Athens News Agency: Daily News Bulletin in English, 98-08-27

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

CONTENTS

[01] Economic issues, Kosovo dominate Simitis-Kostov talks

[02] Greek money markets hit by international turbulence

[03] Bargain hunting in small caps halts decline in ASE

[04] Parliament adopts law on shipyards register

[05] OTE-NET network expands spectacularly in first seven months

[06] Sarandis SA sees 45 pct rise in turnover, drop in profits

[07] T-bill issue on Friday

[08] Gov't: No question of Papantoniou resignation

[09] Greece calls latest Demirel statements `fossils from the past`

[10] Around Europe in an inflatable

[11] Absentee voting for Swedish citizens

[12] GSEE, Synaspismos against additional sale of OTE shares

[13] Drachma-denominated Eurobonds

[14] Gov't, sector reps focus on tourism issues

[15] Japanese delegation visits Greek processing plants

[01] Economic issues, Kosovo dominate Simitis-Kostov talks

Athens, 27/8/1998 (ANA)

Speaking to reporters before the lunch, Mr. Simitis said Greek-Bulgarian relations were at a very good level, stressing that any problems which did arise were effectively dealt with, while both countries are getting nearer to attaining their common obje ctive, namely, excellent communication. Underlining the importance of frequent contacts and exchanges of views between Greece and Bulgaria, but also among the Balkan countries in general, Mr. Simitis said the aim was "for us to attain the level of institutional contacts which exists among EU countries".

Commenting on his first round of talks with Mr. Kostov, Mr. Simitis said they had discussed the planned Burgas-Alexandroupoli oil pipeline, the nuclear plant at Kozloduy in northern Bulgaria, road connections along the Greek-Bulgarian border, cooperation in the customs sector, avoidance of double taxation and matters related to vis a requirements.

Regarding the oil pipeline, Mr. Simitis said he had agreed with Mr. Kostov that Bulgaria "must put certain questions to the Russian side about matters requiring some clarification and then we shall examine any problems which there may be". Replyi ng to a question, the premier said that as far as the Greek government was concerned, the feasibility of the pipeline project was "taken for granted".

"The Greek side believes that the project should go ahead but it also believes that it is a project involving private enterprises, not the Greek state," he said, while clarifying that the Greek state would support the companies involved but would not as sume any of the risk. Regarding the Kozloduy nuclear plant, the safety of which has repeatedly been questioned, Mr. Simitis said Mr. Kostov had supplied a series of data, on the basis of which the Greek Atomic Energy Commission would examine any pr oblems which may exist.

He stressed also that the primary concern of both sides was for the safety of the two countries' populations.

Mr. Simitis described as "satisfa-ctory" the progress in the construction of road connections along the Greek-Bulgarian border and announced that the two countries would be working closely to combat smuggling.

Mr. Simitis said a solution had been found for the avoidance of double taxation, noting that both sides had agreed any regulation of the matter should be adapted to meet developments.

On the issue of visas, Mr. Simitis said the foreign ministries of the two countries would be in contact to minimise any problems. He also announced that the possibility would be examined of creating a Free Movement Zone in a depth of 25 kilometres on ei ther side of the Greek-Bulgarian border.

Mr. Kostov said his talks with Mr. Simitis were positive and underlined the readiness of the two countries to make further efforts to develop bilateral relations through "open contacts".

Referring to the Kozloduy issue, Mr. Kostov listed the information he had given to Mr. Simitis and stressed that there had been no accident at the plant during its entire period of operation.

He acknowledged though that some "low level minor incidents" had occurred which however did not involve any leaks of radioactivity. Mr. Kostov agreed that the oil pipeline constituted a plan for private enterprises and interests, which nevertheless was of great importance for both Greece and Bulgaria.

He said the issue would be raised in Moscow today by ministers accompanying Bulgarian President Petar Stoyanov on a trip to Russia. Mr. Kostov expressed satisfaction with the progress of work for the construction of three new border crossings as well as the level of cooperation between the customs authorities of the two countries. "We would be very pleased if progress was made regarding the issue of visas, particularly for businessmen, " he added.

