Business Bulletin Dec. 2015

7/25/2019 Business Bulletin Dec. 2015

1/16

Monthly

MACEDONIANBUSINESSMACEDONIANBUSINESSESTABLISHED 2001 No. 159 Vol. XV, 2015

ITALIAN COMPANY MONTANTE GROUPTO BUILD A PLANT IN BUNARDZIK

Italian Company Montante Group will construct a plant in IDZ Skopje 1Bunardzik in January next year and the initial investment is estimated at 10million euro. It is expected that the facility will be completed in late May or June2016, after which equipment will be installed and staff will be trained. Tis wasconfirmed with the signed contract for execution of investment between ClaudiaNidro, representative of Montante Group and Viktor Mizo, Director of theDirectorate of IDZ.

We decided to complete this investment, not only because of the assistanceprovided by the country, but also because of how Government treats allcompanies that invest in Macedonia, stressed CEO of Montante Group, AntonioMontante.

We were close to investing in another country, but thanks to theDirectorate of IDZ and the attractive conditions we have been offered, we

decided to come in Macedonia. o construct a plant in Macedonia is not an easyinvestment for the state but it is a positive know-how impact.

Montante Groupis one of the first threecompanies in Europethat produces highlysophisticated shockabsorbers for industrialand railway vehicles andit has already registered acompany in Macedoniaunder the name EuropeShock Absorbers.

Source: NBRM

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. So far, we developed TIDZ for all types

of plants regardless their field of operation,

and enabled creation of tourism development

zones, the legal documentation is finished

and now is time to attract investors to buildhotels and hotel complexes in the tourism

zones. The legal regulation for free healthcare

zones and free IT zones is currently being in the

Parliament procedure.

The adopted law on free healthcare zones

anticipates investors to build hospitals, who

mainly want to operate in health tourism,

treat foreign patients in Macedonia and

develop big medical centers. They will also be

allowed to admit Macedonian patients under

special conditions so that Macedonian private

hospitals outside the zone are not endangered

with competition.

INVEST IN MACEDONIA

NEW BUSINESS HEAVENIN EUROPE

2.2

4.5

1.0

2.7

4.0

4.5

0.0

1.0

2.0

3.0

4.0

5.0

0

50

100

150

200

250

300

350

400

450

2010 2011 2012 2013 2014 2015

FOREIGN DIRECT INVESTMENT

millions of EUR

2,0

6,2

4,2

2,0

4,8

7,0

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015

NET CAPITAL INFLOWS, % of GDP

millions of EUR % of GDP (right scale)

% of GDP (right scale)


2/16

MACEDONIANINFORMATIONCENTRE

Macedonian Information Centre

page 5 WELLKNOWN JAPANESE COMPANY

TO CONSTRUCT A HOTEL IN SKOPJE

page 8 THE TRAININGS FOR SCARCE

OCCUPATIONS EMPLOYED

OVER 600 PERSONS

page 11 FIVE NEW SPEEDWAYS TO BE

CONSTRUCTED IN 2016

page 13 NENOVSKI: SELLING TREASURY

BILLS IS GENERALLY

ACCEPTABLE INSTRUMENT

page 15 INCREASED THE SUBSIDIES

FOR FOREIGN TOURISTS

INSIDE

Government adopted laws that anticipate creation of I zones within thetechnological industrial development zones, separated with a fence, andregulated with special projects. Certain steps are being undertaken and projectsare being prepared for developing the I zones given the increased interest. Sofar, we developed IDZ for all types of plants regardless their field of operation,

and enabled creation of tourism development zones, the legal documentation isfinished and now is time to attract investors to build hotels and hotel complexesin the tourism zones. Te legal regulation for free healthcare zones and free Izones is currently being in the Parliament procedure.

Te adopted law on free healthcare zones anticipates investors to buildhospitals, who mainly want to operate in health tourism, treat foreign patientsin Macedonia and develop big medical centers. Tey will also be allowed toadmit Macedonian patients under special conditions so that Macedonianprivate hospitals outside the zone are not endangered with competition.Tis will attract investors to build foreign hospitals, and given the qualityconditions also stimulate healthcare tourism in the future. Tis is practicedin other countries as well. Te healthcare services in many Western countries

are so much higher than in Macedonia and we will work to provide the sametreatment in Macedonia.

IT AND FREE HEALTHCARE ZONES Continued from page 1


3/16

REASONS TO INVEST IN MACEDONIAEXPORT OF TEXTILE PRODUCTS The garment industry inMacedonia exports mainly to EU countries. 93 percent of the productionis organized by the CM or CMT (Cut, Make& Trim) system for foreignmarkets. Full production and own brand production is partly exportedand the rest is placed in the domestic market.

THE PROJECT FOR LAND PURCHASE As of 2009, is possiblefor the land purchase to be realized under favorable conditions witha discount of 30% if the companies pay it in cash at affordable price.So far, more than 2,500 companies have used the opportunity forland purchase under the Government Project launched in 2009, andsuch support and assistance to the business community will continue.

AGRICULTURAL LAND INVESTMENT OPPORTUNITY TheMinistry of Agriculture, Forestry and Water Economy as an authorizedbody has intensively been distributing agricultural land of good qualitywhich is in state ownership, that is granted under lease (for use during

the period of several years) to the interested investors, including foreignentities with established branch offices in the Republic of Macedonia

TEXTILE INDUSTRY With a long, rich tradition in clothing andtextiles, 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 cottonthread and fabric, wool yarn, fabric and knitted fabric.

RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT TheConstitution of the Republic of Macedonia guarantees an investorsright to property. No person may be deprived of his/her property orthe rights deriving from it, unless the use of that property affects thegeneral welfare of the public.

WHY INVEST IN AGRIBUSINESS IN MACEDONIA? ChallengesOpportunities the agriculture production and agribusiness sector arethe most important economic sectors of Macedonia. Almost 435.500

people, out of a population of 2.1 million, make whole or part of theirincome from agriculture activities. The great natural preconditions andan existing tradition enriched with newly developed skills create avariety of opportunities in agriculture, from high mountain pastures ofover 2000m high, to the rich water valleys with a Mediterranean climate.

CONSTRUCTION COSTS Numerous Macedonian constructioncompanies can build factories quickly to international standardsand at the most competitive prices in Europe. The average cost ofconstructing a factory building shell is between 170/m2 210/m2.Chart below shows the Price Level Indices for construction in selectedcountries in Europe as well as EU28 average indexed at 100. The saleprice of state-owned construction land for industrial and productionfacilities varies depending on the location, from 5/m 2to 40/m2.

