Shares slump on rumors of rate-cut postponement: Equities on the Athens Stock Exchange finished down on Tuesday on rumors that an anticipated central bank rate cut would be postponed.

Further hampering trade were technical problems in the electronic trading system that left players, mainly institutional, in the dark about the state of the market for much of the session.

Finally, the Bank of Greece announced a rate cut of 75 basis points effective on Wednesday but the move came to late to restore sentiment on the bourse.

The general index finished 1.97 percent lower at 3,612.66 points, with turnover slightly higher than the previous session at 114.03 billion drachmas.

The FTSE/ASE 20 index for blue chip and heavily traded stocks closed 1.52 percent down, while the FTSE/ASE 40 index for medium capitalization shares fell by 2.54 percent.

Sector indices ended as follows: Banks: -1.05% Leasing: -2.84% Insurance: -2.66% Investment: -1.31% Construction: -2.88% Industrials: -3.00% Miscellaneous: -3.22 Holding: -3.18

The parallel market for smaller capitalization stocks ended 3.36 percent down.

Of 355 shares traded, declines led advances at 302 to 44 with nine remaining unchanged.

The most heavily traded stocks were National Bank of Greece, Piraeus Leasing and Q&R.

Main closing share prices (in drachmas): National Bank: 14,755 Alpha Bank: 13,350 Eurobank: 7,560 Lambrakis Press: 5,925 Hellenic Petroleum: 3,715 Commercial Bank: 18,145 Intracom: 9,340 Hellenic Telecoms: 5,950 Titan Cement (c): 14,590

Equity futures end down, tracking Athens bourse: Equity futures traded on the Athens Derivatives Exchange finished lower on Tuesday, in line with the bourse indices on which they are based.

The FTSE/ASE 20 index closed 1.52 percent down, and the FTSE/ASE 40 ended 2.54 percent lower.

Turnover was 12.6 billion drachmas.

A total of 2,389 contracts were traded on the FTSE/ASE 20 with turnover at 10.2 billion drachmas.

On the FTSE/ASE 40 index, 1,366 contracts changed hands on turnover of 2.4 billion drachmas.

Bond prices drop in sell-off: Bond prices in the domestic secondary market on Tuesday finished lower in moderate trade.

The Greek benchmark 10-year bond showed a yield of 5.64 percent from 5.59 percent in the previous session.

The Greek paper's yield spread over German bunds was 61 basis points from 63 basis points a day earlier.

Turnover through the central bank's electronic system totalled 165 billion drachmas from 212 billion drachmas in the session before.

Buy orders accounted for around 30 billion drachmas of trade.

Yield drops in gov't bond auction: The average weighted yield on three-year bonds auctioned by the government on Tuesday fell sharply to 5.01 percent from 5.64 percent in the last auction, held in October, the finance ministry said.

Auctioned to the market's primary dealers were 120 billion drachmas of paper with an annual coupon of 5.9 percent.

Offers totalled 579 billion drachmas in the sale, which was almost five times oversubscribed.

Drachma down vs. euro, dollar: The drachma on Tuesday ended lower against the euro and the US dollar in the domestic foreign exchange market.

At the central bank's daily fixing, the euro was set at 340.740 drachmas from 340.730 drachmas in the previous session.

Also at the fix, the dollar was set at 387.620 drachmas from 386.600 drachmas a trading day earlier.

Budget revenue surplus hits Dr 765 bln: The budget's revenue surplus rose to 765 billion drachmas in January-November, the finance ministry said on Tuesday.

Revenue in the same period rose by 11.7 percent against a target of 3.4 percent growth set in the budget for 2000, the ministry said in a statement.

In November, the rise in revenue was 7.0 percent.

Among categories of revenue, the sharpest rise in November was shown in Value Added Tax, which jumped 34 percent.

[11] Greece to grant 22.6 million euro in aid package to Yugoslavia

BRUSSELS, 13/12/2000 (ANA - B. Demiri)

Greece will grant 17.6 million euro for immediate fiscal support, 4.2 million euro for foodstuffs, 80,000 euro in medical assistance and 780,000 euro in humanitarian aid.

[12] OTE Consulting sets up subsidiary in Romania

Athens, 13/12/2000 (ANA)

The new firm, named Advanced Technical and Business Consulting SRL has start-up capital of $100,000, the Greek company said in a statement.

