Athens News Agency: Daily News Bulletin in English, 98-05-07

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

CONTENTS

[01] Simitis briefs party leaders on recent euro summit, gov`t policy

[02] State-run Ionian Bank to be sold through bourse

[03] Positive ECOFIN recommendation regarding Greek public deficit

[04] Athens' priorities for CoE presidency detailed

[05] Albanian PM to speak at northern Greek industry meeting

[06] Kranidiotis criticism of latest Holbrooke mission

[07] State Dept. on reports citing PKK office in Athens

[08] Gov't, PASOK delegation to visit US

[09] Simitis replies to tabled questions over Greece's course towards EMU

[10] OA technicians considering recourse to Eurocourt

[11] Athens replies to Kyprianou criticism over Holbrook visit

[12] Cyprus-Greece cooperation 'excellent', Clerides states

[13] Tsohatzopoulos to brief Parliament ary committee today

[14] Finnish Speaker in Athens today

[15] Piraeus mayor remanded in custody over financial irregularities

[16] Gov't denies friction with Christodoulos

[17] Gov't says revitalisation of state network ERT proceeding well

[18] Anarchist group claims responsibility for attack on Reppas' office

[19] Economic News

[01] Simitis briefs party leaders on recent euro summit, gov`t policy

Athens, 7/5/1998 (ANA)

Mr. Simitis first briefed Costas Karamanlis, the leader of the main opposition New Democracy party, who told reporters afterwards that the government had to change its tactics if Greece was to meet Maastricht targets for EMU accession.

He said he told the prime minister that the government had to show a willingness to overhaul the public sector, carry out wide-ranging privatisation, contain public spending, and fuel growth.

"Otherwise, our country is in danger of being relegated to the sidelines and the prime minister will be answerable for this," Mr. Karamanlis said.

Communist Party of Greece (KKE) Secretary General Aleka Papariga said her party would reject measures that bowed to the "interests of bankers, industrialists, rich Greeks and Europeans in the name of EMU."

Coalition of Left and Progress leader Nikos Constantopoulos criticised both the ruling PASOK party and the main opposition for their policies regarding Greece's participation in EMU.

"I am concerned about what is in store for workers after what I heard from the prime minister and the main opposition leader," Mr. Constantopoulos said, referring to the news conference held by Mr. Karamanlis.

Greece was at risk of being left out of EMU not through mistakes by the public but through governments taking the wrong decisions, Mr. Constantopoulos added.

"All 10 million Greeks must be included in economic and monetary union, not half. The euro is not enough for the European Union. We need radical policies (to combat) unemployment and bolster the Europarliament's role," he said.

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas, a former PASOK minister, expressed the fear that Greece would weaken in the EU.

He complained that Mr. Simitis had kept his cards to himself: "I had a general briefing, like you reporters, but I am none the wiser."

Mr. Tsovolas said he hoped that the prime minister would go into more detail when he spoke in Parliament.

After his briefing yesterday, Political Spring (Pol.An.) leader Antonis Samaras described the countryYs exclusion from the first group of countries to join EMU as a national failure.

"Responsibilities are enormous and of a national dimension," Mr. Samaras said, adding that "manipu-lation and deceipt were working well."

Mr. Simitis is scheduled to give a news conference at Zappeion Hall today at 1 p.m., where he will discuss the government's positions on EMU.

Athens News Agency

[02] State-run Ionian Bank to be sold through bourse

Athens, 7/5/1998 (ANA)

National Economy and Finance Minister Yiannos Papantoniou announced the decision after talks with the chairmen of Ionian and Commercial Banks. Both banks are listed on the bourse.

Under the plan, Commercial Bank, which holds a 62 per cent stake in Ionian Bank, will offer a majority stake through the bourse.

The plan will need approval from Commercial Bank's shareholders, who are due to meet in June.

A sale process and timetable will be announced after the shareholders' assembly.

Ionian Bank is Greece's fourth largest commercial bank.

It has assets of 2.2 trillion drachmas and a 7.2 per cent stake in the domestic banking market, holding around 6 per cent of loans and 7.5 per cent of deposits nationwide.

The bank has about 4,350 employees and 220 branches.

In 1997 Ionian posted a fairly low return on assets (0.1 per cent against 1 per cent on average for all Greek banks, and 2 per cent for private banks). It also showed low returns on shareholders equity (1.3 percent against an average 14 percent for all Greek banks, and 27 percent for private banks).

