M acedonian B usiness M acedonian B usiness

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M âcedonian B ûsiness M âcedonian B ûsiness

EstablishEd 2001 No. 160 – Vol. XVi, 2016

With support of the Macedonian Ministry of Foreign Affairs Published monthly by MIC Page 2 >

GERMAN “AKOMPLAST” TO BUILD A PLANT IN PRILEP

T he cornerstone for the construction of the plant of German Company

“Akomplast” was laid in the Technological Industrial Development Zone Alinci. It is an investment worth three million euro and will create 150 new jobs.

The facility, which should be completed in the summer, will manufacture modern car parts for export on the European market and for major automotive brands such as “BMW”, “Daimler” “Audi”, “Volkswagen” “Mercedes”, “Bentley”, and

“Jaguar”.

“Akomplast” representative and manager of their company formed in Macedonia “Injection Holding Prilep” Ines Andre stressed that the decision to invest in Prilep was adopted because they were offered the best conditions, support from the municipality, well-educated staff and Government’s openness to cooperation.

Minister for Attracting Foreign Investments Bill Pavleski stressed in his address that Macedonia received another member in the family of foreign companies in the automotive sector. Macedonia was chosen as new business destination, from several countries in the region, given the favorable business climate, quality workforce and excellent infrastructure.

-With this investment, Macedonia acquired another trusted and reliable procurer of high-quality products that are used in the automotive industry and will enable us to attract company carmaker in order to complete the whole process of production, which is our final goal - stressed Pavleski.

ROAD INFRASTRUCTURE

T

he overall road network of the country totals 13,278 km of roads, with continuous investment in roads in accordance with the National Road Transport Strategy, prepared by the Ministry of Transport and Communications with assistance from the EU.

New projects and network maintenance are carried out according to the Public Investment Program annual updates. The backbone of the country’s road network consists of the two Pan- European corridors VIII and X.

The Railway infrastructure in the Republic of Macedonia has been put in place since 1873, when the first Railway Track from Skopje to Thessaloniki in Greece has been constructed. Today the railways network is about 900 km in single track lines and normal gauge. Macedonian railway network system is connected north-south with the railway network systems of Serbia and Greece. The total length of the railway infrastructure in Corridor 8 (east-west) is about 306 km on the territory of the Republic of Macedonia and 154 km (or 50%) are constructed and operational.

Therefore, about 89 km or 29% of the total length are remaining to be constructed on the link with Bulgaria.

INVEST IN MACEDONIA – NEW BUSINESS HEAVEN IN EUROPE

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M ac ed on ian inf or M at io n c en tr e

No. 160, Vol. XVI, January 2016

Director Dragan Antonov

2001-2016 © MIC, All rights reserved No parts of this publication may be reproduced in any form without permission form the Macedonian Information Centre. The content published in the Macedonian Business Monthly do not necessarily represent the views of the publisher. The publisher is not liable for errors.

Address

Naum Naumovski Borce 73 1000 Skopje

Republic of Macedonia Phone/Fax

+389 2 311-78-76 +389 2 311-78-34 www.micnews.com.mk contact@micnews.com.mk mic@micnews.com.mk

page 5 

FORBES RANKS MACEDONIA 39TH FOR DOING BUSINESS

page 8 

X-TRADE, NEW FOREIGN

INVESTMENT TO ENTER SKOPJE

page 11 

ONLY 0.2 PERCENT UNSOLVED CADASTRE CASES

page 14 

HOTEL KEEPING TO FLOURISH THIS AND NEXT YEAR

page 16 

SOLVING THE PROBLEM WITH THE LENGTH OF SERVICE FOR FARMERS

IN Side

ROAD INFRASTRUCTURE

Continued from page 1

T

he overall road network of the country totals 13,278 km of roads, with continuous investment in roads in accordance with the National Road Transport Strategy, prepared by the Ministry of Transport and Communications with assistance from the EU. New projects and network maintenance are carried out according to the Public Investment Program annual updates. The backbone of the country’s road network consists of the two Pan-European corridors VIII and X.

The Railway infrastructure in the Republic of Macedonia has been put in place since 1873, when the first Railway Track from Skopje to Thessaloniki in Greece has been constructed. Today the railways network is about 900 km in single track lines and normal gauge. Macedonian railway network system is connected north-south with the railway network systems of Serbia and Greece.

The total length of the railway infrastructure in Corridor 8 (east-west) is about 306 km on the territory of the Republic of Macedonia and 154 km (or 50%) are constructed and operational. Therefore, about 89 km or 29% of the total length are remaining to be constructed on the link with Bulgaria. About 63 km or 21% of the total length on the link with Albania remain to be constructed. The railway transport is managed by the public owned “Macedonian Railways” and at present, the company is the only provider of railway services in the country.

There are two international airports in Skopje and Ohrid.There are regular direct connections to several larger European transport centers.Turkish “TAV”

is the new operator and manager of the Macedonian airport system since 2008, after receiving the right to a 20-year concession from the Macedonian government. Under the concession agreement, “TAV” is to modernize the international airports Alexander the Great in Skopje and St. Paul in Ohrid, and to build a new cargo airport in Shtip.

Macedonian Business Monthly Founded in 2001

Editor

Sonja Kiridzievska

Translator

Ema Trenevska

Contributor

Sonja Efremova

Published monthly in the

Republic of Macedonia

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REASONS TO INVEST IN MACEDONIA

IT AND FREE HEALTHCARE ZONES – Government adopted laws that anticipate creation of IT zones within the technological industrial development zones, separated with a fence, and regu- lated with special projects. Certain steps are being undertaken and projects are being prepared for developing the IT zones given the increased interest.

ExpORT OF TExTILE pRODUCTS – The garment industry in Macedonia exports mainly to EU countries. 93 percent of the production is organized by the CM or CMT (Cut, Make& Trim) system for foreign markets. Full production and own brand production is partly exported and the rest is placed in the domestic market.

THE pROJECT FOR LAND pURCHASE – As of 2009, is possible for the land purchase to be realized under favorable conditions with a discount of 30% if the companies pay it in cash at affordable price.

So far, more than 2,500 companies have used the opportunity for land purchase under the Government Project launched in 2009, and such support and assistance to the business community will continue.

AGRICULTURAL LAND – INVESTMENT OppORTUNITY – The Ministry of Agriculture, Forestry and Water Economy as an authorized body has intensively been distributing agricultural land of good quality which is in state ownership, that is granted under lease (for use during the period of several years) to the interested investors, including foreign entities with established branch offices in the Republic of Macedonia.

