Athens News Agency: Daily News Bulletin in English, 99-10-13

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

CONTENTS

[01] Stephanopoulos begins official visit to Iran, ties with EU discussed

[02] Greece could spur closer EU, Black Sea ties

[03] Gov't confirms change in dates for Clinton visit to Athens

[04] Cyprus, EU issues to dominate G. Papandreou's contacts in Oct., Nov.

[05] Gov't on recent Simitis message to Ecevit

[06] Thessaloniki to host conference on Balkan reconstruction

[07] New impetus for Greek, Turkish Business Councils

[08] Stocks jump, fuelled by small cap trade

[09] Yield rises in 10-year bond auction

[10] Secondary market bond prices slump

[11] Budget shows surplus of Dr 367.5 bln

[12] Quake cost higher than expected, gov't says

[13] Greek-Israeli business contacts for 2004 Olympics

[14] Athens Foreign Exchange

[01] Stephanopoulos begins official visit to Iran, ties with EU discussed

TEHRAN, 13/10/1999 (ANA)

Iran. "We are taking an interest in developments in your country. Greece, as a member of the European Union, is interested in the development of the European family's relations with Iran," he told his counterpart Mohammad Khatami during their first meeting.

Mr. Khatami also spoke of strengthening ties through international organisations of which the two countries are members, with a direct reference to the European Union.

On his part, Foreign Minister George Papandreou, who is accompanying the president in the four-day visit, further developed the subject of closer EU ties with Iran with his counterpart Kamal Kharazi.

Mr. Stephanopoulos is also accompanied by Agriculture Minister George Anomeritis, and a large delegation of entrepreneurs.

During the visit, Mr. Anomeritis is due to sign a protocol of cooperation in the agricultural sector, including irrigation systems, olive tree cultivation, fishing and viniculture.

The Greek president today is to inaugurate a Greek-Iranian economic forum and meet with Iran's spiritual leader, Ayatollah Ali Khamenei.

Imports of Iranian oil form the bulk of bilateral trade.

Athens News Agency

[02] Greece could spur closer EU, Black Sea ties

Athens, 13/10/1999 (ANA)

The two-day meeting is organised by the Black Sea Economic Cooperation Business Council under the auspices of the Greek foreign ministry. Delegates also said that businesses in the Black Sea region could take initiatives to support growth and contrib ute, in their own way, to stability in a region characterised by its multicultural, religious, political and economic diversity.

The delegates include ministers, analysts and businessmen from Albania, Armenia, Azerbaijan, Bulgaria, Greece, Georgia, Moldova, Romania, Russia, Turkey and Ukraine. Greece currently holds BSEC's six-month rotating presidency, and that of its business council.

Panayiotis Koutsikos, the council's chairman, urged a climate of understanding and mutual interest among businessmen and mentioned the example set by Greece and Turkey for wanting dialogue following earthquakes in each country, which brought the two neighbours closer.

Deputy Foreign Minister Grigoris Niotis, who inaugurated the meeting, said a historic step had been taken in May when BSEC became an international organisation from an inter-governmental forum.

"This transformation is an element of security for countries and businesses in the region," he said, also calling for more efforts to enhance stability.

Mr. Niotis said that Greece was promoting initiatives to forge closer cooperation between the EU and BSEC including an action plan covering energy, transport, commerce, the environment, protection for direct investments etc.

As part of the plan, he said, a joint meeting of foreign ministers of the two groups and the EU's Finnish presidency would be held in Thessaloniki on October 27 following interest shown by Romano Prodi, the European Commission President.

Marios Kamhis, director of the European Commission's Athens Office, said that the EU was interested in boosting growth in the Black Sea region. He said that BSEC could act as a trade link between the EU and central Asia and the Middle East.

"Promoting democracy, civil rights, funding for infrastructure projects, promoting direct investments, combatting drug trafficking and nuclear safety are some of the EU's priorities in the region," he said.

