Athens News Agency: Daily News Bulletin in English, 98-04-09

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Gov't wants party politics kept out of the economy

[02] 24-hour nationwide strike throughout Greece today

[03] OA management,employees reach draft agreement

[04] Tsohatzopoulos praises Greek-German defence sector cooperation

[05] Gov't spokesman on Tzoganis-Karadayi meeting

[06] Briefing for Greek, Cypriot press office directors

[07] Simitis article in new PASOK magazine

[08] Burns on relations with gov't

[09] Gov't spokesman on dinner by PASOK deputies

[10] Report by UN High Commission on Refugees presented

[11] Pelican habitat destruction decried

[12] Poland's Kwasniewski winds up visit, meets with Simitis

[13] Parliament ratifies friendship protocol

[14] Engineers' conference on public works projects

[15] High-speed rail link to Skopje

[16] Karamanlis making progress, doctors say

[17] Archbishop's health 'slightly improved' but still critical

[18] Treasures of Mount Athos exhibition to end on April 30

[19] Rocket attack on Citibank branch blamed on November 17

[20] Three convicted of immigrant smuggling

[21] Greece welcomes EU approval for Thessaloniki tender

[22] Greek bank governor urges mergers, acquisitions

[23] Greek stocks trade in narrow range, end flat

[24] Greek mutual funds jump 15.77 pct in Q1

[25] Greek tourism authorities speed up asset sale

[26] Year-round tourism the focus of meeting on Rhodes

[27] Greece's Alpha Finance reports 50 pct jump in 1997 profit

[28] OECD report on Greek economy sees '98, '99 improvement

[29] Greece's Delta Informatics posts 29 pct profit rise in 1997

[01] Gov't wants party politics kept out of the economy

Athens 09/04/1998 (ANA)

Mr. Papantoniou was speaking at the opening of an economic roundtable organised by the "Economist" magazine in Athens.

"There is a strong inclination towards progress in the Greek economy and that is something that various political parties should take note of," he said.

The recent inclusion of the drachma in the European Union's Exchange Rate Mechanism was the latest indication that the economy was on the right path after years of mistakes, he said.

"Greece is on the road to convergence and its macro-economic indicators deservedly position it as one of the rising stars among developed markets."

Mr. Papantoniou outlined the government's plans for structural reforms in the economy, particularly in the public sector, that aim to speed up privatisation.

"The government is aiming at a climate of consensus so that workers can actively contribute to the restructuring of Olympic Airways and other state companies," he said.

The minister said changes in the social security system would be announced by the government by the end of the year if there was progress in talks with the parties involved.

The changes would include defining the retirement age, and they would be included in a timetable of reforms beginning in 2000.

He stressed the need for the normal operation of markets in Greece, particularly the job market, which he said was problematic.

"We will not achieve a satisfactory level of competition if we do not liberate powers latent in the economy, which are entangled in obsolete practices," Mr. Papantoniou said.

"Neither will we be able to protect our economy from external upheavals. The repercussions of a crisis on international markets would be particularly catastrophic if mechanisms to achieve equilibrium are inflexible," he said.

He noted that the Bank of Greece's foreign exchange reserves rose by around four billion US dollars after the drachma's devaluation, due to a massive injection of capital.

The Athens stock exchange was still riding a wave of confidence that had brought it an increase of almost 40 per cent and interest rates had fallen by 2.5 percentage points, Mr. Papantoniou said.

Tsohatzopoulos : National Defence Minister Akis Tsohatzopoulos spoke on "NATO-Enlargement and Influence in Greece and in Europe of the Future", stressing the need for creation of a security institution in the wider region, characterised by fluidity and instability, as a s upplement to NATO and the West European Union to allow for the creation of economic development and prosperity conditions for peoples in the region. He also reiterated Greece's proposal on the creation of a Security Council for the Balkans. Mr. Tsohatzopo ulos said that the prospect of Cyprus' accession to the European Union provides the possibility of overturning the negative course to date. He added that he does not separate Cyprus from the Republic of Cyprus and that Cyprus is one. He also reiterated that Greece supports Turkey's accession to the EU.

