data on MBI-10 shares

Index MBI-10


Vecer starts this festive week with stock ex-change analysis on previous year. According to thearticle, Macedonian capital market made boom in2007 with 681 million euros turnover.

There was record breaking turnover on the ca-pital market every month until the autumn when themarket stabilized and finish in drastic drop at theend of the year. But, this is regular phenomenonaccording to stock market experts, because theyconsider that the decline of shares value andinvestors` interest should not apply for 2008. But, ifwe take a look at shares` starting prices in 2007and prices at the end of December, the marginshows that everybody profited in 2007. Beside theprice correction in October and declined intensity oftrading in the last two months, yet, almost allshares recorded multiple growth compared to thevalue at the beginning of the year.

Utrinski Vesnik and Nova Makedonija publish-ed analysis on the first three days long trade week.-There are no drops or growths of shares` value, sowe can not tell if stock exchange`s work is in stag-nation. This is experts` explanation about MSE`swork in the first three days of the year. Capital mar-ket worked with reduced turnover. Shares ownedby Komercijalna Banka were dominant in the previ-ous week according to recorded turnover. Somedaily papers conveyed the news that today man-agers of big industrial consumers should reply theGovernment if they accept the offer to buy electric-ity at the price of 75 euros per megawatt-hour,which is almost 20% lower than imported.

Public`s attention was also attracted by thenews that prices of internet and land-line phoneservices will be reduced if wimax-operators forwireless electronic communications start operating.This service provides use of internet with greatcapacity and speed, as well as transfer of data,voice, sound and image without using of the net-work and resources of MakedonskiTelekomunikacii. Practically, the deadline in whichboth future national wimax-operators, GreekCosmotelko and American Nexcom, expires by theend of the month. Both companies announced tomeet the terms in the public announcement forreceiving of radiofrequencies and start their workwithin six months.

Spic informs that the case Makedonska Bankashook Governor`s position. According to the infor-mation, discussion on Gosev`s vote of confidencewill be on Assembly`s agenda by mid-January, sin-ce a group of 15 MPs these days submitted initiati-ve explaining that he misappropriated his positionin the case of liquidation of Makedonska Banka.The demand for Gosev`s responsibility is signed byMPs from all parties, except DUI and LDP.

Catering and tourism enterprise PopovaShapka prepares final documents for the thirdattempt for sell of this winter tourist center on pub-lic bidding. Two hotels, Slavija and Popova Shap-kawith 240 beds, 11 ski-lifts and rope railway thatconnects Tetovo to the ski center are on sale, Vestconveys.

1. SHORT REVIEW OF EVENTS08.01.2008 THUESDAY

Publishing: INTERNACIONAL NIK AD - SkopjeMedia library and digital archiveEditors office: berzNIKAddress: Square MAKEDONIJA bb, p.box 882 Skopje, 1000,

R.Makedonija Phone. 02/25.32.800 faks: 02/25.32.839web: www.interNIK.com.mk;e-mail: [email protected]

Executive Director: Zdravko JosifovskiAccount Menager: Divna Pesic

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Assistent: Stojne DanilovaE-business manager: Ratko Projkovski

Logistics manager: Ana PetrovaFinance manager: Gordana Stojanovska

STOCK EXCHANGE REVIEW OF EVENTS IN THEPRINT MEDIA berzNIK

berzNIK is founded in year 2007.

STOCK EXCHANGE REVIEW OF EVENTS IN THEPRINT MEDIA berzNIKNumber: 5Date: 14.01.2008

IT IS DISTRIBUTED FOR SUBSCRIBERS ONLY

FRONT PAGE PHOTO:

Photo:

Editorial staff of berzNIKInternet distributive system:www.interNIK.com.mkEditor: Makedonka BaldazarskaDTP: Tatijana TrpkovskaEditorial staff:News Evaluator: Anita Bashoska[operators]: Arslan Skoro, Zoran Stamatovski, Martin Arsovski,Gorge Redzik, Toni Arsovski i Darko Tripunovski * [translators]: translator's manager Senka Mihajlovska, AngelinaFilipovska, Slobodan Trajkovski, Aleksandar Stamenkovski, AnetaMenoska, Filip Koviloski, Darko IvanovskiFotoreporter: Robert Spasovski

Marketing, distribucija i proda`ba: INTERNACIONAL NIK AD - Skopje

I M P R E S S U M

C O N T E N T S

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . 3

WEEKLY REVIEW OF THE MACEDONIAN STOCKEXCHANGE… . . . . . . . . . . . . . . . . . . . . . . . . . . . ...4

berzNIK, TUESDAY, WEDNESDAY, THURS-DAY…..5-7

IINTERVIEW: KIRIL MITROVSKI -INVESTBROKER AD SKOPJE . . . . . . . . . . . . .8-9

PRIVATE FUNDS.........................................…..10-11

IINTERVIEW: KIRIL MITROVSKI -INVESTBROKER AD SKOPJE . . . . . . . . . . .12-13

berzNIK, , FRIDAY, SATURDAY . . . . . . . . . . .14-15

WEEKLY MAGAZINES … . . . . . . . . . . . . . . . . . ...16

MONTHLY STATISTICAL REPORT..............…..17-20

2. TOP NEWS - IMPORTANCE BY NUMBER OF PUBLICATIONS

1. MAKSTIL AND FERSPED WITH THE BIGGEST PRICE APPRECIATION, 38.5 PERCENTOF THE TURNOVER FOR KOMERCIJALNA (**)

2. STARTING NEXT MONTH THE INTERNET AND LANDLINE PHONES TO BECOMECHEAPER (**)

DNEVNIKp.1 STARTING NEXT MONTH THE

INTERNET AND LANDLINE PHO-NES TO BECOME CHEAPER

p.7 STARTING NEXT MONTH THEINTERNET AND LANDLINEPHONES TO BECOME CHEAPER

UTRINSKI VESNIKp.7 THE STOCK EXCHANGE STILL,

THE INVESTORS ARE WAITING

VECERp.6 FACTORIES TO STATE IF THEY

ACCEPT GOVERNMENT ELEC-TRICITYp.7 MSE IS CONSIDEREDTO BE A GAMBLE

VESTp.7 POPOVA SHAPKA TO BE SOLD

FOR THE THIRD TIMEp.16 MUNICIPALITY KISELA VODA

DOES NOT MEASURE POLLU-TION FROM USJE

NOVA MAKEDONIJA

p.5 THE COMPANIES HAVE THEFINAL WORD ON THE OFFER OF75 EUROS PER MWH

p.5 MAKSTIL AND FERSPED WITHTHE BIGGEST PRICE APPRECIA-TION, 38.5 PERCENT OF THETURNOVER FOR KOMERCIJAL-NA

SPIC

p.6 MAKEDONSKA BANKA CASE TOREPLACE GOSHEV?


1. SHORT REVIEW OF EVENTS


1. PETROL RISES IN PRICE FOR TWO, AND DIESEL FOR 1.5 DENARS (****)2. WIMAX OPERATORS WILL OFFER FIXED TELEPHONY SERVICES AND FAST INTERNET (***)

09.01.2008 WEDNESDAY

All daily media in their latest editions conveythe news that penalties for imported electricity areoverpriced. In fact, big consumers are going to paypenalties to transmission operator MEPSO if theyfail to assume or demand predicted large amountsof electricity in the process of import of power.Representatives of eight industrial capacities askedthe state owned company to be exempted from pay-ing penalties for electricity that will be paid by mar-ket price, because it would represent additionalfinancial load. Practically, big industrial consumersshould pay five times more than the regular price of1.7 euros per megawatt-hour for transmitted elec-tricity that outstrips predicted quantity. If they spendless than predicted electricity, then the price is dou-bled. This means that if factory happens to receive1.000 megawatts from MEPSO more than predict-ed, than it will cost 8.500 euros instead 1.700 euros.In case if the plant demands less electricity thanpredicted, than the margin costs double of the price.This proposal is not acceptable for big electricity

consumers because, according to them, they cannot predict the precise amount of power.

