Monthly

Macedonian Business
Established 2001

No. 168 Vol. XVI, 2016

INVEST IN MACEDONIA
NEW BUSINESS HEAVEN
IN EUROPE

LEAD GENERATION

his is the process of developing buyers interest in foreign markets for Macedonian products or services. Typically, leads are developed
through research and contact with potential
buyers. This function will be conducted through
the network of Invest Macedonias economic
promoters who will be primarily responsible for:
a. Identifying high level opportunities in the
specific markets,
b. Generating customized contact list of
potential interested buyers (leads, at request
of Invest Macedonia HQ); and
c. Developing business meeting agendas for
visiting Macedonian companies at the request
of Invest Macedonia HQ).
Invest Macedonia will lead the activity
and coordinate the chambers and business
associations who want to participate.
Benefits: There are many advantages of using
economic promoters to generate the leads:

Page 2 >

Published monthly by MIC

With support of the
Macedonian Ministry of Foreign Affairs

CANADIAN COMPANY ONE CONTACT

LAUNCHES OPERATIONS IN SKOPJE

anadian company One Contact launches operations in Skopje by investing in

opening a new call center which will employ at least 200 people. One Contact
Center is a Canadian Company with a mission to provide high-quality and costeffective telecommunication and online data processing services that meets customers
needs.
Investor Asif Chaudari informed that the process for opening the company
stated two years ago at a business forum in Toronto where Macedonias investment
opportunities were presented.
-We started with 25 employments and this number is expected to reach 50 by the
end of this year, and in the future we are planning to hire over 200 employments. The
open call for employment is still ongoing and we hire young people, who fluently
speak English and French, informed Chaudari.
Macedonia applies an open policy for attracting foreign investors and Governments
efforts give results, said Viktor Mizo, Director of the Directorate of the Technological
Industrial Development Zones.
-This Canadian investment is another proof that Macedonia attracts companies
from different countries operating in various sectors which indicated that the business
climate in Macedonia is great. So far, foreign investments created over 17,000 new
jobs, said Mizo.

Macedonian Business MontHly

INSIDE

MacedonianInformationCentre

Macedonian Information Centre

page 4 G OVERNOR

BOGOV: NBRM TO
REVISE 2017 PROJECTIONS

Director
Dragan Antonov

page 6

G ERMANY WILL OPEN REGIONALECONOMIC REPRESENTATION

OFFICE IN SKOPJE

page 9

E VN INVESTS EUR 300 MN IN

DISTRIBUTIVE NETWORK

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

page 14 M ACEDONIAS TOURIST

POTENTIALS PRESENTED IN
FRONT OF TOUR-OPERATORS
FROM THE UNITED KINGDOM

contact@micnews.com.mk
mic@micnews.com.mk

No. 168, Vol. XVI, September 2016

Macedonian Business Monthly

page 16 S EVENTEEN

MACEDONIAN
COMPANIES PRESENTED ON
THE FOOD FAIR IN MOSCOW

Founded in 2001
Editor

Sonja Kiridzievska
Translator

Ema Trenevska
Contributor

Sonja Efremova
Published monthly in the

Republic of Macedonia
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.

LEAD GENERATION

Continued from page 1

his is the process of developing buyers interest in foreign markets for Macedonian products or services. Typically, leads are developed through research
and contact with potential buyers. This function will be conducted through the
network of Invest Macedonias economic promoters who will be primarily responsible for:
a. Identifying high level opportunities in the specific markets,
b. Generating customized contact list of potential interested buyers (leads, at
request of Invest Macedonia HQ); and
c. Developing business meeting agendas for visiting Macedonian companies at
the request of Invest Macedonia HQ). Invest Macedonia will lead the activity and
coordinate the chambers and business associations who want to participate.
Benefits: There are many advantages of using economic promoters to generate
the leads:
a. They are based in the target countries and therefore have the local knowledge
that allows them to understand the interests and needs of the buyers;
b. With economic promoters generating lists of buyers contacts and assess interests, companies can cost effectively identify potential consumers without having to
spend additional resources in travel for market intelligence; and
c. As economic promoters ascertain local needs as well as the capabilities of
Macedonian companies, they can more effectively match buyers with suppliers,
thereby increasing likelihood of sales.

Macedonian Business MontHly

ne of the three largest automotive

companies in the world is coming
to Macedonia this month. They will be
looking for suppliers and have already
scheduled meetings with 30 local firms.
Since foreign companies started coming
to Macedonia, their cooperation with domestic firms has been continuously grow-

ing. At the moment, over 500 Macedonian firms are working as their suppliers.
Over 32 promoters around the world
are actively working to attract foreign
companies. It is them who are arranging
the initial contacts and giving presentations on Macedonias potential as an
investment destination. However, accord-

ing to the opposition their engagement is

but wasting of too much budget money.
According to the National Banks official statistics, in the first half of 2016,
foreign direct investments totaled 123
million euros, which is by 78 percent
more from the FDI for the entire 2015.