Mr. Tsohatzopoulos assessed that the completion of Cyprus' accession negotiations is a matter of time, while the development of collective security institutions will bring about real stability in the region through specific settlements, a development wh ich will safeguard economic development in this part of Europe.

US ambassador to Athens : US ambassador Nicholas Burns spoke of his country's decision to strike a productive relationship with Greece apart from the already existing military cooperation.

He added that both realised their relations could be vital to Europe's peace and were working towards that direction, also noting their readiness to cooperate in fighting terrorism.

Referring to the Cyprus problem, the US ambassador stressed that the existing mutual ineterest by the US and Greece could assist in the direction of re-uniting Cyprus on the basis of a bi-communal and bi-zonal entity.

Regarding Greek-Turkish relations, Mr. Burns commented that in both private and public discussions, those relations should be referred to in a positive way, further observing that NATO was the key body in safeguarding peace on European continent through its eastern expansion.

Summing up, the US envoy stressed that as the region's only country being a NATO and EU member, Greece could play a significant role in promoting economic liberalism and free-market conditions in the Balkans.

Former Bosnian mediator Owen : Former EU mediator for Bosnia David Owen referred to cooperation between the European Union and the United States in the management of crises, stressing that their relations on that aspect were not of a "competing" but of a "supplementing" nature.

Mr. Owen also referred in positive terms to the Crete summit, describing the Greek government's initiative as very important and underlining that it should be continued.

He used the instance to comment on yesterday's Tzoganis-Karadayi meeting in Athens, describing it as a very important step forward in creating what he termed "a mature" relationship between Greece and Turkey.

Finally, according to Mr. Owen, the Dayton agreement for Bosnia could serve as an example in finding a solution to the Cyprus issue.

Russian ambassador : Russian ambassador in Athens Valentina Matvienko told participants there were great prospects for the development of Greek- Russian economic and commercialties, expressing her conviction that the future introduction of the euro in Greece will further boos t bilateral relations.

Quoting Russian figures, Ms Matvienko said bilateral trade transactions in 1997 had totalled US$800 million, recording an increase of 10.3 per cent compared to the previous year.

She further named the sector of energy - natural gas and electric power - as the strongest factor in bilateral economic relations.

Referring to Russia's future membership in OECD and the World Trade Organisation, she assured Greek entrepreneurs of her country's orientation towards incorporation into the world economy, and called on them to waste no time in entering the rapidly deve loping Russian market.

Constantopoulos,Tsovolas : Coalition of the Left and Progress leader Nikos Constantopoulos said that no battle will be won for the economy if fronts are continuously being opened in society.

Mr. Constantopoulos criticised the ruling PASOK party of having discovered liberalism of late and of indentifying modernisation with privatisations.

Mr. Constantopoulos expressed the view that Greece will not have time to join Economic and Monetary Union (EMU) in 2001.

He criticised the government that while committing itself before the European Union on a series of tough measures, it would not have even secured a verbal promise for the accession of Greece with the criteria existing at present.

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas said that those in Greece and in other countries are following an ostrich policy in embracing the Maastricht policy, curbing social expenditures and increasing unemployment and believing that they can build a united Europe in this way.

Mr. Tsovolas added that his party does not even share the certainty that there will be EMU in 1999. He further expressed the view that the United States will not allow a strong competitive currency, such as the euro, next to the dollar.

He said the model of privatisations which the Greek government wishes to implement is outdated since, as he said, it has been applied in Greece in the past with negative results, creating big debts which were ultimately burdened on the state.

Athens News Agency

[02] 24-hour nationwide strike throughout Greece today

Athens 09/04/1998 (ANA)

Banks and public services will operate only with skeleton crews, while Olympic Airways flights, rail connections and urban bus schedules will be severely disturbed. However, staff and drivers of Urban Transport Organisation (OAS) "blue buses" will not strike between 8 a.m. and 9 p.m.

Port delays : Meanwhile, passengers travelling to the islands faced problems throughout the country's ports yesterday as dockworkers began a 48- hour strike to protest a government plan to privatise the country's two largest ports, Piraeus and Thessaloniki.

In addition, the Panhellenic Seamen's Federation (PNO) will take part in a 24-hour strike called for today.

A PNO statement said that Greek seamen are protesting "the government's austerity policy and the abolition of labour rights".

