Athens News Agency: Daily News Bulletin in English, 07-08-09

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

CONTENTS

[01] Inner Cabinet, chaired by PM Karamanlis, approves draft law on National Social Cohesion Fund

[02] FinMin outlines Social Cohesion Fund main points, poverty figures

[03] Social Cohesion Fund bill draws sharp criticism from opposition

[04] PASOK National Council Secretary on speculation of early general elections

[05] Tenders for five tourism properties, including Corfu casino and Rhodes golf course, unveiled

[06] Sioufas awarded medal by Russian president

[07] Hellenic Petroleum shows increased profits, reduced sales in 1st half of year

[08] FBBank reports 81% increase in first-half pre-tax profits

[09] FHL Kyriakidis looks to expansion into power production sector

[10] AB Vassilopoulos supermarket reports higher pre-tax profits for first half 2007

[11] Blue Star reports 39.9% hike in profits

[12] Best hotel, tourist destination awards at November's "Philoxenia"

[13] Local products fair in Halkidiki

[14] Athens Stock Exchange: Bullish session on Wednesday

[15] Greek bond market closing report

[16] ADEX closing report

[17] Foreign Exchange Rates - Thursday

[18] Tourism minister visits Archbishop

[19] Gathering of Thessalians in Magnesia Prefecture

[20] Auction at Sotheby's of works of Greek painters

[21] Dance performances in Kalamata by Greek American Chicago group

[22] European dance day in Arcadia

[23] SAE Coordinating Council convenes in Sydney

[24] Cannabis 'plantation' discovered near Hania, Crete

[25] Halkidiki Prefecture hosts children from Ukraine and Belarus

[26] Drug arrest in Thessaloniki

[27] Boulder slams into car, passenger killed

[28] Hot, sunny on Thursday

[29] US say Cyprus within legality regarding oil exploration

[30] Egypt stresses need to respect international law Politics

[01] Inner Cabinet, chaired by PM Karamanlis, approves draft law on National Social Cohesion Fund

Speaking to reporters after the meeting, national economy and finance minister George Alogoskoufis called the bill an important step in the reform of social policy.

The Social Cohesion Fund will finance programmes for boosting the incomes of citizens who were below the poverty level, in accordance with the European Union (EU) criteria, Alogoskoufis said, adding that the Fund's aim was to improve the effectiveness of the welfare state.

Asked whether the bill constituted a pre-electoral benefit, Alogoskoufis replied that the government has achieved fiscal adjustment and consolidated fiscal discipline, adding that it remained committed to fiscal discipline until it achieved a balancing of the budgets in 2010.

He stressed, however, that this did not mean that the government would not implement its programme for reinforcing growth, employment and social cohesion.

To a question regarding opposition accusations that benefits recently announced by the government were a pre-electoral ploy, he said that such devices were employed by preceding governments at times of weakness.

Development minister Dimitris Sioufas, in turn, said the bill was an important conquest for the welfare state, and stressed that it's approval by the prime minister and Inner Cabinet constituted the materialisation of a platform commitment for strengthening social cohesion.

Employment minister Vassilis Magginas noted the exceptional importance of the Inner Cabinet's decision for the establishment of the Social Cohesion Fund.

Up until the present, he said, substantial monies were being spent but without having the corresponding effectiveness. Today, however, the resources would go to targeted actions, and there would be harmony between the resources and their effectiveness.

To another question, Magginas said that none of the measures being decided constituted a pre-electoral benefit, but comprised the materialisation of the government's platform commitments.

[02] FinMin outlines Social Cohesion Fund main points, poverty figures

He said that the National Social Cohesion Fund (or fund to combat poverty) would provide a targeted incomes boost for those who were below the poverty level. The minister said that 500 million euro would be earmarked for the Fund in 2008, while the total sum of resources it would be managing would reach 2 billion euro in 2010.

This means, he continued, that the Fund would provide an average of 1,000 euro per year to every individual below the poverty level. The goal of this policy, the minister explained, is to reduce the proportion of poor citizens in Greece from the present 10.6 percent to 15 percent in five years' time, so as to achieve convergence with the EU average.