In 1997, deposits were 1.77 trillion drachmas against 1.31 trillion in 1996, and loans 557 billion drachmas from 453 billion a year earlier.

Shareholders' equity in 1997 was 88.2 billion drachmas. Profits in the same year were 8.5 billion drachmas, which analysts say is low in relation to the bank's size.

Mr. Papantoniou justified the government's decision to sell the bank on the grounds that Ionian Bank could not remain competitive in the domestic banking sector under its present status and following introduction of the euro. He said that a solution to merge Ionian Bank with Commercial Bank - its main shareholder - was rejected as carrying a greater social and economic cost.

Such a solution would lead to 3,100 redundancies or incentives for early retirement that would burden the bank financially, he said.

Answering a relevant question in Parliament, National Economy Undersecretary Alekos Baltas said that the sale of Ionian Bank instead of a merger ensures the future of the financial institution and its empolyees.

Mr. Baltas added that a merger with Commercial Bank could have meant the loss of 3,100 jobs and the closure of 153 branches out of 546 the bank currently maintains. Opposition reaction: The Coalition of the Left and Progress (Synaspismos) in an announcement expressed its absolute opposition to the decision.

The announcement added "with the privatisation of the profit-making Ionian Bank, the government overturned its own commitments..."

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas stated that his party is categorically against privatisation.

He proposed the bank's restructuring and development within the Commercial Bank group and under continued state ownership. OTOE: In a related development, the General Confederation of Workers of Greece's (GSEE) leadership and their counterparts at the Federation of Bank Employee Unions (OTOE) yesterday met and discussed the planned privatisation of Ionian.

GSEE's presidium came under pressure from OTOE members to mobilise against the government decision.

Meanwhile, OTOE called a general assembly meeting for today, where the organisation's president, Dimitris Kouselas, is expected to announce strike actions.

The Ionian Bank employees' unions decided on a four-hour work stoppage today for Attica branches, between 11:30 a.m. and 3:30 p.m., as well as a rally outside the bank's central offices.

They also called for a 24-hour, nation-wide strike tomorrow and a 48-hour strike at the bank's data processing centre.

Athens News Agency

[03] Positive ECOFIN recommendation regarding Greek public deficit

BRUSSELS, 7/5/1998 (ANA - P. Pantelis)

Greece is the only member-state for which the process continues to be valid concerning excessive public deficits, subject to Article 104 C of the Treaty. However, it is considered very likely that this process will be implemented in Greece for the last time by ECOFIN Ministers on May 19.

It is estimated that the Greek deficit in 1998 will cover EMU criteria and Greece will be rid of the process concerning excessive deficits.

According to authoritative European Union sources, the proposal recommended by the European Commission recognises that the Greek public deficit has decreased to 4 per cent of GDP in 1997 from 7.5 per cent of GDP in 1996, as anticipated in the Greek conv ergence programme. It was added that the Greek public debt is continuing its downward trend towards EMU criteria (60 per cent) and has reached 108.7 per cent of GDP (smaller than the public debt of Italy and Belgium).

The recommendation stresses that the Greek government aims at reducing the public deficit to 2.4 per cent in 1998 and has undertaken to implement fiscal measures adopted in the framework of the convergence programme to achieve this target.

Athens News Agency

[04] Athens' priorities for CoE presidency detailed

STRASBOURG , 7/5/1998(ANA - C. Haralambopoulos)

He noted that Greece will promote decisions of the 102nd conference of the CoE's Ministerial Committee, which concluded here yesterday.

Mr. Papandreou said that the creation of a post for a human rights commissioner, upgrading of the CoE's parliamentary assembly's relations with the Ministerial Committee and the creation of a single unified court to combat organised crime through cybers pace will be the major issues that the Greek presidency will promote.

Athens News Agency

[05] Albanian PM to speak at northern Greek industry meeting

Athens, 7/5/1998 (ANA)

"The association's policy is to stress economic relations with Albania," SBBE president Vassilis Takas told a news conference yesterday.

Mr. Takas said the Albanian market was virgin territory that had recently firmed up for Greek businesses.

Mr. Nano is due to arrive in Thessaloniki this afternoon and he leaves on Sunday.

The Albanian premier is also expected to meet Macedonia-Thrace Minister Philippos Petsalnikos and businessmen in the region.

Athens News Agency

[06] Kranidiotis criticism of latest Holbrooke mission

Athens, 7/5/1998 (ANA)

Mr. Kranidiotis was speaking before the parliamentary foreign affairs committee on Holbrooke's failure last weekend to restart reunifi-cation talks on Cyprus.

