Athens News Agency: Daily News Bulletin in English, 10-09-08

Athens News Agency: Daily News Bulletin in English Directory - Previous Article - Next Article

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

CONTENTS

[01] Ecofin approves second tranche of EU loan to Greece

[02] New Cabinet convenes after swearing-in ceremony

[03] ND reaction on gov't reshuffle

[04] LAOS spokesman comments on cabinet reshuffle

[05] Tsipras on gov't reshuffle

[06] New foreign ministry leadership convenes; Droutsas to visit Cyprus

[07] Loverdos and new deputy ministers take over at health ministry

[08] Foreign minister invited to visit Skopje

[09] Education minister meets with highschool teachers' union

[10] Memory march in Istanbul for September 1955 events

[11] National Bank announces 2.8-bln-euro capital raise plan

[12] OTE determined to cut labour cost

[13] Samaras meetings with chamber, local gov't unions

[14] ND leader meets with GSEE delegation

[15] Samaras meets leadership of civil servants' union

[16] Samaras meets with SEB leadership

[17] ND's Samaras meets with UHCC board

[18] Greek tourist product enduring, airport statistics show

[19] Tender for energy-saving school buildings

[20] Inflation at 5.5pct in August

[21] Foreign investors raised equity participation in ASE

[22] Stocks end 3.29% lower

[23] ADEX closing report

[24] Foreign Exchange rates - Wednesday

[25] Restoration completed on temple of Athena Nike

[26] Eurostat statistics on non-nationals living in Greece, EU

[27] Anti-smoking hotline inundated with calls

[28] Beefed up police patrols for TIF

[29] Fair on Wednesday

[30] The Tuesday edition of Athens' dailies at a glance Politics

[01] Ecofin approves second tranche of EU loan to Greece

An Ecofin meeting on Tuesday decided that from 2011 onwards all EU member-states will table their state budget draft bills for the next year to EU agencies for approval in the first half of each year, a procedure coming before national parliaments begin their ratification process.

Greek Finance Minister George Papaconstantinou, speaking to reporters here, expressed his satisfaction with this decision and noted that based on legislation regulations adopted by Greece last July, the basic principles of annual state budgets would be drafted during the first quarter of the previous year.

He also welcomed the appointment of Dimitris Kouselas as deputy minister responsible for budget revenues and stressed that lower state revenues so far this year could be counterbalanced either by VAT increases or cutting subsidies on heating and diesel oil.

Moreover, the Ecofin council approved, with no debate, a second tranche of an EU loan facility to Greece.

The Greek minister told reporters that EU finance ministers exchanged views over a series of issues, such as strengthening sanctions against member-states breaching fiscal discipline rules, setting up a reserve fund to deal with future crises, taxing financial transactions, without reaching any specific decisions.

Papaconstantinou stressed that a priority of government policy was to promote structural changes, privatisations and the consolidation of the domestic banking sector.

He said he expected an economic recession this year to be less than the -4.0 pct figure, and noted that a necessary precondition for the recovery of the Greek economy was to win back its international credibility. The Greek minister announced that he will begin a tour of European capitals next week, visiting the London, Paris and Berlin, accompanied by "troika" officials for meetings with international investors to present Athens' measures towards economic restructuring.

[02] New Cabinet convenes after swearing-in ceremony

After the customary swearing-in ceremony, which was officiated by Archbishop Ieronymos of Athens and All Greece and held in the presence of President of the Republic Karolos Papoulias and the premier, the new ministers, seven alternate ministers and 24 deputy ministers -- 48 in total -- were expected to head to their respective ministries to take over the new portfolios from their predecessors.

Yiannis Diamantidis, who will head the Maritime Affairs, Islands and Fisheries Ministry -- essentially the re-established merchant marine ministry -- and deputy minister Elpida Tsouri were not sworn in, and will assume their duties after the signing of the relevant Presidential Decree establishing the new ministry.