MACEDONIA A BUSINESS SUPPORTIVE ENVIRONMENT Giv-en the need for speed in todays global marketplace, Macedonia is fastbecoming a major European service and distribution hub. You can set

up a company here in just four hours! The World Bank Ease of doingBusiness 2014report shows that Macedonia is a regional heavyweight

and 25th country in the World. Macedonia has also had a positiveForbes review coming 36th in a ranking of Best Countries for Business.

EXPORT PROMOTION STRATEGY In the process of preparationfor the exports, the companies need to conduct a research that willhelp them choose a market which will contribute to the maximizationof the benefits and minimization of the risks. The same research willalso help the managers decide not only on the markets to enter butalso on the modes of entry.

EXCELLENT INFRASTRUCTURE Macedonia is at the crossroadsof South Eastern Europe, which makes it an ideal transit and distribu-tion center for products for European markets. The developed roadand railway infrastructure, in combination with the s mall area of thecountry enables access to every inhabited place in Macedonia in lessthan 3 hours. The Railway infrastructure in the Republic of Macedoniahas been put in place since 1873, when the first Railway Track from

Skopje to Thessaloniki in Greece has been constructed. Macedonianrailway network system is connected north-south with the railwaynetwork systems of Serbia and Greece.

LABOR LEGISLATION The recently enacted new Labor Law, pre-pared in accordance with the EU standards, provides increased flexibilityof the labor market by offering and promoting flexible and different em-ployment contracts and flexibility of working time. Also, reforms in thissphere have introduced training programs, support for entrepreneurs, aswell as improvement of the overall business climate. The average grossmonthly salary in 2013 is 502. This amount includes the net salary,personal income tax and social contributions for pension and disabilityinsurance, health insurance and employment insurance. The minimumsalary for each professional branch is defined by Collective agreements.

FREE HEALTH ZONES Health tourism, attracting foreign capitalto introduce new health methods and procedures, transfer of newtechnology, increased competitiveness, employment and quality

of the higher education offer in the field of medicine are part of thebenefits expected from the establishment of free health zones. Thewhole concept is designed to establish a health zone over a greaterterritory which is likely to be in Skopje on 1520 acres for hospitalsfounded and built by foreign companies.

INCREASED SUBSIDIES FOR TOURISTS FROM SERBIA, BULGARIA

AND BOSNIA AND HERZEGOVINA The Government decided toincrease the amount of subsidies for attracting tourists from Bosniaand 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 hasemerged as one of the most dynamic sectors of the Macedonianeconomy. With a growth rate of 7.7% in 2009, the Macedonian soft-ware 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 softwareindustry and its enormous potential for exports.

MODERN DIGITAL TELECOMMUNICATIONS NETWORK TheMacedonian Information Technology market has marked anothersignificant growth in 2009 of 7.7%, reaching $164.5 million. Over thefive-year forecast period, the countrys IT market is expected to expandat a compound annual growth rate (CAGR) of 5.2%, and reach $212million in 2014. Hardware is the largest and most dynamic segmentof 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 over650 million customers through three multilateral (SAA, EFTA andCEFTA) 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 thenumber of employees. Land in a TIDZ in Macedonia is available underlong-term lease for a period of up to 99 years

400,000 EURO INVESTMENT THE ROAD TO OBTAINING M ACE

DONIAN CITIZENSHIP Foreign nationals who are residents of theEU 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 tobe 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-competitivelocations in Europe

EXCELLENT GEOSTRATEGIC POSITION Goods delivered withina day to Central and Eastern Europe and Turkey, and maximum twodays to Western Europe

FAST COMPANY REGISTRATION One-stop-shop system for

company registration within 4 hoursEXCELLENT INFRASTRUCTURE Wireless national backboneinfrastructure, digital telecommunications system, extensive highwaynetwork, two international airports with regular connections to mainEuropean transportation centers

RESPONSIVE EDUCATIONAL SYSTEM Universities willing tocollaborate with incoming investors in meeting the required skills

EXCELLENT FOREIGN LANGUAGE SKILLS English widelyspoken, French and German embedded in the education system,regional languages in wide use

AVAILABLE SKILLED WORKFORCE A young (42% under theage of 30) and educated workforce with a strong work ethic andexcellent industrial relations record

HIGH QUALITY OF LIFE Highly attractive living and workingconditions

POLITICAL, MONETARY AND MACROECONOMIC STABILITYEU AND NATO CANDIDATE COUNTRY

I N V E S T M E N T C L I M A T E

he 13.1 percent growth of industrialproduction in October marked thehighest growth this year and will con-tribute for boosting the overall growthof industrial production, stressed PrimeMinister Nikola Gruevski.

After the stagnation in the months ofApril, May and June, the situation startedimproving, because it was a result of the

political crisis and after surpassing thecrisis, the industrial production startedincreasing and reached 13.1 percent inOctober. In the period January-Octoberthe GDP growth was 3.6 percent andwe also anticipate high growth rate ofindustrial production in the months ofNovember and December. Tat will con-tribute for increased profits and opening

of new work places. Tis is due to thenumerous measures and projects Govern-ment realized in order to improve thebusiness climate and create better condi-tions for business. We will continue tomake efforts and improve the businessclimate and enable companies to havebetter results and open as many jobs aspossible, said Gruevski.

GRUEVSKI: THE INDUSTRIAL PRODUCTIONGROWTH WILL BOOST THE ECONOMYThis is due to the numerous measures and projects Government realized in order to improve

the business climate and create better conditions for business


4/16

NEWINVESTMENTS

F.A.M.E.S representatives andMayor of Gazi Baba Municipalitysigned the contract for constructing acultural center and a film music record-ing studio and the contract for purchaseof state construction land in Municipal-ity Gazi Baba. Te contract anticipatesconstruction of two facilities, a culturalcenter located on 543 meters squaredand a film music recording studio lo-

cated on 1,194 meters squared.-Tis company has already beenworking in Macedonia for several yearsnow, recording film and other orches-tra music for the global film industry.Many film music tracks were composed

and created in Macedonia in the pastperiod, by that leaving footprint onnumerous Hollywood movies andglobal commercials. Te presence ofF.A.M.E.S in Macedonia in the pastseveral years, contributed for establish-ing great cooperation with the Mace-donian Philharmonic, MacedonianOpera and Ballet and many outstandingMacedonian artists and musicians - said

PM Gruevski.He stressed that investing in the newfilm music recording studio, which israre phenomenon on the Balkans, willadditionally deepen and intensify thecooperation and contribute for the

long-term engagement of over 100Macedonian artists.