Ersoy Volkan, the Black Sea Commerce and Development Bank's chairman, referred to an improvement in Greek-Turkish relations as a factor to promote stability and allow the newly-founded bank to play its role.

Meral Eris, head of the Turkish Economy Development Institute, said that the European development model should be adopted by countries and businesses in the Black Sea region in order to boost economic benefits and overcome political deadlocks.

However, she criticised the EU's lack of political will to accept Turkey as a member despite an existing Customs Union agreement and the strength of the Turkish economy.

The Black Sea Economic Cooperation group was founded in June 1992 following a Turkish initiative. Its business council was created in November the same year and is based in Istanbul.

Drakoulis Fountoukakos, the secretary general of the Athens Chamber of Commerce and Industry, said that a total of around 4,300 Greek businesses had expanded into the 15 states of the Balkans and Black Sea region, with total investments exceeding 2.5 billion US dollars.

Greek exports to the countries have risen by five times from 466 million dollars in 1989 to 2.332 billion dollars in 1999, covering more than 20 percent of total exports from Greece, up from seven percent a decade ago.

Imports from the countries to Greece totalled 1.837 billion dollars, up from 749 million dollars in 1989.

Athens News Agency

[03] Gov't confirms change in dates for Clinton visit to Athens

Athens, 13/10/1999 (ANA)

Press reports, citing sources, in several Athens newspapers said yesterday that Mr. Clinton asked for the change.

The US president was scheduled to visit Athens on Nov. 22-24, after attending an Organisation for Security and Cooperation in Europe (OSCE) summit in Istanbul on Nov. 19. He is also slated to visit Bulgaria and Italy.

A US embassy spokesman yesterday declined to confirm or deny reports on whether Mr. Clinton would bring forward the dates of the visit by about a week, saying "there has been no official announcement from the White House".

The US president will be in Greece at the time of events marking the 26th anniversary of a students' uprising at the Athens Polytechnic.

Replying to reporters' questions, government spokesman Dimitris Reppas stated categorically that the government was not considering postponing Polytechnic events.

The annual events culminate in a march to the US embassy on Nov. 17 which has sometimes been marred by violence.

Asked why President Clinton's visit had been changed, Mr. Reppas attributed it to a US desire to facilitate the participation of First Lady Hillary Clinton in the visit to Greece.

Commenting on the visit itself, Mr. Reppas said it was very important and could prove to be "equally useful".

Although no firm agenda has yet been agreed for Mr. Clinton's talks in Athens, the government spokesman said they would focus on issues of economic and trade cooperation, the combatting of terrorism and organised crime, bilateral relations in general and other matters.

Asked about the possibility of a meeting between the US president and the prime ministers of Greece and Turkey, Costas Simitis and Bulent Ecevit, in Istanbul, Mr. Reppas replied that "no such issue has been raised".

Athens News Agency

[04] Cyprus, EU issues to dominate G. Papandreou's contacts in Oct., Nov.

Athens, 13/10/1999 (ANA)

Immediately after returning from the informal European Council in Tampere, Finland, (October 15-16) on Oct. 18, Mr. Papandreou will meet US President Bill Clinton's Cyprus envoy, Alfred Moses, and the US State Department's special coordinator for Cyprus , Tom Weston, who will arrive in Athens from Ankara and then leave for Nicosia.

Mr. Moses' mission to Ankara, Athens and Nicosia had been announced by the White House after President Clinton's meeting with Turkish Prime Minister Bulent Ecevit.

Mr. Papandreou will leave for London on Oct. 18 in the afternoon to meet his British counterpart Robin Cook and possibly British Prime Minister Tony Blair.

The next day, Mr. Papandreou will arrive in Madrid to meet his Spanish counterpart Abel Matutes and probably Spanish Prime Minister Jose Maria Aznar.

Mr. Papandreou will go to Rome on Oct. 20 to meet his Italian counterpart Lamberto Dini.