Mr. Kostov thanked the Greek government for its assistance in Sofia's efforts to attain what he described as Bulgaria's two most important foreign policy objectives, namely the country's accession to the European Union and NATO.

Athens News Agency

[02] Greek money markets hit by international turbulence

Athens, 27/8/1998 (ANA)

The Bank of Greece spent 1.2 billion US dollars to defend the domestic bond market and the drachma in the wake of massive sales from foreign institutional investors who preferred to liquidate their substantial gains in the Greek bond market in an effort to hedge their losses in other international markets.

The drachma's parity was significantly lower against most foreign currencies. The drachma was 1.48 percent lower against the US dollar, 1.0 percent off against the DMark and 1.07 percent lower against the Ecu.

Pressures on the drachma continued long after the day's fixing.

One month interbank rates were also pressured to climb above 14 percent for the first time in several months.

Athens News Agency

[03] Bargain hunting in small caps halts decline in ASE

Athens, 27/8/1998 (ANA)

Traders said bargain-hunting and other speculative buying, particularly in small and medium capitalisation stocks, partly reversed the prevailing negative sentiment in the market following the Commercial Bank's decision to annul a tender for the sale of a majority stake in Ionian Bank.

The general index ended 0.29 percent lower at 2,471.75 points, with turnover at 48.4 billion drachmas.

Banks remained under pressure to ease 2.60 percent reflecting limit down losses in Commercial Bank and Ionian Bank shares.

Sector indices were mixed. Insurance fell 0.02 percent, Investment rose 1.38 percent, Leasing soared 6.09 percent, Industrials were 1.16 percent up, Construction jumped 3.72 percent, Miscellaneous increased 2.66 percent and Holding rose 4.40 percent.

The parallel market index for small cap companies ended 2.20 percent higher, while the FTSE/ASE 20 index fell 0.81 percent to 1,491.37.

Broadly, advancers led decliners by 195 to 46 with another 17 issues unchanged.

Metka, Lampsa, Phaliro Medical, Boutaris, Singular, Athinea, Thrace Plastics scored the biggest percentage gains hitting the daily 8.0 percent limit up. Connection was 19 percent higher.

Ionian Hotels, Commercial Invest, Ionian Invest and Klaoudatos suffered the heaviest losses at the daily 8.0 percent limit down.

National Bank of Greece ended at 47,990 drachmas, Ergobank at 25,455, Alpha Credit Bank at 24,500, Ionian Bank at 14,902, Hellenic Telecoms at 7,780, Delta Dairy at 3,550, Intracom at 12,465, Hellenic Petroleum at 2,845 and Titan Cement at 20,420.

Athens News Agency

[04] Parliament adopts law on shipyards register

Athens, 27/8/1998 (ANA)

Undersecretary Anna Diamantopoulou said that the register would help to put into order the "chaotic" situation prevailing in small and medium-sized ship repair companies, which should enter the market to get EU financial support.

Commenting on reports that Greece's coastal shipping will witness inflows of one trillion drachmas by 2004, Ms Diamantopoulou said that the sum would cover the creation of a small and large shipyard units in Greece to service coastal shipping needs.

Athens News Agency

[05] OTE-NET network expands spectacularly in first seven months

Athens, 27/8/1998 (ANA)

Its network expanded steadily including 26 interchangers in major Greek cities with a total capacity of 10 Mbytes.

OTE-NET has successfuly expanded into the Athens Stock Exchange with several on line broking services and other partnerships with the private sector in the information technology sector.

Athens News Agency

[06] Sarandis SA sees 45 pct rise in turnover, drop in profits

Athens, 27/8/1998 (ANA)

The group's sales rose to 16.75 billion drachmas, up from 11.5 billion in 1997.

The company attributed its success to higher sales abroad and a merger plan with Trylet, a detergent firm, which added 1.5 billion drachmas to the group's turnover in the first six months of the year.

