Athens News Agency: Daily News Bulletin in English, 99-01-30

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

CONTENTS

[01] European socialists focus on employment, growth at Vienna summit

[02] Bond yields slip below 6.0 for first time, touch EMU target

[03] Pangalos on S-300 issue

[04] Wild fauna protection law

[05] Vartholomeos to address Davos meeting

[06] Greece-Cyprus memorandum on island republic's EU accession course

[07] Greece to send aid to quake-stricken Colombia

[08] Gov't pleased with UNESCO initiative over Parthenon Marbles

[09] Advertising in the Daily Bulletin

[10] DNA testing of murdered US national's body ordered

[11] Tax bureau warns of stricter controls in '99

[12] Management tender for OA expected on Sunday

[13] National Bank gets shareholders' OK for stock split

[14] Stocks again post new high in heavy turnover

[15] Greece to auction 12-month treasury bills, savings bonds

[16] Air Greece to launch new service to Italy

[17] Minister presents Greek economy to Swiss investors

[18] Athens bourse seen rising in mid-term

[19] Singular software posts 60 pct rise in revenue

[20] Greece to join Expo 2000 in Germany

[21] Bank of Greece restrictions on consumer loans

[22] M3 rises

[23] Nationwide numbers for private Internet providers

[24] Athens Foreign Exchange

[01] European socialists focus on employment, growth at Vienna summit

"They want solutions which will give the citizen more possibilities and opportunities, and will help in directions that have been neglected, such as equality between the sexes, a boosting of employment for youth and a new role of youth in general. They are also targeting solutions which will make Europe more transparent, and its organs work more effectively," he told reporters after the end of the first session of the two-day summit of the European Socialist Party (ESP).

The summit's main agenda item is the adoption of a European "manifesto" of socialist and social-democrartic parties for June's Euroelections, but also includes a discussion for the future of Europe, focusing on employment and prepa-ration of an "Employm ent Pact" and the "Agenda 2000".

Mr. Simitis said Greece had every interest to this effort, because the growth of the whole will help the growth of the country and the active role it can play in European realities.

He said that during the first day of the summit, it was ascertained that the progress in the economy to date had helped stability and development in Europe, and these now had to be maintained.

"At the same time, clouds seem gathering on the world horizon, there are crises, which will perhaps lead to a fall of the growth process and will have a negative impact oin employment," he warned.

He further called for policies to boost demand, improve infrastructure, inter-European networks, and research and technology, and introduce new programmes.

All such issues will be tackled by all Socialist parties in the next month, in the process of drafting of the programme for the ESP conference in Milan on March 1-2, which will provide practical answers to the problems of the peoples of Europe.

The Greek delegation to the summit also includes Defence Minister Akis Tsohatzopoulos, a vice-president of the ESP, and Deputy FM Yiannos Kranidiotis.

The manifesto includes several Greek positions, set out by Mr. Simitis at the European summit in Poertschach last October.

These refer to economic and social cohesion, respect for international law, EU enlargement on the basis of criteria common for all, the need for modernising EU policies, the protection of external borders, and the forging of the society of citizens.

The first of the four parts of the manifesto refers to the need for a Europe of employment and growth, with a campaing against unemployment.

The second part refers to a Europe in the service of its citizens, with the principles of equality between the sexes, human and youth rights, a struggle against xenophobia, racism and crime, respect for the environment and a cultural identity.

The third part refers to a strong Europe which will deal with the prospect and challenge of globalisation, but with a stress of solidarity.

The fourth part contains a mention of greater efficiency, with the aim of bringing about the necessary changes in institutions and the budget, where resources must be adequate for the EU to respond to its mission.

Athens News Agency

[02] Bond yields slip below 6.0 for first time, touch EMU target

With yield on German bunds at 3.9 percent, the spread between the two countries' bonds is 2.1 percentage points, just above the maximum two percentage points of the EMU target.

Most prices surged 30-40 basis points with this week's 10-year bond ending at 102.70, showing a yield of 5.93 percent.

The 15-year bond finished at 105.45, with a yield of 5.94 percent; and the previous 10-bond at 117, posting an all-time high.

Electronic trade in the secondary bond market was 78 billion drachmas.

Robust sentiment in the market was further lifted by upbeat reports on Greece's economy by two international investment banks.

Salomon Smith Barney said that despite a rise in prices of Greek bonds, the paper remained among the cheapest in Europe, according to a Reuters news agency report.

It quoted Salomon as saying that Greece should apply for EMU entry in spring 2000.