TExTILE INDUSTRY – With a long, rich tradition in clothing and textiles, this sector is the second largest export industry in Macedonia.

The competitive export advantages include short delivery periods, flexibility of delivery size together with exceptional value for money.

In addition to garments, there is manufacturing potential for cotton thread and fabric, wool yarn, fabric and knitted fabric.

RIGHT TO pRIVATE OWNERSHIp AND ESTABLISHMENT – The Constitution of the Republic of Macedonia guarantees an investor’s right to property. No person may be deprived of his/her property or the rights deriving from it, unless the use of that property affects the general welfare of the public.

WHY INVEST IN AGRIBUSINESS IN MACEDONIA? – Chal- lenges Opportunities the agriculture production and agribusiness sector are the most important economic sectors of Macedonia.

Almost 435.500 people, out of a population of 2.1 million, make whole or part of their income from agriculture activities. The great natural preconditions and an existing tradition enriched with newly developed skills create a variety of opportunities in agriculture, from high mountain pastures of over 2000m high, to the rich water valleys with a Mediterranean climate.

CONSTRUCTION COSTS – Numerous Macedonian construction companies can build factories quickly to international standards and at the most competitive prices in Europe. The average cost of constructing a factory building shell is between €170/m² – €210/m². The sale price of state-owned construction land for industrial and production facilities varies depending on the location, from €5/m² to €40/m².

MACEDONIA – A BUSINESS SUppORTIVE ENVIRON- MENT – Given the need for speed in today’s global marketplace, Macedonia is fast becoming a major European service and distribution hub. You can set up a company here in just four hours! The World Bank “Ease of doing Business 2014” report shows that Macedonia is a regional heavyweight and 25th country in the World. Macedonia has also had a positive Forbes review coming 36th in a ranking of

“Best Countries for Business.

ExpORT pROMOTION STRATEGY – In the process of preparation for the exports, the companies need to conduct a research that will help them choose a market which will contribute to the maximization of the benefits and minimization of the risks. The same research will also help the managers decide not only on the markets to enter but also on the modes of entry.

ExCELLENT INFRASTRUCTURE – Macedonia is at the crossroads of South Eastern Europe, which makes it an ideal transit and distribution center for products for European markets. The developed road and railway infrastructure, in combination with the small area of the country enables access to every inhabited place in Macedonia in less than 3 hours. The Railway infrastructure in the Republic of Macedonia has been put in place since 1873, when the first Railway Track from Skopje to Thessaloniki in Greece has been constructed. Macedonian railway network system is connected north-south with the railway network systems of Serbia and Greece.

LABOR LEGISLATION – The recently enacted new Labor Law, prepared in accordance with the EU standards, provides increased flexibility of the labor market by offering and promoting flexible and different employment contracts and flexibility of working time.

Also, reforms in this sphere have introduced training programs, support for entrepreneurs, as well as improvement of the overall business climate. The average gross monthly salary in 2013 is

€502. This amount includes the net salary, personal income tax and social contributions for pension and disability insurance, health insurance and employment insurance. The minimum salary for each professional branch is defined by Collective agreements.

FREE HEALTH ZONES – Health tourism, attracting foreign capital to introduce new health methods and procedures, transfer of new technology, increased competitiveness, employment and quality of the higher education offer in the field of medicine are part of the benefits expected from the establishment of free health zones. The whole concept is designed to establish a health zone over a greater territory which is likely to be in Skopje on 15–20 acres for hospitals founded and built by foreign companies.

INCREASED SUBSIDIES FOR TOURISTS FROM SERBIA, BUL- GARIA AND BOSNIA AND HERZEGOVINA – The Government decided to increase the amount of subsidies for attracting tourists from Bosnia and Herzegovina, Serbia, and Bulgaria from 25 to 35 euro per tourist. Subsidies for tourists from 6 other states i.e. the United States, England, Germany, Kazakhstan, Azerbaijan and Qatar are announced for 2015.

THE SOFTWARE INDUSTRY HAS EMERGED AS ONE OF THE MOST DYNAMIC SECTORS – In recent years, the software industry has emerged as one of the most dynamic sectors of the Macedonian economy. With a growth rate of 7.7% in 2009, the Macedonian software industry outran the development pace of the overall economy and became an engine for growth, innovation and competitiveness.

Like several other transformation countries in South East Europe, Macedonia has discovered the strategic importance of the software industry and its enormous potential for exports.

MODERN DIGITAL TELECOMMUNICATIONS NETWORk – The Macedonian Information Technology market has marked another significant growth in 2009 of 7.7%, reaching $164.5 million. Over the five-year forecast period, the country’s IT market is expected to expand at a compound annual growth rate (CAGR) of 5.2%, and reach $212 million in 2014. Hardware is the largest and most dynamic segment of the Macedonian IT market, with a striking yearly growth of 84.7%, taking up nearly 62% of the total IT market.

FREE MARkET ACCESS – Duty-free access to a market of over 650 million customers through three multilateral (SAA, EFTA and CEFTA) and two bilateral (Turkey and Ukraine) Free Trade Agreements.

EUR 500,000 IN STATE AID FOR INVESTORS IN INDUSTRIAL ZONES – Up to €500.000 can be granted as incentive towards building costs depending on the value of the investment and the number of employees. Land in a TIDZ in Macedonia is available under long-term lease for a period of up to 99 years.

400,000 EURO INVESTMENT – THE ROAD TO OBTAINING MACE- DONIAN CITIZENSHIp – Foreign nationals who are residents of the EU and OECD countries and have purchased real-estate (house or flat) in Macedonia in an amount of over 40,000 euro will get the chance to be immediately granted one-year stay in the Republic of Macedonia.

LOW TAxES – Flat corporate and personal income tax rates at 10%; 0% tax on retained earnings.

LOW OpERATIONAL COSTS – One of the most cost-competitive locations in Europe.

ExCELLENT GEO-STRATEGIC pOSITION – Goods delivered within a day to Central and Eastern Europe and Turkey, and maximum two days to Western Europe.

FAST COMpANY REGISTRATION – One-stop-shop system for company registration within 4 hours.

ExCELLENT INFRASTRUCTURE – Wireless national backbone infrastructure, digital telecommunications system, extensive highway network, two international airports with regular connections to main European transportation centers.

RESpONSIVE EDUCATIONAL SYSTEM – Universities willing to collaborate with incoming investors in meeting the required skills.

