Athens News Agency: Daily News Bulletin in English, 99-07-29

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

CONTENTS

[01] New policy on immigration unveiled after Cabinet meeting

[02] Central bank slaps curbs on banks for rampant consumer loans

[03] Interamerican, Portuguese bank in joint venture

[04] Banks launch pilot 35-hour week

[05] Stocks slump in profit taking

[06] Bonds nose down in negligible trade

[07] Ergobank posts 60.45 pct profit jump in H1

[08] Athens Foreign Exchange

[09] G. Papandreou: Greek-Turkish talks so far 'positive'

[10] Avramopoulos concludes contacts with Israeli leadership

[11] Headstones desecrated at Greek cemetery in Istanbul

[12] Talks over 'crisis handling centre' for SE Europe held in Athens

[13] Two more Russian vessels arrive in Thessaloniki

[01] New policy on immigration unveiled after Cabinet meeting

Athens, 29/07/1999 (ANA)

In statements afterwards, Interior Minister Vasso Papandreou said the latest policy will involve improved guarding of the country's borders to prevent the entry of even more illegal immigrants.

She added that measures taken recently to increase border security were already paying off and would be continued at an even greater pace. Underlining the need for entry into the country to be controlled, Ms Papandreou said this would gradually be achie ved through bilateral agreements between Balkan countries; employment agencies expected to be set up in Balkan capitals and within the framework of the Stability Pact for the region - something being discussed at present by the European Union.

As the government said, the new immigration policy will comprise a "two- speed" system in which seasonal foreign labourers will be allowed to stay in the country for only a short period of time and for a specific task, mainly in the agricultural and tourism sectors.

Ms Papandreou noted, however, that there will also be other non-EU workers who will be permitted to stay in the country for longer periods.

The minister said measures must be taken to assimilate foreigners in Greek society so that their obligations and rights are recognised and that they are treated on the basis of equality.

She said this was the only way to secure a labour market which was competitive rather than a "black" labour market.

Measures will also be taken to unite families and facilitate their entry to Greek society for, as Ms Papandreou said, "we shall be dealing with the issue of immigration for many years to come".

Ms Papandreou said the Cabinet decided that all illegal immigrants presently in the country would be registered by all municipalities and communities in cooperation with police.

She clarified, however, that this did mean all these illegal immigrants would be granted residence and work permits.

"We will decide on a case by case basis which of these immigrants will be given a 'green card'," she said.

Ms Papandreou said the registration of all illegal immigrants would begin at the earliest, as soon as the necessary forms and questionnaires had been prepared.

On his part, Government spokesman Dimitris Reppas said that the government was considering changes in legislation on immigration and the granting of Greek citizenship. In addition, he said, the government intends to undertake an initiative for a common policy on granting legal status to economic refugees. Mr. Reppas said Greece would raise the issue at the EU summit in Finland in December.

Describing immigration legislation in force as "inadequate" and "outdated", he said it was very difficult to formulate a comprehensive immigration policy.

He cited the case of France, where the government tried three or four times unsuccessfully to put such a policy together.

Mr. Reppas said talks had already begun among the jointly competent ministers to determine the main principles of the immigration bill.

Before the bill is drafted, he added, Ms Papandreou will discuss the matter with opposition parties in order to secure the greatest possible consensus.

Commenting on the registration of all illegal immigrants in the country, he said economic refugees who had not applied for or been granted legal status and who register in the new "census" would not be deported.

Opposition : Commenting on the developments, main opposition New Democracy (ND) party spokesman Aris Spiliotopoulos said that "the interior minister was restricted to generalities, which even when they materialise, will fail to lead to a solution of the illegal immigr ation problem unless they are combined with a radical restructuring of police."

"Despite the bombastic announcements over a joint approach on the huge issue of illegal immigration and crime, the government, unfortunately, confirmed its typical lack of political will," Mr. Spiliotopoulos charged.

On the same issue, the Coalition of the Left and Progress (Synaspismos) noted that "the government should directly give the economic immigrants a 'second chance' at legalisation, as it has already been recommended by Synaspismos in the past..."

Finally, Liberals party leader Stephanos Manos said "the measures announced by the government, though with a delay, "are in the right direction."

Athens News Agency

[02] Central bank slaps curbs on banks for rampant consumer loans

Athens, 29/07/1999 (ANA)

Under the measures, commercial banks that overstep ceilings on the growth of consumer loans will have to deposit an amount double the excess at the central bank for six months, receiving no interest.

An acceleration in consumer credit triggered the second round of curbs after the first round in April failed to rein in commercial banks, jeopardising the government's bid to achieve price stability.

In June, consumer loans jumped by 46.4 percent in absolute terms against the same month of 1998. The total drops to 36.4 percent if seasonal factors affecting demand are taken out of the calculation, which central bank officials still see as worryingly high.

Bank of Greece governor Lucas Papademos said the new penalties aimed to contain overall credit expansion to a 12 percent annualised rate of growth, in line with inflation targets.

Also as part of the battle to bring down stubborn inflation, the central bank will refrain from lowering its intervention rates in the near future, Mr. Papademos said.

