Athens News Agency: Daily News Bulletin in English, 99-11-17

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

CONTENTS

[01] Greece on track for euro entry in early 2000, OECD says

[02] IPO for Hellenic Industrial Development Bank

[03] Hellenic Petroleum posts 67 pct profit jump

[04] Lavipharm in deal with US firm

[05] Stocks end lower, focus on small caps

[06] Drachma creeps down

[07] Three-year bond yield rises in tender

[08] Athens Foreign Exchange

[09] Gov't: 'Open agenda' for talks between Simitis, Ecevit in Istanbul

[10] Protests banned in central Athens on Friday, Saturday

[11] Karamanlis: ND views Clinton visit as means to improving Greek-US cooperation

[12] Burns calls for more emphasis on talks during upcoming Clinton visit

[13] Greek-, Turkish-American joint statement

[14] Constantopoulos criticism on Simitis-Ecevit contacts

[15] Party messages for Polytechnic anniversary

[16] G. Papandreou-Verheugen meeting focuses on EU enlargement

[17] Parliament discussion on 2000 budget begins

[18] Human rights in the EU examined at Goethe Institut event

[19] Third Community Support Framework allocations by culture ministry

[20] Greek aid to Turkey

[21] Greek military chief in Kosovo

[22] 2 British sailors charged

[23] Woman's conviction upheld, sentence increased

[01] Greece on track for euro entry in early 2000, OECD says

PARIS, 17/11/1999 (ANA)

The Paris-based organisation's six-monthly country report said the growth rate in Greece was dynamic this year and was expected to accelerate in 2000 and 2001.

Rising growth was the result of strong domestic demand combined with an increase in exports, while lower domestic spending had helped to drive down inflation, the report said.

Easing indirect taxation had helped the country's effort to achieve the Maastricht inflation criterion, although a sudden short-term rise in consumer prices could not be ruled out due to higher demand, the OECD said.

"If Greece's entry into the euro is decided on the current drachma parity, the resulting currency slide could lead to a sudden rise in inflation but at the same time boost exports," it said.

The OECD urged the government to adopt more "ambitious" targets in the drive to lower inflation ahead of an anticipated easing of monetary policy to help interest rates converge with the euro zone.

Further efforts to achieve fiscal restructuring would be needed in this direction, while tax cuts should be combined with a more austere incomes policy, the report said.

The OECD noted a slight slowdown in economic activity in the first half of 1999 due to lower exports, but forecast that the country's gross domestic product would grow by 3.25 percent by the end of the year.

Increasing demand for consumer credit was evidence of improving consumer confidence in the country.

Tourism revenues remained at satisfactory levels despite a temporary slowdown due to the Kosovo crisis, the report said.

Developments in the labour market, however, were less satisfactory with the unemployment rate rising to 11.0 percent in mid-1999, although the OECD predicted a fall to 10.0 percent of the country's labour force in the next two years.

The OECD forecast that the country's GDP growth would exceed 4.0 percent in the year 2001 with the help of major investments in the private and public sectors and a significant rise in consumer demand.

Inflation was likely to fall to 2.25 percent next year, meeting the Maastricht criterion for entry into the euro zone, the OECD said.

Greece to see "Simitis packages" : The performance of the Greek economy shows that there will be "Simitis packages" accompanying future budgets, Deputy National Economy Minister Christos Pahtas said yesterday.

Mr. Pahtas told the Athens News Agency in an interview that the outlook was good for Greece due to its forthcoming participation in European economic and monetary union.

The budget for the year 2000 was aimed at improving the public's standard of living, at the same time effecting changes in the public sector, he said.

The government has set a priority in coming years to reform and improve public administration in order to offer the public better services.

"Next year's budget is directed towards EMU participation, growth, social equity and the distribution of wealth," Mr. Pahtas said.

He said that the country's entry into the euro zone would be the culmination of an effort that started in 1993.

