Athens News Agency: Daily News Bulletin in English, 99-09-30

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

CONTENTS

[01] Greek economy and markets resilient, Papantoniou tells IMF

[02] Parl't approves part-float for Athens water board

[03] Stocks end flat in jittery trade

[04] Bonds end flat in thin trade, drachma under pressure

[05] Greece first to give EU regional development plan

[06] Lambrakis buys stake in Odeon

[07] Corporate quake donors freed from VAT on goods

[08] Rise in petrol prices

[09] Athens Foreign Exchange

[10] EU, Balkans and relations with Turkey the emphasis of upcoming Schroeder visit

[11] Tsohatzopoulos: Border changes due to minorities will mean dissolution of the Balkans

[12] Tsohatzopoulos: Balkan states must demand end to ethnic cleansing of Serbs in Kosovo

[13] Gov't: time is now right for Ankara to help solve Cyprus issue

[14] Prodi-Karamanlis meeting on Greece's EMU prospects

[15] PM lauds contributions of political theorist Poulantzas at conference opening

[01] Greek economy and markets resilient, Papantoniou tells IMF

WASHINGTON, 30/09/1999 (ANA/A.Ellis)

He said that a policy combining stability and structural reform had prepared the ground for Greece's entry into the EU's economic and monetary union, expected on January 1, 2001.

"Economic reform together with substantial public infrastructure investment partly financed by the EU led to a substantial acceleration of real growth.

"In fact, 1999 will be the sixth consecutive year of substantial growth while in the past three years growth rates reached 3.5 percent, significantly higher than the EU average," the minister said.

He added that Greece, which originally had been lagging in modernisation, could serve as a model to illustrate the benefits that arise from sound macroeconomic policies and a positive attitude towards reform. The government had lowered the general gover nment deficit to 1.5 percent of gross domestic product in 1999 and 2.5 percent of GDP in 1998 from 13.8 percent of GDP in 1993, Mr. Papantoniou said.

"This is a reduction of over 12 percentage points of GDP and is almost three times as big as the improvement registered in the rest of the European Union."

A counter-inflationary incomes policy pursued in the public sector and greater competition in fields such as transport and telecoms coupled with a reduction in inflation expectations had led to a drastic cut in the annual rate of inflation.

Consumer price inflation had dropped to 2.0 percent in August against an average annual rate of inflation of 14.4 percent in 1993, the minister said.

Set to boost the economy further were the 2004 Olympic Games to be hosted by Athens and the development of the northern port city of Thessaloniki into a centre for southeastern Europe.

Mr. Papantoniou forecast a GDP growth rate of 3.7 percent in 2000 and more than 4.0 percent in 2001.

Short-term rates need to drop : Mr. Papantoniou told Bloomberg in an interview that Greece's short-term rates, currently at high levels, needed to fall in 2000 in order to match the European average.

If monetary policy slackened now, a rise in demand could result, in turn fuelling a long-term inflationary spiral, he said. Fiscal policy should therefore remain tight in 2000-2001 in order to absorb the impact of any monetary easing next year, the mi nister added.

Athens News Agency

[02] Parl't approves part-float for Athens water board

Athens, 30/09/1999 (ANA)

The government wants to float up to 49 percent of EYDAP on the bourse, while a majority 51 percent of shares would remain under state control.

The part-privatisation is part of a policy of shrinking the public sector and reducing the government's presence in business, mainly through part- listings on the bourse.

Among corporations to have followed the same route are Hellenic Petroleum and Hellenic Telecommunications Organisation, both heavily traded stocks.

Voting in favour of the article for EYDAP's privatisation were 51 deputies with 41 against and eight absent in a roll call vote sought by the New Democracy party, Democratic Social Movement and Coalition of the Left and Progress.

Independent deputy Vassilis Kontoyiannopoulos voted in favour of the bill.

Athens News Agency

[03] Stocks end flat in jittery trade

Athens, 30/09/1999 (ANA)

The general index ended 0.10 percent higher at 5,596.84 points from 5, 591.28 points a day earlier, showing minor signs of consolidation after a jump in early trade followed by a decline.

Turnover dropped to 370.259 billion drachmas from 430 billion drachmas in the previous session with 38,667,000 shares changing hands.

The market was seeking to consolidate around 5,600 points, analysts said, declining to forecast the short-term outlook for equities after more than a week of abrupt shifts.

Sector indices ended as follows: Banking (-0.81 pct), Insurance (+0.53 pct), Construction (+1.40 pct), Miscellaneous (+2.53 pct), Leasing (+5.30 pct), Investment (-1.17 pct), Industrials (+0.29 pct) and Holding (+2.90 pct).

The parallel market index for smaller capitalisation stocks dropped 1.64 percent while the FTSE/ASE 20 index for blue chips and heavily traded stocks dropped 0.32 percent to finish at 2,981.15 points.