ExCELLENT FOREIGN LANGUAGE SkILLS – English widely spoken, French and German embedded in the education system, regional languages in wide use.

AVAILABLE SkILLED WORkFORCE – A young (42% under the age of 30) and educated workforce with a strong work ethic and excellent industrial relations record.

in ve St M en t cl iM at e

B

ritish Company “Endava” employed over 100 full time IT professionals in their representation office in Skopje. This Company anticipates that the number of employees will reach 400 in the next three to four years.

-We are excited to be part of Endava’s successful story of exploring innovations especially on the competitive IT market.

We work with well-known figures in full expansion of industries and we are certain

that our staff is the driving force of developing personal careers. Also, we change the traditional approach to new technologies, said Andrew Brown, manager of the delivery center in Skopje.

According to British Ambassador Charles Garrett, this British Company is very successful in Macedonia.

-I hope that “Endava” will continue to contribute to the development of the

IT sector in Macedonia and in the wider economy of Macedonia, stressed Garrett.

Skopje Office was opened in 2014 and expanded the same year in November.

“Endava” is a private company for IT services with more than 2,500 employees and offices in New York, Atlanta, New Jersey, London and Frankfurt and has six delivery centers in Romania, Moldova, Macedonia and Serbia.

BRITISH COMPANY “ENDAVA”

EMPLOYED OVER 100 IT PROFESSIONALS

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Ba n Ki n G L

ast year was hard, unstable, and uncertain and affected the bank sector. In addition, the political risks and culmination of the Greek debt crisis significantly reduced the anticipations for bank credit and deposit growth. Banks preferred citizens to companies for crediting. In the first 10 months, citizen’s loans increased for 11 percent, while company loans for 1.2 percent. Besides the slow growth, deposits marked an increase of 4.4 percent in November. The National Bank expects that 2016 will be a difficult year, but the bank sector will remain stable.

In 2015, the National Bank introduced several extraordinary measures and conditions. At the beginning of the summer, in the midst of the Greek debt crisis, the National Bank introduced safety measures in order to prevent increased cash flow. By the end of August, banks were liberated from compulsory deposit reserves for natural persons with over one year validity, in order to stimulate long- term savings. Banks found this measure very satisfactory.

Contrary to the low scope of credits for companies, consumption loans increased reaching two-figure rate and at the same time their payment was late so, banks had to slowdown the pace. Therefore, the National Bank of the Republic of Mace- donia introduced restrictive measures, not increasing the interest rates for consumption loans.

The interest rates of deposits and credits reached the lowest level in history. The basic interest rate for last year was 3.25 percent, and banks don’t expect it to increase this year.

Foreign risks are gradually reducing and we surpassed the danger for entering the debt crisis, showed the National

Bank at the end of 2015, when it decided to cancel the safety measures, given the positive balance of payments, and cash flow to Greece.

Still, this year the National Bank expects gradual inflation growth of one and a half percent given the increased food, energy and oil prices.

A

ccording to the monthly report of the Macedonian Stock Exchange for December, the most traded shares are of Komercijalna Banka (254 transactions), Alkaloid (125) and Granit (100).

Most traded shares for this period are the shares of Makedonijaturist, Fersped,

Prilepska pivarnica, Makpetrol, Make- donski telekom, TTK Banka and Replek.

The highest average growth of share price in December was marked by Tikves winery with 36.84 percent increase.

MACEDONIA WILL CONTINUE TO HAVE STABLE BANK SECTOR IN 2016

Foreign risks are gradually reducing and we surpassed the danger for entering the debt crisis, showed the National Bank at the end of 2015, when it decided to cancel the safety measures, given the positive balance of payments, and cash flow to Greece

THE MOST TRADED SHARES ON THE MACEDONIAN STOCK EXCHANGE IN DECEMBER

STRUCTURE Of RESTRUCTURED CORPORATE LOANS, BY ACTIVITY

in percentage in millions of denars

10.1

10.4 20.3

19.0

10.6

10.3

8 10 12 14 16 18 20 22

0 3,500 7,000 10,500 14,000 17,500

12.2014 3.2015 6.2015

Industry (left scale)

Construction and real estate activities (left scale) Wholesale and retail trade (left scale)

Electricity, gas, steam and air-conditioning (left scale) Other activities (left scale)

Share of restructured in total loans to „industry“ (right scale)

Share of restructured in total loans to „construction and real estate activities“ (right scale) Share of restructured in total loans to companies (right scale)

Source: NBRM’s Credit Registry, based on data submitted by banks.

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ec o n o M Y

T

hirty-some investments announced opening of over 17,000 work places.

That was the epilogue in the rat race of investors in 2015. According to experts, last year was the best investment year for Macedonia. Most of these companies already started operating and some of them signed investment agreements and are getting ready for starting with their production.

Germany’s ODW Elektrik started operating in an existing facility while is constructing a plant in the economic zone in Ohrid. KSS works as brown-field in Kicevo and their new plant will be finished this summer. Diatec, Technical Tex- tiles and the second plant of TeknoHoze started operating as well. Gentherm in

Prilep started employing staff for the new plant that will be finished in March. US Lear Company is constructing a plant in the economic zone in Tetovo and started with production in an existing facility in Gostivar.

Marquardt in Veles, Antura and Am- phenol in Kocani and Cap-Con in Sko- pje also started with their production.

Several other companies have already signed agreements and will start operating this year.

US Delphi will invest in the economic zone in Skopje, Johnson Controls signed an agreement for constructing a second plant in Strumica. German Company Kostal is preparing to invest in the economic zone in Ohrid.

German Company Akomplast in Prilep will start the construction of their plant;

Italian Company Condevo is constructing a plant in the economic zone in Stip, while Italian Company Montante Group is preparing to invest. Agreements for investment realization have been signed with the first two domestic companies, High-tech and Te-Te Plast which plan to employ a total of 500 people. This positive trend will continue. It was announced that by the 15th of January several new investments will be presented, one of them will be realized in Veles and anticipates to employ 1,000 people. It is expected that this year, 35 new investments will be realized in Macedonia.

M

acedonia is ranked 39th on the list of the best countries for doing business that the business magazine Forbes published toward the end of last year. According to that tanking, of the countries of the region, Macedonia is ahead of Serbia, Albania, Bulgaria, Croa- tia, Montenegro and Bosnia and Herze- govina.

Denmark ranks first. This country has one of the highest tax packages in the world in exchange for its broad services in a largely market-based economy.

Forbes ranks 144 countries in the world by 11 criteria including: right to property, innovations, tax, technology, corruption, freedom (personal, financial, market), and protection and security of investors.