F.A.M.E.S representatives stressedthat eight years ago they started thecreation of the symphonic orchestra inMacedonia, intended to create musicprojects in Skopje. Te Minister for

Attraction of Foreign Investments, BilPavleski stressed that the realization ofthis green-field investment proves that

foreign investors are not only attractedby the favorable tax system and com-petitive prices on the Macedonian labormarket, but also by our human and in-tellectual potential.

According to the State Statistical Of-fice data, in the 2014/2015 season,compared to 2013/2014, the number ofperformances at professional theatres in-creased by 5.6 percent, while attendanceincreased by 14.3 percent.

Te average attendance per perfor-

mance was 222 visitors. In the period2014/2015, compared to 2013/2014, the

number of performances at professionalyouth and childrens theatres decreased by4.2 percent, while attendance decreasedby 7.1 percent.

In amateur theatres, for the sameperiod, the number of performancesdecreased by 20.4 percent, and the num-

ber of visitors decreased by 7.6 percent.In 2014/2015, in comparison with

2013/2014, the number of concerts ofthe Philharmonic decreased, while atten-dance increased.

Regarding the professional folk danceand song ensemble, in 2014/2015, com-pared to 2013/2014, there was a decreasein the number of concerts, and the num-

ber of visitors decreased.

FRENCH COMPANY F.A.M.E.STO CONSTRUCT A MUSIC PRODUCTION CENTERThe presence of F.A.M.E.S in Macedonia in the past several years, contributed for establishing great cooperation with the Macedonian

Philharmonic, Macedonian Opera and Ballet and many outstanding Macedonian artists and musicians - said PM Nikola Gruevski

THEATRES, PHILHARMONIC AND PROFESSIONALFOLK DANCE AND SONG ENSEMBLES, 2014/2015

NATIONAL PHI LHARMONIC, 2014/2015

Total

Concerts Broadcast concerts on:

Total

Guest

appearances in

other countries

Total

Guest

appearances in

other countries

Radio

programme

TV

programme

1 31 34 106 2 000 8

1 38 21 900 6 6

1 31 19 850

1

1 2 000 9 9

Republic of Macedonia

2014/2015

2013/2014

1 38 29 000 6 62012/2013

2011/2012

Source: State Statistical Office


5/16

N E W

I N V E S T M E N T S

he Macedonian Embassy in okyoorganized a business forum andpresented the investment opportunitiesbefore Japanese businessmen. Ministerfor Attracting Foreign InvestmentsGoran Mickovski and Macedonian

Ambassador in okyo, Andrijana Cvet-kovik presented Macedonia as a favor-able business destination. Tirty-some

Japanese companies in various fields,including HONDA, NEC, Marubeni,Mitsui, participated at the businessforum.

Minister Mickovski presented the in-vestment opportunities and shared thesuccessful stories of foreign companieswhich invested in Macedonia.

Macedonian Ambassador in okyo,Andrijana Cvetkovik also addressed theforum and underlined Embassys ef-forts put into developing the economicdiplomacy, mentioning the businessforum held in April this year and thenumerous meetings and seminars oninvestments with Japanese companies.

As a result of the activities and effortsof this Embassy, a Japanese company inthe hotel industry announced its readi-ness to build a hotel in Skopje in 2016,an investment which is anticipated tocreate hundred new jobs. Another lead-

ing company in the field of distributionand trade is already negotiating withone Macedonian company for makinga business cooperation which will openthe doors to Japanese investments.

ehnoplast is the first domesticcompany to sign an investmentagreement in the technological-indus-trial development zone Skopje 1-Bu-nardzik. Te company will invest EUR10 million and open 200 jobs. Te firststage includes the plant constructionand equipment procurement, whilethe second will focus on technological

development, both spanning over aperiod of ten years.

Directorate for echnological Indus-trial Development Zones (DIDZ)CEO Viktor Mizo and ehnoplastowner Borce odorovski signed theagreement, in attendance of PrimeMinister Nikola Gruevski, and VicePremiers Zoran Stavreski and VladimirPesevski.

Te company will manufacture

tools and plastic components for theautomotive, electrical and electronic

industries. Te entire productionwill be exported. We aim at real-izing the existing projects we havealready launched with companies suchas BMW, Audi and Renault, sup-ported by our suppliers. Our goal isto enhance cooperation with foreigninvestors in the industrial zones, saidodorovski.

WELLKNOWN JAPANESE COMPANYTO CONSTRUCT A HOTEL IN SKOPJE

As a result of the ac tivities and effor ts of this Embassy, a Japanese company in the hotel industry announced its readiness to build a hotel in

Skopje in 2016, an investment which is anticipated to create hundred new jobs. Another leading company in the field of distribution and tradeis already negotiating with one Macedonian company for making a business cooperation which will open the doors to Japanese investments

TEHNOPLAST TO INVEST

EUR 10 MILLION IN SKOPJE ZONE

ARRIVALS OF FOREIGN TOURISTS IN HOTELS

Hotels**** Hotels*** Hotels** Hotels*

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

2010 2011 2012 2013 2014

Hotels*****



6/16

ECONOMY

he number of domestic companiesthat actively cooperate with foreigndirect investors continuously grows. Atthe moment, over 500 domestic compa-nies cooperate with foreign investors. Teprimary anticipations were that domesticcompanies would earn 30 million eurofrom the cooperation with foreign inves-tors, but this figure reached 50 million, as

the number of investors on the domesticmarket increases. A good example ofthis are companies from the construc-tion industry which collected a total of26 million euro in the past two years ofcooperation with foreign investors for theconstruction of plants in the industrialzones and for infrastructure regulation.

Experts stress that both sides benefitfrom this. Domestic companies have morework and continuously develop, they gettransfer of knowledge and are introducedto new technologies and standards, theircompetitiveness increases and they alsohave the opportunity to export on foreignmarkets. Foreign companies have lowerprocurement expenses and swift deliverytime. Te result is increased economicgrowth and creation of new jobs.

