Athens News Agency: Daily News Bulletin in English, 99-01-08

Athens News Agency: Daily News Bulletin in English Directory - Previous Article - Next Article

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

CONTENTS

[01] Stocks sprint through 3,000 pts,post new high

[02] Attica Enterprises calls off Cronus airlines buyout

[03] Returns on domestic equity mutual funds jump in 1998

[04] Gov't to auction five-year fixed income bond on Tuesday

[05] Northern exporters open Internet page

[06] Insurers Aspis Pronia, Iniohos get shareholders' OK for merger

[07] V. Papandreou says EOT jobs will be safeguarded

[08] Fishermen threaten to blockade ports over EU directive

[09] Athens Foreign Exchange

[10] Greece dismisses latest Turkish quips on Athens FIR as baseless

[11] Euro-socialists prepare 'manifesto' for June Euro-elections

[12] Reppas: Both Athens,Nicosia agree on Crete for S-300s' deployment

[13] Gov't: Athens will not accept fait accompli on FYROM name issue

[14] G. Papandreou on briefing EU citizens on Amsterdam Treaty

[15] Gov't appeals to teachers for smooth reopening of schools

[16] PASOK delegation in Israel

[17] OA flight schedule curtailed as pilots enforce 'work-to-rule' action

[01] Stocks sprint through 3,000 pts,post new high

Athens 08/01/1999 (ANA)

The general index ended 3.22 percent higher to break the 3,000-point barrier for the first time in its history, ending at 3,000.75 points, off the day's high of 3058.69 points at the opening.

Generating euphoria in the current phase is a spectacular drop in domestic bond yields towards European Union convergence criteria.

In addition, consumer price inflation is seen falling below 4.0 percent in December with 2.0 percent forecast for the summer.

A new record close on Wall Street also fuelled sentiment.

Trade was heavy with turnover at 106.3 billion drachmas on 17,741,000 shares traded.

Hellenic Telecommunications Organisation, Ergo Invest, Mytilineos and Eskimo were the most heavily traded stocks.

Sector indices scored gains across the board.

Banks rose 2.68 percent, Leasing soared 7.45 percent, Insurance ended 4.69 percent up, Investment increased 2.72 percent, Construction was 2.19 percent higher, Industrials rose 2.90 percent, Miscellaneous ended 2.12 percent up and Holding rose 0.66 percent.

The parallel market index for small cap companies ended 0.09 percent up. The FTSE/ASE 20 index rose 3.56 percent to 1,908.91.

Broadly, advancers led decliners by 216 to 46 with another 16 issues unchanged.

Karamolegos bakery soared 99 percent on its first day of trading on the parallel market.

Hellenic Telecommunications Organisation, Panafon, Ergo Invest, Katselis, Terna, Dimitriadis, Britannia, Kalpinis, Rocas, Levenderis, Zamba, Kyriakoulis Yachts and Kyriadides scored the biggest percentage gains, hitting the day's 8.0 percent limit up.

Halyps Cement, Lanacam, Sarandopoulos, Sigalas, Yalco, Nimatemboriki, Desmos and Ergas suffered the heaviest losses.

National Bank of Greece ended at 70,200 drachmas, Ergobank at 36,000, Alpha Credit Bank at 32,550, Ionian Bank at 16,200, Hellenic Telecommunications Organisation at 8,542, Delta Dairy at 4,230, Intracom at 15,100, Titan Cement at 23,900, Hellenic Petro leum at 2,370 and Minoan Lines at 6,700 drachmas.

Bond prices stay high despite profit-taking, drachma still rampant: Sentiment again was healthy in the secondary bond market yesterday with prices mostly remaining high despite a bout of profit-taking, and the central bank intervened to curb the drachma's continuing rise.

In the money market short-term interbank rates edged up after the central bank intervened to drain liquidity, taking the overnight rate up to 11.60 percent. The drachma rose on demand and the Bank of Greece bought around 50 million euros at its daily fix to curb the national currency's ascent.

The euro was fixed at 324.250 drachmas, the dollar at 277.80 drachmas and the mark at 165.788 drachmas.

