Athens News Agency: Daily News Bulletin in English, 99-01-15

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] Parliament debate opens on ND no-confidence motion against education minister

[02] Simitis criticises some EU states over stance on Cyprus' EU accession

[03] Tsohatzopoylos outlines ministry's priorities for '99

[04] G. Papandreou meets with representatives of groups promoting cultures

[05] Stephanopoulos hosts reception for foreign diplomats

[06] Younger politicians of SE Europe to gather in Athens

[07] Missouri Governor Carnahan in Greece

[08] Stephanopoulos hands out journalism awards

[09] Teleconferencing between Athens, Thessaloniki and Italy

[10] N. Greece export firms report mostly positive performances

[11] Greece moving closer to EMU entry, OECD says

[12] Alpha Credit Bank slashes loan, deposit rates

[13] Stocks jump in wake of previous slump

[14] Bonds rally, drachma firms again

[15] Bank chief sees no negative impact on Greece from Brazil crisis

[16] Themeliodomi-Vardinoyiannis give details of cooperation

[17] Capital for new fish farming firm in UAE

[18] Financial consultant to be selected for attracting capital for road projects

[19] Athens Foreign Exchange

[01] Parliament debate opens on ND no-confidence motion against education minister

Athens 15/01/1999 (ANA)

"He is trying to create a political front, prompted by developments in the education sector, in order to fence-off his party," embattled Education Minister Gerasimos Arsenis told a Parliamentary debate yesterday evening on a motion of no-confidence against him, submitted by New Democracy "due to the explosive situation" in many high schools, where continued occupations by students have developed into outdoor scuffles in many instances.

Mr. Arsenis said "the sumbission of the motion against a minister for implementing government policy is a phenomenal gaffe," adding that Mr. Karamanlis, after having expelled two of ND's former education ministers from the party - Messrs. Kontoyiannopoulos and Souflias P has now decided to deal with ruling PASOK.

He attributed the move to the opposition leader's inexperience and panic in the face of what he referred to mounting speculation that Athens Mayor Dimitris Avramopoulos, a ND cadre, may create his own political party.

Replying to the charge that the recently introduced law on education reform, which has sparked widespread students' protests, was his personal creation, Mr. Arsenis said: "it is the product of many years of work in PASOK, included in the party's book on educational reform since 1993".

"The reform will progress, whether you like it or not," he stressed.

He also lashed against the Communist Party of Greece (KKE), claiming that its cadres organised the sit-ins, as well as against a section of the teaching community "who belong to particular political parties."

Finally, he forecast that the greatest number of schools were operating normally and that "students' and parents' reactions would lead to the re- opening of the remaining ones until the end of next week".

In response, ND rapporteur Anna Psarouda-Benaki blamed the prime minister, Costas Simitis, for not assuming the initiative of removing Mr. Arsenis, and the education minister for not assuming the political responsibility for the situation in schools, an d for sending public prosecutors and police to arrest students. "We used all Parliamentary means, with questions and draft bills regarding a national education council," she said, while addressing ruling party deputies in particular, she added: "You are the last hope for a change in the present situation".

Replying to charges that his party was instigating the sit-ins, KKE rapporteur Apostolos Tasoulas said the main issue at hand was that all students, teachers and most parents were opposed to the reforms.

He claimed that 95 per cent of pupils were participating in the occupations.

Coalition of the Left rapporteur Petros Kounalakis expressed the view that responsibility for the situation in education lay with the entire government and not just with the minister.

He added that his party would support the no-confidence motion. Sources said KKE intended to do the same.

Circles close to Democratic Social Movement (DHKKI) leader Dimitris Tsovolas said the party would determine its stand depending on the course of the debate.

The three-day debate will continue this afternoon and Saturday, depending on the list of speakers, and will end with a roll-call vote on Saturday.

If the motion is passed with a simple majority, Mr. Arsenis will be obliged to resign as education minister.

The government said later that it greeted the ND motion as a "tactical move against normality, democratic legality and the government's efforts to create the right conditions for education in Greece."