The session of Black Sea Economic Cooperation pact member-states' foreign ministers will take place in Thessaloniki on Oct. 26-27 whose presidency Greece is holding over the current six-month period.

Italian Prime Minister Massimo D'Alema will visit Athens on Oct. 26-27, while the next day Mr. Papandreou will leave for Berlin to meet his German counterpart Joschka Fischer.

Mr. Papandreou will visit Canada on Oct. 31, from where he will leave for Boston on Nov. 4 to address an event organised by Harvard. He will leave for Paris from Boston to meet his French counterpart Hubert Vedrine and French Prime Minister Lionel Jospin.

Prime Minister Costas Simitis will also be in Paris as of Nov. 8 to attend the Socialist International's meeting.

Mr. Papandreou will leave for The Hague on Nov. 9 to meet his Dutch counterpart Van Archen. He will then return to Athens to be present during the visit by US President Bill Clinton.

On Nov. 15, Mr. Papandreou will participate in the European Union's Council of General Affairs and then leave for Moscow to meet his Russian counterpart Igor Ivanov, as well as Russian Prime Minister Vladimir Putin.

On Nov. 18-19, Mr. Papandreou will accompany Prime Minister Costas Simitis at the OSCE's summit in Istanbul.

Outlining Greek positions, Mr. Papandreou will convey during his contacts with European officials, diplomatic sources said Greece desires the linking of Turkey's European course to the elaboration of a course map and, in addition, promoting the safeguar ding of Cyprus' accession course to the EU.

On the question of safeguarding Cyprus' accession course, the Greek side is ascertaining that there is far greater reservation in the EU's ranks. Foreign Ministry sources reiterated that, as far as Greece is concerned, the mere attendance of Turkish Cypriot leader Rauf Denktash at talks on the Cyprus issue does not constitute adequate progress and that, on the contrary, one can speak of progress provided that an across-the-board discussion starts on all aspects of the Cyprus problem.

Athens News Agency

[05] Gov't on recent Simitis message to Ecevit

Athens, 13/10/1999 (ANA)

Government spokesman Dimitris Reppas denied that there had been any conscious decision on Mr. Simitis' part that "the timing was right" -only that the meeting between the two provided an opportunity.

Mr. Simitis said in a message to his Turkish counterpart that Greece has contributed to the creation of a positive climate in Greek-Turkish relations and has taken specific steps vis-a-vis Ankara, therefore, it expects reciprocal action in bilateral relations and over Cyprus.

The message was delivered by Greek ambassador Ioannis Korantis during a courtesy call to the Turkish prime minister on Monday.

The ambassador said the message referred to Athens' wish for "excellent relations with Turkey" and that it supported "Turkey's European prospect."

Mr. Reppas asked that the event not be linked to other developements and for there to be no speculation on other initiatives beyond the fact of the meeting.

The spokesman said Mr. Simitis had referred to Greek-Turkish relations and the recent good climate between the two countries and that the Greek prime minister had said it saw Turkey's European vocation and rapprochement with the European Union positively.

Mr. Simitis also said Athens awaited demonstration of Turkey's willingness to contribute to better bilateral relations.

Mr. Reppas said that Turkey was subject to the same criteria as all other countries that are candidates for membership of the EU but there were issues of particular Greek interest such as the Cyprus issue and Cyprus' accession to the EU and the level of

Greek-Turkish relations. He linked these issues with Turkey's meeting of the Copenhagen EU summit criteria, both for Greece's consent and for Turkey to be convincing in its desire to have a substantial and not superficial candidacy.

Greece is an advocate of the EU's expansion, has no objection to stepping up the pace of negotiations but the rules can not be bent and must be valid for all, Mr. Reppas said.

Greece expects tangible proof and not just a setting out of good intentions, he said.

A proposal for a "road map", which would set out specific steps and obligations that Turkey had to meet has not been discussed with Turkey, Mr. Reppas said. He said it was still too early to discuss such issues and that Greece was not prepared to "show its hand before time".