Of 309 stocks traded, advances outpaced declines at 168 to 138 with three shares remaining unchanged.

A total of 39 shares ended at the daily 8.0 percent upper volatility limit and another 19 ended at the daily limit down, which is also 8.0 percent.

The day's most heavily traded stocks were newly listed Hyatt Regency Thessaloniki and Halyvdofyllon.

In its third day of trade on the main market of the Athens bourse, Hyatt Regency Thessaloniki gained 15.6 percent.

National Bank of Greece ended at 25,205 drachmas, Commercial Bank of Greece at 28,990, Alpha Credit Bank at 24,500, Minoan Lines at 7,595, Intracom (common) at 26,400, Titan Cement (common) at 36,000, Hellenic Petroleum at 6,220, Hellenic Telecommunications Organisation at 7,000 and Panafon at 8, 400 drachmas.

Athens News Agency

[04] Bonds end flat in thin trade, drachma under pressure

Athens, 30/09/1999 (ANA)

Electronic trade totalled 8.0 billion drachmas, the same as a day earlier, from 1.0 billion drachmas and 39 billion drachmas in the two sessions before.

Of yesterday's turnover, sell orders accounted for 5.0 billion drachmas of the total.

The benchmark 10-year bond, which was still trading below par, showed a yield of 6.67 percent from 6.62 percent in the two previous sessions.

The 10-year paper's yield spread over German bunds was 158 basis points, the same as a day earlier, from 159 basis points on Monday.

Central bank steps in to nudge up drachma : In the foreign exchange market, the drachma again was ruffled against the euro in sales of the national currency traders said were linked to a recent slump on the Athens Stock Exchange and institutional investors abroad closing their positions.

The Bank of Greece intervened in the market to push up the drachma, selling 80 million euros when the European currency hit 329 drachmas.

It had sold around 120 million euros on Monday and around 300 million euros in the final three sessions of last week, dealers said.

At the central bank's daily fix, the euro rose against the drachma.

The European currency was set at 328.320 drachmas from 327.900 drachmas in the previous session and 328.000 drachmas on Monday.

The dollar dropped versus the drachma.

At the fix, it was set at 311.290 drachmas from 312.880 drachmas a day earlier and 313.890 drachmas on Monday.

Athens News Agency

[05] Greece first to give EU regional development plan

Athens, 30/09/1999 (ANA)

The country is to receive 17 trillion drachmas in funding through the Third CSF, whose duration is 2000-2006.

Athens News Agency

[06] Lambrakis buys stake in Odeon

Athens, 30/09/1999 (ANA)

Among Odeon's clients are 20th Century Fox, Universal and Paramount.

The company also operates a chain of cinemas around the country.

Athens News Agency

[07] Corporate quake donors freed from VAT on goods

Athens, 30/09/1999 (ANA)

The move was ordained by Deputy Finance Minister George Drys.

Athens News Agency

[08] Rise in petrol prices

Athens, 30/09/1999 (ANA)

In the Attica region and the Thessaloniki prefecture, super gasoline will cost 225.10 drachmas per litre and unleaded 209.30 drachmas per litre.

Athens News Agency

[09] Athens Foreign Exchange

Athens, 30/09/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             308.800 315.959
Can.Dollar            210.998 215.890
Australian Dlr        202.239 206.928
Pound Sterling        508.301 520.086
Irish Punt            413.545 423.133
Pound Cyprus          562.821 575.870
Pound Malta           723.998 754.165
Turkish pound (100)     0.061   0.064
French franc           49.652  50.803
Swiss franc           203.653 208.374
Belgian franc           8.074   8.261
German Mark           166.524 170.385
Finnish Mark           54.777  56.047
Dutch Guilder         147.793 151.220
Danish Kr.             43.823  44.839
Swedish Kr.            37.571  38.442
Norwegian Kr.          39.698  40.618
Austrian Sh.           23.669  24.218
Italian lira (100)     16.820  17.210
Yen (100)             288.652 295.345
Spanish Peseta          1.957   2.003
Port. Escudo            1.625   1.663

Foreign Exchange      Buying  Selling
New York              308.800 315.959
Montreal              210.998 215.890
Sydney                202.239 206.928
London                508.301 520.086
Dublin                413.545 423.133
Nicosia               562.821 575.870
Paris                  49.652  50.803
Zurich                203.653 208.374
Brussels                8.074   8.261
Frankfurt             166.524 170.385
Helsinki               54.777  56.047
Amsterdam             147.793 151.220
Copenhagen             43.823  44.839
Stockholm              37.571  38.442
Oslo                   39.698  40.618
Vienna                 23.669  24.218
Milan                  16.820  17.210
Tokyo                 288.652 295.345
Madrid                  1.957   2.003
Lisbon                  1.625   1.663

Athens News Agency

[10] EU, Balkans and relations with Turkey the emphasis of upcoming Schroeder visit

BERLIN, 30/09/1999 (ANA - P. Stangos)

Mr. Schroeder's visit will focus primarily on three axes.