At a branch level, PNO is demanding the signing of collective labour agreements that will take into account the recent 14 per cent devaluation of the drachma.

PNO also wants to see jobs safeguarded and cabotage restrictions retained.

Flight schedule : OA domestic flights scheduled yesterday were carried out with major delays, with only one flight for every destination.

Twenty-one flights were cancelled since yesterday morning. During the day, more flight cancellations took place due to staff shortages faced by OA.

Flights were taking place with a delay ranging from 15 minutes to four hours, resulting in passenger complaints.

Olympic Airways and Olympic Aviation staff will participate in today's 24- hour strike. However, OA's administration offered assurances that one flight will be carried out for every destination with skeleton staff (55 schedules out of a total of 120).

Athens News Agency

[03] OA management,employees reach draft agreement

Athens 09/04/1998 (ANA)

Objections and reservations were raised by stewards and flight engineers, but only over working hours. Specifically, they did not accept a 10-hour workday. On the contrary, they agreed on flight and landing hours, leave of absence, etc.

Simitis : "Our decisions today will determine whether the national air carrier will be there tomorrow, or whether it will be replaced by other airlines," Prime Minister Costas Simitis told Parliament yesterday, explaining the government's philosophy behind the cont roversial OA restructuring bill.

Mr. Simitis called on trade unionists reacting to the bill to realise the if the current state of affairs was preserved, this would "lead to the company's closure with mathematical precision". He further rejected opposition objections to the bill, saying that the main opposition New Democracy party was more interested in harming ruling PASOK, rather than contributing to moving the country ahead.

Nevertheless, the prime minister admitted that the OA streamlining programme implemented since 1995 had failed to achieve its targets. He also said that despite the "tough" measures the bill contained, it should be passed as changes will bring about sta bility and development.

Opposition reaction : On his part, main opposition New Democracy party leader Costas Karamanlis strongly criticised the government in Parliament over its overall handling of the Olympic Airways issue. Mr. Karamanlis spoke of "criminal options, with Olympic Airways being the victim" and of "mass hirings, unbridled partisanship, partisan persecutions, waste, poor choices and a lack of planning."

Mr. Karamanlis added that the government accumulated 700 billion drachmas on the backs of the Greek people and led Olympic Airways to decline.

"You should have been the first to vote in favour of ND's proposal on the creation of a factfinding committee, out of respect for the Greek taxpayer to enable him to find out where his money went," he added.

Mr. Karamanlis went on to term the bill "sewing clauses together", while nobody knows what it contains. He added that Olympic Airways needs real incisions.

Mr. Karamanlis also spoke of a failed policy which led to a change of six ministers and nine administrations in three years.

Communist Party of Greece (KKE) Secretary General Aleka Papariga spoke of a sellout of Olympic Airways.

Ms Papariga said the bill contains "bleak measures" against staff and against public interest, adding that in the language of the government "restructuring means the sellout of the national carrier to private capital, primarily to foreign capital, and the carnage of working people's whatever acquisitions."

She accused the government of consciously and overtly telling lies to the Greek people when it claims that the privatisation and the overturning of labour relations are due to innate problems faced by Olympic which it "exaggerates excessively so as to p ass its extortionate dilemmas and its Goebbels-stylelies."

Transport minister : Addressing Parliament yesterday during the debate on Olympic Airways, Transport and Communications Undersecretary Manolis Loukakis warned of dangers stemming from failure to restructure Olympic which, as he said, can play a leading role in the region after the construction of Eleftherios Venizelos airport in Spata.

Mr. Loukakis also focused on losses sustained by Olympic due to the low cost of transporting newspapers, adding that the company would have additional profits of 780 million drachmas a year from Athens-Thessaloniki flights alone,if Olympic received the same amount of money per kilo from newspapers as the amounts it receives for the transportation of other goods.

Addressing the same debate, former ND leader Constantine Mitsotakis asked to be informed whether an agreement exists between OA managing director Theodoros Tsakiridis and staff, with which the government agrees with, as consequently, there is no reason for the bill to be ratified.

Lufthansa denial : In another development and following the developments of the restructuring process of Olympic Airways and various rumours concerning a strategic partnership between Olympic and Lufthansa, a spokesperson for the German airline stated yesterday that there h ave been "no talks between Lufthansa and Olympic concerning a strategic partnership or even a financial involvement."

