Athens News Agency: Daily News Bulletin in English, 98-07-25

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

CONTENTS

[01] KYSEA council meets to consider armaments programme

[02] Greece paints latest D emirel statements as 'highly provocative'

[03] Gov't backs Pangalos, Tsohatzopoulos statements over US role in Cyprus problem

[04] Athens reiterates intent to follow through on 'Olympic Truce'

[05] White House decries Pangalos statements

[06] Expatriate Greek MPs on Hios

[07] Greek health official details structural changes in ESY

[08] Small US aid to Cyprus maintained for '99

[09] 'Symposium of Symi' int'l event scheduled

[10] French high scholl students received by Parliament President

[11] Greek banks post increased profits in 1997

[12] Greece makes progress in using EU funds, commissioner says

[13] Greek stocks slump in wake of sell-off abroad

[14] End-week selling spree dampens upturn in Athens bourse

[15] Alpha Credit Bank reports 6.5 pct drop in H1 profit

[16] National Bank of Greece to seek shareholders' OK for merger

[17] Railworkers brush off strike, management says

[18] Alpha Credit Bank gives weekly forex loan rates

[19] Commission probing ag ministry bill to write-off 162.8 billion drachmas in debts

[20] IOBE reports heightened economic indicators, orders

[01] KYSEA council meets to consider armaments programme

Mr. Tsohatzopoulos said the final contract for the construction of the four gunboats at Hellenic Shipyards would be signed next month. Speaking to reporters after a meeting of the Government Council for Foreign Affairs and Defence (KYSEA), which wa s chaired by Prime Minister Costas Simitis, Mr. Tsohatzopoulos said the programme currently underway at Scaramanga for the modernisation of submarines already in service would continue.

In addition, construction of three new submarines at Hellenic Shipywards in a joint venture with foreign shipbuilders would mark the first time submarines are built at a Greek shipyard.

He said Elefsina Shipyards would be commissioned to build a fuel tanker and three missile boats for the Hellenic Navy.

Yesterday's meeting focused on the government's multi-million dollar armaments programme, aimed at maintaining and further improving the defence capability of all three branches of the armed forces.

Mr. Tsohatzopoulos said plans to purchase new fighter aircraft and radar systems were currently in the evaluation stage, adding that KYSEA had instructed the defence ministry to proceed with final negotiations for the procurement of long-range ground-to -air missiles. The choice is now between the US-made Patriot system and Russian-made S-300 missiles,with final negotiations to be aimed at securing a better purchase deal and immediate delivery.

KYSEA also approved the procurement of short-range anti-aircraft missiles for the Greek military. Mr. Tsohatzopoulos noted that the decision concerning the purchase of tanks would be taken in the first three months of 1999.

He said KYSEA had issued instructions for negotiations for the procurement of a number of weapons systems to continue until September, when the council will meet again to take final decisions.

A final decision will be taken in September as well on the procurement of the long-range anti-aircraft missiles to replace the ageing Nike system.

The decision for the procurement of short-range missiles (Shorads) for the army will also be taken in September.

Mr. Tsohatzopoulos said the National Defence Ministry's target was for all agreements provided under the government's five-year armaments programme to have been approved by KYSEA by the end of 1998, with the exception of new tanks.

Athens News Agency

[02] Greece paints latest D emirel statements as 'highly provocative'

"This statement reveals Turkey's true intentions and the basis of its policy, which is the revival of the Ottoman Empire," government spokesman Dimitris Reppas said.

Mr. Demirel reportedly said that "Cyprus will not be allowed to become a second Crete" which, he claimed, had been "given" to Greece by Turkey under the particular circumstances of the times.

Mr. Reppas said Turkey had "psychoses" which did an injustice to the Turkish people, "because they keep them (trapped) in a quagmire at a time when Turkish leadership should be working for the development of the country and the prosperity of its people. "

The Greek spokesman called on Turkey to contribute towards creating "suitable conditions" in the region rather than resorting to statements of the type made by Mr. Demirel, which created a climate of tension.

He also said there were no signs indicating a military incident in the Aegean over the summer, underlining however, that Greece was "ready to confront all eventualities resulting from others' adventurist initiatives".

Mr. Reppas also said that Greece and Cyprus were factors of stability and peace in the region, adding that the region's stability and security are everyone's responsibility, including the European Union. He also called on the current Austrian EU preside ncy to undertake initiatives in order to confront existing problems.

He clarified that the initiative Greece wished for was "restoration of political communication" with Turkey and the Turkish Cypriot leadership, which was cut off by Turkey after the EU Luxembourg summit last December. Opposition reactions: -- Main opposition New Democracy spokesman Aris Spiliotopoulos on his part blamed the Greek government for Turkey's recent provocative attitude.

