Athens News Agency: Daily News Bulletin in English, 99-01-02

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

CONTENTS

[01] Greece expects to join EMY in 2001, gets euro/drachm parity

[02] Patience and wisdom will bring about positive results, president notes in New Year's message

[03] Greece to auction fixed income bonds

[04] Santer says Greece has made progress toward entry to euro-zone

[05] Tsohatzopoulos says S-300 decision not an indication of backtracking

[06] Greece scraps tax on interest from state bonds for foreign investors

[07] Boat carrying illegal immigrants sinks off Nyssyros, ten missing

[08] First babies born in New Year to receive present of car baby seats

[09] Fog causes car pile ups and flight delays in northern Greece

[10] Two drug dependent brothers agree to suicide pact

[11] Two masked men rob motorist of 40 mln drachmas

[01] Greece expects to join EMY in 2001, gets euro/drachm parity

Mr. Papantoniou was addressing an EU finance ministers meeting in Brussels to launch the euro, Europe's single currency.

He said that the government's economic policy indicated that all convergence criteria could be achieved by the end of 1999.

"Participation in the euro-zone will be the result of a long and hard effort by the Greek public to create new conditions for growth, prosperity and social justice," Mr. Papantoniou said.

"Adoption of the euro has opened a new page in the history of Europe. The financial benefits will be major, and the EU's presence will be more powerful on the the international political and economic scene,"he added.

EU sets euro/drachma rate (PK): European Union finance ministers on Thursday set central rates for the Danish crown and the Greek drachma against the euro within the EU's Exchange Rate Mechanism.

The drachma's locking rate was slightly lower against the euro compared with its rate against the Ecu.

EU ministers set locking rates for the 11 currencies of economic and monetary union against the euro and a standard fluctuation band of plus or minus 15 percent around the drachma from its central rate of 353.109 drachmas per euro.

That means that monetary authorities will have to intervene when the drachma's rate against the euro reaches a limit up of 406.075 drachmas and a limit down of 300.143 drachmas.

News of the euro/drachma rate helped domestic money markets rebound following an early light sell-off.

The Bank of Greece intervened in the market, buying 150 million DMarks to contain the drachma's fluctuation.

The drachma ended at 168.45 against the DMark, at 330.010 against the Ecu and at 282.570 against the US dollar at Thursday's fixing.

The bond market ended 1998 with significant gains. The yield spread between the 10-year Greek state bond and the German bond fell to 3.02 percent, down from 4.80 percent in early October.

In the domestic money market, the overnight rate fell to 11.30 percent. Greek equities end last trading session with gains: Greek equities ended the last trading session of 1998 with substantial gains reflecting the market's optimism over new year's prospects and euphoria following news that the government would abolish tax on bond interest for non-residents.

The general index ended 1.05 percent higher to 2,737.55 points, for a spectacular 85.02 percent gain in 1998. Turnover was 70.4 billion drachmas.

Annual turnover totalled 14 trillion drachmas.

Thursday's volume was 15,756,000 shares.

Sector indices scored gains. Banks rose 1.14 percent, Leasing fell 0.07 percent, Insurance ended 1.40 percent up, Investment increased 0.96 percent, Construction rose 0.43 percent, Industrials ended 0.82 percent higher, Miscellaneous increased 1.08 perc ent and Holding jumped 2.83 percent.

The parallel market index for small cap companies ended 0.78 percent up, while the FTSE/ASE 20 index rose 1.31 percent to 1,724.24.

Broadly, advancers led decliners by 155 to 109 with another 15 issues unchanged.

Mytilineos, Development Invest, Viosol and Aspis were the most heavily traded stocks of the day.

Viohalco, Metka, Minerva, Britannia, General Warehouses, Macedonian Plastics, Ermis, Alcar-Aemet and Dimitriadis scored the biggest percentage gains hitting the day's 8.0 percent limit up.

Constantinidis, Viosol, Karelias, Daring, Tegopoulos, Aegek, Nematemboriki and Attica Enterprises suffered the heaviest losses.

