Athens News Agency: Daily News Bulletin in English, 99-10-21

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

CONTENTS

[01] Central bank lowers key working rates

[02] Stocks jump in wake of slump

[03] State defence, vehicles industries for sale

[04] Gov't okays measures to protect bourse shipping investors

[05] Investment firms show market value of Dr 1.8 trillion

[06] Significant slashes in borrowing rates expected after EMU entry

[07] Athens Foreign Exchange

[08] Simitis announces withdrawal of 'Videolotto' game

[09] Greece, Italy ascertain a confluence of views over Turkey's EU application

[10] DEA recognition for successful cocaine sting operation

[11] Gov't: No date set for UN-sponsored over two Cypriot communities

[12] Olympiakos' European hopes dashed

[13] 'Peace flight' by Turkish light aircraft pilots over Mykonos

[14] Meeting set between Greek, Albanian public order ministers

[15] Restoration on Parthenon's western frieze approved

[01] Central bank lowers key working rates

Athens, 21/10/1999 (ANA)

The new rates go into effect today after holding the same levels for around 11 months.

The government hopes to take Greece into the 11-member euro zone by January 1, 2001.

Bank of Greece governor Lucas Papademos has been cautious about lowering interest rates, despite pressure from markets.

He has repeatedly stated that levels would hold steady until a decline was warranted by an improvement in price stability.

The central bank cut its primary rate for overnight funds to 11.00 percent from 11.50 percent and its secondary rate to 9.25 percent from 9.75 percent.

The rate for the bank's two-week deposit tender held each Wednesday to soak up liquidity fell to 11.50 percent from 12.00 percent.

Finally, the Bank of Greece lowered its Lombard facility to 13.00 percent from 13.50 percent.

Rates seen at 3.0 pct by end-2000 : Interest rates will fall to 3.0 percent by the end of next year in line with European Union levels, National Economy and Finance Minister Yiannos Papantoniou said yesterday.

He was commenting on the Bank of Greece's decision to cut its intervention rates by half a percentage point. "The beginning was made today and we welcome it. It proves that we are on the right track for the good of the economy," Mr. Papantoniou said.

"Lower interest rates mean lower borrowing costs for companies, light industries and those seeking to buy their own homes. For that reason, the first round of interest rate cuts should be limited, particularly after March 2000 when we will submit our ap plication for euro zone entry," he added.

Athens News Agency

[02] Stocks jump in wake of slump

Athens, 21/10/1999 (ANA)

Fuelling sentiment were a decision by the Bank of Greece to lower its intervention rate by 50 basis points, paving the way for similar moves by commercial banks, combined with a recovery in international markets on tame US inflation data.

The general index ended 5.78 percent higher at 5,704.26 points with turnover at 402 billion drachmas. Sector indices ended as follows: Banks (+3.96 pct), Leasing (+7.74 pct), Insurance (+6.66 pct), Investment (+6.55 pct), Construction (+7.92 pct), I ndustrials (+6.42 pct), Miscellaneous (+7.05 pct) and Holding (+7.93 pct).

The parallel market index for smaller capitalisation stocks soared 7.86 percent while the FTSE/ASE 20 index for blue chip and heavily traded stocks ended 5.01 percent higher at 2,874.53 points. Advancers dramatically outpaced decliners by 319 to four.

A total of 230 shares ended at the day's 8.0 percent limit up.

Hellenic Telecoms and Barba Stathis were the most heavily traded stocks of the day.

National Bank of Greece ended at 22,250 drachmas, Alpha Credit Bank at 22, 900, Commercial Bank at 25,120, Titan Cement (common) at 35,700, Hellenic Petroleum at 5,248, Intracom (common) at 16,370, Panafon at 8,640 and Hellenic Telecoms at 7,235.

Investors lack maturity, Papantoniou says : Stock market fluctuations are a normal phenomenon but domestic retail investors relying on rumour-driven trade lack the maturity of investors abroad, National Economy and Finance Minister Yiannos Papantoniou said yesterday.