The original curbs on credit in place from April to December 1999 were on commercial bank loans to the private sector and a group of state enterprises that exceeded the 12 percent growth target.

Rising loans have endangered price stability and therefore the country's entry into the euro zone by the target date of January 1, 2001 that involves meeting a tough inflation target.

Since introduction of the original measures, the rate of growth in consumer loans has remained high although other sectors have shown a decline.

In April to June, consumer loans rose by 8.7 percent while consumer loans plus lending to domestic commerce and exports rose by 5.0 percent against a target of 3.5 percent.

Inflation has also been hit by rising oil prices in world markets, and a formerly rising dollar against the euro.

Athens News Agency

[03] Interamerican, Portuguese bank in joint venture

Athens, 29/07/1999 (ANA)

The bank will target middle income customers, offering integrated services focusing on telephone and Internet services.

BCP is listed on the Lisbon, New York, London and Frankfurt stock exchanges and has a market capitalisation equal to 1.7 trillion drachmas.

Interamerican is newly listed on the Athens Stock Exchange. It sees consolidated turnover of 110 billion drachmas this year, up 21 percent on 1998. Consolidated pre-tax profits are forecast at 23 billion drachmas, up 90 percent on 1998.

Athens News Agency

[04] Banks launch pilot 35-hour week

Athens, 29/07/1999 (ANA)

Among the banks taking part in the scheme are National Bank of Greece, Alpha Credit Bank and Citibank with one branch each.

Athens News Agency

[05] Stocks slump in profit taking

Athens, 29/07/1999 (ANA)

The general index ended 0.76 percent lower at 4,392.24 points from 4,425.4 points a day earlier.

Turnover was 164.1 billion drachmas from 217.5 billion drachmas in the previous session.

Players stayed away from blue chips, instead focusing on small and medium capitalisation stocks.

Sector indices ended as follows: Banks (-1.36 pct), Leasing (+6.58 pct), Insurance (-0.05 pct), Investment (-1.45 pct), Construction (+0.88 pct), Industrials (-0.71 pct), Miscellaneous (+0.94 pct) and Holding (-0.49 pct). The parallel market index fo r smaller capitalisation stocks ended 1.43 percent higher.

The FTSE/ASE 20 index for heavily traded stocks and blue chips dropped 1.14 percent to finish at 2,543.89 points.

Of 297 shares traded, declines outpaced advances at 141 to 140 with 16 issues unchanged.

National Bank of Greece ended at 21,500 drachmas, Alpha Credit Bank at 21, 140, Bank of Piraeus at 8,700, Ergobank at 34,730, Titan Cement (commom) at 30,190, Hellenic Petroleum at 2,850 and Intracom (common) at 20,900 drachmas.

Athens News Agency

[06] Bonds nose down in negligible trade

Athens, 29/07/1999 (ANA)

Electronic trade totalled 2.0 billion drachmas from 17 billion drachmas in the previous session and 22 billion drachmas on Monday.

The benchmark 10 year bond showed a yield of 6.39 percent, the same as the day before, from 6.43 percent on Monday.

The yield spread above German bunds fluctuated between 173 and 175 basis points from 173 basis points a day earlier and 175 basis points on Monday.

At the central bank's daily fix, the euro nosed down against the drachma. It was set at 324.900 drachmas from 324.940 drachmas in the previous session.

The central bank intervened to prop up the European Union's currency, absorbing around 125 billion drachmas.

The dollar rose versus the drachma at the fix, reflecting its ascent against the euro in markets abroad.

The greenback was set at 306.600 drachmas from 306.170 drachmas a day earlier.

On Monday, the US currency in the domestic market had lost more than 15 drachmas in a week.

Athens News Agency

[07] Ergobank posts 60.45 pct profit jump in H1

Athens, 29/07/1999 (ANA)

The bank said in a statement that the sharp increase in profits was due to a rise in banking operations and not to share transactions.

Athens News Agency

[08] Athens Foreign Exchange

Athens, 29/07/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             304.147 311.199
Can.Dollar            200.781 205.436
Australian Dlr        195.801 200.341
Pound Sterling        482.568 493.757
Irish Punt            409.238 418.726
Pound Cyprus          558.159 571.100
Pound Malta           708.688 738.217
Turkish pound (100)     0.063   0.066
French franc           49.135  50.274
Swiss franc           201.654 206.329
Belgian franc           7.990   8.175
German Mark           164.790 168.611
Finnish Mark           54.207  55.464
Dutch Guilder         146.254 149.644
Danish Kr.             43.301  44.305
Swedish Kr.            36.593  37.441
Norwegian Kr.          38.638  39.534
Austrian Sh.           23.422  23.965
Italian lira (100)     16.646  17.032
Yen (100)             262.235 268.315
Spanish Peseta          1.937   1.982
Port. Escudo            1.608   1.645