Despite a rise in sales, pre-tax profits plunged 45 percent due to a 923 million drachmas provision caused by the drachma's devaluation in mid- March.

The group's pre-tax profits totalled 571 million drachmas, down from 1.27 billion the same period last year.

Sarandis expects 1998's turnover to exceed 33 billion drachmas with pre-tax profits at 2.8 billion.

Athens News Agency

[07] T-bill issue on Friday

Athens, 27/8/1998 (ANA)

The bills will be issued and accounts will be settled on Sept. 2.

Non-competitive bids will be accepted for up to 20 per cent of the total amount issued.

Athens News Agency

[08] Gov't: No question of Papantoniou resignation

Athens, 27/8/1998 (ANA)

Mr. Reppas said "resignation was not an issue" during the minister's meeting with Prime Minister Costas Simitis on Tuesday.

The national economy minister bears no responsibility whatsoever for the developments in question and, indeed, has been behind many successes and achievements in the Greek economy, Mr. Reppas said.

He pointed to the minister's contribution to the present stability on the stock market.

Turning to the sale of Ionian Bank, Mr. Reppas said the government was not examining at present any new offer for the bank, adding that this was an issue for its parent company, Commercial Bank.

"We believe that the sale will be successful," he added, referring to the holding of a new tender for the bank.

Opposition criticism continues: On its part, main opposition New Democracy's (ND) executive committee discussed developments in the Ionian bank tender.

ND cadre Giorgos Alogoskoufis briefed the committee members on the current status of the issue, while party spokesman Aris Spiliotopoulos criticised the government, saying it was "lying".

Mr. Spiliotopoulos said that the government cannot handle major issues, referring to erroneous procedures followed in the sale of the bank.

Athens News Agency

[09] Greece calls latest Demirel statements `fossils from the past`

Athens, 27/8/1998 (ANA)

Government spokesman Dimitris Reppas made the remarks when asked to comment on statements yesterday by Turkish President Suleyman Demirel, who openly disputed Greek sovereignty of 132 islets in the Aegean.

"There are 132 rocky islets in the Aegean which are ours,"Mr. Demirel said in an interview with the Turkish daily 'Hurriyet', as reported by an ANA dispatch from Istanbul,

Mr. Demirel claimed that there were 132 "rocks or rocky islets which we call 'grey zones'Inamely, their ownership has not been determined on the basis of agreements. We say: 'they do not belong to you (Greece). On the basis of succession, they belong t o us.' "

Clerides in Athens for talks: The statements by the Turkish president came on the eve of today's high-level meeting between Prime Minister Costas Simitis and visiting Cyprus President Glafcos Clerides. Foreign Minister Theodoros Pangalos and Defence Minister Akis Tsohatzopoulos will a lso be present at the meeting.

Observers consider that the latest US initiative on the Cyprus problem, a subsequent Turkish refusal to accept a 'no-fly zone' over the island republic and the negative stance of many countries regarding the S-300 anti- aircraft missile issue have led pr ogress towards a Cyprus solution to an impasse.

Diplomatic sources noted that Mr. Simitis and Mr. Clerides will decide on political and diplomatic initiatives which will aim to demonstrate Turkey's aggresiveness, as well as to increase pressure on the Turkish government toward the resumption of inter communal talks.

Opposition: On his part, main opposition New Democracy (ND) leader Costas Karamanlis yesterday met with Mr. Clerides in Athens and was briefed on the latest developments regarding the Cyprus problem and the S-300 missile issue.

After the meeting, Mr. Karamanlis said that the government of Cyprus has the right to bolster its defences, while he added that any attempt to change the course of action without the prior satisfaction of Mr. Clerides' terms will signal defeat.

ND spokesman Aris Spiliotopoulos, referring to Mr. Demirel's comments on the Aegean, noted that Turkey once again with words and actionsIdisputes the status quo on the Aegean.

Athens News Agency

[10] Around Europe in an inflatable

Athens, 27/8/1998 (ANA)

Vladimiros Levidis, Alexis Daras and Thanasis-Camilio Nollas will attempt to recreate the legendary sea journey of mythical sailor Pytheas around Europe.

