A.N.A. Bulletin, 29/05/96

From: "Greek Press & Information Office, Ottawa Canada" <grnewsca@sympatico.ca>

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 898), May 29, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Continuing Turkish provocations in Aegean 'torpedoes' efforts for rapprochement, Greece says

Turkey's stance in the Aegean only serves to escalate tensions and torpedo all efforts for rapprochement with Athens, Greece said yesterday, after yet another incident in the eastern Aegean early yesterday when a Turkish patrol boat violated Greek territorial waters and collided with a Greek coast-guard vessel near the islet of Imia.

Government spokesman Dimitris Reppas described the incident as "yet another provocation" by Turkey, adding that Athens was already taking all the necessary diplomatic steps.

He did not rule out the possibility of Greece withdrawing its diplomatic officials from talks with a Turkish delegation in Geneva to prepare the groundwork for a meeting between the foreign ministers of the two countries on the sidelines of a NATO meeting in Berlin next month.

Merchant marine ministry sources said the Turkish vessel ignored repeated calls from the Greek patrol boat before ramming it and speeding toward international waters.

Sources added that the Greek patrol boat initially detected an unidentified vessel on radar slipping in and out of Greek territorial waters.

According to reports, the Greek patrol boat, acting under orders from the Hellenic Naval General Staff, moved to remove the "foreign" vessel from Greek territorial waters immediately. It changed direction and headed west of Imia, where it identified the intruder as a Turkish patrol boat.

The ministry said the skipper of the Turkish vessel refused to comply with repeated calls from the captain of the Greek patrol boat and as the two vessels drew abreast on the sea boundary separating Greek from Turkish territorial waters, the Turkish vessel turned its bow and rammed the Greek patrol boat on the left side, causing serious damages.

[2] Gov't response

Asked if Greece was considering withdrawing its representatives from the Geneva talks, government spokesman Dimitris Reppas replied:

"The government is considering everything."

The spokesman said Turkey's stance was escalating tension and torpedoing all efforts for rapprochement between the two countries.

"This illustrates that the statements by the Turkish leadership concerning dialogue and understan-ding are not sincere and are made only to create an impression," Mr. Reppas said.

The spokesman reiterated that the government was determined not to allow anyone to dispute Greece's territorial integrity and sovereign rights.

He also denied press reports that a "hot line" had been established between Athens and Ankara as well as that the issue had been raised by NATO.

[3] Ankara protests

In Ankara, Athens' ambassador Di-mitris Nezeritis was called to the Turkish foreign ministry, where the Turkish government protested the incident.

A Turkish foreign ministry statement said the incident occurred in Turkish waters when "the Turkish patrol boat was immobilized due to an engine malfunction."

The statement adds that it was the Greek patrol boat that violated Turkish territorial waters, harassing the Turkish vessel and acting in a "provocative manner".

Earlier, referring to the forthcoming meeting between the two nations' foreign ministers, a senior Turkish foreign ministry official told the semi-official Anatolia news agency:

"The best way for such incidents to be avoided is for dialogue. Otherwise, such incidents can lead to dangerous situations. The Geneva meeting is a chance to discuss methods for avoiding such incidents."

[4] ND statement

The main opposition New Democracy party also issued a statement yesterday on the incident, saying that "Turkish provocativeness is intensifying at a dangerous rate, precisely at the moment that the Greek government is beginning contacts for the preparation of an upcoming meeting of Greece and Turkey's foreign ministers".

ND warned the government over what it called dangers from "a total lack of a stable and long-term foreign policy."

The main opposition also directed a message towards Ankara's leadership that the Greek people's unity is unshaken every time its territorial integrity and its right to exercise its inalienable rights are threatened.

The Political Spring party also issued a statement, saying it once again proves how Ankara considers a dialogue with Greece.

"This should be taken into account by all those that express doubts about Turkish provocativeness, and claim that it is possible for serious discussions with Turkey to exist under these conditions," the Political Spring statement reads.

[5] Constantopoulos meets with Cetin

Coalition of the Left and Progress leader Nikos Constantopoulos said that incidents such as yesterday's undermined rapprochement and hindered the possibility of smoothing out problems in a climate of stability and sincerity by the two countries, following his meeting with Turkish former foreign minister Hikmet Cetin.

Mr. Constantopoulos said a precondition for rapprochement was respect for the principles of international law and international agreements.