-Data shows that around 500 domesticcompanies currently cooperate with for-eign investors. Te work, the production,

and services expand and create indirectemployments. Tis gives opportunityto cooperate with domestic educationinstitutions, both Universities and highschools. Te foreign trade strengthensand the export from industrial zones in-creases. In general, the economy is grow-ing, the production is increasing, andthe export rises - stressed Alek Nikovski,

PMs advisor on foreign investments.According to market experts, thehighest cooperation is in services andconstruction. Foreigners use the servicesof domestic companies. In the upcoming

period, it is expected that there will beincreased cooperation in most sectors inMacedonia.

Te level of cooperation between for-eign investors and domestic companies isvery high, businessmen confirm.

-Establishing the starting line for in-vestors needs, regardless if it is a matterof raw material or any other service or

product that Macedonian companies canprovide. Te key is in quality and com-petitiveness and Macedonian companiescan provide that - stress from the Federa-tion of Economic Chambers.

DOMESTIC BUSINESS GROWSVIA FOREIGN INVESTMENTS

At the moment, over 500 domestic companies cooperate with foreign investors. The primary anticipations were that domestic companies would earn

30 million euro from the cooperation with foreign investors, but this figure reached 50 million, as the number of investors on the domestic marketincreases. A good example of this are companies from the construction industry which collected a total of 26 million euro in the past two years

According to Deputy Prime MinisterZoran Stavreski, presence of VanHool in the Republic of Macedonia,as an important Belgian company,contributes for attracting investmentsfrom this region, since the companiesare aware of this successful investmentstory in the Republic of Macedonia.

I expect several companies tovisit our country in the next two-three

months, following the discussions wehad with the businessmen and theirinterest and for some of these visits toresult in new investments and job cre-ation, Stavreski underlined.

Belgium is among the ten biggesttrading partner of Macedonia. Tetrade with this European country con-

tinuously increases from year to year.Te trade with Belgium in the first 10

months of this year amounted to US$155.9 million, US$ 101 million out ofwhich was related to the export fromMacedonia. Last year, trade increasedby 9.6%, while export from Macedoniato Belgium grew by 3.4%.

BELGIAN COMPANIES INTERESTEDIN INVESTING IN MACEDONIA

INDICES OF INDUSTRIAL PRODUCTION

80

90

100

110

120

130

140

150

160

X'14 XI XI I I '15 I I I I I IV V VI VI I VI I I I X X

2010=100



7/16

E C O N O M YS

tarted the construction of a plant forproduction of inflators for airbags

AR Automotive Macedonia in IDZBunardzik, which is an investment of USCap-Con Company.

-Tis is a proof that companies areinterested in investing in our country,and a confirmation of the existing ratingsof Macedonia as one of the top businessdestinations in Europe. It is also a confir-mation of the downward trend of unem-ployment that is noted by all internation-

al institutions, stressed PM Gruevski.Te factory possesses the most mod-ern equipment and highly sophisticatedproduction lines which will challengeMacedonian professionals to apply forwork.

-Te primary investment is estimatedat 18 million dollars, the new plantwill open 400 new jobs, 75 of whichhave already been employed and startedworking. Te Company will be export-oriented and will produce inflators forairbags, primarily for the Europeanmarket, stressed Gruevski. He welcomedCompanys openness towards coopera-tion with several Macedonian companiesthat should provide materials for theneeds of AR Automotive Macedonia.

-Te biggest benefit from the openingof the new plant is the attention it willdirect towards all other companies whichare still considering and reviewing the op-portunities to invest in Macedonia. Newfactories are our biggest promoter andI hope that the example of Cap-Con

Company will be followed by many com-panies worldwide - Gruevski highlighted.

AR Automotive Macedonia will belocated near Visteon, Johnson Mat-they, eknoHose, Kemet Electron-ics, Van Hool, Prodis, Diatek, andsoon Montante Group.

he management of brick factoryKiro Kjucuk in Veles announcedrestarting of their production in Februarynext year. After being dormant and bank-rupt for so long, this factory was sold toMacedonian-urkish Company EuroBrick Company on the 19th of Octoberfor 1.1 million euro.

odor Kocov, Director of KiroKjucuk informed that they engaged 30

former workers to repair, clean and fixthe machinery. Tey plan to engage 150workers in February to operate in theplant for production of blocks, whichwill first start operating.

-Te primary investment will be 1.5 - 2million euro, and given the long periodof stagnation almost 80 percent of the

equipment in the factory for bricks is invery bad condition, informed Kocov.

Other than bricks and constructionmaterials, this factory will introduce newproducts following the needs on the mar-ket. Tey submitted concession requestto the Ministry of Economy for clay-pumping, which is the main raw materialfor production.

KIRO KJUCUK BRICK FACTORY TO BE RESTARTEDOther than bricks and construction materials, this factory will introduce new products following the needs on the market. Theysubmitted concession request to the Ministry of Economy for clay-pumping, which is the main raw material for production

CAPCON TO OPEN 400 NEW JOBSART Automotive Macedonia will be located near Visteon, Johnson Matthey, TeknoHose,

Kemet Electronics, Van Hool, Prodis, Diatek, and soon Montante Group

TIDZ SKOPJE 1


8/16

LABOURMARKET

Im very satisfied with this project.Our goal was to increase employmentand things are going well, because wevehad over 10.000 people hired underthe program, in 6.750 different compa-nies. Te numbers keep growing each

day, and the companies are recognizingthe potential benefits of the program,Gruevski said.

Employing Macedonia provides breaksin the significant salary taxes for up tofive years, if companies hire long term

unemployed persons, veterans, youth,elderly workers and single parents.

Te project has a strong social compo-nent, being focused toward reducing un-employment in these groups, Gruevskisaid.

Given the positive effects and re-sults, Government anticipatescontinuing the training project, in-tended to improve the skills and knowl-edge of unemployed persons in orderto make them more competent on thelabor market. Data shows that over 600persons were employed after havingcompleted the training. In 2016, thisproject will be implemented in coop-

eration with the EU, and Governmentsecured funds to encompass 650 ad-ditional persons. Te open call will bepublished in January.

-Te training program is implementedby private companies, economic and

trade chambers, and it lasts for threemonths. Te state pays the trained per-sons 100 euro each, and after completingthe training they receive a certificate,

said Aleksandar Gjorgiev, Governmentsspokesperson.