2015 WAS THE BEST INVESTMENT YEAR

According to experts, last year was the best investment year for Macedonia. Most of these companies already started operating and some of them signed investment agreements and are getting ready for starting with their production

fORBES RANKS MACEDONIA 39TH FOR DOING BUSINESS

Source:

http://www.forbes.com/places/macedonia/

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ec o n o M Y T

extile firms are having a good start this year. Toward the end of 2015, they took foreign orders until the end of April for the next summer season and the making of the ordered products is underway.

Aside from the traditional partners from the Western European countries, in recent months many companies from Turkey, redirecting themselves toward Macedonia and other closer markets due to the blockade of the Russian market, have taken a keen interest in cooperation.

According to the President of the Customers Organizations and owner of the textile firm Moda of Sveti Nikole, Angel Dimitrov, in addition to being interested in striking cooperation with Macedonian partners, Turkish firms are also interested in making investments in the textile sector.

“However, the problem is that they are interested in opening companies for production of large amounts of textile for export, for which they need at least 600-700 employees, and they cannot find that many workers in Macedonia. A considerable number of textile workers

are already employed in the numerous factories across the country. On the other hand, the young are not at all interested in getting employed with our textile factories chiefly because of the low wages,” says Dimitrov.

He also explains that unlike from before, recently European partners have been placing increasingly more orders for the so-called boutique goods. This means production of two or three designs of clothes in four colors and 10 sizes.

TEXTILE fIRMS MAKE GOOD START

According to the President of the Customers Organizations and owner of the textile firm Moda of Sveti Nikole, Angel Dimitrov, in addition to being interested in striking cooperation with Macedonian partners, Turkish firms are also interested in making investments in the textile sector

A

n increase in crediting of enterprises was recorder on the market in No- vember 2015. In the last report of the National Bank of the Republic of Mace- donia it was noted that the overall loans in November increased for 7.9 percent, surpassing the October projection for the fourth quarter by 7.7 percent. Regarding September, the total credits increased for 37.2 percent from the anticipated growth for the fourth quarter.

According to NBRM, the crediting structure in November registered a growth in crediting of enterprises compared to the significant decrease in the

previous month and continued increase in household loans with moderately weakened dynamics compared to the previous month. November included the projected crediting growth for the fourth quarter, of nearly 40 percent, was realized. The realized annual growth of overall loans was a result of the increase in denar loans, while foreign currency loans registered a decrease at an annual basis.

In November, the participation of dysfunctional loans moderately dropped compared to the previous month, stand- ing at 11.2 percent. According to the published report, growth was also regis-

tered in deposits, as a result of the growth of household deposits by 42 percent mainly in foreign currencies. Deposits in the corporative sector continue to grow but have slightly slowed down compared to the previous month.

At an annual basis, overall deposits in November increased by 6.5 percent. The report reads that there was a gradual economic growth in the third quarter in line with the October projection. Construc- tion was the leading sector and in terms of demand, the growth’s structure showed that domestic demand was the key driver of economic growth.

NBRM: CREDITING Of ENTERPRISES INCREASED

At an annual basis, overall deposits in November increased by 6.5 percent

VALUE Of TEXTILE AND APPAREL PRODUCTION & AVERAGE SALARIES IN TEXTILE INDUSTRY

0 100 200 300 400 500 600

1954 1959 1964 1969 1974 1979 1984 1989 1994 1999 2002

Values in $

0 50 100 150 200 250 300 350 400 450 500

Millions of dollars

Average salaries in textile industry

Value of Textile and Apparel Production

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ec o n o M Y

T

he contribution of direct investments to GDP is reduced. In the period July-September 2015, 169.8 million euro were invested in Macedonia which is 30 million more compared to the same period last year, but its contribution to GDP in the third quarter is several times lower compared to the contribution registered in the second quarter. According to economists, figures show that Macedonia is in a worse position than Montenegro and Serbia and is leveled with Kosovo.

– The GDP contribution shows that it is a matter of activities that don’t influence the GDP and aren’t productive, which left the country or reduced their capacity, said Zoran Vitanov from the As- sociation of Managers of Macedonia.

Government is satisfied with the improved conditions for starting a business and with the facilitated conditions for attracting foreign investments. In 2015, thirty companies decided to invest in Macedonia and in 2016 this number is expected to increase.

Foreign investments are one of the pil- lars of Government’s economic policy, numerous road shows are being organized and there is opening of new technological zones, but the amount of subsidies, spent for direct and indirect support of facto-

ries which boost the domestic economy, is still uncertain.

– The cost effectiveness is at stake because most of them use subsidies, so the total net effect should be calculated and correct this policy, considers university professor Saso Arsov.

Most of the investments come from Saint Vincent and Grenadines, Germany and Switzerland, and the highest contribution to GDP, 8.3 percent, was registered in 2007.

T

he feasibility study on the Ilovica gold and copper mine shows how economically stable the project is, says the management of Euromax Resources, the company that owns the mine.

“With a life span of 20 years, this is an important project for Macedonia that can strengthen the country’s economic profile. The massive support that we

keep getting from all stakeholders enables us to firmly move toward our set goal of launching construction toward the end of this year,” says Steve Sharp, president and CEO of Euromax Resources.

The implementation of the Ilovica project is set to begin in the third quarter of 2016. The administrative activities for developing studies and taking out a

building permit are underway. Estimates are that the mine’s life cycle will be 20 years. The annual capacity is 10 million tons and the average annual chargeable production is estimated at 83,000 ounces of gold and 16,000 tons of copper.

ILOVICA PROJECT TO KICK Off IN SECOND HALF OF 2016

The annual capacity is 10 million tons and the average annual chargeable production is estimated at 83,000 ounces of gold and 16,000 tons of copper

LOW INVESTMENT CONTRIBUTION TO GDB

Government is satisfied with the improved conditions for starting a business and with the facilitated conditions for attracting foreign investments. In 2015, thirty companies decided to invest in Macedonia and in 2016 this number is expected to increase

GROSS fIXED CAPITAL fORMATION

0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000

2013 2014

Equipment Construction Other

million denars

Source: State Statistical Office

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ec o n o M Y

X

-Trade is an international company working in the field of online trading on the global foreign exchange market and this company entered Macedonia in mid-January and started operating in Skopje, anticipating engaging hundred highly educated young persons.

Foreign Investment Minister Jerry Naumof stressed that this investment

will help reduce the unemployment and will preserve the highly educated young people in the country. He stressed that employees will be trained and well paid.