Athens News Agency

[02] Attica Enterprises calls off Cronus airlines buyout

Athens 08/01/1999 (ANA)

Attica Enterprises said in a statement that an audit of Cronus Airlines had revealed unforeseen and non-negotiable financial liabilities that could jeopardise the company's future.

The statement added that such eventualities were not envisaged in the takeover deal originally agreed.

Athens News Agency

[03] Returns on domestic equity mutual funds jump in 1998

Athens 08/01/1999 (ANA)

Last year, 33 equity mutual funds were launched in the domestic market with two of them posting annual returns of more than 120 percent.

The Alpha Trust New Companies mutual fund recorded the highest returns at 129.36 percent, followed by Alpha Trust Development at 124.92 percent, and Midland Greek Development at 119.26 percent annually, the statement said.

Total assets of domestic mutual funds totalled 473.4 billion drachmas on December 31 1998, up 106.26 percent from January 1, 1998.

Athens News Agency

[04] Gov't to auction five-year fixed income bond on Tuesday

Athens 08/01/1999 (ANA)

The auction for the bonds, which are to carry a fixed 6.60 percent annual rate, is open to primary dealers, the ministry said.

The bonds are in electronic form, and dealers will receive no commission.

Athens News Agency

[05] Northern exporters open Internet page

Athens 08/01/1999 (ANA)

The association's address is http://www.seve.gr, and the page displays services and corporate data on exporters, which is given in English.

Also outlined are European Union programmes to aid the sector, trade missions abroad, and links with the trade group's associates in 70 countries.

Available in the near future will be an on-line service for demand in products and services.

Athens News Agency

[06] Insurers Aspis Pronia, Iniohos get shareholders' OK for merger

Athens 08/01/1999 (ANA)

The new firm to be created from the merger will be called Aspis Pronia Damage Insurers.

In 1998 both companies posted revenue of more than 4.5 billion drachmas.

Athens News Agency

[07] V. Papandreou says EOT jobs will be safeguarded

Athens 08/01/1999 (ANA)

Ms Papandreou received Mr. Constantopoulos at EOT's offices.

Following the meeting, Mr. Constantopoulos said that in light of the 2004 Olympic Games and the "Cultural Olympiad" he supports the need for careful planning of the country's tourism policies.

The minister also informed Mr. Constantopoulos that she is waiting on empolyees for their proposals regarding EOT's re-organisation so as to proceed with necessary presidential decrees.

She added that Greek tourism is increasing, while the main target is to upgrade Greece's tourism product.

In an unrelated development, main opposition New Democracy deputy Dora Bakoyianni visited EOT and met with the agency's secretary general Mihalis Kyriakidis.

Athens News Agency

[08] Fishermen threaten to blockade ports over EU directive

Athens 08/01/1999 (ANA)

Fishing vessels and trawlers docked off the Alexandroupoli port, while fishermen from the Nea Mihanionia region east of Thessaloniki are threatening to block access to the country's second largest port.

Fishermen are protesting a European Commission directive preventing them from fishing within a three-mile zone from the shoreline.

They had prevented activities at the Nea Mihanionia fish market earlier, affecting sales of both domestically caught and imported fish. One auction had to be held at a local gas station.

On Monday, Thessaloniki fishermen kept their trawlers in port as they joined a natiowide protest against the directive.

Commission Directive 1626 limits the fishing zone and increases the size of fishing net meshing used by fishermen.

Panhellenic Trawler Owners Union vice-president Theodosis Maritsas said the directive prohibits fishing in a zone of three miles from coasts and allows it at a shorter distance only if the sea depth exceeds 50 metres. This, however, clashes with Greek n ational legislation which prohibits fishing altogether at a distance of less than two miles off the coast regardless of sea depth.

Mr. Maritsas also said the directive requirement of nets with a 20mm mesh opening, compared to the 14mm opening used by Greek fishermen, would lead to a 50 per cent reduction in fish catch, since smaller sized fish such as the gildhead and the red mullet, as well as shrimp, would escape. On the other hand, he added, Turkish trawlers would continue to catch those fish and channel them to the Greek market.

The postponement until May 31 coincides with the end of the fishing season.