[03] ND reaction on gov't reshuffle

Panagiotopoulos, in a dawn statement, stressed that "it took eleven months and a long night of unprecedented tragicomic behind-the-scenes for the Prime Minister to acknowledge his government's failure".

"With the reshuffle, which was the product of pressure and comprises, the price was paid by certain members of the government, Panagiotopoulos added, warning, however, that "if they continue to exercise the same policy the people and the country will continue to pay the price.

Concluding the ND spokesman said that PASOK is a "twilight" government that has been humiliating itself from the very beginning due to prime minister's handlings.

[04] LAOS spokesman comments on cabinet reshuffle

According to the opposition party's spokesman, Prime Minister George Papandreou had made ministers of the "leaders of PASOK's internal rebel movement", possibly because he feared something and sought to "disarm them with portfolios".

[05] Tsipras on gov't reshuffle

"The policy line remained fixed," Tsipras said, describing it as "cruel and unrelenting".

In a meeting Tsipras had with the civil servants' union ADEDY, he underlined that the only way out of the crisis is the annulment of the memorandum and the adoption of a policy that will focus on the social state, development and the workers.

[06] New foreign ministry leadership convenes; Droutsas to visit Cyprus

The meeting attended by new Alternate Foreign Minister Mariliza Xenoyiannakopoulou, formerly minister of health, new Deputy Foreign Minister Dimitris Dollis, who will deal with issues affecting expatriate Greeks, and Deputy Foreign Minister Spyros Kouvelis.

"During the past months, and in difficult times, we managed to attain the necessary regional stability, as well as to provide a voice for Greece in order to contribute to raising the country's prestige internationally. We laid good foundations to be able to forge ahead with the country's growth," he stressed.

Meanwhile, Droutsas will begin a two-day visit to Cyprus on Wednesday, the first official visit in his new capacity.

Droutsas will be received by Cyprus President Demetris Christofias, and the Speaker of the House of Representatives Marios Garoyian.

He will also meet with Archbishop of Cyprus Chrysostomos II, as well as with the Cypriot political leadership and will attend a working dinner hosted by Cypriot Foreign Minister Markos Kyprianou.

[07] Loverdos and new deputy ministers take over at health ministry

A first taste of these difficulties was waiting for him on the steps of the ministry, where about 30 doctors were protesting against an increase in the years required for them to specialise.

"I feel the feelings that someone has when they leave problems to find more problems," Loverdos said concerning the change of ministries, adding that he was determined to fight and win in the face of the problems.

Outgoing minister Mariliza Xenoyiannakopoulou, who is moving on to a portfolio as alternate foreign minister, said that the work done during her time at the ministry would soon start to bring results and stressed that Loverdos "knows how to wage battles and win".

Joining Loverdos in the ministry's political leadership are deputy ministers Mihalis Timosidis and Christos Aidonis, while previous deputy minister Fofi Gennimata will move to the education ministry. Timosidis is himself a doctor and knowledgeable on health issues, while Aidonis will take over the new diet and exercise portfolio that have been attached to the health ministry.

[08] Foreign minister invited to visit Skopje

Former Yugoslav Republic of Macedonia (FYROM) Foreign Minister Antonio Milososki on Tuesday sent a letter to Greece's newly-appointed Foreign Minister Dimitris Droutsas, congratulating him on taking over leadership of Greece's foreign ministry. In the same letter, Milososki also invited Droutsas to carry out a visit to Skopje.

"I would like, on this opportunity, to underline my conviction that during the upcoming period we will make joint efforts to upgrade relations between our two countries in the spirit of European values, mutual cooperation and understanding. I am deeply convinced that with joint efforts we can give a new dimension to the development of bilateral relations and cooperation, contributing in this way not only to making ties firmer on a bilateral level but also to stability and progress for the wider region," Milososki said.

He went on to invited Droutsas to carry out an official visit to FYROM at a date to be decided through diplomatic channels.

"I am certain that your visit will be an opportunity to exchange views on many issues and contribute to establishing a mutual trust and strengthening good neighbour relations," he added.