He declined to forecast the Athens bourse's future but noted that price fluctuations would be narrower next year.

"I do not make predictions. My views of a positive trend in the market are justified but there will always be ups and downs. It is a normal reaction of the market," Mr. Papantoniou told reporters.

"The Greek market is mature in its structure and operation and has nothing to envy in any foreign stock exchange in terms of legislation, administration, technology or transparency. But it still lacks investor maturity," he said.

Athens News Agency

[03] State defence, vehicles industries for sale

Athens, 21/10/1999 (ANA)

The decision was announced after a meeting between National Economy and Finance Minister Yiannos Papantoniou and the national defence and development ministers.

The officials also decided that Salomon Smith Barney, the US investment firm, would be hired to seek a strategic investor to acquire a minority stake in Hellenic Aerospace Industry (EAB).

The two moves are expected to be completed by the end of the year.

Athens News Agency

[04] Gov't okays measures to protect bourse shipping investors

Athens, 21/10/1999 (ANA)

Mr. Soumakis said he was worried over the fact that new applications for state licences covering specific routes were being used for speculative purposes on the Athens Stock Exchange.

He said that ministry officials were ready to begin examining investor protection measures in the wake of announcements by passenger shippers about the purchase of new vessels, often linked to award of the permits.

The measures will include setting binding terms for passenger shippers to begin operating a line by a set deadline, and raising fees for permit approvals from 20 million drachmas to 300-500 million drachmas.

Mr. Soumakis reacted angrily to comments by the chairman of NEL Lines that the merchant marine minister was promoting the interests of another passenger shipping company.

"NEL's chairman is playing stock market games," Mr. Soumakis said.

Athens News Agency

[05] Investment firms show market value of Dr 1.8 trillion

Athens, 21/10/1999 (ANA)

The sharpest increase was 91 billion drachmas, up 10.6 percent, in the net value of the companies' assets to total 949.65 billion drachmas against 858.65 billion drachmas in August.

Athens News Agency

[06] Significant slashes in borrowing rates expected after EMU entry

Athens, 21/10/1999 (ANA)

Federation of Greek Industries (SEB) president Iason Stratos said Greek businesses had to rapidly change their entrepreneurial identity and cooperate with training and research centres in order to adapt to the realities of the new era.

Other speakers noted the current wave of mergers and acquisitions were precisely the result of Greek entrepreneurs' awareness of the need for such changes.

Athens News Agency

[07] Athens Foreign Exchange

Athens, 21/10/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             303.274 310.306
Can.Dollar            203.856 208.583
Australian Dlr        196.828 201.391
Pound Sterling        505.821 517.548
Irish Punt            415.158 424.784
Pound Cyprus          565.718 578.834
Pound Malta           719.822 749.815
Turkish pound (100)     0.060   0.062
French franc           49.845  51.001
Swiss franc           205.433 210.196
Belgian franc           8.105   8.293
German Mark           167.174 171.050
Finnish Mark           54.992  56.267
Dutch Guilder         148.369 151.809
Danish Kr.             43.995  45.015
Swedish Kr.            37.190  38.052
Norwegian Kr.          39.273  40.184
Austrian Sh.           23.761  24.312
Italian lira (100)     16.886  17.277
Yen (100)             285.408 292.026
Spanish Peseta          1.965   2.011
Port. Escudo            1.631   1.669

Foreign Exchange      Buying  Selling
New York              303.274 310.306
Montreal              203.856 208.583
Sydney                196.828 201.391
London                505.821 517.548
Dublin                415.158 424.784
Nicosia               565.718 578.834
Paris                  49.845  51.001
Zurich                205.433 210.196
Brussels                8.105   8.293
Frankfurt             167.174 171.050
Helsinki               54.992  56.267
Amsterdam             148.369 151.809
Copenhagen             43.995  45.015
Stockholm              37.190  38.052
Oslo                   39.273  40.184
Vienna                 23.761  24.312
Milan                  16.886  17.277
Tokyo                 285.408 292.026
Madrid                  1.965   2.011
Lisbon                  1.631   1.669

Athens News Agency

[08] Simitis announces withdrawal of 'Videolotto' game

Athens, 21/10/1999 (ANA)

"As a part of preparations for the Olympic Games, (the lottery) has meaning only if there is a climate of seriousness, responsibility and consensus..." Mr. Simitis said in a statement.

