IFLR 1000
The Guide to the World's Leading Financial Law Firms

Macedonia continues to be in limbo along business and political lines. A host of factors conspire against the country's domestic and international desire for progress. On the one hand, the breakup from Yugoslavia dispossessed the country of its protected markets and transfer payments from the centre. This coupled with UN sanctions, a Greek economic embargo and lack of infrastructure stifled Macedonia up until foreign aid, worker remittances, successful privatisation and domestic devices for open economy facilitated modest growth. From the outset, the country's continuing dispute with Greece over its own name has crippled many of its aspirations. This dispute lies at the centre of the country's current inability to accede to the EU or enter Nato.

There hasn't been much to speak of in terms of business in Macedonia. The elections in June did not help address high employment and a sluggish economy. "The June election freezes everything for six months. We thought the crisis ended but everything's stopped while we wait for the new government," one partner said. Nevertheless, despite having a stalling effect, the conservative government takes the helm again and will pursue the same policies. "We hope for some improvement in foreign investment, general production or some other activities...after the global crisis, there's not a lot of improvement," says one partner. The status quo prevails in Macedonia. Infrastructure is frozen with very few developments in the offing; a notable exception being the reconstruction of Skopje airport by the Turkish TAV holdings.

The fresh problems that have afflicted Greece further jeopardise the country's goals. "The biggest investor in Macedonia is Greece," says one partner, adding: "We feel the impact every day. We feel it in the economy; we feel it in the investment portfolio." In light of external forces that prevent the growth of the country, the government has been a huge investor in Macedonia. This is true in economic and cultural matters. "With law firms, there is a shift from the service of the private sector to the public sector. For us, more than half of the foreign clients decreased. We tried to switch to the public sector," says one partner.

In Macedonia, the capital markets and M&A is extant, however, they display very limited activity. The energy sector is not a major source of work with little traditional energy going and, in renewable energy, only traces of hydro and solar power. There are a handful of huge ongoing projects and they revolve around infrastructure with project finance, concessions and PPPs (public-private partnerships). The reconstruction of the airport, the construction of highways and in the real estate sector, work on the largest shopping mall are points of interest. Moreover, the announcement by the KEMET Corporation of its intention to construct a new manufacturing facility in Skopje has been a source of some excitement. The investment in this initial facility is set to be approximately €12 million.

A spin off of Mens Legis Law Firm, Cakmakova Advocates has developed itself a sturdy reputation on the Macedonian market and has rapidly built market share. No doubt, a large part of this ascendency owes much to Biljana Cakmakova at the helm. "Cakmakova rotates around one person," says one peer. The firm has been active with international financial institutions and advised the European Bank for Reconstruction and Development (EBRD) on a loan agreement with Ohridska Banka. The firm is also acting as local legal advisor to Fox International Channels Bulgaria and Italy on competition and intellectual property matters. The firm has ties with Freshfields Bruckhaus Deringer and possesses an established client base advising the likes of Proctor & Gamble, Telecom Slovenije, Visa International and IBM among others.

Driven by managing partner Dejan Knezovic, Law Firm Knezovic & Associates is among the best in Macedonia. The firm has developed itself a reputation for public procurement work. Despite a sluggish market, market commentators see the firm as visible as it turns to non-resident clients. "Knezovic is focused on foreign clients. We work together with a few clients. We see Knezovic," says one partner.

With proficiency in project finance, PPP (public-private partnerships) and M&A/corporate matters, this year, the firm has been involved in some interesting instructions. In project finance, it is advising international banks in connection to the €120 million reconstruction of Skopje airport, "Alexander the Great" by Turkey's TAV holdings. Furthermore, by way of a syndicated loan, the firm acted for international banks on the acquisition of a mobile phone operator by Telecom Slovenije. The firm has also provided legal services to key energy client Alstom.

The firm is often selected as local counsel and is a strong option for international firms that lack presence in the country. To this end, it has worked with Allen & Overy, Gide Loyrette Nouel, Linklaters and Clifford Chance. It also boasts of high profile clientele including the likes of Bank Austria and Coca-Cola.

One of the largest law firms in Macedonia and established in 1946, Polenak Law firm is a strong firm with history to its name. Led by Kristijan Polenak, this household brand divides its activities equitably between banking and finance, corporate law and civil/commercial litigation. The firm's peers see it as a visible force on the market. "Polenak is diverse," says one partner, adding: "In infrastructure, M&A and finance, we see Polenak a lot".