REASONS TO INVEST IN MACEDONIA

GOVERNMENT STAY COMMITTED TO LOW TAXES As a government
we stay committed to the policy of law taxes and the policy by which the
private sector will have most of the funds at its disposal. The main goal of
the tax exemptions for reinvested profit is making sure most of the money
invested in new technology returns again to the companies it came from, said
Finance Minister Kiril Minoski.
FREE HEALTH ZONES TO RECEIVE SAME TREATMENT AS ECONOMIC
ONES The money from leasing or selling state-owned building land for
construction of a free health zone will be distributed by the model that applies
for the free economic zones. Of the money to be paid into a special treasury
account, 20 percent will be for the state and 80 percent for the Directorate
for Technological and Industrial Development Zones.
FINANCIAL HELP FOR EMPLOYMENT OUTSIDE THE PLACE OF RESIDENCE Financial help for workforce mobility is one of the measures with
which Government supports employment and creates new jobs through
the Employment Agency. This measure is intended to boost the mobility of
unemployed persons according to the local needs on the labor market. This
support is anticipated to encourage and motivate these persons to engage
outside their place of residence as their accommodation and transport
expenses will be compensated.
MACROECONOMIC POLICY Macroeconomic policy of the Republic of
Macedonia in the coming period is aimed at fulfilling the strategic commitments of the Republic of Macedonia to long-term and sustainable economic
growth, boosting competitiveness of the economy and job creation, as well
as better living standard of the population.
AGRO-BUSINESS ZONE TO BE ESTABLISHED An integrated agricultural
zone will be established in Macedonia, gathering in one place warehouses,
traders, companies and other representatives of the chain of supply of fresh
and processed farming products.
OVER 12,000 PEOPLE YOUNGER THAN 29 EMPLOYED Over 12,000
jobs have been created in 5,500 companies with the measure for hiring people
young than 29, carried out since 2014. Most of the firms that used the government measure, or 4,500, are small businesses with up to 10 employees, about
100 are medium-sized enterprises and 26 are large companies.
SOON, NEW READY-MADE HOUSE PLANS AVAILABLE FOR FREE New,
ready-made house plans with different square surface will soon be at the disposal
of citizens who show great interest in the Ministry of Transport and Connections.
ROAD INFRASTRUCTURE The 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. The backbone of the
countrys road network consists of the two Pan-European corridors VIII and X.
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 regulated 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 investors 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? Challenges 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 environment Given the
need for speed in todays 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 2014report 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 2013is
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 1520
acres for hospitals founded and built by foreign companies.
INCREASED SUBSIDIES FOR TOURISTS FROM SERBIA, BULGARIA 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
countrys 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 MACEDONIAN
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.
RESPONSIVE EDUCATIONAL SYSTEM Universities willing to collaborate
with incoming investors in meeting the required skills.

investment climate

LARGE US COMPANY LOOKING

FOR SUPPLIERS IN MACEDONIA

Macedonian Business MontHly

GOVERNOR BOGOV: NBRM TO REVISE

2017 PROJECTIONS
BANKING

Finance Minister Kiril Minoski said that the growth projection incorporated projections of the global growth, Brexit effects,
as well as domestic expectations, including the solution to the political crisis following the parliamentary elections

he National Bank of the Republic of

Macedonia is currently working on revision of prior projections for 2017. At the
beginning of November we will present the
new projections and give our standpoint
over the economic growth, stated Governor of the National Bank of the Republic
of Macedonia, Dimitar Bogov.
Bogov informed that NBRM will
adapt the monetary policy to any budget
in order to attain monetary stability and
stability of the banking sector.

-NBRM provides the best contribution

in the economic growth by maintaining
the price stability and the sound banking
system, Bogov informed.
The 2017 draft-budget has been developed based on economic growth projections of 3%.
Finance Minister Kiril Minoski said
that the growth projection incorporated
projections of the global growth, Brexit
effects, as well as domestic expectations,
including the solution to the political

crisis following the parliamentary elections.

The budget revenues are projected at
187.6 billion denars which is 7.6% increased compared to 2016, the expenditures reach 206.22 billion denars or 4.5%
increase, while capital investments reach
a record-breaking amount of 26.95 million denars. The budget deficit is projected at 3% GDP i.e. 18.6 billion denars.

SOON, NEW BANKNOTES OF 200 AND 2000 DENARS

These banknotes were primarily supposed to enter circulation on January 2015 but the procedure was
prolonged and now it is expected that the new banknotes will enter circulation in several months

acedonian citizens will be able to

use the new banknotes with nominal values of 200 and 2000 denars by the
end of this year or at the beginning of
next year. The money will be printed by
English banknote manufacturer company
De La Rue. It is anticipated that 10
million banknotes of each kind will be
issued. These banknotes were primarily
supposed to enter circulation on January
2015 but the procedure was prolonged
and now it is expected that the new
banknotes will enter circulation in several
months.
Leitmotif of the obverse of the conceptual, and art and graphic design of the
200 denar banknote is the relief with a
presentation of the 41st Psalm of David
from the Old Testament which belongs
to the infamous terracotta icons from
Vinica, one of the most important early
medieval archaeological discoveries on
the territory of the Republic of Macedonia. The reverse of the banknote contains
a presentation of an architectural and
art element of the frontal faade of the
Colorful Mosque in Tetovo, one of the
most attractive monuments of architec-

ture and art from the Ottoman period in

Macedonia.
Leitmotif of the obverse of the conceptual, and art and graphic design of the
2000 denar banknote is the presentation
of Macedonian bridal costume from

Prilep Field, as an impressive reflection

of the richness of the folklore heritage of
the Republic of Macedonia. The reverse
of the banknote contains a presentation
of the decoration of the inside of a glided
vessel originated from the XVI century.

Macedonian Business MontHly

SAVINGS OF FUTURE PENSIONERS

RISING BUT SLOWLY
government securities. On the other
hand, the voluntary pension funds investment in government securities is
45-50 percent. In recent years, pension
funds, especially those working under

circumstances of negative interest rates,

have been facing higher risks and reduced
chances of profit.