He noted that Mr. Demirel's interview was "insulting for the civilised world and international law and order", but was useful since it proves who is the culprit of the Cyprus tragedyIwho created the problem and refuses to to solve it."

He added that, unfortunately, Turkey is encouraged to increase its provocations instead of being forced to abide by United Nations' resolutions.

Communist Party of Greece (KKE) Secretary General Aleka Papariga said yesterday that the government is well aware that Cyprus has already been partitioned and that this is taking place with the responsibility of the United States and NATO, as well as wi th the full tolerance, if not agreement, of the European Union.

"If the government wants to exert pressures on all those promoting partitioning, it has nothing else to do than to state that it is not supporting and is not participating in the implementation of NATO's new structure," she said.

Former ND leader Miltiades Evert yesterday requested of the foriegn ministry to call the US ambassador to Athens and hand him a demarche over recent statements by a White House representative on the Cyprus issue.

Finally, Political Spring (Pol.An) leader Antonis Samaras underlined that " Cyprus will never become eastern Thrace, Ionia, Imvros or TenedosI"

He also accused the government for what he called a submissive attitude, which in turn explained the attitudes of Turkey, the United States and Germany.

Athens News Agency

[03] Gov't backs Pangalos, Tsohatzopoulos statements over US role in Cyprus problem

Mr. Reppas said that these statements were necessary to remedy matters and for the international community to remain steadfast in the framework it has chosen for the Cyprus issue, adding that the statements by the US officials are incompatible with the good climate prevailing in relations between the two countries and do not meet necessary needs for tackling problems and primarily the issue of Cyprus.

Replying to a question on statements by the foreign minister, who termed pre-election statements by US President Bill Clinton as "grand lies", Mr. Reppas said that Mr. Pangalos spoke truthfully and that figures he invoked have a historical bearing.

Mr. Reppas said that the Greek FM did not make up things.

On the question of whether the Greek government's position remains on the US initiative on Cyprus and if, in other words, it remains welcome, Mr. Reppas said that the Greek government desires progress on the Cyprus issue, as well as the intensification of the US government's efforts for the problem to be tackled in a just and objective way.

Mr. Reppas said that ground exists which has not been exhausted since pressure has not been exerted on Turkey, which is observing a provocative and destabilising stance.

Referring to the visit to Athens by US envoy Thomas Miller, Mr. Reppas said that he will probably meet the foreign ninistry's leadership on Tuesday.

Athens News Agency

[04] Athens reiterates intent to follow through on 'Olympic Truce'

The proposal was made by the government prior to the Greek capital's successful bid to host the 2004 Olympic Games.

The diplomats are being hosted by the Greek government for a week, in order to be briefed on preparations for Olympics.

Addressing the diplomats in the coastal resort of Vouliagmeni near Athens yesterday afternoon, Mr. Papandreou said the truce honoured during the Olympic Games in antiquity provided a mechanism for mediation and conflict resolution.

During Athens' bid to host the 2004 Games, he said, Greece pledged to help revive the "Olympic Truce" as an effective mechanism for the cessation of conflicts and the promotion of peace.

The concept of the "Olympic Truce" is on the agenda of the UN general assembly, which has repeatedly issued resolutions calling on members to observe its intent.

One of Greece's objectives in view of the 2004 Games, Mr. Papandreou said, was to secure the implementation of the proposal during the Games a nd maintain its momentum throughout the new millennium.

Referring to the crisis in the Serbian province of Kosovo, Mr. Papandreou noted that the concept of truce was now recognised as an important intermediate step towards achieving a more enduring solution to the conflict, a position adopted also by the Contact Group.

Athens News Agency

[05] White House decries Pangalos statements

"Those were remarks unbecoming a senior official of a close ally of the United States, and the remarks were inconsistent with what are otherwise close and warm bilateral relations we enjoy with the government of Greece," White House spokesman Mike McCur ry said in response to questions.

"We certainly would hope that the foreign minister would revise and extend his remarks, because they were not appropriate," he added.

"It was bad enough he directed his very intemperate, disappointing and undiplomatic remarks to the president of the United States," he said further.

The US official also revealed that US ambassador to Greece Nicholas Burns had delivered a verbal protest note to Mr. Pangalos. Reppas: -- In reply, government spokesman Dimitris Reppas later in the evening said it was not the first time that the US side has made statements not based on reality, adding:

"...announcements and statements that are in direct contradiction with the officially stated policy by US President Bill Clinton."

