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MILS: News from the FYROM, 97-04-17

Macedonian Information Liaison Service Directory - Previous Article - Next Article

From: "Macedonian Information Liaison Service" <mils@mils.spic.org.mk>


CONTENTS

  • [01] TEXTILE AGREEMENT WITH `EU' DUE BEGINNING OF MAY
  • [02] JOHN KORNBLOOM: `POSITIVE ATMOSPHERE IN GREEK-MACEDONIAN RELATIONS'
  • [03] ELECTRIFICATION OF THE RAILWAY SECTION ON GREEK-MACEDONIAN BORDER
  • [04] `TAT' BANKING SCANDAL: SONJA NIKOLOVSKA TO SUE STATE OVER UNIMPLEMENTED MORTGAGES
  • [05] EPILOGUE TO THE GREATEST `WINE SCANDAL' IN MACEDONIA
  • [06] PARLIAMENTARY DEBATES ON CONDITIONS IN THE HEALTH SECTOR, IN AGRICULTURE AND ON HARD CURRENCY RESERVES
  • [07] NOVA MAKEDONIJA: `LIVESTOCK BREEDING FACILITIES IN ALARMING CONDITION'
  • [08] BETWEEN 30% AND 50% OF OVERALL CAPACITY IN CHEMICAL INDUSTRY USED
  • [09] MACEDONIAN PILGRIMS SAFE AND SOUND
  • [10] `MEDINOVA `97' AWARDS CEREMONY
  • [11] 7TH BALKAN TOURISM FAIR OPENED

    MILS SUPPLEMENT

  • [12] `Credit Goes Belly-Up at First Storm in a Waterglass' (`Vecher' - 16th April 1997)

  • MILS NEWS

    Skopje, 17 April, 1997

    [01] TEXTILE AGREEMENT WITH `EU' DUE BEGINNING OF MAY

    Yesterday the EU and Macedonia ratified the bilateral Agreement on Textile Trade. The Agreement is to provide a completely liberal emerging of Macedonian textile producers on the markets of EU member-states. Thus the processing of semi-finished products in Macedonia will no longer be burdened by quantitative limits, and the problem as regards the obtaining of EU import permits will also be terminated. This Agreement (which is actually part of the Trade Agreement between the EU and Macedonia, due to be signed on 29th) should be implemented as of the beginning of May.

    It has further been assessed that the signing of the Agreement should entail a considerable increase of Macedonian textile export into EU member- states and lower the deficit which exists in this respect so far.

    [02] JOHN KORNBLOOM: `POSITIVE ATMOSPHERE IN GREEK-MACEDONIAN RELATIONS'

    The US State Dept. Under-Secretary for Europe and Canada, John Kornbloom, stated in an interview for Macedonian weekly `Puls' that relations between Greece and Macedonian had come a long way. In addition to this the recent visit of the Greek Head of Diplomacy reflects the factual improvement of relations. In the opinion of Kornbloom there are still many issues to be resolved, especially with respect to the name-issue, though the general impression is that talks are going by in a positive atmosphere.

    [03] ELECTRIFICATION OF THE RAILWAY SECTION ON GREEK-MACEDONIAN BORDER

    As of this Thursday a delegation of `Makedonski Zheleznici' (`Macedonian Railways') is visiting Thessalonica, where it is to engage in negotiations with representatives of `Greek Railways', on the electrification of the railway section from Gevgelija to Idomeni, on the border between both countries. The Macedonian Radio reports that both sides agreed to commence installation procedures towards the close of this month. Greece is to supply material and signals equipment, while Macedonia is to handle its setting up and the installing of the electronic components. Thus this section will no longer represent the clogged railway transportation artery between both countries - and on the trans-European route to Athens.

    [04] `TAT' BANKING SCANDAL: SONJA NIKOLOVSKA TO SUE STATE OVER UNIMPLEMENTED MORTGAGES

    Definite figures on the assets and liabilities of Bitola- based `TAT' bank are to be publicised tomorrow when the NBM is officially forwarding its investigation findings to the Government - Macedonian media report.

    Most recent information broadcast by MTV reveal that the bank's liabilities vary between 100 and 110 million DM, while assets move around 40 million DM (20 million less than initial estimates).

    Another story covered by MTV states that the accused, bank owner and Director Sonja Nikolovska, has submitted a request for her release as conditions did no longer require her arrest. In addition to this the legal counsellour of Nikolovska that his client is to sue the state, as it facilitated the implementation of her bank's demands towards debtors as of 1993 via the closing of 173 mortgages. Thus the `TAT' bank had been damaged by app. 25 million DM. It has also been indicated that between 6th January and 26th February this year a total 30 million DM had been withdrawn - a sum that would have brought most of the major banks in the world to their knees.