Actuarial projections
Ratio contributors / pensioners
700.000

2.0
contributors
pensioners
proportion

600.000

1.6

500.000
1.2

400.000
300.000

0.8

Proportion

he savings of the future pensions

contributing to the second pension
pillar were growing in the first half of
2016, too, by at a slightly slower rate
than last year. This has been revealed by
the statistics of the mandatory NLB Pension Fund, according to which in the first
six months the average amount in the
contributors individual accounts was up
5.5 percent. In other words, every contributor had savings of about 1,600 euros
on average.
However, the increase in savings, as
the Funds managers say, is largely a result of the monthly payment of pension
insurance contributions. The mandatory
NLB Pension Funds cumulative profit
in January to June this year totaled 107
million denars, which is considerably less
in comparison with the same period last
year. The reason for these results was the
extremely volatile period across markets,
which led to stock investments losing
their value.
NLB Pension Fund is still investing
most of its fundsabout 60 percentin

Number

200.000
0.4
100.000
0

0.0
2001

2010

2020

2030

2040

2050

2060

2070

2080

2090

2100

Year

PUBLIC CALL FOR MUNICIPAL

CAPITAL PROJECTS OF EU 25 MN
Besides for loans for capital projects, the money that the World Bank has provided via the MSIP 2 project will also be used
for grants for investments in infrastructure in poorer areas as well as for giving municipalitys technical assistance

he Ministry of Finance announced

a public call to municipalities to apply for money from the second project
aiming to improve municipal services,
MSIP2. The budget of 25 million euros
has been provided through the World
Bank and is intended for implementation
of capital projects in municipalities.
The conditions under which municipalities will be able to apply for funds are
extremely favorable - 13 years of repay-

ment period with a grace period of 3

years and an interest rate identical to the
one that the Republic of Macedonia pays
to the World Bank, that is, the 6-month
Euribor rate.
Besides for loans for capital projects,
the money that the World Bank has
provided via the MSIP 2 project will also
be used for grants for investments in infrastructure in poorer areas as well as for
giving municipalitys technical assistance.

MSIP 2 is a follow-up to the MSIP 1

project of 56 million euros. The money
of the MSIP 1 project was used to support 68 capital projects in 53 municipalities. More specifically, funds were invested in local roads, water supply systems,
schools, kindergartens and other facilities
with the aim of improving the living conditions in those municipalities.

BANKING

NLB Pension Fund is still investing most of its fundsabout 60 percentin government securities. On the
other hand, the voluntary pension funds investment in government securities is 45-50 percent

Macedonian Business MontHly

GERMANY WILL OPEN REGIONAL-ECONOMIC

REPRESENTATION OFFICE IN SKOPJE
ECONOMY

The trade exchange between Macedonia and Germany, which is the biggest external trade partner of
Macedonia, will surpass the amount of three billion euro for the first time this year

ext month Germany will open a

regional-economic representation
Germany
office in Skopje, stated Helge Tolksdorf
Head of the EU Directorate for Enlargement, Southeast Europe and Turkey in
Bulgaria
the Federal Ministry for Economic Affairs and Energy of Germany.
-In the past few years we deepened
Serbia
the cooperation between Macedonian
and German companies, and in October
Greece
together with the German-Macedonian
Economic Chamber of Commerce we
will open a regional-economic representa- Great Britain
tion office of Germany in Skopje. German companies in Tirana and Pristina
will be managed from Skopje and will
be offered services for easy market entry,
stated Tolksdorf.
The trade exchange between Macedonia and Germany, which is the biggest external trade partner of
Macedonia, will surpass the amount of three billion euro for the
first time this year.
Ambassador of the Republic of Macedonia in Germany, Saso
Markovski addressed the present guests and talked about the
Macedonian development, integrations and reforms.
-Having into consideration the economic parameters the Federal Republic of Germany was always among the top three cooperation partners of Macedonia, and this sustainable friendship
will be further improved in the future, commented Ambassador
Markovski.

Export and import by countries, 2015

Export
Import

Source: The State Statistical Office

Foreign direct investment net inflows and net outflows as share of GDP
% of GDP

10
8
6
4
2
0
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: NBRM, SSO

VILLAGE GARI TO PRODUCE PREMIUM WATER

FOR GLOBAL MARKETS
A

factory for production of bottled

water, investment of Croatian company Mali Losinj, opened near Debar
village Gari. Over the past 3.5 years,
since they obtained the concession, the
company has invested 14 million euro
for project realization.
The bottled water from the factory is
export-oriented, primarily in neighbor-

ing countries, Arab countries, Croatia

and Russia.
-This investment is of enormous significance not only for Gari and Debar,
but also for the western region in Macedonia, towards equal and sustainable
economic development, said Economy
Minister Driton Kuci.

Quality standards have been taken

into consideration, meaning that the
high-quality water is produced according to the latest technology and will be
competitive on the global market.
Minister for Foreign Investments
Goran Mickovski stressed the importance from investing and creating new
jobs.