National Bank of Greece ended at 63,000 drachmas, Ergobank at 32,400, Alpha Credit Bank at 29,220, Ionian Bank at 14,845, Hellenic Telecoms at 7,450, Delta Dairy at 3,995, Intracom at 12,750, Titan Cement at 21,500, Hellenic Petroleum at 2,300 and Minoa n Lines at 6,255.

Athens News Agency

[02] Patience and wisdom will bring about positive results, president notes in New Year's message

Mr. Stephanopoulos added that "if we prioritise some of the changes (taking place globally) we may come to the conclusion that our country is in need of new administrative structures.

"It needs modernisation of the ways to economic and business action and that it must be looking for a better educational system, since knowledge and education comprise the basic preconditions for the economic development of the country and the cultural development of our people." Simitis: 1999 will be the year that Greece realises the goals it has set, Prime Minister Costas Simitis said in his message.

"The sacrifices and efforts of the previous year are taking root and the first results of the economy are tangible in the thousands of large and small projects being undertaken through Greece, in the increase in the real incomes of the Greek people and in the role Greece is playing in the Balkans and the European Union," Mr. Simitis said.

He said 1998 had been a good year, noting that the international financial crisis had not harmed the Greek economy.

"What I can guarantee you is that the issues which concern us, large or small... are our priority...The approaching year will be a year of even greater results from our efforts so far," Mr. Simitis said.

1999 is the year which will see the start of planning for a new four-year period, he said.

"This will be a four-year period which will allow us to take an even greater step, to increase prosperity, to proceed to a more just distribution of the wealth produced to more citizens, particularly those in need. We can do this and we will."

Karamanlis: In his message, main opposition New Democracy party leader Costas Karamanlis said that 1999 would be better than the previous year.

"We must above all bring hope back to our country, something which has been lacking over recent years," he said.

He noted that what "we lived over the past few years does not befit the Greek people, nor do they deserve it, such as unemployment, heavy taxation, social harshness, decay of the state mechanisms, crime and inadequate health and education services."

Mr. Karamanlis also said that "as a people and a nation we have all the strength necessary to break the unending circle of decay."

KKE: The Communist Party of Greece (KKE) message stated that 1999 should be a year of massive political struggle against the EMU and generally against the EU and imperialist domination.

The announcement noted that 1999 came to our lives bringing valuable lessons of the past year and proved that NATO's decision to act where ever it judges fit, by-passing even the typical pretexts, increases the dangers, which hang over the heads of peop les.

The message went on to note that the developments on the S-300 missiles proved the promotion of the "dejure" division of Cyprus, while the Aegean issue seems to have taken the same direction.

It added that the conditions in the Persian Gulf and former Yugoslavia makes more felt the habit of imperialism to overcome the crisis with war and to solve with the blood of the people the differences between different sides.

KKE leader Aleka Papariga in her message said that 1998 was a good year for the party and added that she believes that it is not unrealistic to believe on the ability of all the peoples to struggle for a different system of international relations, so a s to push aside completely today's system, which with the euro, yen and the dollar is organising the way to rob the peoples.

Synaspismos: Coalition of the Left and Progress (Synaspismos) in its press release noted that "1998 ended with a negative balance for the majority of the citizens and especially for the weak.

"The decline in inflation and deficits was based on the troubling increase of social injustices and especially unemployment. Greece remains at the tail end on the course to European unification. The unjust policy, which is followed in the name of EMU di vides onesidedly the cost and causes a heavy social price."

Athens News Agency

[03] Greece to auction fixed income bonds

The issue and settlement date is January 11, and no commission will be given to banks in the competitive price auction through primary dealers.

Non-competitive bids will also be accepted by primary and non-primary dealers for up to 20 percent of the securities being auctioned.

Permanent residents abroad who buy into the paper will not be required to pay tax on interest in line with a new law effective on January 1, 1999.