He said that despite existing disagreements channels of communication should be maintained between the two countries.

[6] Hungarian president requests Athens' support for Budapest's EU bid

Hungarian President Arpad Goncz held talks here yesterday with President of the Republic Kostis Stephanopoulos on bilateral relations and Budapest's efforts for European Union and NATO membership, immediately after arriving on a three-day official visit.

After the meeting between the two heads of state, delegations of the two countries held a meeting that was attended by Foreign Minister Theodoros Pangalos, Alternate Foreign Minister George Romeos and Justice Minister Evangelos Venizelos.

Mr. Stephanopoulos said after the meeting that relations between the two countries were "excellent, wi-thout any shadow, but with much room for further co-operation." He added that Greece supported Budapest's bid to join the 15-member EU, stressing that Hungary and other countries constituted an integral part of the Community, and that negotiations should begin for its accession.

Other issues discussed included bilateral cultural and educational exchanges.

Mr. Goncz said Greece and Hungary shared an identity of interests, adding that Budapest supported efforts by Cyprus and Malta to join the Community.

"We hope that negotiations for our accession to the EU will begin on the same dates as those set for Cyprus and Malta, that is, six months after the inter-governmental conference (IGC)," Mr. Goncz said, adding that the enlargement of the Community with countries such as Hungary, Bulgaria and Romania was in the interests of not only of the smaller countries but also of the larger EU states.

Asked whether Athens feared reduced EU funds if Hungary joined the Community, Mr. Stephanopoulos replied that Greece's support for the Visegrad nation's bid was not based on economic or other interests. "Our criterion is the need to complete European integration," Mr. Stephanopoulos said, adding that he had briefed his Hungarian counterpart on national issues and Greek-Turkish relations.

Mr. Goncz extended an invitation to the Greek president to pay an official visit to Budapest.

[7] Meetings with political figures

Mr. Goncz held a subsequent meeting with Parliament President Apostolos Kaklamanis, with both sides announcing that they shared common views on international, European as well as bilateral issues.

During their discussions, both men agreed that opportunities existed for further co-operation on a variety of fields.

Mr. Goncz reiterated Budapest's request for support of its membership bid to European organizations, while Mr. Kaklamanis replied that Greece's leadership will support Hungary's requests.

The Hungarian president sent his greetings to the ruling party's president, Andreas Papandreou, when he met with PASOK Secretary Costas Skandalidis.

Mr. Goncz discussed the future of Europe in his meeting with main opposition New Democracy leader Miltiades Evert. Speaking after the meeting, Mr. Evert said they had also discussed the possibilities for the expansion of the European Union and of NATO.

Communist Party of Greece Secretary-General Aleka Papariga also met with the Hungarian president yesterday, as did Political Spring deputy Stephanos Stephanopoulos.

[8] Hungarian president, first lady receive Greek honors

President Kostis Stephanopoulos decorated his Hungarian counterpart with the Cross of the Order of the Savior, and decorated his wife Susanna Goncz with the Cross of the Order of Creativity yesterday while Mr. Stephanopoulos received Hungary's Cross of t he Order of Merit of the Hungarian Republic.

During a formal dinner held in honor of Mr. Goncz last night, Mr. Stephanopoulos said the Hungarian president's visit to Greece expresses the joint wish to further promote relations between Athens and Budapest, both on a bilateral level and within the framework of efforts for the "building of a new Europe".

Mr. Stephanopoulos underlined that Greece supports Hungary's application for entry into the European Union.

Speaking on national issues, Mr. Stephanopoulos stressed Greece's respect for the principles of independence, territorial integrity, non-interference in other countries' internal issues and the respect of existing borders.

Mr. Stephanopoulos added that Greece's adherence to the UN charter has made the country particularly sensitive to the continued occupation of 37 per cent of the territory of Cyprus.

The Greek president condemned the policies of Turkey, which refuses to respect international agreements which set out the status quo in the Aegean and doubts Greek sovereign rights, which constitutes "a source of concern" and "a cause of tension in our area".

Mr. Stephanopoulos said that Greece, through its policies, is aiming for peace, friendship and co-operation with its neighbors in order for the area to be a zone of harmonious co-existence with no areas of tension.

Mr. Goncz is to visit Thessaloniki today, where he will meet with the city's mayor Constantine Kosmopoulos and will be awarded the city's Gold Medal.