Foreign Exchange      Buying  Selling
New York              304.147 311.199
Montreal              200.781 205.436
Sydney                195.801 200.341
London                482.568 493.757
Dublin                409.238 418.726
Nicosia               558.159 571.100
Paris                  49.135  50.274
Zurich                201.654 206.329
Brussels                7.990   8.175
Frankfurt             164.790 168.611
Helsinki               54.207  55.464
Amsterdam             146.254 149.644
Copenhagen             43.301  44.305
Stockholm              36.593  37.441
Oslo                   38.638  39.534
Vienna                 23.422  23.965
Milan                  16.646  17.032
Tokyo                 262.235 268.315
Madrid                  1.937   1.982
Lisbon                  1.608   1.645

Athens News Agency

[09] G. Papandreou: Greek-Turkish talks so far 'positive'

Athens, 29/07/1999 (ANA)

Mr. Papandreou, speaking from the island of Corfu, avoided detailing any conclusions reached at the first session of dialogue at an ambassadors' level in Ankara. He said dialogue will be continued, adding that the process has been constructive so far a nd that the climate is positive.

Replying to questions, Mr. Papandreou said proposals for cooperation were made during talks between the two delegations, not only at a governmental level, but also at the level of entrepreneurs and non-governmental organisations.

Referring to the outcome of the meeting organised on Corfu with the participation of several ministers and diplomats from all the Balkans, Mr. Papandreou said the issue of minorities was discussed at length. The Greek FM said a constructive way exists for these issues to be solved, namely, minorities should be handled equally with other citizens, they should feel members of the society in which they live and participate democratically in developments.

Turkish response : Meanwhile, according to a Reuters dispatch from Ankara, the Turkish government welcomed the start of talks with Greece, citing "positive messages" from Athens.

"Positive messages have started to come from Greece, which up to now had not even used the word 'dialogue' with Turkey. A tendency to seek dialogue can now be seen in Greece. We see this as a pleasing development," Turkish PM Bulent Ecevit told his deputies in Turkey's parliament. The semi- official Anatolian news agency quoted Foreign Minister Ismail Cem as saying "the first round of Turkish-Greek talks went well."

Athens News Agency

[10] Avramopoulos concludes contacts with Israeli leadership

JERUSALEM, 29/07/1999 (ANA - A. Panagopoulos)

Earlier, Mr. Avramopoulos met with Israeli President Ezer Weizman and was briefed on developments in Mideast peace process, as well as on talks between Israeli PM Ehud Barak and Palestinian leader Yasser Arafat.

Despite the fact that problems were encountered during Tuesday night's meeting between Mr. Barak and Mr. Arafat, the Israeli president reportedly told Mr. Avramopoulos that "where things have reached now, no side can pull back."

Mr. Avramopoulos said the target of his contacts, both with local administration representatives and Israel's state and political leadership, is to strengthen relations between the two countries and peoples. He also met with Israeli Parliament President Abraham Berg and watched part of a debate in the Knesset, Israel's Parliament.

Mr. Avramopoulos said Mr. Berg supports efforts to strengthen the role of cities at the level of international cooperation, something promoted by the municipality of Athens.

He also met the mayor of Jerusalem Ehud Olmert and discussed events to take place in 2000, while both men agreed to have a cooperation protocol signed on issues concerning culture, sports, etc.

Lastly, Mr. Avramopoulos' meeting with Mr. Arafat, scheduled to take place yesterday afternoon, did not occur since, as it was stated, the Palestinian leader was in Gaza due to talks over the Middle East issue.

Mr. Avramopoulos will return to Athens today and, as he noted, will brief the government and political parties on his talks in Israel.

Athens News Agency

[11] Headstones desecrated at Greek cemetery in Istanbul

ISTANBUL, 29/07/1999 (ANA - A. Kourkoulas)

The Turkish foreign ministry said the incident occurred on the night of July 26, adding that "every possible effort will be made to find the perpetrators of these actions and to bring them before justice."

"Wherever such bad actions occur, we condemn them," an announcement read.

In response, the Greek foreign ministry announced that it sternly condemns the recent destruction of the tombstones.

"It is an unacceptable event which should be tackled effectively by the Turkish authorities," a spokesman said, announcing that Greece's general consul in Istanbul was due to make a strong protest to the city's prefect yesterday.

Athens News Agency

[12] Talks over 'crisis handling centre' for SE Europe held in Athens

Athens, 29/07/1999 (ANA)

The meeting was attended by the national defence general staff deputy chiefs of Albania, Bulgaria, the Former Yugoslav Republic of Macedonia and Slovenia, as well as representataives from the US, Italy, Romania and Turkey.

The decision to create both the crisis centre and the construction unit was taken during a meeting of deputy defence ministers from countries in SE Europe in Sofia on May 25.

Athens News Agency

[13] Two more Russian vessels arrive in Thessaloniki

Athens, 29/07/1999 (ANA)

Another two vessels were expected to dock later in the day.

A total of 400 troops and 130 military vehicles will be unloaded with this second dispatch. The first Russian dispatch brought 450 troops and 130 vehicles about two weeks ago.

Also expected in Thessaloniki yesterday were two vessels bringing mililtary equipment and vehicles for the 450 soldiers of the United Arab Emirates, who arrived in the city by air on Tuesday.

Athens News Agency

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