Firstly, European policy issues including, according to reports, promotion of institutional reforms in the European Union - where Greece and Germany have diverging views - and the prospect of Greece's participation in the euro zone as of Jan. 1, 2001.

Secondly, stabilisation in the Balkans after the Kosovo crisis through the Stability Pact and the European prospects of countries in the region.

Finally, Greek-Turkish relations and the Cyprus issue, given the German chancellor's commitment for Turkey to be granted candidate status for EU accession at the Helsinki summit in December.

An official announcement issued earlier by the Chancellery said on this point that in talks between Mr. Schroeder and Mr. Simitis "Gre-ece's improved relations with Turkey will also play a role."

The spokeswoman added that "the German government hopes that the further building and deepening of these relations (between Greece and Turkey) will become possible."

Mr. Schroeder will arrive in Athens late on Monday afternoon. Talks with Mr. Simitis will follow immediately afterwards, followed by a brief meeting with the press. At 9 p.m., Mr. Simitis and Mr. Schroeder will jointly participate in the event marking the 75th anniversary of the Greek-German Chamber of Commerce. Mr. Schroeder will meet President Kostis Stephanopoulos next morning before returning to Germany.

Athens News Agency

[11] Tsohatzopoulos: Border changes due to minorities will mean dissolution of the Balkans

Athens, 30/09/1999 (ANA)

He also cited a lack of money and administrative infrastructure for implementation of the Stability Pact.

The Greek minister made the remarks after meeting the UN Secretary General's representative in Kosovo, Bernard Kouchner, at the head of the European Socialist Party (ESP) delegation which sought to be briefed on efforts to normalise the situation in the troubled Yugoslav province.

Questioned by reporters, Mr. Tsohatzopoulos said that during talks with the US secretary of defense and other officials from the White House's National Security Council, he had never heard any open support for the province's independence.

"On the contrary, there was agreement with the Greek position that there could be no policy other than self-administration within the borders of Yugoslavia, totally rejecting independence. A change in borders and the independence of regions due to the e xistence of particular minorities will signal the dissolution of the Balkans," he said.

Further, the Greek minister urged the international community to act in compliance with the UN resolution envisaging autonomy within Yugoslavia and the safeguarding of the same rights for all ethnic groups in Kosovo.

Athens News Agency

[12] Tsohatzopoulos: Balkan states must demand end to ethnic cleansing of Serbs in Kosovo

SKOPJE, 30/09/1999 (ANA - M. Vihou)

On his part, Defence Minister and ESP vice-president Akis Tsohatzopoulos said the target of the meeting was for European socialists to come into contact with corresponding political forces in the region to enable a common framework of action to be shaped.

Mr. Tsohatzopoulos said it was deduced from talks that "protests exist on the part of representatives of the Balkan socialist and social democrat parties that what was decided by European countries and the UN Security Council is not proceeding quickly."

He went on to say that for as long as these decisions are not implemented, "reactions are created and doubt as to whether now that clashes are over in Kosovo the international community will deal with the same seriousness, as at the time it was dropping bombs, with the implementation of this policy."

Mr. Tsohatzopoulos said the Balkan countries, which asked for an end to the policy of ethnic cleansing against the Albanians, should demand an end to ethnic cleansing against the Serbs and the other ethnic groups living in Kosovo.

"We counter proposed the immediate mobilisation of KFOR for the enforcement of stability, the completion of the UN's policing presence with 3,000 men, the start of the operation of the temporary command under the representative of the UN's Secretary General Bernard Kouchner and the immediate start of the humanitarian aid and economic and social development programme," he said.

Mr. Tsohatzopoulos left for Pristina afterwards to meet Mr. Kouchner.

Athens News Agency

[13] Gov't: time is now right for Ankara to help solve Cyprus issue

Athens, 30/09/1999 (ANA)

Mr. Reppas was responding to questions about the focus of talks a day earlier in Washington, between US President Bill Clinton and visiting Turkish Prime Minister Bulent Ecevit.

Noting that both Washington and the G8 nations had undertaken initiatives on Cyprus, Mr. Reppas said Turkey should help towards solving the island republic's long-standing problem through direct talks, without conditions and commitments.

"Such a development would also be to the benefit of the neighbouring country (Turkey)," he said.

US envoy to consider prospects for new intercommunal talks : WASHINGTON (ANA - T. Ellis) - During their Tuesday meeting here, Mr. Clinton and Turkish Premier Bulent Ecevit agreed during a two-hour White House meeting that US presidential envoy Alfred Moses will visit the region next week to examine details for a resumption of intercommunal talks on the Cyprus problem, US officials stated.