Spurring the move was a $2.76-million deal OTE Consulting signed with Rom Telecom in October under which it would design a new network for the national telecom in Bucharest, the neighboring country's capital, the statement said.

[13] OSPA trade union federation warns of protest action over government bid to privatize Olympic Airways

Athens, 13/12/2000 (ANA)

The union says it is determined to make use of all legal avenues, as well as industrial mobilization, in order to keep OA intact and protect the rights of its workforce. This includes a campaign to inform public opinion during the holidays, through pickets at airports, motorway toll posts and market places and a seminar with the participation of parties, functionaries and other bodies to form a united front for resistance and solidarity.

OSPA charges that the invitation extended by the government to prospective foreign bidders for a strategic partnership in OA is deliberately general and vague and gives the impression that the government is trying to "shed" its political responsibilities for OA's present plight, as well as endangering the professional future of its 6,700 employees. The union insists that the company should remain state-run.

Finally, the union said it would seek to talk with the government, after which it would organize an open conference in the first half of January for trade unionists and other bodies.

[14] Parliament ratifies two most controversial clauses in labor bill

Athens, 13/12/2000 (ANA)

The clauses 5 and 9 were ratified with 138 votes in favor and 128 against.

Clause 5 enables businesses, after an agreement has been reached with employees, to distribute 138 working hours throughout a year with an increased number of working hours in certain peak periods and a decreased number of working hours in periods of recession and on condition that an average 38-hour workweek will be enacted without employees' salaries being reduced.

Clause 9 anticipates that in the case of businesses employing between 20 and 200 people, the dismissal of five employees will be considered a "mass" dismissal from now on.

[15] The government expects to have bill on state insurance ready by mid-2001

Athens, 13/12/2000 (ANA)

He said that the government had asked a foreign financial house to examine the issue and was expecting its report at the start of the new year.

Immediately afterward, Reppas said, the government would invite workers and employers to begin dialogue, which is expected to finish before May.

The spokesman said that the new measures would not affect "mature insurance rights" and that those who were near pension able age would get the amounts provided under present law.

[16] New Greek-Japanese chamber to focus on bilateral trade

Athens, 13/12/2000 (ANA)

The new chamber comes six years after a Greek-Japanese business union was first established.

According to the new chamber's leadership, priorities include increasing imports to Japan in order to help reverse Greece's large negative trade balance with the Far East nation; attracting Japanese investments and know-how to the east Mediterranean country; exploiting Greece's entrepreneurial inroads and position in the Balkans as well as presenting a clearer picture of the country's potential to Japanese business circles.

One of the areas already experiencing noteworthy growth is that of tourism, as Greece ranks as one of the top European destinations for Japanese tourists.

Well-known local university professor Panayiotis Athanassopoulos was elected as the first president of the chamber, with Mitsui firm's H. Murakami, an Athens-based executive, chosen as one of its vice-presidents.

Additionally, National Bank of Greece governor Theodoros Karatzas is one of four board members.

Among others, Tokyo's ambassador to Athens, Motoi Ohkubo, attended the ceremony.

[17] Laliotis presents facts and figures regarding ministry's record on environmental protection

Athens, 13/12/2000 (ANA)

Outlining the ministry's activities to protect, highlight and manage the natural environment, the minister said that there were

268 such protected areas within the country, for which the government had allocated 19.5 billion drachmas between 1995 and 2000 that were being gradually absorbed by various projects currently underway.

According to Laliotis, the 3rd Community Support Framework provided 16.5 billion drachmas to continue and complete programs for the protection and improvement of the natural environment, as well as new programs arising by making use of the results of national planning.

The minister also pointed out that a project to restore the ecosystem of the Karla Lake in Thessaly had been included in the ministry's planning as an individual program with funds of 45 billion drachmas.

The Environment minister said that the Organization for Economic Cooperation and Development (OECD) had recognized that Greece had made great efforts in recent years to preserve and manage its ecosystems and protected areas, and to take measures for the promotion of environmental programs.

Asked about the government's attempt to change article 24 of the constitution on the protection of forests - a move condemned by environmentalists in Greece - Laliotis said that the proposed amendment was now being discussed so as to find the best possible compromise.

