Athens News Agency: Daily News Bulletin in English, 99-10-20

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

CONTENTS

[01] Simitis cites brisk upgrade in Greek-Romanian ties durinng meeting with Vasile

[02] Simitis calls for 'sincere moves' in letter to Izmir business leader

[03] Karamanlis heightens criticism over `videolotto`, gov't handling of Greek-Turkish relations

[04] Tsohatzopoulos on Cyprus' EU course

[05] Latvia supports Athens' positions on Cyprus, EU issues: Rokofyllos

[06] Gov't welcomes Cook statements regarding Cyprus

[07] Vartholomeos received by Austria's Klestil

[08] House of Common interest in Parthenon Marbles' care

[09] 'Olympic truce' song to be unveiled in Mexico

[10] EU-eide infertility treatment discussed at Rhodes conference

[11] Study points to Greece as atop infamous `black economy` list in EU

[12] National Bank of Greece seeks global expansion

[13] Stocks fall in jittery trade

[14] Secondary market bond prices slump

[15] Capital markets commission OKs share cap rises

[16] Seven-year bond yield rises

[17] Interlife to seek Athens bourse entry

[18] Delta Informatics shows 72 pct profit jump

[19] Athens Foreign Exchange

[01] Simitis cites brisk upgrade in Greek-Romanian ties durinng meeting with Vasile

Athens, 20/10/1999 (ANA)

After two hours of talks, with the participation of delegations of the two countries' foreign ministries, Mr. Simitis told a joint press conference that Greece's relations with Bucharest had been on an upward course in recent years.

He cited the fact that 1,680 Greek enterprises are currently active in Romania, while Greece is the sixth largest investor in the Balkan country.

It was agreed during yesterday's talks between the two prime ministers that Athens will provide know-how to the Romanian government to assist its bid for EU membership.

The two premiers also agreed to undertake joint initiatives within the framework of the Stability Pact for the reconstruction of the Balkans.

Mr. Simitis said also reiterated Athens' support for the construction of a second bridge over the Danube and the resumption of navigation on the river at normal levels.

Mr. Vasile, who arrived in Greece yesterday, expressed satisfaction at the progress in bilateral relations and made particular mention of the investment opportunities available in Romania.

The Romanian premier underlined especially the opportunities in the sectors of infrastructure, agriculture, cutting-edge technology and light industry.

"We hope that the trade balance of our two countries will this year break the 500 million dollar barrier," Mr. Vasile said.

He also requested a less rigid regime with regard to the granting of visas to Romanians wishing to visit Greece, guidelines which emanate from Greece's accession to the Schengen Treaty.

Later in the evening, Mr. Vasile was received by President of the Republic Kostis Stephanopoulos.

Mr. Vasile also met with Parliament President Apostolos Kaklamanis, who noted the need for supporting stability in the region so that relations between Balkan countries can improve.

Mr. Kaklamanis also called the stance of Washington and of several European countries "hypo-critical" in regards to Balkan countries, stressing that they placed preconditions on economic restructuring, on one hand, while on the other they undermine the region's stability.

Referring to Bosnia and Kosovo, Mr. Kaklamanis said that "the peoples of the region suffered the cost of the actions decided by others."

On his part, Mr. Vasile spoke of the problems faced by his country due to the extension of the embargo on Danube transports.

Athens News Agency

[02] Simitis calls for 'sincere moves' in letter to Izmir business leader

Athens, 20/10/1999 (ANA)

"Greece shows sincere and particular willingness to improve relations with Turkey, expressing specifically support for your country's European vocation. It is only natural for us to expect the government of Turkey to respond positively with specific acts to our moves," he told Ekrem Demirtas, the president of the Izmir Chamber of Commerce.

In his letter, dated Sept. 23, Mr. Demirtas said "we want to be friends with Greece and the Greek islands," and "we wish to improve trade relations with your country". "As you know, the governments of Greece and Turkey, aiming to improve bilateral relations, have agreed to expand the potential for promoting cooperation in various sectors which include commerce, economic relations, tourism and the urgent tackling of natural disasters. We also encourage initiatives from the private sector as well as from associations and organisations for the exchange of views and experience," Mr. Simitis said in his reply.