Average inflation from April 1999 to March 2000 could be used to evaluate performance in meeting the EMU entry criterion.

Finally, ING Barings said in a weekly report that the Greek goverment's target of reducing the bond spread with German bunds to 1.50 percent by the end of the year could be termed realistic. ABN AMRO sees January inflation at 3.7 pct: - Greek consumer price inflation is likely to fall to 3.7 percent year-on-year in January, down from 3.9 percent in December, ABN AMRO said yesterday.

January's underlying inflation, which does not include fruit, vegetables and fuel, should fall to 4.7 percent or 4.8 percent year-on-year against 4.9 percent in December, the Netherlands bank said in a report.

It said the drop in underlying inflation was likely to prompt the central bank to cut its short-term intervention rate in early February to 11.75 percent from 12.00 percent after the government's announcement of January consumer price inflation.

There was also a chance that it would make a deeper cut in the rate, which the central bank uses for two-week funds in the money market, by 50 basis points.

The rate was likely to stand at 9.00 percent at the end of the year, the report forecast.

Athens News Agency

[03] Pangalos on S-300 issue

Mr. Pangalos was replying to opposition criticism in Parliament over the government's handling of the controversial S-300s issue.

A strongly worded exchange between the foreign minister and ND leader Costas Karamanlis as well as with Communist Party of Greece (KKE) deputy Stratis Korakas erupted when Mr. Pangalos accused main opposition ND of proposing a lifting of Greece's veto t o Turkey's EU financing. He also criticised what he termed ND's position for beginning a dialogue between Athens and Ankara over the latter's differences.

Mr. Karamanlis struck back by claiming that the foreign minister distorted ND's positions.

"ND has proposed a dialogue (between Athens and Ankara) but on certain conditions...you are the ones (government) who violated the conditions," Mr. Karamanlis charged.

KKE deputy Korakas strongly reacted to Mr. Pangalos' accusation that KKE was adopting a similar policy with conservative ND, calling the foreign minister "unaccep-table."

Tsovolas: Democratic Social Movement (DHKKI) leader Dimitris Tsovolas, who intervened in the discussion, accused the Simitis government of "permitting Turkey to question Greece's sovereignty (in the Agean), to harass a plane transporting the defence minister (Akis Tsohatzopoulos) to Cyprus, and of acquiring vital interests in the Aegean."

In a released statement, Political Spring leader Antonis Samaras expressed his discontent, charging that the foreign minister had failed to bear any responsibility or to explain what had led to the change of direction.

Athens News Agency

[04] Wild fauna protection law

At a meeting yesterday, representatives of the agriculture ministry, the University of Thessaloniki School of veterinary science and protection centres discussed specifications for the operation of such centres.

These included determination of their legal status and standards concerning their technical infrastructure, equipment, and staffing with specialised personnel.

Athens News Agency

[05] Vartholomeos to address Davos meeting

Athens News Agency

[06] Greece-Cyprus memorandum on island republic's EU accession course

The two ministers also agreed in talks that the prospects for Cyprus' accession to the European Union were "positive", despite certain temporary difficulties.

The two officials discussed issues related to the adjustment of Cypriot national legislation to Community law and underlined a series of economic data showing that Cyprus was far ahead of other candidate countries as regards the fulfilment of accession criteria.

In this respect, talks on legislation adjustment are due to begin between the EU and Cyprus in six of the seven sectors foreseen within the framework of accession negotiations. This compares with only four sectors in the case of other candidate countrie s.

On Jan. 1, Cyprus began implementing a four-year (1999-2003) economic strategy plan which is considered to be of key importance for the island republic's course to full EU membership.

Mr. Papandreou, who arrived in Cyprus on Thursday night, met later with Cyprus President Glafcos Clerides, House Speaker Spyros Kyprianou and other political party leaders.

Speaking to reporters after two hours of talks with Mr. Kasoulides, Mr. Papandreou said Greece and Cyprus would soon formulate and later sign a memorandum of cooperation to set out the specific steps which would facilitate Nicosia's accession negotiatio ns with the EU.

Mr. Papandreou said Cyprus' accession would result in major benefits, not only for the island republic but also for the EU and Turkey, and criticised Ankara for its opposition to the participation of Turkish Cypriots in accession negotiations.

"Cyprus' accession prospects gives the Turkish Cypriots the guarantees which they presently lack because of Ankara's intransigence," Mr. Papandreou said, stressing that Cyprus, in close cooperation with Greece, would become a full member of the EU irres pective of whether the island's political problem had been resolved.