"Holbrooke's mistake was that he did not exert the appropriate pressure on the Turkish Cypriot side, he did not attribute responsibility (for the failure) where it belonged and he maintained a policy of equal distances," Mr. Kranidiotis said. Mr.

Kranidiotis hastened to add, however, that some of Holbrooke's statements shortly before leaving the island republic on Monday had been misconstrued.

The positive element which emerged from Mr. Holbrooke's mission, Mr. Kranidiotis said, is that the United States is not going to recognise the pseudo-state of Turkish Cypriot leader Rauf Denktash and that it was made clear that it is the Turkish side wh ich is intransigent, provocative and the trouble-makers of the region.

On the planned purchase and installation by Nicosia of Russian-made S-300 anti-aircraft missiles, Mr. Kranidiotis said the issue was one which concerned the Cypriot government.

"We support the position of Cypriot President Glafcos Clerides that if there is progress in the Cyprus problem and certain of his proposals are accepted, such as the demilitarisation of the island, then the installation of the missiles could be deferred ," Mr. Kranidiotis said.

He added that Athens would be embarking on an international campaign to inform public opinion and governments about the Cyprus problem and Greek- Turkish relations.

Athens News Agency

[07] State Dept. on reports citing PKK office in Athens

WASHINGTON, 7/5/1998 (ANA - T. Ellis)

McClenny.

"The US cooperates closely with Greece in combatting both domestic and international terrorism", the statement read, adding that "we are seeking Greek government views on whether or not a new PKK office is, in fact, being established."

The State Department official observed that Washington viewed the alleged political support offered to PKK by some members of Greece's Parliament as "inconsistent with both a responsible stance towards international terrorism and the goal of reducing Gr eco-Turkish tension."

Athens News Agency

[08] Gov't, PASOK delegation to visit US

Athens, 7/5/1998 (ANA)

Activities during the visit include participation of a conference on expatriate Greeks and a conference of PASOK branches in North America, focusing on finalising the partyYs organisational shape.

While in US, the Greek delegation will also have contacts and meetings with Democratic Party representatives, Congressmen, senators and other officials.

Foreign Undersecretary Yiannos Kranidiotis and Finance Undersecretary Nikos Christodoulakis are among the members of the delegation.

Athens News Agency

[09] Simitis replies to tabled questions over Greece's course towards EMU

Athens, 7/5/1998 (ANA)

Mr. Simitis placed responsibilities on the main opposition New Democracy government (1990-93), saying that "if it had achieved its targets in 1993, in the convergence programme it had submitted, our country would have been in the first group of EMU and we would not have found ourselves two years behind."

He referred to the targets of the government which found inflation at 14 per cent in 1993 and decreased it to 5 per cent at the end of 1997 and to the deficit, which was also 14 per cent in 1993 and reached 4 per cent in 1997, decreasing by 10 percentag e points.

"These achievements were unprecedented for the European Union and they show the magnitude of our effort. We achieved a feat," he said.

Mr. Simitis also assured that there will be no new measures and new interventions. "The government has not committed itself with anyone on new economic measures. There is no new convergence programme, but updating and a two-year time extension of the pr evious one," he added.

On his part, Mr. Constantopoulos said Greece's exclusion from EMU is a "negative event" and stressed that the Greek people must be briefed on the government's commitments. "You will not have our consent for what you are doing," he said.

Athens News Agency

[10] OA technicians considering recourse to Eurocourt

Athens, 7/5/1998 (ANA)

The association's claim is based on the fact that the new law provides for cuts of up to 10 per cent to technicians and flight engineers' salary, while increasing their weekly work hours to 48.

According to members of the associationYs board, lawsuits have been filed against Transport Minister Tassos Mantelis and Foreign Minister Theodoros Pangalos, in relation to statements regarded as harmful to the company, its credibility and finances.

The association also rejected the option of a strategic invester, claiming that the national carrier will again be profitable after moving to the new Stata airport.

Athens News Agency

[11] Athens replies to Kyprianou criticism over Holbrook visit

Athens, 7/5/1998 (ANA)

Government spokesman Dimitris Reppas made the statement in reply to criticism by the Cypriot House of Representatives Speaker Spyros Kyprianou, who implied yesterday that Prime Minister Costas Simitis had refused for one year to see him for talks on var ious aspects of the Cyprus problem.