According to Governments anticipa-tions, the open call will encompass un-employed persons to apply for trainingfor travel guides, construction workers,vendors, service workshops, textile work-shops, bakers, sellers and other. Some ofthe trainings will encompass occupationsfor the need of foreign investors. Te

most significant result from these train-ings is the fact that over 60 percent of thepersons were offered full time jobs in thecompanies.

THE TRAININGS FOR SCARCE OCCUPATIONSEMPLOYED OVER 600 PERSONSIn 2016, this project will be implemented in cooperation with the EU, and Government secured funds

to encompass 650 additional persons. The open call will be published in January

GRUEVSKI: EMPLOYING MACEDONIA TAXBREAKS PROGRAM LED TO 10.100 NEW JOBSThe Employing Macedonia program, offers tax breaks for companies that hire people from a long list of vulnerable categories

LABOUR FORCE AND ACTIVITY RATES

Labour forceTotal working age

populaon

Employment

rateAcvity

rate

Unemployment

rateTotal Employed Unemployed

2014 1 673 494 958 998 690 188 268 809 57.3 41.2 28.0

2014/III 1 673 056 958 393 690 965 267 428 57.3 41.3 27.9

2015/I 1 675 607 959 388 697 248 262 140 57.3 41.6 27.3

2015/II 1 676 400 956 174 699 578 256 596 57.0 41.7 26.8

2015/III 1 677 037 954 610 711 380 243 230 56.9 42.4 25.5

Source: Te State Statistical Office

Some of the trainings will

encompass occupations for the

need of foreign investors.


9/16

C O N S T R U C T I O N

Governments projects Buy a House,Buy an Apartment and Buy ahouse for young people are the maindrivers of construction. Te first projectis already operational and the other isbeing announced, but both are intendedto install a new impulse in the construc-tion sector and in the other connectedbranches, stress businessmen.

Te project Buy a House, Buy an

Apartment is of national interest forthe Republic of Macedonia. I expectexpansion in the construction of houses.Civil engineering is a branch connectedwith additional 26 branches regardingsuppliers and manufacturers, selling ma-terials, furniture and everything encom-passed in the household, stressed Rob-ert Hot President of the ConstructionChamber. President of the Federation ofEconomic Chambers Daniela Arsovskaconsiders that a new investment cycle is

anticipated in the construction sector byincreasing the personal consumption.

One of Governments goals is to boostthe construction sector.

-Tis is how we additionally supportthe construction sector and construc-tion companies in Macedonia which haspositive contributions regarding theirincreased profitability and the openingof new jobs in the construction sector,

said Prime Minister Nikola Gruevski.So far, 4.7 million euro in subsidiesfor housing loans have been issued forthe project Buy a House, Buy an Apart-ment and almost 730 families solvedtheir housing issue.

-Te project resulted in positive shiftson the market, by increasing the finan-cial-economic turnover and increasedthe demand of apartments which wasbeneficial for the citizens, the investorsand the producers of construction ma-

terials, assessed CEO of Adora VancoCifliganec.

Tis project enabled citizens to solvetheir housing issue and it resulted indecreased price of meter squared perapartment, and reduced interest rates forhousing loans. In the past several years,the price of meter squared per apart-ment decreased for around 100 euroand caused housing loans to increase for

73 million euro in one year, which is arecord-breaking growth of 18 percent.-When interest rates are low and drop-

ping, economic subjects invest in real-estate or in shares, therefore we noticesignificant shifts in real-estate purchaseby Macedonian citizens. At the moment,the interest rates for housing loans areamong the most favorable ones in therecent history of the Republic of Mace-donia, said CEO of Sparkasse BankGligor Bisev.

According to the State Statistical Office data, in theperiod January-September 2015, the total value ofcontracted construction works abroad was 3.2 milliondenars, which is 53.3 percent less compared with thesame period of the previous year.

In the specified period, the construction enterprisesfrom the Republic of Macedonia have completed con-struction works abroad totaling 1.9 million denars,which is 102.6 percent more compared with the sameperiod of the previous year.

In the reference period, there was an increase in thevolume of completed construction works in Kosovo,

Albania, Italy, Serbia, Croatia, Bosnia and Herzegovinaand the Netherlands, while a decrease was registered in

the other countries. Poland, Slovenia and Greece appearas new markets.

GOVERNMENTS PROJECTS DRIVETHE CONSTRUCTION SECTOR

So far, 4.7 million euro in subsidies for housing loans have been issued for the project Buy a

House, Buy an Apartment and almost 730 families solved their housing issue

VALUE OF CONTRACTED AND COMPLETEDCONSTRUCTION WORKS ABROADIn the reference period, there was an increase in the volume of completed construction works in Kosovo, Albania, Italy, Serbia, Croatia, Bosnia and

Herzegovina and the Netherlands, while a decrease was registered in the other countries. Poland, Slovenia and Greece appear as new markets

VALUE OF COMPLETED CONSTR UCTION WORKS ABROAD (period IIX 2015)

0 200 000 400 000 600 000 800 000 1 000 000 1 200 000

in thousand denars

I - I X 2015Greece

Bulgaria

Kosovo

Austria

Poland

Germany

Serbia

Croatia

Netherlands

Italy

Bosnia and Herzeg.



10/16

ENERGY

Macedonia and Albania are smallcountries and have need of mutualenergy connection that is of interest toboth countries. Tese projects mean newregional energy market which is goodfor both countries and the entire region,concluded Minister of Economy of theRepublic of Macedonia Bekim Neziriand Minister of Energy and Industry of

Albania, Damian Gjiknuri at the meetingin Struga, at which was signed Memo-randum of cooperation between the twocountries in the energy field.

Te signing of this agreement con-firms segments of cooperation in the

fields of energy efficiency, oil and oilproducts, electricity production throughsmall hydro power plants and windmills.By signing we confirm that this coopera-tion will continue, stated Neziri.

He recalled the agreement signed byMEPSO and EBRD for loan for the con-struction of interconnection line betweenMacedonia and Albania, that is, connec-

tion with interconnection line of 400 kVline between the two countries.Te cooperation we have with Bulgar-

ia and Serbia on the energy market, andwith the interconnection with Albania,a project that should be completed by

2018, we made the Republic of Macedo-nia to be the link in the regional energymarket, stated Neziri.

Te Albanian Minister of Energy andIndustry Gjiknuri, following the meetinginformed that the two countries have aremarkable progress for realization of theproject for the construction of the inter-connection Bitola - Elbasan and expects

that in 2017 there will be concrete steps.At the meeting the two Ministers alsodiscussed the gasification, specifically forthe project AP and ANAP, whichwill supply the region and even Europefrom the Caspian Sea.