He noted however a number of "technical" problems in the path of Cyprus' accession and said Athens and Nicosia were working closely on a regular basis to overcome them.

Replying to reporters' questions, Mr. Papandreou said Athens and Nicosia would like to see a specific EU initiative on the Cyprus problem "since the Community can play an important role in resolving the issue".

On the decision by President Clerides not to install the Russian S-300 anti- aircraft missiles on the island republic, Mr. Kasoulides said "if it were not for the prospect of Cyprus' accession to the EU and Greece joining EMU, the S-300s would already be on Cyprus."

Mr. Papandreou said the Greece-Cyprus joint defence doctrine was "in operation and will develop further" and reiterated Greek support for Cyprus in the face of Turkish provocations. Meeting with Clerides: He later pointed out after his meeting with Mr. Clerides that Cyprus' EU accession process provides the preconditions for a settlement of the Cyprus question. The Greek minister also stressed that "a solution to the Cyprus problem cannot be a precondition for Cyprus' European course."

He said the message to Turkey and the Turkish Cypriots is that "now they are given the opportunity to participate in accession talks but Cyprus will not halt this process, nor can any other power stop Cyprus from this course."

"The choice is theirs. Either they join in this process at the negotiating table or stay out of it. We hope they take the first option," he added.

Last year, the Turkish Cypriot pseudo-regime in Turkish occupied Cyprus turned down an invitation from Mr. Clerides to nominate their representatives, who would join the Cypriot team negotiating the country's accession with the EU. The EU at the time de scribed his invitation as "fair and generous".

This, he stressed, would be the base "on which a solution to the Cyprus problem will be found".

Mr. Papandreou also met with the Primate of the Greek Orthodox Church of Cyprus, Archbishop Chrysostomos.

Mr. Papandreou later met with left-wing AKEL party secretary general Dimitris Christofias, ruling DHSY party president Nicos Anastasiades and George Christofides, representative of the United Democrats party.

Athens News Agency

[07] Greece to send aid to quake-stricken Colombia

Athens expressed its support to the Bogota government and the people of Colombia, who are still reeling from the recent catastrophic quake.

The ministry has decided to send medical and other aid to the devastated areas through various Greek non-governmental organisations.

Athens News Agency

[08] Gov't pleased with UNESCO initiative over Parthenon Marbles

The decision by UNESCO's cultural heritage protection committee also called for UNESCO's general director to closely monitor the matter.

Athens News Agency

[09] Advertising in the Daily Bulletin

Advertisements will be accepted from embassies, banks, commercial and maritime companies, chambers of commerce, advertising companies, airlines, organisations, professional associations, educational and research institutions in Greece and abroad as well as international bodies.

Also, for a small fee, the above groups may channel their Press Releases (PRs), announcements or photographs - in Greek, English or French - to the ANA's more than 100 media subscribers throughout Greece and Cyprus via the recently introduced ANA on-line PR's service.

For details on and arrangements for the advertising and/or PRs on-line service, please contact the ANA Marketing Department, tel: 6400580, fax: 6400024 between 10:00 a.m. and 2:30 p.m.

Athens News Agency

[10] DNA testing of murdered US national's body ordered

One-time model Julie Mary Scully, 31, was strangled and cut into pieces by her fiance three weeks ago. Twenty-four-year-old junior cruiseship officer Georgios Skiadopoulos subsequently confessed to the New Jersey resident's killing.

Authorities said they believed that the victim's severed head was more than likely carried away into the open sea.

Meanwhile, a Kavala prosecutor stated that a DNA test to determine that the body does belong to Scully will also be performed by a coroner's office.

Skiadopoulos' legal defence is preparing his court statement on the filed charges, which will be submitted to a Kavala magistrate. It is very likely that lawyers, along with the man's family, will request a psychological examination.

He claimed to have murdered the woman for fear that she might leave him after returning to the United States.

Athens News Agency

[11] Tax bureau warns of stricter controls in '99

Among others, targets are self-employed professionals, the trafficking of goods, fuel, night clubs and alcohol.

It was stressed that controls with notary publics will continue, while controls for doctors will be expanded and similar controls will be carried out for lawyers.

The larger night clubs will have a separate file, with each file containing information on both the income of performers and owners, while exporters and importers of alcohol will also be more closely monitored.

Controls will also be conducted for fuel vendors, quarries, workshops, trucks, buses and cultivations.