Athens News Agency

[09] Athens Foreign Exchange

Athens 08/01/1999 (ANA)

Parities in Drachmas

Banknotes            Buying  Selling
US Dollar            275.617 282.008
Can.Dollar           182.528 186.760
Australian Dlr       173.347 177.366
Pound Sterling       455.606 466.169
Irish Punt           408.419 417.888
Pound Cyprus         553.199 566.025
Pound Malta          683.429 711.905
Turkish pound (100)    0.072   0.075
French franc          49.036  50.173
Swiss franc          198.985 203.599
Belgian franc          7.974   8.159
German Mark          164.460 168.273
Finnish Mark          54.099  55.353
Dutch Guilder        145.961 149.345
Danish Kr.            43.212  44.213
Swedish Kr.           35.028  35.840
Norwegian Kr.         37.271  38.136
Austrian Sh.          23.376  23.918
Italian lira (100)    16.612  16.997
Yen (100)            248.298 254.055
Spanish Peseta         1.933   1.978
Port. Escudo           1.604   1.642

Foreign Exchange     Buying  Selling
New York             275.617 282.008
Montreal             182.528 186.760
Sydney               173.347 177.366
London               455.606 466.169
Dublin               408.419 417.888
Nicosia              553.199 566.025
Paris                 49.036  50.173
Zurich               198.985 203.599
Brussels               7.974   8.159
Frankfurt            164.460 168.273
Helsinki              54.099  55.353
Amsterdam            145.961 149.345
Copenhagen            43.212  44.213
Stockholm             35.028  35.840
Oslo                  37.271  38.136
Vienna                23.376  23.918
Milan                 16.612  16.997
Tokyo                248.298 254.055
Madrid                 1.933   1.978
Lisbon                 1.604   1.642

Athens News Agency

[10] Greece dismisses latest Turkish quips on Athens FIR as baseless

Athens 08/01/1999 (ANA)

Saying the Turkish claims were full of inaccuracies, government spokesman Dimitris Reppas accused Ankara of distorting reality in its attempt to turn a purely technical issue into a political one.

"Turkey's aim is to change the status quo of air traffic control in the Aegean," Mr. Reppas said.

A Turkish foreign ministry announcement on Tuesday said Greece had not yet activated an air traffic radar system despite repeated requests by international civil aviation authorities.

Mr. Reppas said the Turkish claims came as no surprise to the Greek government, "since the neighbouring country invents or fabricates issues in order to create problems in our bilateral relations".

He added that a new advanced air traffic control system would become operational next month which, together with the existing system, would provide twofold coverage and consequently greater flight safety.

In contrast, the spokesman added, the Turkish system is obsolete and inadequate even for Turkey's own needs.

The percentage of flight delays for which Greece was responsible was 17 per cent in 1998, compared to 21 per cent in the case of Britain and 14 per cent for France, the spokesman added.

Mr. Reppas said Turkey was the last country which could speak of air traffic safety, given that its tactics and airspace violations in the Aegean jeopardised the safety of flights.

Replying to reporters' questions, Mr. Reppas said Greek control of the Athens FIR had not been questioned by international organisations, while the issue had not even been raised of a change in air corridors "which will continue to be used as normal".

Mr. Reppas attributed the delay in the new air traffic control system's operation in part at least to trade union "reactions", adding that the stance of air traffic control employees had not been good.

Athens News Agency

[11] Euro-socialists prepare 'manifesto' for June Euro-elections

BRUSSELS 08/01/1999 (ANA - P. Pantelis)

Greece's ruling PASOK was represented by Deputy Foreign Minister Yiannos Kranidiotis, who said that "the European manifesto, as it has been set out, expresses both the scepticism and views of PASOK."

"We also contributed actively, with ideas and proposals, to the shaping of the text. Emphasis is given with the manifesto to the need for European unification to have as the focus of concern the European citizen, his daily needs and his problems. We are pursuing a Europe which we are building and will help in problems being tackled such as employment and development. It must give priority to social issues: Health, education, social insurance and welfare. Inequalities must be combatted and economic and s ocial convergence must be pursued. The target of the socialists is a strong Europe with an international role and presence," he said.

The text of the socialist manifesto will be submitted for ratification to the leaders of the socialist parties of Europe, who will meet in Vienna on Jan. 29-30.

