Athens News Agency: Daily News Bulletin in English, 00-07-29

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

CONTENTS

[01] Gov't approves 5-year budget for armaments procurement

[02] Tsohatzopoulos in Albania to observe Greek unit's departure

[03] Health Minister says new National Health System aims at new flexible and integrated health system

[04] Government says will facilitate passengers leaving for the islands through the port of Rafina

[05] European Justice and Internal Affairs Ministers Council starts in Marseille

[06] Karamanlis visits Sykia Dam

[07] European Commission continues legal procedure against Greece concerning road assistance

[08] Gov't to compensate farmers for damage due to bad weather

[09] Prof. Alexakis formally named new ASE president

[10] Gov't proposes 3.17 percent pay rise for civil servants

[11] Greek, Turkish central bankers meet in Athens

[12] Industrial production up 6.2 percent in May yr/yr

[13] Credit expansion slows moderately in May

[14] Greek stocks remain range bound

[15] Greece to auction 10-year bond issue on Tuesday

[16] Authorities say Albania is the recipient of a big number of cars stolen in western European countries

[17] Events continue along Ardas River in the framework of the 6th International Youth Meeting

[18] Heat wave receding

[19] President Clerides and UN Special Adviser hold private meeting

[20] Union of Cyprus Journalists condemn maltreatment of Turkish Cypriot journalists

[01] Gov't approves 5-year budget for armaments procurement

Athens, 29/07/2000 (ANA)

Following a meeting of the Government's ministerial Council on Foreign Affairs and Defense (KYSEA), chaired by Prime Minister Costas Simitis, Defense Minister Akis Tsohatzopoulos said procurement contracts for a new main battle tank (MBT) for the Hellenic Army and a medium-range transport plane for the Hellenic Air Force will be concluded by the end of 2001.

He also said a wide-ranging purchase contract for the fourth-generation Eurofighter warplane, totalling 1.7 trillion drachmas, will be tabled in Parliament for approval in early autumn, thereby allowing for its signing by October.

Out of the approximately 3.95 trillion drachmas envisioned as financing for the armaments program, 2.25 trillion will be borrowed and the remainder will come from the state budget, it was announced. The initial proposal by the national defense ministry called for spending totalling 4.4 trillion drachmas.

Government spokesman Dimitris Reppas noted later that Greece spent on defense approximately 2.7 percent of GDP, proportionately higher than any other EU member-state.

"The aim of these programs is to safeguard peace in the broader region, to defend our territorial integrity, national independence and sovereignty, and the security of citizens, but also Greece's presence in all international initiatives in the Balkans and the broader region, according to international treaties," he said.

Regarding the period after 2005, Reppas said the government hoped conditions would then be ardently different, making unnecessary the continuation of similar armaments programs.

"We believe political and military conditions will be completely different then, in a way that will lessen the burden on our economy," he said.

Opposition reactions: The Communist Party of Greece said in a statement that the new five-year armaments program was one more link in the chain of NATO armaments of Greece, mainly absorbing the people's money rather than buttressing the country defense shield, as the government has claimed for years.

The Coalition of the Left said Friday's decisions by KYSEA made it clear that the economic compression of social spending due to the cost of defense programs and the mortgaging of the country's development prospects would continue for many years to come.

The Democratic Social Movement said that the approval of the new armaments program in mid-summer raised many questions and was in full contradiction to the government's hypocritical statements about the creation of a climate of friendship with neighboring Turkey. (One US dollar equals roughly 356 drachmas)

[02] Tsohatzopoulos in Albania to observe Greek unit's departure

Athens, 29/07/2000 (ANA)

The contingent, part of a one-time larger multinational presence, was sent to Albania in the aftermath of severe political and economic turmoil in that country following the collapse of several pyramid schemes.

The Greek minister will hold talks with the neighboring country's leadership on issues of bilateral cooperation, it was announced.

According to reports, the 200 Greek troops will depart Albania on Aug 1, whereas some 90 military specialists will remain in order to continue various training missions.