The Greek prime minister also commended contacts between the chambers of commerce of Izmir and the island of Lesvos, near the Asia Minor coast .

Athens News Agency

[03] Karamanlis heightens criticism over `videolotto`, gov't handling of Greek-Turkish relations

Athens, 20/10/1999 (ANA)

In an address to ND's Parliamentary group, and referring to the issue of the controversial "Olympic videolotto", a lottery planned in view of the Athens Olympic Games of 2004, he said he was resolved not to allow Greece to become a country full of gambling.

Mr. Karamanlis said ND would mobilise citizens and seek cooperation with other opposition parties, even with "honest voices in the government camp" and without compromising in the next election. He further criticised the government over its foreign policy, accusing it of "tragi-comic moves, personal experimentations and unilateral concessions" which feed Ankara's intransigence, making Greece appear as the 'weak player'.

He added that new concessions were being prepared without anything in return and on the sole pretext of a likely resumption of intercommunal talks on Cyprus.

"The demilitarisation proposal which President (Glafcos) Clerides has submitted can constitute the testing ground of Turkey's intentions...The government is not entitled to blow skyhigh the principles and rules which the European Union has established for the sake of any Turkey...There is no Aegean problem, there is a Turkish problem. Turkey aims to convert its unilateral claims into bilateral differences, ultimately targetting an overturn of the status quo," he said. Extending his criticism over govern ment's handling of economic affairs, Mr. Karamanlis said Greece would enter EMU with "glass feet," and that the day after would find the country with low rates of increases in incomes, low competitiveness, a major fiscal problem, a sick state and high une mployment.

Government : Government spokesman Dimitris Reppas, reponding to Mr. Karamanlis, called ND a "worn-out" party and a "rear guard" political force.

Referring to ND's "unrelenting struggle", Mr. Reppas said it was a "joke, not a struggle", adding that these efforts express a fear over the ND leader's political survival.

Mr. Reppas also accused Mr. Karamanlis of undermining the course of the country.

Athens News Agency

[04] Tsohatzopoulos on Cyprus' EU course

Athens, 20/10/1999 (ANA)

Mr. Tsohatzopoulos was speaking after a meeting with former main opposition New Democracy party leader Miltiades Evert.

Mr. Evert said afterwards that a fundamental condition for improving Turkey- EU relations was a just and viable solution to the Cyprus issue. He said it was inconceivable that the European Union should commence accession negotiations with Turkey if the neighbouring country had not presented clear-cut indications of a change in its stance on the Cyprus problem.

"Turkey cannot continue its occupation of some 40 per cent of the island republic's territory and have prospects for EU accession," Mr. Evert said.

Athens News Agency

[05] Latvia supports Athens' positions on Cyprus, EU issues: Rokofyllos

RIGA, 20/10/1999 (ANA - P. Dimitropoulos)

Following meetings with Latvian Foreign Minister Indulis Berzins as well as Monday's talks with Lithuanian President Valdas Adamkus, he said both were "100 per cent in agreement with our opinions".

Discussions between Mr. Rokofyllos and Mr. Berzins focused on bilateral relations and EU enlargement.

On his part, Mr. Berzins, said that the main aim of Latvia's foreign policy is the Baltic country's accession to the EU and NATO, where, as he noted, "we could have more security and prosperity.

While in Riga, Mr. Rokofyllos also met with Latvian President Vaira Vike- Freibergas and the country's Parliament President Janis Straume.

Athens News Agency

[06] Gov't welcomes Cook statements regarding Cyprus

Athens, 20/10/1999 (ANA)

Government spokesman Dimitris Reppas said this stance was the standing position of the European Union and that nothing could stop Cyprus' march towards membership in the EU.

Mr. Cook, speaking after talks with Foreign Minister George Papandreou in London on Monday, said that "for Britain the resolution of the political problem of Cyprus is not a pre-condition for the island's accession to the European Union".