Commenting on claims by Mr. Kyprianou that Athens had changed its stance towards Turkey as well as on the Cyprus problem, Mr. Reppas said "our policy is in the same direction as that of Nicosia", adding that the policy was effective to a great extent, c iting the holding of joint Greece-Cyprus military exercises and the commencement of negotiations for Cyprus' accession to the EU.

Mr. Reppas said the Greek and Cypriot governments were in constant contact for the best possible handling of the Cyprus problem.

Athens News Agency

[12] Cyprus-Greece cooperation 'excellent', Clerides states

NICOSIA, 7/5/1998 (ANA/CNA)

In a written statement, the president also thanked Greece for its unwavering support in Cyprus' efforts to find a peaceful settlement of the Cyprus question, adding that bilateral ties should be safeguarded at all costs.

The statement was issued here yesterday in the wake of criticism Mr. Kyprianou levelled against the Greek premier that he subscribes to US policy with regard to improving relations with Turkey.

Mr. Kyprianou's comments came after US envoy for Cyprus, Richard Holbrooke, failed to resume the stalled peace talks because of Turkish Cypriot demands for the withdrawal of Cyprus' application for European Union membership and recogntiion of the illega l regime in the Turkish occupied part of the island.

"The government of the Republic of Cyprus, undertaking fully its responsibilities, has not sought and will not seek to apportion non-existent responsibilities for so-called bad moves on the Greek government and underlines that relations between Athens a nd Nicosia need to be safeguarded at all costs", President Clerides said.

Responding in a written statement later, Mr. Kyprianou said he fully acknowledged the necessity for the existence of excellent relations between the Cypriot and the Greek governments.

The statement added that his criticism was neither aimed at upsetting such relations or questioning the contribution by Greek governments.

"Even though the two governments talked us into believing that the US initiative would lead to more positive developments, we are currently before the worst conditions ever for the Cyprus issue," Mr. Kyprianou observed.

Athens News Agency

[13] Tsohatzopoulos to brief Parliament ary committee today

Athens, 7/5/1998 (ANA)

Athens News Agency

[14] Finnish Speaker in Athens today

Athens, 7/5/1998 (ANA)

Ms Uosukainen is scheduled to meet with President Kostis Stephanopoulos, Kaklamanis and Foreign Minister Theodoros Pangalos, as well as opposition party leaders and other parliament officials.

Athens News Agency

[15] Piraeus mayor remanded in custody over financial irregularities

Athens, 7/5/1998 (ANA)

The remand decision was taken by public prosecutor Aristides Frangiadakis and investigating magistrate Maria Frangiadakis.

The reasoning for the decision was that Mr. Logothetis might commit further offences.

"I am very pleased because today the true face of (Prime Minister Costas) Simitis' oligarchy revealed itself. The frame-up against me which began in 1994 is now being manifested as panic, because none of the charges can excuse the very harsh measures t aken against me. It's all a frame-up. I defy the Institute of Chartered Accountants to come out and say in public who stopped them from publishing the figures which rebut all charges," Mr. Logothetis said.

According to yesterday's decision, Mr. Logothetis must be remanded in Korydallos jail before sundown.

Athens News Agency

[16] Gov't denies friction with Christodoulos

Athens, 7/5/1998 (ANA)

"There is no such issue," government spokesman Dimitris Reppas said, commenting on press reports claiming the fact that Mr. Simitis would not be attending the prelate's official installation ceremony on Saturday.

The spokesman said Mr. Simitis would not be attending simply because it was not on his agenda, reiterating that there was "no problem" with Christodoulos, whom he described as "gifted".

A statement, meanwhile, issued by the office of the Holy Synod said the ceremony was "a major ecclesiastical event", stressing that Christodoulos had never asked to be conferred with honours accorded a head of state. On his part, President Kos tis Stephanopoulos will receive Christodoulos at noon tomorrow for a ceremony at the presidential mansion, attended by members of the Permanent Holy Synod and by Education and Religion Minister Gerasimos Arsenis, according to a statement by the president' s office.

Mr. Stephanopoulos is not set to attend the enthronement ceremony on Saturday.

Athens News Agency

[17] Gov't says revitalisation of state network ERT proceeding well

Athens, 7/5/1998 (ANA)

The state-run broadcaster's organisational chart and programme schedule are now being prepared, Mr. Reppas said, adding that the recording of ERT's assets - which total 30 billion drachmas - has just been completed.

Mr. Reppas said ERT would soon be broadcasting its programmes by satellite or via cable systems to all five continents. On the issue of reception in border areas, he said there was a problem with interference coming from Turkey, which would be resolved by an international agency.