Mr. Pahtas forecast that the country's gross domestic product would rise by 3.5 percent this year and 3.7 percent in 2000, higher than the average EU growth rate. He said that growth rates would accelerate to four and five percent in the next few yea rs with the help of a "giant public investments programme".

The "Simitis packages" in the future would be designed to support social cohesion.

The current package was worth 470 billion drachmas, and the next one would be larger, Mr. Pahtas added.

Athens News Agency

[02] IPO for Hellenic Industrial Development Bank

Athens, 17/11/1999 (ANA)

The state-owned bank's planned entry into the bourse will be accompanied by a share capital increase, with proceeds expected to total 130 billion drachmas.

On offer are 30,081,730 new shares and 10,528,000 existing ones that together will represent 30 percent of the bank's share capital.

Development Minister Evangelos Venizelos told a shareholders' meeting that the bank would continue to be the main vehicle for industrial zones and for projects funded from the European Union's Third Community Support Framework.

Athens News Agency

[03] Hellenic Petroleum posts 67 pct profit jump

Athens, 17/11/1999 (ANA)

Consolidated profits before tax rose by 48.9 percent to 48.5 billion drachmas from 32.6 billion drachmas in January-September 1998, Hellenic Petroleum said in a statement.

The company attributed the rise to corporate restructuring and the beneficial impact of the company's listing in the second quarter of 1998.

Also aiding results were a rise in international oil prices, entry into the Hellenic Petroleum Group of the Mamidakis owned companies, and the acquisition of OKTA, a refinery in the Former Yugoslav Republic of Macedonia.

Athens News Agency

[04] Lavipharm in deal with US firm

Athens, 17/11/1999 (ANA)

Lavipharm is to manufacture the product, which will then be marketed and sold by Endo internationally.

Athens News Agency

[05] Stocks end lower, focus on small caps

Athens, 17/11/1999 (ANA)

The general index ended 0.70 percent down at 5,683.06 points, off the day's low of 5.639 points. Turnover was a moderate 290.3 billion drachmas.

Sector indices ended as follows: Banks (+0.18 pct), Leasing (+2.77 pct), Insurance (-2.70 pct), Investment (-1.22 pct), Construction (-0.29 pct), Industrials (-2.29 pct), Miscellaneous (-1.04 pct) and Holding (+1.20 pct). The parallel market index for smaller capitalisation stocks fell 1.39 percent while the FTSE/ASE 20 index for blue chip and heavily traded stocks ended 0.40 percent lower at 2,792.61 points.

Broadly, decliners led advancers by 194 to 102 with another 25 issues unchanged.

A total of 14 shares ended at the day's 8.0 percent limit up, while Development Invest, DIAS and Viosol (common) ended at the day's limit down.

NEL Lines, Keranis and Techniki Olympiaki were the most heavily traded stocks. National Bank of Greece ended at 21,450 drachmas, Alpha Credit Bank at 25,000, Commercial Bank at 23,980, Titan Cement (common) at 38,400, Hellenic Petroleum at 4,745, Intracom at 13,895, Minoan Lines at 10,000, Panafon at 3,575 and Hellenic Telecoms at 6,400.

Athens News Agency

[06] Drachma creeps down

Athens, 17/11/1999 (ANA)

The Bank of Greece sold around 80 million euros.

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

The single European currency was set at 328.710 drachmas from 328.310 drachmas in the previous session and 328.320 drachmas on Friday.

The dollar nosed down against the drachma in the wake of a steep rise on Monday.

The US currency was set at 318.160 drachmas from 318.280 drachmas a day earlier and 316.800 drachmas on Friday.

Bond trade thin awaiting US news : Trade was scant in the secondary bond market yesterday with buyers waiting for news of US rate changes.

The benchmark 10-year bond showed a yield of 6.44 percent from 6.41 percent in the previous session and 6.38 on Friday.

The yield spread over German bunds was steady at 154 basis points, the same as a day earlier, from 153 basis points to 155 basis points on Friday.