Mr. Goncz will also visit the Thessaloniki Chamber of Commerce and Industry, accompanied by members of a Hungarian commercial delegation. The Hungarian businessmen will meet with Thessaloniki businessmen in order to develop commercial relations.

[9] Hungarian economy shows positive signs

Speaking yesterday at the Athens Chamber of Commerce and Industry, Mr. Goncz said the first positive signs were beginning to appear in all sectors of the Hungarian economy, following major reforms aimed at its revival.

In particular, he noted that industrial output had increased by 15 per cent, exports were up 20 per cent and GDP had risen by 2 per cent, while the current accounts deficit had been cut by 50 per cent and the country's foreign exchange reserves could cover imports for the next 10 months.

Referring to bilateral relations, Mr. Goncz described as "satisfa-ctory" trade exchanges totaling $110 million, equally spread between imports and exports. He added, however, that there was enormous room for further trade deve-lopment between Greece an d Hungary, especially now that the war in former Yugoslavia has ended. He also expressed certainty that the co-operation between Greek and Hungarian businessmen would make a decisive contribution to the growth of the two countries' economic relations.

Federation of Greek Industries (SEB) President Jason Stratos noted that Greek industry wished to contribute more actively to Hungary's efforts to transform into a free economy and called attention to the need for better reciprocal briefing of the business world, particularly with regard to investment opportunities.

[10] Romeos-Ivanyi meeting

Alternate Foreign Minister George Romeos also had talks yesterday with Hungarian Foreign Under-secretary Strent Ivanyi, who is accompanying the Hungarian president.

According to reports, the Hungarian official touched on the issue of his country's bid to enter the European Union and Budapest's request for support of that effort.

Mr. Romeos replied that Hungary could count on Greece's support for its membership as long as the EU Commission's report on that nation is positive.

The Greek alternate minister also reiterated Athens' position that a condition for EU enlargement entails that the Union's agricultural and regional policy remain unaffected.

[11] Venizelos meets with Hungarian counterpart

Justice Minister Evangelos Venizelos and his Hungarian counterpart Pal Vastag yesterday discussed co-operation between the two countries on justice issues, Hungary's harmonization with Community norms and structured dialogue between the European Union and central and eastern European countries.

Mr. Venizelos and Mr. Vastag, who is accompanying the Hungarian president on his official visit to Greece, also discussed the conference of Council of Europe Justice Ministers due to take place in Budapest on June 11-12.

[12] Gov't awaits official reports by international observes on Albanian elections

The government announced yesterday that it would await the official reports of international observers who monitored national elections in Albania before commenting on the weekend election. "The criterion for relations between Greece and Albania is the safeguarding of the Greek minority in the neighboring country, which Greece will defend with all means possible," government spokesman Dimitris Reppas said.

Replying to press questions, the government spokesman denied reports that Athens had financed the governing Democratic Party of current Albanian President Sali Berisha.

"This information does not correspond with reality. The Greek government does not become involved in the domestic affairs of other countries," Mr. Reppas added.

[13] Opposition reactions

Speaking to reporters after meeting Hungarian President Arpad Goncz, main opposition New Democracy party leader Miltiades Evert said events occurring in Albania yesterday were "regrettable."

Mr. Evert said he too would await a report by international observers on the elections before expressing his views.

An announcement by ND said the party was watching recent political developments with great attention and concern, noting that regardless of political choices and expediencies "respect for the rights of Hellenism in Albania always constitutes the basic p recondition for the two countries' good relations."

"The Greek government has an obligation to ensure the rights of the Greek minority, which are being violently violated with the long-term goal of isolating the Greeks of Northern Epirus," a Political Spring statement read yesterday on the issue.

The opposition party noted what it called "unacceptable machinations by the Berisha regime," and also condemned yesterday's attack by security forces against opposition parties in downtown Tirana.

Communist Party of Greece (KKE) Secretary-General Aleka Papariga expressed solidarity "with the Albanian people who are being oppressed."

[14] Coalition observers sound the alarm

Addressing a press conference yesterday, senior members of the Coalition of the Left and Progress who monitored the Albanian elections reported "orgies of violations of electoral legislation" as well as violence by police and "para-state" elements. "The threat of a new flash-point being created in the region" was referred to during the press conference, while appeals were made to the US and the European Union to intervene and "safeguard the democratic course and normalcy" in Albania.