Macedonian Business MontHly

According to economists, this indicates that Governments measures and policies give results and it is certain that this positive
trend will continue in the future and probably Governments projections for unemployment rate of 22% by 2018 will realize

he unemployment rate in the second

quarter of 2016 reduced by 0.5%
compared to the previous quarter and
now stands at 24%, announced the State
Statistical Office.
In this period, Macedonia had 948,376
work capable persons 720,674 of which
were employed while 227,702 were unemployed.
According to the data of the State
Statistical Office the activity rate in this
period was 56.5%, the employment rate
was 42.9% while the unemployment rate
is 24%.
According to economists, this indicates
that Governments measures and policies
give results and it is certain that this positive trend will continue in the future and
probably Governments projections for
unemployment rate of 22% by 2018 will
realize.
If everything goes as planned, the unemployment rate will significantly drop
in 2017 and the unemployment rate of
22% by 2018, projected by the Government, might realize. Still, that requires
stable political and economic situation in

the country, said PhD professor at the

Faculty of Law, Lazar Jovevski.
Attracting foreign investments, opening new factories, supporting the domestic private sector by implementing
measures for active employment do give
results and open new jobs in foreign and
domestic companies. One of the main
generators of new jobs is governments
project Macedonia employs.
The new employments allow companies to save up to 1,500 euro per person.
This measure reduces the unemployment
rate in the country which is one of the
conditions for successful realization of

this project, which so far opened 18,900

new jobs in the country, says Deputy
Minister of Labor and Social Policy,
Dime Spasov.
Moreover, the number of new jobs in
the free economic zones increases and it
is expected to reach over 7 thousand employees by the end of this year.
The implemented reforms are great
and give positive results. We became a
brand destination for foreign investors,
says President of Macedonian Association of Chambers of Commerce, Daniela
Arsovska.

Employed persons by gender and economic status, 2015

Percentage
distribution by status

Number

Sex distribution

Status of employment

Women

Men

Women

Men

Women

Men

Employee
Employer
Own-account worker
Unpaid family worker
Total

221 882
7 556
18 071
34 568
282 078

299 654
22 852
79 945
21 463
423 913

78.7
2.7
6.4
12.3
100.0

70.7
5.4
18.9
5.1
100.0

42.5
24.8
18.4
61.7
40.0

57.5
75.2
81.6
38.3
60.0

MIZO: WE NEGOTIATE WITH SEVERAL

COMPANIES INTERESTED TO INVEST IN MACEDONIA
W

e negotiate with several companies interested to invest in

Macedonia, said Director of the Directorate for Technological Industrial Development Zones, Viktor Mizo.
-Existing investor-companies are helping us attract or attack
potential investor-companies. Currently we are negotiating with
several companies most of which from the automotive industry,
says Mizo.
He adds that we have export and import coverage of around
70% which is significantly high for a small country like Macedonia.
We mark an increase of 10% and it is very difficult to reach
100% coverage, but we have made a lot of progress, concludes
Mizo.

Industrial Zone Debreste

LABOUR MARKET

THE UNEMPLOYMENT RATE

DROPS TO 24 PERCENT

Macedonian Business MontHly

Labour MARKET

HUNDRED NEW JOBS CREATED

WITH GRANTS OF 3,000 EURO
Director of the Employment Agency Vlatko Popovski stressed that since 2007, when this project was launched, over 8,100
companies have been formed, 70% of which are still operating. In 35 of them, additional 250 jobs have been created

ll interested unemployed persons

who are actively looking for a job
can apply for a grant of 3,000 euro for
self-employment by starting a personal
business. The country allocates grants for
the unemployed to start a personal business and if possible create other jobs as
well.
A total of 100 grants for self-employment are anticipated with the third stage
of this project for this year.
-For the realization of these 100 new
employments the country provided 20
million denars and a total of 1,010 grants
are anticipated for the entire year. All
these grants total 225 million denars,
stressed Deputy Minister of Labor and
Social Policy Dime Spasov.
He informed that this year a total of
442 companies have been formed and additional 390 small companies are waiting
to be registered.

Director of the Employment Agency

Vlatko Popovski stressed that since 2007,
when this project was launched, over
8,100 companies have been formed,
70% of which are still operating. In 35
of them, additional 250 jobs have been
created.

In the past few years, small businesses

were open in various fields, i.e. catering
industry, production, kindergarten and
software materials. This program doesnt
finance agriculture and taxi services.

Job Vacancy Rate in the last four quarters

1.8
1.7
1.6
1.5
(%) 1.4
1.3
1.2
1.1
1

III

IV

II

OVER 6,000 VACANCIES

ON THE LABOR MARKET
By sectors, most vacancies are in the service industry and production i.e. 2,300, followed by technicians, machine operators and clerks

ccording to the State Statistical Office there are 6,687 vacancies on

the labor market in the second quarter
this year. Most of the vacancies are in
the manufacturing industry, trade and
services. By regions, there are 3,300
vacancies in Skopje region, followed by
800 in the Southeast region and very few
workers are required in the Northeast
and Polosko region, from 200 to 300
vacancies.
By sectors, most vacancies are in the
service industry and production i.e.
2,300, followed by technicians, machine
operators and clerks.

A total of 350 experts or scientists

are required and there are 12 vacancies
in military occupations. State officials,

diplomats and directors account for 18

vacancies.

Macedonian Business MontHly

EVN INVESTS EUR 300 MN

IN DISTRIBUTIVE NETWORK
O

ver the past ten years, EVN Macedonia invested 300 million euros
in the modernization, development and
reconstruction of Macedonias distributive network. In the past decade, the
companys priorities were creating a stable
distributive system and achieving power
supply safety.
The transformation of the power
supply system is closely related to EVN
Groups entrance. Over the past 10 years,
continuous investments have been made
in the development and reconstruction
of the existing and in the construction of
a new distributive network on all voltage
levels, EVN Macedonia said in a statement.
With investments in renewable sources
of energy, the capacity of 11 small hydroelectric power stations has been increased,
five new high-voltage substations and
aboveground lines as well as 1,050 new
distributive substations have been built,
and 850,000 old power meters have been
replaced whereby technical electricity
losses have considerably been reduced
and the systems efficiency has been improved.