Athens News Agency

[12] Management tender for OA expected on Sunday

According to sources, British Airways, Lufthansa and an unnamed US operator have already expressed interest in taking over the national carrier's management.

Salomon Smith Barney and domestic National Investment Bank for Industrial Development will evaluate the bids.

Meanwhile, Airbus Industrie delivered two Airbus A340-300 aircraft to Olympic Airways in Toulouse yesterday.

The two aircraft will replace two old Boeing 747-200s.

The new aircraft have a capacity of 295 passengers. Their range is 13,200 km at a maximum speed of 875 km per hour.

Athens News Agency

[13] National Bank gets shareholders' OK for stock split

The bank's governor, Theodore Karatzas, said the decision to carry out a stock split was taken because of a spectacular rise in the company's share price, currently at 78,000 drachmas, which barred small and medium-sized retail investors from buying int o the stock.

Mr. Karatzas said the stock split would also help to improve trading volume in the stock market.

Management also proposed paying a dividend of 1,300 drachmas for 1998 per current share.

The bank's net pre-tax net profit rose 103 percent to 130 billion drachmas in 1998 from 64 billion the previous year.

Last year's figure includes Mortgage Bank's profits, a subsidiary of National Bank of Greece that merged with the parent company.

The group's profits before provisions and tax increased by 19 percent to 241 billion drachmas last year, up 19 percent against 1997.

The improved profitability prompted management to recommend to raising provisions to 57.5 billion drachmas.

Athens News Agency

[14] Stocks again post new high in heavy turnover

The general index ended 1.80 percent higher at 3,149.50 points, its seventh record close in 1999. The index ended the week 5.48 percent up.

Turnover was 133.133 billion drachmas. The week's daily average turnover totalled 112.8 billion, up from 100.5 billion the previous week. Yesterday's volume was 20,350,000 shares.

Traders said banks were the centre of attention for foreign institutional investors, who remained active buyers.

Sector indices were mixed.

Banks soared 2.26 percent, Leasing fell 0.86 percent, Insurance jumped 5.45 percent, Investment eased 1.11 percent, Construction increased 0.04 percent, Industrials rose 1.63 percent, Miscellaneous ended 0.40 percent down and Holding 0.31 percent up.

The parallel market index for small cap companies fell 1.58 percent, while the FTSE/ASE 20 index ended 2.03 percent up at 2,001.65.

Broadly, advancers led decliners by 155 to 113 with another 22 issues unchanged.

Hellenic Telecoms, Ideal, Panafon and Eskimo were the most heavily traded stocks.

Panafon, ETEVA, Xifias, Alysida, National Insurance, Aspis Invest, Papoutsanis, Ideal, Mohlos and Hellenic Bottling hit the daily 8.0 percent limit up.

Anek Lines, Technodomi, Macedonian Mills, Vis, Kyriakoulis Yachts, Viosol, Levenderis and Tzirakian suffered the heaviest losses.

National Bank of Greece ended at 78,000 drachmas, Alpha Credit Bank at 32, 995, Ergobank at 38,105, Ionian Bank at 16,000, Titan Cement at 23,390, Hellenic Petroleum at 2,300, Intracom at 15,470, Minoan Lines at 7,400, Panafon at 8,966 and Hellenic Telec oms at 8,505.

Athens News Agency

[15] Greece to auction 12-month treasury bills, savings bonds

The ministry said in a statement that bids will be submitted through the central bank's secondary bond market electronic trading system.

Commission is 0.45 percent for primary dealers.

In addition, savings bonds for retail investors will be issued on February 5 and February 8.

The ministry gave no further details of the bonds, which are tax-free if held until maturity.

Athens News Agency

[16] Air Greece to launch new service to Italy

The private airline's flights will depart from Athens every Monday, Wednesday and Friday at 10.00 am.

"Air Greece believes that the benefits of the new service will be numerous, not only for tourism and commerce but also from a cultural point of view," the airline said in a statement.

Athens News Agency

[17] Minister presents Greek economy to Swiss investors

The presentation in Zurich was arranged by Credit Suisse First Boston, and Mr. Christodoulakis was the main speaker.

Attending were institutional investors and the representatives of investment houses with a special interest in Greek bonds.

Among the members of the Greek delegation was the director of the central bank director, Spyros Papanikolaou.

Athens News Agency

[18] Athens bourse seen rising in mid-term

In a report on the market's performance in January, the bank said that turnover in that month was a provisional 1,874,898,000,000 drachmas, up 7.20 percent from 1,749,078,000,000 drachmas in December.

