Athens News Agency: Daily News Bulletin in English, 98-08-11

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

CONTENTS

[01] Gov't to issue Balladur-type bonds to aid privatisations

[02] Measures to deal with forest fire damages announced

[03] Noted architect dies

[04] Private Jospin-Simitis meeting

[05] Calvin Klein event at Herod Atticus

[06] Economic News

[07] Weekend traffic carnage reaches 26

[08] Bomb blast at horse track

[01] Gov't to issue Balladur-type bonds to aid privatisations

Athens, 11/8/1998 (ANA)

Issue of the bonds is allowed for the first time under an amendment the finance ministry tabled in Parliament yesterday.

Holders of the bonds will be able to exchange them on expiry for shares in state firms and banks slated for privatisation from Jan. 1, 1999, the ministry said in a statement. The bonds will be issued both in drachmas and in foreign currency.

According to ministry sources, the government is planning to start by issuing three- and five-year bonds in drachmas, Ecu and German marks.

Interest on the bonds, which are negotiable on domestic and foreign markets, will be set shortly before issue. Returns will be tax-free if the original investor keeps the paper until expiry. Buyers will then opt for encashment or equity conversion.

Athens News Agency

[02] Measures to deal with forest fire damages announced

Athens, 11/8/1998 (ANA)

The measures, worth about 20 billion drachmas, include a payment of 200,000 drachmas to each residence's owner and compensation of up to two million drachmas for damages to household goods as well as 15-year, interest-free loans for home purchasing.

The meeting was chaired by Interior Minister Alekos Papadopoulos and attended by Environment and Town Planning Minister Costas Laliotis, Finance Undersecretary Nikos Christodoulakis, National Economy Undersecretary Christos Pachtas, as well as Agricultu re Minister Stephanos Tzoumakas.

Mr. Papadopoulos said that owners of unregistered or illegally built residences will not receive compensation or loans, while Mr. Laliotis said the state will not allow any construction activity on burned land.

Opposition reaction: In response, the main opposition New Democracy (ND) party accused the government of "empty words, soon to be forgottenIsince it (government) does not have any strategic planning for the restoration of the ecosystem."

The Communist Party of Greece (KKE) cited "measures to deceive fire victims" and stated that the government continues with its "inflammatory policy."

The Political Spring (Pol.An) party called the prime minister and his government "inefficient".

Fire watch: On the fire front, most blazes throughout the country, from the Peloponnese to northern Greece, were reported as "under control".

A fire broke out earlier yesterday morning in an accessible location at Sesi, Grammatiko, and was being tackled by land forces assisted by two Canadair firefighting planes, fire brigade officials said.

Police, firefighters and local residents also launched a manhunt for a man believed to have set fire to a woodland in the area.

The fire broke out in Sesi at four different locations almost simultaneously, and firefighters had contained one of the fronts. The pilot of a Canadair firefighting plane battling the blaze also spotted a "suspicious person" as he was carrying out a low flight to drop flame retardant fluid.

The pilot immediately radioed a control tower and a manhunt was mounted by land forces for the suspect, who was driving a red farm vehicle.

The vehicle, found abandoned later by firefighters, had been stolen two days ago from the Nea Makri region. Police were investigating fingerprints found in the vehicle.

In other fronts, a blaze at Karitena, Arcadia, which broke out Sunday afternoon was still raging, as was another fire in northern Corfu. Fires at Dervenaki in Aegio, Aghios Georgios and Aghios Syllas in Messolongi, and Katara in Kalambaka had been conta ined.

In terms of foreign assistance, Germany yesterday sent four helicopters and 35 crewmembers to assist in combatting forest fires. The CH 53 helicopters, modified to carry five-tonne water loads, were due to take up action yesterday.

France and Italy last week responded to Athens' request and sent three and two fire-fighting aircraft, respectively.

Two Russian Iluyshins, each capable of carrying 50 tonnes of water, have also arrived in Athens.

A partial curfew imposed by the prefecture of Attica continued to apply last night.

Romeos: On his part, Public Order Minister Giorgos Romeos said yesterday that the arsonists behind the latest spate of forest fires around Greece were individuals that knew "where and when" to act.

The minister's statements were published in the Athens daily "TA NEA".

In a related development, a survey conducted by the same newspaper claimed that 82 per cent of individuals questioned supported the eradication of illegal constructions from forest areas, while 99 per cent supported stricter penalties for arsonists and those who benefit from their actions.