So far, thirty five small hydro-powerplants have been constructed andstarted operating, and five others willstart working in January, following the

decision for construction of 65 plants.About EUR 130 million have been in-

vested in this project so far, Prime Minis-ter Nikola Gruevski said.

Te investment funds for all 65 powerplants should reach up to EUR 200 mil-

lion, Gruevski said. He expects thesesmall hydro-power plants to open at

least 100 jobs and above all substantiallycontribute to Macedonias electro powersystem.

MACEDONIA AND ALBANIA WILL COOPERATEIN THE ENERGY SECTORWith the cooperation we have with Bulgaria and Serbia on the energy market, and with the interconnection

with Albania, a project that should be completed by 2018, we made the Republic of Macedonia to be the link inthe regional energy market, stated Minister of Economy of the Republic of Macedonia Bekim Neziri

Next year, the need of energy prod-ucts will increase for 4 percent

for the consumption of electricity, gasand oil, and all segments will mark agrowth - shows the data for the energybalance sheet for 2016. 35 percent ofthe total electricity need will be im-

ported. It is expected that the turbinesof hydro power stations will slowdown and the production of thermalpower stations will reduce.

Second year in a row, traffic marksthe highest consumption of energyproducts. Te industry spends almost

as much as households. It is necessaryto introduce gasification in order toreduce the electricity consumption,stress from the Macedonian Energy

Association.

ENERGY BALANCE SHEET FOR 2016

THE NEED OF ENERGY PRODUCTS WILL INCREASE

ABOUT EUR 130M INVESTED IN CONSTRUCTIONOF 40 SMALL HYDROPOWER PLANTS


11/16

T R A N S P O R T

FIVE NEW SPEEDWAYSTO BE CONSTRUCTED IN 2016Last year, we started the construction of the railway track from Bitola to Greece, and continued the reconstruction of the

railway track on Corridor 10. In 2015, five new destinations were introduced on Skopje airport and two new destinationswere introduced on Ohrid airport, Transport and Communications Minister Vlado Misajlovski stressed

ENVIRONMENTAL PROTECTION EXPENDITURESThe share of expenditures on air protection is 12.8 percent

ransport and Communications Min-ister Vlado Misajlovski stressed thatfive new speedways will be constructedand six regional roads will be reconstruct-ed in 2016. According to him, 2015 wasthe most successful year so far in the fieldof transport, and will be remembered bythe highest number of investments. Asfor the road infrastructure, a total of 400

kilometers in road network was effectuat-ed. In addition, three new highways wereunder construction, and two additionalhighway sections 165 kilometers long

were reconstructed, an investment worth800 million euro.

-We worked hard on the constructionof highway Demir Kapija - Smokvica 28kilometers long, an investment worth210 million euro. We expect this highwayto be completed next year. Te secondhighway Kicevo - Ohrid is the biggest in-vestment so far, worth 374 million euro.

By the end of this year, 14 percent of theconstruction works was completed. Wecontinued working on the constructionof Skopje - Stip highway, 47 kilometers

long, and an investment worth 206 mil-lion euro. By the end of the year, wecompleted 34 percent of the constructionworks, said Misajlovski.

Last year, we started the construc-tion of the railway track from Bitola toGreece, and continued the reconstructionof the railway track on Corridor 10. In2015, five new destinations were intro-

duced on Skopje airport and two newdestinations were introduced on Ohridairport.

According to the data of the StateStatistical Office, the total environ-

mental protection expenditures in 2014amounted to 6.6 million denars. In2014, the share of environmental protec-tion expenditures as a percent of GDPamounted to 1.3 percent.

Te total environmental protectionexpenditures are allocated by ecologicaluse as follows: the greatest is the share ofexpenditures on circulating water sup-ply (25.2 percent), followed by the shareof expenditures on waste management

(17.7 percent) and expenditures on wastewater management (16.0 percent). Teshare of expenditures on air protection is12.8 percent.

Environmental expenditures includetwo components: investments in assetsfor environmental protection and ex-penditures on maintenance of assets forenvironmental protection. Te share ofinvestments in the total environmentalprotection expenditures amounted to44.5 percent, and the share of expendi-

tures on maintenance of assets for envi-ronmental protection was 55.5 percent.

Te share of investments in assets forenvironmental protection in the invest-ments in fixed assets amounted to 2.4percent.

Of the total environmental expen-ditures, the greatest amount was madein the industry sector and specialized

producers, 4.8 million denars, i.e. 73.9percent.

Of the total environmental expendi-tures made in the industry sector andspecialized producers, 31.5 percent wereintended for investments and 68.5 per-cent for asset maintenance.

SHARE OF ENVIRONMENTAL PROTECTION EXPENDITURES IN TOTAL INVESTMENTS

AND EXPENDITURES, ACCORDING TO USE

Air protection

12.8%

Other

44.4%

Circulating water

supply

25.2%

Waste management

17.7%



12/16

NEWMARKETS

In cooperation with the SingaporeBusiness Federation, the Minister

for Attraction of Foreign Invest-ments, Goran Mickovski presentedMacedonias investment opportuni-ties before 40-some leading compa-nies from Singapore.

It mostly regards companies fromproduction, finances, logistics andtransport, tourism and real-estate.

Singapore Business Federation wasfounded with the decision adoptedby the Parliament, and it currentlycounts over 21,500 companies with

a starting capital of over half a mil-lion Singapore dollars.

In the period 2007-2015, 2.3 billioneuro in foreign direct investments en-tered Macedonia, which is a four timesincrease compared to the period 2003-2006, calculated Finance Minister ZoranStavreski.

Te total number of 2.3 billioneuro is a great figure, because it regardsgreen-field investments unlike in othercountries which invest in real-estate,

hotel-keeping etc. We invest in plants,especially for the automotive industrywhich creates many jobs and increasesthe export, explained Stavreski.

According to him, the growth of in-vestments is a result of the improvedbusiness climate and sustainable level oflow taxes, Governments great policiesto attract investments, the implementedreforms in education and other factors.

Stavreski stressed that the most im-portant thing is that the plants areconstructed in cities all over Macedonia,in all regions, for example Key SafetySystems in Kicevo, ODW Elektrik in

Ohrid and Struga, Johnson Matthey inStip, Gentherm in Prilep, etc.