Prime Minister Costas Simitis will participate in the meeting and will discuss issues with his counterparts concerning the preparation of the ESP's congress, to be held in Milan in early March.

Referring to the euro, Mr. Kranidiotis said that economic and monetary union will find itself in midair unless the European Union goes ahead with a substantive political unification. This primarily entails the strengthening of the democratic functioning and representa-tiveness of European institutions. The European Parliament must acquire further powers which the Council of Ministers must give to it. The issue of the democratic deficit must be handled seriously in the next revision of the treaty.

He also referred to the ideas of former European Commission President Jacques Delors who claimed that the new European Commission President must be proposed by the political groups and be elected by the European Parliament.

He also maintains that a special Council headquartered in Brussels must be created and convene every 15 days. Mr. Kranidiotis said that these proposals are very interesting and must be handled positively.

"It is an effort aimed at the further democratisation of the European Union, " he said.

Mr. Kranidiotis also commented positively on the European Union's proclamation on the decision taken by the government of Cyprus concerning the Russian S-300 anti-aircraft missiles.

"With the proclamation, the European Union requests from the Turkish side to make similar moves for a decrease in armaments in Cyprus," Mr. Kranidiotis said.

Athens News Agency

[12] Reppas: Both Athens,Nicosia agree on Crete for S-300s' deployment

Athens 08/01/1999 (ANA)

"This is the will of both governments and will be implemented," government spokesman Dimitris Reppas said, adding that the Cypriot government was in contact with Russia concerning issues related to the missiles.

Cypriot President Glafcos Clerides announced his decision not to deploy the missiles on the island after a meeting of Cyprus' National Council on Dec. 29. Earlier the same day, he had held talks in Athens with Prime Minister Costas Simitis.

Asked by reporters to comment on reactions in Cyprus to the decision not to deploy the missiles, particularly a statement by the leader of the opposition Democratic Party and speaker of the Cypriot House of Representatives, Spyros Kyprianou, who claimed that a joint defence doctrine between Greece and Cyprus no longer exists, Mr. Reppas said:

"The Greek government respects the views of the Cypriot political parties but will not do anything to jeopardise the strong unity between Greece and Cyprus."

The Greek spokesman advised all other parties to do the same.

Underlining that Athens stood firmly at the side of Cyprus, Mr. Reppas cited the two countries' joint military exercises, visits by Greek military aircraft to Cyprus and the fact that Greece was playing a leading role in efforts for Cyprus' accession to the European Union.

"All this indirectly strengthens Cyprus' defence and we will accept nothing less. We will not accept any damage to the national cause simply to be more likeable to some," Mr. Reppas said.

He added that efforts towards demilitarisation on the island republic have not yielded results until now due to Turkey' s negative stance.

Boldness and imagination are needed to solve the 25-year-old problem, he concluded.

Athens News Agency

[13] Gov't: Athens will not accept fait accompli on FYROM name issue

Athens 08/01/1999 (ANA)

Mr. Reppas made the statement in answer to a question related to Skopje's request to Athens that it intervene with the European Union so the name "Macedonia" is used for that country's dealings with Union member- states.

He added that he does have information of a relevant letter to the Greek foreign ministry, while he noted that Greece recently put an end to an effort by Skopje to acquire the international postal acromym "MK" for its postal use.

Athens News Agency

[14] G. Papandreou on briefing EU citizens on Amsterdam Treaty

Athens 08/01/1999 (ANA)

It has been agreed between the Greek government, the European Commission and the European Parliament that an extensive programme of briefing Greeks on the Amsterdam Treaty and its influence on their lives will start in January. TV, radio, the press and Internet will be used for the briefing.

The briefing programme is based on the national action programme for the briefing of citizens, decided in September and currently being implemented.

The national action programme is based on the European Union programme "Building Europe together" and will absorb one million euro (about 330 million drachmas). Half of the money will be provided by the EU and the remainder by the national budget.

Athens News Agency

[15] Gov't appeals to teachers for smooth reopening of schools

Athens 08/01/1999 (ANA)

"We call upon everyone, particularly teachers, students and parents to contribute to the smooth functioning of schools. The government has proceeded to repair the damage caused during the occupations, so that the schools may be ready to function smoothly and immediately," government spokesman Dimitris Reppas stated.