January's turnover was 551 percent higher than the same month in 1998 when it totalled 288,062,000,000 drachmas.

Athens News Agency

[19] Singular software posts 60 pct rise in revenue

Revenue rose to 2.1 billion drachmas from 1.35 billion in the same period of 1997.

The company's profits rose 50 percent to 300 million drachmas, up from 200 million.

The group's income totalled 2.7 billion, up 67 percent from last year's 1.67 billion, while profits rose 68 percent to 388 million drachmas.

Singular attributed the spectacular improvement in its results to higher sales by Singular Enterprise, the first ever Greek information system aimed to make optimum use of operational resources.

Athens News Agency

[20] Greece to join Expo 2000 in Germany

The national economy ministry's secretary-general, Stephanos Avgouleas, signed a contract with EXPO 2000's general commissioner, Birgit Breuel, in the German city on Thursday.

The exhibition's main theme is "People-Nature-Technology". Already 186 countries have confirmed participation in the exhibition which opens in June 2000.

Athens News Agency

[21] Bank of Greece restrictions on consumer loans

The new framework will oblige banks to observe higher provisions in the event they possess consumer loans in their portfolio which are not being served properly. At the same time, the Bank of Greece proposes to banks to show particular attention while e xamining applications for loans.

According to the new framework, to which banks will have to be harmonised by June 30, 1999, the provisions they have to create will be set as percentages on the balances of loans.

The amount of provisions can be adjusted either way after the interested bank reaches an understanding with the relevant agencies of the Bank of Greece.

These decisions are part of the harmonisation of the Greek banking system with factors created by the single currency and the strengthening of their economic position.

Athens News Agency

[22] M3 rises

The increase reported in comparison to the previous month, when it rose 5.6 per cent, was due to an increase in repos.

Deposits also rose 1.374 trillion drachmas in December. Greek economy presented to Swiss investors A comprehensive presentation of the Greek economy for Swiss investors was held in Zurich yesterday at an event organised by the Credit Suisse First Boston Bank, and with Deputy Finance Minister Nikos Christodoulakis as the main speaker.

The presentation, where special reference was made to developments in Greece's bonds market, was attended by several major institutional investors and representatives of financial firms that are interested in investing in Greek bonds. As of yesterday, negotiation of all shares of the Fisheries of Western Greece-Riopesca company were stopped, due to a merger through absorption by Selonda Fisheries.

Athens News Agency

[23] Nationwide numbers for private Internet providers

FORTHnet was given EPAK 0965-88888 and HELLAS ON LINE 0965-77777.

The first EPAK to be given was to OTE's subsidiary, OTEnet: 0965-55555.

This service is provided for companies which are active in Greece for Internet access.

Athens News Agency

[24] Athens Foreign Exchange

Banknotes           Buying   Selling
US Dollar           279.218  285.692
Can.Dollar          184.334  188.607
Australian Dlr      175.951  180.031
Pound Sterling      460.169  470.838
Irish Punt          404.527  413.906
Pound Cyprus        548.834  561.559
Pound Malta         692.361  721.209
Turkish pound (100)   0.073    0.076
French franc         48.569   49.695
Swiss franc         197.388  201.965
Belgian franc         7.898    8.081
German Mark         162.893  166.670
Finnish Mark         53.583   54.825
Dutch Guilder       144.570  147.922
Danish Kr.           42.805   43.797
Swedish Kr.          35.875   36.707
Norwegian Kr.        37.073   37.933
Austrian Sh.         23.153   23.690
Italian lira (100)   16.454   16.836
Yen (100)           240.064  245.630
Spanish Peseta        1.915    1.959
Port. Escudo          1.589    1.626

Foreign Exchange    Buying    Selling
New York            279.218   285.692
Montreal            184.334   188.607
Sydney              175.951   180.031
London              460.169   470.838
Dublin              404.527   413.906
Nicosia             548.834   561.559
Paris                48.569    49.695
Zurich              197.388   201.965
Brussels              7.898     8.081
Frankfurt           162.893   166.670
Helsinki             53.583    54.825
Amsterdam           144.570   147.922
Copenhagen           42.805    43.797
Stockholm            35.875    36.707
Oslo                 37.073    37.933
Vienna               23.153    23.690
Milan                16.454    16.836
Tokyo               240.064   245.630
Madrid                1.915     1.959
Lisbon                1.589     1.626

Athens News Agency

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