Electronic trade was sharply down at 9.0 billion drachmas from 15 billion drachmas in the previous session and 48 billion drachmas on Friday. Buy orders accounted for 6.0 billion drachmas of turnover.

Athens News Agency

[07] Three-year bond yield rises in tender

Athens, 17/11/1999 (ANA)

The average weighed interest rate for the 150 billion drachmas of three- year bonds on auction rose to 7.61 percent from 7.32 pct in the previous auction on September 21.

The paper carried a coupon of 7.6 percent.

Bids submitted totalled 305 billion drachmas, double the amount sought, reflecting continuing demand for Greek securities.

The auction, held through the market's primary dealers, was a reopening of the original issue of January 22, 1999.

The average weighed price of the bond was 99.913 with a cut-off price of 99.860.

Athens News Agency

[08] Athens Foreign Exchange

Athens, 17/11/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             315.615 322.932
Can.Dollar            215.204 220.194
Australian Dlr        202.517 207.212
Pound Sterling        511.773 523.638
Irish Punt            414.037 423.637
Pound Cyprus          565.242 578.347
Pound Malta           735.410 766.052
Turkish pound (100)     0.056   0.058
French franc           49.711  50.864
Swiss franc           203.300 208.014
Belgian franc           8.083   8.271
German Mark           166.722 170.588
Finnish Mark           54.843  56.114
Dutch Guilder         147.969 151.399
Danish Kr.             43.846  44.863
Swedish Kr.            37.746  38.621
Norwegian Kr.          39.801  40.724
Austrian Sh.           23.697  24.246
Italian lira (100)     16.840  17.231
Yen (100)             298.810 305.738
Spanish Peseta          1.960   2.006
Port. Escudo            1.627   1.665

Foreign Exchange      Buying  Selling
New York              315.615 322.932
Montreal              215.204 220.194
Sydney                202.517 207.212
London                511.773 523.638
Dublin                414.037 423.637
Nicosia               565.242 578.347
Paris                  49.711  50.864
Zurich                203.300 208.014
Brussels                8.083   8.271
Frankfurt             166.722 170.588
Helsinki               54.843  56.114
Amsterdam             147.969 151.399
Copenhagen             43.846  44.863
Stockholm              37.746  38.621
Oslo                   39.801  40.724
Vienna                 23.697  24.246
Milan                  16.840  17.231
Tokyo                 298.810 305.738
Madrid                  1.960   2.006
Lisbon                  1.627   1.665

Athens News Agency

[09] Gov't: 'Open agenda' for talks between Simitis, Ecevit in Istanbul

Athens, 17/11/1999 (ANA)

Government spokesman Dimitris Reppas said the agenda at the talks between the two prime ministers will be open, since discussions will be held on the sidelines of an official visit.

Mr. Reppas said there had not been an issue of a joint communique to be issued by the two prime ministers, adding that the two leaders will probably make separate statements afterwards.

Asked whether the Cyprus problem will be brought up at the Simitis-Ecevit talks, Mr. Reppas said "this issue is of vital importance to Greece and it will be definitely brought up at the talks".

Prime Minister Costas Simitis, who is departing on Wednesday for Istanbul to participate in the OSCE summit, is scheduled to hold separate meetings there with his counterparts from Russia, Germany, Sweden and Belgium.

Athens News Agency

[10] Protests banned in central Athens on Friday, Saturday

Athens, 17/11/1999 (ANA)

The orders stated that for "reasons of public safety" all outdoor assemblies or marches of organised groups throughout central Athens and from the airport to the centre of the Greek capital are banned Pbeginning on Friday at 3 p.m. and ending on Saturd ay at 5 p.m.

The orders, issued by police chief Giorgos Skaltsas, noted that any attempt to violate the ban will be "opposed with all legal means, while participants in such protests will be prosecuted".

Meanwhile, traffic police in Attica announced that several main boulevards and roads leading from the airport to the centre of the city via Piraeus will be closed to traffic at certain sections during the arrival and departure of the US president.

All other traffic will be directed through detours.

