Athens News Agency: Daily News Bulletin in English, 15-05-12

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

CONTENTS

[01] Varoufakis: Aim is to find common ground between previous programme and the one voted by Greeks

[02] EU officials hail progress in Greek talks, urge speeding up of process

[03] Eurogroup's full statement on talks with Greece

[04] FinMin Varoufakis: Agreement with institutions within the next days

[05] Cabinet meeting to meet on Tuesday

[06] PM Tsipras has phone conversation with visiting Russian official Sergei Storchak

[07] FinMin Varoufakis warns Greece may run out of cash 'in two weeks'

[08] FinMin: Greece will pay its lenders

[09] Dijsselbloem: 'Deadline' for agreement with Greece is the end of June

[10] Moscovici notes 'clear progress' in talks with Greece, arriving for Eurogroup in Brussels

[11] German FinMin: Referendum in Greece could be useful

[12] Gov't spokesman: Definitely no to new memorandum

[13] Main opposition says Eurogroup meeting showed it is actually discussing review of 2nd bailout

[14] Discussions are on positive track, but reforms needed, EU Commissioner Moscovici says

[15] Irish FinMin sees 'positive statement on Greece' at Monday's Eurogroup

[16] Labour Minister Skourletis does not rule out referendum or elections

[17] Greece's moves will be determined on the basis of the Eurogroup's decisions, SYRIZA's Filis says

[18] A modest agreement is better than a rift, SYRIZA MEP Papadimoulis says

[19] A referendum is a one-way road, according to Parliament Vice-President Mitropoulos

[20] FM Kotzias to "Sabah": "We want to develop the economic relations between the countries even further"

[21] Foreign Minister Kotzias says CBMs to dominate his talks in Turkey

[22] ND attacks government over referendum talk

[23] The government has put the party above the national interests, ND spokesman Karagounis says

[24] ND's Staikouras: Data show Greek economy is bogged down

[25] Government Vice-President Dragasakis denies reports concerning his car

[26] Dep. Finance Minister of Russia to ANA-MPA: We invite Greece to join the new development bank

[27] Productive Recon. Minister Lafazanis urges TAP AG to promote Greek companies' participation in pipeline

[28] Greece orders payment of 750-mln-euro installment to IMF

[29] Greek wage employment figures best since Jan 2001 in April, according to report

[30] Greek crisis affects Balkan countries, IMF report

[31] Greek state debt to private sector up significantly in March

[32] Northern Greece Business Index sharply down in April

[33] Car registrations up 47.2 pct in April

[34] Greek stocks end sharply lower

[35] Greek bond market closing report

[36] ADEX closing report

[37] 4.4-magnitude tremor strikes southeast Crete

[38] No trolleys in Athens on Tuesday morning due to work stoppage

[39] Partly cloudy on Tuesday

[40] The Monday edition of Athens' dailies at a glance Politics

[01] Varoufakis: Aim is to find common ground between previous programme and the one voted by Greeks

During the past few months the government was striving, negotiating and working day and night to find a redeeming agreement, Greek Finance Minister Yanis Varoufakis told reporters after a Eurogroup meeting in Brussels on Monday.

The minister noted that the aim was to find common ground between the previous programme and a reform programme approved by the Greek people in January 25, and underlined that negotiations "were not an easy task". Varoufakis also explained that both political differences and the overall difference of views regarding the negotiations were significant.

He said, however, that during the last fortnight there was convergence in the positions of Greece and the representatives of its lenders in the framework of the Brussels Group, mostly thanks to an "excessive effort" made by the Greek government and the "big concessions" made by Athens. But he stressed that the government was determined not to compromise on policies which were fuelling the crisis.

Commenting on the overall meeting, Varoufakis said it was held in a positive climate and recorded progress made in negotiations. He added that his colleagues dismissed the "unacceptable and completely inaccurate leaks" made after the previous Eurogroup meeting in Riga.

[02] EU officials hail progress in Greek talks, urge speeding up of process

Eurogroup head Jeroen Dijsselbloem said on Monday that the reorganization of the negotiating process between the Greek authorities and the representatives of the country's lenders has been positive.

Speaking at a press conference after the conclusion of the Eurogroup meeting in Brussels, Dijsselbloem said the decisions taken at the Eurogroup meeting on February 20th remain the main point of reference.

Asked about the possibility of a referendum in Greece, he said it is a domestic issue to which the European Council will not intervene.

Commenting on Greece's liquidity crunch, he noted they were not discussed at length and that it's the responsibility of the Greek government. He added however that existing problems should be resolved soon and that the Greek side has pledged to fulfill all its obligations.

Taking his turn, EU Economic and Monetary Affairs Commissioner Pierre Moscovici said there's a clear improve-ment in the climate, compared to the previous meeting, adding that a lot of issues remain to be resolved, such as the social insurance system and labour market reforms.