Utrinski Vesnik also conveys the decision of theEuropean Commission that there are no groundsfor penalizing OKTA. This is related to the fact thatrefinery OKTA is going to produce fuels with highconcentration of sulphur in the next 18 months andfuels that does not correspond to recommendedEuropean standards. This is part of the accord thatMacedonian Government reached with OKTA onthe last day of 2007, since International ArbitraryCourt in Paris reached a verdict in favor of Greekowners.

Almost all printed media inform that the dead-line for start of work of the two wimax operators,Nexcom and Cosmotelko, expires on 23rd ofJanuary. If both national wimax operators fail tostart commercial offer of the service, in accordanceto legal regulations, Electronic CommunicationsAgency will revoke their licenses. It is a matter oftechnology that will provide services for land-line

phone services via wireless network, and becomedirect competition to Makedonski Telekomunikacii.

Biznis considers the new three-year agreementfor services concluded between the Assembly andT-Mobile as bribery. Presented cell phones to MPsand other high officials are considered as 60.000euros bribe. Experts do not consider this act as gra-tuity, nor advertising, but typical case of corruptionthat should be investigated and asked responsibili-ty.

All papers also convey the news issued byEnergy Regulatory Commission that refers to thenew wave of fuels price raise. Fuels are two denarsmore expensive and diesel 1.5 denars per litter.This decision raises the price of refinery and retailprices of oil derivates in average of 3.66% and2.69%.

Biznis, Dnevnik and Utrinski Vesnik showcharts of yesterday trade on Macedonian Stock Ex-change.

DNEVNIKp.5 ASSEMBLY RECEIVES EVIDENCE AGAINST GOSEV p.7 PETROL GOES UP FOR 2 MKDp.8 MBI 09.01.2008p.8 NEXCOM WITH WIRELESS INTERNET AND TELEPHONY

SOONp.8 MEPSO TO FINE BIG FACTORIES

BIZNIS

p.1 THE DEADLINE FOR TRANSACTION ACCOUNTS-UNTIL THEEND OF THE MONTH

p.1 IS ASSEMBLY SPOKESMAN LJUBISHA GEORGIEVSKIGOING TO BE ARRESTED?

p.2 PETROL PRICE JUMPS BY 2 MKD AND DIESEL BY 1.5 MKDp.2 YES OR NO FOR THE OFFER OF THE GOVERNMENT?p.3 IS ASSEMBLY SPOKESMAN LJUBISHA GEORGIEVSKI

GOING TO BE ARRESTED?p.3 THE DEADLINE FOR TRANSACTION ACCOUNTS-UNTIL THE

END OF THE MONTHp.5 THE PRICES OF FIXED TELEPHONY AND INTERNET SHALL

DECLINEp.12 LOTARIJA NA MAKEDONIJA RECORDS AN INCREASE OF

14.68%p.12 MBI-10 INCREASED FOR 1.47%p.12 UNIDUO-MASTERCARD AND VISA CLASSIC WITHOUT

ANNUAL MEMBERSHIP FEEp.12 MBI 09.01.2008p.13 TURNOVER OF STOCK EXCHANGE WITH A MONTHLY

DECLINE OF 62.15 PERCENT

UTRINSKI VESNIK

p.2 THE PRICES OF THE GASOLINE ARE MAKING NEWRECORDS

p.2 THE EUROPEAN COMMISSION HAS NO BASIS TO PUNISHOKTA

p.3 LARGE CONSUMERS DISAPPOINTED FROM THE GOVERN-MENT`S PROPOSAL

p.8 IN 2008 CHEAPER MILK CANNOT BE EXPECTEDp.8 MBI 09-01-2008

VECERp.4 NEXKOM AND COSMOTELCO ARE PREPAREDp.6 THE GASOLINE MORE EXPENSIVE FOR TWO DENARSp.6 TOO HIGH PENALTIES FOR IMPORT OF ELECTRICTYp.6 FOR COSMOFON THE TENDER IS NOT YET OVER

VREME

p.1 GRUEVSKI AND CRVENKOVSKI`S ADVISORS WORK FORGOSEV

p.3 GRUEVSKI AND CRVENKOVSKI`S ADVISORS WORK FORGOSEV

p.3 GOVERNOR FAILED TO REPORT 1 MILLION EUROS PROP-ERTY

p.7 IF THEY CLOSE SILMAK WE WILL MOVE TO SKOPJE p.7 GASOLINE GO UP FOR 2 DENARS, DIESEL FUEL FOR 1.5

DENARp.7 STARTS THE TOBACCO PAYMENT

VEST

p.3 PETROL RISES IN PRICE FOR TWO, AND DIESEL FOR 1.5DENARS

p.4 THE FREE MOBILE PHONES WERE NOT FREE p.6 MEPSO INCREASES THE PENALTIES FOR THE BIG CON-

SUMERSp.9 WIMAX OPERATORS WILL OFFER FIXED TELEPHONY SER-

VICES AND FAST INTERNETp.10 MANAGERS SUSPECTED FOR FINANCIAL MALVERSATIONS

NOVA MAKEDONIJA

p.3 NEW INCREASING OF THE PRICES OF THE FUELSp.4 THE BIG CONSUMERS WITH THE CHOICE ON THE GOVERN-

MENT`S PROPOSAL

SPIC

p.8 SILMAK DEAF FOR ELECTRICITY, WORKERS IN PANIC p.9 PETROL PRICE JUMPS BY 2 MKD




1. NEW CELL PHONES TOO COMPLICATED FOR THE MPS (****)2. MILESTONE WITH CONTROL PARCEL OF SHARES IN KIB (****)

10.01.2008 THURSDAY

DNEVNIKp.1 MACEDONIA IS A DESCENT PLACE FOR BUSINESSp.3 IMPRISONMENT AND SEIZURE OF PROPERTY FOR THE

OWNER OF SLAVIAp.4 THE MACEDONIAN BANKS ARE PREPARED FOR THE FAST

DEVELOPMENTp.4 IT IS INTERESTING IN A COUNTRY OF INTENSE MODERNI-

ZATIONp.6 MBI 10.01.2008p.6 FOREIGNERS TO SAVE OHIS AND EMO FROM BANKRUPT-

CYp.7 MILESTONE ANNOUNCES NEW INVESTMENTS IN KIB

KUMANOVOp.7 SDSM: GOVERNMENT AND OKTA ARRANGE FUELS PRICE

INCREASEp.7 PART OF THE INDUSTRY REJECTS THE GOVERNMENT

BIZNISp.1 FLUCTUATIONS OF THE INDEX TRIVIAL IN RELATION TO

LOW TURNOVERp.2 MILESTONE IS PLANNING TO EXPAND ITS EQUITYp.3 THE MPS TO GIVE UP THE PHONES FOR CHARITIES!p.3 VOUCHER - NEW NAME FOR A GIFT?p.3 THE MOBILE PHONES ARE IN OWNERSHIP OF THE ASSEM-

BLYp.5 NEXCOM AND COSMOTELCO GUARANTEE TIMELY STARTp.7 THE AGREEMENT WITH OKTA IS HARMFUL AND CORRUP-

TIVEp.11 STOCK BOOKS FOR 536 ACTIVE COMPANIESp.12 DECLINE OF THE SHARE INDEX p.12 THE SHARES OF KOMERCIJALNA BANKA ARE THE MOST