It is a matter of significant invest-ments which are a result of the long-termand serious approach for attracting for-eign investments, stressed Stavreski. He

highlighted that the foreign investmentscontribute for Macedonias production ofmodern high-tech products, for exampleMontante and Gentherm whichmanufacture automotive parts for Bent-ley, Porsche BMW, etc.

STAVRESKI:2.3 BILLION EURO IN FOREIGNDIRECT INVESTMENTS ENTERED MACEDONIA

According to him, the growth of investments is a result of the improved business climate and sustainable level of low taxes,

Governments great policies to attract investments, the implemented reforms in education and other factors

MACEDONIAS INVESTMENT OPPORTUNITIES

PRESENTED BEFORE SINGAPORE BUSINESSMEN

HIGH CREDIT RATINGS

CREDIT RATINGS 2014

Standard & Poors: BB- (Stable)

Fitch: BB+ (Stable)

LOW INFLATION

INFLATION

Low inflation:


13/16

B A N K I N G

Professor ome Nenovski assessed that

the Ministry of Finance often sellstreasury bills in order to create sufficientliquidity for financing current budgetaryneeds and cover the budgetary deficit.

-We should have in mind that everyauction first implies indebtedness, andafterwards the country pays the debt tothe banks based on the issued registered

treasury bills from the previous period -

explains Nenovski.Introducing state bonds and selling

them as financial instruments, accordingto the professor, is generally acceptableinstrument in the developed countries,especially in the Western economieswhere countries issue state bonds, in aform of treasury bills or securities, in or-

der to secure funds on the financial mar-

ket for financing budgetary needs.-Tis is applied in almost every West-

ern country, especially in the USA whichhas the highest budgetary deficit, whichis usually financed by issuing the so calledtreasury bills or state records - addsNenovski.

According to the data of the StateStatistical Office, the index of theaverage monthly gross wage paid peremployee in October 2015, comparedto October 2014, was 102.4. Tisincrease is caused by the increase ofthe average monthly gross wage paidper employee in the sectors: Arts,entertainment and recreation (28.7%),

Administrative and support serviceactivities (9.3%) and other serviceactivities (8.3%).

An increase in the average monthlygross wage paid per employee comparedto the previous month was recordedin the sectors: Mining and quarrying(3.9%), Construction (3.4%) and

Wholesale and retail trade; repair ofmotor vehicles and motorcycles (2.7%).

Te average monthly gross wagepaid per employee in October 2015was 32 597 denars. In October 2015,

1.2% of the employees in the Republicof Macedonia did not receive anypayment.

As of January first, minimal wages willincrease - announced PM NikolaGruevski, stressing he kept his promise.

-Starting from the 1st of January 2016,the current minimal salary of 9,590 de-nars will increase to 10,080 denars for all

industrial occupations, as it was prom-ised, except from the textile and leather

industry where salaries will increase from8,050 to 9,000 denars, which is almost a1000 denars increase.

It is anticipated these two occupationsto be leveled with the other industrial oc-cupations, stressed the Prime Minister.

NENOVSKI: SELLING TREASURY BILLSIS GENERALLY ACCEPTABLE INSTRUMENT

AVERAGE MONTHLY GROSS WAGE PAID PER EMPLOYEE, OCTOBER 2015

In October 2015, 1.2% of the employees in the Republic of Macedonia did not receive any payment

MINIMAL WAGES

TO INCREASE

STARTING FROM

NEXT YEAR

AVERAGE MONTHLY GROSS WAGE PAID PER EMPLOYEE, OC TOBER 2015

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

A B C D E F G H I J K L M N O P Q R S


A Agriculture, forestry and fishingB Mining and quarryingC ManufacturingD Electricity, gas, steam and air conditioning supplyE Water supply; sewerage, waste management and

remediation activitiesF ConstructionG Wholesale and retail trade; repair of motor vehicles

and motorcyclesH Transportation and storageI Accommodation and food service activities

J Information and communication

K Financial and insurance activitiesL Real estate activitiesM Professional, scientific and technical activitiesN Administrative and support service activitiesO Public administration and defence; compulsory

social securityP EducationQ Human health and social work activitiesR Arts, entertainment and recreationS Other service activities


14/16

ECONOMY M

acedonia is one of the rare coun-

tries in Europe to have statisticaldata for female entrepreneurship, andactively works towards creating a nationalstrategy to define and significantly im-prove this segment of the economy. TeMacedonian economy counts 33 percentfemale entrepreneurs which is close to theEuropean level. Most of them are hold-ers of micro and small enterprises in theservice sectors, who opened their ownbusiness in order get employed and notfor business purposes.

Tis means that they dont have a lotof working capital and dont make a lotof profit, most of them are self-employedand started their own business in orderto get employed and not because theyhave skills or talent for leading a business.Tey do what they know best given theirprofessional preparation - stressed Valen-tina Disoska, President of the Associationof Business Women, who initiated theproject for female entrepreneurship inMacedonia.

Te project Female entrepreneurship- engine for creating jobs in SoutheastEurope is a regional project, imple-mented in the period 2012-2015 and

encompasses Macedonia, Serbia, Bosnia

and Herzegovina, Albania, Croatia, Mon-tenegro, Kosovo, urkey and Moldova.Organized by the Regional Center forEntrepreneurship Learning of the coun-tries from Southeast Europe and the Ini-tiative for Sustainable Growth, under the

coordination of the Council for Regional

Cooperation. In the final document ofthis project, the focus is put on youngwomen, in order to stimulate their activeinclusion in technical sciences, especiallyin the I sector.

he construction of technologicallyindustrial development zones gavegreat results, reduced the unemploymentby creating new jobs, and increased thetotal export of the country. Given thesepositive results, Government decidedto construct three new zones in Ku-manovo, Lipkovo and Mavrovo-Rostuse,announced Prime Minister NikolaGruevski.

-In the first 11 months this year, wealready have 26 percent increased export

compared to the same period last year.Te export value is 1.3 billion euro and itseriously influences the overall export ofthe Republic of Macedonia. Tat is ourbest card in attracting foreign investors.Starting from the fact that currently wehave four fully operational zones withplants which already started operatingand ten other factories that are still underconstruction, we decided to create three

new industrial zones in 2016. It regardsthe zones in Kumanovo, Lipkovo and

Mavrovo-Rostuse Municipality becausewe believe these regions will benefit fromthe construction of industrial zones, asfor increased employment and attractingmore companies, said Prime MinisterGruevski.