Athens News Agency

[04] Santer says Greece has made progress toward entry to euro-zone

During his press conference, Mr. Santer said that the Greek government's 2001 target date for entry to the euro-zone can be achieved, but the government should continue to implement the convergence progamme with the same seriousness and insistence it ha s to date.

Mr. Santer also said that in two years "we will celebrate the accession of Greece to the euro-zone", during his meeting with Greek National Economy Minister Yiannos Papantoniou.

Athens News Agency

[05] Tsohatzopoulos says S-300 decision not an indication of backtracking

He called threats from neighbouring Turkey over the decision groun-dless and noted that "Turkey is facing significant domestic problems ...its slide into threats simply confirms its weakness". Kranidiotis terms non- deployment of S-300 on Cyprus a 'tactical move': Deputy Foreign Minister Yiannos Kranidiotis has assured that the decision not to deploy Russian S- 300 anti-aircraft missiles on the island does not undermine a defence agreement between Cyprus and Greece. In an interview with the Cyprus news age ncy CNA, Mr. Kranidiotis stressed that Greece "secures and guarantees Cyprus' defence and promotes the aspirations and interests of Greek Cypriots".

He remarked that "spectacular steps have been made in recent years in the field of defence" and the Cyprus problem had been promoted in diplomatic fora in Europe. Stressing that the defence agreement between Greece and Cyprus goes beyond the S-300, Mr. Kranidiotis reaffirmed Greece's commitment that "any Turkish offensive move against Cyprus is cause for war for Greece".

Commenting on the prospects of deploying the S-300 surface-to-air missiles on the Greek island of Crete, Mr. Kranidiotis said it is in the framework of the joint defence pact agreed between Cyprus and Greece (in 1993). He stressed that the qualitative u pgrading of Cyprus' defence capability had been decided.

The Greek official described the decision not to deploy the missiles on the island as a "tactical move", adding that the decisive factor was to secure Cyprus' vested interests. Mr. Kranidiotis repeated that Greece stands for a peaceful solution t o the Cyprus problem and pointed out that militarisation favours Turkey which aims at creating tension and disorientation from the real nature of the problem. "The first aim should be the implementation of the two recent UN Security Council re solutions on Cyprus and the use of their positive elements," Mr. Kranidiotis said. "The second aim should be the withdrawal of US-made arms on the island in violation of US legislation," he added, noting that they are in the possession of the Tur kish occupation forces and stressed that Greece would press towards this goal.

Mr. Kranidiotis underlined as a third aim "the promotion of Cyprus' accession course to the European Union," pointing out that "it is a catalyst in developments in the Cyprus problem".

Concluding the Greek Deputy Foreign Minister reaffirmed his country's determination to continue working hard for a solution of the Cyprus problem and stressed that "the Cyprus problem calls for greater national unity". World called on to end Cyprus tragedy in 1999: CHICAGO (ANA) - World Council of Hellenes Abroad (SAE) president Andrew Athens on Thursday said that "now, that Cyprus took this extraordinary initiative for peace,Greeks all over the world call on the United States and especially their president, the Uni ted Nations and the European Union to take specific and effective measures to end in 1999 the 24-year Cypuus tragedy."

Athens News Agency

[06] Greece scraps tax on interest from state bonds for foreign investors

The measure, which the finance ministry submitted to parliament on Thursday, is effective from January 1. It also scraps tax on bonds issued before 1999, but payable in that year under the old regime.

The tax payable on bond interest remains the same for domestic investors, also remaining unchanged on treasury bills for all categories of buyers.

Until now, Greece was the only country in the 15-nation EU that taxed foreign investors on bond interest.

Investors generally were able to retrieve the tax they paid under laws to scotch double taxation, but the process upped their operational costs, deterring purchases.

Athens News Agency

[07] Boat carrying illegal immigrants sinks off Nyssyros, ten missing

Twenty-two people have been rescued by nearby boats, while the bodies of two more have been recovered.