Fire Brigade: At a press conference yesterday, representatives of the Fire Brigade Association of Attica said the main causes for the recent fires were, among others, absence of a national land register, obsolete airborne fire-fighting equipment as well as a lack of fu nds already approved but not yet allocated for the fire brigade's requirements.

Arrests: A Frenchman arrested on Friday in the northwestern prefecture of Thesprotia on suspicion of arson was yesterday remanded into custody by a public prosecutor and an investigating magistrate assigned to the case.

Alain de Fremont, 49, was arrested after an eye-witness reported seeing him start a fire in the forested area of Zavia, near the seaside resort of Syvota.

The fire was quickly extinguished by the Igoumenitsa Fire Brigade and local residents.

The suspect will be taken to Corfu prison tomorrow.

De Fremont arrived in Greece on July 28, staying on Corfu until Aug. 4, when he travelled to Igoumenitsa with a rented car.

Police are retracing his movements since he arrived in the country, and in view of the fact that fires caused by arson broke out in both areas during the same period of time.

During questioning in Igoumenitsa, he was reportedly unable to explain why he had hidden a cigarette lighter in the spare tyre of his car. (Continued on page 3)

(Continued from page 2) De Fremont was allegedly first spotted by a shepherd, who gave the police details of his car which had been rented from Perdika, Thesprotia.

Speaking to reporters, de Fremont claimed to be a nature lover. He said the fire started by accident when he tried to burn some trash.

At the same time, a Thessaloniki court postponed the hearing for Antonis Stamatakis, who was arrested for alleged arson near the northern Greek city.

Finally, Aristotelian University forestry department rector Dimitris Kotoulas yesterday requested from the prime minister the creation of a national experts' committee to focus on measures against forest fires.

Prof. Kotoulas noted that his department is qualified to advise on forestry and environmental issues, and is ready to offer any assistance in averting future disasters.

Athens News Agency

[03] Noted architect dies

Athens, 11/8/1998 (ANA)

Alekos Papanikolaou, a graduate of the Athens Polytechnic, received the Europa Nostra Award for his work on the Acropolis.

Culture Minister Evangelos Venizelos expessed his sorrow over Papanikolaou's death.

Athens News Agency

[04] Private Jospin-Simitis meeting

Athens, 11/8/1998 (ANA)

Mr. Jospin, who arrived in Greece on July 31, is holidaying on the small Cyclades island of Antiparos.

According to reports, a helicopter will fly to Antiparos to bring the Jospins to Siphnos.

Sources said there was no agenda for the talks, which would last most of the day, while Mr. Jospin was due to return to Antiparos in the evening by helicopter. The same sources said Mr. Simitis and Mr. Jospin would have "political consultations" on Aug.

31 in Athens, where the two prime ministers will take part in a one-day event, entitled "forces of the left in front of the challenges of the year 2000".

Another foreign leader sceduled to privately visit Greece sometime around mid-August is Austrian Chancellor Viktor Klima.

Athens News Agency

[05] Calvin Klein event at Herod Atticus

Athens, 11/8/1998 (ANA)

The culture ministry overruled a Central Archaeological Board (KAS) decision, ruling that the site will not be adversely affected by the planned fashion exhibition in the autumn.

Revenues from the show will go toward the construction of the new Acropolis museum.

Athens News Agency

[06] Economic News

Athens, 11/8/1998 (ANA)

Imposition of the tax in 1995 led to decline in repo deals, which involve the repurchase and resale of state debt paper.

"The measure is expected to revive repo transactions," the ministry said in a statement.

Titan Cement, Holderbank plan to buy out FYROM cement firm: Titan Cement Company yesterday informed the Athens Stock Exchange that press reports were true claiming it planned to forge a strategic alliance in order to buy out a cement company in the Former Yugoslav Republic of Macedonia (FYROM).

Titan, a blue chip on the bourse and the only wholly Greek-owned cement maker, said it was forging a strategic alliance with Holderbank of Switzerland to acquire A.D. Cementamica USJE in FYROM.

The buy-out would make the direct investment one of Greece's largest in the neighbouring country, a landmark in the gradual establishment of closer economic and commercial ties between the two states.

A.D. Cementamica USJE has sales of 650,000 tonnes of cement annually and capacity of one million tonnes.

EFG Eurobank buys fresh stake in Ergobank: EFG Eurobank, a member of Latsis Group, yesterday acquired a roughly 7.0 percent stake in Ergobank through the Athens Stock Exchange, buying 1,788,566 shares from foreign institutional investors.