[03] Health Minister says new National Health System aims at new flexible and integrated health system

Athens, 29/07/2000 (ANA)

Doctors entering the new National Health System for the first time will not be permanent and in order to become permanent after five years of service, after an open proclamation is made for their post, they will have to face three successful evaluations.

A Unified Funding Agency will be created for the country's biggest insurance funds with the establishment of an Organization for the Management of Health Resources. Health benefits will continue to be provided by the insurance funds' health agencies and departments.

Papadopoulos said the reforms will be implemented over a period of six years and will follow a gradual and controlled application through disciplined procedures, time schedules and continuous evaluations.

Speaking at the cabinet meeting, Prime Minister Costas Simitis said reforming the National Health System (ESY), the insurance system and combatting unemployment constitute the triptych of the government's immediate priorities, according to government spokesman Dimitris Reppas.

The government's aim, Simitis added, is the improvement and upgrading of social protection in the country. He recognized that phenomena of corruption and extravagance exist but do not mean that ESY is falling apart.

Commenting on the government's new measures to reform ESY, main opposition New Democracy party spokesman for health and welfare issues Nikitas Kaklamanis said the new minister Papadopoulos has admitted, through the proposals, the complete failure of all the previous reforms. He added that ND would attend the dialogue requested by the minister, not with a negative attitude but with proposals and positions, which it will present publicly after examining analytically the measures announced.

[04] Government says will facilitate passengers leaving for the islands through the port of Rafina

Athens, 29/07/2000 (ANA)

"It is inconceivable for them to be undertaking such initiatives during peak periods," he said.

Meanwhile, prosecution has been launched against four citizens of Rafina for obstruction, while one of them has also been prosecuted for resisting authority. They reportedly participated in the blocking of a street in the area to prevent traffic to and from the town's port.

The mobilization of Rafina citizens has been urged by the municipal council in the framework of protests against the excessive increase of passengers traveling to the islands and parking their cars anywhere in the town.

They also claim that the state has not tended to infrastructure in the region and at the port to facilitate thousands of travelers, resulting in the creation of major problems for local citizens such as pollution and noise.

[05] European Justice and Internal Affairs Ministers Council starts in Marseille

MARSEILLE, 29/07/2000 (ANA)

It is the first such meeting during the European Union's French presidency and is considered important due to the fact that conclusions reached at the Tampere summit in October 1999 will be applied.

Justice Minister Mihalis Stathopoulos and two Public Order Ministry representatives represent Greece at the meeting.

[06] Karamanlis visits Sykia Dam

Athens, 29/07/2000 (ANA)

Karamanlis said it was of utmost urgency to start the major project for the diversion of the Aheloos river and the development of a hydroelectric station for irrigation of the Thessaly region and the ecological restoration of the region.

[07] European Commission continues legal procedure against Greece concerning road assistance

BRUSSELS, 29/07/2000 (ANA - M. Spinthourakis)

The Commission said in its announcement that according to the European Union's directive on damage insurance (73/239/EEC), insurance companies have the possibility of providing road assistance in all EU member-states, either with their own network of crane-carrying vehicles (in which case they have to seek per-mission to provide road assistance) or by offering such services to third parties.

Explaining its decision to promote the procedure of resorting to the European Court, the Commission said it received various re-ports from insurance companies of other member-states that in practice they were not in a position to provide road assistance in Greece because they were unable to use the services of local firms.

[08] Gov't to compensate farmers for damage due to bad weather

Athens, 29/07/2000 (ANA)

The allocation from the agriculture ministry's budget is 2.1 billion drachmas for fiscal 2000 and 1.4 billion drachmas for fiscal 2001.

[09] Prof. Alexakis formally named new ASE president

Athens, 29/07/2000 (ANA)

The change at the helm of the Athens bourse coincides with the anticipated upgrading of the ASE from an "emerging" to a "mature" market.

National economy and finance minister Yannos Papantoniou told reporters before a Cabinet meeting that Kouniakis had tendered his resignation several months ago for personal reasons, and the request was accepted despite the fact that he had "contributed very substantively to the upgrading and modernization of the Greek stock market".