Droutsas previously served as alternate foreign minister for Greece, with Prime Minister George Papandreou holding the title of foreign minister.

[09] Education minister meets with highschool teachers' union

Diamantopoulou stressed that the new school year beginning on Sept. 13 will be difficult, adding that "the educators, parents and, of course, the ministry of education, have a duty to see that schools will operate properly."

On their part, the secondary school teachers' trade union representatives stated that they outlined the problems faced by their sector and announced protest mobilizations to take place in Thessaloniki on Saturday within the framework of the 75th International Trade Fair.

[10] Memory march in Istanbul for September 1955 events

The Human Rights Foundation organised a memory march here on Tuesday on the 55th anniversary of the September 1955 events.

The march followed the same route that had been followed 55 years ago by the members of the enraged Turkish mobs to reach Pera. Taxim Square was the starting point and the main slogan this time was "Never Again."

The participants passed from the old road of Pera where on September 6-7 the vanadalisms against Greek property took place. The demonstrators, holding placards and banners "5,317 shops were destroyed", "400 women were raped", "4,214 homes were destroyed" reminded one of the dark pages of modern Turkish history, the pogrom against the Greek Orthodox community that was thriving in Istanbul at the time.

During the night of Sept. 6 and into the early morning hours of Sept. 7, 1955, enraged mobs descended into the Istanbul neighborhoods where most of the ancient metropolis' ethnic Greeks lived, worked and owned property. The tragic developments that occurred in those fateful hours came to be known as the "Septemvriana" or "Evenings of September" pogrom.

Financial News

[11] National Bank announces 2.8-bln-euro capital raise plan

The bank said its Core Tier 1 ratio will be strengthened by around 380 basis points following completion of the program.

National Bank will seek to raise 631 million euros from its shareholders, through the issue of 121.4 million new common shares at an offering price of 5.20 euros per share and another 1.184 billion euros through the issue of 227.6 million convertible bonds at the same offering price (5.20 euros).

The Greek bank said it planned to maintain a majority stake in Finansbank, not less than 75 pct of its equity capital. The sale of Finansbank's equity stake will depend on market conditions and after obtaining approval from supervisory authorities.

Vasilis Rapanos, the bank's chairman, said the capital strengthening program was proof of an improving climate both for National Bank and for Greece and could emerge as a significant station to the country's economic adjustment procedure.

Apostolos Tamvakakis, the bank's chief executive said the program was a landmark for National Bank as it would allow the Group to timely prepare to deal with a new macro-economic conjucture in its main market.

Credit Suisse, Deutsche Bank, Goldman Sachs International, Morgan Stanley and Hellenic Postbank will be joint bookrunners of the issue.

[12] OTE determined to cut labour cost

OTE announced it would launch its satellite TV station by Christmas and complete the first fiber optic networks works this year. OTE has lost around 250,000 customers so far this year, of which 130,000 in the last quarter, a trend expected to be continued in the next quarter "with the blessings of the national market watchdog", Panagiotis Vourloumis, OTE's chairman said on Tuesday.

Speaking to reporters, in Thessaloniki, Vourloumis said the management would seek to promote a new labour status after consultations with trade unions with the aim to cut its labour cost from 33 pct of OTE's revenues (22 pct on average in Europe).

Vourloumis strongly criticized the market watchdog saying it was scandalously favouring OTE's competitors by forcing the organization to sell its products up to 40 pct more expensively. OTE would also seek a reorganization of its retail network, saying 25-30 pct of branches could either relocate or their human resources distributed to other sales points.

Vourloumis said OTE was interested in selling its 20 pct equity stake in Telekom Srbjia, an initial investment of 155 million euros. He said that mobile telephony operations were progressing well in Romania, while Bulgaria was also on a positive trend. On the other hand, once huge profit margins in Albania have significantly shrank because of strong competition in the market.