TRADED SHARESp.12 DIMKO MITREV ENCUMBERED WITH DEBT AT INVESTBAN-

KAp.12 08.01.2008 REPORTp.13 FLUCTUATIONS OF THE INDEX TRIVIAL IN RELATION TO

LOW TURNOVER UTRINSKI VESNIK

p.1 GOVERNMENT OFFERS NONEXISTENT ELECTRICITY TO

THE MAJORSp.2 GOVERNMENT OFFERS NONEXISTENT ELECTRICITY TO

THE MAJORSp.3 NEW CELL PHONES TOO COMPLICATED FOR THE MPS p.7 SDSM: THE LATEST AGREEMENT WITH OKTA IS CRIMINALp.7 TEHNOMETAL VARDAR CELEBRATES 60TH ANNIVERSARYp.7 MBI 10.01.2008p.8 ICELANDERS TAKE OVER KOMERCIJALNO-INVESTICIONA

BANKAp.8 NEW SUBSIDIARIES OF IK BANKA IN SKOPJE AND GOSTI-

VARVECER

p.1 MILESTONE TOOK OVER KIB KUMANOVOp.2 MPS ON MOBILE PHONE TRAINING?!p.2 THE CONTRACT IS LEGALp.6 THE AGREEMENT IS CRIMINALp.6 THE GOVERNMENT`S ELECTRICITY - RECOVERY FOR SIL-

MAK AND FENIp.6 MILESTONE WITH CONTROL PARCEL OF SHARES IN KIB

VREMEp.7 NORDIC MILESTONE TOOK OVER KIB KUMANOVOp.7 THE LATEST AGREEMENT WITH OKTA IS CRIMINAL

VESTp.2 ON FRIDAY, OPENING OF THE OFFERS FOR CONCESSION

FOR THE 28TH SMALL HYDRO ELECTRICAL POWERPLANTS

p.7 MILESTONE TAKES OVER KIB BANKA IN KUMANOVO NOVA MAKEDONIJA

p.2 PAYMENT OF COLLECTED TOBACCO STARTSp.9 MBI-10 GOES UP AND DOWN WITH TURNOVER OF AROUND

20 MILLION DENARS SPIC

p.7 A RUSH FOR SURPLUS OF ELECTRICITYp.7 STARTS THE PAYMENT OF THE TOBACCO PRODUCERS IN

PRILEPp.7 IK BANKA OPENS NEW SUBSIDIARIESp.7 SDSM: THE GOVERNMENT IMPUDENTLY GIVES OKTA THE

RIGHT TO PROFIT

Dnevnik today conveys two interesting inter-views with foreign businessmen who have posi-tive opinion on Macedonian economy perspec-tives. Bernard Koenig, First CEO of OhridskaBanka-Societe General Group, says thatMacedonian banks are ready for the rapid devel-opment, and Roger Oscarson, Director ofSwedmilk, says that Macedonia is attractiveinvestment destination due to intensive modern-ization.

Koenig considers that relations betweenindustry and financial sector are set upon marketgrounds and there is no room for politics.Although, the case of politics being involved inthe business is present everywhere. Accordingto him, it is important ruling and opposition politi-cians to reach consensus and clear vision for thefuture so positive impression about the countrycan be presented abroad.

However, Oscarson expects Macedoniancompanies to improve their products accordingto world standards, because the competitionimposes modernization. Both managers in theirinterviews claim that in this moment they face noproblems in making business in Macedonia.

Dnevnik announces that MacedonianGovernment is looking for foreign consultantsthat will make analysis on conditions in Ohis andEMO Ohrid and establish their real value. Theirreports should help to find strategic investors forthese factories and saving 4.000 employeesfrom bankruptcy.

Daily papers in their today editions conveycompanies` position on the means of paying ofthe electricity. Some big consumers accept theprice of 75 euros per megawatt-hour, offered bythe Government. Others stressed that it is betterto trade with traders on the open market, notbecause of the price, but their flexibility. These are some of the proposals that wereannounced by Government spokesperson afteryesterday meeting of Prime Minister NikolaGruevski and Deputy Prime Minister ZoranStavrevski with representatives of nine compa-nies the biggest electricity consumers.

The case of presented sophisticated cellphones to MPs takes place in all daily media.These phones are part of benefits that were pre-sented to the Assembly as big consumer andpart of the contract with T-Mobile and they will be

returned because they are too expensive. SomeMPs do not use their cell phones because theyare too sophisticated, some of them say thattheir old phones satisfy their needs, and thirdclaim that they keep them at home as orna-ments.

The news for the official take over of Kuma-novo Komercijalno-Investiciona Banka by Mile-stone was also conveyed by all printed media.Icelandic financial group is practically owner of75.9% of shares, and the rest of the shares areowned by 100 other shareholders. Total invest-ment amounts 10.4 million euros, out of which4.3 million euros are invested in share purchase,and there is also reached decision for issuing ofnew shares in value of more than 6 million euros.Jordan Trajkov, one of the owners of vineryPopova Kula, is appointed as member ofSupervisory Board as Milestone representativeand he will be responsible for the strategy andadditional investments in this sector.

Many papers convey daily trade on MSE,stock exchange index move and daily turnoveron Macedonian capital market…


* What was the thing that marked the secu-rities market in 2007?

- Last year the capital market was character-ized with a strong ascent, which in the past 12years has not been a tendency on the market.That means that in 2007 the capital market culmi-nated and went up. At first, an upward trend wasinitiated by the foreign investors and the regionalinvestment funds from Croatia, Slovenia, Serbia,Bosnia and Herzegovina, and lately from

Montenegro as well. They invested in our countryon the basis of their expert analyses for theMacedonia market, which according to my deep-est belief is based on the prices of the shares,which in the past 12 years was very low, and fromthe aspect of the real value of the companies,which are present on the stock exchange. This sit-uation was also recorded and analyzed by the for-eign investors who, compared to us, had a largerexperience and knowledge in that segment, andwhat seems stranger is that they even had better

information than we did. In their own channels,they managed to find a way to acquire correctinformation regarding the real value of the compa-nies and at their own assessment entered on timewith prices that were much lower than the reallevel, i.e. under the real market price. Consideringthese facts, at the begging of the year (2007) theyintensively entered solid companies, which were,are at the moment and would remain being solid.After purchasing large volumes of shares at lowprices, they initiated a process of appreciation.

INTERVIEW: KIRIL MITROVSKI - INVESTBROKER AD SKOPJE

MACEDONIA OPENED FOR FOREIGNINVESTMENTS - CLOSED FOR DOMESTIC

INVESTMENT OUTFLOW The

great growth of the MacedonianSecurities Market in 2007 is going tobe remembered in the circles of the

business - stock exchange elite as mostsuccessful. Increased trading intensity,double and even triple appreciation of

the share prices, turnover growth,over 100 percent boost of the stock

exchange index, increasing of thenumber of participants on the market,

and above all sudden interest of thecitizens for trading on the Stock

Exchange put it on the pedestal -most interesting, most analyzed and

most speculated subject out in thepublic. Many qualified the growth of

the market as a place for fastearning and realizing of capital,

while others as a place forembezzlements, speculations, or

a betting shop for easy money.Starting from such so-called "he

said she said", and bearing in mindthe numerous detailed explanationsfrom the competent people who aredirectly involved in the operating of

the securities market, in the veryascent of the stock exchange,

because it marked 2007, we spokewith one of the first brokers in our

country Kiril Mitrovski, director of thebrokerage house Investbroker.

The state should fight for opening the doors for our investors to have opportunityto realize their capital in other countries.

This step was realized and afterwards followed bythe domestic investors. Another thing is that thedomestic investors had bigger confidence in theforeign investors, so consequently they followedtheir actions. Apart from this, they as shareholdershad the right to an insight in the shareholders'books in the Depositary where they saw that theforeigners entered with great amounts of money.As we would say, as long as a certain brokeragehouse, fund etc, from Slovenia enters it would cer-tainly be a good thing for us to do the same. Inthat manner, following the foreigners, our clientsdrew investment moves on the Stock Exchange.

* Do you feel that the foreign investorshave (and whether it is needed) a specialagency that monitors the market, ranks thecompanies, evaluates them and perceiveswhether the value of a certain share is under-estimated or overestimated?