According to the master plan, in the

years ahead, the company plans to carry
out a number of projects and invest 700
million euros.
We have set up a customer care center
available 24/7, which has realized an impressive 4 million contacts over the past
ten years. We particularly pay attention

to social responsibility and are proud to

have established a broad and sustainable
network in cooperation with various national institutions and non-governmental
organizations. Our 13 social responsibility awards are a proof of that, said Stefan
Peter, Chairman of EVN Macedonias
Management Board.

Generation of electricty
million MWh

6
5
4
3
2
1
0
2011

2012

2013
Hydroenergy

2014
Thermoenergy

NATURAL GAS DISTRIBUTION NETWORK

TO BE CONSTRUCTED
G
overnment of Macedonia adopted
a new project for construction of
natural gas distribution network which
will encompass all three regions, realized
through a public-private partnership for
which an open call will soon be published.
So far, competent teams of experts prepared a detailed analysis and determined
the need for new approaches and solutions for making the natural gas available

for the citizens of the Republic of Macedonia.

Government remains devoted to the
construction of gas pipelines. So far, the
gas distribution section Klecovce-Stip is
finished and the construction of section
Stip-Negotino is initiated. The construction of gas pipeline sections from
Negotino to Bitola and from Skopje
to Gostivar through Tetovo should be
initiated in the upcoming period, stated

2015

government spokesperson Aleksandar

Gjorgiev.
Energy advisor Kristijan Mickoski
explained that it was decided to increase
the concession period from 20 to 30
years, the price per plug-in reduced from
100 to 80 euro and the remaining part is
subsidized by the Government, encompassing all municipalities and making
natural gas available for all citizens.

ENERGY

With investments in renewable sources of energy, the capacity of 11 small hydro-electric power stations has been increased, five new highvoltage substations and aboveground lines as well as 1,050 new distributive substations have been built, and 850,000 old power meters
have been replaced whereby technical electricity losses have considerably been reduced and the systems efficiency has been improved

10

Macedonian Business MontHly

ENERGY

GASIFICATION AND SMALL

HYDROELECTRIC POWER STATIONS PERK UP
MACEDONIAS ENERGY SECTOR
E

nergy investments in Macedonia continue because they are important for

the economic growth and the energy sector is the bloodstream of every economy
including the Macedonian. The national
gasification system, the large hydroelectric power stations, Cebren and Galiste,
and the construction of small hydroelectric plants remain a priority. This was underlined at the first international energy
conference in Macedonia organized by
Manaskov Skopje, Technical Consulting
Skopje and the Macedonian Chambers of
Commerce.
According to Ivana Nikolik, Deputy
Director of the Agency for Foreign In-

vestments and Export Promotion, gasification is in full swing. The KlecovceStip route of 61 km is finished and the
construction of the 36-km Stip-Negotino
route of 16 million euros is underway.
The construction of the 92-km pipeline from Negotino to Bitola via Kavadarci is expected to begin soon and to
finish in three years. The fourth route of
76 km will be built in parallel and will
connect Skopje to Gostivar via Tetovo.
It is expected be over by 2019, Nikolik
informed.
She said that Cebren and Galiste were
the second priority and that the public
call for designing a project, construction

and concession management had already

been announced. Their power will be 330
and 197 MWh respectively.
Danela Arsovska, President of the
Macedonian Chambers of Commerce,
said at the conference that the energy sector was propelling the economy forward
and that it was necessary to secure energy
stability in the country, provide quality
distribution grid and promote the energy
market legislation.
It is also important to make Macedonia part of the international energy
corridors, build wind farms, and raise the
rate of using solar energy, which requires
government subsidies, she said.

MW

2014
2013
20151)
2014

Republic of
Macedonia
Republic1of
938
Macedonia
1 995
1 938
2 029
1 995

Vardar
Region
Vardar331
Region
333
331
346
333

20151)

2 029

346

2013

Preliminary data

1)

East
Region
East 20
Region
23
20
24
23

Southwest
Region
Southwest
264
Region
264
264
270
264

Southeast
Region
Southeast 2
Region
42
2
42
42

Pelagonia
Region
Pelagonia
712
Region
713
712
719
713

Polog
Region
Polog 201
Region
211
201
214
211

Northeast
Region
Northeast 1
Region
1
1
6
1

Skopje
RegionMW
Skopje 407
Region
407
407
408
407

24

270

42

719

214

408

In 2015, the highest total installed capacity for electricity production was in the
Pelagonia Region, with total installed power of all capacities of 719 MW.
The increase in installed capacity is due to the newly installed capacities of small hydropower plants, photovoltaic plants and, for the first time, biogas plants that started
producing electricity in 2015.

GWh

"Industry sectors
(by NKD Rev.2)"
"Industry sectors
(by
NKD Rev.2)"
"Industry
sectors

(by NKD Rev.2)"

"Industry sectors
(by
NKD Rev.2)"
"Industry
sectors
(by NKD Rev.2)"
"Industry sectors
(by NKD Rev.2)"

Republic of
Macedonia
Republic of
Macedonia
2 365

Vardar
Region
Vardar
Region

920

East
Region
East
Region

71

Southwest
Region
Southwest
Region
46

Southeast
Region
Southeast
2012
Region
2012 154

Pelagonia
Region
Pelagonia
Region
163

Polog
Region
Polog
Region

393

Northeast
Region
Northeast
Region

41

Skopje
GWh
Region
Skopje
Region
577

2 365

920

71

46

2013 154

163

393

41

577

2 432

854

75

62

2013 157

170

661

41

412

2 432

854

75

62

20141)157

170

661

41

412

2 336

777

77

42

2014 146

164

664

36

431

2 336

777

77

42

146

164

664

36

431

1)

The highest consumption of electricity in the industry sectors in 2014 was recorded
in the Vardar Region (33.25%) and the Polog Region (28.4%).