The proposed lottery - called 'Olympic videolotto' - had drawn fire from main opposition New Democracy in recent days.

ND leader Costas Karamanlis on Tuesday lashed out against the government, saying it was responsible for "instances of corruption, lack of transparency and shady deals with vested interests".

Referring to the videolotto, he said that he was resolved not to allow Greece to become a country of gambling.

Responding yesterday, Mr. Simitis said ND was "unable to set out a substantial political argument and lacked contact with the real problems facing Greek society".

"This time it has chosen as a playing field the Olympic lottery. It remembered it many months after it was legislated. It chose it despite the fact that it is linked to the country's preparations for the Olympic Games and our contractual obligations to the International Olympic Committee (IOC)," the statement read.

"The government finds itself in the dilemma of whether or not to continue the discussion on the level of mud-slinging chosen by New Democracy.

"We are not about to let ND poison public life, to obscure the real problems and undermine the achievements of the country, portraying Greece as a country of gamblers and one-armed bandits.

"It is for this reason that the government has decided to deny New Democracy any pretext at misleading the Greek people. The Olympic video- lotto will not proceed."

Mr. Simitis dismissed charges of underhandedness, saying there "has never been so many and such guarantees of transparency in the form of judicial checks of all procurements and projects".

The prime minister also gave assurances that the financial resources needed for the Olympic preparations, as well as cultural and sports infrastructure projects, would be raised.

Karamanlis : Addressing Parliament, Mr. Karamanlis called decision to scrap the public tender an "hasty retreat", which was "an admission of guilt." He added that ND's protest is being vindicated .

The ND leader also said this is "only the first battle against intransparency and vested interests", while he criticised the absence of the premier from Parliament during discussions for a relevant bill.

On his part, National Economy Minister Yiannos Papantoniou, speaking in Parliament, said the "so-called arguments" of ND are a repetition of arguments of casino owners, as well as the of legal and illegal interests.

ND spokesman Aris Spiliotopoulos expressed his satisfaction over the tender's withdrawal, calling it "a message of help to all."

"When the forces of corruption and the forces of the few are confronted by the citizens of this country, the winners are the citizens, especially the young. The government withdrew following condemnation by all."

Gov't : In a related development, government spokesman Dimitris Reppas said the article of the bill under discussion was not relevant to the videolotto, for which a public tender process was underway.

Asked whether ruling PASOK deputies would vote for the specific article in the bill, Mr. Reppas said they would vote according to their conscience.

Responding to a relevant question, Mr. Reppas said the issue of changes to the bill concerns responsible ministers and the Parliament's president.

He also called on Mr. Karamanlis to present evidence on the contract he referred to in relation to videolotto when he speaks of a "scandalous contract".

Coalition for the Left and Progress (Synaspismos) Nikos Constantopoulos called Mr. Simitis' statement "a definite confession of guilt."

He added that the government attempted to "pass throught Parliament changes via amendments in unrelated bills to facilitate big (business) interests."

Bill approved : Later in the evening, Parliament voted to pass the relevant bill, as 147 voted in favour and 125 against out of a total of 272 MPs present.

Before the vote Parliament President Apostolos Kaklamanis chan-ged the wording in the article referring to "technical entertainment games" to read "...games, the result of which depends solely on the technical or intellectual ability of the player, while their use is solely that of entertainment, disallowing the agreement on any wager or any kind of financial gain by the player."

Athens News Agency

[09] Greece, Italy ascertain a confluence of views over Turkey's EU application

ROME, 21/10/1999 (ANA - L. Hatzikyriakos)

Speaking here after talks with his Italian counterpart Lamberto Dini, Foreign Minister George Papandreou said Rome's positions were "quite close" to those of Athens.