Asked whether Greece would consider the resumption of talks on the Cyprus issue an indication of "good will" on Turkey's part, Mr. Reppas said that talks had not begun, adding he hoped they soon would and that all sides had to show a willingness for the Cypriot problem to be resolved and that dialogue could not get under way with prerequisites.

Asked whether the Greek government was satisfied with the stance taken so far by the Turkish prime minister, Mr. Reppas said that the government was satisfied by the improvement in the climate of Greek-Turkish relations.

"We hope this will not be a parenthesis," he said.

Mr. Ecevit has reiterated his views, which are not new, and his desire to improve the climate in relations between the two countries, working himself in this direction, Mr. Reppas said.

"On a level of principle, we agree completely," he said.

Asked of the existence of an informal document alleged to have been agreed by the British, German and French heads of government, and which schedules a Cyprus EU accession at the same time as Turkey's accession, Mr. Reppas said the report was the result of a vivid imagination.

"No timeframe has been decided for any country," Mr. Reppas said.

New Democracy : Main opposition New Democracy party spokesman Aris Spiliotopoulos yesterday accused Mr. Simitis of "conducting secret diplomacy".

"We call on the prime minister, if a written message by him to his Turkish counterpart exists, to publicise it immediately so that the Greek people be informed on its content. If no written message exists, the premier should provide full details on his verbal message to the Turkish prime minister immediately," Mr. Spiliotopoulos said.

ND's spokesman said that Mr. Simitis' written or verbal message, provided it touches on the issues mentioned in relevant reports which have not been refuted, is unacceptable from all points of view, adding that "it constitutes yet another step of conces sion which we are making not only without anything tangible in exchange, but also gives the Turkish prime minister the cause and opportunity to repeat his unacceptable views and promote Turkish claims against us through underlining the continuation of dialogue."

Athens News Agency

[06] Thessaloniki to host conference on Balkan reconstruction

Athens, 13/10/1999 (ANA)

The conference, to be op ened by the special coordinator of the Stability Pact for SE Europe, Bondo Hombach, will include discussion of inter-Balkan cooperation in business and banking, and of the financing of the planned reconstruction projects.

National economy minister Yiannos Papantoniou will present his government's Balkan reconstruction plan, to be followed by an exchange of views with his Balkan counterparts. The first morning session will be concluded with an official luncheon to be addr essed by Montenegrin president Milo Djukanovic. The session on Balkan business cooperation will include contributions from representatives of the American SECI initiative for the region, the European Royaumont initiative, the European Task Force for Kosovo, the Organisation for Security and Cooperation in Europe and the East- West Institute.

Representatives of the European Investment Bank, the World Bank and other international organisations will address the session on finance, while European, American and Balkan businessmen will contribute to discussion on investment. Among those invited to attend are European Commission President Romano Prodi and US Assistant Secretary of Trade, David Aaron.

In a related development, the president of Northern Greece's Association of Exporters, Vasilis Takas, said he dis agreed with the exclusion of the Belgrade government from the conference.

"There can be no reconstruction of the Balkans without Yugoslavia," he said, adding that he would reiterate his position at the conference.

Athens News Agency

[07] New impetus for Greek, Turkish Business Councils

Athens, 13/10/1999 (ANA)

A decision was reached during the meeting of Greek and Turkish businessmen participating in the two countries' corresponding business councils on creating eight work groups from each side which will probe prospects for the further development of cooperations in the banking and financing sector, the insurance sector, shipping, transports, tourism, the Stock Exchange and small and medium-size enterprises, as well as cooperation with third countries and in the sector of environmental protection. The Commit tees' proposals will be submitted to the two countries' business councils for approval, which will convene in Istanbul at the end of February next year.

Speaking at a press conference, Mr. Tara expressed optimism over the Istanbul meeting, stressing that it will have specific positive results.