Athens News Agency

[07] Vartholomeos received by Austria's Klestil

Athens, 20/10/1999 (ANA)

Mr. Klestil will be in Istanbul next month for the Organisation for Security and Cooperation in Europe (OSCE) meeting.

Following the meeting, Vartholomeos expressed the Patriarchate's satisfaction over the "obvious and spectacular" improvement of Greek-Turkish relations in the past few months.

During his short stay in Vienna, the local Orthodox community and Greek expatriates as well as other faithful held a rally for Vartholomeos.

Athens News Agency

[08] House of Common interest in Parthenon Marbles' care

LONDON, 20/10/1999 (ANA/AFP)

According to the report, the British Museum was the subject of a public outcry recently over the fact that for 50 years its officials had concealed the fact that the Parthenon Marbles, taken by Lord Elgin during the Ottoman rule of Greece on display at the museum since 1816, had been destroyed during scrubbing in the late 1930s, as stressed by a special Parliament committee summoned to probe the issue.

The museum's maintenance services have to defend their reputation now to the degree that they are obliged to provide great care to archaeological treasures they have in their safekeeping, the presse report read.

Athens News Agency

[09] 'Olympic truce' song to be unveiled in Mexico

Athens, 20/10/1999 (ANA)

The "Song of the Olympic Truce" is composed by former culture minister Thanos Mikroutsikos, with lyrics by Lina Nikolakopoulou.

Proceeds from the sale of the CD will be given to refugees and children affected by war. The record will be distributed by Minos EMI which has donated all the proceeds, and will premiere in Mexico in November.

Athens News Agency

[10] EU-eide infertility treatment discussed at Rhodes conference

Athens, 20/10/1999 (ANA)

Participants at the Rhodes meeting focused on two issues: the fact that infertility treatment is generally not covered by state-run health care funds in Europe, and the differing codes of conduct governing treatment.

Infertility treatment - specifically in-vitro fertilisation - is largely uncovered by state funds. Under Greek health care legislation, infertility treatment comes under the same category as cosmetic surgery and is covered as such.

Minas Mastrominas, a surgeon gynaecologist specialising in infertility, said that the Social Security Foundation (IKA) will reimburse about 150,000 drachmas of an expected infertility treatment which costs 800,000 drachmas.

IKA requires a couple requiring reimbursement for infertility treatment to have been married for at least four years and to have undergone various tests.

"Infertility in Greece affects about 14 per cent of the population," he said. This, and the fact that some 10,000 in-vitro fertilisations were conducted each year, meant that the state had to look at the issue with due concern.

"It is inconceivable for various European countries not to cover expenses for in-vitro fertilisation and couples to be forced to pay enormous amounts to have a child. In ten in-vitro cases, four will be successful," German professor Hugo Verhoeven said.

No unified code of conduct for infertility treatment across Europe exists. This leads to some couples resorting to travel to other countries to undergo fertility treatment - in Germany for example an unmarried couple may not have fertility treatment, al though no such restriction exists in Greece.

Regulations on sperm donations also differ markedly: in Sweden a child is obliged to know the identity of the donor on reaching the age of 16. This is not the case in many other countries.

"We want the European Union to define a common legislation which will deal with all cases P this will result in the cost of therapy also falling, as fertility will then be categorised as an illness and be covered by all health funds," Dr. Verhoeven said .

Some 7,000 children conceived through in-vitro fertilisation will soon congregate in Germany with the aim of sensitising public opinion and forcing the EU to take measures to solve the problem of infertility.

In Greece, more than 10,000 children have been born through the in-vitro method.

Athens News Agency

[11] Study points to Greece as atop infamous `black economy` list in EU

BRUSSELS, 20/10/1999 (ANA - P. Pantelis)

The ascertainment was confirmed by a study conducted by a Belgian bank (KBC) published in the Belgian economic newspaper 'Echo' on Monday. The report purports that the only way of confronting "black market labour", which is linked to the black economy, is to decrease tax burdens for labour costs.

According to the list presented in the study, Greece comes first with 29-35 per cent of GDP and with 36 per cent for labour cost (direct taxes and social contributions). Greece is followed by Italy with 20-26 per cent and 52 per cent, Belgium with 12-21 per cent and 59 per cent and Spain with 10- 23 per cent and 38 per cent.