He added that schools have sustained serious and extensive damage, possibly at the instigation of elements outside the school community, while prosecutors have launched preliminary investigations for the identification and prosecution of culprits.

Despite the appeal, teachers announced two-hour work stoppages in protest against the arrests of protesting students outside a school complex in the Galatsi districts of Athens.

Meanwhile, a students' coordinating body in Thessaloniki yesterday called for a continuation of occupations, marches and road blockades until the abolition of the reform measures.

Sources in the city said school authorities have issued strict instructions to headmasters for a recommencement of classes this morning, rejecting students' calls for the convening of general assemblies to assess the situation.

In another development, a Supreme Court prosecutor issued a circular to prosecutors throughout the country ordering the arrest of students setting up road blocks. Also, police are instructed to arrest any school occupiers if notified by headmasters.

Additionally, a meeting between teachers' representatives and Education Minister Gerasimos Arsenis proved fruitless, with the minister insisting on dialogue on the reform law, and the teachers calling for its abolition. However, the teachers' organisati on affiliated to the ruling PASOK party said it was separating its position from the rest of the teachers' federation.

Athens News Agency

[16] PASOK delegation in Israel

Athens 08/01/1999 (ANA)

Deputy Foreign Minister Yiannos Kranidiotis and PASOK central committee member Theodoros Tsoukatos will head the delegation.

They are scheduled to meet with Labour Party president Ehud Barak, Israel's FM Ariel Sharon, Palestinian leader Yasser Arafat and Jerusalem Patriarch Diodoros, among others.

Athens News Agency

[17] OA flight schedule curtailed as pilots enforce 'work-to-rule' action

Athens 08/01/1999 (ANA)

OA management estimates an 8-10 per cent reduction in the number of flights, while it is also apprehensive over the reaction by pilots, fearing an 'outbreak' of calling in sick in order to force cancellations of flights.

OA pilots are refusing to work overtime in order to press demands, including the hiring of more flight personnel.

The move has caused cancellations and long delays to OA's domestic and international flights.

Three flights were cancelled yesterday, one to Thessaloniki and two to foreign destinations.

On his part, OA managing director Theodoros Tsakiridis was less than optimistic about the debt-ridden national carrier's future.

"There is a poor civil servant mentality in Olympic Airways. If in 1999, which I consider a key year, OA does not succeed in balancing its budget, then it is certain that it will not survive", he stressed.

He called for a change in the legislative framework and at the same time appealed to all OA employees for dialogue so as to find a solution to maintain the jobs at the national carrier while at the same time securing the airline's survival.

Replying to pilots' accusations that OA's management was reducing the airline's itineraries to crush the company and decrease the value of its assets, Mr. Tsakiridis noted that since 1994 the government had written-off OA's 640 billion drachmas deficit, dished out 120 billion drachmas in state guarantees for the renewal of OA's fleet, and another 40 billion drachmas for an OA share capital increase.

It was the pilots who were devastating the airline, he said. "If they are considering buying the company, let them make a relevant proposal to the shareholder, who has indeed said in the past that it is searching for a strategic investor to acquire a 15 per cent stake in the company".

"The company cannot afford to give more money," Mr. Tsakiridis added.

Government spokesman Dimitris Reppas later called the pilots' demands "extreme and completely unreasonable".

"These demands endanger the reform programme and the company itself," Mr. Reppas told reporters at the daily briefing.

He said it was inconceivable for demands for 35 per cent wage increases to be accepted and called on pilots to think of the greater good.

The government in December agreed to the hiring of 45 new pilots and appointments will be made through competitions, he said.

"The state is not about to spend another drachma nor to succumb to blackmail or the overturning of the Olympic Airways reform programme," a statement from the transport ministry said.

The government's stance "aims not only at the survival of the national carrier but at its growth so as to bid for a place in tough international competition," the statement continued.

The ministry called the delays and other incidents caused by the pilots' work-to-rule "unacceptable" and that inquiries were under way.

Athens News Agency

Athens News Agency: Daily News Bulletin in English Directory - Previous Article - Next Article