Mr. Papandreou, who had arrived in the Italian capital from Madrid, outlined Athens' positions to Mr. Dini related Ankara's possible accession process and in light of the upcoming Helsinki EU summit.

"The main issue which dominated our interesting meeting was EU enlargement in SE Europe, negotiations with the five remaining countries, the European prospect of many Balkan countries and, of course, Turkey's candidacy. I set out Greek positions and pr oposals and I listened to the Italian views. I can say that, generally speaking, we have positions which are quite close and I think that Italy will support Greek views in Helsinki to a considerable degree," he told reporters.

Mr. Papandreou said issues were also discussed concerning Albania, Kosovo, Montenegro and Serbia, while it was decided that Athens and Rome will cooperate more closely to enable a coordination of actions in order for the two countries to more effectivel y promote alternate initiatives in the Balkans.

On the question of Turkey's EU possible candidacy, Mr. Papandreou said: "What we are calling for is that Turkey should not merely receive the title of a candidate countryIbut together with the advantages of a candidate country it should also have the specific processes, such as those for any other candidate country, of the monitoring, supervision and evaluation of its steps and the domestic changes which should be made in Turkey on the basis of criteria set by the EU.

"We believe that such a relationship will be fruitful and will help certain important steps to be taken by Turkey towards European values and institutions. It is something which is to the benefit of both the EU and Greece."

Mr. Papandreou underlined that Rome agrees to support such a stance. All these issues will be discussed during the meeting Italian Prime Minister Massimo D'Alema will have in Athens with his Greek counterpart Costas Simitis during his informal visit to Greece on Oct. 26-27. The meeting was organised within the framework of periodical bilateral consultations.

The two prime ministers will discuss bilateral cooperation, issues concerning EU enlargement, Balkan reconstruction, Euro-Mediterranean cooperation and peace in the Middle East.

Both will place particular emphasis on the struggle against crime and the control of borders on both sides of the Adriatic and the Ionian seas.

Press interview : Meanwhile, in a interview published yesterday by the major Italian daily "Corriere della Sera', the Greek FM was quoted as saying that the European Union can seize a unique opportunity to contribute to a resolution of the Cyprus issue in light of Ankara's desire to become a EU candidate state.

"We are not setting ultimatums. We are convinced that Turkey can be a real and not hypothetical candidateIBoth the EU and Ankara will be required to show the political courage needed to take the necessary decisions.

"In relation to Turkey, this means that it has to begin the necessary reforms and to improve its relations with neighbouring countries," he said. He added that a final decision on Turkey's candidacy in the EU, however, depended on "certain special situa tions", including pro-gress on human rights and the Cyprus issue.

"We certainly - I am talking about the government and the majority of the major parties - welcome Turkey in the EU," he said.

"We all want the island (Cyprus) to be a country united when it becomes a member of the EU, having solved the problem of relations between Greek and Turkish Cypriots and putting an end to Turkish occupation.

"But if we hypothesise that for some reasons and particularly due to the desire of the Turkish Cypriots and their leader Denktash to not negotiate a solution, then the situation remains as is. What do we do? Do we leave Cyprus out?

"We say no, that would be impossible. During the Cold War, the Cyprus issue had been pushed to the margins on the understanding that 'we will look at it later'. Now the problem has resurfaced."

Mr. Papandreou, who is in Rome for a meeting with Italian Foreign Minister Lamberto Dini, said the desire for peaceful co-existence between Greece and Turkey was now able to be realised, following the beginning of dialogue between Athens and Ankara on finding issues of common interest last summer.

He said this process had been given a good push with the mutual aid and relief between Greece and Turkey following earthquakes in both countries.

"The Greek people sent a specific message: go ahead," he said.

"We face a unique opportunity. Either we move forward together or we risk once again a new complication which will worsen the loss of convergence which has been created. At (the EU summit in) Helsinki there will be two possibilities: either a significant turn or stagnation."

He said his talks in Rome on the situation would be critical to the entire issue.