He further added that such instances must cease, as they are incompatible with current outstanding bilateral relations.

Athens News Agency

[06] Expatriate Greek MPs on Hios

Tomorrow afternoon the foreign MPs will depart for Cyprus.

Athens News Agency

[07] Greek health official details structural changes in ESY

Speaking at an informal EU Health ministers' Council session in Austria, Ioanna Panopoulou reported the creation of an Institute of Research and Quality Control for the health services in both the public and private sectors, and the establishment of a c ommittee for the protection of the rights of patients, which began operating six months ago.

Referring to the use of pharmaceuticals, Ms Panopoulou said the Greek national organisation (EOF) had developed a production and distribution control system, achieving high quality standards.

Concerning blood deposits and safety, she drew attention to the fact that Greece was providing incentives to staff and had formulated cost benefit criteria in quality management.

Further, she said Greece had developed pioneering programmes of health care for all immigrants.

Summing up on the results of the Council session, Ms Panopoulou noted there was now better understanding of the differences of systems between member- states and that the exchange of experiences would be useful for all.

EU Commissioner Padraig Flynn said quality should play a basic role in the framework of the third Community Support Framework.

Athens News Agency

[08] Small US aid to Cyprus maintained for '99

The press release noted that despite strong efforts in Congress to cut aid to the island republic due to Cyprus' decision to buy the Russian-made S- 300s, both House and Senate subcommittees recently voted to grant the funds.

It should be noted that since 1992 the United States has been gradually decreasing foreign military aid to all countries in the region.

Aid to Turkey has been reduced to $150 million in loans from the pre-1992 $500 million in grants, while aid to Greece was reduced to 105 million dollars in loans from US 320 million dollars in loans and 30 million dollars in grants.

Athens News Agency

[09] 'Symposium of Symi' int'l event scheduled

The symposium will be held from July 26 to Aug. 1 and will focus on regional problems of the European Union, monetary unification, relations between Europe and the US, regional cooperation and globalisation of markets.

The symposium will be coordinated by Alternate Foreign Minister George Papandreou. The event is organised by the "Andreas Papandreou Foundation".

Athens News Agency

[10] French high scholl students received by Parliament President

Mr. Kaklamanis congratulated the students for their success.

Athens News Agency

[11] Greek banks post increased profits in 1997

In the previous fiscal year a decrease of 39 per cent had occurred in the total net amount.

The figures come from ICAP study, which processed the economic results publicised by the 23 Greek banks handling the largest part of deposits made by private persons, businesses and organisations.

An analysis of the economic results also reveals a considerable expansion of the 23 banks' total assets, resulting in the rate of increase almost doubling.

In 1997, the banks' assets increased 16.5 per cent as against 1996. The corresponding percentage between 1995 to 1996 was 9 per cent. An acceleration in the rate of increase of deposits also was recorded. The rate of change in loans showed a small decre ase, meaning a slowdown in credit expansion.

According to ICAP, the 23 Greek banks' total amount of deposits reached 23.6 trillion drachmas in 1997 as against 20.6 trillion drachmas in 1996 P an increase of 14.6 per cent. Over 1995-1996, the corresponding increase was 11.6 per cent. Consequently, a speedup is observed in deposits' increases in 1997.

National Bank of Greece, the longtime leader in Greece's banking market, holds first place, in terms of its share in total deposits in Greek banks last year, with 34.5 per cent. Its share remained at the same level as in the previous year, when it had 3 4.6 per cent.

Alpha Credit Bank holds first place among private sector banks (as in 1996) with a corresponding 10.6 per cent share in 1997.

A considerable increase was also recorded in the percentage increase in the National Investment Bank for Industrial Development's (ETEBA) deposits, which placed 19th in 1997, while in 1996 it was in last place (25th) with regard to deposits.

The total amount of loans provided by the 23 Greek banks in 1997 reached 11 trillion drachmas, showing an increase of 12.6 per cent. In the 1995/1996 period, the corresponding percentage of increase was 13.1 per cent.

The Agricultural Bank of Greece (ATE) holds first place in 1997 with regard to loans, with a 20.9 per cent share, followed by National Bank with 19.2 per cent of the total amount of loans. Alpha Credit Bank was first among private banks with 11.5 per ce nt in 1997, followed by Ergobank with 4.6 per cent.

Out of 23 Greek banks in 1997, 21 posted profits, one losses, the Hellenic Industrial Development Bank (ETBA), while the Agricultural Bank had neither profits nor losses.

Alpha Credit Bank was first in terms of profits (72.87 billion drachmas) covering 29.2 per cent of total profits of profit-making Greek banks.