Replying to a question, Mr. Tara pointed out that the impending EU summit in Helsinki is important for Turkey and underlined that he believes that Greece will act as an advocate of his country. Mr. Tara expressed the conviction that the Turkish governme nt and the Turkish people are determined to resolve whatever problems exist with Greece and added that the same attitude exists in Greece.

Athens News Agency

[08] Stocks jump, fuelled by small cap trade

Athens, 13/10/1999 (ANA)

The general index overtook the 6,000 level, ending at the day's high. The index ended 2.59 percent higher at 6,217.74 points, up from 5,972.75 the previous day. Turnover was 490 billion drachmas.

Sector indices ended as follows: Banks (-0.93 pct), Leasing (+8.0 pct), Insurance (+2.0 pct), Investment (+4.76 pct), Construction (+5.02 pct), Industrials (+4.62 pct), Miscellaneous (+2.91 pct) and Holding (+6.72 pct). The parallel market index for sma ller capitalisation stocks ended 6.01 percent up while the FTSE/ASE 20 index for blue chip and heavily traded stocks rose 1.14 percent to 3,018.44 points.

Broadly, advancers led decliners by 259 to 47 with only five issues unchanged.

A total of 108 shares in the parallel market ended at the day's 8.0 percent limit up.

Heracles Cement, Lampsa and Tria Alpha ended at the day's limit down. Dionik and Attica Publications jumped 99 percent in the second day of trading in the market.

Lampsa and Hellenic Telecoms were the most heavily traded stocks.

National Bank of Greece ended at 23,695 drachmas, Alpha Credit Bank at 23, 900, Commercial Bank at 27,000, Titan Cement at 37,800, Hellenic Petroleum at 5,616, Intracom at 17,982, Minoan Lines at 11,430, Panafon at 8,100 and Hellenic Telecoms at 7,350.

Athens News Agency

[09] Yield rises in 10-year bond auction

Athens, 13/10/1999 (ANA)

Bids submitted for the 175 billion drachmas worth of bonds being auctioned totalled 335.5 billion drachmas, almost double the amount offered, the finance ministry's debt agency said in a statement.

The bond was a reopening of the January 29, 1999 issue carrying a 6.30 percent coupon.

Settlement is on October 15.

Athens News Agency

[10] Secondary market bond prices slump

Athens, 13/10/1999 (ANA)

Institutional investors abroad have kept out of the market for some time with recent slim trade dominated by domestic players.

Electronic trade was 28 billion drachmas from zero in the previous session, 11 billion drachmas on Friday and 24 billion drachmas in the two sessions before that. Sell orders accounted for the bulk of yesterday's turnover.

Trading continued after the close of the central bank's electronic system, again dominated by sell orders.

The benchmark 10-year bond, which is trading below par, was quoted below Monday's 96.10-96.35 from 96.30-96.95 on Friday.

The paper showed a yield of 6.89 percent from 6.90 percent in the previous session and 6.83 percent on Friday. The 10-year paper's yield spread over German bunds was between 159 and 166 basis points from 167 basis points on Friday and around 168 basis points on Thursday.

No figure was given for Monday, when electronic trade hit zero.

Drachma unruffled in quiet trade : The drachma was steady against the euro yesterday in lacklustre trade.

At the central bank's daily fix, the euro ended slightly higher versus the drachma.

The European currency was set at 328.600 drachmas from 328.320 drachmas in the previous session and 328.400 drachmas on Friday.

The dollar finished lower against the drachma.

At the fix, the US currency was set at 308.210 drachmas from 308.690 drachmas a day earlier and 307.790 drachmas on Friday.

Athens News Agency

[11] Budget shows surplus of Dr 367.5 bln

Athens, 13/10/1999 (ANA)

Mr. Drys predicted that the budget surplus could total 400 billion drachmas by the end of the year.