- The foreign investors have special analysessectors. With the training of the investment advis-ers we are also working in this field, however inour county this is still underdeveloped, and itwould take time for the people tobe trained, to practice and so on.The same thing had happened intheir countries as well, and theywalked this road too. It is impor-tant that they had the initial data,and certain findings, which we didnot know in the right moment,however we still do not know howthey came across such informa-tion. That means that they had theinformation we could not under-stand, that is, to discover the con-tacts of our companies with theforeign ones. We discovered the informationabout certain companies that realized larger dealsafter a certain time. These, if I may say, insiders'information important for the share prices or thenegotiations regarding a certain matter, are beingkept hidden by the Macedonian businessmen(maybe for a reason) because they do not wantthe competition to find out about them, they fearundesired consequences, they do not want for theshare price to rise because of that information.However, unlike the domestic, the foreign compa-nies work with another methodology and theyinform and expose their domestic investors ontime.

* Does this mean that they have access tothe information?

- They do have the possibility; they had aninfrastructure that enabled them to come to thisinformation, which by far contributed to successfulassessments. A major thing is that they concludedthat the prices were very low. As a matter of factour market is a field where a lot could be earned.This has also been proven by our analyses. Hereis an example of how the prices of some of ourcompanies moved. In January last year, a singeshare of "Toplifikacija" was worth 4,500 denars.With the depreciation in the last few months of lastyear, it ended at a price of somewhere around 13thousand, correction included. Here "Alkaloid"also had a similar price and ended up at around11 thousand denars, "Makpetrol", started with 48thousand, and at the end of the year reached

around 130 thousand. All of this is a minimal ratio,two to one or three to one and in some caseseven four to one. This means that the foreign buy-ers followed the conditions on the Macedonianmarket, made an assessment that the prices ofour companies are low. Nevertheless, the inva-sion of the domestic investors who were buyingshares because of the foreign investments, madea fuss, an enormous interest for purchasingshares, which eventually had to end. The eupho-ria, which affected our citizens, became "blindshopping", but on the other hand contributed tothe great price increase at the end of August.Nobody thought at the moment that al this wouldcome to an end, the depreciation of the shares islimited, just like the fall has a limit, and as every-thing else there is a maximum followed leveling,and then comes the minimum. Nothing could beinfinitely positive or negative. According to myassessment, the domestic investors started buy-ing with a certain delay compared to the foreign-ers, however, all of them entered the market rightafter the foreign buyers, and somewhere in April -May made a fantastic profit, which stimulatedthem to continue buying.

* You are present on the market since thevery beginning. It seems that in the past thelegal entities appeared more often than to thecitizens. There is a general impression thatlately things have changed, is it so?

- Although generally we still have no data,according to the monthly analyses of the stockexchange, the percentile participation of the citi-zens is growing. That is, they have a dominantposition compared to the legal entities.

* I do not refer to the people who becameshareholders in the course of events, butabout the people who did not receive sharesduring the transformation of the state-ownedcapital.

- It is a matter of new investors, who kept theirmoney "under the pillow", or in a bank for a cer-tain low interest. This means that it is not a matterof money taken as a loan, because this is a greatrisk. Uncertainty is indeed present on the stockexchange.

I see certain articles where people, who arenot of our profession, i.e. are not experts of stockexchange operations, forecast fall or increase ofcertain stock exchange parameters. Nobody inthe world could predict this. To be honest I expect-ed, the depreciation that many said was a result ofthe unpreparedness of our investors to handle it,but not with that magnitude and for that long. It isa fact that December is always a dead month from

the aspect of business deals. Due to the CatholicChristmas, the foreigners withdraw, and it wasexpected, however a depreciation of that scalewas not expected. At the end of the year wereexperiencing a stagnation. So this was not thetime of the drastic fall. It started earlier becausethe resources of the domestic investors wereexhausted. That was the money and the capacitythey had. They were exhausted, stopped andwaited for the prices to have an upward trendonce more.

* Was there space and expectation for ourfunds to take part?

- The open funds were just registered and arestill collecting finances, however this is not a suf-ficient capacity. I can see in the media that theyare telling certain ideas of how to operate, butthey do not have a lot of money at their disposal.We could not expect for them to liven up the stockexchange. The purpose of the funds is to take inthe inexperienced shareholders, investors andthose who are afraid to made their own decisionon where to invest. The capital that the funds have

at their disposal is relatively small.There are brokerage houses, likeours, that have higher funds thenthese investment funds. We areregistered with 500 thousand eurosa long time ago, we have not lostour capital, so we have bigger cap-ital now, but still this is as far as wecan go. A few yeas back I spokeabout the thing that happened in2007. I said in the stock exchangecircles: "Give me five million eurosand you would see what I am goingto do on the Stock Exchange.

Money is needed but, turnover should be made aswell. The foreign funds had the possibilitiesbecause they are supported by a heavy number ofpeople who are investing; they were able to par-ticipate on the stock exchange and had the possi-bility to take chances. They are also purchasingon markets for which they have insufficient infor-mation, but are trying to accomplish something,they are able to increase certain prices, to with-draw on certain markets and cause depreciation.Above all they are powerful.

* However could we say that last year ourmarket had the greatest growth ever?

Yes. It had the biggest growth because theshare appreciation was the greatest. The year2006 was also good considering the share appre-ciation, however not with this dynamics and mag-nitude where almost everything had a 200 percentincrease. If we make a comparison, we would seethat during the highest level in September com-pared to the begging of the year, the ratio of thesingle share of "Toplifikacija" is one to four,"Makpetrol" reached one to four, "Alkaloid" got to14 thousand, i.e. one to three same as Granit, thatis an increase of 300 percent. We could practical-ly say that although this appreciation is three tofour times higher is actually represents a realimage about the value of the shares. That meansthat this value was supposed to be the starting


Last year's growth of the market is what we have been expecting for years.Because the capital is present in our country but it is still not correctly distributed,that is, we still have immobilized capital among the citizens and the enterprises.Another reason that there was no investing on the Stock Exchange was the distrustof the citizens, which actually is a reflection of the financial problems from the past,like the cases of blocked currencies, TAT…

Despite our explanations that the Stock Exchange is not a company that gam-bles, or a company that is cheating the rules and regulations and that the moneycould not be lost - the dilemma amongst the people remained. Luckily, last year'sascent, which happened thanks to the foreign investors, mainly to the regionalinvestment funds that also encouraged our domestic investors and they were fol-lowed by an offensive of the citizens as well.

Continues on pg. 12


PRIVATE FUNDS

With the amendments of the Law onInvestment Funds, which wereadopted in May 2007, Macedonia

got the opportunity of founding associa-tions for managing the private funds, andprivate funds.

Throughout the world, the industry ofprivate funds develops for over 100 years.The first financial trusses are founded inBritain, in the 19th century, and most ofthem are still working successfully. Thecompany Blackstone can be pointed out asan example, which for decades now isactive on the world markets.

In accordance with the legal regula-tions, the amount of the initial capital of theassociation for management of privatefunds is 50 thousand euros (foreign cur-rency), while for founding a private fund,the minimal requirement for investing is500 thousand euros.

Generally speaking, the main differ-ence between the open and the privatefunds is the way in which each of them isfounded.

- The open funds are formed by collect-ing finances from legal and physical enti-ties, through a public call for payment ofshare.

- The private funds are formed througha private offer of already well-knowninvestors for sale of share; during what theminimal undertaken obligation for paymentof one investor cannot be less than 50thousand euros.

The duration of the private funds is lim-ited, opposite of the open ones, where thedeadline is not limited. The minimal dura-tion of the private fund is eight years. Also,the number of investors is limited in the pri-vate funds, and it adds up to 20 legal andphysical entities, opposite of the privatefunds where the number of investors isunlimited.

Otherwise, the open and the privatefund both have not got the function of alegal entity and are investing in accor-

dance with the prospect and the Statute ofinvestment.

The property of the open and the pri-vate fund are managed separately fromthe associations of management and donot enter in their balances.