The entire investment realization took less than a year.

Sheila Campagnano, representative of the international company, stressed that three months after registering the

company they started operating in Mace- donia. They already engaged and trained 32 persons, out of the 100 anticipated ones. Campagnano stressed that they also considered other countries, but eventu- ally decided to invest in Macedonia. The Company will operate on the French, English, Slovenian and Italian market.

M

ore than 500 Macedonian companies directly cooperate with foreign investors. This cooperation increases the work of domestic companies, they get transfer of knowledge and are introduced to new technologies and standards, their competitiveness increases and they have the opportunity to export on foreign markets. The increased cooperation between foreign investors and domestic companies will be the priority of the Council of Foreign Investors this year.

Irena Jakimovska, Vice President of the Council, stressed that foreign investors not only contribute for increasing the competitiveness of domestic companies and boosting the export and bolstering new employments, but also carry out new practices, introduce technological innovations and knowledge and have more efficient corporative management.

“Foreign investors are interested in finding local suppliers to satisfy their needs instead of importing ones from abroad”, stressed Jakimovska highlighting that the number of Macedonian companies that cooperate with foreign direct investors continuously increases.

She said that local suppliers are more stable, more flexible and swiftly adjust to the demands of the foreign partners. On

the other hand, foreign companies enjoy other benefits from the cooperation with domestic companies - they have lower procurement expenses and swift delivery time.

Some of the recommendations for improving the cooperation between foreign investors and local supplies presented by the Council of Foreign Investors are:

creating unified and integrated online database of domestic companies which

are potential supplies, initiating regular business meetings, detecting the existing problems and eliminating the red tape procedures for the supplies when operating and entering the free economic zones, engaging international consultants and providing technical support to domestic companies for improving the quality of work, active inclusion of banks and financial institutions for securing favorable credits.

OVER 500 DOMESTIC COMPANIES COOPERATE WITH FOREIGN INVESTORS

Some of the recommendations for improving the cooperation between foreign investors and local supplies presented by the Council of Foreign Investors are: creating unified and integrated online database of domestic companies which are potential supplies, initiating regular business meetings

X-TRADE, NEW fOREIGN INVESTMENT TO ENTER SKOPJE

ASSESSMENT Of THE PRESENT PRESENT fINANCIAL SITUATION AND EXPECTATIONS fOR ORDERS AND NUMBER Of EMPLOYEES IN THE NEXT 3 MONTHS

0.0 5.0 10.0 15.0 20.0 25.0 30.0

Assessment of the present financial situation Expectations for the orders from domestic and foreign suppliers during the next 3 months Expectations for the number of employees during the next 3 months

Balance %

IV'13 I'14 II III IV I'15 II II IV

Source: The State Statistical Office

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en er G Y

I

talian construction company “Con- dotte” will build four small hydropower plants in Macedonia, an investment worth 19 million euro, money which will directly enter the Macedonian energy sector.

CEO of “Condotte”, Duccio Astaldi informed that they consider expanding their capacities in Macedonia, given the favorable conditions for leading a business.

– We are particularly pleased with the framework prepared by the Macedo- nian Government for foreign investors, stressed Astaldi, adding that “Condotte”

is interested to further invest in Mace- donia.

Economy Minister Bekim Neziri informed that the hydropower plant on River Estericka near Probistip is completed and is expected to start operating in the winter, while the other three plants - two stations on River Zrnovska in the Kocani area, and one on River Kadina in Skopje region, are in different stages of construction.

– The “Condotte” investment will engage many local companies and will contribute for reviving the local economy, and it is very encouraging that even though the company is investing only 19 million euro, it is a potential investor that will continue investing in Macedonia, stressed Minister Neziri.

Condotte officials also discussed about reviving the hydropower plants “Cebren”

and “Galiste” and the road Skopje-Blace.

The Italian construction company is one of the leading companies in the world and entered the Macedonian market two years ago. It has 130 year long tradition in infrastructure projects all over the world and makes annual turn- over of 1.2 billion euro.

“Condotte” is receiving so called feed- in tariffs from the state, the same as the remaining 64 concessioners in Macedo- nia. The ultimate goal is production of power from renewable sources and enabling Macedonia to get cheaper electricity in medium-term.

C

ompanies can reduce their energy expenses up to 30 percent if they invest in energy-efficiency projects. For three years now, USAID program helps Macedonian Companies to invest in such projects, as well as in installing systems for monitoring and managing the energy consumption. Depending on the scope and type of production, this way Com- panies reduce their expenses and increase their profit.

Industrial Companies pay 20 to 60 thousand euro annually for energy- efficiency. Some of their expenses are covered by USAID, and this project for introducing systems for energy saving was implemented in 17 manufacturing plants.

This project will be implemented for another year and will costs 1.6 million dollars, and anticipates preparation of studies for changing the production fuel, exploiting waste heat, thermal isolation, and selection of equipment and systems for heating and cooling.

ITALIAN COMPANY “CONDOTTE” IS BUILDING HYDROPOWER PLANTS IN MACEDONIA

“Condotte” is receiving so called feed-in tariffs from the state, the same as the remaining 64 concessioners in Macedonia. The ultimate goal is production of power from renewable sources and enabling Macedonia to get cheaper electricity in medium-term

UP TO 30 PERCENT ENERGY SAVINGS

SHARE Of THE NUMBER Of HOUSEHOLDS WITH BUILT-IN INSULATION IN THE TOTAL NUMBER Of HOUSEHOLDS, by regions

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tr a n SP o rt A

n investment worth 600 million euro will entirely change the image of the Macedonian railway. New passenger trains were procured to Macedonia, and freight coaches will also be imported, new rails will be constructed and the old ones will be reconstructed, black points will be fixed and railway stations will be reconstructed. Citizens will be offered high standard service, exporting companies will have new business opportunities for expanding their business, the rail traffic will gradually improve and become recognizable. For thirty years we haven’t had such a capital investments in the railways.

The new passenger train with a capacity of 200 passengers was procured from China in line with highest European standards, and was promoted last year.

This is the first out of the six passenger trains that Government ordered from Chinese CSR Corporation which will start operating in regular traffic in Janu- ary. This capital investment is worth 25

million euro, secured through the Euro- pean Bank for Reconstruction and Devel- opment. All six trains will be imported by April, which will cover 60 percent of the train lines in Macedonia. Government is reviewing a plan to procure new trains in order to cover the entire rail network. Ef- forts will be made to procure new trains

in 2017, with the help from EBRD. At the same time railway stations are under reconstruction. The reconstruction of Skopje railway station is worth 2.6 million euro, and stations in Veles and Prilep are also being reconstruction after 42 years.