Budget revenue rose 10.88 percent in the first nine months of 1999, exceeding a target for an annual revenue growth of 5.83 percent.

Tax revenue from securities transactions totalled 111 billion drachmas in September from the start of the year, sharply up from 24.2 billion drachmas in the same period of 1998.

Revenue from tariffs on cellular telephony were also higher at 5.5 billion drachmas in the period January-September from 3.5 billion last year.

Athens News Agency

[12] Quake cost higher than expected, gov't says

Athens, 13/10/1999 (ANA)

Speaking to reporters after a meeting with Prime Minister Costas Simitis on the economy, Mr. Papantoniou said that the cost of the quake was placing pressure on the government's fiscal policy.

"However, the Greek economy can afford the cost. It doesn't lead to any deviation from our targets but increased attention to fiscal management is required," he said.

The minister noted that although revenue was expected to continue improving in the next few years, the cost of repairing damage from the quake would exceed an original forecast of around 200 billion drachmas.

The government has earmarked 60-70 billion drachmas for 1999 and a higher sum for next year.

Mr. Papantoniou noted that the cost of the earthquake would spill over a decade because the government was subsidising quake-related loans.

He expressed the hope that up to 50 or 70 percent of the total cost would be covered by European Union funds.

"In general, the economy remains on the right track and the prospect of EMU participation now seems almost certain. There is always concern regarding inflation until we fulfill that criterion by February 2000," the minister said.

Mr. Papantoniou reiterated that the government must continue monitoring inflation and urged the public and businesses in particular to show a sense of responsibility in the effort to lower the rate.

He urged businessmen to exhaust all leeway in freezing prices and lowering them where possible.

Mr. Papantoniou added that next year's budget was in the final stage of drafting and that it would be submitted to parliament in the first week of November.

The minister also announced later in the day that tax procedures, especially submitting tax returns, would be simplified.

Athens News Agency

[13] Greek-Israeli business contacts for 2004 Olympics

Athens, 13/10/1999 (ANA)

Attending the conference will be 28 Israeli companies from sectors including construction, security systems, building materials and software.

The delegation is also to meet leaders of the 2004 organising committee.

The embassy is holding the conference in Athens with the Israeli Export Institute and Greek-Israeli Chamber of Commerce.

Athens News Agency

[14] Athens Foreign Exchange

Athens, 13/10/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             305.744 312.833
Can.Dollar            207.328 212.135
Australian Dlr        199.625 204.254
Pound Sterling        504.730 516.432
Irish Punt            413.898 423.495
Pound Cyprus          564.289 577.373
Pound Malta           719.784 749.775
Turkish pound (100)     0.060   0.063
French franc           49.694  50.846
Swiss franc           204.357 209.095
Belgian franc           8.081   8.268
German Mark           166.667 170.531
Finnish Mark           54.825  56.096
Dutch Guilder         147.919 151.349
Danish Kr.             43.860  44.877
Swedish Kr.            37.492  38.361
Norwegian Kr.          39.210  40.119
Austrian Sh.           23.689  24.238
Italian lira (100)     16.835  17.226
Yen (100)             287.640 294.309
Spanish Peseta          1.959   2.005
Port. Escudo            1.626   1.664

Foreign Exchange      Buying  Selling
New York              305.744 312.833
Montreal              207.328 212.135
Sydney                199.625 204.254
London                504.730 516.432
Dublin                413.898 423.495
Nicosia               564.289 577.373
Paris                  49.694  50.846
Zurich                204.357 209.095
Brussels                8.081   8.268
Frankfurt             166.667 170.531
Helsinki               54.825  56.096
Amsterdam             147.919 151.349
Copenhagen             43.860  44.877
Stockholm              37.492  38.361
Oslo                   39.210  40.119
Vienna                 23.689  24.238
Milan                  16.835  17.226
Tokyo                 287.640 294.309
Madrid                  1.959   2.005
Lisbon                  1.626   1.664

Athens News Agency

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