"Your motion reveals in the most blatant manner that behind this facade of championing democracy there lies a deep hypocrisy motivated by the logic of increasing tension and petty political point-scoring," Interior Minister Alekos Papadopoulos told Mr. Karamanlis.

Student protests increase : Meanwhile, tension and minor scuffles reigned again yesterday as high school students opposed to sweeping changes to the structure of secondary education continued to clash with parents and teachers over the occupations of their schools.

Students blocked roads in Athens and Piraeus, in defiance of a judicial ban, infuriating passing motorists and, at times, coming to blows with them.

An hour-long blockade of major Alexandras Avenue in the morning caused serious traffic congestion in the city centre.

There will be no let-up for drivers again today, when students and teachers opposed to the reforms are holding a nationwide march through the city centre.

Acting government spokesman Yannis Nikolaou said the government insisted on the implementation of a controversial education reform law but was open to talks on how it should be applied in practice.

Mr. Nikolaou warned "those trying to score political points" that they had chosen the wrong time and place "because the government will not be harmed by students".

He also called on teachers to use their influence to enable schools to reopen. In another incident from the schools battleground, a reporter was slightly injured during the road block held in the suburb of Aigaleo.

One driver, frightened by students climbing on to the hood of her car and banging on the vehicle, attempted to reverse in a panic, knocking over a state-owned television crew.

A student committee in Thessaloniki said 15 junior and senior high schools in the city were under occupation.

Parents and students came to blows at three schools in the city over opening the schools for classes.

According to reports from the city, Monday will be critical to the future of the protests as many schools in the city are near to being cut off from participating in June examinations.

Thessaloniki Prefect Costas Papadopoulos told reporters at midday that if occupations continued through to next week, some schools would flunk the year because there would not be enough time to make up for missed classes.

Make-up lessons would be held on weekends, public holidays and on days allocated for traditional summer week-long school excursions. These, however, are still not enough to make up for lost time if examinations are to be held as scheduled.

Athens News Agency

[02] Simitis criticises some EU states over stance on Cyprus' EU accession

MADRID 15/01/1999 (ANA)

He also criticised, in the interview, certain countries over their stance on the issue.

Mr. Simitis said certain countries -excluding Spain - appeared not to want to implement the EU's 1995 decision for Cyprus to become a member of the European Union.

"We cannot now say there is a political problem, the solution of which is a condition for Cyprus' EU accession" when the decision for Cyprus' membership was taken when the Turkish troops' occupation of the northern part of the island was already in its 20th year, Mr. Simitis said.

Replying to questions on Europe's political unification, Mr. Simitis said discussions were taking place, but without it being clear what precisely was being aspired to.

In order to overcome the existing obstacles, the Greek premier called on the member-states to discuss precisely what it was that they desired for the future.

He added that common foreign and security policy was a good example of what could not be achieved when there were conflicting interests.

"No country is willing to concede its national authority," Mr. Simitis said. Prompted by the EU policy on the Yugoslav problem, Mr. Simitis stressed the necessity for discussions inside the EU on whether it wished to formulate a uniform position, citing the example of Greek-Italian cooperation during the Albanian crisis, something that encouraged the EU to become involved.

"That proved that, if we want to we can do things," he said.

Regarding a question on EU finances, Mr. Simitis said that Greece, Spain and Portugal shared common goals in the ongoing negotiations, which was for more money to be available for the EU's policies and for cohesion to be continued.

Athens News Agency

[03] Tsohatzopoylos outlines ministry's priorities for '99

Athens 15/01/1999 (ANA)

Speaking at a New Year cake-cutting ceremony at the General Directorate for Armaments, Mr. Tsohatzopoulos said one of the top priorities was to upgrade the training and qualifications of armed forces personnel.

"Military personnel will thus be able to meet the challenges created by the procurement of new weapons systems and the full activation of the NATO headquarters in Larissa in the spring," Mr. Tsohatzopoulos said.

Other priorities, he said, are the installation and operation of a single electronic data processing system and the ministry's substantial intervention in European developments with respect to the integration of defence industries through its participat ion in joint-production programmes.