    Representatives of the National Bank Clients' Association and the Clients' Association have been received by Finance Minister Taki Fiti, in order to once again underline their demands: the restitution of savings deposits and interest rates concordant to the contracts closed with `TAT', the commencing of restitution as of 22nd this month via a different bank. In the opinion of Chairman Mende Mladenovski the seven-day deadline (in which the Government is to come up with a strategy to achieve this) had begun as of the 15th April (at midnight).

    [05] EPILOGUE TO THE GREATEST `WINE SCANDAL' IN MACEDONIA

    Yesterday the wine cellar of the Veles-based `Lozar' agricultural complex has commenced the export of 500 000 l of wine to `Karanta' of Austria. These days various speculations and theories on this deal have been in circulation, forming the largest `wine scandal' in Macedonia. The affair involved several companies in Macedonia, whereas the final verdict on the matter is to be passed by the Appellate Court in Skopje. Wine which was supposed to the exported via Thessalonica Harbour, has been stopped by the police and filled into other tanks going back to the manufacturer in Veles. In another case wine purchased by a company of Demir Kapija and stored at the `Lozar' facility in Veles, had been claimed by two trade companies: `Adria-Komerc' (Skopje) and `Icotek'.

    After the latter company initiated legal procedures, the export of this wine has been barred. The court decided that the wine belonged to `Adria- Komerc', a firm which could implement the export of 950 000 l of wine to the Austrian partner without any difficulty. The first contingency of 500 000 l (in 17 Greek tanks) is to depart for Thessalonica harbour tomorrow. The Macedonian Radio reported that after a delay of five days, while tanks and the ship in Thessalonica had been paid for, a total of app. 200 000 DM in losses had been generated.

    [06] PARLIAMENTARY DEBATES ON CONDITIONS IN THE HEALTH SECTOR, IN AGRICULTURE AND ON HARD CURRENCY RESERVES

    `I have a clear conscience upon claiming that the health sector is far from a collapse, deficient of chaos and built on a sound foundation. Certain situations are being misrepresented due to personal or party interests. The supply of medicines and medical material has improved, and the tender- approach has saved this sector a total of 10 million dollars...' This is part of the statement given by Health Minister Ilija Filipche at the Macedonian Parliament yesterday, in response to the question aired by Zore Temelkovski (SDSM) on conditions in the health sector and the supply of medicines in particular. Minister Filipche further stressed that he is not surprised by the fervor with which major pharmaceutical suppliers attacked his personal integrity, as well as that of the Health Dept., as they are an integral part of the `pharmaceutical Mafia'. In defence of his suspending the Head of the Clinic Centre in Skopje - Miodrag Vrchakovski - Minister Filipche mentioned that x-ray apparatuses at a price by 250 000 DM than the real cost, outlined in the corresponding tender. In the end Filipche stated that media coverage on health sector issues attempted to destabilise this sector, adding that nobody should have the right to misguide the public.

    Other thematic focuses of the 64th parliamentary session held yesterday were, for example, the question raised by MP Risto Trajkov who wanted to know why the 8-million World Bank loan for furthering the private agricultural sector had not been implemented yet by the corresponding commercial banks. Deputy PM Ljube Trpevski replied that there are problems in terms of complying to World Bank standards, as Macedonian farmers could hardly meet the outlined criteria. In order to remedy this situation - Trpevski stated - a World Bank expert had been asked for advice, adding that the Government wanted to ensure that the loans could be returned by their beneficiaries - and not by the state.

    Veljo Tantarov was interested in finding out who was in charge of the country' s hard currency reserves, where those reserves had been deposited and whether security was being upheld on a corresponding level. To this Finance Minister Taki Fiti replied that the NBM is responsible for the state's hard currency reserves; as well as that they had been deposited at app. 200 of the most renowned banks in the world. This considerably lowered the possibility of these reserves being endangered.

    Rami Tuda wanted to know the number of ARM troops of Albanian ethnic affiliation with a regulated citizenship status, while Ace Kocevski (LP) was wondering aloud why the Denationalisation Act had not been passed yet - and when it would be entered into the Government Agenda. These - as well as many other questions - are to be answered by the corresponding ministers in writing.

