Athens News Agency: Daily News Bulletin in English, 02-01-03

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

CONTENTS

[01] Greeks give emotional welcome to euro currency

[02] Bullet in roof of ND leader's car mystifies security team

[03] Gov’t says employment top policy priority

[04] Trade confederation says common currency a great challenge

[05] Greek PMI index up in December

[06] More than 18 billion drachmas in new private investment in NE Greece in 2001

[07] Greek stocks jump 1.38 pct in first session of 2002

[08] 200 immigrants located off Crete reach landfall

[09] Earthquake measuring 4.9 Richter in Messinia

[10] Fewer traffic accidents in Thessaloniki in 2001

[11] Concrete steps expected on issue of missing persons

[01] Greeks give emotional welcome to euro currency

Athens, 03/01/2002 (ANA)

The real test of the euro will be on Thursday, when the Greek market resumes normal operations (shops remained closed on Wednesday in an extended New Year's holiday).

Initial problems in the euro circulation were focused: on the awkward feeling of most Greeks by the appearance of the new currency; in large queues created in several banks and public services because of delays in otherwise ordinary cash transactions with the euro currency; and a relative lack of small value banknotes and euro coins.

The situation is expected to improve on Thursday with the operation of supermarkets and department stores which are expected to supply consumers with the necessary euro coins and small value banknotes.

Development ministry and the economic crime squad agency are expected to intensify their inspections in the market in an effort to combat any speculative moves and to protect consumers to unjustified price increases.

Premier visits bank branches on euro's first day on the street: Prime Minister Costas Simitis on Wednesday visited bank branches in Athens to see for himself the results of the government's efforts to move the Greek economy smoothly from the drachma to the euro.

Simitis visited bank branches of National Bank of Greece, Eurobank, Alpha Bank and Agricultural Bank and spoke with the employees and customers, getting a personal feel of how the average Greek feels about the new currency.

"The currency transfer was smooth in the bank branches I visited, there are no special problems," Simitis said, adding that "the employees and the public should get use to it (euro) and this takes time, more so than transactions with drachmas."

"I believe, however, that the people want a smooth, fast development and they are cooperating. The banks are ready and for this I believe that we will overcome whichever difficulties very soon," he said.

"In any case, it is a great opportunity during which we will be able to organize our economy better and for this reason we have to work," he concluded.

Euro changeover process satisfactory, Christodoulakis says: Many things and policies will change after the introduction of the euro currency, Economy and Finance Minister Nikos Christodoulakis said on Wednesday and noted that the second day of circulation of the new currency was much more satisfactory compared with the first day.

"The second day signals the start of a new era for a strong European economy. We must face new challenges and eurozone member-states should take advantage of benefits bringing the new currency," he said.

Christodoulakis noted that these benefits were the result of lower cost products and lower money costs for businesses. "The big challenge, however, is to adjust to a new environment and to set the conditions that will lead us to real convergence," he said.

"Our priority is to boost employment," Christodoulakis stressed. "If a significant part of our society does not participate in the production process there could be no real convergence."

Christodoulakis acknowledged that there were some minor problems in adjusting with the euro currency and noted that most of them have already been solved.

Greece among countries adjusting rapidly to Euro transition: The transition to the euro is developing smoothly and without any problems in the 12 eurozone countries, according to an announcement by the European Commission's Athens Office.

The announcement said that, according to data collected through the European rapid information network, on average on January 1 over 80 percent of automatic teller machines (ATMs) have been adjusted to the euro, meaning about 160,000 machines.

In four countries, (Austria, Germany, the Low Countries and Luxembourg) the machines' adjustment has almost been completed. In general, the machines' adjustment timetables have been observed, while the announcement adds that in certain countries the adjustment took place with speedier rates and Greece, France, Portugal and Finland are included among these countries.

According to the Commission's recommendations, most ATMs are giving banknotes of low denominations in at least nine of the 12 eurozone countries.

No serious problem of a material or technical nature has taken place and on January 1 no case of counterfeit euro banknotes had been reported.

In almost all eurozone countries, shops which were open in general were giving change in euros and consumers were accepting change in euros without any problem. Queues at open shops were at normal levels.

[02] Bullet in roof of ND leader's car mystifies security team

Athens, 03/01/2002 (ANA)

The car had been parked outside the Intercontinental hotel in central Athens, where Karamanlis and his wife Natasha had attended an officer's ball for the New Year that was also attended by President of the Republic Kostis Stephanopoulos.

[03] Gov’t says employment top policy priority

Athens, 03/01/2002 (ANA)

Speaking to reporters, presenting the ministry's semi-annual report on "current developments and prospects of the Greek and international economies", Christodoulakis said that real workers' income would increase by 2.4 percent in the 2002-2004 period, covering 88 percent of the increase in an estimated productivity rise.