Schedules announced : All Olympic Airways flights scheduled for the Orthodox Easter holiday next week will be carried out as scheduled, Mr. Tsakiridis said yesterday.

Speaking to a radio station, he said workers who had accepted the new general regulations would be required to stop all labour action as of Friday.

"If Olympic is to meet the financial demands of the workers then they will have to contribute to the company's development," he said. "I believe that they will meet this request".

Mr. Tsakiridis also said that the internal structure of the company would be reviewed "from base zero" upwards with new personnel being hired and present posts evaluated. There will also be an evaluation of all current routes and the cancellation of some on the basis of their lack of profitability, Mr. Tsakiridis said.

He said the carrier would be taking delivery of new aircraft as of September and that a "strategic investor" would not be able to contribute "financially" to the company which when restructured and modernised would be listed on the stock exchange.

Athens News Agency

[04] Tsohatzopoulos praises Greek-German defence sector cooperation

Athens 09/04/1998 (ANA)

Mr. Tsohatzopoulos called his meeting with his German counterpart "useful" and told reporters that they would meet again on Rhodes when the Western European Union defence ministers' council convenes later in the year. Greece presently holds the rotating six-month WEU presidency. Mr. Ruehe said that bilateral relations were at a very good level, adding that his meeting with Mr. Tsohatzopoulos was "positive".

Athens News Agency

[05] Gov't spokesman on Tzoganis-Karadayi meeting

Athens 09/04/1998 (ANA)

Mr.Reppas added that Gen. Tzoganis stressed Ankara's responsibilities over tensions in the region.

Karadayi : ISTANBUL (ANA - A. Kourkoulas) - Meanwhile, Gen. Karadayi reiterated his conviction yesterday that Greek-Turkish problems "will be resolved with goodwill and dialogue."

An announcement issued through the Turkish general staff's general secretariat refers to the meeting Gen. Karadayi had in Athens earlier in the week with Gen. Tzoganis, stressing that "during the meeting we exchanged views without an agenda and we agreed to take advantage of similar opportunities to meet again."

The Turkish military chief also stressed in his announcement that "my conviction has been strengthened that the problems can be resolved with dialogue and goodwill."

Athens News Agency

[06] Briefing for Greek, Cypriot press office directors

Athens 09/04/1998 (ANA)

Foreign Minister Theodoros Pangalos spoke on the importance of Cyprus' European Union accession, while he analysed Athens' policy within the EU.

Press and Media Minister Dimitris Reppas stated the need for the promotion of the positive aspects of Cyprus' EU accession, noting that emphasis must be placed on the economic conditions in Cyprus as well as the island republic's geo-political position.

Cyprus Foreign Minister Ioannis Kasoulides noted the importance of Cyprus' accession into the EU and analysed tactics toward this goal. He also stated the need of a continued and coordinated effort, until the final goal is achieved.

Finally, Cyprus Interior Minister Dinos Michailides noted the positive elements of the island republic's proposed EU accession.

Athens News Agency

[07] Simitis article in new PASOK magazine

Athens 09/04/1998 (ANA)

On the question of shaping a modern Left proposal, Mr. Simitis said it is necessary for the Left to "break away with the deeply rooted distrust of the traditional, and particularly the communist, Left towards the individual. We must strengthen the auton omy of citizens, fortify their freedom with new institutions to encourage their initiative and their creativity."

"The need is evident for a fruitful dialogue on the major problems of the Left, Europe and the country.

This dialogue cannot take place with entrenchments and artificial fortifications. PASOK, as a basic contributing factor of a wider coalition of social forces, has the duty of being open to every proposal which promotes dialogue initiatives at all levels .

At exactly this point lies the value of the undertaking of the centre-left, as an effort to shape a big political, moral and cultural wave," he said.

PASOK Secretary Costas Skandalidis, who spoke at the launching of the magazine held at the Foreign Press Correspondents'(FPA) offices in downtown Athens, stres-sed that "seriousness, independence and an attractive style" will characterise the new publi cation.