Macedonian Business MontHly

11

MACEDONIA EXPORTS COMPUTER SERVICES

OF EUR 129 MN LAST YEAR
NEW MARKETS

The Ministry of Information Society has drafted a short-term ICT strategy 2016-2017, analyzing the size,
structure and trends of the potential markets for export by Macedonian companies

acedonia exported computer,

information technology and telecommunication services of 129.6 million euros last year. In the same period,
the import of such services totaled 83.6
million euros, which means the country
earned 46 million euros. Bearing this in
mind, the export of the ICT companies
appears to be the ace up Macedonias
sleeve. The increase is a result of the large
number of newly formed ICT companies
in the country doing business with distinguished world brands.
According to the statistics of the National Bank of the Republic of Macedonia, last year computer services contributed most to the ICT export, generating
71.4 million euros.
The Ministry of Information Society
has drafted a short-term ICT strategy
2016-2017, analyzing the size, structure
and trends of the potential markets for
export by Macedonian companies.
The ICT Chamber of Commerce has
also made an analysis of its own in which
the Scandinavian countries, the Netherlands, Great Britain, Ireland, Germany
and Austria are highlighted as targets for
Macedonian companies.

Usage of information and communication

technologies in the enterprises
A

ccording to the data of the State

Statistical Office of the Republic of
Macedonia, in 2015, 93.5% of the enterprises with 10 or moreemployees had
broadband connection to the Internet
(via fixed or mobile broadband connection).
Access to the Internet via a portable
device using mobile telephone network
(3G/4G) was used by 59.1% of the

enterprises. Thistype of mobile Internet connection (via portable devices:

notebook, laptop, Smartphone, PDA
phone, etc.), for business purpose,was
used by 11.4% of the persons employed.
Half (49.8%) of the enterprises used
social media (e.g. Facebook, LinkedIn,
Twitter, Present.ly, YouTube, Flickr,
Picassa, Wiki-tools,etc.), i.e. had a user

profile, an account or a user license for

using certain social media.
Around 52% of the enterprises had
website/homepage, of which 79% provided on their website descriptions of
goods or services,price lists, 40.2% had
links or references to their social media
profiles, and 16.4% provided online ordering or reservation or booking.

12

Macedonian Business MontHly

APARTMENTS IN SKOPJE SOLD AT

800 AND 1,200 EUROS PER SQ. METER
CONSTRUCTION

The great differences in demand and supply of real estate in different parts of Skopje are the reason why in some
neighborhoods apartments cost 1,200 and in others 500 euros, say representatives of real estate agencies

n apartment of 70 sq. meters in the

Skopje district of Kisela Voda costs at
least 70,000 euros. On the other hand,
an apartment of the same size in Skopje
Sever costs 38,000 euros. The hyper production of new homes in Skopje in the
past decade is not lowering the competition nor is it saturating the market, especially not in the municipalities of Centar,
Aerodrom, Kisela Voda and Karpos.
Demand in these zones is the highest
and the price per square meter has been
going upward for years. On the other

hand, in the municipalities on the left

bank of the Vardar much fewer homes
are built and even lesser is the demand in
new homes. The process of people moving out of these neighborhoods, which
used to make up the core of Macedonias
capital, has been unstoppable in recent
years. Apartments have been empty
for years and owners are selling them at
prices unthinkable to those on the other
side of the river.
The great differences in demand and
supply of real estate in different parts of

Skopje are the reason why in some neighborhoods apartments cost 1,200 and in
others 500 euros, say representatives of
real estate agencies.
The market sets the price. In one part
of the city there is great demand in apartments, more apartments are built and
prices are higher. In the other part of the
city, the pressure is smaller and prices are
formed accordingly, says Anton Kajtazi
of the real estate agency Dom-dizajn.

Completed residential
dwellings by type

Source:
The State Statistical Office

CADASTRE AGENCY TO IMPROVE SPATIAL DATA

INFRASTRUCTURE WITH DUTCH HELP
The project will be carried out from September this year until February 2017 by which time a new
and improved national strategy on spatial data infrastructure will be drafted

ith help from Dutch experts, the

Agency for Real Estate Cadastre is
going to improve the quality of its topographic maps and the national strategy on
spatial data infrastructure. To this effect,
the Kingdom of the Netherlands is going to donate 68,000 euros to the project
Optimized Use of Credible and Safe Spatial Data in the Republic of Macedonia.
The project will be carried out from
September this year until February 2017

by which time a new and improved national strategy on spatial data infrastructure will be drafted.
Bearing in mind the achievements in
the field of national spatial data infrastructure and mapping, its more than
certain that at this moment the support
from the Kingdom of the Netherlands is
welcome so that we can successfully continue what we have started in this area
with concerted efforts, said the Director

of the Agency for Real Estate Cadastre,

Slavce Trpeski.
According to the Deputy Ambassador
of the Kingdom of the Netherlands, Andri van Mens, the need for credible maps
is more than necessary in the everyday
life. The cooperation between the Macedonian and the Dutch cadastre authorities began ten years ago.