He also said that objective criteria would be set out to determine those eligible for the income reinforcement from the Fund, citing as criteria examples the unemployed poor, long-term unemployed, low pension-earners, etc.

Alogoskoufis further announced that a special Research, Analysis and Documentation Unit would be established, which would recommend programmes for tackling poverty.

Replying to press questions, Alogoskoufis clarified that no discussion on the Minimum National Pension took place during Wednesday's Inner Cabinet meeting, but added that the national pension would apply to pension-earners below the poverty level, in accordance with announcements made recently by the prime minister.

Alogoskoufis also presented statistical figures on the number of poor in Greece, noting that the last available figures were from 2004.

He said that the poverty level for a family with two dependent children was 11,864 euros per year, while for a single individual with no dependents the level was 5,649 euro per year, clarifying that a family with two children with an income of less than 1,000 euro per month was categorised as poor.

The minister also said that the highest poverty levels, by population group, were among women, persons above 65 years of age, and in the 16-24 year old age bracket, as well as among the unemployed.

He also said that approximately 50 percent of the poor families were just below the poverty level.

Alogoskoufis noted that the government's policy on tackling poverty was within the margins of abilities of the budget, the goal for which remained achieving a balanced budget by the end of 2010.

On the course of this year's budget, the minister said that it was satisfactory, and by the end of the year the revenues target will have been exceeded.

Finally, according to available figures, the country's GDP rose by 4.2 percentage points in the second quarter of the year, Alogoskoufis added.

Basic points of the draft law

The bill aspires to improving the efficiency of social expenditures through a targeted trasnfer of resources to those truly in need. More specifically:

- A 'National Social Cohesion Fund' is established, which will be a public law legal entity.

- The purpose of the fund is to finance programmes of annual income reinforcement of individuals or households permanently residing in Greece and having an annual income below the estimated poverty level in Greece in each given year.

- Specific budget levels are established, beginning from 500 million euro in 2008 and escalating annually to the sum of 2 billion euro in 2010 and onwards.

- The National Social Cohesion Fund will finance integrated programmes for income reinforcement of categories of eligible parties, which will be drafted mainly by the authoritative services of the Employment and Social Protection Ministry and the Health and Social Solidarity Ministry.

- Eligible for the reinforcements may be individuals or households with an annual income lower than the poverty level in Greece, in accordance with the available data and the relevant assessments of the National Statistical Service's (ESYE) General Secretariat each given year.

- The income reinforcement programmes will be approved via joint ministerial decisions of the National Economy and Finance Minister and the authoritative minister in each given instance, following a recommendation by the National Social Cohesion Fund. These decisions will clearly set out the criteria for eligibility, the size of the reinforcement and method of its provision, as well as any other detail relevant to the implementation of the programmes.

- The Fund will be supported by scientific, administrative and auxiliary personnel.

- A special, autonomous Research, Analysis and Documentation Unit will be established within the Fund, whose task will be to submit recommendations on matters of implementation of the existing legislation and regulatory decisions with respect to the integrated income reinforcement programmes, and to assist the responsible ministries in drafting the programmes and appraising their results.

- The processes of drafting, approval and execution of the Fund's budget are regulated, as is a regular audit of the Fund's financial management.

- In addition to the procedures foreseen by the existing legislative framework regarding the public accounting of public law legal entities, also provided is the assignment, to certified auditors or a certified auditing company, of auditing the financial management and balance sheet of the Fund, and also their submission of a relevant report to the authoritative Economic Issues Committee of the Hellenic Parliament and the Economy and Finance Minister.

Poverty statistics in Greece

- The percentage of poverty is defined as the proportion of households with incomes below 60 percent of the mean income.

- For 2004 incomes, the poverty level was at 5,649.78 euro per individual annually, or at 11,864 euro annually for a household with two adults and two independent children under 13 years of age.