The first 20,000 copies of Ekfrasis will hit the newsstands today, priced at 500 drachmas each. The publication is a continuation of the PASOK affiliated newspaper "Exormisis," which ceased publication only recently.

Former government spokesman and PASOK minister Telemahos Hytiris has been appointed as the magazine's director, while Andreas Pappas is the managing editor.

Both men underlined that Ekfrasis is not just targetted towards PASOK supporters, while Mr. Pappas noted that the magazine will not be transformed into a publication promoting the government's work.

Athens News Agency

[08] Burns on relations with gov't

WASHINGTON 09/04/1998 (ANA - T. Ellis)

"I'm happy to be with people whom I regard as friends," the US envoy said, adding that his relations with the Greek government are impeccable.

Mr. Burns further praised Athens' work on promoting privatisations, opening up markets and its efforts to reduce the number of ailing public utilities.

He also referred to the latest criticism directed at him by the Parliament President Apostolos Kaklamanis, as well as the backing extended to him by Foreign Minister Theodoros Pangalos.

Athens News Agency

[09] Gov't spokesman on dinner by PASOK deputies

Athens 09/04/1998 (ANA)

Mr. Reppas said the government is distinguished for its social sensitivity and for defending the rights of working people and added that it will submit an action plan for every year.

Commenting on the announcement by PASKE, the labour group affiliated with PASOK, which expressed disagreement over the government's recent economic policy, Mr. Reppas said the government has observed the scepticism of working people with sensitivity.

Athens News Agency

[10] Report by UN High Commission on Refugees presented

Athens 09/04/1998 (ANA)

The report will be published in 12 languages and its publication coincides with changes in Greek law, which will improve conditions for individuals seeking asylum in Greece.

Foreign Minister Theodoros Pangalos noted that Greece is a country of refugees, and that for the first time it will spent one billion drachmas in refugee aid.

Athens News Agency

[11] Pelican habitat destruction decried

Athens 09/04/1998 (ANA)

The two groups pointed to the Greek state for showing what they called a "criminal indifference" towards the Florina prefecture's Mikri Prespa Lake. The lake serves as a habitat for the silver pelican species. According to the two groups, a hunter enter ed the region on April 3 and fired shoots at the birds' nests, which subsequently drove them away.

The same hunter remained in the area for three hours, resulting in the destruction of about 200 nests, or 80 per cent of the total number. The Pespes Lakes Protection Society has lodged a complaint, while legal action was initiated against the hunter.

However, the EOE announcement said that the conviction of one person was obviously insufficient in doing justice and laying responsibilities.

The group demanded a solution over the pelican habitat's protection and posed two questions, one regarding the reason why such a large area is practically unguarded, and the other on why nothing has been done so far to implement a progrmme for that ecos ystem's protection.

Athens News Agency

[12] Poland's Kwasniewski winds up visit, meets with Simitis

Athens 09/04/1998 (ANA)

"The participation of countries which are at present negotiating their accession will considerably change the balances and procedures in the EU. We are willing to provide Poland and any other country currently negotiating with advice based on our experience in the EU," Mr. Simitis said.

The important thing for Poland is for the will to exist for EU enlargement, Mr. Simitis said, adding that Greece was in favour of Poland's accession.

Thanking Mr. Simitis for Greece's support, Mr. Kwasniewski said with respect to his country's accession to the EU and NATO that "we have a friend and ally in Greece."

"We understand only too well that these historic procedures now in progress necessitate great efforts on our part and I should like to give the assurance that Poland will do whatever is in its power to ensure the success of these efforts," he said.

Athens News Agency

[13] Parliament ratifies friendship protocol

Athens 09/04/1998 (ANA)

In a short speech, Foreign Undersecretary Yiannos Kranidiotis referred to the importance of the protocol in a period marked by the beginning of Poland's EU accession talks. He also underlined the good relations between the two countries, sealed by the Polish president's visit to Athens.

Athens News Agency

[14] Engineers' conference on public works projects

Athens 09/04/1998 (ANA)

Engineers' representatives said that they are against the creation of societes anonymes by the government for all major public works projects, a common policy during the last few years.

Environment, Town Planning and Public Works Undersecretary Christos Varelis admitted that certain issues of "incompatibi-lity" with foreign firms assuming projects in Greece often arise.