The investments of the private fund arecontrolled by the investors themselvesthrough their information regarding theinvestments. The private fund is obliged tosubmit accounts audited to its investors.

Types of private funds

In practice, the private funds areinvesting in different instruments. Thereare different kinds of private funds:

- Exchangeable - which invest insecurities of the organized markets, index-es;

- Immovable - which invest in realestate and mortgage instruments;

- Equity - which invest dominant capi-tal in the initial capital of the companies;

- Mixed funds, which represent mix-ture of all the above mentioned investmentinstruments, and other types of funds,which at the same time, are in accordancewith the prospect of investment acceptedby the investors.

The funds can be formed also for:

- investing in certain industry, so calledindustrial funds; \

- Energy fund - funds which invest incompanies connected with the energyonly,

- Information fund - fund whichinvests only in companies from the infor-mation technology,

- Agricultural fund - fund whichinvests only in agricultural companies, etc.

In the private fund, the investors aresigning an agreement for managing theassociation for management of the privatefunds, by which are prescribed the condi-tions of the prospect with which the joint

finances are invested.

Formation

The private funds usually are foundedby legal and physical entities who areamalgamating their capital for achievingjoint business interest. The investors whomerge their finances are accepting the riskof investing. The risk is defined in theprospect of the fund, which the investorsare accepting knowingly. Because of therisk, the freedom of investment, as well asthe absence of strict control of the regula-tor, these funds are limited to private cen-tralization of finances, as well as with theminimal paid-in part of 50 thousand euros.

MAK Assets Management manages the SEEInvest Fund

The Association for management ofprivate funds MAK Assets ManagementLLC is founded in June 2007. In July, thesame year the first private fund of theAssociation SEE Invest Fund started func-tioning, as well. The fund, in accordancewith its prospect is share-based andinvests in the organized markets inMacedonia, Serbia, Bosnia andHerzegovina, and Croatia.

The investments have characteristicfor long term and are invested in such eco-nomic fields which are considered to bemost perspective in the investing country.

The association for management of theprivate funds MAK Assets ManagementLLC Skopje analyzes possibilities for form-ing a fund for investing in small and middlecompanies through their purchase or com-pleted capitalization.

Of course, it will contribute the smallcompanies to get cheap capital, stablefounder, so after a certain amount of timethey would be attractive for foreign, as wellas for the domestic investors.

MERGENCE OF THE CAPITALFOR ACHIEVING JOINT BUSINESS INTEREST

The investors who merge their finances are accepting the risk of investing. Because of the risk, thefreedom of investment, as well as the absence of strict control of the regulator, these funds are limitedto private centralization of finances, as well as with the minimal paid-in part of 50 thousand euros.

11Date 14.01.2008 number 5 berzNIK


one, but this did not happen because there wereno investors. We have an interesting phenome-non of shareholding companies that date backfrom the era of socialism, where the managementstructures benefited from showing lower prices ofthe shares, in order to purchase them later at alowest price. They were interested in gathering asmore percents as possible under these condi-tions, which is normal when there is nobody toobstruct their plan. When the shares were appre-ciating intensively, you recall that there were rec-ommendations from certain managers. Theyreacted that the share prices were growing artifi-cially. Unfortunately as I believe the reactionswere not appropriate, because they should haveunderstood, to undertake measures, purchase atthose prices, so we could see whether this actionwas the best. Another thing is that the pricesamong those who reacted went up anyway. Thismeans that it was not a speculative, but a realprice appreciation. Unfortunately, certain man-agers did not want to admit that they underesti-mated the shares of their companies. Now, thesevery companies are active on the market and buyshares in order to consolidate, however they arepaying more expensive compared to the previousperiod.

*Certain analysts consider that some com-panies, especially major banks are closed,they fear of foreign investors' entrance?

-Banks as firms and companies are specificsegment of the Stock Exchange. They don'tinclude physical entities as dominant sharehold-ers, especially not people management. Theyhave been formed with big capital so the man-agers that governed the banks didn`t have theopportunity to have great percentile participation.By the way, they had to move forward towardsspecial legal procedure at buying shares,because they must have permission from NBRMfor a certain per cent. Banks have another phe-

nomenon - major companies have the role ofshareholders although this appearance is chang-ing and they are more interested not to be share-holders in banks i.e. to sell its capital, because inthe period of transition banks didn`t work withprofitability, they didn`t provide adequate dividendfor the invested money because in order to usecredits they had to be participants with shares inbanks. Now, the interest of the companies isdirected towards selling their shares in the banksat higher price. The entrance of the foreigninvestors who assessed that these prices are low,shift the prices at upward in ration of 1:3 at almostevery bank. This is where the people joined.However if we follow banks` shares, they are thesame level for a longer time. Now, despite theannouncements, the external investors choose inwhich bank to invest due to the regrouping insame banks.

*There is another segment that islaunched in public- with the intensive entranceof foreign investors in the state the nationalityof the banks vanishes. What is the world expe-rience when the capital of one bank is in dom-ination of the domestic or foreign investors?

- For every business the nationality, accord-ing to me is not important because the purpose ofthe business is profit. The whole world is function-ing with foreign banks and I would be very happyif we have lucky to have domination of the foreign-ers, in order to continue our work. I would be verypleased if the other banks brands enter such asSociete Generale that bought Ohridska Banka,Deutche Bank, Reifeisen Bank. Our market issmall and it can not function with so many banks.Rationally, this banking system has to be reduced.The foreign banking institutions are more organ-ized than ours. Domestic banks cooperate withforeign banks, they took training, specialized,attended seminars, it is about reorganization,fresh capital and new projects which will changethe manner of work and passive banks shouldbecome active. They should approach aggres-sively in the economy, to seek to finance projects,to be initiators of certain projects and to find theirrealizers. Now the situation is opposite. Everybusinessman enters in bank and roughly speak-ing pray on his knees to receive money. That`sthe system. For example, Deutche Bank realizes67 to70 per cent from the incomes on the StockExchange and the currency Stock Exchange,launches 20% of the assets on projects and 5 percent on classical crediting. Hence there the cred-iting is minor, contrary to us.

* Analogical to this should the banksappear in future on the Stock Exchange asshare purchasers in certain companies inorder the ratio to be opposite from the current

situation?

- Banks are still interested in that, but are lim-ited from NBRM which request a cover for riskbusinesses, i.e. they request compulsory reservebecause although they can realized major profits,still didn`t invest in shares. In this period the timeis not right for the banks to be active in investing;now the banks invest only in state bonds, treasurybills where the state as safety is in question. Inorder to be competitive they need to change, andthis is only one of many ways by which the banksshould have to invest in order to be market play-ers. They can invest through the Stock Exchangein the current and the new companies. They haveto invest initially and if the price increases to sellthe shares and to put the profit in disposal to thecertain company not with a classical loans butwith by purchasing and of shares - shares arebought, and then sold. It can be noticed throughthe Stock Exchange that at the moment the banksenter, the citizens will start to buy these shares. Inthis way banks can realize profit and the compa-ny can be in the process of development. InWestern countries, major part of the PensionFunds realizes the profit through buying sharesand real estates. They have wider investmentspectrum. We still have many obstacles that arehardy to exceed in order to invest in the StockExchange.

*Many citizens understood the StockExchange as gambling house?