"The prime minister supported the president's idea to send his special envoy for Cyprus Al Moses to the region probably as early as next week to explore ways to moving forward a negotiated settlement," officials said.

They added that the US president had reiterated his administration's position in favour of the G8 proposals for a start to UN-sponsored negotiations without preconditions. The officials also noted their agreement that any solution should not mean a return to the pre-1974 situation and should guarantee the security of all Cypriots.

According to diplomatic sources, if the process goes ahead, proximity talks will start under UN mediation, will be interrupted when Mr. Clinton visits Greece and Turkey in November, and will continue if Turkey is granted candidacy status by the EU summit in December, a development to which the US expects Greece to contribute.

The apparently reserved attitude of US officials was attributed to Mr. Ecevit's insistence for the recognition of an independent Turkish-Cypriot state before the start of negotiations. Questioned in this respect, a Clinton administration official said: "We are realists". He noted, however, that Mr. Ecevit displayed "clearly an openness to discuss in detail ways that we could move forward".

Mr. Clinton expressed satisfaction over the improvement in Greek-Turkish relations before the recent earthquakes in both countries and told Mr. Ecevit that they should "tap the dynamics" of the situation in order to find solutions to the problems between them.

Issues discussed also included bilateral cooperation in the military sector. Mr. Ecevit further asked for US support towards the granting of IMF loans to his country in order to deal with the problems arising from the Aug. 17 earthquake.

Mr. Clinton also expressed support for the construction of the Baku-Ceyhan oil pipeline, touted by Ankara as an economically feasible route to transport Central Asia and Caucasus oil and gas to a Mediterranean outlet.

Several analysts as well as other countries in the region, including Iran and Russia, have expressed reservations on the prospects of the pipeline transversing Turkey, including the predominately Kurdish areas of SE Turkey.

The Turkish prime minister also expressed a view that "our relations have become increasingly important because Turkey occupies a very important position in a changing world. And the US is well aware of the increased importance of Turkey's position in the world."

Athens News Agency

[14] Prodi-Karamanlis meeting on Greece's EMU prospects

BRUSSELS, 30/09/1999 (ANA - M. Spinthourakis)

Asked after meeting main opposition New Democracy leader Costas Karamanlis on the Commission's views in light of its opinion on the drachma joining the euro, Mr. Prodi stressed that "I will be pleased on the day that Greece, fulfilling criteria, will be come a member of the Economic and Monetary Union."

He added that he himself was "always favourably disposed towards Greece's accession to the euro."

Addressing the European Peoples Party's (EPP) Parliamentary group yesterday, as well as in his talks with Mr. Prodi, Mr. Karamanlis underlined national issues (Turkey and Cyprus), as well as European ideals.

Mr. Karamanlis said Cyprus, which fulfills all the accession preconditions, cannot be a victim of blackmailing by Turkish Cypriot leader Rauf Denktash.

He said he considered it "paradoxical" that Turkey should be accepted as a candidate for EU membership in violation of its common decisions and without self-evident preconditions for Europe applying at the level of human rights and a state of law.

He attributed responsibility to Europe itself, calling on it to decide on Turkey's candidacy on the basis of its own "acquired rights."

Mr. Karamanlis said during his hour-long meeting with Mr. Prodi that he considers the EU's enlargement and its institutional reforming as being issues which are absolutely interrelated and without which the EU will become a loose confederation.

On the question of Cyprus, he stressed the need for its accession to the EU to be promoted without it becoming a hostage of its political problem and of Mr. Denktash.

Referring to Turkey, Mr. Karamanlis assured that its European role should be strengthened on condition, of course, that it respects human rights and accepts a just and viable solution to the Cyprus issue.

Athens News Agency

[15] PM lauds contributions of political theorist Poulantzas at conference opening

Athens, 30/09/1999 (ANA)

The conference, entitled "Politics Today," was held to mark the 20th anniversary of the well-known Marxist thinker's death.

"Nikos Poulantzas was one of the most important propagators of that great political and intellectual current which sought in the 1960s and 1970s to reset the terms for the radical reorganisation of the Left, rid of the shadows of Stalinist totalitarianism," the prime minister said, while also providing details of a close friendship with the late 'Euro-communist' in their school days.

"Today, the introduction of radical social reforms is even more difficult than we thought. The increasingly complex and inter-dependent world of today stands much more lumbersome and ossified vis-a-vis social reform than the world we knew, a world in th e framework of which the narrowly national solutions to the problem of democratic socialism appeared still possible.

"Precisely for this reason, the effort must continue. This conference is not only about the past. We return to the past in order to gain our future."

Athens News Agency

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