[13] Samaras meetings with chamber, local gov't unions

The ENAE leadership focused on the dysfunctions in the operation of prefectures stemming from financial problems and limited personnel, underlining that "this problem infiltrates into the regional government as well." They pointed out that "those problems should be solved as soon as possible to turn the "Kallikratis" local government reform into a productive tool despite its shortcomings."

The leadership of KEDKE outlined the risks involved in the limited financing provided by the updated memorandum for the next three-year period.

Earlier, Samaras met at the party's central offices in Athens with the Athens Chamber of Commerce and Industry's (ACCI) leadership, in view of the 75th Thessaloniki Trade Fair (TIF).

Exiting the building, where the ND central offices are housed, chamber president Constantinos Mihalos requested an amendment of terms of the landmark memorandum signed by the Greek state with the EU-ECB-IMF 'troika', underlining that the solution of the fiscal crisis is a matter of policy and not individuals.

[14] ND leader meets with GSEE delegation

GSEE, presenting its views ahead of the Thessaloniki International Fair (TIF), warned that the recession was turning into an employment crisis with an exacerbation of unemployment.

GSEE president Yiannis Panagopoulos called on the government to take specific measures to spur development and support the unemployed and low pension earners, and stressed the need for the introduction of a new mix of economic policy.

Predicting a "very hot autumn", Panagopoulos also called on the people to participate in the protests that have been planned during the TIF in Thessaloniki.

[15] Samaras meets leadership of civil servants' union

The meeting took place at ND's headquarters in central Athens and soon after the conclusion of the meeting ADEDY deputy president Ilias Drettakos stressed that policies over recent years, with tip of the iceberg being the current government and memorandum, having plunged the country and the workers in poverty and penury.

Referring to the same-day Cabinet reshuffle, Drettakos said "we want the policies to change not the persons".

[16] Samaras meets with SEB leadership

He said SEB expects of ND to contribute decisively to the effort to transform Greece into a modern, business-friendly country and for the consolidation of a new kind of growth based on the real economy rather than the clientele state.

Daskalopoulos added that exiting from the Memorandum as soon as possible is a "self-evident national goal", which will be achieved through the efficient implementation of the modernising changes the country needs and which it had not dared for so many years.

The Memorandum, he stressed, should not divide the Greek people but unite them in a collective effort to overcome the necessity that imposed it.

[17] ND's Samaras meets with UHCC board

After the meeting, UHCC President George Kassimatis referred to the economic crisis, stressing that "the business community is being tested by unemployment and slackness."

He also called on the government to take immediate measures to "avoid hitting a dead end."

[18] Greek tourist product enduring, airport statistics show

More specifically, at the country's most important airports over the January-August period a decrease of 1.02 percent is registered compared to the corresponding period last year with tourist arrivals in absolute figures totalling 7,888,228 from 7,969,281 during last year's period.

As regards arrivals in August, the most productive month from the point of view of arrivals, an increase of 0.67 percent is noted, amounting in absolute figures to 1,991,410 tourists from 2,004,745 last year.

The leading region in arrivals in August was Santorini, achieving an increase of 21.8 percent compared to last year with 52,216 tourists. Following in arrivals were Cephalonia with 11.9 percent, Kos with 10.1, Rhodes with 9.2, Zakynthos wirth 2.9, Samos with 0,05 and Skiathos with 0.4.

[19] Tender for energy-saving school buildings

The issue was signed on Tuesday by the relevant minister and refers to first and secondary schools that will incorporate the principles of bio-climatic planning and will combine the use of RESs, including solar and photovoltaic systems.

The tender is part of the operation programme "Environment and Sustainable Development" envisioned in the 4th CSF.

[20] Inflation at 5.5pct in August

The Consumer Price Index (CPI) in August 2010 compared with August 2009, increased by 5.5%. The previous year, in August 2009, the annual rate of change of the CPI was 0.8%.

The CPI in August 2010 compared with July 2010, decreased by 0.7%. The previous year, in August 2009, the monthly rate of change of the CPI was -0.7%.