- Based on 2004 incomes, 19.6 percent of the citizens of Greece were members of a household below the poverty level.

- The risk factor was higher among women (20.9 percent) as compared among men (18.3 percent).

- The percentage of individuals above 65 years of age is estimated at 27.9 percent of the overall population, while for individuals of 16-24 years of age it is estimated at 22.7 percent.

- The risk factor among the working population is estimated at 12.9 percent, while among the non-working population at 25.9 percent, and among the unemployed at 32.8 percent.

- Most of the poor households were not far below the poverty level.

- 50 percent of the poor households were concentrated very near the poverty level. This figure is contained in a study on "the depth or the void of poverty", in other words how far the average income of the poor households was from the poverty level. Taken into account are only the poor households -- those with incomes below 60 percent of the mean income -- after which it is calculated how far their incomes are from the poverty level. It was found that their mean income was approximately 1,360 euro, or 24.1 percent, below the poverty level.

- The other 50 percent of the poor households had an income of above 75.9 percent of the poverty level, meaning that many households were very close to the poverty level.

[03] Social Cohesion Fund bill draws sharp criticism from opposition

Top main opposition PASOK party deputy and former minister Vasso Papandreou said the New Democracy government has 'set up an electoral poverty fund'. She also said the government's "panic" was clear to all Greeks, as it was unable to move elections beyond early autumn, "since they very well know that due to their policy the developments on the horizon will be onerous for the largest section of the Greek society".

Papandreou further said that the "supposed benefits which Mr. (George) Alogoskoufis (the economy and finance minister) so facilely announces daily are nothing more than a repetition of the promises New Democracy commenced making even before the 2004 elections", adding that "they now hope to once again delude the Greek people by promising the same things, although they know that the next government will be a PASOK government, which will be called on to materialise them".

The Communist Party of Greece (KKE) said the announcement for the fund and of 'hand-out' benefits by the government are insulting and dangerous measures for the entirety of the working people and pensioners.

In a statement issued by the KKE press office, the party warned that poverty is not combated with 'poorhouse benefits' but with substantial raises in salaries and pensions, and accused the government of attempting to delude working people and of reducing salaries and pensions even further, while escalating the attack on their elementary rights.

KKE demanded steady work for all, a five-day, 7-hour-a-day, 35-hour week regime, a 1,300 minimum monthly salary, a 1,050 euro minimum monthly pension and unemployment benefits for all the unemployed individuals.

Coalition of the Left (Synaspismos) party secretary Nikos Hountis called the annual 1,000-euro benefits (to every individual below the poverty level) a "pittance".

"The 2.8-euro per day, the hand-out to be received by a section of those below the poverty level, was christened as a 'social policy' in an impressive public relations manner. Hand-outs that will be negated by the austerity policies the government is preparing for after the elections; beware of a government bearing gifts," he said.

[04] PASOK National Council Secretary on speculation of early general elections

The next general elections are formally scheduled for March 2008.

"The paroxysm of hand outs is continuing. Every day new announcements, every day new lies. Now we have reached beyond 2010! The matter would have been laughable, but it underestimates the intelligence of the people and discredits their dignity, especially those who are in difficulty," Athanassakis said.

"The New Democracy government, the (Prime Minister Costas) Karamanlis government the only thing it has to present it's lies, its unreliability, the country's back-tracking, the worsening of the standard of living of most people in favour of the few and powerful. The people have knowledge and judgment and they will give their answer in the elections," PASOK's National Council Secretary concluded.

Financial News

[05] Tenders for five tourism properties, including Corfu casino and Rhodes golf course, unveiled

As widely reported over the recent period, the properties include a 120-hectare coastal tract of land at the Anavyssos site, southeast of the greater Athens area; the 131-hectare Afantos golf course and an unfinished resort on the popular Dodecanese island of Rhodes; the Corfu casino, currently hosted within a hotel in the island's same-name capital; as well as two previously state-run resorts, part of the "Xenia" hotel chain, namely, in the mountainous village of Vytina, Arcadia prefecture in the central Peloponnese, and on the holiday island of Skiathos.