Asked to comment on plans for digital television broadcasting, Mr. Reppas said the Hellenic Telecommuncations Organisation (OTE) would in the next few days be submitting its proposal and the government would make final decisions.

Athens News Agency

[18] Anarchist group claims responsibility for attack on Reppas' office

Athens, 7/5/1998 (ANA)

The homemade explosive device, made up of several gas cannisters, burned the door of the minister's political office on the fifth floor of a building on A. Soutsou street, in the downtown district of Kolonaki. Police said an unidentified caller tele phoned the Athens daily "Eleftherotypia" saying that the shadowy group was claiming credit for the attack.

He also claimed said that "violent resistance to the anti-popular mesures of capitalists" would continue, and called for the release of two suspects being held by police.

Mr. Reppas, who inspected his office, told reporters that two of his associates were working at the office when the attack took place, but no one was hurt. He added that damage was "minor".

In condemining the attack, Mr. Reppas said: "such actions cause some material damage, but have specific targets, such as public figures, and Greek society should not consider itself as hostages of such activities, because we will be led to an impasse an d I believe that such extremist phenomena should be confronted with a cool mind". He said his office was not being guarded by police.

The caller also called for the release of Nikos Maziotis, arrested earlier this year on suspicion of involvement in a number of bomb attacks.

Police said three of the six gas cannisters making up the explosive device had not gone off and were being tested by forensics for fingerprints.

"Arsonists of conscience" has claimed responsibility for 26 firebombings between June and November 1997. Police believe the group is also behind another 15 attacks since then, including one in downtown Athens at the Retired Officers' Club.

Athens News Agency

[19] Economic News

The Greek-Spanish Business Union was launched at the Athens Chamber of Trade and Industry following an initiative by the Spanish Embassy.

President of the new business union is George Vasilakis, owner of Technocar, which imports Spanish Seat cars.

The union, which aims eventually to upgrade its status to that of a trade chamber, plans to help boost business between the two countries, promote investments, provide information and services, and hold conferences and seminars.

Greek and Spanish bilateral trade is worth around 1.3 billion dollars - a figure both countries want to see grow. The trade balance has been against Greece for many years.

Spanish exports to Greece are worth about 1.0 billion dollars annually, comprising cars, yarn, textiles, tiles, iron and steel.

Greek exports to Spain are worth about 300 million dollars from sales of oil, fats, cereals, goods made of non-metallic minerals and leather.

Officials say there is scope for exports of Greek farm and industrial products to Spain, and participation in industrial joint ventures, including foodstuffs processing and preserving aimed at Spanish-speaking countries and the Balkans.

Backing the union is the Federation of Greek Industry (SEV), led by its president, Iason Stratos.

Mr. Stratos, whose group has a good working relationship with the Association of Employers of Spain, told the union's launch that SEV would work to promote mutual trade interests.

The president of the Athens Chamber of Trade and Commerce, Yiannis Papathanasiou, welcomed the union's creation and said he hoped that healthy political ties between the two countries would be extended to the economic sector.

The president of the Hellenic Foreign Trade Board, Yiannis Tzen, said that beyond outmoded concepts of trade rivalry lay opportunies for Greece and Spain to cooperate and complement each other, including joint investments in third countries.

Mr. Tzen called for the creation of a counterpart for the union in Spain. Spanish companies operating in Greece include national carrier Iberia, Zare (apparel), Repsol (fuel and mineral oil), Mango, Springfield and Maffrei.

A large Spanish chain is planning to open three hotels in Greece, and there is Spanish participation in a consortium designing an undersea tunnel for the Malliakos Gulf in the east of the country.

The embassy's commercial attache, Alejandro Uerta, said Spain saw opportunities for business cooperation in the Olympic Games, which Athens is hosting in 2004, due to Barcelona's experience in the same event.

Other investment opportunities lay in the two countries' privatisation programmes, Mr. Uerta said.

He acknowledged that the drachma's 13.8 devaluation on March 14 to ease entry into the European Union's exchange rate mechanism had made Greek products more competitive.

The same had happened when the peseta was devalued many years ago.

According to the chief of the Spanish section of the Athens Chamber of Trade and Industry, Stelios Athiniotakis, Spain could become a bridge to the Atlantic for Greek exports to Latin America, and Greece a bridge for Spanish exports to southeastern Eur ope.