However, he added that when it becomes necessary for societes anonymes to be created, they must be well-staffed and organised with the best personnel available.

TEE Vice-President Costas Savidis said that the creation of public works societes anonymes did not accelerate construction or lower projects' cost.

Mr. Savidis noted that in the case of "Egnatia S.A.", operating costs have exceeded 20 per cent of funds allocated to date.

He added that "Egnatia S.A." has also spent about 50 per cent of its capital.

Athens News Agency

[15] High-speed rail link to Skopje

Athens 09/04/1998 (ANA)

The new "Inter-city" connection will improve rail service between Thessaloniki and the capital of the Former Yugoslav Republic of Macedonia (FYROM).

More rail connections, with Thessaloniki as the hub, will soon begin with other countries in the region, as lines connecting Istanbul, Sofia and Belgrade are scheduled to begin.

Athens News Agency

[16] Karamanlis making progress, doctors say

Athens 09/04/1998 (ANA)

Mr. Karamanlis was being treated with antibiotics, his personal doctor Evangelos Belonias told reporters yesterday.

Mr. Belonias said that Karamanlis's condition did not warrant his being admitted to intensive care and that "if everything goes well we will not need to do anything more".

He admitted that doctors treating the former president were concerned about the effect the patient's age could have on his recovery but added that Mr. Karamanlis was in good spirits.

Mr. Karamanlis was visited yesterday morning by New Democracy vice- president Ioannis Varvitsiotis and former deputy and European Commissioner Ioannis Paleokrassas as well as by family members.

Former prime minister George Rallis, former New Democracy president Miltiades Evert and veteran leftist Leonidas Kyrkos were also amongst those who visited the hospital to receive a briefing on the former president and prime minister's health.

Athens News Agency

[17] Archbishop's health 'slightly improved' but still critical

Athens 09/04/1998 (ANA)

Meanwhile, an announcement noted that Patriarch of Alexandria and All Africa Petros was admitted to Athens Onassion Cardiology Center yesterday for a series of tests.

Athens News Agency

[18] Treasures of Mount Athos exhibition to end on April 30

Athens 09/04/1998 (ANA)

According to Byzantine Museum figures, 650,971 visitors - of which 168,677 were students - visited the exhibition.

Athens News Agency

[19] Rocket attack on Citibank branch blamed on November 17

Athens 09/04/1998 (ANA)

The rocket did not explode.

Police said the rocket was fired by remote control five minutes before midnight on Tuesday from atop a parked vehicle outside the bank, located on Drossopoulou street in the central district of Kypseli.

Police said that the 2.36 inch-rocket failed to explode and only smashed the bank's glass window pane, as well as damaging three nearby cars. According to reports, the projectile was similar to a rocket stolen from an army camp in Larisa.

So far, no one has claimed responsibility for the attack, "but it certainly bears the markings of the November 17 group," a police spo-kesman told ANA.

The group, which made its debut in 1975 has claimed responsibility for the killing 20 Greeks and foreigners. Senior police said later that the absence of any claim of responsibility on the part of any organisation was raising fears of more attacks. Police close to the investigation said it was a November 17 tactic to carry out a number of attacks and clai m responsibility for the series later.

They clarified that the attack caused only minor damage because the rocket did not explode due to the fact that it was designed to detonate on impact when fired from a distance of more than 700 metres. They said they suspected that the suspects were awa re that the rocket would not explode when fired at such a close range, reducing the likelihood of any injuries to passersby. The two aspects of the attack concerning police were that the attack was carried out a short distance from the local police stat ion and that the rocket was placed on the roof of a car parked just 2.5 metres from the bank.

Police also believe the suspects were probably standing about 80 metres from the rocket when they fired it.

The government strongly condemned the rocket attack, saying it was not only directed against the specific target, but harmed the country's interests and undermined social stability.

"The government steadfastly condemns such actions and is stepping up its efforts to combat them," government spokesman Dimitris Reppas said.

"We condemn terrorist and criminal actions, even though in Greece such phenomena are on a smaller scale. Our country is not one in which terrorism flourishes," Mr. Reppas said.

Bomb arrest : In a related development, police arrested a 35-year-old man identified as Zacharias Vivilakis, whose fingerprint was reportedly found on an unexploded timebomb left outside an American Express branch in the northern suburb of Marousi last December.