Ergobank is in second place with a 22.1 per cent share in the total profits among profit-making banks and increased profits by 22.8 per cent over the 1996/1997 period.

Among state-run banks, National Bank raked in the highest profits, which ranked third among the 23 banks, while in the previous fiscal year its net result was nil.

Athens News Agency

[12] Greece makes progress in using EU funds, commissioner says

The state is able to absorb about 70 percent of EU funds earmarked for its projects, and the level of payments so far is acceptable. "The figures are a great success," Ms Wulf-Mathies said.

The rate of growth in Greece has accelerated to 3.5 percent with structural funds contributing around 0.9 percent to the rate of increase, she added.

The commissioner, who is responsible for regional policy, structural funds and the cohesion fund in the 15-nation bloc, was speaking at the end of a two-day visit to Athens.

During her stay, she had talks with Prime Minister Costas Simitis, National Economy and Finance Minister Yannos Papantoniou, and Alternate Foreign Minister George Papandreou.

The talks focused on the future of EU regional policy and new regulations for structural funds.

The changes involve concentrating funds in the poorer regions of member states.

According to Ms Wulf-Mathies, the rules, which are likely to divide the responsibility for implementation of projects between the Commission and member states, aim to reinforce economic and social cohesion.

Greece had much to gain from the reform, and the third Community Support Framework (CSF) being drafted.

Although the country initially had a low absorption rate for the second CSF, the Community average had been attained, the commissioner said.

Athens News Agency

[13] Greek stocks slump in wake of sell-off abroad

The Athens general share index ended 3.30 percent lower at 2,699.09 points. The FTSE/ASE 20 index lost 3.64 percent to finish at 1,642.91 points.

Trade was moderate with turnover at 58.8 billion drachmas from 53.7 billion drachmas in the previous session.

The market had been correcting normally after a surge spanning five trading days that boosted the general index by 7.10 percent and sent it sprinting through the 2,700-point barrier and then 2,800 points, only to end below 2, 700 points.

Boosting market sentiment earlier this month were moves by banks that showed they were repositioning ahead of European Union economic and monetary union, which Greece hopes to join by January 1, 2001.

Also repositioning are listed engineering contractors who wish to improve their bidding prospects in tenders for projects linked to the 2004 Olympic Games, hosted by Athens.

On a weekly basis, the Athens Stock Exchange shed 1.45 percent with average daily turnover at 60.2 billion drachmas.

Sector indices fell across the board. The heavily weighted banking sector fell 3.57 percent, Leasing dropped 1.96 percent, Insurance slumped 2.69 percent, Investment lost 2.34 percent, Industrials nosedived 2.38 percent, Construction plumeted 6.11 perce nt, Holding shed 4.27 percent, and Miscellaneous fell 1.65 percent.

The parallel market index for small cap companies finished 1.68 percent down. Of 269 stocks traded, declines led advances at 188 to 64 with 17 shares remaining unchanged.

The day's biggest percentage gainers were Vioter, Benroubi (preferred and common), Korfil, Klaoudatos, Halyps, Sportsman, Minerva, Allatini and Ippotur.

The day's biggest percentage losers finishing at or near the daily eight percent lower volatility limit were Atemke, Ergas, KI Sarandopoulos, Proodeftiki, Technodomi, Elfiko, Ermis, European Credit and Athina.

National Bank of Greece ended at 52,000 drachmas, Ergobank at 31,400, Alpha Credit Bank at 28,500, Ionian Bank at 16,255, Commercial Bank of Greece at 27,580, Delta Dairy (common) at 3,740, Intracom (common) at 13,195, Titan Cement (common) at 22,800, H ellenic Petroleum at 2,705 and Hellenic Telecommunications Organisation at 8,100 drachmas.

Athens News Agency

[14] End-week selling spree dampens upturn in Athens bourse

The index hit an all-time high of 2,825.52 points at Tuesday's close in the wake of an intra-day high of 2,828.62 points.

With US dollar returns of more than 70 percent, the Athens bourse has ranked among the top markets on the basis of returns since the beginning of the year.

Institutional investors abroad have recently shown great buying interest in selected stocks, focusing on blue chip National Bank of Greece.

The Athens share index has gained 82.42 percent since the beginning of the year. This week's turnover was 301.320 billion drachmas, showing a daily average of 60.2 billion drachmas.

Athens News Agency

[15] Alpha Credit Bank reports 6.5 pct drop in H1 profit

The bank said in a statement that the fall was due to first-quarter results, which were badly hit by interest rate levels before the drachma was devalued by 13.8 percent on March 14 to ease entry into European economic and monetary union on the same day.