In the twelve-month period from September 09 to August 10 compared with the period from September 08 to August 09 the annual average rate of change of the CPI was 3.5%. The previous year (period from September 08 to August 09), the corresponding annual average rate of change of the CPI was 1.8%.

Meanwhile, according to ELSTAT, the Harmonized Index of Consumer Prices (HICP) recorded a rise of 5.6 % in August 2010 compared with August 2009. The previous year, in August 2009, the annual rate of change of the HICP was 1.0%.

The HICP in August 2010 compared with July 2010, decreased by 0.7%. The previous year, in August 2009, the monthly rate of change of the HICP was -0.8%.

In the twelve-month period from September 2009 to August 2010 compared with the period from September 08 to August 09, the annual average rate of change of the HICP was 3.5%. The previous year, in the corresponding twelve-month period from September 08 to August 09, the annual average rate of change of the HICP was 1.9%

[21] Foreign investors raised equity participation in ASE

Greek investors owned 49.4 pct of the market's capitalisation by Aug. 31. Despite a rise in their equity participation, foreign investors were net sellers in August, with capital outflows totaling 23.6 million euros, while Greek investors recorded a net inflow of 37.1 million euros.

The market's capitalisation totaled 60.7 billion euros at the end of August, down 6.9 pct from July 2010 and down 34.1 pct compared with August 2009. The value of transactions totaled 1.719 billion euros in August, down 25 pct from July and down 59 pct compared with August 2009.

[22] Stocks end 3.29% lower

The Big Cap index fell 3.75 pct, the Mid Cap index ended 2.33 pct lower and the Small Cap index fell 0.98 pct. All sectors moved lower with the Raw Materials (4.95 pct) and Banks (4.83 pct) suffering the heaviest percentage losses of the day.

Broadly, Viokarpet (9.68 pct), Koubas (9.52 pct) and Info-Quest (8.62 pct) were top gainers, while Attikat (13.33 pct), Euroholdings (9.68 pct) and Teletypos (9.32 pct) were top losers.

Sector indices ended as follows:

Insurance: Unchanged

Industrials: -1.53%

Commercial: -0.74%

Construction: -2.94%

Media: -0.96%

Oil & Gas: -1.35%

Personal & Household: -1.34%

Raw Materials: -4.95%

Travel & Leisure: -1.69%

Technology: -2.14%

Telecoms: -1.37%

Banks: -4.83%

Food & Beverages: -2.43%

Health: -2.76%

Utilities: -3.19%

Chemicals: -0.28%

Financial Services: -3.82%

The stocks with the highest turnover were National Bank, Alpha Bank, Eurobank and OPAP.

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

Alpha Bank: 5.43

ATEbank: 1.07

Public Power Corp (PPC): 11.98

HBC Coca Cola: 19.51

Hellenic Petroleum: 6.08

National Bank of Greece: 10.40

EFG Eurobank Ergasias: 5.35

OPAP: 12.29

OTE: 5.74

Bank of Piraeus: 4.23

Titan: 15.84

[23] ADEX closing report

Volume in futures contracts on equities totaled 15,044 contracts worth 11.173 million euros, with investment interest focusing on National Bank's contracts (5,635), followed by Eurobank (1,342), OTE (748), Piraeus Bank (904), Alpha Bank (1,917), Mytilineos (412), Cyprus Bank (828) and Hellenic Postbank (922).

[24] Foreign Exchange rates - Wednesday

U.S. dollar 1.284

Pound sterling 0.838

Danish kroner 7.504

Swedish kroner 9.393

Japanese yen 107.71

Swiss franc 1.300

Norwegian kroner 7.954

Canadian dollar 1.339

Australian dollar 1.409

General News

[25] Restoration completed on temple of Athena Nike

The small temple was among the buildings on the Acropolis that had suffered the most extensive damage over the years, even as far back as 1687 when it was demolished by the Turkish guard during a siege of the Acropolis by the Venetians. It had also been frequently restored since 1935, though not always correctly.