    [07] NOVA MAKEDONIJA: `LIVESTOCK BREEDING FACILITIES IN ALARMING CONDITION'

    `Nova Makedonija' reports that over the past two weeks a total of 356 piglets had passed away at a livestock facility at Sveti Nikole, due to a shortage in fodder. The daily further attributes threatening proportions to this state of affairs, as remaining pigs (around 7 000) are facing a similar fate. In the Prilep area, at Dzhaferica, 60 cows starved - and many other livestock facilities in the country are confronted by the same disaster. This confirms the fears expressed by breeders on previous occasions that the shortage of fodder would result in the starving or pre- mature slaughtering of livestock in large numbers. Chances to overcome these conditions are slim, especially in view of the fact that several fodder production facilities are no longer operating. This is the case at Sveti Nikole (due to a lack of resources) and at Shtip, while at Prilep the production capacity has been decreased. The main factors responsible for this situation is the lack of funds to procure some of the basic components (mainly available abroad) and the limited offer of grains by domestic producers. According to `Nova Makedonija' this shortage of fodder in Macedonia has been felt almost every year. The Government is trying to alleviate conditions by facilitating import, but as annual requirements amount to app. 160 000 tons, it is almost impossible to procure necessary funding.

    [08] BETWEEN 30% AND 50% OF OVERALL CAPACITY IN CHEMICAL INDUSTRY USED

    It has been stated during yesterday's session of the Dept. of Chemical Industry within the Macedonian Chamber of Economy that an average of 30% to 50% (and in some cases even merely 10%) of the overall capacity in this industrial branch are being used. A-1 TV reports that executives had also revealed that export had taken a dive by 36%, and revenues had decreased by 22%. The chemical industry in Macedonia consists or around 750 companies, employing more than 10 000 workers. These now face serious problems as regards pay disbursement, social security and the liquidity of companies in general. Inexpensive and low-quality imports only make the situation worse; as does the incomplete privatisation process. It has also been recommended during yesterday's session that a laboratory should be established within the Customs Services, in order to monitor the quality of imported products and improve the protection of domestic goods. This would impose the introducing of Macedonian certificates on product quality.

    [09] MACEDONIAN PILGRIMS SAFE AND SOUND

    In connection to the fire occurring at Myna, in the vicinity of Mecca in Saudi Arabia, the Islamic Religious Community of the Republic of Macedonia has issued a press release which states that all pilgrims from Macedonia were safe and sound as they had never been at Myna. As of yesterday Macedonian pilgrims had been staying at Arefath - where they are to attend festivities marking the first day of the holiday Courban Bayram. On this occasion the Islamic Religious Community of Macedonia also expressed its best wishes to all Moslem worshippers in the country.

    [10] `MEDINOVA `97' AWARDS CEREMONY

    The opening of the international fair `Medicina `97' two days ago, has been followed by yesterday's award ceremony `Medinova `97'. This prize is being awarded for outstanding achievements in the field of medicine over the past year. Recipients included Skopje-based `Alkaloid' (for its new product `Sumetrin'), `BM-Komerc' of Tetovo (for laboratory equipment), `Soniks Aloka' of Skopje (for its ultra-sound apparatus), Slovenian `Iskra Medikal', Austrian `Marvel Helic', `Siemens' of Skopje, `Sutjeska' of Belgrade, Swiss `Donald Trading' and Austrian `Life Science'.

    [11] 7TH BALKAN TOURISM FAIR OPENED

    The seventh Balkan Tourist Fair - attended by 80 tour- operators from Macedonia, Bulgaria, Greece, Turkey, Hungary and SR Yugoslavia - was declared open at the Skopje Fair yesterday. This four-day fair includes many fringe events, such as: presentations on hunting and fishing resorts, on hotel management and gastronomy in general. While opening the fair, Mayor Risto Penov stated that although many regions in Macedonia (particularly Skopje) were abundantly blessed with attractive sights and a large tourism potential, their commercial exploitation remained unfeasible due to lack of appropriate infrastructure. Mayor Penov further stressed that the serious economic crisis and the immediate surrounding affecting Macedonia - entailed a tremendous delay in terms of Macedonia's keeping abreast with global tourism trends.

    The Mayor also expressed the readiness of local institutions to actively participate in all projects contributing to the popularisation of Macedonia's cultural history, as it could attract travellers.

    MILS SUPPLEMENT

    [12] `Credit Goes Belly-Up at First Storm in a Waterglass'

    (`Vecher' - 16th April 1997)

    Towards the close of this January an Agreement outlining the use of a World Bank credit worth 18 million DM (for the development of small and medium- size agricultural businesses) was signed by representatives of the WB and of the NBM. The EBRD credit is to be returned over 20 years, with a grace period of one year and an annual interest rate of 8%.

    14 million DM of this overall sum are to be invested into private (small and medium-size) agricultural ventures, whereas the remaining 4 million are designated for individual producers, i.e. for the furthering of primary agricultural production and an improved placement of products. The Agreement also makes provisions for the reallocating of these funds (should they remain unused) to be used for individual producers. This would increase the initially determined sum of 4 million for this sector.