On May 13, the Union of Spanish Contractors and Industrialists will hold a seminar at the Chandris Hotel in Athens as part of a strategy to promote goods and services in Greece. Spanish ambassador urges Latin American, Balkan investments: Spain's ambassador in Athens, Javier Jimenez Ugarte, told the union's launch that Greek businesses could take advantage of the fact that Spain is the second biggest investor in Latin America, where the country traditionally has a privileged status.

In turn, Spanish businesses could take advantage of the Greek market's experience in Balkan countries.

A visit by Greek foreign minister Theodoros Pangalos to Spain had enabled the country to better understand Athens' positions on national issues, including the Aegean and Cyprus.

Spain had made limited arms sales to Turkey, and was equally willing to sell its armaments to Greece, Mr. Ugarte said. Greek equities slump in overbought market: Greek equities yesterday changed direction on the Athens Stock Exchange to end substantially lower in a retreat from the previous day's record close.

Traders said the market looked overbought to many investors who felt nervous at the 2,700-point resistance level.

The general index ended 1.97 percent down at 2,587.62 points with most sector indices losing ground.

Banks fell 2.10 percent, Insurance dropped 3.50 percent, Investment eased 1.95 percent, Leasing rose 0.02 percent, Industrials rose 1.51 percent, Construction fell 2.82 percent, Miscellaneous increased 2.33 percent and Holding plunged 5.30 percent.

The parallel market index for small cap companies eased 2.44 percent.

The FTSE/ASE 20 blue chip index dropped 2.26 percent to 1,565.58.

Trading was heavy with turnover at 87 billion drachmas.

Broadly, decliners led advancers by 149 to 100 with another 15 issues unchanged.

Minoan Lines, Nematemboriki, Strintzis Lines, Rilken, Bank of Pireaus, Bank of Athens, Papoutsanis, Rokas and Fourlis scored the biggest percentage gains hitting the 8.0 percent limit up.

Klonatex, Altec, Ideal, Dane Sea Line and Hellenic Biscuits suffered the heaviest losses.

National Bank of Greece ended at 53,400 drachmas, Ergobank at 27,550, Alpha Credit Bank at 32,900, Delta Dairy at 5,590, Titan Cement at 25,000, Intracom at 18,900 and Hellenic Telecommunications Organisation at 8, 650.

In the domestic money market the drachma eased against most foreign currencies ending a two-day rally. Greece should stick to convergence plan to gain euro entry-banker: Strict adherence to the government's economic convergence programme will secure Greece's participation in the euro on January 1, 2002, when the currency is introduced in physical form, the governor of National Bank of Greece said yesterday.

Theodoros Karatzas, addressing a shareholders' assembly, said that leaders at a European Union summit to launch the euro had praised progress made by the Greek economy based on implementation of its EU convergence programme.

He predicted that interest rates would start falling within 1998, a trend likely to accelerate next year.

Mr. Karatzas announced that National Bank of Greece's first quarter profits rose 41.1 percent from the corresponding period last year to 27.8 billion drachmas, setting the bank on a course for higher results in the year.

The bank would pay a 1,100 drachma dividend.

Mr. Karatzas said that National Bank was able to double its 1997 pre-tax profits and provisions to 123.4 billion drachmas from 61.4 billion in 1996, despite the impact of international and domestic turmoil in financial markets.

He underlined the importance of a restructuring plan already in progress at the bank, saying that a decision to stop political interference in the bank's operation had paved the way for the group's modernisation.

Mr. Karatzas said that a decision to merge with Mortgage Bank, a member of the National Bank of Greece group, would create a banking group with assets of more than 12.5 trillion drachmas, deposits totalling 10 trillion and a loans portfolio of more tha n 3.3 trillion drachmas.

National Bank was establishing itself as a major regional bank through an expansion programme in the Balkans following the opening of branches in Sofia, Bucharest and Tirana, Mr. Karatzas said.

The bank plans to open new branches in Durres and Belgrade, and to acquire local banks in the region. Albanian PM to speak at northern Greek industry meeting: Albanian Prime Minister Fatos Nano will be guest speaker at a meeting of the Association of Northern Greek Industries (SBBE) tomorrow.

``The association`s policy is to stress economic relations with Albania``, SBBE president Vassilis Takaw told a news conference yesterday.

Mr. Takaw said the Albanian market waw virgin territory that had recently firmed up for Greek businesses.

Mr. Nano is due to arrive in Thessaloniki this afternoon and he leaves on Sunday.

The Albanian premier is also expected to meet Madeconia-Thrace Minister Philippow Petsalnikos and businessmen in the region.

Athens News Agency

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