[15] CoE observers

Council of Europe Parliamentary Assembly members who participated in the Organization for Security and Co-operation in Europe (OSCE)'s group of observers issued a press release on the Albanian elections yesterday.

"The Delegation acknowledges that Albania has only in a few years time made significant progress from a closed dictatorship to a democracy. The Delegation hopes that these elections would contribute to further consolidation of this process.

"... the Delegation also discussed the 'Law on Genocide' and considers that the law includes procedures which are not entirely transparent. It also includes stipulations which limit the electorate's possibilities to choose freely their candidates.

"The Delegation feels that the state owned media and some authorities were not entirely unbiased. The legal provisions for presenting the parties favored the ruling party. The Delegation acknowledges that the media performed well its duty to inform the voters about the electoral procedures.

"The Delegation also feels that the Albanian legislation does provide a basis for free and fair election and for the will of the people to be expressed.

"On the polling day members of the Delegation visited more than 50 polling stations in different parts of Albania, including Tirana, Durres, Shkoder, Fier, Elbasan, Leche, Burrel, Pogradec, Lushnje and Korce. They also visited several rural areas."

[16] Kokkalis to testify in OTE contract investigation next week

Socrates Kokkalis, the president of Greece's leading telecoms firm Intracom, was granted a postponement until next Tuesday to prepare his testimony in the preliminary inquiry into the matter of the OTE digital lines contract to Intracom and Siemens Hellas.

Mr. Kokkalis has been called to testify regarding a controversial phrase in an announcement he issued to the press recently, in which he said "politicians, publishers and journalists have become involved in an illegal ring of political and economic exchanges and interdependencies."

The reasons for Mr. Kokkalis' request for more time were that the annual general assembly of Intracom shareholders has been scheduled for next Friday, and that he needed time to collect information necessary to support his testimony.

[17] Georgia to attend CoE as observer

The Georgian Parliament was accepted as an invited member of the Council of Europe's Parliamentary Assembly and can observe its sessions with five representatives. The decision, which was taken yesterday, was announced by CoE Parliamentary President Leni Fischer, who characterized it as a further step in the creation of a wider democratic Europe and said it was a stabilizing factor in the Caucasus. Georgia had submitted an application to attend the Assembly sessions in March 1993. Armenia, Belarus, Bosnia- Herzegovina and Croatia are already invited members, while Azerbaijan has also submitted an application.

[18] 'Nihilists' claim responsibility for IBM bomb attack

A powerful blast rocked the IBM Hellas building on Kifissias Avenue just before 10pm last night, destroying the company's ground-floor canteen and shattering surrounding shop windows.

Nobody was injured in the blast as the building was empty at the time, although it was being guarded by a private security firm.

In an anonymous phone call to the Skai television channel late last night, the 'Nihilist Faction' claimed responsibility for the attack.

The shady group came to public notice last month when it claimed responsibility for two bomb attacks: one on a Supreme Court prosecutor and two successive bomb blasts in a Kolonaki shopping complex that seemed calculated to injure a large number of innocent bystanders and police.

The explosion appeared to come from the rear of the 14-storey building on the corner of Hydra and Sophocleous Streets.

Police are searching for two people seen leaving the scene on a high-powered red motorcycle. According to the building's guards, the pillion passenger placed a large plastic bag at the corner of Hydra and Sophocleous before speeding away from the scene shortly afterwards.

A strong police force, including special anti-terrorist police, cordoned off the area. According to reports, the latest incident has moved police to seriously consider the possibility of an active new terrorist organization.

[19] Cabinet may have to regulate private tertiary institutions, George Papandreou says

Education Minister George Papandreou said yesterday he was concerned at a recent decision recognizing degrees taken in part at private colleges in Greece as being on a par with those granted by Greek universities.

Mr. Papandreou said if the decision taken by the Council of State panel results in a flood of students enrolling in private higher education colleges, he will put the matter to the Cabinet in order for it to regulate the government's position on these colleges.

The education minister said he was expecting a briefing on the reasons for the decision before giving a detailed reaction.

Higher education in Greece is state-run and degrees awarded by private colleges have not, till now, been recognized by the central office for the recognition of both Greek and foreign tertiary degrees, DIKATSA. The specific case involves a degree begun in Greece at a private institution and completed at a French university.