With regard to the role of the Council of State, which had thrown out the proposed amendment as unconstitutional, Laliotis said that the role of Greece's highest administrative court had to be defined. "We can't have the CoS legislating," he said, "that is the work of Parliament."

[18] Aegean ministry put in charge of natural and man-made environment on Aegean islands

Athens, 13/12/2000 (ANA)

During a press conference on Tuesday, Aegean Minister Nikos Sifounakis said the ministry would now have the powers it needed to carry out its contemporary role and acquire the means to process and implement new policies. He stressed that the Aegean ministry had been operating under the same legal status since it was founded 15 years ago, even though the situation on the islands had changed rapidly.

As of January 1, 2001, he said, the ministry would be in charge of approving and monitoring building work of all kinds, including on the island's traditional architecture, arbitrate objections, carry out and assign surveying work and carry out public works.

[19] Transport and communications ministry issues new civil aviation regulations, postal service criteria

Athens, 13/12/2000 (ANA)

The new regulations will apply in all Greek airports, public or private, and all facilities outside the limits of airports that assist in the airports' operation and serve flights by Greek airline companies.

The new rules aim to ensure safety, regularity and effectiveness in civil aviation and to outline procedures, practices and measures to avoid and deal with activities aimed against civil aviation on the ground or in the air.

The new code has been sent to the Public Order ministry, after which it will be presented to the Council of State.

Meanwhile, Deputy Communications Minister Alekos Voulgaris established the criteria for setting up a postal service within Greece in a decision signed on Tuesday.

According to the ministry decision, postal companies must offer services of the same quality at accessible prices to all Greek citizens, regardless of where they live within the country, and on all days of the working week.

The Greek Post Offices will undertake the postal service in Greece, since the deadline for bids for partnership or management of the Greek Post Offices by foreign investors ended early on Tuesday morning. A deadline for offers for the Post Office Savings Accounts ends on Wednesday.

[20] Negotiations with abductors of military observers' may yield results

Athens, 13/12/2000 (ANA)

According to the official, abductors may release the two men as early as Tuesday evening.

Greek Captain Efstathios Kokkinidis and a Polish colonel were abducted last Sunday during a patrol in the area.

Negotiators are continuing to stay in Abkhazia's Konto gorge, while the reports said the UN observers are not pulling out of Abkhazia, but were merely stopping their activities in the gorge temporarily due to Sunday's abduction.

[21] Botsis journalism awards presented by Stephanopoulos

Athens, 13/12/2000 (ANA)

The "Athanasios Vassilios Botsis Foundation for the Promotion of Journalism" has been awarding prizes to journalists for their exceptional work and focus on the code of ethics.

Television reporter Alexis Papahelas, Reuters Photojournalist Yiannis Behrakis, Dimitris Gousidis, Yiannis Argyriou and Nina Vlahou were honored this year for the exemplary work in journalism.

Representatives of the press, political parties and journalism unions were present at the event.

[22] Athens 2004 team presents progress of projects to IOC executive committee

Athens, 13/12/2000 (ANA)

ATHOC President Gianna Angelopoulos-Daskalaki heads the Greek delegation, which included ATHOC advisors Spyros Kapralos, Marton Simicek and Yiannis Pyrgiotis.

The IOC executive committee was chaired by IOC President Juan Antonio Samaranch, vice presidents Anita De Franz, Keba Mbaye, Richard Kevan Gosper, Thomas Bach, IOC executive committee members Un Yong Kim, Marc Hodler, Jacques Rogge, Zhenliang He, Gunilla Lindberg, Franco Carraro, Denis Oswald, Ottavio Cinquanta, Mario Vazquez Rana, Sergey Bubka and IOC member Richard Pound.

Following the presentation Daskalaki said that ICO executive committee members' statements were positive, adding "Athens is again on the right course, the work we have completed is important and is recognized".

She noted that the satisfactory progress of projects was due to "our harmonious cooperation with the government and personally with the (Greek) Prime Minister Costas Simitis and public agencies ... and to the strenuous efforts of all the staff and employees of Athens 2004".

[23] Venizelos and Floridis discuss upcoming bill to reform sports sector

Athens, 13/12/2000 (ANA)

In statements afterward, Venizelos said that the bill intends to address five major problems, including financial transparency in football clubs and other sports organizations, regulating judicial proceedings related to sports, refereeing, soccer violence and doping.