T

he steady oil price drop is not going to have any major effect on the people’s budgets this time either. Aside from petrol stations, the effects of the price decline are not to be felt elsewhere. The low oil price, however, does have a positive effect on the performance of the firms whose production and transport costs are closely related to the oil price. Neverthe- less, despite their lowered costs, these businesses hardly ever decide to lower the costs of their products and services.

The low petrol price benefits most transport companies but at the moment they are not considering cutting their fares. They explain that their fares are affected by the decrease in the number of passengers considering private transporters are not yet included in the government free transport projects.

International transporters do not expect the lower oil price to lower the price of their services yet competition, they say, may have a dramatic effect on how much

they charge. Our transporters will have to adjust to the situation on the market, says Biljana Muratovska from MAKAM- TRANS.

Economists comment that if businesses follow the economic logic, wherever oil plays a significant role in production, prices should also be expected to fall, yet they also agree that businesses react to what their market competition does.

RAILWAY MODERNIZATION

The new passenger train with a capacity of 200 passengers was procured from China in line with highest European standards, and was promoted last year. This is the first out of the six passenger trains that Government ordered from Chinese CSR Corporation which will start operating in regular traffic in January

CITIZENS ENJOY NO BENEfITS FROM TUMBLING OIL PRICE

The low oil price, however, does have a positive effect on the performance of the firms whose production and transport costs are closely related to the oil price

ENERGY CONSUMPTION BY TRANSPORT MODE, 2013

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co n St rU c ti o n

ONLY 0.2 PERCENT UNSOLVED CADASTRE CASES

The annual program for realization of the strategic plan of the Cadastre is expected to initiate the new procedure for registration of property in three steps. By the end of March, it is expected to complete the digitalization of cadastre plans for the entire territory of Macedonia, while the construction land register will be operational by June

fOREIGN INVESTORS INTERESTED IN INVESTING IN SKI CENTER ON GALICICA

The construction of the ski center would cost around 76 million euros and the promotional activities for the implementation of the project continue

M

acedonian Real Estate Cadastre Agency registered 5,329 transactions by the end of September last year, 3,362 of which for selling and 1,967 for rents, most of which were registered in Skopje and least of which in Kratovo.

– From the total number of registered sales and purchases, it mostly accounts for facilities and less for land - informed the Director of Real-Estate Cadastre Agency Slavce Trpeski. According to the registry of real-estate sales and rents, the average price for meter squared in Skopje is somewhat less than 1,000 euro, fol- lowed by Bitola and Ohrid.

– Last year 1,189,967 cases were registered in e-cadastre, which is a record number in the history of this institution, leaving only 0.2 percent of the cases unsolved - stressed Trpeski. This year, it is expected that over one million cases will be registered and solved in the given legal deadline, especially regarding the cases for legalizing of buildings and privatiza- tion of yards.

The annual program for realization of the strategic plan of the Cadastre is expected to initiate the new procedure for registration of property in three steps.

By the end of March, it is expected to complete the digitalization of cadastre plans for the entire territory of Macedo- nia, while the construction land register

will be operational by June - added Trpeski. By the end of last year, Cadas- tre registered 139,070 legalized illegally constructed facilities and issued 4,501

free geodetic analyses for legalization. In 2015, 1,498 infrastructure facilities were registered, recorded and marked.

T

he plan of constructing a ski center on Mt. Galicica is still on the table after two years ago one of the world’s most renowned companies gave it a green light. Foreign investors from Swit- zerland, Norway, France, Germany, Italy, Israel and Russia expressed interest in investing in a ski center.

However, according to the local au- thorities, no company’s bid is close to the

required sum of money for this major investment undertaking. The construction of the ski center would cost around 76 million euros and the promotional activities for the implementation of the project continue.

Transport Minister Vlado Misajlovski said that two months ago he considered with potential investors the locations where a modern ski center should be

built. The project would be carried out in several stages covering 12-km long ski slopes, 2 gondolas, 7 ski lifts and highly secured conveyor belts for children and beginners. There will be tracks for both alpine and cross-country skiing. How- ever, local mountain climbers, nongov- ernmental organizations and experts are divided over the idea of constructing a ski center.

NUMBER Of NEWLY RECEIVED APPLICATIONS IN COMPARASION WITH THE NUMBER Of BACKLOG APPLICATIONS, for the period 2005–2013

0 200.000 400.000 600.000 800.000 1.000.000 1.200.000

2005 2006 2007 2008 2009 2010 2011 2012 2013

323.695 337.040 389.447

636.798 651.432 838.434

1.160.691

1.027.282 1.040.268

21.990 19.329 8.929 4.054 2.862 4.814 3.894 1.967 1.299

Newly received applications Backlog applications

PERCENTAGE Of BACKLOG APPLICATION IN COMPARISON WITH THE NEWLY RECEIVED APPLICATIONS

0,00 2,00 4,00 6,00 8,00 10,00

2005 2006 2007 2008 2009 2010 2011 2012 2013

5,73%

2,29%

0,64% 0,44% 0,57%

0,34% 0,19% 0,12%

%

6,79%

Source: Real Estate Cadastre Agency

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in d U St rY

S

econd year in a row that Macedonia ends in deflation. The most recent data published by the State Statistical Of- fice show that in 2015, the living expenses were lower by 0.3 percent compared to 2014 and 2014 ended with a negative rate of 0.3 inflation. The trend of decreas- ing living expenses in Macedonia in the past two years, according to the National Bank of Macedonia, are a result of the global low oil prices and reduced prices of foodstuff products.

Citizens complain that they don’t feel the lower prices, showed in the statistics, to the contrary, their living expenses are even higher and they cannot indulge in basic products in the markets.

Listed by years, 2013 ended with 2.8 inflation rate, which was 3.3 percent in 2012. In 2011 the living expenses increased by 3.9 percent and in 2010 we had positive inflation rate of 1.6 percent.

In 2009, the deflation rate was 0.8 percent and in 2008 the inflation rate was 8.3 percent.

The National Bank of the Republic of Macedonia anticipated this trend of deflation to end in 2015, forecasting

that 2015 will end with an inflation rate around zero, but the final result was mi- nus 0.3 percent. For this year, the central bank expects that living expenses will

increase, i.e. the inflation rate will be 1.5 percent, mainly as a result of the low oil prices and reduced food prices.