Mr. Tsohatzopoulos said also that Greece's armaments programme for the period 2001-2006 would be formulated during 1999.

The minister noted that the work of the General Directorate for Armaments had so far been positive, particularly considering that it existed only on paper three years ago.

The head of the directorate,Ioannis Sbokos, undertook a commitment to ensure attainment of the ministry's target of an increase in the participation of Greek defence industries in the armed forces' armaments programme to the level of 15 per cent.

Athens News Agency

[04] G. Papandreou meets with representatives of groups promoting cultures

Athens 15/01/1999 (ANA)

The meeting held at the foreign ministry was attended by the board members of the Greek Cultural Foundation (EIP), ambassadors from all relevant departments, representatives from all the relevant departments of the expatriate Hellenism general secretari at, etc.

By decision of Mr. Papandreou, a special programming and assessment committee of EIP's work will be created.

Dimitris Dollis, president of the World Inter-Parliamentary Union of Hellenism, will be appointed president of EIP. Mr. Dollis is a deputy in Australia.

Athens News Agency

[05] Stephanopoulos hosts reception for foreign diplomats

Athens 15/01/1999 (ANA)

Party leaders did not attend due to a debate in Parliament on a no- confidence vote submitted by the main opposition New Democracy against Education Minister Gerasimos Arsenis.

Athens News Agency

[06] Younger politicians of SE Europe to gather in Athens

Athens 15/01/1999 (ANA)

The meeting hopes to help promote a regional development plan for the countries of SE Europe.

The sessions will be formally opened today in the Parliament by Parliament President Apostolos Kaklamanis and addressed by Foreign Minister Theodoros Pangalos, among others.

In the afternoon, the participating politicians will meet with various Greek political leaders.

The meeting proper will be held at a central Athens hotel tomorrow, with discussions of subjects including "The Balkans and European Policy", "Democracy and the Society of Citizens in the New Millennium" and "Development and Economic Cooperation in Euro pe and the Region".

It will be the first time that young politicians from Turkey and Bosnia participate in such an event.

Athens News Agency

[07] Missouri Governor Carnahan in Greece

Athens 15/01/1999 (ANA)

According to reports, Mr. Carnahan will lobby for the award of several military aircraft and construction contracts to Missouri-based companies, such as Boeing.

Athens News Agency

[08] Stephanopoulos hands out journalism awards

Athens 15/01/1999 (ANA)

The event was held at the old Parliament building and the journalists given awards were Mimis Papanayiotou and Rihardos Someritis.

Mr. Stephanopoulos praised them for their excellent and longstanding contribution to journalism and for the proper use of the Greek language.

Athens News Agency

[09] Teleconferencing between Athens, Thessaloniki and Italy

Athens 15/01/1999 (ANA)

The Thessaloniki International Trade Fair (HELEXPO) conference centre "Nikolaos Germanos" will be 'transferred' to a downtown Athens hotel through a tele-conference, allowing participants from "Nikolaos Germanos" to communicate with the meeting.

Certain portions of the conference will also be broadcast to three Italian cities, Milan, Bologna and Florence.

The conference will focus on business development in the Mediterranean basin.

Athens News Agency

[10] N. Greece export firms report mostly positive performances

Athens 15/01/1999 (ANA)

According to a relevant announcement by the Federation of Exporters of Northern Greece (SEBE), an average increase of 15 per cent is observed, from 425 billion drachmas to 488 billion drachmas in exports of the specific businesses contained in the research, which represent exports businesses in the region to a great degree. Exports in 1996, according to the same report, decreased by 4 per cent.

The volume of the exports of each business in 1997 was 504 million drachmas (440 million in 1996) on average. The country's total exports in 1997 increased by 7 per cent, namely lower than the 15 per cent increase in exports from northern Greece, a fact showing that to a great degree Greek exports rely on businesses from northern Greece.

The sales of the exports businesses contained in the specimen increased by 12 per cent (from 1.09 trillion drachmas to 1.22 trillion drachmas) in 1997, while in 1996 they had decreased by 13 per cent and as a result they exceeded 1.2 billion drachmas on average.