At the other extreme lie Finland with 2-4 per cent and 49 per cent, Denmark with 3-7 per cent and 46 per cent and Sweden and Austria with 4-7 per cent and 52 per cent and 47 per cent, respectively.

The black economy percentage for the EU is estimated at 7-16 per cent of EU GDP.

The high cost of labour in the official market is considered the main cause of black labour.

Athens News Agency

[12] National Bank of Greece seeks global expansion

NEW YORK, 20/10/1999 (ANA/M.Georgiadou)

Mr. Karatzas was addressing a dinner at the New York Stock Exchange on Monday to mark the bank's trading debut on the market. "We are not here because we decided to cross the Atlantic just to enter a foreign market," he said.

"We are here because we are now operating in a global environment and are determined to maintain a trend of modernisation and cultural change."

Mr. Karatzas said the country could now begin enjoying the fruits of macro- economic stability and the progress it had made towards joining the euro zone.

"Achievements in the area of stability have been accompanied by a major process of restructuring on the domestic front, allowing the country gradually to free itself of weaknesses inherent in small, closed economies, " Mr. Karatzas said.

Greek companies had opened their horizons, realising that the domestic market was no longer enough and that long-term growth strategies were needed.

They were seeking to enter foreign markets and develop a leading presence in southeast Europe and the Mediterranean.

"National Bank of Greece has been on the front line of these changes and radical reforms in the domestic market," Mr. Karatzas said.

"We are moving ahead rapidly ... to deal with new risks, and take advantage of new opportunities."

He said he wanted National, a blue chip on the Athens bourse, to become a regional bank in southeast Europe.

"At the same time, we shall increase our presence and activity in major financial centres such as New York."

National Bank of Greece has had a presence in New York since 1927 when the predecessor of its current subsidiary, Atlantic Bank, was created.

Mr. Karatzas underlined National's long-lasting relationship with the city's Greek-American community.

Athens News Agency

[13] Stocks fall in jittery trade

Athens, 20/10/1999 (ANA)

Traders said worries over developments on Wall Street led to extreme price swings during the session and kept many investors on the sidelines.

The general index ended 0.68 percent lower at 5,392.32 points, off the day's low of 5.264. It started the day 2.28 percent up at 5,553 points on bargain hunting only to succumb later to profit taking.

Turnover was a moderate 330 billion drachmas.

Sector indices ended as follows: Banks (-1.00 pct), Leasing (-0.34 pct), Insurance (-3.30 pct), Investment (+0.80 pct), Construction (-1.86 pct), Industrials (+0.27 pct), Miscellaneous (-0.72 pct) and Holding (-0.53 pct). The parallel market index fo r smaller capitalisation stocks fell 1.02 percent while the FTSE/ASE 20 index for blue chip and heavily traded stocks eased 0.63 percent to 2,737.31 points.

Broadly, decliners led advancers by 168 to 146 with another four issues unchanged.

A total of 28 shares ended at the day's 8.0 percent limit up while another nine issues ended at the day's limit down.

Naoussa Spinning Mills and Macedonian Spinning Mills were the most heavily traded stocks.

National Bank of Greece ended at 21,750 drachmas, Alpha Credit Bank at 22, 100, Commercial Bank at 23,900, Titan Cement (common) at 34,550, Hellenic Petroleum at 4,940, Intracom (common) at 15,600, Minoan Lines at 9,200, Panafon at 8,000 and Hellenic Telecoms at 6,790.

Athens News Agency

[14] Secondary market bond prices slump

Athens, 20/10/1999 (ANA)

Electronic trade totalled 47 billion drachmas from 69 billion drachmas in the previous session and 60 billion drachmas on Friday. Sell orders accounted for 31 billion drachmas of turnover.

The benchmark 10-year bond, which is still trading below par, had posted an all-time low on Monday, trading at 93.90-94.20.

Yesterday, the paper showed a yield of 7.25 percent from 7.21 percent a day earlier and 7.16 percent on Friday.