Alpha Credit's assets in the first half were 3,438.4 billion drachmas, up 13 percent on the same period of last year, the statement said.

Deposits totalled 2,500 billion drachmas in the first half, marking a 25 percent rise.

Mutual funds were 1,560 billion drachmas, up 43 percent.

Loans increased by 35 percent, rising to 1,500 billion drachmas.

Also yesterday, Alpha Credit successfully boosted its share capital by 88 billion drachmas.

Athens News Agency

[16] National Bank of Greece to seek shareholders' OK for merger

Already scheduled on the same date is an assembly of Mortgage Bank's shareholders, who will also be asked to approve the merger plan that was devised by the two banks' boards and announced recently in outline.

After the merger, National Bank is expected to have assets of more than 12.5 trillion drachmas; deposits over 10 trillion drachmas, of which 3.4 trillion drachmas are in foreign exchange; and loans of 3.3 trillion drachmas.

The bank's network will total 605 branches at home and more than 100 abroad with an ATM network of over 700 units.

The parent company will gain wide access and knowhow in the housing credit market from specialist Mortgage Bank, which has already absorbed another National Bank housing loan subsidiary, National Housing Bank.

To take part in National Bank's assembly in person or via a representative, shareholders should deposit their shares by August 14 at the bank's headquarters or branches, or the state Loans and Deposits Fund.

Athens News Agency

[17] Railworkers brush off strike, management says

"Only 12.4 percent of personnel in the Hellenic Railways Organisation went on strike in Thursday's 24-hour stoppage," management said in a statement.

Taking part in the strike were transport and communications workers in state-run firms in a walkout timed to coincide with a bill the government submitted to parliament aimed at making labour relations more flexible. Urban transport was hardest hit in the stoppage.

The protest was called by the General Confederation of Greek Labour, which represents nearly a million workers in the private and public sectors.

The bill contained some changes to a draft circulated weeks ago to employers' and workers' associations following recommendations by sector groups.

Athens News Agency

[18] Alpha Credit Bank gives weekly forex loan rates

The rates, effective on Monday, are as follows:

• US dollar, 7.90 percent
• Ecu, 6.40 percent
• German mark, 5.75 percent
• Japanese yen, 2.85 percent
• Swiss franc, 4.35 percent
• Italian lira, 7.10 percent
• Pound sterling, 9.85 percent
• French franc, 5.75 percent
• Belgian franc, 5.90 percent

Athens News Agency

[19] Commission probing ag ministry bill to write-off 162.8 billion drachmas in debts

Talks are continuing with the Greek side, while it appears that the Commission may ultimately not "freeze" the law on condition, however, that implementation of measures anticipated by the law concerning some 200 instances is examined case by case.

Agriculture Commissioner Franz Fischler has questioned the Greek law on agricultural debts, because it had not been reported to the European Commission before being ratified and because measures it anticipates are contrary to clauses contained in Common Agricultural Policy.

He had requested explanations from Greece last April, which however were delayed and subsequently not considered satisfactory. Mr. Fischler decided to raise the issue with the European Commission and propose suspension of write-off.

However, discussion at the European Commission had been postponed twice through an intervention by Greek EU Commissioner Christos Papoutsis to give Greece an opportunity to provide new explanations.

Acting on recent explanations provided by the agriculture ministry, relevant EU services are having talks with Greece on all the technical guarantees for a process safeguarding the examination of each case separately, while the measures for each case wi ll be implemented following approval by the European Commission.

Athens News Agency

[20] IOBE reports heightened economic indicators, orders

The situation in industry, the survey says, remained at satisfactory levels during the period in question, although there was a small fall in the business expectation indicators, mainly due to a rise in the estimates regarding the level of stocks of fin ished goods. Total orders remained at a high level in June.

Forecasts concerning production and exports in the next 3-4 months remain positive, the survey found. It also points out that expectations regarding inflation have dropped dramatically after a rekindling as a result of the devaluation in mid-March. The percentage of businesses which forecast a rise in prices was limited to 13 per cent, the lowest rate recorded in the last nine months.

The business expectations indicator in the construction sector rose to the highest level since the surveys began in 1983. Forecasts for the level of business in the coming months were also significantly improved.

In the retail sector, business expectations appear to have marginally deteriorated for the second month in succession, with the relevant indicator dropping from 102.63 in May to 101.3 in June.

Nevertheless, the forecasts remain positive, with 49 per cent of respondents replying they see the general situation in their firms improving over the next 6 months, 45 per cent predicting no change, and only 6 per cent forecasting it will deteriorate.

Athens News Agency

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