    Immediately after the signing of this Agreement with the WB, the NBM signed contracts with five commercial banks (`Makedonska Banka', `Stopanska Banka', `Komercijalna Banka', Tutunska Banka' and `Radobanka'), which are to allocate these funds. At that time Agriculture Minister Nikola Parakeov thought this to be an ideal basis to ensure access to funds rightaway.

    Contrary to all announcements, however, the latter has hardly been the case so far - the entire credit appears to have gone `belly-up'. The main impediment appears to be the routine prerequisite that beneficiaries of a loan need to submit a project illustrating the use of requested funds. Should the bank approve a project, it is being forwarded to the NBM which is also `to give its blessing' - as is the case with the ultimate instance: the World Bank. Should the `thumbs-up' have been obtained by all three, the World Bank is allocating funds and forwarding them in tranches (not the whole pile straight-away).

    So far not one single project has made it to the NBM, not to mention the WB. Where does this leave any type of implementation? The Agriculture Ministry entertains the view that WB funds should be made available ASAP, particularly those intended for individual farmers who need the `moneys' more than anything. The commercial banks, however, are taking their time and the main shortcomings have been found with - the farmers...

    We have been informed by these banks that the main difficulty lay in evaluating the assets of farmers according to WB standards. In comparison to developed countries where all property is entered into data bases, the individual farming sector in Macedonia is far from being homogeneous. This complicates all procedures connected to the approval of a project. The banks have nevertheless announced that `winds would become more favourable in the near future'. The actual arrival of WB funds still seems to be obstructed by entire oceans.

    `Sowing Has Started, But Channels Are Dry' Today the annual rice sowing has started, at the largest rice production region of Macedonia. Initial expectations within this sector will not come to fruition. Most likely the same will apply to their `revised version'... This is to be attributed to the general scientific truth `no water, no rice' - and water of the primary irrigation and channel net of the `Bregalnica' system will not make it to the rice paddies this year, as maintenance of it has been close to zero. Thus rice is only to be planted at those paddies close to bodies of water.

    There is more than enough water at Kalimanci, Gratche and Ratevo... but then water has never been the problem - money has. The water can not be conducted to rice paddies and other sown surfaces as the primary and secondary nets of irrigation channels have not been refurbished. In order to do this, funding is needed, and so far the only source has been the imposing of irrigation charges. Of these 91.2% have not been paid by users, says the Director of the `Bregalnica' Water Supplies facility, Dimche Dimkov.

    Bills for this charge (`vodarina'), including the covered surface, the species cultivated on it and the cost, had been sent out as early as last October. Forwarded objections had revolved around incorrect data on the covered surface, but on around the cost. Still funds are trickling in incredibly slowly.

    `As we lack funding, we have been notifying users as early as the end of March that we will be forced to reduce the planned scope of the irrigation system to a mere 1 629 hectares - compliant to our limited possibilities. There has been no feedback, though user representatives were in favour of finding a solution to this issue', Dimkov explains.

    `In spite of the successful implementation of the programme in 1996 by Bregalnica, the gathering of charged fees has been deplorable, especially in the case of individual farmers', says Blagoj Levkov - in charge of this region (the Kochani municipality) at the Ministry of Agriculture, Forestry and Water Supplies. Thus the company is quite understandably unable to refurbish the system, and therefore dependent on natural bodies of water.

    In order still ensure the implementation of the initial programme all stakeholders within the Kochani region (incl. the newly-established municipalities) have been mobilised. Concrete solutions, however, have not been found yet. Thus `Bregalnica' has introduced the option to pay the charge of 12 000 denars per hectare in installments. Of these the first still has to be submitted rightaway, Levkov explains.

    For rice farmers even this option is unfavourable, as they do not have any money whatsoever. The waste products are not being bought, and the price of white, processed rice has taken a steep plunge down to 30 denars per kilo... and still there is nobody to buy it at even this price. Thus `payments in kind' are being offered (40 kg. rice for one decare of irrigated land).

    `We are not in the position to accept this kind of settlement, as we do not have any storage or peeling facilities - or the possibility to sell the products.

    Everything in this respect would be a high-risk undertaking', states the Head of `Bregalnica', while adding that `we have asked the Ministry to intervene, i.e. the Directorate of National Reserves, in terms of accepting certain amounts. Thus users would be given an amount of funds with which they could settle their dues, and we could refurbish the irrigation system. The issue remained unaddressed, however... so that this year - in spite of having enough water - the system will not function, and the fields will remain dry.'

    (end)

    mils news 17 April 1997


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