-I always say that the Stock Exchange is nota hazard. When one gambles, one loses definite-ly. On the Stock Exchange one seldom loses, cangain or remain as it were. It depends from the pro-jection where you will invest. It depends on theassessment, desires, and the character of people.Another thing is that on the Stock Exchange theinvestment is made with free money not withloans. The loan is a risk. However the StockExchange is a safety place for investmentbecause it has certain rules of the game. A set ofrules according to which if you invest money youwill certainly get shares. If you sell shares you willdefinitely gain money. There are rigorous rules ofthe Stock Exchange, brokers and depositorywhich are on European level. These three seg-ments are controlled by all EU standards and wehave the same evaluation from EU. So this seg-ment is totally by EU standards, but our legislationis not adjusted on European business yet. Forexample, we can not purchase shares on the for-eign Stock Exchanges not as brokerage housenor as Kiril Mitrovski, nor as a bank… The law oncurrency is concise and it should work on liberal-ization of this part. We are opened for foreigninvestors and closed for domestic investment out-flow. … The money circulation without an instru-ment of the regulative can not be canalized,because much money is separated from the state.They found channels outside. So, the state shouldfight for opening the doors for our investors inorder to have the opportunity to realize their capi-tal in other countries. There are statements forchange of this kind of direction. It remains to seewhen and how this is going to be realized….

* Is it needed our brokers to have trainingin foreign major markets?

Continuing from pg. 9

Investbroker exists since March 1996,when the Stock Exchange officially beganto operate. On the very beginning therewere about 17 shareholders that formed theStock Exchange, several savings bank andcompanies, and we, as a brokerage housesin the frames of the banks, Investbanka,Balkanska Banka, Tutunska Banka andAlmako.


- When I started to work there have been offerconsultants from London to train us, because ourStock Exchange is in accordance with Londonstandards. But I refused the offer because ourbrokers are prepared enough. The legal base ofMacedonia and England in the past and now isnot the same. It is much easier for them. We needyoung, ambitious people and experts. My ideawas to abolish the package trade. It is much differ-ent where the brokers, i.e. the market`s playersknow each other. In other countries although thesystem is electronic, still the trading is on oneplace, the same as in package. We don`t havepublic trace of the trade, which is important for thepromotion of new companies. This is regular prac-tice on the world Stock Exchanges. In our countryif the major companies are to be sold the quantityof the work will reduce. New companies shouldappear, the perspective is in the fact that shouldbe a legal relieves. Now according to the Law onListing on the Official market the companies thatwant to list should have three years experience,financial reports, and they are all LLC.

* Will the brokerage houses demand liber-alization in this section, because it is also inyour interest to have new clients?

- A quality material is needed in order toobtain information that the company that is listedis in order. Currently LLC can become JSC, but onthe third market. What needs is the creativity ofthe manager and municipalities. They are con-stantly complaining that they have no assets, butcan have them if they invest in bonds. The wholeworld is financing on this way, but there has to becertain project. Everybody waits for theGovernment and the mayor to do something

.They have to manage, to face the risk, and theseek further motivations …. The shareholders thatare going to buy those bonds will try to introducebusiness, because it will be of their interest too,they will also take advantage of.

* Are you satisfied from the business?Can it stand financial?

-Invetsbroker works 12 years and it is alreadyprofitable brokerage house. Although project`shard conditions, last years we worked successfuland the shareholders are satisfied. The competi-tion is strong. Currently there are 23 competitorsand I expect at the end of the year their number tobe 30. And in order to receive a piece of the casethey reduced the provisions. The provision indi-vidually determines the each house individually.

Several years ago I have recommend to regulatethe lower limit, but we didn`t do that. Now someare prepared to work for minimal percents, whichit considers to be developmental component. Thisyear I plan to alleviate the products not becauseof the competition but due to the taxation of thecapital gain of the citizens. The brokers insist thisprovision not to be conducted now, at the begin-ning, when our citizens began to trade in massivenumber on the Stock Exchange. We seek motiva-tions at least until 2010 which will result with big-ger entrance of citizens.

However the turnover and the transactionswithout 2007 are increased 20 to 30 times… inrelation to the beginning of the Stock Exchange.On order to have financial effects one brokeragehouse should realize 15 million euros annualturnover at the least.

Also, what is needed is the creativity of the managers and the municipalities. They areconstantly complaining of not having assets, but can have them if they invest bonds.

LAST YEAR ALL PARTICIPANTS IN THE MARKET HAVE GAINED.

Last year all participants on the market gained. My prognosis is that the maximalprices from the last year can be corrected now, however without such dynamic.Good liquid companies normally correct the prices, even if this amount of prices,which was maximal exceeds, but this is going to happen after 15-20 days. By my cal-culations the first semester of 2008 will show if this is going to happen, if nothingelse the maximal prices are going to return, because they weren`t pumped up, butcame too quickly on this price level. Last year in September for example, the mainpurpose for the sudden and strong price correction was the fact that the foreigninvestment funds have directed themselves towards the Croatian Telecom. So, theydidn`t ran away but had a need at the moment to invest in profitable actions.Unfortunately, the state is not launching Macedonian Telecom. We have a potentialwhere many citizens can purchase in mass number. I want to say that it is a goodthing that many people neglect the previous attitude that foreign investors haveentered despite this analogy and had courage to take part on the Stock Exchange.The participation on the Stock Exchange doe not represent great risk, it just needsgood individual assessment - if, where, what, how to purchase and when to sell.



1. OKTA DICTATES BOTH RULEBOOKS AND PRICES OF GASOLINE`S QUALITY (****)2. ANTICORRUPTIONERS PUT CELLS UNDER MAGNIFYING GLASS (**)

11.01.2008 FRIDAY

DNEVNIK

p.3 SEIZED PROPERTY FROM THE OWNER TO PAY DAMAGESTO THE STATE

p.4 OKTA DICTATES BOTH RULEBOOKS AND PRICES OF GASO-LINE`S QUALITY

p.4 ANTICORRUPTION COMMISSION TO EXAMINE MPS MOBILEPHONES

p.7 MBI 11.01.2008p.7 TWO NEW IK BANKA SUBSIDIARIES

BIZNISp.1 T-MOBILE EXTRICATES ITSELF - COSMOFON TO CONTINUE

WITH COMPLAINTSp.2 THE NEW CONTRACT RESURRECTS OKTA`S MONOPOLYp.3 T-MOBILE EXTRICATES ITSELF - COSMOFON TO CONTINUE

WITH COMPLAINTS p.3 PUBLIC OPENING OF THE OFFERS FOR THE 3G TECHNO-

LOGYp.11 MILESTONE TO GOVERN WITH MIXED TEAM IN THE BANKp.11 EVROPA SHARES WITH GROWTH OF 63 PERCENTSp.12 MBI 10.01.2008p.11 NON TRADING SHARE TRANSFERS

UTRINSKI VESNIKp.1 IS THE AUTHORITY IMPOSING ITS HAND ON THE GOVER-

NOR`S POSITION? p.2 IS THE AUTHORITY IMPOSING ITS HAND ON THE GOVER-

NOR`S POSITION? p.3 SDSM: THE GOVERNMENT AND OKTA RESURRECT THE

MONOPOLY

p.8 NONEXISTENT ELECTRICITY FOR SALEVECER

p.4 ANTICORRUPTIONERS PUT CELLS UNDER MAGNIFYINGGLASS

p.4 TWO NEW SUBSIDIARIES OPENEDp.4 GOVERNMENT RESURRECTS OKTA MONOPOLYp.7 OPENING OF 3G BIDS

VREMEp.3 WHO IS THE OWNER OF JAKA TABAK?p.3 ISRAELIS DEPOSIT MONEY FOR ALUMINAp.7 SILMAK NOT ABLE TO RESTART THE PRODUCTIONp.7 THE GOVERNMENT RISES THE MONOPOLY OF OKTA

VESTp.9 ELENICA OF STRUMICA WANTS TO BUY KIRO KJUCHUK

NOVA MAKEDONIJAp.1 SILMAK CLOSED, THE WORKERS ON STREETp.3 GOVERNMENT WANTS TO SELL POWER FROM HEATING

OILp.6 SILMAK CLOSED, THE WORKERS ON THE STREETSp.6 THE GOLD WITH NEW RECORD ON THE STOCK

EXCHANGES WITH 900 DOLLARS PER OUNCE

SPICp.5 IVICA BOCEVSKI: NO SCHEMES, EVERYTHING IS TRANS-

PAREp.5 SDSM: THE GOVERNMENT IS LUBRICATING ITSELF WITH

THE HEATING OIL FROM OKTA

The case between the Government and refin-ery OKTA is not calming, topic that is in detailselaborated by all daily papers in Macedonia.