Police, who searched his residence in the Galatsi suburb found a shotgun, a Smith and Wesson magnum .357 revolver as well as .9mm handgun, 12 detonators and brochures with instructions on how to make homemade explosive devices.

The suspect, who police said has been convicted in the past for participating in a nightclub protection racket was charged by a public prosecutor with illegal possession of arms and explosives and with manufacturing explosive devices.

Athens News Agency

[20] Three convicted of immigrant smuggling

Athens 09/04/1998 (ANA)

Sentencing Kaya Sukru, Cog Aycan and Ahmet Seyit on Tuesday, the court gave them the right to pay off their jail terms at 1,500 drachmas per day.

It also sentenced Turk Ali Garpa to 15 years and eight months imprisonment, payable at 1,500 drachmas per day, and fined him 4,500,000 drachmas for illegally transporting 41 Iraqis to the same area on the same day.

Athens News Agency

[21] Greece welcomes EU approval for Thessaloniki tender

Athens 09/04/1998 (ANA)

"The EU has given the green light for the continuation of negotiations with the second interim winner of the tender so that this key project for Thessaloniki can be accomplished," Public Works Minister Costas Laliotis said.

The complaint was lodged in 1996 by Makedoniko Metro, a consortium that was originally named the tender's interim winner. It was led by Michaniki, a listed Greek engineering contractor.

After two and a half years of talks, the two sides failed to reach agreement and the government embarked on negotiations with the Thessaloniki Metro consortium to carry out the long-delayed project.

Speaking at a news conference in Thessaloniki, Mr. Laliotis said that the European Commission's decision vindicated the government's line.

Talks with the new consortium on a contract would finish by June, funding for the project was ensured, and its completion was expected in five years. The contract would go to parliament for approval, he said.

The European Investment Bank would then be approached for the award of a loan to the new winning consortium, and commercial banks asked to provide loan guarantees.

In the interim, preliminary construction work would begin, Mr. Laliotis said.

Asked to name the cost of construction, Laliotis said the estimate was 40 billion drachmas in 1993 prices.

Of the total, 25 billion drachmas had been allocated to other projects, but the remainder would be secured from third Community framework or national funds.

In addition, a traffic survey of Thessaloniki was nearing completion that was essential to finalising the metro scheme, Mr. Laliotis said.

The Commission's decision to scrap Macedoniko Metro's complaint was the result of coordinated moves by the government and Christos Papoutsis, Greece's EU Commissioner, he said.

The procedures involved in countering the complaint were based on transparency, fair competition and the public interest.

Thessaloniki Mayor Constantine Kosmopoulos, who attended the news conference, also welcomed the Commission's decision, which he said vindicated the position of the city's local authorities for construction of the metro.

Athens News Agency

[22] Greek bank governor urges mergers, acquisitions

Athens 09/04/1998 (ANA)

Mr. Karatzas said that the economy suffered from an overcrowded market of small and medium-sized firms. He stressed the need for the creation of larger companies in the financial, construction, tourism and industrial sectors.

The governor of the country's largest bank urged Greek firms to become more internationally oriented by investing abroad and developing distribution networks in foreign countries.

"The time has come to globalise Greek capital just as it happened in the previous century," Mr. Karatzas told a conference held by The Economist magazine in Athens.

He said he hoped that Greece would participate in economic and monetary union by 2001 if both the government and the public followed the economic convergence programme with other EU countries.

Athens News Agency

[23] Greek stocks trade in narrow range, end flat

Athens 09/04/1998 (ANA)

The general index closed 0.20 percent lower at 2,124.76 points with most sector indices losing ground. Banks fell 0.19 percent, Insurance eased 1.09 percent, Investment dropped 0.64 percent, Leasing rose 0.77 percent, Industrials fell 0.61 percent,

Miscellaneous was 0.97 percent off, Holding rose 2.45 percent and Construction soared 4.13 percent.

The parallel market index for small cap companies rose 0.90 percent reflecting investors' appetite for smaller capitalisation stocks.

The FTSE/ASE-20 index fell 0.05 percent to 1,261.10 points. Trading was heavy with turnover at 54.3 billion drachmas.