When the Monuments Preservation Service took charge of it, most of the building blocks were wrongly placed, the west side leaned by 4.5 centimetres and oxidation had penetrated to to the lower, archaic-era temple. The placing of a metallic grate made of stainless steel, a change not originally envisaged as part of the restoration, was one of the factors that delayed delivery of the monument.

Other causes of delay were two further studies, one concerning the positioning of the slabs making up the frieze and another on the construction of the marble lion heads on the cyma, something done for the first time on the Acropolis.

The temple of the 'Wingless Nike' is in the southwestern corner of the Acropolis, where in Mycenaean times there was a turret protecting the entrance to the Acropolis. The temple was built between 426-421 B.C. based on a plan by Kallikrates and is the successor of earlier temples dedicated to "victorious Athena" or Athena Nike.

The temple was first described as that of the 'Nike Apteros' (wing-less victory) in Pausanias, who described the cult statue of Athena as lacking wings so that victory could never leave the city.

The temple has been handed over before the start of a new round of restoration work in October, this time on the western side of the Parthenon and Propylaea.

[26] Eurostat statistics on non-nationals living in Greece, EU

More specifically, 161,600 of the foreign nationals, or 1.4 percent of the overall foreign nationals in Greece, originated from other EU member states, while 767,900 (6.8 percent) were from non-EU countries.

The total number of non-nationals living on the territory of the EU Member States on 1 January 2009 was 31.9 million, representing 6.4% of the total EU population. More than one third of them (11.9 million), were citizens of another Member State

[27] Anti-smoking hotline inundated with calls

The 1142 hotline received 5,201 calls, on Monday while, since Sept. 1, the day the smoking ban in indoor public places was put into effect, the hotline has received a total of 27,407 calls, 291 of which were smoking ban violation complaints.

[28] Beefed up police patrols for TIF

The beefed up measures will intensify throughout the week, culiminating in the opening of the annual trade fair on Saturday night with the traditional address by the prime minister announcing the economic policy for the following year.

Weather Forecast

[29] Fair on Wednesday

[30] The Tuesday edition of Athens' dailies at a glance

ADESMEFTOS TYPOS: "Reshuffle with...leaks - Thriller: The prime minister was seeking deputy ministers".

APOGEVMATINI: "Twilight Ministers - Ridiculous: The composition of the new government was announced at 1.30 am".

AVRIANI: "Change economic policy before the Economy and the country collapse".

CHORA: "After midnight thriller over the 'preannounced' reshuffle

ELEFTHEROS: "Reshuffle, or how George (Papandreou, prime minister) slapped himself".

ELEFTHEROS TYPOS: "Government of twilight and the "pyjama"....ministers

ELEFTHEROTYPIA: "The reshuffle turned into after-midnight antics".

ESTIA: "The after-midnight reshuffle demonstates lack of seriousness".

ETHNOS: "SWAT team' with three super-ministers".

IMERISSIA: "Sweeping reshuffle".

KATHIMERINI: "Reshuffle with key persons - After-midnight changes with emphasis on sectors where the government was lacking."

LOGOS: "The... twilight government".

NAFTEMPORIKI: "Decisions on taxation and allowances sealed".

NIKI: "George sought support in PASOK's historic members ".

RIZOSPASTIS: "Uprise - counterattack with struggle and the vote as the weapon in order for the people to enter the track of prosperity".

TA NEA: "George's 3+1 aces - Government of emergencey with wide and structural changes".

TO VIMA: "Government of rifts with the power to five persons - George turns everything upside down".

VRADYNI: "Prime Minister's moves of despair".

36, TSOCHA ST. ATHENS 115 21 GREECE * TEL: 64.00.560-63 * FAX: 64.00.581-2 INTERNET ADDRESS: http://www.ana.gr * e-mail: anabul@ana gr * GENERAL DIRECTOR: ILIAS MATSIKAS

Athens News Agency: Daily News Bulletin in English Directory - Previous Article - Next Article