Decrease in Greek Investment in Macedonia

03 10 2007 Skopje_ The total value of Greek investment in Macedonia in the last three years has shown a steady decline, businesspeople from both countries acknowledged at a forum on Tuesday.

In the first half of 2007 the value of Greek investment reached $6 million, which was less than the corresponding figure in previous years, it was said at the forum held at the Macedonian Chamber of Commerce.

Greek investment in Macedonia peaked in 2004 when the total amount surpassed $30 million.

In order to facilitate economic relations, the head of the Macedonian Chamber of Commerce, Branko Azeski, called for liberalization of the Greek visa regime for Macedonian businesspeople.

Some forum participants argued that the continuing dispute between two countries over the name Macedonia has played a part in the decrease in investment.

“Politics always plays a role, but let’s not hide behind that," the head of the Greek Committee for Foreign Investments, Aris Vlahos, told reporters covering the forum. "I believe that the significant number of Greek companies that have entered this country are here because there is an interest in this country,” he added.

Athens disputes the right of Macedonia to use this name, which it considers a part of the Greek national heritage. UN supervised negotiations on the issue have been going on since 1995.

As a result of Greek objections, Macedonia was admitted to the UN in 1993 under the provisional term Former Yugoslav Republic of Macedonia, FYROM, pending a resolution of the dispute.

The dispute, however, has not stopped Greek investment in the past, and Greece is one of the main investors in Macedonia.

The takeover of “Stopanska” Bank by the National Bank of Greece, the acquisition of “OKTA” refinery near Skopje by Greek “Hellenic Petroleum”, and the ownership of mobile operator “Cosmofon” by the Greek “Cosmote Group” are among the largest Greek business undertakings in Macedonia so far.(birn)