- The Government resurrected OKTA`smonopoly with the agreement for settlement thatwas signed in the eve of New Year holidays. Thecabinet wants to sell electricity to big consumersproduced in TPP Negotino from heating oil fromOKTA, SDSM Vice President Igor Ivanovski, stat-ed.

According to him, Macedonia spends in aver-age 300.000 tons of heating oil without require-ments of TPP Negotino, and if we include plant`sconsumption of heating oil, the quantity is dou-bled. That is how the Government and OKTAmade a deal for placement of low quality heatingoil in amount of 600.000 tons. This amount will bepaid by big consumers and citizens. In contrary tothese accusations, Government spokespersonIvica Bocevski reminds that all agreements signedwith OKTA can be found on Government`s website, which is proves that there are no schemes,no annexes, no sub-agreements, no tacit agree-ments. Written agreement renders amendmentsin the rulebook for fuels` quality which will improvetheir quality. Spokesperson underlines that thisagreement reduces the obligation of 93 milliondollars to, assumed by Crvenkovski`s cabinet, to40 million dollars.

Papers convey that Agency for Electronic

Communications today will hold public opening ofbids for 3G technology. Fast internet, high speeddata transfer, access to multimedia contents,video-telephony and television are part of servic-es offered by this technology. Experts are skepti-cal and say that 3G technology is not service forvast population, due to expensive cell phones andhigh prices…

Utrinski Vesnik asks if the Government triesto control Governors`s position. Opposition partiesare assured that ruling structures have intentionsto force Gosev to file his resignation across thevote of confidence and other forms of public pres-sure. Government is categorical that NBRM`sautonomy is respected. Monetary authority inMacedonia is independent. The Government, asexecutive power, acts only in the frames of theConstitution and laws when it comes to its relationwith monetary power.

Vreme informs that the current owner oftobacco combine Jaka Tabak from Radovis andscheme of shifts of its management structure isunknown although former Directors were detainedunder accusation for embezzlement of stateowned tobacco, and the outcome of the affairrelated to share sell and purchase is expected.According to the current situation, employees stilldo not know who they are working for. Jaka Tabakis registered in the Central Securities Depositor asprivate owned joined stock company. Pension and

Disability Insurance Fund and shareholders whoown ordinary shares are registered asowners…This paper also conveys the news thatrepresentatives of the most favorable bidder forbuying the property of Alumina, Israeli companyGazit Globe, has signed the agreement fortakeover of this former loss-making firm.

Company has paid the deposit of 795 thou-sand euros and the rest of the deal in amount of19 million will be paid within 21 days, AcoDamcevski, liquidator of Alumina, stated.

Vest informs that brickfield in Chaska, ownedby Kiro Kucuk from Veles, will be bought by thefactory for production of building materials Elenicafrom Strumica.

After the verdict reached in the case onSlavija, Dnevnik informs that State Prosecutionwill execute the pronounced seizure of 97.6 mil-lion denars that belong to company`s owner, KirilKocevski. He is sentenced on 6 years of imprison-ment for breach of duty in the process of privatiza-tion of this company. Claims of damaged share-holders and employees in Slavija are settled intrial procedure. Biznis informs that shares ownedby Evropa record 63% growth on capital market. Itis a matter of sell of small number of shares, 12shares at the price of 5.000 denars in one trans-action and other block of 20 shares at the price of9.990 denars.




1. T-MOBILE AND COSMOFON RACE FOR 3G (****)2. 12 COMPANIES BID FOR CONSTRUCTION OF 28 MINOR HYDROELECTRICPOWER PLANTS (***)

DNEVNIKp.3 SDSM: GOVERNMENT PROTECTS OKTAp.6 MBI 12.01.2008p.6 TWO TIMES MORE OFFERS FOR 28 MINOR HYDROELEC-

TRIC POWER PLANTSp.6 T-MOBILE AND COSMOFON

UTRINSKI VESNIKp.4 OKTA KEEPS POISONING THE CITIZENS, SDSM ASSERTSp.7 12 COMPANIES BID FOR CONSTRUCTION OF 28 MINOR

HYDROELECTRIC POWER PLANTSp.7 COSMOFON AND T-MOBILE CROSSING SWORDS OVER 3G

TECHNOLOGYp.7 MBI 12.01.2008p.7 GREEN COALITION REQUESTS DISLOCATION OF TOPILNI-

CA OF VELESVECER

6 THE GOVERNMENT ISSUES PERMISSION FOR DESUL-PHURIZATION UNIT

p.6 12 BIDDERS HAVE COMPETED FOR 28 HYDROPOWERPLANTS

p.7 T-MOBILE AND COSMOFON RACE FOR 3G p.7 GAMA RECEIVES CONNECTOR IN BUNARDZIK

VREMEp.6 T-MOBILE AND COSMOFON WILL RACEp.6 RESTART OF OHIS OR RESIDENTIAL COMPLEX?p.7 THE HEADMAN FROM RUSSIA IN PRISON - NO GAS IN

MACEDONIAp.7 12 COMPANIES BID FOR SMALL HPP

NOVA MAKEDONIJAp.5 FINANCIAL GROUP MILESTONE TAKES OVER 75.9 PER-

CENT OF THE SHARES OF COMMERCIAL-INVESTMENTBANK

p.5 ONLY T-MOBILE AND KOSMOFON WITH OFFERS ON 3G-TECHNOLOGY

p.6 NO OFFERS, NO BUYERS, EVERYONE IS WAITING FOR THENEW WAVE

SPICp.6 PING-PONG WITH OKTA

In the weekend edition of the daily newspa-pers dominate three basic news. All editions fromSaturday conveyed the news about the opening ofthe bids for the construction of 28 small HPP inMacedonia. Seven domestic and five foreign com-panies have submitted 58 bids in the internationaltender organized by the Ministry of Economy forgranting concession for production of hydroelec-tricity. Seven of them are domestic, while thegreatest interest is about the HPP on the riversMarkova Reka, Bregalnica and Pena. The highestnumber of bids come from the Austrian EnergieZotter Bau which participated in the tender forconstruction of 28 small HPP with 24 bids, whilstthe Italian Co-VER submitted eight bids.

The second news conveyed by the printedmedia is related to the bids in the tender for 3Gtechnology, in which the battle will be among T-Mobile and Cosmofon, the only companies thatapplied on the tender. The company that will pro-vide this service will be announced by the Agencyfor Electronic Communication in two weeks.Moreover, T-Mobile and Cosmofon are competingfor the use of radiofrequencies providing publicmobile communication network and 3G technolo-gy services.

The case OKTA has remained a subject thatis reported by all the media. The accusationsaddressed to the Government in terms of thediversion from the agreement on debt settlementare not calming down. The oppositional SDSMaccuses: - Within the agreement on debt settle-

ment, concluded prior to New Year`s holidays withOKTA, the Government stated that the refineryhas completed the investments concerning theinstallation of the alleged desulfurization unit andalso undertook the liability to issue a permit forsuch unit. According to the President of SDSM,Igor Ivanovski, this is additional evidence that theGovernment has agreed in favor of OKTA, insteadof in favor of the citizens. - Besides the fact thatOKTA is not sanctioned due to the violation of theMacedonian laws, but further more the companyis given the right to produce environmentallyharmful, low-quality and expensive fuels in thenext 18 months due to the postponing of theenforcement of the Rulebook on Fuels, informedIvanovski and asked how much profit OKTA willmake regarding the postponing of the Rulebookon Fuels in the following 18 months…

Looking at the other news a special attentionis paid to the news released from Vecer about theinstalation of the new transformer station by ESM-EVN in the free economic zone Bunardzik for theneeds of GA-MA. Thus the gas pipeline companyGA-MA is enabled to operate freely in the devel-opment of the gas pipeline infrastructure and thepossibility of gas transport. For the complete elec-trification of the zone the projections include theinstallation of new 110 kW transformer station and110 kW long-range transmission line that will costEVN around EUR 6 million.