All the bids will be linked to obligatory renovations of all five properties and concessions, the tourism ministry announced.

Offers for the Anavyssos site must be received by Oct. 23, 2007, with the government envisioning a 60-year long-term lease. Offers for the 60-year golf course lease must be received by Oct. 12, 2007.

Offers for 100 percent of the Corfu casino concession must be received by Oct. 31, 2007.

Offers for the 37,534 sq.-metre Xenia Vytina, on a 30-year lease, must be received by Oct. 11, 2007. Conversely, offers for the 66,272 sq.-metre Xenia Skiathos, also with a 30-year lease, must be received by Oct. 16, 2007.

[06] Sioufas awarded medal by Russian president

"The adopted energy policy has transformed Greece into an energy hub between the natural gas producer countries and European markets, and it has won recognition," Sioufas stressed.

[07] Hellenic Petroleum shows increased profits, reduced sales in 1st half of year

Net profits reached 181 million euros (corresponding to 0.59 euros per share), marking a 4% increase compared to the corresponding period last year.

In the 2nd quarter of 2007, net profits amounted to 127 million euros (corresponding to 0.41 euros per share), marking a 24% increased compared to the 2nd quarter of 2006.

[08] FBBank reports 81% increase in first-half pre-tax profits

The bank reported a 97-percent increase in revenue from various commissions and an 11.8-percent hike in after-tax income from interest rates. Total assets reached 1.26 billion euros in the same period, up 23.7 percent. Lending increased by 21.5 percent to 1.021 billion and deposits reached 908 million euros, up 22.2 percent.

FBBank operates a network of 16 branches around the country and plans to open another three branches by the end of the year.

[09] FHL Kyriakidis looks to expansion into power production sector

The shareholders are expected to give the hands-up to the company to submit a licence application for establishing a 3MW photovoltaic park in the region of Drama.

The shareholders will also discuss a proposal for the issue of a convertible bond loan for refinancing an existing loan, while also on the table will be a draft contract for the merger of the FHL Trading ING S.A. and FHL Manufacturing Trading Co. S.A., through absorption of the latter company by the former.

[10] AB Vassilopoulos supermarket reports higher pre-tax profits for first half 2007

Consolidated pre-tax profits also rose to 18.5 million euros from nine million euros during the same period.

[11] Blue Star reports 39.9% hike in profits

Profits after tax and minority rights for the bourse-listed company rose to 9.56 million euros from 6.24 million in the corresponding period of 2006 (a 53.2-percent increase).

[12] Best hotel, tourist destination awards at November's "Philoxenia"

The Philoxenia Tourism Awards are based on a public vote and a quality evaluation by a jury of inspectors.

During last year's competition the most popular tourist destinations were Halkidiki, Pilio, Thessaloniki, Santorini, Mykonos, Porto Katsiki in Lefkada, Zagorochoria in Ioannina, Mt. Parnassus and the national destination of Italy. Twelve hotels in Thessaloniki, Halkidiki, Karpenisi, Athens, Santorini and Evia received the "best hotel award" in Greece.

[13] Local products fair in Halkidiki

The three-day fair, aimed at boosting small-medium sized businesses, will feature products by 17 vendors.

[14] Athens Stock Exchange: Bullish session on Wednesday

Most sector indices gained ground, with the Foods & Beverage sector rising 3.36 percent, Financial Services up 2.50 percent and Telecoms up 2.03 percent. Raw materials posted the biggest losses, at 2.83 percent.

The Big Cap index ended 1.28 pct up, the Mid Cap index increased by 0.19 pct and the Small cap index ended 0.87 pct up.

Advancers led decliners by 137 to 114 with another 47 issues unchanged.