Macedonian Business MontHly

13

MISAJLOVSKI: INVESTMENT CYCLE OF

INFRASTRUCTURE OF OVER 1 BILLION EURO
T

he Republic of Macedonia has been

turned into a huge construction site
and all regions of the country are under
construction. This investment cycle continuously lasts for several years exceeding
one billion euro. It includes investments
in road, railway and communal infrastructure. This regards the construction
of highways, regional roads, rails, procurement of new trains and the construction or reconstruction of sewerage and
water supply systems, says Minister of
Transport and Communications Vlado
Misajlovski.
Thirty major projects in road network,
highways, regional and expressways are
ongoing, and for the first time in the
Republic of Macedonia the railway infrastructure took a serious approach.
We are talking about current investments worth over 200 million euro. Given that Corridor 8, which is one of the
most important Pan-European corridors,
passes through our country we started
with the biggest investments precisely

in the construction of tracks that will be

an alternative to Corridor 10, informed
Misajlovski.
The construction of highway section
Demir Kapija-Smokvica is in full swing.
According to the announcements of the
contractor, the construction works are
expected to be completed by the end
of the first quarter of next year, which
means that the entire route of 28 kilometers will be built and asphalted. On the

other hand, the construction of highway

Kicevo-Ohrid is the largest capital investment in the Republic of Macedonia
which costs over 370 million euro. Up to
this point, more than 30% of the total
construction works have been completed.
Skopje-Stip highway, an investment
worth 206 million euro is under active
construction and is expected to be completed by 2018.

Coridor VIII alignment as

defined in MoU

ZLETOVO, TORANICA, KAZAN DOL TO PERK UP

MACEDONIAS MINING NEXT YEAR
M

acedonias mining sector is expected to improve next year thanks

to the reactivation of the lead and zinc
mines Zletovo and Toranica, the copper
production in Kazan Dol, the plans of
building other mines, and the stabilization of Macedonias political situation,
said Nikolajco Nikolov, President of
the Macedonian Mining Association, at
Macedonias Economic Chamber.

In his opinion, the postponed signing

of concession documents because of the
ongoing political crisis could make investors withdraw and put their plans into
effect elsewhere.
He informed that in the first seven
months of this year, production in Macedonias metal industry dropped by 9.1
percent in comparison with the same
period of last year as a result of the inac-

tivity of Zletovo and Toranica. Last year,

on the other hand, the sector was in a
relatively good shape with exports of 150
million euros and imports of 110 million
euros. What alarms the people from the
sector, however, is the non-metal industry, on which they believe future growth
and investment plans should focus.

TRANSPORT

Thirty major projects in road network, highways, regional and expressways are ongoing, and for the first
time in the Republic of Macedonia the railway infrastructure took a serious approach

14

Macedonian Business MontHly

TOURISM

MACEDONIAS TOURIST POTENTIALS

PRESENTED IN FRONT OF TOUR-OPERATORS
FROM THE UNITED KINGDOM
Also, the Agency for Promotion and Support of Tourism promoted Macedonia in front of the British public through a campaign
in Aspire magazine, which targets the luxury travel community and reaches up to 200,000 readers in this sector

he Agency for Promotion and Support of Tourism

presented Macedonias tourist potentials in front of
hundreds of tour-operators from the United Kingdom and
Turkey
the world on tourism networking in London.
Serbia
The Macedonia Timeless brand was promoted in Great
Britain through the prestigious group Travel Weekly which
Greece
networks and informs the travel industry through its presti- Netherlands
gious magazine, internet edition and business services.
Bulgaria
Also, the Agency for Promotion and Support of Tourism
promoted Macedonia in front of the British public through a
Albania
campaign in Aspire magazine, which targets the luxury travel
Germany
community and reaches up to 200,000 readers in this sector.
Poland
Representatives from the Agency for Promotion and
Support of Tourism informed to have met with prominent
Croatia
names from the tourism sector, among which Expedia,
kosovo
Thomas Cook, New Market, Explorer Travel and
Italy
many others.
The autumn event Travel Weekly Roadshow, Travel
Slovenia
Weekly September Social is one of the total of nine events
USA
organized from this group on which the Agency for Promo0
tion and Support of Tourism promoted the Macedonian
culture, history, field activities and wine tourism.

Tourists by country of origin, 2015

20

40

60

80

100

thousands

FRENCH TOUR-OPERATORS TO ESTABLISH

CHARTER-FLIGHTS IN OHRID
According to marketing representative at TAV Airports, Serkan Karahatay the initiated new charter-flights
to Ohrid airport St Paul the Apostle attracted French tour operators and is very popular

rench tour operators, organized by

TAV Airports, visited the Republic
of Macedonia and considered including
Macedonia in their tours through the
Balkans by establishing regular charterflights to Ohrid airport St Paul the
Apostle.
-Representatives of six French tour
operators, among which TUI France
and Mondial Tourisme, were introduced
with Ohrid region beauties and tourism
possibilities, informed from TAV Macedonia.

According to marketing representative

at TAV Airports, Serkan Karahatay the
initiated new charter-flights to Ohrid
airport St Paul the Apostle attracted
French tour operators and is very popular.
-Tour operators have their own airline
companies and can fly to Ohrid in organized charter-flights and transfer tourists
from France and from other European
countries to Macedonia, stated Karahatay.
Bringing the biggest French outgoing
tour operators to Macedonia is part of

TAV Airports constant activities for attracting new airlines and new tour operators to Macedonian airports.
TAV Macedonia as part of TAV
Airports finished the first eight months
of 2016 with 19% increase in passenger
traffic at both Macedonian airports Alexander the Great in Skopje and St
Paul the Apostle in Ohrid, reaching
1,211,588 passengers. At the same time,
the number of flights increased by 12%
reaching a total of 11,459 aircraft operations.