The announcement said that the performance of exports businesses was very positive with regard to their investments since, following their downward trend in 1996 ( a decrease of 55 per cent), they increased by 18 per cent (from 71 billion drachmas to 85 billion drachmas) and approached 87 million drachmas on average per company.

Athens News Agency

[11] Greece moving closer to EMU entry, OECD says

PARIS, 15/01/1999 (ANA/O. Tsipira)

"Thanks to continuous efforts in recent years, the target seems to be feasible for Greece," Paris-based OECD said in a report.

The general government deficit dropped below 3.0 percent of gross domestic product in 1998, sliding from 7.5 percent of GDP in 1996. It forecast the deficit would fall further.

The report attributed fiscal improvement to the successful implementation of structural measures, such as expanding the tax base and combatting tax evasion.

But the government needed to carry out remaining measures at a brisk pace.

"In order to support the drachma's parity in the trial period before eurozone entry and ensure positive macro-economic results after entry, the government must proceed rapidly with the structural changes it deems essential, despite objections from inter est groups," the report said.

At the same time, inflation had dropped drastically despite a drachma devaluation in March, paving the way in the near future for attainment of the European Union's inflation criterion for EMU entry, OECD said.

It underlined that the government's macro-economic policies and structural measures were moving in the right direction, and the public debt also was falling.

The drachma's entry into the EU's exchange rate mechanism had enhanced the credibility of the country's monetary policy abroad, in turn boosting domestic financial markets.

In addition, the OECD report said that Greece's growth rates had exceeded the EU average in the last few years.

The improvement reflected a rise in public investments that had led to an increase in domestic demand. OECD expected the trend to continue in the near future with public investments rising by 10 percent in real prices in 1999-2000.

The report noted that private investments had also risen due to higher corporate profits.

Athens News Agency

[12] Alpha Credit Bank slashes loan, deposit rates

Athens 15/01/1999 (ANA)

He said the prime lending rate would drop by 2.5 percentage points to 12.75 percent from 15.25 percent. The rate is on loans for operating capital and fixed assets.

The floating rate on housing loans would fall by four percentage points to 11.75 percent from 15.75 percent; and the savings deposit rate decline to 8.0 percent from 8.75 percent, Mr. Kostopoulos said.

The bank's Visa rate would drop by two percentage points, and its American Express card by one point. Credit card and personal loan rates would fall further within the next three months and new products would be offered, Mr. Kostopoulos said.

For the first time housing loans in euros would be offered.

Alpha may bid for Ionian Bank : Alpha Credit Bank yesterday received a package of investment data on Ionian Bank, which the government plans to privatise by mid-March, Mr. Kostopoulos said.

"We will decide (if we will bid) in the near future. Nothing can be ruled out," he said.

The bank governor was replying to a reporter's question on whether his bank would bid in the international tender called by the government.

Also asked if the bank is to seek listing on Wall Street, Mr. Kostopoulos said: "This is something any large European bank must consider."

Alpha's consolidated pre-tax seen at Dr 113 bln in 1998 : The Alpha Credit Bank Group's pre-tax consolidated profits for 1998 after provisions and depreciation are expected to be around 113 billion drachmas, up 18 percent from 1997, Mr. Kostopoulos said.

The Group's assets in the same year were 4.4 trillion drachmas, up 26 percent against the previous year, and equity capital was 415 billion drachmas, up 48 percent.

Deposits were 3.3 trillion drachmas, up 29 percent, and loans 1.9 trillion drachmas, also posting a 29 percent rise against 1997, Mr. Kostopoulos said.

The parent company's net pre-tax profit is expected to exceed 86 billion drachmas, up 19 percent.

Management will propose a dividend at least 10 percent higher than the previous year, Mr. Kostopoulos said.

Deposits rose 30 percent, assets 18 percent and loans 31 percent.

Athens News Agency

[13] Stocks jump in wake of previous slump

Athens 15/01/1999 (ANA)

Traders said stability in international markets combined with domestic interest rate declines encouraged buying.