Sector indices ended as follows:

Insurance: -0.27%

Industrials: +0.37%

Commercial: +0.45.%

Construction: +0.20%

Media: +0.46%

Oil & Gas: +1.42%

Personal & Household: -0.09%

Raw Materials: -2.83%

Travel & Leisure: -0.40%

Technology: +0.36%

Telecoms: +2.03%

Banks: +1.40%

Food & Beverages: +3.36%

Health: +0.72%

Utilities: +0.30%

Chemicals: +0.23%

Financial Services: +2.50%

The stocks with the highest turnover were OTE, Alapis, National Bank and Alpha Bank.

Selected shares from the FTSE/ASE-20 index closed in euros as follows:

Alpha Bank: 22.90

ATEbank: 3.84

Public Power Corp (PPC): 20.44

HBC Coca Cola: 34.00

Hellenic Petroleum: 10.66

Emporiki Bank: 20.38

National Bank of Greece: 43.34

EFG Eurobank Ergasias: 26.48

Intralot: 25.82

Cosmote: 22.70

OPAP: 25.50

OTE: 22.74

Titan Cement Company: 38.04

[15] Greek bond market closing report

The 10-year benchmark bond (July 20, 2017) was the most heavily traded security with a turnover of 285 million euros. The Greek bond yielded 4.71 pct.

In the domestic interbank market, interest rates were mixed. National Bank's overnight rate was 4.08 pct, the two-day rate 4.08 pct, the one-week rate 4.10 pct, the one-month rate 4.12 pct, the three-month rate 4.33 pct, the six-month rate 4.43 pct and the 12-month rate 4.58 pct.

[16] ADEX closing report

The September contract on the FTSE 20 index was traded at a discount of 1.08 pct while the August contract on the FTSE 40 index at a discount of 0.64 percent.

Volume in futures contracts on the FTSE 20 index totaled 6,904 contracts worth 88.022 million euros, with 42,147 open positions in the market, while on the FTSE 40 index volume was 1,002 contracts worth 31.477 million euros, with 1,661 open positions.

Volume in futures contracts on equities totaled 5,433 contracts worth 8.010 million euros, with investment interest focusing on Intracom (804), followed by Marfin Popular Bank (648), Post Office Bank (525), ATEbank (446), Alpha Bank (401) and OPAP 316).

[17] Foreign Exchange Rates - Thursday

U.S. dollar 1.390

Pound sterling 0.683

Danish kroner 7.503

Swedish kroner 9.308

Japanese yen 165.82

Swiss franc 1.66

Norwegian kroner 8.026

Cyprus pound 0.588

Canadian dollar 1.461

Australian dollar 1.616

General News

[18] Tourism minister visits Archbishop

The minister told reporters after the meeting that she found the prelate of the Church of Greece "very optimistic as always".

[19] Gathering of Thessalians in Magnesia Prefecture

Parliament's second vice-president George Sourlas addressed the gathering representing the state while, on their part, the participating delegates donated trees to the region's prefectures which were ravaged by recent wildfires.

The Federation, which holds two gatherings annually -- one abroad and one in a Thessaly region prefecture -- was founded in 2004 and comprises eight associations of Thessalians, seven in Germany and one in Switzerland.

A founding assembly meeting for the establishment of a World Federation of Thessalians is scheduled to be held in Trikala, central Greece, on August 17.

[20] Auction at Sotheby's of works of Greek painters

Among the works of art will be included paintings by Yiannis Tsarouhis, Constantine Volanakis, Yiannis Moralis, Constantine Parthenis and Theodoros Rallis.

In the previous auction of Greek works of art in May, 2007, a record sum was registered. Specifically, the auction achieved the record sum of 10,994,082 euros (7,474,400 pounds) - 6.75 million euros more than the lowest estimate for the auction and almost 5 million euros above the highest estimate (the initial estimate was between 4,234,716 - 6,170,418 euros).

[21] Dance performances in Kalamata by Greek American Chicago group

The one hundred dancers of the group, which was created in 1991 by brothers Yiannis and Costas Iconomou, from Thessaloniki, central Macedonia, came to Greece with the contribution of the Panhellenic Foundation of Scholarships, based in Chicago.