The report said that the Greek economy will grow by 3.8 percent in 2002, from 4.1 percent in 2001 and that the unemployment rate will drop to 10.9 percent from 11.4 percent of the workforce, over the same period.

A predicted GDP growth rate of 4.0 percent annually in the years 2003 and 2004 will increase employment by 1.4 percent annually, reducing the unemployment rate to 9.0 percent by 2004, the report said.

Christodoulakis reiterated that boost employment was the government's highest policy priority, because it was the main criterion for real convergence. The average per capital income in Greece reaches 70 percent of the EU average and the government seeks to increase this rate to 80-85 percent in the next few years.

[04] Trade confederation says common currency a great challenge

Athens, 03/01/2002 (ANA)

However, ESEE has its reservations and concerns because it is fully aware that the new currency alone is not enough to achieve development and real convergence.

ESEE further said that, on the contrary, it is a risk if it is not accompanied on the one hand by necessary structural changes and on the other by the transparent, effective and full utilization of the 3rd Community Support Framework (CSF).

The announcement said that ESEE will insist and support all government initiatives moving in the direction of the release of the economy and society from past inflexibilities.

It added that it will call on all of the country's political forces to cooperate for a new national target for a Greece which will be strong, economically equal with its partners and socially fair towards all Greeks.

Meanwhile, market checks to protect the consumer from unjustified price increases are intensifying on the arrival of the euro and fines have already been imposed on a number of businesses.

Deputy Development Minister Christos Theodorou will visit Ermou street as well as other busy streets in downtown Athens on Thursday morning and said on Wednesday that consumers should feel safe with their transactions and if they notice problems they should report them to the open telephone line 198.

The ministry is in contact with European watch services and is being briefed on market reactions. It might also announce the names of businessmen making unjustified increases, on the occasion of the currency conversion, if this is considered necessary.

In a New Year's message, Athens Chamber of Commerce and Industry (EVEA) President Yiannis Kapralos expressed the wish for businesses to strengthen and increase their productivity and improve the quality of their products and services to enable the comparison between their prices and those of the remaining 11 eurozone countries to be to their benefit.

[05] Greek PMI index up in December

Athens, 03/01/2002 (ANA)

The seasonally-adjusted Purchasing Managers' Index (PMI), a composite index designed to offer a general picture of conditions prevailing in the manufacturing sector, rose to 50.9 in December from 49.2 in November. November was the first month to show a decline in the index.

The rebound of the index in December reflects a rise in total orders in the month, the report said.

Main buyers, domestic and foreign, are showing improved confidence in the economy and are reactivating orders frozen following the September tragic events in the US.

Readings above 50 show that the sector is growing.

The report, by NTC Research and the Hellenic Supply Institute, also showed that Greek businesses increased their employment levels in December.

[06] More than 18 billion drachmas in new private investment in NE Greece in 2001

Athens, 03/01/2002 (ANA)

According to the final statistics for 2001 there were 47 new accepted submissions of business plans, 52 completions of investments and 29 recalls of business plans.

The new accepted submissions created 682 new jobs in the region, of which 507 new jobs were full time and 175 seasonal.

[07] Greek stocks jump 1.38 pct in first session of 2002

Athens, 03/01/2002 (ANA)

The index ended at 2,627.28 points, but turnover was a thin 28.6 billion drachmas, or 84 million euros, as many investors extended their New Year's holidays.

The Textile, Publication and Construction sectors scored the biggest percentage gains (9.08 percent, 7.59 percent and 7.21 percent, respectively), with only the Retail sector suffering losses (off 0.84 percent).

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 0.64 percent higher, the FTSE/ASE MID 40 index jumped 2.96 percent and the FTSE/ASE SmallCap 80 index soared 5.03 percent.

Broadly, advancers led decliners by 327 to 23 with another eight issues unchanged.

The most heavily traded shares were Klostiria Naousis, Hellenic Telecommunications Organization, Coca Cola, Vovos and Koumbas.

Bond Market Close: Prices rise in light trade: Bond prices in the domestic secondary market on Wednesday finished higher in light trade again focusing on ten-year paper.

The Greek benchmark 10-year bond showed a yield of 5.25 percent, and the yield spread over German bunds was 33 basis points.

Turnover through the central bank's electronic system totaled 1 billion euros.

Buy orders accounted for the bulk of turnover.

Derivatives Market Close: Equity futures end higher: Equity futures on the Athens Derivatives Exchange on Wednesday showed a slightly higher premium than in the previous session in a trading day that was marked by a small increase in volume, traders said.