He added that the upcoming prepara-tions and activities anticipated for thesecond half of 2016 will contribute forinitiating the development activities on

these three new zones.

FEMALE ENTREPRENEURSHIP IN MACEDONIAThe Macedonian economy counts 33 percent female entrepreneurs which is close to the European level. Most of them are holders of micro

and small enterprises in the service sectors, who opened their own business in order get employed and not for business purposes

GRUEVSKI: ZONES ARE GREAT OPPORTUNITYFOR CREATING NEW JOBSGiven these positive results, Government decided to construct three new zones in Kumanovo,

Lipkovo and Mavrovo-Rostuse, announced Prime Minister Nikola Gruevski

EMPLOYED PERSONS BY GENDER AND ECONOMIC STATUS, 2014

Source: Labour Force Survey


15/16

T O U R I S Mour operators will use the subsidiesfor tourism to attract foreign tour-

ists to Macedonia, starting this winter.Statistics shows that mountains are thethird favorite to foreign tourists who visitMacedonia so that should be used in theupcoming period.

Another advantage is that Governmentincreased the subsidies, and starting fromnext year will pay tourists from Israel,

Austria, Malaysia, South Korea, Italy,France and Spain, 65 euro each. At thesame time increased the subsidies fortourists from the Czech Republic, Slova-kia, Hungary, Poland and Romania, from25 to 35 euro each.

Tis represents a great opportunityfor domestic travel agencies to get toknow these markets and make contacts inorder to attract more tourists to Macedo-nia during the winter period. Having inmind that foreign tourists contribute forhigher foreign exchange earnings, this isgood for both travel agencies because itincreases their profit, and for the generaleconomic growth of Macedonia - stressedGovernment spokesperson AleksandarGjorgiev.

Government gives subsidies to touristsfrom Belgium, Netherlands, Luxemburg,Finland, Norway, Denmark, Sweden,Russia, Ukraine, Japan, United ArabEmirates, China, India, USA, England,Germany, Qatar, Kazakhstan, Azerbaijanand other.

Macedonian tourism marked a steepgrowth in the past several years, as aresult of Governments subsidies, the

promotion of Macedonia as a favorable

travel destination, the reduced travel VAfrom 18 to 5 percent, the modernizationof airports in Skopje and Ohrid, the fi-nancing of cheap flights to over 15 Euro-pean metropolis and many other projects.

According to the data of the State Sta-tistical Office, the number of touristsin November 2015 was 41,793, and thenumber of nights spent by tourists was94.736. Te number of tourists in No-vember 2015, compared to November2014, increased by 14.6%, and the num-ber of nights spent increased by 16.5%.

Te number of domestic tourists in

November 2015, compared to November2014, increased by 18.3%, while the

number of foreign tourists increased by12.2%. Te number of nights spent bydomestic tourists in November 2015,compared to November 2014, increasedby 26.2%, and the number of nightsspent by foreign tourists increased by8.8%.

In the period January - November2015, compared to the same period last

year, the number of tourists increased by10.3%: the number of domestic tourists

increased by 5.4%, while that of foreigntourists increased by 13.9%.

In the period January - November2015, compared to the same period lastyear, the number of nights spent in-creased by 8.7%: the number of nightsspent by domestic tourists increased by6.2%, while those by foreign tourists in-creased by 12.3%.

NUMBER OF TOURISTS AND NIGHTS SPENT BY TYPES OF TOURIST RESORTS, NOVEMBER 2015

Tourists Nights spent

Total Foreign Total Foreign

41 793 16 826 24 967 94 736 45 428 49 308Total

Types of tourist resorts

15 715 1 932 13 783 30 453 3 811 26 642Skopje

2 260 1 854 406 21 365 18 414 2 951Spa resorts

2 702 2 160 542 4 590 3 506 1 084Mountain resorts

10 026 6 298 3 728 18 306 12 694 5 612Other tourist resorts

11 090 4 582 6 508 20 022 7 003 13 019Other resorts

Domestc Domestc



16/16

AGRICULTURE

Within two weeks since the start oftobacco trading, a total of 5,168tons of this years tobacco harvest were pur-chased at average price of 185 denars perkilogram, which is an increase of 65 denarscompared to the same period last year, an-nounced from the Ministry of Agriculture.

According to the data of the State In-spectorate of Agriculture, 54.21 percent

of the harvest was already paid to plantersor 518 million denars for the harvest from2015.

Te purchase is carried out at 152 pur-chase points by nine buyers, without anyproblems in accordance with the contractsbetween the producers and the buyers.

Initial estimates are that 25,000 tons oftobacco will be purchased.

Te Ministry of Agriculture informedthat they sent a written statement to buy-ing companies for implementing certainmeasures to contribute for more successfulpurchase of the tobacco harvest this year.

he new open call for distribution ofstate agricultural land gives oppor-tunities for new employments, self-em-ployments, both for domestic and foreigncompanies to start with the production of

agricultural products or open plants forfood processing, stressed Prime MinisterNikola Gruevski.

All land parcels will be located onover three hectares, which gives pos-sibility for more serious production, forwhich they can apply on a public auc-tion. We have a lot of potential which

will create conditions for many new em-ployments and will increase the exportand self-employment, therefore I expect

people to show great interest, said PMGruevski.

He added that the state agriculturalland in Kumanovo, in Stip-Sveti Nikoleregion, in Resen region and other regions

has already been published, and calledupon all domestic and foreign companiesto review this opportunity.

Subsidies for interest rates towardsgreater use of IPARD funds, an-nounced Minister of Agriculture, Forest-ry and Water Economy Mihail Cvetkov.

Te Government measure will be in-

tended for IPARD beneficiaries, availablefrom the onset of 2016.

Te measure will encompass IPARDbeneficiaries who have signed an agree-ment with the Payment Agency, valid forall banks in Macedonia. Te state willcover 50 percent of the interest rate that

cannot exceed eight percent and for loansup to EUR 500.000, said Cvetkov at the

sidelines of the Agro-Business Forum inSkopje.

Te ministry will hold info-daysthroughout Macedonia up to December25, where farmers can obtain specific

data over the measure.

TOBACCO CHART OF THE REPUBLIC OF MACEDONIA

Source: obacco Institute Prilep

Documents

Business Bulletin Dec. 2015