Foundation President Christos Tomaras told the ANA-MPA the cultural exchanges with the Greek overseas community, which have a lot to offer in this sector as well, are necessary, particularly for the young children of overseas Greeks.

Within this context, efforts are intensified for the attraction of young overseas Greeks to come to their homeland, Greece, through the hospitality programmes.

[22] European dance day in Arcadia

[23] SAE Coordinating Council convenes in Sydney

Discussed at the meeting was the need to create Cultural Centres in Sydney and Melbourne, as well as a series of seminars for the training of Greek language teachers.

[24] Cannabis 'plantation' discovered near Hania, Crete

Police uprooted a total of 3,430 cannabis plants, some as high as two metres tall, in 14 protected areas. The areas was reportedly cultivated by at least two foreign labourers, although the owner is reputed to be a local resident.

It is the second largest hashish haul ever discovered in Hania since 1992.

[25] Halkidiki Prefecture hosts children from Ukraine and Belarus

The hosting of the children, of a duration of two weeks, is incorporated in the framework of the "Organisation of Visits by Overseas Children and Youth in Greece for 2007" programme, of the foreign and interior ministries, in cooperation with local government agencies.

During their stay in Halkidiki, the children follow a Greek language and cultural programme, while they have visited Vergina, Thessaloniki and various ancient sites, as well as the Polygyro Museum.

[26] Drug arrest in Thessaloniki

Authorities were led to the apartment by a 31-year-old man who was arrested shortly after buying 1.7 grams of heroin from the couple, which is wanted by police.

[27] Boulder slams into car, passenger killed

Police said the incident occurred on the 3rd kilometre of the Kerpini-Drakovouvi provincial roadway in the Gortynia district of Arcadia prefecture, in the central Peloponnese.

The name of the victim was not released, nor was there information on the fate of the driver.

Weather Forecast

[28] Hot, sunny on Thursday

Cyprus Affairs

[29] US say Cyprus within legality regarding oil exploration

US Ambassador to Cyprus Ronald Schlicher said on Wednesday, after a meeting with Minister of Commerce, Industry and Tourism Antonis Michaelides, that the Republic of Cyprus' actions regarding the first phase of issuing licenses for exploration and extraction of hydrocarbons from the country's exclusive economic zone, was totally legal.

According to an official press release, Schlicher and Michaelides discussed the strengthening of commercial ties and joint action in various sectors of the economy, such as health and information, which could contribute towards further enhancing relations between the two countries.

[30] Egypt stresses need to respect international law

Egyptian Ambassador in Nicosia, Ìohamed Abdel Hakam, has stressed that all states should respect international law and world conventions on the exploration and exploitation of oil deposits.

"Egypt believes that all states must respect international law and international conventions relating to the search for oil reserves," the Egyptian Ambassador said Tuesday after paying a courtesy call on Minister of Justice and Public Order Sophoclis Sophocleous.

Replying to questions about Turkey's reaction to Cyprus' intention to exploit possible hydrocarbon reserves in its exclusive economic zone, the Ambassador noted that "the Republic of Cyprus is a sovereign state, a member of the European Union and the United Nations".

"There is the international law which everyone must respect and implement. Every one has a duty to show respect to international law and international agreements," he added.

Egypt, and other countries in the eastern Mediterranean, has signed agreements with the Republic of Cyprus concerning the delimitation of their exclusive economic zones.

Cyprus has recently announced that international tenders for the exploration and exploitation of possible hydrocarbon reserves in its exclusive economic zone should be submitted on August 16th.

Successful applicants will carry out investigative drilling to determine the kind of hydrocarbons available, namely oil or natural gas, as well as their quantity.

Turkey has reacted to CyprusÔ sovereign right to conduct investigations in line with international conventions, in an effort to halt the process.

Turkish media reported that the Turkish research ship ''Yunus S'' has sailed from the port of Alexandretta searching for oil in areas of the Mediterranean Sea.

Turkey, whose troops occupy Cyprus' northern areas since 1974, is the only country in the world that does not recognise the Republic of Cyprus, which joined the EU in May 2004.

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