Changing hands were 2,372 contracts a little higher that the previous session. Turnover was 13 million euros.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips rose by 0.64 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks gained 2.96 percent.

[08] 200 immigrants located off Crete reach landfall

Athens, 03/01/2002 (ANA)

At first, rescuers focused on children and women, as the Turkish flagged "Aydin Kaptan" rolled on dangerously high seas. The rescue began when ships responded to a distress signal put out by the craft and picked up by Turkish authorities.

The distress signal went out on Tuesday afternoon and a search was launched in which Greek coast guard vessels, an all-weather rescue helicopter and five merchant ships participated.

According to an announcement from NATO Allied Forces Southern Europe, the Spanish naval vessel SPS Extremadura that is currently assigned to NATO's Standing Naval Force Atlantic (SNFL) and the UK naval survey ship HMS Beagle joined rescue efforts in response to a request for assistance from the Greek rescue ships and helicopter.

The SNFL is in the eastern Mediterranean conducting Operation Active Endeavor, NATO's maritime contribution to the fight against terrorism.

Crew members from the Beagle, which was first to arrive in the area, boarded the Aydin Kaptan on Tuesday and repaired a hole in its hull, as well as restoring power to one engine. The SPS Extremadura arrived on the scene at 2:20 on Wednesday, took command of the rescue and replaced the Beagle's crew on the Aydin Kaptan.

While later in the day Dutch oiler HNLMS Amsterdam, also participating in the NATO exercise arrived at the scene providing wind cover for the small vessel.

The vessel is now being escorted to Ierapetra harbor on Crete, where it will be handed over to the Greek coast guard.

Merchant Marine Minister George Anomeritis said the Aydin Kaptan was expected to arrive at Ierapetra harbor in the evening.

[09] Earthquake measuring 4.9 Richter in Messinia

Athens, 03/01/2002 (ANA)

According to the Geodynamic Institute at the Athens National Observatory and the Geophysics Laboratory at Thessaloniki University the earthquake took place at 00.16 am and its epicenter was 180 kilometers southwest of Athens, just north of Meligala in Messinia.

According to local authorities, the tremor was noticed but did not cause a panic, while no damage had been reported so far.

Seismologists said the quake was not a cause for concern.

[10] Fewer traffic accidents in Thessaloniki in 2001

Athens, 03/01/2002 (ANA)

A report by Thessaloniki prefecture traffic police said that 1069 road accidents had occurred throughout the area in 2001, down from 1567 in the year 2000, representing a drop of 31.78 per cent.

The number of accidents resulting in deaths dropped 11.9 per cent from 126 in the year 2000 to 111 in 2001.

The number of accidents resulting in serious injuries was 138 and accidents causing minor injuries came to 820, representing reductions of 8 per cent and 36.48 per cent respectively.

A total of 124 people lost their lives in road accidents in Thessaloniki prefecture in 2001, 24 less than in 2000, while 168 suffered serious injuries and 1394 suffered minor injuries. The same figures for 2000 were 187 and 1915, respectively.

Police also reported 41.45 per cent increase in the number of traffic violation citations in 2001, relative to 2000.

The greatest increase in citations was for improper use of the fast lane, with the number of citations increasing by 173.68 per cent, followed by failure to use a seat belt (72.07 per cent), speeding (55.92 per cent), failing to observe right of way rules (28.6 per cent), not using a helmet (28.19 per cent) and running red lights (26.69 per cent).

Police also reported a slight increase in the number of people caught driving under the influence of alcohol in the past year. Alcohol tests on 27, 465 drivers in 2001 revealed that 3,583 (13.05 per cent) had exceeded the legal limits. Of the 17,292 people tested in 2000, 2,169 (12.54 per cent) had exceeded alcohol limits.

[11] Concrete steps expected on issue of missing persons

NICOSIA, 03/01/2002 (CNA/ANA)

His comments, which came four days after President Glafcos Clerides hosted a dinner for Turkish Cypriot leader Rauf Denktash at his residence, were echoed by the President of the Committee of Relatives of Missing Persons Nicos Theodosiou, who appeared cautiously optimistic that this time Denktash seems to be willing to do something to alleviate the suffering of the families of missing persons in Cyprus.

"At present there is the resolve and the desire to deal with the issue of missing persons in a way that we have not witnessed in the past. I would like to hope that this time things will move forward," Papapetrou said at his daily briefing.

The spokesman refrained from giving any details on anticipated moves by the president and Denktash on this issue but noted that "specific efforts will be made in parallel with the renewed peace effort, which begin on 16 January with the UN-led direct talks between Clerides and Denktash."

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