[20] Peponis vows to cut back on 'orgy of waste' in public hospitals

Health and Welfare Minister Anastasios Peponis said yesterday he was determined to eradicate what he called "the orgy of waste" in procurements by state hospitals, clearly pointing the finger at poor administration.

Speaking to reporters about a final text of the draft law and changes in the National Health System (ESY), Mr. Peponis presented figures showing excess waste in the purchase of medical supplies by public hospitals.

According to the released figures, balloons used to unblock arteries cost 110,000 drachmas in Britain, compared to more than 600,000 drachmas in Greece.

Similarly, pacemakers cost 600,000 drachmas in Britain, compared to a staggering two million drachmas paid by Greek state hospitals.

Mr. Peponis said poor hospital administration was to blame.

The total additional burden for state hospitals in Greece for cardiology equipment alone is three billion drachmas per year, Mr. Peponis said, adding that from now on, computers would be used to monitor offer prices.

Another area in which Greece compares unfavorably with other European countries is the number of days patients spend in hospital beds. While in Europe average hospitalization is eight days, in Greece it is between 10-15 days.

According to the same study, the 450,000 days of hospitalization recorded each year in Greece for patients insured with private insurance companies could be cut to 225,000 days, resulting in savings of seven billion drachmas.

Mr. Peponis said new legislation would not alter the labor relations pertaining to the permanency of physicians' positions, but added that permanent status could not apply in the case of newly hired doctors.

By the end of next week, the minister added, measures aimed at increasing doctors' pay by raising overtime compensation would be announced.

[21] Ministry investigates reports of tainted baby milk

In an unrelated issue, the health minister yesterday asked the National Pharmaceuticals Organization (EOF) to inform him immediately on whether any quantities of milk were circulating on the Greek market containing traces of a chemical which may impair fertility. The request follows a health scare in Britain after the chemical phthalates was found in several brands of formula baby milk, used by an estimated 80 per cent of British women to feed infants over six months old.

Mr. Peponis said Greece did not import baby milk from Britain but did purchase two types of milk from Ireland, clarifying that the substances thought to be dangerous were not listed in either of the formulas.

The minister said there was no cause for alarm at present, stressing that even the slightest suspicion that any milk circulating in Greece might contain phthalates or other dangerous substances would result in a ban on their importation.

EOF earlier sent an urgent fax to the World Health Organization (WHO) and the British health and agriculture ministries asking to be fully briefed on the issue.

Mr. Peponis showed reporters a fax sent by EOF to the Greek health ministry at noon yesterday stating that no baby milk of British origin was on sale in Greece and that the Irish milk on the market here were the stock number S 26 of Wyeth Hellas Ltd. and Almiron of Nutricia Hellas.

[22] PASOK parliamentary group

PASOK's new parliamentary representatives are to be elected on June 5, as foreseen by the parliamentary group's new regulations, while PASOK's parliamentary group is due to meet on June 11 in order to discuss current developments.

This was announced yesterday by newly-elected parliamentary group secretary Nikos Akritidis, after a meeting between the new administration and prime minister Costas Simitis.

Mr. Simitis said the new administration has an important role to play as it has undertaken to support the government's work in Parliamentary procedures.

The prime minister added that there are ideas and the will for something which will change the image of the parliamentary group and of parliament itself.

The parliamentary group's new administration is set to visit PASOK President Andreas Papandreou in Ekali tonight.

[23] Greek seaman killed in onboard explosion

One man died and another two were injured yesterday in an explosion aboard the Greek-flagged oil-tanker 'Ayios Nikolaos' as it prepared to leave the port of Lavera in southern France.

The ship had just loaded 400 tons of airplane fuel and was preparing to depart when, for as yet unknown reasons, an explosion occurred in the engine room.

First Engineer Thomas Petras, 46, was killed instantly. Second Engineer Christos Maridakis, 47, and a sailor, Michalis Katsareas, 42, were seriously injured.

Prompt action by firecrews prevented the fire from spreading to the storage tanks full of fuel.

The ship, which belongs to the company Ayios Nikolaos NE, was scheduled to sail to Port Sudan.

[24] Tsohatzopoulos presents results of ongoing modernization of public administration

The public sector is entering a new era with important benefits for the operation of public administration with the introduction of computerized services and technological backing, Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos told a press conference at the interior ministry yesterday.

Mr. Tsohatzopoulos was summarizing the results so far of the EU programme "Kleisthenis" which aims to improve and modernize infrastructure in public administration.