Athens News Agency

[11] Karamanlis: ND views Clinton visit as means to improving Greek-US cooperation

Athens, 17/11/1999 (ANA)

Mr. Karamanlis, addressing a conference of the Hellenic American Institute at a downtown Athens hotel, said emotional and extreme reactions as well as protests are of no use, adding that no political party should encourage them.

However, he criticised the government over its handling of the issue of the postponement of Mr. Clinton's visit, saying that in this way it created serious national harm because petty party expediencies preceded national interests.

He said Mr. Clinton's visit should be utilised to have Greek positions heard, while the premier gave the impression he was backtracking and was unable to handle foreign issues of major significance.

Mr. Karamanlis further said the period starting with Mr. Clinton's visit to both Greece and Turkey was very important because the OSCE summit in Istanbul was coming up and the European Union's Helsinki summit would follow where Turkey's fate in relation to the EU would be settled.

He also said Washington, as the sole superpower, had particular responsibilities in maintaining global and regional security and stability, while adding that Turkey is undermining this common interest because it was aiming at overturning the status quo in the Aegean and continued to occupy the northern part of Cyprus unimpeded.

Referring to the situation prevailing in the Balkans, Mr. Karamanlis expressed opposition to a change in borders and said the multinational character of Kosovo should be maintained. He further said particular emphasis should be placed at present to preventive diplomacy to avert a new crisis in the Balkans.

Executive bureau : Meanwhile, Mr. Karamanlis also chaired a meeting of the party's executive bureau of MPs yesterday on the issue of Mr. Clinton's visit.

The meeting was held in the presence of former PM Constantine Mitsotakis.

Summing up the conclusions of the meeting, ND spokesman Aris Spiliotopoulos said the way with which the government handled Mr. Clinton's visit was "a fiasco with irreversible national damage". He also criticised Premier Costas Simitis of being unable to handle major national issues and crises.

Outlining ND's positions, Mr. Spiliotopoulos said the party condemned extreme reactions and added that Mr. Clinton's visit was an opportunity to promote Greek positions with the aim of improving bilateral relations.

Mr. Spiliotopoulos also said the policy of the west in the Balkans has failed because we have been led de facto to a change in borders, adding that there can be no solution without the participation of Yugoslavia.

According to reports, Mr. Mitsotakis sharply criticised the government over its policy on national issues, saying that "we should all realise that we should prepare ourselves to inherit a very disagreeable situation."

The reports added that Mr. Mitsotakis said that the government itself did not want Mr. Clinton to address Parliament.

Athens News Agency

[12] Burns calls for more emphasis on talks during upcoming Clinton visit

Athens, 17/11/1999 (ANA)

Addressing a conference on Greek-US relations organised by the Hellenic American Institute, Mr. Burns said he was impressed that "all this time the press coverage" of the Mr. Clinton visit "has focused on the atmosphere and security measures to be applied and not on the substance of the visit".

Recalling that Mr. Clinton was the third US president to visit Greece - after Dwight D. Eisenhower in 1959 during the height of the Cold War and George Bush in 1991 following the end of the Gulf War - he said it was a "great irony" that much of the conc ern was centred on security measures and not about the issues to be discussed between the Greek and US leaders.

He said we were in a period when the two governments had collaborated "very closely, as never before", and "it is not good that the substance should be lost in the vortex of information on the behind-the-scenes of the visit".

Mr. Burns said the Greek and US leaderships had been working for months on the substance of the visit and the talks, which he said would "toucn on some very sensitive areas and very important ones, such as trade relations, military cooperation, the Cyprus issue and the Aegean, which must be a sea that unites rather than separates peoples".

The US envoy praised Greece's role in the Balkans and Europe, noting that it was the only European country, and NATO ally, that could "truly help the fragile democracies in the Balkans," since "Greece has a lot to teach as it is the oldest democracy in the world".

Mr. Burns made special mention of what he called the "close cooperation" between US Defense Secretary William Cohen and national defence minister Akis Tsohatzopoulos, "who have worked together on a new security architecture and have upgraded the militar y cooperation at bilateral level".