He also said that Kouniakis, whose resignation was accepted on Thursday, had contributed greatly to the effort to modernize the Greek capital market, adding that Alexakis was taking up the post after "an exceptionally successful course as president of the ADEX".

Questioned on the prospect of other changes, Papantoniou replied "not on the bourse".

ASE's new chairman to seek equation with European bourses: The Athens Stock Exchange's strategy is based on actions contributing to the market's dynamic course and its equation with other European markets, ASE's new chairman, Panagiotis Alexakis said on Friday.

Speaking to reporters after his appointment as head of the Greek stock market, Alexakis said: "We will continue towards the same direction (with our predecessor) with a vision of a strong and secure stock market."

He said that measures to be taken in the short-term included supporting a new stock market for rapidly growing companies, promoting Greek certificates, strengthening the market's marketing abroad and developing an electronic link between the stock market and foreign investors.

[10] Gov't proposes 3.17 percent pay rise for civil servants

Athens, 29/07/2000 (ANA)

Deputy Finance Minister Giorgos Drys said the government's final proposals amounted to a 3.17 percent rise, while pensioners would receive 5.7 percent more.

He said the government had exhausted all margins, and besides working people, it also had to meet the cost of protecting unemployed people.

[11] Greek, Turkish central bankers meet in Athens

Athens, 29/07/2000 (ANA)

Outlining his country's three-year program to combat inflation, Ercel said he wished for closer cooperation between the two countries' central banks.

Turkey's counter-inflationary plan will enable a lowering of long-term interest rates, in turn helping to boost growth, he said.

"After policy changes, experiments and changes of government every eight months, on average, responsible politicians in my country had no other choice but to back such a program," Ercel said.

[12] Industrial production up 6.2 percent in May yr/yr

Athens, 29/07/2000 (ANA)

The mining production index increased 14.4 percent in the month, the manufacturing index rose 4.3 percent and the electricity-natural gas index was 11.5 percent higher in May.

The mining index was 14.04 percent higher in the first five months of 2000, the manufacturing index rose 5.35 percent and the electricity-natural gas index increased 14.97 percent.

[13] Credit expansion slows moderately in May

Athens, 29/07/2000 (ANA)

The central bank said in a report that credit to the public sector fell to 13.6 percent in May from 15.0 pct in April while credit to the private sector eased to 17.6 pct from 18.1 pct over the same period.

Credit expansion rates slowed both in the manufacturing and trade sectors with year-on-year growth rates of 8.8 percent and 18.0 percent respectively.

Housing loan rates slowed to 25.7 pct in May from 25.4 pct in April, while consumer credit expansion was almost unchanged to 18.9 pct from 18.6 pct.

Money supply growth, however, accelerated in May with the M4N index rising to 9.1 percent from 8.2 percent in the previous month.

The rise is attributed to increased credit expansion to the private sector.

Money supply growth, measured by the M4N index, rose 8.9 percent in the second quarter of 2000, up from an official target for an annual increase of 5-7 percent.

Money circulation rose to 7.6 percent in May, private savings were stable at 10.5 percent, while repos rose slightly in the month.

[14] Greek stocks remain range bound

Athens, 29/07/2000 (ANA)

Trading conditions improved by renewed buying interest in smaller capitalization stocks, with a wave of late buying in blue chips pushing the market higher at the close.

The general index ended at 3,997,99 points, up 0.62 percent, off the day's highs of 4,004 points. It ended the week 1.39 percent lower. Turnover was 74.4 billion drachmas.

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 0.48 percent to 2,231.79 points and the FTSE/ASE 40 index rising 0.95 percent to 562.93 points.

The parallel market index for smaller capitalization stocks soared 3.72 percent to 749.83 points.

Daios Plastics, Sex Form, Dionik, Hellenic Telecoms, Astir Palace Hotel and Intracom were the most heavily traded stocks.

Equity futures rise, tracking Athens bourse: Equity futures traded on the Athens Derivatives Exchange finished higher on Friday, in line with the indices on which they are based.