EFG Eurobank now controls around 20 percent of listed Ergobank's share capital and has become its biggest single shareholder after purchasing a 12 percent stake from key shareholder Lazaros Efremoglou a few weeks ago. The share purchases were made for EFG Eurobank by its parent company, Luxembourg-based Consolidated Eurofinance Holdings.

Announcing the plan in a statement, the EFG Bank Group expressed its confidence in Ergobank's board and the bank's prospects.

Analysts said the statement signalled that Eurobank would not attempt to change Ergobank's management.

The two banks are expected to bid jointly in a tender through the bourse to buy state Ionian Bank on August 24.

Greek stocks finish lower, shrug off 7.0 pct sale of Ergobank: Greek equities ended the first trading session of the week lower on the Athens Stock Exchange yesterday in the wake of a decline in international markets.

Dealers said the market ignored news of the sale of 1,788,000 shares in blue-chip Ergobank for 58.5 billion drachmas, representing 7.0 percent of the target bank's share capital.

Buying the stake was EFG Eurobank, which is not listed on the bourse. It bought a 12 percent stake in Ergobank early in the summer.

The Athens general index ended 0.81 percent lower at 2,694.57 points. Trade was scant with turnover at 85.6 billion drachmas, fuelled mostly by the block trade in Ergobank.

Sector indices were mixed. Banks fell 1.10 percent, Leasing eased 0.78 percent, Insurance rose 0.07 percent, Investment was 0.83 percent up, Industrials fell 0.49 percent, Construction was 1.10 percent off, Holding increased 1.54 percent and Miscellaneo us eased 0.62 percent.

The parallel market index for small cap companies fell 0.08 percent, and the FTSE/ASE 20 index ended 1.08 percent lower at 1,638.59 points.

Decliners led advancers by 135 to 96 with another 26 issues unchanged.

Boutaris, Vernikos Yachts, Phaliro Medical, Imperio, Hadzioannou, Klaoudatos, Parnassos Enterprises, Elfico and Atemke scored the biggest percentage gains hitting the daily 8.0 percent limit up.

Dane, Eskimo, Thessaliki, Bank of Central Greece, Bitros, Remek and Allatini suffered the heaviest losses.

National Bank of Greece ended at 51,800 drachmas, Ergobank at 31,395, Alpha Credit Bank at 27,500, Ionian Bank at 17,240, Delta Dairy at 3,800, Titan Cement at 22,800, Intracom at 12,995, Hellenic Petroleum at 2,760 and Hellenic Telecommunications Orga nisation at 8,050.

Aspis Bank holds successful IPO to enter bourse: An initial public offering (IPO) held by private Aspis Bank to enter the main market of the Athens Stock Exchange was 337 times oversubscribed, the bank said in a statement yesterday. The four-day IPO that finished on Friday was 436 times oversubscribed by the public and 105 times by institutional investors, the statement said.

Aspis Bank raised the 1.76 billion drachmas it was seeking to enter the bourse.

Bank of Piraeus posts H1 Dr 11 bln profit: Bank of Piraeus Group yesterday reported consolidated profits of 11 billion drachmas in the first six months of 1998 compared to 4.2 billion in the same period last year.

The parent bank's first half profits totalled 7.4 billion drachmas, up from 3.4 billion in 1997.

Deposits almost tripled to 365.2 billion drachmas, and loans were 214 billion up from 124.7 billion last year.

The bank's consolidated assets totalled 1.019 trillion drachmas, a 300 percent increase from the same period in 1997.

Gov't talks with supermarket owners: The development ministry yesterday announced a second round of talks with foodstuff manufacturers and supermarket outlets, set to take place in September.

The first round has already produced results, following an earlier agreement, which reduced prices for a series of products between 5 and 10 per cent.

Some 250 products affected by a first "gentlemen's agreement" include pasta, rice and legumes, while supermarket owners announced that prices will be affected within the next two weeks.

Athens News Agency

[07] Weekend traffic carnage reaches 26

Athens, 11/8/1998 (ANA)

Athens News Agency

[08] Bomb blast at horse track

Athens, 11/8/1998 (ANA)

The powerful blast at the race track also shattered windows and damaged three vehicles parked outside the building. The facility was closed at the time.

There was no advance warning or claim of responsibility for the attack.

Athens News Agency

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