Macedonian Business MontHly

15

In Macedonia there are over 8,000 beekeepers with more than 260,000 bee families. Markov urges the authorities to raise the subsidy
from 600 to 1,000 denars per bee family and to provide conditions for expanding the land on which honey plants are grown

he Beekeepers Federation of Macedonia is calling for higher subsidies

and help in turning the Macedonian
honey into a brand product, while complaining about a dropping yield and
mounting loss in 2016.
The Federation says it is important to
create conditions for production of highquality honey that will also be exported
and to protect end consumers from
honey imports that are frequently of unidentified origin.
We have recently been informed that
in the region of Stip almost 40 tons of
honey have been imported, driving the
price down to 190 denars per kg. The
wholesale price is over 250 denars but
considering this has been a bad year, we
have stopped at the protected price of
350 denars, says Jane Markov, President
of the Federation.

In Macedonia there are over 8,000

beekeepers with more than 260,000 bee
families. Markov urges the authorities
to raise the subsidy from 600 to 1,000
denars per bee family and to provide

conditions for expanding the land on

which honey plants are grown. According
to Saso Gjurovski from the Ministry of
Agriculture, migratory beekeeping is necessary to drive up honey production.

Village Gorna Matka

Regional accounts for agriculture

A

ccording to the data of the State

Statistical Office, in 2014, in the
creation of gross value added in agriculture at the country level, the Southeast
Region had the biggest share of 30.5%,
followed by the Pelagonia Region with
20.5%, while the Northeast Region
had the smallest share of 3.4%.
The creation of the total value of
Crop output in the Republic of Macedonia was dominated by the Southeast
Region with 35.8%, while the Polog
Region was the largest contributor to
the creation of the total value of Animal output with 20.6%.

Gross value added in agriculture in 2014, by regions

Skopje
9.9%
Northeast
3.4%

Vardar
13.3%
East
7.9%

Polog
11.0%

Southwest
3.5%

Pelagonia
20.5%
Southeast
30.5%

agriculture

BEEKEEPERS FEDERATION WANTS HIGHER

SUBSIDIES TO TURN MACEDONIAS HONEY
INTO a BRAND NAME

16

Macedonian Business MontHly

SEVENTEEN MACEDONIAN COMPANIES

PRESENTED ON THE FOOD FAIR IN MOSCOW
agriculture

In the first seven months this year, the Republic of Macedonia and the Russian Federation realized a joint trade exchange
of 92.9 million dollars compared to last years 127.2 million dollars in the same period, which is a drop of 27%

eventeen Macedonian companies

participated on the Food Fair 2016
in Moscow, informed from the Macedonian-Russian Chamber of Commerce
which organized companies participation
with the financial support of the Ministry
of Agriculture. On the largest food fair in
Southeast Europe, Macedonian producers and manufacturers of fresh fruits and
vegetables were presented at the national
stand of Macedonia located on 110 meters squared.
Besides the big company-exporters of
food in the Russian Federation, this traditional fair manifestation encompassed
guests and experts from the field of agrocomplex and a set of platforms, promotions and presentations were organized
which make this fair the largest food
market in this part of the world. Last
year, this fair in Moscow was visited by
65 thousand visitors.
In the first seven months this year, the
Republic of Macedonia and the Russian
Federation realized a joint trade exchange
of 92.9 million dollars compared to
last years 127.2 million dollars in the
same period, which is a drop of 27%.
However, from the Chamber stress that
the structure of exchange in this period
shows positive tendencies for the Macedonian economy. By the end of July
this year, the Republic of Macedonia increased the export to the Russian Federa-

tion for 48.9% and reduced the import

for 39.1% compared to the same period
of last year.
In this period, goods in the amount of
26 million dollars (last year were in the
amount of 17.5 million dollars) were presented on the Russian market, and 66.8
million dollars of goods (last year were in
the amount of 109.7million dollars) were
exported.
-This trade scope with big Russian
market contributed the trade deficit between the Republic of Macedonia and
the Russian Federation to halve and by
the end of July to reach 40.7 million dollars. However, we must stress that the
energy import from Russia isnt statistically marked as Macedonian import, announced from the Macedonian-Russian
Chamber of Commerce.

According to the Chamber, the demand for Macedonian agriculture products from Russian companies is increasing. In the past period, the number of
packages and quantities placed on this
big market has increased.
-Therefore, the presentation of Macedonian companies on the significant fair
manifestation World Food 2016, most
of which are traditional presenters every
year, is expected to attract numerous
business partners from Russia which will
contribute to further increase the Macedonian export. The example of the agrocomplex should be followed by the other
industries in the country as well, stressed
Dejan Beshliev Director of the Macedonian-Russian Chamber of Commerce.

GOVERNMENT TO PAY SUBSIDIES OF

3 DENARS PER KG OF VRANEC GRAPES
A

griculture Minister Mihail Cvetkov

said the Government was going to
pay wineries subsidies of 3 denars per kg
of the Vranec variety of grapes for quantities that are more than 60 but not over
130 percent of the quantities purchased
last year.

He explained that the decision was

taken following a meeting with wineries at which they said they were going to
reduce their purchase of grapes because a
lower price was offered on the European
market due to the abundant supply of
wines from many countries.

Estimates are that 30 to 35 million kg

of the Vranec variety will be purchased
this year. Cvetkov informed that over 43
million kg had so far been purchased,
of which 26 million kg are the Vranec
variety and the rest are other varieties of
grapes.