[24] Athens News Agency to host Olympics coverage seminar

Athens, 13/12/2000 (ANA)

Participants include the general directors and 25 other officials from the ABNA agencies, hailing from Albania, Bulgaria, Yugoslavia, Greece, Moldova, the Former Yugoslav Republic of Macedonia (FYROM), Romania and Turkey.

Greek Deputy Sports Minister George Floridis and Athens 2004 Olympics coordinating committee (ATHOC) President Yianna Angelopoulos Daskalaki have been invited to address the seminar.

The purpose of the seminar is to develop conditions for joint coverage of the Athens Games by ABNA members as well as to provide constant, reliable and the adequate news gathering for subscribers in the region.

[25] Turkey given 'clear message' in Nice, spokesman says

NICOSIA, 13/12/2000 (CNA/ANA)

Papapetrou also said statements made by the American Permanent Representative to the UN Richard Holbrooke, who was personally involved in the Cyprus peace effort, on the Turkish side's stance towards the UN-led proximity talks could also be viewed in this framework.

"The government's assessment is that the statement by the Security Council President and de Soto's statements add to the Nice decisions, where the 15 sent a message to Turkey and Turkish Cypriot leader Rauf Denktash as to how they expect them to act," Papapetrou said.

Alvaro de Soto, the UN Secretary-General's Special Adviser for Cyprus who has been conducting the proximity talks since they opened last December, on Monday briefed the Security Council members on his effort.

After the meeting Council President Sergey Lavrov said the members "welcomed and supported his (de Soto's) intention to continue with the process he initiated in November 1999 and urged all concerned to cooperate fully with him."

The spokesman noted de Soto on Monday said he would not accept Denktash's withdrawal from the talks and that the process would continue.

De Soto has conducted five rounds of proximity talks so far and the UN chief invited the two sides to resume talks in Geneva late January.

The Turkish Cypriot leader has said that the proximity talks, aimed at reaching a comprehensive settlement in Cyprus, divided since Turkish troops occupied 37 percent of its territory in 1974, have served their purpose and have come to an end.

Papapetrou took note of the Council president's reference to the continuation of the UN process and his call to all concerned to cooperate.

It is obvious that the statements made by Mr. Holbrooke also lie within this framework, he added.

According to the Athens News Agency, in statements to a Turkish newspaper the American official said the Turkish Cypriot leader's attitude is making the effort for a Cyprus settlement difficult.

Holbrooke also said that the main obstacle in the Cyprus effort is the fact that Denktash rejects a discussion if his conditions regarding the outcome are not met.

The Cyprus government spokesman said Ankara and Denktash are going against the international community's will and are not acting in line with Turkey's obligations, making special reference to the Turkish sides decision regarding the UN-led peace effort.

The Cyprus question is mentioned in both the Nice Council conclusions and Turkey's accession partnership agreement with the EU, reached earlier this month.

Papapetrou expressed the view that the period until Cyprus concludes its accession negotiations with the EU is crucial as Turkey will have to tackle the dilemmas it faces and must reach some decisions regarding its European course.

Cyprus opened accession talks in 1998 and is considered to lead in the process of adapting to the European laws and regulations.

The spokesman also said that Nicosia would welcome any changes in Turkey due to its EU course as this would have a bearing on the Cyprus peace effort.

[26] Security Council gives full backing to UN chief's efforts

NICOSIA, 13/12/2000 (CNA/ANA)

They also called on all concerned to cooperate fully with Kofi Annan towards this goal.

Speaking after a Council briefing by Annan's Special Adviser on Cyprus Alvaro de Soto, the current president of the Council, Russian Permanent Representative Sergey Lavrov, said "Council members gave their full support to the Secretary General's efforts to achieve a comprehensive settlement to the Cyprus problem."

"They welcomed and supported his intention to continue with the process he initiated in November 1999 and urged all concerned to cooperate fully with him," Lavrov told the press after the briefing.

Alvaro de Soto has chaired five rounds of proximity talks between the Greek and Turkish Cypriot sides since last December and expects to resume talks in late January.

Annan has already invited the two sides for a fresh round of talks. Turkish Cypriot leader Rauf Denktash has said the proximity talks have "served their purpose and have come to an end." He now demands "state to state" talks in a bid to gain recognition of his self-styled regime in Turkish occupied Cyprus.

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