M

etal prices on the global markets will continue to drop, even more than expected. This was shown with the most recent anticipations of the National Bank of the Republic of Macedonia in their January report on macroeconomic indicators.

“The unfavorable condition of high offer and insufficient demand caused metal prices to drop, especially nickel and copper. That brings more somber forecasts for the metal prices this year.

On the other hand, the projected drop of metal prices for 2017 is minimally lower than the previous expectations”, reads the most recent forecast of the central bank.

Maksim Prohorov, Head of Develop- ment and Investments in “Sasa” mine

recently stressed that the metal prices continuously drop on the global stock exchange. Hence, the price of lead and zinc which was 2,200 dollars per ton one year ago, dropped to 1,650 dollars i.e. 1,520 dollars, and the price of silver which was 21 dropped to 14.8 dollars per ounce.

“We are continuously asked what is the bottom price for the mine to stop profiting and we say that we cannot know because we are dealing with natural substance. In the past several months, we dig deeper horizons in exploitation which increases our expenses”, said Prohorov. NBRM announced that not only the metal prices but also other prices of primary products mark a downward trend.

Oil prices are expected to continue dropping this year. On the other hand, it is expected that in 2017 the increase of oil prices will be higher than in our last projection. Last year, wheat and corn prices were lower than anticipated. From the central bank explain that the global economy is gradually healing, but the growth rate is unsatisfactory given the global uncertainty and tense geopoliti- cal risks. In terms of the influence of the global economy on the domestic one, the anticipations for foreign effective demand are almost the same.

In the third quarter last year, construction was the main driver of growth, as well as the domestic demand. NBRM expects solid growth for the last quarter of last year.

METAL PRICES CONTINUE TO DROP

Oil prices are expected to continue dropping this year. On the other hand, it is expected that in 2017 the increase of oil prices will be higher than in our last projection

THE DROP Of OIL PRICES LEADS TO DEFLATION

INFLATION 12

10 8 6 4 2 0 -2 -4

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Annual rates, in percent forecast

2009 2010 2011 2012 2013 2014 2015 2016

-0.8 1.6 3.9 3.3 2.8 -0.3 0.0 1.5

Source: State Statistical Office and NBRM

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to U ri SM

M

acedonia will try to become leader in tourism in Southeast Europe by practicing active tourism. The Inter- national Association for Active Tourism in Skopje organized training in order to provide additional support for developing active tourism on the Balkans.

The training was held before the upcoming regional conference which will be held in Ohrid in May this year. It is a Summit which is anticipated to attract 300 European and global tour-operators and media. From the Agency for Promo-

tion and Support of Tourism in Macedo- nia stress that the training was organized for the tour-operators which will attend the Conference in Ohrid and present their offers.

-We believe we have found a way to attract foreign tourists by promoting Mace- donia as favorable destination for active tourism, stressed Director of the Agency for Promotion and Support of Tourism in Macedonia, Lela Krstevska.

From the Association of Active Tourism ATTA explain that active tourism is glob-

ally represented with 263 billion dollars and it is the fastest growing sector in the world.

-Active tourists stay longer at their destinations, where they travel and spend more money, stressed executive director of the Association for Active Tourism ATTA, Christopher Doyle. The assessment for massive tourism is that 17 cents remain in the destination of visit from every dollar spent, and active tourism accounts for 65 cents i.e. 65 percent of every dollar remains at the tourist destination.

Otherwise, the Ohrid Conference will bring together more than 200 representa- tives of the public and private sector from 12 destinations in Southeast Europe. The Conference aims at promoting the Balkan region as one of the best and undiscovered destinations for active tourism in Europe.

A

fter Belgian “Tomas Cook” recently signed agreement with Macedonian hotelkeepers, “Thomas Cook- Nether- lands”, big tour-operator on the Dutch market, intends to enter Macedonia. The Agency for Promotion and Support of Tourism (APPT) promoted Macedonia on the Tourism Fair in Utrecht Nether- lands, which took place in the period 13- 17 January, together with 500 global destinations. Macedonia was presented on the Dutch tourism market for the sixth time, which is one of the most recognized tourism markets, and Dutch showed great interest in Macedonia’s culture, history and nature.

– TUI and Corendon, the biggest tour-operators that bring Dutch tourists to Macedonia, are optimists for the upcoming tourist season, regardless the unfavorable geo-political events in certain parts in the world, stressed from the Agency. During the fair, they discussed the possibility for joint representation on the markets of third world countries with some Balkan countries, in order to attract more tourists.

Macedonia’s tourist offer was presented by Macedonian hotelkeepers and tour- operators “Ohrid holidays” and “Bohe- mia” which expect to have a successful tourist season.

– Great recognition goes to the Repub- lic of Macedonia as an attractive travel destination, after ANVR, Dutch Associa- tion of Tour Operators announced that this year’s annual congress for the best tourism students from all faculties and schools for tourism in Netherlands will take place in the most popular Macedo- nian resort Ohrid in the period 21-28 May 2016 in Ohrid, and Dutch students will have the opportunity to exchange knowledge and share experience with their colleagues from Macedonia, stressed Macedonian Ambassador to Netherlands Igor Popov.

ACTIVE TOURISM – A CHALLENGE FOR BALKAN COUNTRIES

Active tourists stay longer at their destinations, where they travel and spend more money, stressed executive director of the Association for Active Tourism ATTA, Christopher Doyle

TOUR-OPERATOR “TOMAS COOK – NETHERLANDS”

TO ENTER MACEDONIA

The Agency for Promotion and Support of Tourism (APPT) promoted Macedonia on the Tourism Fair in Utrecht Netherlands, which took place in the period 13-17 January, together with 500 global destinations

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to U ri SM I

n the past few years, the Macedonian capital city became leader in construction and opening hotel and catering facilities in Macedonia. Data shows that the hotel and catering facilities in Sko- pje continuously increase, as well as the number of foreign visitors. The increased number of tourists who decide to visit Skopje is a result of the numerous land- marks, which increase from year to year.

Statistics show that this year Skopje will be visited by more tourists compared to last year, and the upward trend of visitors will continue next year when the number of visitors is anticipated to be record- breaking, mainly due to 2017 UEFA Super Cup.

According to Mihajlo Kolev, General Manager of Opera House Hotel, the expectations and anticipations for this and for next year are positive.

“The hard work and investments in the hotel keeping business were worth it. Last year, Skopje had a tourist revolution and hotel keepers saw the most of it. There is continuous demand for extra rooms and hotel capacities are increasing”, said Kolev.