The FTSE/ASE 20 index closed 0.48 percent up, and the FTSE/ASE 40 ended 0.95 percent higher.

Turnover was 7.83 billion drachmas from 7.36 billion drachmas a day earlier.

A total of 1,197 contracts were traded on the FTSE/ASE 20 with turnover at 5.39 billion drachmas.

On the FTSE/ASE 40 index, 1,074 contracts changed hands on turnover of 2.44 billion drachmas.

[15] Greece to auction 10-year bond issue on Tuesday

Athens, 29/07/2000 (ANA)

The issue is a re-opening of a May 19, 2010 bond. Settlement date was set Friday, August 4.

[16] Authorities say Albania is the recipient of a big number of cars stolen in western European countries

Athens, 29/07/2000 (ANA)

Until recently, an open market for luxury cars operated in the town of Durres, most of which were stolen. The police raided the market one day and rounded up 250 luxury cars and ascertained that a big number of them had been stolen.

The general director of the Albanian police Veli Miftari said that half or more of luxury cars circulating in Albania, and they are many, are stolen. They are primarily brought through Montenegro, while Italy is also an exit to Albania for cars stolen in Germany, Switzerland and even Spain.

[17] Events continue along Ardas River in the framework of the 6th International Youth Meeting

Athens, 29/07/2000 (ANA)

This year's meeting is offering special experiences on the banks of the River Ardas with concerts by well-known Greek artists and foreign groups.

Apart from the concerts, which are taking place at two locations, other events are taking place such as, among others, beach volley, motto-cross and a painting exhibition.

The "Ardas" events, which started in 1995, are organized by the municipality of Nea Vyssa and the local council of Kastanies with support by the Young Generation General Secretariat.

[18] Heat wave receding

Athens, 29/07/2000 (ANA)

[19] President Clerides and UN Special Adviser hold private meeting

GENEVA, 29/07/2000 (CNA/ANA)

The meeting, which took place at the hotel where President Clerides and the Cypriot delegation are residing, was at the request of de Soto.

No statements were made after the meeting, respecting a news blackout requested by the UN Secretary General.

Government spokesman says Cyprus' participation in European institutions important for country's security GENEVA, 29/07/2000 CNA/ANA)

Government Spokesman Michalis Papapetrou stressed on Friday that Cyprus' participation in all European institutions, including that of Common Foreign and Security Policy, is important to the country's security.

Speaking from Geneva, where he is participating in the Cypriot delegation to the UN-led proximity talks on Cyprus, Papapetrou also expressed the conviction the EU would not complain for non-participation of Cypriot officers in its forces, if President

Glafcos Clerides' proposal for demilitarization of the island is accepted.

Papapetrou said Cyprus would participate in non-military activates of the force, such as peacekeeping missions, with some 150 officers.

The government believes Cyprus' involvement in institutions such as the Common Foreign and Security Policy further assists its efforts towards European Union membership, noting at the same time that the island's security concerns are better served.

Cyprus together with the other 12 candidate countries for accession to the European Union as well as Norway and Iceland met on Thursday in Brussels with the 15 EU member-states who briefed them on issues concerning Common Foreign and Security Policy and ways of cooperation.

[20] Union of Cyprus Journalists condemn maltreatment of Turkish Cypriot journalists

NICOSIA, 29/07/2000 (CNA/ANA)

It its letters, the UCJ notes that "eight Turkish Cypriot journalists were attacked and wounded by heavily armed forces of the Denktash (Turkish Cypriot leader) regime in the Turkish-controlled part of Nicosia, while covering on July 24 a demonstration by thousands of Turkish Cypriots protesting the loss of their bank deposits", after six banks went bankrupt.

The UCJ notes that dozens of Turkish Cypriot journalists yesterday staged a silent protest outside the main headquarters of the illegal "police force", deploring the assaults and "arrests" of press people during the July 24 demonstration.

It furthermore requests the "solidarity once more" of the receivers of the letters.

During the July 24 clashes, 18 people were injured when "police" used truncheons, tear gas and pressurized water to disperse a 3,000-strong crowd, while some 60 people were reported to have been arrested.

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