The three will sail next Friday morning from Zea marina in Piraeus.

Using sports and culture as a vehicle, the three men will visit 13 of 15 European Union member-states, as two are land-locked.

The effort is sponsored by the development ministry, among others.

Athens News Agency

[11] Absentee voting for Swedish citizens

Athens, 27/8/1998 (ANA)

Based on recent legislation and for the first time, polling stations will not just operate at the Swedish embassy and consulates in Greece but at sites where the Greek-Swedish Association counts more than 20 members.

According to information provided by Swedish deputy Nikos Papadopoulos, starting tomorrow polling stations will operate in Athens, Piraeus, Thessaloniki, Rhodes, Kos, Irakleio, Kilkis, Ioannina, Kavala and Corfu.

Athens News Agency

[12] GSEE, Synaspismos against additional sale of OTE shares

Athens, 27/8/1998 (ANA)

GSEE claimed the move was a step taken without the necessary terms and preconditions.

The labour umbrella group also noted that it would agree to the flotation of a smaller percentage of shares under the condition that proceeds be used for OTE's development and modernisation.

Expressing its strong opposition, GSEE added that the chosen method served the policy of "covering public deficits", while it called on the government to withdraw the relevant amendment.

Synaspismos: Meanwhile, criticism of the announcement to float an additional 20 per cent of OTE shares was also voiced by a Coalition of the Left and Progress (Synaspismos) spokesman, who said the government's target was not development or modernisation but an effort to pay-off "the gapping hole in public finances."

Synaspismos also called on the government to abondon the specific policy and take measures for a modern, developed and competitive telecoms utility.

Athens News Agency

[13] Drachma-denominated Eurobonds

Athens, 27/8/1998 (ANA)

The settling of accounts is set for Sept. 4, 1998, while the date of expiration is set for Sept. 4, 2001.

Athens News Agency

[14] Gov't, sector reps focus on tourism issues

Athens, 27/8/1998 (ANA)

The three parties also decided that procedures should be speeded up for the determination of standards for classification of rooms and apartments for rent.

Discussion focused on various issues including the inclusion of the sector in development programmes, training seminars for confederation members, establishment of a tourism chamber and the granting of visas to tourists from eastern European countries, an area which this year faced problems, as a visa often served as a loophole for the entry of illegal immigrants.

Speaking on this year's tourist season, confederation president Stelios Polykratis said that according to statistics about 56 per cent of domestic tourists preferred rented rooms and apartments bearing EOT's special sign, while 36 per cent opted for hot els.

In a separate development, the ministry of development in cooperation with EOT are organising a European congress on the role of quality in upgrading tourist servises and competitiveness of tourist businesses.

The meeting, to take place in Vouliagmeni on Sep. 21 and 22, will provide a forum for the exchange of expertise between Greek and European experts in the sector.

The ministry has declared 1998 "Year of Quality" in an effort to support the country's tourist businesses, promote competitiveness and boost quality.

Athens News Agency

[15] Japanese delegation visits Greek processing plants

Athens, 27/8/1998 (ANA)

The recent visit followed a visit by the Japanese Federation of Economic Organisations (KEINDAREN) in May 1998, which had participated in the 1st Greek-Japanese Forum organised by the government's "Hermes Plan", a multi- faceted campaign for promotion of

Greek-Japanese relations.

The initiative was established by the national economy ministry with the intention of upgrading economic cooperation between Greece and Japan.

The Japanese representatives met and exchanged views with their Greek counterparts in an attempt to examine the prospects for collaboration with Greek tomato processors.

Greece, the second-largest tomato processor in Europe after Italy and the third-largest exporter of tomato products worldwide after Italy and Turkey, could possibly satisfy a significant part of the Japanese market's demands for tomato paste.

According to the Japanese delegation, although Greece faces strong price- competition from Turkey, the quality of Greek products is high, and there is a strong possibility of increasing imports from Greece.

Athens News Agency

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