The firm has been active representing TAV holdings in the concession tender and related matters pertinent to the reconstruction of Skopje airport. The firm also advised energy company RWE in a BOT (build-operate-transfer) project PPP (public-private partnership) for the construction of two hydro-power plants. Kristijan Polenak has been drawn out for praise as a leading lawyer. "There are some individuals in the background, nevertheless, Kristijan Polenak is a leading individual," one peer says.

A strong favorite to act as local counsel for international firms, Polenak law firm has developed strong relationships with international law firms. The firm also has a strong client base and advises, among others, the World Bank, EBRD (European Bank for Reconstrcution & Development) and Goldman Sachs.

Debarliev Dameski & Kelesoska is growing in stature. In the coming years, the firm will be pushing for higher places as competitors and clients recognise its developing traits. The firm certainly has the capacity. "They have four persons who drive the work and fourteen lawyers. They can answer on many areas," one partner says.

Clients have expressed their satisfaction in working with the firm. "They're a good team covering every single area of law. They're well equipped, efficient lawyers," says a client, adding: "They're very strict in some suggestions but in some situations if clients were not satisfied in changing agreement points, they were cooperative." Clients single out Jasmina Jovanovik and Dragan Dameski for praise. "Ilieva Jasmina, she was great, really dedicated, also one of the partners Dragan Dameski, he was very good. His energy is very high," says one client. The firm's communication skills have also been highlighted by clients. "Actually, they set the benchmark for communication in our company. With any request, they'd reply within two to three hours. They made the benchmark," says one client.

In the last twelve months, the firm has been involved in some interesting mandates. Led by Dragan Dameski, the firm is currently advising the City of Skopje on the BOT (build-operate-transfer) concession for the Ski Vodno Center. Furthermore, the firm is advising Raiffeisen Bank on the €40 million financing of the construction of "Skopje City Mall" through a syndicated loan and securitisation. The firm was also engaged with Macedonian competition and corporate matters when it advised Wienerberger on its merger with Tondach.

"They're really good but not the cheapest," says one client, adding: "Their professionalism, I found of a really high level."

Amid tough market conditions, Law firm Trpenoski has had its fair share of instructions. "In tier two, Trpenoski is active in the litigation field," says one peer. In truth, Macedonia's decrease in foreign investment has led the firm to reorganise itself toward litigation. To this end, it has wide ranging litigation abilities across the country in commercial, civil and criminal cases.

Clients are generally pleased by the firm's overall performance. "We're 100% satisfied. They are still our company lawyer. We do small to large cases with them, my overall impression is positive," says one client, adding: "We get an immediate response from them. We usually ask for little opinions, bylaws and changes in the structure of companies, they support us."

The firm is currently actively assisting banks on the collection of loans and debts from companies and physical persons. Furthermore, it advised Zito Luks Skopje on its comprehensive takeover by Zito Leb Ohrid of its retail division, including the employees and extension of business cooperation. Additionally, the firm is advising Pro Credit Bank on the purchase of land, with private and state ownership, and the subsequent erection of a building for commercial purposes. The firm is also advising Republika Dooel on its participation in public tenders and another client on a Greenfield investment.

"They are growing with us, evolution. The firm is actually quite big, currently more than eleven lawyers. In Macedonia, considering the size of the country, this is quite big. Usually, you only have a few practitioners in an office," one client says.

Lawyers Antevski retains its place in the second tier this year. The firm benefits in the referrals it receives as a consequence of its cooperation with Austrian law firm Lansky Ganzger & Partners. It is also represented in Liechtenstein by ARI Anstalt. Such cooperation allows the firm's reach to extend towards East and South-East Europe and the Middle East. The firm's orientation strongly favours international clients and it has been especially active in the energy sector. In the last year, it prepared information on Macedonian law for the World Bank group's 2011 "doing business" report.

Established in 1989 by Valerjan Monevski, Monevski Law Firm has built itself a presence in the market. The firm holds on to its place in the second tier despite reports of decreased visibility. "I haven't seen Monevski," says one partner. The firm provides legal advice across the board, from financial and corporate matters to human rights and family law. Like some other firms on the market, the dearth in foreign investment has led to the firm's increased activity on the litigation front. The firm has cooperated with Linklaters, Bird & Bird and Baker & McKenzie in this regard. Furthermore, its clientele is diverse and includes EBRD (European Bank of Reconstruction & Development), IFC (International Finance Corporation), KPMG, RWE, Caterpillar and the US and British embassies.