In 2017, Skopje will host a global event and our metropolis will be put on the map of sport mega powers hand in

hand with the European cities. The Foot- ball Federation of Macedonia arranged the UEFA Super Cup to be organized in Skopje.

“This kind of vast global event will definitively attract enormous wave of tourists, worldwide. It is a fact that while organizing this global event we will need to improve and boost the hotel and ca-

tering services in the capital city and in the whole country. Starting from airport capacities, providing accommodation, luxury hotel rooms, available and well- arranged hostels and also smaller accommodation facilities. However, it will definitively present a great chance to pro- mote our country and make profits in the entire catering business”, added Kolev.

T

he local self-government of Demir Kapija sold construction land which will hold the first hotel in this Municipality.

– The hotel will be constructed between the two existing wineries and near the third winery that will soon be

constructed. This is near the juncture entrance to Demir Kapija from highway Skopje-Athens, informed Mayor Trajce Dimitriev.

The hotel construction is a domestic investment of Goce Gjorgievski from Skopje, who stressed that the hotel will

be located on 1,500 meters squared and will have 50 beds, restaurant, swimming pool, spa center, summer terrace and children’s playroom.

HOTEL KEEPING TO fLOURISH THIS AND NEXT YEAR

According to Mihajlo Kolev, General Manager of Opera House Hotel, the expectations and anticipations for this and for next year are positive. In 2017, Skopje will host a global event and our metropolis will be put on the map of sport mega powers hand in hand with the European cities. The Football Federation of Macedonia arranged the UEFA Super Cup to be organized in Skopje

THE fIRST HOTEL TO BE CONSTRUCTED IN DEMIR KAPIJA

STRUCTURE Of TOURISTS AND NIGHTS SPENT, NOVEMBER 2015

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Nights spent Tourists

Domestic Foreign

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a G ri cU lt U re

L

ast year, only six percent out of a total of over 192 thousand individual farmers in Macedonia have insured their crops. Insurance companies offer policies for insuring the property, crops, cattle, etc, but the interest of Macedonian farmers is to the minimum compared to the interest in developed countries, even if

the state gives 60 percent subsidies for the insurance policy.

Insurance is the most effective way for compensating agricultural damages, stress from the Insurance Supervision Agency.

Climate changes have direct influence on crops and on the quality of agricultural production. Last year, the number

of sold policies increased for 63 percent, but it is still far beyond European average. The political and economic stability of the country and the living standard of citizens play an important role in the insurance segment.

G

iven the increased import from Serbia and the disruption on the Macedonian market, the Ministry of Ag- riculture will this year provide additional support for pig-breeding, through the program of direct payments.

Competent Minister Mihail Cvetkov stressed that the additional subsidies will aim to preserve this sector.

– In the period October-May, when the demand for pork decreases, the state will provide additional subsidies for stor- ing the meat in freezers, explained the Minister.

ADDITIONAL SUBSIDIES FOR PIG-BREEDING FARMERS DON’T INSURE THEIR CROPS

Insurance is the most effective way for compensating agricultural damages, stress from the Insurance Supervision Agency

T

he Group of Flour and Bread Pro- ducers at the Economic Chamber of Macedonia calls for urgent measures to protect the home flour industry, full control of the flour imports through control markings, implementation of the flour quality regulations and additional subsidies for domestic wheat producers by quality.

Vasko Ristovski from the Economic Chamber of Macedonia said the condi- tioned import of flour and wheat, the control markings and the regulations of flour quality control did not produce the expected results.

The analyses of the flour industry show that in a period of four years, the import

of flour increased by some 30 percent annually. In the eleven months of 2015, 40,511 tons of flour were imported,

which surpasses the total import in 2014 of 40,361 tons.

FLOUR PRODUCERS CALL FOR URGENT MEASURES

NUMBER Of LIVESTOCK

0 100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000

Cattle Pigs Sheep Goats

2013 2014

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a G ri cU lt U re M

erchants demand the pumpkin, plum, Japanese apple and chili pepper to again be cultivated by farmers.

They stress that market lacks certain agricultural crops as a result of the negative influence of the climate changes and given the fact that farmers are only orientated to certain croppers.

– We recommend 45 new products to be included in order to have variety of products. We suggest farmers to start cultivating plums and Japanese apples.

We have already negotiated and agreed upon the production and export of pumpkin for 2016, and the chili pepper is almost sold out because it was barely produced in 2015, said Aco Stoilkov merchant of agricultural products.

Stoilkov considers that the agreed production and the efforts for stimulating the young people to return to the farmer land will boost the agricultural production. In addition, he considers that more purchase points in Strumica region for production, packing and placement of agricultural products pursuant to European standards.

Experts are decisive that the soil in Strumica region is very favorable for these attractive croppers.

– There is great interest on the German market for the dried plum. In Strumica

region there are favorable conditions for several types of plum. Japanese apple is expanded in Strumica region, except in Valandovo region where it is sold for 2,000 to 3,000 tons per year, explained PhD Risto Vuckov, agriculture expert.

Experts advise that production shouldn’t be spontaneous, but organized with professional surveillance and expert advice in order to have better quality and

bigger price. According to merchants, last year, the red pepper, plum and peach had great placement success, while for tomato producers it was one of the worst years due to the climate changes which damaged the crops and due to the competion of foreign markets.

T

he legal decisions that enables farmers to calculate their length of service and get insurance, entered into force this year, pursuant the law on pension insurance for farmers which was implemented in the period 1978-1988, in order for farmers to complete the precondition for having a minimal length of 15 years of service and receive a pension.

The legal decision was proposed by the Government in August last year, entered the Assembly procedure and was adopted by MPs. It gave legal opportunity to around 400 individual farmers who had problems with the lack of length of service for receiving a pension.

The law was prepared in order to meet the demand of the association of farm-

ers, trade unions and numerous citizens, who had this problem and were unable to receive a pension.

Government annually allocates around 34 million denars for this measure.

MERCHANTS DEMAND CULTIVATION OF PUMPKIN AND PLUM

Experts are decisive that the soil in Strumica region is very favorable for these attractive croppers

SOLVING THE PROBLEM WITH THE LENGTH OF SERVICE FOR FARMERS

STRUCTURE Of ORCHARDS

Almonds and hazelnuts 3%

Cherries 5%

Pears 3%

Walnuts 5%

Sour cherries 8%

Peaches 12%

Plums 15%

Other 3%

Apricots 2%

Apples 44%