"Italy is a country which knows the region, Greece, Turkey, the Balkans, well. It is one of the important EU members and its role is particularly improtant. The moment is unique. I believe that seizing this unique opportunity is to the general benefit. We will all come out winners," he said.

Athens News Agency

[10] DEA recognition for successful cocaine sting operation

Athens, 21/10/1999 (ANA)

The Greek officers were honoured for the successful outcome of "Operation Odessa," a sting effort which stretched across six countries and resulted in the capture of 36 cocaine traffickers in Greece, Colombia and the United States.

"Cooperation between Greece and the US in fighting narcotics trafficking in both of our countries has been outstanding," US ambassador in Athens Nicholas Burns said. "What we accomplished together in Operation Odessa was a landmark achievement for our increasingly strong bilateral relationship."

DEA deputy director for international operations, James F. Cloonan and Mr. Burns were due to attend the event.

"We want to recognise them for the critical support they provided in Operation Odessa, which targeted a trans-atlantic network that brought 50 tons of cocaine from Columbia to Europe," said James Soiles, a DEA representative in Athens.

The smuggling ring allegedly used ships registered in Greece to transport the cocaine. To date, more than 15 tons of the drugs have been seized.

Athens News Agency

[11] Gov't: No date set for UN-sponsored over two Cypriot communities

Athens, 21/10/1999 (ANA)

Mr. Reppas also condemned what he described as "the completely negative stance" adopted by Turkish Cypriot leader Rauf Denktash.

The Turkish side is refusing to attend negotiations unless they aim at the establishment of a confederation of two states, contrary to UN resolutions providing for a bizonal, bicommunal federation.

Asked whether there was a possibility of a four-nation meeting between Greece, Turkey, Cyprus President Glafcos Clerides and Mr. Denktash on the sidelines of the forthcoming OSCE summit in Istanbul, the government spokesman said Athens was in favour of dialogue, although he added he had no information that such a meeting would take place.

Athens News Agency

[12] Olympiakos' European hopes dashed

Athens, 21/10/1999 (ANA)

Athens News Agency

[13] 'Peace flight' by Turkish light aircraft pilots over Mykonos

Athens, 21/10/1999 (ANA)

"Relations with Greece have been improved on the ground and not just in any old way, but with a strong earthquake," Korhan Abay said. "Now it is time for the skies to lend a hand."

Mr. Abay has organised 15 single-engine and dual-engine airplanes from the Istanbul Air Club to fly over Mykonos.

"...we will dance syrtaki, maybe drink an ouzo and talk like two old friends," Mr. Abay said of the Mykonos overflight.

The "Friendship Flight" is supported by airline company Top Air, which is also inviting Turkish artists along for the ride.

Several Greek pilots are expected to be invited to fly to Bodrum in return.

Athens News Agency

[14] Meeting set between Greek, Albanian public order ministers

TIRANA, 21/10/1999 (ANA - I. Patso)

Albanian Minister Spartak Potsi said the two ministries "enjoyed an exceptional level of cooperation". He was speaking at an event at the Albanian ministry at which Greece's ambassador to Tirana, Alexandros Mallias, donated 110 bulletproof vests s ent from Greek Police (EL.AS).

The vests are destined for use by the Albanian police's special forces.

Mr. Potsi said that cooperation with Greece in the area of security and public order was an example worth emulating and praised the contribution of the Greek embassy.

According to official sources from the embassy, the cooperation between it and the Albanian public order ministry recently led to the break up of a ring involved in manufacturing bogus Greek stamps, documents and certificates.

Prime Minister Costas Simitis met for more than an hour yesterday with a delegation of monastic elders from Mount Athos, all of whom accompanied the revered icon "Axion Esti" to Athens last week.

Athens News Agency

[15] Restoration on Parthenon's western frieze approved

Athens, 21/10/1999 (ANA)

The frieze, the work of renowned ancient Athenian sculptor Phidias and his pupils, depicts equestrians from the Panathenaic procession.

The project includes removal of temporary supports, re-attachment of broken- off fragments and the filling of crevices.

Athens News Agency

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