The 10-year paper's yield spread over German bunds was 184 basis points from 181 basis points a session earlier and 177 basis on Friday.

Drachma shows volatility : The drachma dropped against the euro in the domestic foreign exchange market yesterday, prompting the central bank to step in and bolster the national currency. The Bank of Greece intervened by selling the relatively minor sum of 50 million euros.

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

The European currency was set at 329.250 drachmas from 329.240 drachmas in the previous session and 329.100 drachmas on Friday.

The dollar also finished higher against the drachma.

At the fix, the US currency was set at 304.540 drachmas from 303.180 drachmas a day earlier and 303.260 drachmas on Friday.

Athens News Agency

[15] Capital markets commission OKs share cap rises

Athens, 20/10/1999 (ANA)

The commission's board also approved stock market representatives for Metohiki Securities, Eurotrust Securities and Capital Securities.

Athens News Agency

[16] Seven-year bond yield rises

Athens, 20/10/1999 (ANA)

The yield in the auction, a reopening of a February 19 bond, jumped to 7.49 percent from 6.73 percent in the previous auction. The coupon was 6.0 percent.

Bids submitted by primary dealers totalled 232 billion drachmas, 1.45 times more than the amount tendered, a sign of continuing interest in domestic securities. The average weighed price of the bond was 92.576 points with a low of 92.450 points and a cut-off ratio of 18.52 percent.

Athens News Agency

[17] Interlife to seek Athens bourse entry

Athens, 20/10/1999 (ANA)

The company said in a statement yesterday that the plan included a rights issue of 962.8 million drachmas, the issue of new shares worth 800 million drachmas, and a stock offer to employees of 8.75 million drachmas.

Interlife's shares total 6,601,968 after the share capital increase, distributed among 1,275 shareholders.

Athens News Agency

[18] Delta Informatics shows 72 pct profit jump

Athens, 20/10/1999 (ANA)

A general shareholders' meeting approved a plan for an offer of three new shares for every old one and a price cut from 400 to 100 drachmas each.

Its profits for the first nine months of the year totalled 2.8 billion drachmas, up 72 percent from the same period in 1998, while turnover totalled 7.5 billion drachmas, a 45 percent increase.

The company's investments exceeded two billion drachmas in the period January-September to total 10.4 billion drachmas.

Delta Informatics is in the process of merging with Singular SA in a move to create the biggest information technology services group in the country.

Athens News Agency

[19] Athens Foreign Exchange

Athens, 20/10/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             302.104 309.108
Can.Dollar            201.872 206.552
Australian Dlr        195.097 199.620
Pound Sterling        504.531 516.229
Irish Punt            414.717 424.332
Pound Cyprus          564.686 577.779
Pound Malta           714.129 743.884
Turkish pound (100)     0.060   0.062
French franc           49.792  50.947
Swiss franc           205.542 210.308
Belgian franc           8.097   8.284
German Mark           166.996 170.868
Finnish Mark           54.933  56.207
Dutch Guilder         148.212 151.648
Danish Kr.             43.956  44.975
Swedish Kr.            37.014  37.872
Norwegian Kr.          39.039  39.944
Austrian Sh.           23.737  24.287
Italian lira (100)     16.868  17.259
Yen (100)             286.252 292.888
Spanish Peseta          1.963   2.009
Port. Escudo            1.629   1.667

Foreign Exchange      Buying  Selling
New York              302.104 309.108
Montreal              201.872 206.552
Sydney                195.097 199.620
London                504.531 516.229
Dublin                414.717 424.332
Nicosia               564.686 577.779
Paris                  49.792  50.947
Zurich                205.542 210.308
Brussels                8.097   8.284
Frankfurt             166.996 170.868
Helsinki               54.933  56.207
Amsterdam             148.212 151.648
Copenhagen             43.956  44.975
Stockholm              37.014  37.872
Oslo                   39.039  39.944
Vienna                 23.737  24.287
Milan                  16.868  17.259
Tokyo                 286.252 292.888
Madrid                  1.963   2.009
Lisbon                  1.629   1.667

Athens News Agency

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