On the Cyprus issue, Mr. Burns said he was saddened that the problem remained unsolved so long, adding that Mr. Clinton, who was currently in Ankara, yesterday welcomed the proposal for restarting UN-sponsored proximity talks between Cyprus president Gl afcos Clerides and Turkish Cypriot leader Rauf Denktash aimed at finding a viable solution to the problem.

He further said Greek FM George Papandreou and US secretary of state Madeleine Albright were working closely and had direct contact, noting the important contributions of the ethnic Greek community in the US towards the good relations between the two co untries in their 170 years of diplomatic relations.

Mr. Burns predicted the success of Mr. Clinton's talks in Athens in such areas as trade, tourism, and bilateral cooperation at all levels.

Addressing himself to Greek citizens, he urged them not to see the American embassy as a fortress but rather as a "home in which you are always welcome."

Athens News Agency

[13] Greek-, Turkish-American joint statement

Athens, 17/11/1999 (ANA)

World Council of Hellenes Abroad (SAE) President Andrew Athens and Assembly of Turkish American Associations (ATAA) President Tolga Cubukcu signed the statement.

"We strongly endorse the language of Senate Resolution 198 which commends, encourages and supports recent efforts by Greece and Turkey to improve bilateral relations," the statement read.

"It is our further hope that the goodwill produced by the actions of our respective motherlands following their respective earthquakes will carry forward and grow," it added.

Athens News Agency

[14] Constantopoulos criticism on Simitis-Ecevit contacts

Athens, 17/11/1999 (ANA)

"It is a meeting with an unknown, to the Greek political forces, agenda. A meeting that seems to lead to the acceptance of exceptions and discounts on the European acquis communautaire by the Greek side, aiming at Turkey's accession to the European Union," he said.

Athens News Agency

[15] Party messages for Polytechnic anniversary

Athens, 17/11/1999 (ANA)

A joint message by Prime Minister and PASOK leader Costas Simitis as well as the party's executive bureau said the greatest honour for the Polytechnic is "for us to refuse its sale to opportunistic banners and to place ourselves at the service of a nobler idea, namely, that of a democratic Greece."

The message further said that "only national unity can make our country respected by friends and foes, only national understanding can lead us to a new era without defeats and losses, but with victories in a better future for us and our children."

The Coalition of the Left (Synaspismos) said the celebration "should be a source of inspiration and renewal of historical memory. With new struggles for peace, stability and multifaceted cooperation in the region, without the undesirable arbitrations and hegemony of US policy; for democratic and social rights, for a modern public education for all; for productive work...for a better quality of life."

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas said the mandates of the students' uprising are clear: "Resistance to the barbaric 'New World Order', no to subdued and subservient political leaderships, for national dignity, peace, social solidarity and justice", adding that "the arrival of the President of the US, at the head of the new barbarism, in our country these days constitutes a provocation to the Greek people and an affront to the Polytechnic's dead."

Prosecutors to observe rally : Meanwhile, it was announced yesterday that 25 prosecutors will supervise security measures in downtown Athens today for the rally culminating Polytechnic celebrations.

The head of the prosecuting authority has appointed 14 prosecutors to be on permanent standby, two others who will be at police headquarters and nine others who will remain at their residences on a 24-hour basis to intervene when necessary to order arrests and other measures in the event of incidents.

Regarding the premises of the Athens Polytechnic, an understanding was reached between the prosecuting authority and the faculty senate which, if it ascertains a violation of the university asylum code by non-student elements, will request the immediate intervention of the prosecuting authority.

In another development, a press conference given at noon yesterday at the Aristotelian University of Thessaloniki's Polytechnic Faculty on the occasion of the anniversary ended abruptly when dozens of members of the Communist Party of Greece's (KKE) stu dent group (PSK) entered the premises holding red flags and shouting slogans against US President Bill Clinton's visit to Greece and the government's policies.