The general index ended 3.51 percent higher at 2,896.40 points. Turnover was heavy at 101.2 billion drachmas on volume of 19,423,000 shares.

Foreign investors were particularly active in banking blue chips, along with Hellenic Telecommunications Organisation and Panafon, reaffirming strong confidence in the market's outlook.

Sector indices scored gains.

Banks soared 4.64 percent, Leasing was 2.60 percent up, Insurance increased 2.11 percent, Investment jumped 3.87 percent, Construction rose 2.97 percent, Industrials ended 1.91 percent, Miscellaneous rose 3.22 percent and Holding ended 0.63 percent up.

The parallel market for small cap stocks ended 4.81 percent up, while the FTSE/ASE 20 index ended 3.89 percent up at 1,827.34.

Broadly, advancers led decliners by 235 to 26 with another 14 issues unchanged.

Viosol, Mytilineos, Thessaliki and Eskimo were the most heavily traded stocks.

Forty-eight stocks hit the daily 8.0 percent limit up, including General Bank, Macedonia-Thrace Bank, Bank of Central Greece, Hellenic Sugar, Ideal, Euromedica, Singular, Klonatex and Keranis.

Remek, Mohlos, Minerva, Technodomi, Xifias, Petzetakis, Yalco, Galis and General Warehouses suffered the heaviest losses.

National Bank of Greece ended at 65,100 drachmas, Ergobank at 35,500, Alpha Credit Bank at 31,450, Ionian Bank at 15,680, Titan Cement at 21,490, Hellenic Petroleum at 2,310, Intracom at 14,100, Minoan Lines at 7,000 and Hellenic Telecommunications Organisation at 8,100 drachmas.

Athens News Agency

[14] Bonds rally, drachma firms again

Athens 15/01/1999 (ANA)

Bond prices rose by 100 to 150 basis points initially, then to slip and consolidate at lower levels by the end of the day, showing an 85-100 basis point rise.

Long-term bonds were the main attraction of the session with 10-year prices rising to 114.4-114.48.

Turnover also rose to total 56 billion drachmas in electronic trade, reflecting strong buying interest from foreign investors.

Analysts noted, however, that the market's recent volatility was a sign of concern, and typical of a mature market.

The 10-year bond's yield fell to 6.42 percent.

In the domestic interbank market, interest rates rose slightly reflecting a lack of liquidity. One-month rates rose to 12 percent, although the overnight rate was stable at 11.80.

The US dollar edged up against the drachma to close at 279 drachmas at the central bank's daily fix, up from 278.760 on Wednesday.

Athens News Agency

[15] Bank chief sees no negative impact on Greece from Brazil crisis

Athens 15/01/1999 (ANA)

"I don't think the financial crisis in Brazil will have any negative repercussions on the Greek economy," Mr. Karatzas said.

"Market sentiment is one thing and the real economy another."

National Bank unlikely to cut rates immediately : A cut in key rates by the central bank on Wednesday was expected by the market, and signalled macro- economic progress, Mr. Karatzas said.

National Bank of Greece was unlikely to follow suit and lower its rates due to market conditions.

Rates would pursue a gradual decline throughout the year, Mr. Karatzas said.

Athens News Agency

[16] Themeliodomi-Vardinoyiannis give details of cooperation

Athens 15/01/1999 (ANA)

On Jan. 8 the transfer occurred of 1.2 million of the company's ordinary nominal shares (at the price of 3,300 drachmas each) from the company's main shareholders to Mr. Vardinoyiannis, who now holds 15.53 per cent of the company's shares and occupied the position of board deputy president.

Board members, and managing director and general director Nikolaos Economou in particular, said the move has a "strategic character" which provides the company's potential with a new impetus.

It also announced the company's forthcoming share capital increase to enable it to exceed 15 billion drachmas in own capital and rank among the country's five top construction companies.

Mr. Economou said Mr. Vardinoyiannis' successful business activities in Balkan countries, Bulgaria and Romania in particular, as well as in former Soviet countries, combined with the capabilities of Themeliodomi and the know-how and potential of its cad res, create very positive prospects for its further activation both in Greece and abroad.