The 92-billion-drachma programme was ratified in July 1994 and has made interventions in seven ministries - interior and public administration, finance, national economy, development, press and media, merchant marine and labor and social security - for smooth and substantive operation. The programme is due to be finally completed in 1999.

The finance ministry will absorb 32 billion drachmas from the total credit package, the interior ministry 19.5 billion, the development ministry one billion, the national economy ministry 13 billion and the labor and social security ministry 12.5 billion.

The Politis programme to provide all Greeks with automatic access to any information distributed by the state will develop through the programme.

"Despite special knowledge required and difficulties we are faced with until now, 92 per cent of the programme, supervised by two committees in co-operation with the European Union, has been included in ministry programs and the management of funds has already started," Mr. Tsohatzopoulos said.

[25] Greece, Bulgaria sit down to resolve 'small and big' problems

The two-day 18th joint inter-govern-mental Greek-Bulgarian committee session started in Sofia yesterday with National Economy Under-secretary Manolis Beteniotis heading the Greek delegation.

Other participants in the delegation are senior officials of the national economy ministry, the foreign ministry, the agriculture mi-nistry, the transport and communications ministry and representatives of the Federation of Greek Industries (SEB) and Greek banks.

The Bulgarian delegation is headed by Commerce and International Economic Relations Under-secretary Vladimir Kerpachev.

"Today's inter-governmental co-operation will resolve small and big problems which are separated into four groups," Mr. Beteniotis said. "The first concerns the major issue of avoiding double taxation, next is the implementation of the agreements for the waters of the Nestos river and the opening of new border checkpoints. The implementation of agreements on reinstatement and seasonal occupation of the labor force is of no less importance, while the decision on the operation of the Black Sea Bank based in Thessaloniki should be promoted," he added.

"An effort will be made to modernize agreements in the transport, tourism and health sectors," Mr. Kerpachev said.

Trade transactions between Greece and Bulgaria amounted to $659 million in the first nine months of 1995 compared to $731 million in 1994. Out of this amount $327 million constituted Greek exports as against $88 million in 1991 and $332 million constituted Greek imports as against $156 million in 1991.

Despite the small size of the market and problems it faced in the transition to a market economy, Bulgaria was Greece's sixth biggest customer in 1994.

In 1995 Greece held fourth place in Bulgarian imports with a participation percentage of 6.1 per cent and sixth position in Bulgarian exports with 6.8 per cent.

The data was provided by a report by the economic and commercial affairs advisor at the Greek embassy in Sofia.

"Greece's great success in the commercial sector is primarily due to the fact the combination of quality and price of Greek products greatly suits the purchase abilities of the average Bulgarian consumer," it said.

Greek success is also evident in research conducted by the BBSS Gallup International company in April 1996 on foreign investments in Bulgaria.

Research concerned 78 foreign companies which are members of the Bulgarian International Business Association (BIBA) and according to which 35.1 per cent believe that Greece has developed the most successful investments in Bulgaria, occupying second place, compared to 75.3 per cent for Germany (first place) and 10.4 per cent for the US (third place).

[26] New bonds to be issued

The finance ministry has set interest rates for seven-year bonds with an issue date of May 31, 1996, at 14.80 per cent for the first interest-bearing year.

The bonds will be issued at the same time as treasury bills. Interest rates for the bonds will be set at the annual rate of 13.30 per cent plus a fixed margin of 1.5 per cent for the entire seven years.

According to reports, the finance ministry will pursue a further decrease in the interest rate of treasury bills in the mid-June issue to 13 per cent since the state's loan requirements in that month are very limited.

[27] Licenses revoked for two insurance companies

The operating licenses of two insurance companies were withdrawn by Commerce Under-secretary Michalis Chrysochoidis yesterday, on the recommendation of the Private Insurance Committee, for failing to comply with statutory requirements.

The companies in question are "20os Aion" and "Prostasia", both of which have been assigned receivers and their files sent to the public prosecutor.

According to Mr. Chrysochoidis, the company "20os Aion" did not have sufficient insurance reserves or margins of solvency while "Prostasia" had misrepresented its financial status.

"The withdrawal of their operating licenses was judged to be obligatory... (these practices) jeopardize the interests of the insured and undermine the credibility of the insurance company," he said.

Assets of "Prostasia" had been frozen by the commerce ministry as of last week in order to prevent further damage.

End of English language section.