Athens News Agency

[16] G. Papandreou-Verheugen meeting focuses on EU enlargement

BRUSSELS, 17/11/1999 (ANA - G. Zitouniati)

Mr. Papandreou, in the Belgian capital for a meeting of the Council of EU foreign ministers, discussed with Mr. Verheugen the EU enlargement process and the parameters of enlargement of particular interest to Greece, chiefly with respect to Turkey, Cyprus, Romania and Bulgaria.

In the sidelines meeting with Mr. Verheugen, Mr. Papandreou outlined the conditions he considers necessary so the course of EU entry or rapprochement with the EU of those countries would ensure and prove beneficial to stability and peace in the region and abide by the basic principles of human rights protection, peaceful settlement of differences and of the International Court of Justice at The Hague.

Mr. Papandreou set out the same Greek positions during a meeting with Commission President Romano Prodi yesterday.

The Greek minister further stressed to Mr. Verheugen the need for Cyprus' unhindered course to EU accession and disengagement of its European course from a solution to the island republic's political problem.

Athens News Agency

[17] Parliament discussion on 2000 budget begins

Athens, 17/11/1999 (ANA)

National Economy Minister Yiannos Papantoniou and Deputy Finance Minister Nikos Christodoulakis were present during this first day of the debate.

On their part, the smaller opposition parties declared they will vote down the new budget, including defence expenditures, while main opposition New Democracy reserved its statements on the issue of defence expenditures for a later date.

Athens News Agency

[18] Human rights in the EU examined at Goethe Institut event

Athens, 17/11/1999 (ANA)

Both Prime Minister Costas Simitis and Justice Minister Evangelos Yiannopoulos attended the event.

The meeting, at which an analysis was made of the entire course and the steps attempted on the issue from the period of the EEC until today in the European Union was attended by German Justice Minister Herta Daubler-Gmelin, among others.

Ms Daubler-Gmelin focused on Germany's struggles on consolidating human rights in the EU and ascertained Athens' sensitivity on the issue.

Athens News Agency

[19] Third Community Support Framework allocations by culture ministry

Athens, 17/11/1999 (ANA)

She added that of the 450 billion, 195 regard national or regional programmes; 190 billion are for regional programmes; 25 billion are border programmes and 40 billion are for computer network programmes.

Increases compared to the Second Communi ty Support Framework fund by region include 10 billion drachmas for eastern Macedonia and Thrace; 32 billion for central Macedonia; seven for western Macedonia; 12 billion for Epirus; seven billion for Thessaly; nine billion for the Ionian Islands; 19 bi llion for western Greece; 10 billion for south-central Greece; 28 billion for Attica; 16 billion for the Peloponnese; 14 billion for the islands of the northern Aegean; 16 billion for the islands of the southern Aegean and 10 billion for Crete.

Athens News Agency

[20] Greek aid to Turkey

Athens, 17/11/1999 (ANA)

The two aircraft carried three doctors, members of the Doctors of the World organisation, a mini-bus, 350 space heaters and 3,500 blankets to Topel, an airport in northern Turkey.

The aid was part of Athens' efforts to alleviate the repercussions of the devastating earthquake that hit the neighbouring country on Nov. 12.

Athens News Agency

[21] Greek military chief in Kosovo

Athens, 17/11/1999 (ANA)

Athens News Agency

[22] 2 British sailors charged

Athens, 17/11/1999 (ANA)

Authorities arrested Graham Barnes, 27, and Levon Sandercock, 19, both serving aboard the warship "HMS Edinburgh", for damaging two cars and one motorcycle. The vessel is currently anchored at the Thessaloniki port.

Both men are scheduled to be brought before a public investigator.

Athens News Agency

[23] Woman's conviction upheld, sentence increased

Athens, 17/11/1999 (ANA)

The initial prison term was set at four years while the appeals court increased the sentence to nine years and 10 months, along with a three- million-drachma fine.

Georgia Papaioannou was convicted of hiring two men to rape and assault the wife of her former married lover.

Athens News Agency

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