Mr. Economou said the participation of the new shareholder was considered necessary to enable Themeliodomi to increase its capabilities in handling complex projects such as projects being planned in light of the 2004 Olympiad, infrastructure projects co ntained in the Santer package and projects the company hopes to undertake in Balkan and eastern European countries.

Themeliodomi was founded in 1976 and is headquartered in Thessaloniki. It is active in construction projects specialising in foundation works, environmental projects and ports.

Its own capital currently amounts to 10 billion drachmas and it holds 50 per cent of the Nestos company which is a 7th class construction company having own capital amounting to 10-11 billion drachmas. It also created the company Perivallon (Environment ).

In 1997 its turnover amounted to 12 billion drachmas and its profits to 2.1 billion drachmas, while in 1998 its turnover is expected to be in the region of 14 billion drachmas and its profits 2.3 billion drachmas.

It employs about 300 people of which 85 are university graduates (engineers, financial analysts etc) and constructs about 100 projects a year.

The company is already active in Romania, where it is constructing one big and three smaller projects, as well as in Albania through the PHARE programme.

According to board members, their future concerns include the company's participation in project auctions, amounting to 200 billion drachmas, for the Egnatia motorway which will take place in the next two months.

Athens News Agency

[17] Capital for new fish farming firm in UAE

Athens 15/01/1999 (ANA)

The amount gathered totals US$82 million, which will constitute the company's share capital.

The development concerns an ambitious investment programme in fish farming, implemented by the Nirefs company, with the participation of 15 other companies and personalities from UAE. In the investment scheme, in which Nirefs has the largest stake (5 p er cent), also includes Dassault in the context of countervailing benefits which it has undertaken towards Greece.

The new company will produce fish and shrimps in UAE and Oman, and will distribute them in European and Far East markets. In the future it will found or participate in further auxiliary ventures to the fish farming industry.

Athens News Agency

[18] Financial consultant to be selected for attracting capital for road projects

Athens 15/01/1999 (ANA)

So far three of the six consortia that were pre-selected have submitted technical and price bids, namely, Price Waterhouse/EFG Eurobank, Bank of America/ETEBA, and Bank of Tokyo Mitsubishi/ Charterhouse/Ioniki Finance/Lamda.

Signing of the agreements is projected for next year.

Athens News Agency

[19] Athens Foreign Exchange

Athens 15/01/1999 (ANA)

Parities in Drachmas

Banknotes            Buying  Selling
US Dollar            276.768 283.185
Can.Dollar           181.278 185.481
Australian Dlr       175.286 179.350
Pound Sterling       456.657 467.245
Irish Punt           409.427 418.919
Pound Cyprus         552.544 565.355
Pound Malta          686.284 714.879
Turkish pound (100)    0.072   0.075
French franc          49.157  50.297
Swiss franc          202.180 206.867
Belgian franc          7.993   8.179
German Mark          164.866 168.688
Finnish Mark          54.232  55.490
Dutch Guilder        146.321 149.714
Danish Kr.            43.319  44.323
Swedish Kr.           35.299  36.118
Norwegian Kr.         36.952  37.809
Austrian Sh.          23.433  23.977
Italian lira (100)    16.653  17.039
Yen (100)            242.742 248.370
Spanish Peseta         1.938   1.983
Port. Escudo           1.608   1.646

Foreign Exchange     Buying  Selling
New York             276.768 283.185
Montreal             181.278 185.481
Sydney               175.286 179.350
London               456.657 467.245
Dublin               409.427 418.919
Nicosia              552.544 565.355
Paris                 49.157  50.297
Zurich               202.180 206.867
Brussels               7.993   8.179
Frankfurt            164.866 168.688
Helsinki              54.232  55.490
Amsterdam            146.321 149.714
Copenhagen            43.319  44.323
Stockholm             35.299  36.118
Oslo                  36.952  37.809
Vienna                23.433  23.977
Milan                 16.653  17.039
Tokyo                242.742 248.370
Madrid                 1.938   1.983
Lisbon                 1.608   1.646

Athens News Agency

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