Broadly, decliners led advancers by 135 to 104 with another 17 issues unchanged.

Epilektos, Shelman, Papahellinas, Katselis, Hellenic Sugar, Alte and Varyte scored the biggest percentage gains at the day's 8.0 percent limit up.

Nafpaktos Mills, Mouriades, Britania, Yalco and Rocas suffered the heaviest losses.

National Bank of Greece ended at 37,900 drachmas, Ergobank at 24,655, Alpha Credit Bank at 24,895, Delta Dairy at 3,685, Titan Cement at 23,200, Intracom at 19,650 and Hellenic Telecommunications Organisation at 7, 950.

Athens News Agency

[24] Greek mutual funds jump 15.77 pct in Q1

Athens 09/04/1998 (ANA)

The composition of the mutual funds market based on assets on March 31 showed money market funds accounting for 65.55 percent of the market, followed by fixed income funds with a 21.91 percent share, combined funds with a 9.07 percent stake and equity funds with 3.37 percent.

There are 28 mutual fund management firms currently operating in Greece.

Athens News Agency

[25] Greek tourism authorities speed up asset sale

Athens 09/04/1998 (ANA)

GNTO is expected to launch a tender for the lease of its three Xenia hotels in Nafplion as a single unit to become more attractive to investors, sources said yesterday.

Tenders are also planned for the lease of Xenia hotels in Lagonissi, Attica.

GNTO was expected to set conditions for a minimum annual fee of 200 million drachmas for a 30-year lease.

Investors would be obliged to invest in the hotels.

Athens News Agency

[26] Year-round tourism the focus of meeting on Rhodes

Athens 09/04/1998 (ANA)

Efforts at including more hoteliers, tourist agents, restaurant owners and other tourism professionals in a winter programme were looked at.

The target will be to fill tourists' days with visits to archaeological sites, cultural events, lessons, sports, organised excursions, etc.

Mr. Skoulas promised that EOT will support the effort to lengthen the tourist period through joint advertising with foreign tour operators and charter airlines.

Athens News Agency

[27] Greece's Alpha Finance reports 50 pct jump in 1997 profit

Athens 09/04/1998 (ANA)

The company's total revenue was 6.5 billion drachmas last year, up from 4.5 billion in 1996.

Its equity capital totalled 9 billion drachmas to show a net yield of 36 percent.

Alpha Finance's board decided to raise its dividend payment to 300 drachmas per share from 200 drachmas last year.

The firm has set up a joint venture with Greece's Public Power Corporation aimed at creating a subsidiary in Romania to seek investment opportunities in the energy sector.

Athens News Agency

[28] OECD report on Greek economy sees '98, '99 improvement

Athens 09/04/1998 (ANA)

According to the report, the Greek economy will continue to improve in 1998 and 1999 if the government continues structural changes and keeps salary raises in check.

The OECD report said inflation decreased by two percentage points in 1997 and the public deficit fell to 4 per cent of GDP during the same year, as compared to 7.5 per cent in 1996.

The report noted that the deficit of the external balance - 4 per cent of GDP in 1997 compared to the 2.5 per cent in 1995 - led to a 14 per cent devaluation of the drachma at its incorporation into the Exchange Rate Mechanism (ERM) last March.

OECD also notes that inflation must reach the European Union average in 1999, while the current transaction deficit must be stabilised in 1998 and 1999.

The organisation expects a small slowdown in the growth rate to 3 per cent in 1998, due to the strict fiscal policy and the loss of buying power, while a recovery is expected for 1999.

The report calls for a reduction of the public deficit to 2.4 per cent of GDP in 1998 by reining in public spending by 1 per cent of the GDP, but it estimates that it will end up at 2.9 per cent.

It also calls on Greece to continue structural changes in the job market and the public sector, which has a considerable deficit.

Finally, the organisation noted that the danger of a recession will be decreased by the effective application of the 1998 budget.

Athens News Agency

[29] Greece's Delta Informatics posts 29 pct profit rise in 1997

Athens 09/04/1998 (ANA)

Its net profit rose 29 percent to 1.79 billion last year. The company's board will propose a dividend payment of 150 drachmas per share and a capital increase.

Athens News Agency

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