Coast guard officials said navy and patrol boats were sent to the vicinity and nearby vessels alerted after an SOS call was received at dawn Thursday from a boat that had taken on water and was sinking.

Three of the four boat-runners -- two Greeks and a Yugoslavian -- were among those rescued while their companion, another Greek, was missing.

Coast guard and navy boats were scouring the area, seven miles west of Nissyros, for other immigrants, as no one was able to give an exact number of immigrants on the boat.

The three boat-runners and 12 immigrants were found in an inflatable life- raft, while the rest were picked up from the sea.

The sailboat left the Turkish coast late Wednesday night.

Ten people were missing after the Italian-flagged yacht "Mustang" sank off Nissyros.

The crew of the yacht - two Greeks identified as Iosif Tsagarakis, and Costas Logothetis, and an unidentified Yugoslav - were among those saved.

Twenty-four people in total have been rescued.

Port authorities said the three crew had rented the boat from a Greek identified only as Yiannis from Piraeus.

Authorities suspect he may have remained on the Turkish coast.

Dozens of boats and a number of Air Force helicopters were combing a seven- mile region west of the island in the hope of finding survivors.

In Kos, meanwhile, port authorities arrested 19 Iraqi Kurd illegal immigrants - six men, five women and eight children.

All will be charged with illegal entry.

Athens News Agency

[08] First babies born in New Year to receive present of car baby seats

By comparison, figures for Finland, the Netherlands, Sweden and the United Kingdom range between 6.8 and 8.6 deaths per 100,000 inhabitants.

Athens News Agency

[09] Fog causes car pile ups and flight delays in northern Greece

Fog and limited visibility caused a 15-car pile up on the Thessaloniki- Moudanion national road and icy roads were cited as the cause of a 10-car pile up on the Thessaloniki-Peraias road.

Fog also caused delays in flights at Thessaloniki's Macedonia Airport. Fog shut down the airport on Wednesday for the second time this week.

According to the civil aviation authority, fog caused the airport to close for a total of 19 days in January, February and December of 1998, resulting in the cancellation of 40 flights and delays in another 46.

In 1995, fog closed down the airport for 11 days and in 1994 for 12. Greece's second biggest airport is plagued by problems due to fog in winter every year.

It is hoped that a modern electronic system which enables "blind" landings will solve the problem.

The ILS 2 system, which is due to be installed in 1999, will safely guide aircraft from the ground in conditions of zero visibility to within 30 m etres above the runway. The pilot will then be able to safely land the aircraft.

The present ILS system is an older version which is ineffective in conditions of thick fog.

Athens News Agency

[10] Two drug dependent brothers agree to suicide pact

The bodies of the Papanikolaou brothers, Theofanis, 36, and Diamantis, 31, were found in their apartment in the district of Kordelio, Thessaloniki on Wednesday night.

Police said that Theofanis had shot his brother with an old Russian pistol and, five hours later, turned the gun on himself.

A note found in the apartment and addressed to their father, Nikos, said that they had decided to end their lives so as not to cause him any further pain.

Nikos Papanikolaou lost his wife and the men's mother to cancer about four years ago and is reported to have suffered psychological problems since then.

Reports said that the brothers' suicide pact was known to some of their friends, who said that it stemmed from their inability to shake their dependencies.

The two brothers' funerals was held yesterday.

Athens News Agency

[11] Two masked men rob motorist of 40 mln drachmas

The highway robbery occured at around 9.30 a.m.

The two men on the motorbike approached the car, whose driver has not been identified, while it was stopped at the corner of Edison St on the Alexander the Great avenue, in the area of Stratigiou.

Shooting in the air twice with a hunting rifle, they then grabbed a bag containing the money from the car and disappeared.

Police said the victim was a local businessman and have launched a manhunt to find the two men.

It is the second highway robbery in a week.

On Monday, a masked man forced another driver on the Thessaloniki- Kavala national road to stop and hand over all the money on him.

Athens News Agency

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