Utrinski vesnik released the initiative of theGreen Coalition in the municipality of Veles for the

modification of the general urban planning of themunicipality which is in relation to the location ofthe smeltery in Veles. The proposal of this associ-ation is the smeltery, which was the greatest con-taminant in the city, to be moved 18 kilometerssouth of Veles within the Factory for ArtificialFertilizers HIV, which was previously integrated inMHK Zletovo. They claim that the citizens` resist-ance is growing in regard to the potential sale ofthe smeltery and its potential restart in the currentlocation…

This subject is also covered by Vreme, but forthe location of the chemical giant OHIS. After fourunsuccessful tenders for sale of the chemicalgiant OHIS the Government announced that it willrequest for foreign consultants who will renderanalysis of the conditions in OHIS and therebydetermine its real value. During the three interna-tional public announcements for sale of OHISthere was not a serious buyer, while the sale ofthe state-owned stocks on the stock exchangewas recently suspended due to the speculativetransactions, which caused appreciation in thestock prices.

The greatest Macedonian chemical factorywas offered on the last public tender for EUR 8,6million. In spite of the efforts by the Governmentfor revitalizing the factory, there are informationcirculating in the public which speculate that thissight is planned for a residential complex.


T-MOBILE AND COSMOFON RACE FOR 3G

Only T-Mobile and Cosmofon submitted bidsfor the 3G technology. The Agency for ElectronicCommunication will announce in two weeks thecompany that will offer these services. In the pres-ence of the representatives of both mobile opera-tors, the President of the Commission MileVeljanov confirmed that the tender documenta-

tions are complete without thereby revealing anydetails. The tender Commission should examinethe bids no later then January 17 and afterwardsprepare a ranking list. Subsequently the Agencyfor Electronic Communication will bring a decisionregarding the selection of award of the radiofre-quency for 3G.

12 companies bid for construction of28 minor hydroelectric power plants

On the international tender for construction of28 minor hydroelectric power plants bided sevendomestic and five foreign companies, which havesubmitted 58 offers. Most of the offers are fromthe Austrian Company Energy Zotter Bau, whichparticipates with 24 bids on the tender for con-struction of minor hydroelectric power plants,while the Italian Cover has submitted eight offers.There are four bids from “Purferco ParticipationHolding” from Switzerland, and the SlovenianCompany “Poteza”. The companies from Skopje“Eltek”, “Fidko”, the consortium “Ingmark” and“Flexpower” have submitted three bids.

12.01.2008 SATURDAY


1. SHORT REVIEW IN THE WEEKLY MAGAZINES

31.12.2007-05.01.2008 MONDAY-SATURDAY

GLOBUS

P.29 OFFICIALS MAIN "CUSTOMERS" OF THE FINAN-CIAL POLICESUMMARIZINGLast year, the Financial Police discovered that top state offi-cials, directors of state organs and public institutions, civil ser-vants, as well as directors of banks and firms, customs offi-cers, liquidators etc. were the most frequent perpetrators ofcrimes. ? How many crimes did the Financial Police discover thisyear?- During 2007, the Financial Police discovered and proved 76crimes. It filed 41 criminal charges for 61 persons to the com-petent public prosecutor`s offices. We discovered and provedthat a damage of about 12.6 million euros was inflicted to the2007 budget with the perpetrated crimes.

FORUM

P.8 WILL THE GOVERNOR BE GIVEN THE SACK?In the middle of this month on the Assembly agenda should bethe discussion regarding Governor Petar Goshev`s interpella-tion. The request of accountability from the NBRM Head wassubmitted by 15 MPs of almost all parties in the Parliament(except DUI and LDP). In the explanation of this initiative withwhich Goshev is accused for abuse of the legal regulations isindicated that the reason is the liquidation of Makedonskabanka, which the interpellation submitters believe to be non-sense since it is a matter of positive cash flows and profitablebank at the same time.

P.31 KOMERCIJALNA BANKA SHARE DOMINANTDominant share of Komercijalna Banka was realized lastFriday when 3.090 shares were traded, from a total of 0.16%of the bank`s main capital for an average price of 6.839 MKDin the three trading days, which is 0.2% price drop in relationwith the last week.According to the realized profit of 8.9 million MKD, Alkaloid isa runner up and its share marked 1.18% drop of its averageprice.

KAPITAL

P.26 WILL THE GROWTH ON MACEDONIAN STOCKEXCHANGE BE THE SAME IN 2008? Usually, the beginning of the year is a period for establishingthe (un)successfulness of all economic institutions the past 12months, and so of the stock exchanges as well. The worstresult of all regional stock exchanges the past year has shownthe Banja Luka stock exchange, which index of most liquidcompanies, BIRS, in spite the slight appreciation in December,throughout the whole 2007, has realized negative balance of11.1%.

P.28 MAKPETROL AMONG THE FOUR MOST TRADEDWITH TURNOVER OF 70 THOUSAND EUROS With turnover of only 4.6 million denars or 73 thousand euros,the share of Makpetrol joined the four most traded in thebeginning of the year. The low level of trading is not uncommon for this period of theyear, taking into consideration that the investment funds, as

the biggest moving force on the stock exchange in 2007, aresettling their balances and getting prepared for new invest-ments.

P.29 BULGARIAN ALFA FINANCIAL HOLDING BUYS THEBROKER COMPANY EURO-BROKER?!According to unofficial information Kapital got hold of, the ini-tial agreement on taking over 51% of the capital of Euro-bro-ker by the Bulgarian financial group is already reached. Thecurrent owner of the broker house Dragan Lasik, will apparent-ly keep ownership of over 49% of the shares and relatively bigcontrol in managing the company.

P.33 MBI-10 STARTS THE YEAR WITH A FALLIn the first three days of trade in the new year, the index of theMacedonia stock exchange recorded a fall by 1.2 percent. Theshorted stock exchange week did not bring anything spectac-ular in view of the turnover and the stock prices, which isexpected in the beginning of the year.

P.34 WE DO NOT PLAN TO BUY ANY MORE BANKS INMACEDONIAIt is announced that the further capitalization of NovaLjubljanska Banka will be in the amount of EUR 300 million.Which way the capitalization will be conducted and what wewill be the purpose of the provided money? NLB since 2007 underwent further capitalization amountingEUR 100 million.

P.37 AGRICULTURAL CREDITS WITH INTEREST OF 4%Investbanka from Skopje started disposing funds of 8.2 millioneuros that the Government has provided, intended for financ-ing individual farmers and legal entities dealing with agricul-ture.

P.45 PROCREDIT BANK ISSUES THE FIRST CORPORA-TIVE BOND At the end of last year ProCredit Bank issued the first emis-sion of corporative bond. This is the first emission of corpora-tive bonds that a bank in Macedonia has issued. Although issuing corporative bonds is a regular practice in theother economies from the region and wider, it is not the casewith Macedonia, unfortunately.

P.46 MACEDONIA GOT THE FIRST INVESTMENT ADVI-SORS The growth of the potential investors` information about theconditions on the securities market and the monitoring of thestock exchange occurrences are part of the investment advi-sors` responsibilities, who were awarded yesterday diplomasafter the successful completion of the training.

MAKEDONSKO SONCE

P.26 PROFITS MORE ATTRACTIVE THAN RISKSAlthough the end of last year brought certain stagnation, thedomestic capital market is expected to become much moreinteresting both for the potential foreign and home sharehold-ers. Actually, all citizens with free assets at their disposal,instead of putting their money on bank account, can deposit itin shares in a company at their choice, by buying cheaper andselling more expensively, so they will make a profit.

MKIBN20080114-0005E

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