"There's no time to lose," he noted.

Klaus Regling, head of the European Stability Mechanism (ESM), also called on the Greek authorities to accelerate the pace of negotiations so that a deal can be forged in the next few weeks.

[03] Eurogroup's full statement on talks with Greece

The Eurogroup on Monday welcomed the progress that has been achieved in the negotiations between Greek authorities and its creditors in a statement issued after the conclusion of the eurozone finance ministers' meeting in Brussels.

The full statement is as follows:

"The Eurogroup today took stock of the state of play with the ongoing negotiations between the Greek authorities and the institutions. We welcomed the progress that has been achieved so far. We note that the reorganisation and streamlining of working procedures has made an acceleration possible, and has contributed to a more substantial discussion. At the same time, we acknowledged that more time and effort are needed to bridge the gaps on the remaining open issues. We therefore welcome the intention of the Greek authorities to accelerate their work with the institutions, with a view to achieving a successful conclusion of the review in a timely fashion.

The Eurogroup reiterated that its statement of 20 February remains the valid framework for the discussions. Once the institutions reach an agreement at staff level on the conclusion of the current review, the Eurogroup will decide on the possible disbursements of the funds outstanding under the current arrangement."

[04] FinMin Varoufakis: Agreement with institutions within the next days

Finance Minister Yanis Varoufakis expects an agreement with the institutions within the next days, as he stated upon his arrival to the Eurogroup meeting in Brussels.

Varoufakis also said that common ground between Greece and the institution has been found and estimated that an agreement could be reached in the next days.

Asked on what he expects from the ECB, Varoufakis replied that ECB must do its job.

Moreover, according to very well informed sources, Varoufakis is expected to meet with his German counterpart Wolfgang Schaeuble at 15:30 (Athens time), before the start of the eurozone Finance ministers meeting.

The solution is visible as long as there is political will from the side of the creditors, FinMin Varoufakis says

"The government has done what is humanly possible. The solution is visible as long as there is political will from the side of the creditors," Finance Minister Yanis Varoufakis on Monday said in statements to Kokkino radio station.

Ahead of today's Eurogroup meeting, Varoufakis underlined that "the government is not going to sign an agreement without a perspective of exiting the crisis, an agreement that would not deal with the major issues of debt, unemployment and recession."

The Finance minister stressed the need for an income redistribution policy and shifting the burden of the crisis from the shoulders of the many to those who had to carry the burden while reiterating the government's aim to find a solution in the next days.

[05] Cabinet meeting to meet on Tuesday

However, as the negotiations are ongoing, the cabinet will convene on Tuesday at 14.00 to take stock of the developments and decide the government's tactic and its next steps.

[06] PM Tsipras has phone conversation with visiting Russian official Sergei Storchak

Storchak was in Greece on Monday as a representative of the BRICS development bank, set up by the emerging economies Brazil, Russia, India, China, and South Africa.

The prime minister thanked Storchak for the invitation, saying it was a pleasant surprise, and also expressed Greece's interest and promised that it will examine the proposal in depth, the sources said. Tsipras said he would have an opportunity to discuss the proposal at length with the BRICS country leaders when he visits St. Petersburg for the International Economic Forum (SPIEF) taking place there on June 18-20.

[07] FinMin Varoufakis warns Greece may run out of cash 'in two weeks'

"The liquidity issue is a terribly urgent issue. It's common knowledge, let's not beat around the bush," Varoufakis was quoted as saying by AFP. "From the perspective (of a timetable), we are talking about the next couple of weeks," he added.

[08] FinMin: Greece will pay its lenders

"Greece will meet its obligations to the lenders" stated Finance Minister Yanis Varoufakis to the press upon his arrival at the Eurogroup meeting.

He also said that he expects a good meeting today that will establish and fortify the big steps Greece has made.

Finally, he said that he will meet with his German counterpart Wolfgang Schaeuble later on Monday.

[09] Dijsselbloem: 'Deadline' for agreement with Greece is the end of June

The deadline for reaching an agreement with Greece is the end of June, when the current extension of the programme expires, Eurogroup President Jeroen Dijsselbloem said on Monday as he arrived for a meeting of Eurozone finance ministers. It was up to Greece's politicians to decide whether to hold a referendum and the prospect did not worry him, he added.

Dijsselbloem said that he will wait to hear what the representatives of the institutions have to report concerning the progress made in the talks and "what we can expect in the coming weeks". He clarified that there was no final result that the finance ministers could discuss on Monday and that the Eurogroup's aim was to assess the progress made thus far.

The Eurogroup president noted, however, that the negotiations were moving in a more positive direction than the last session and underlined the need for political will "so that Greece once again returns to the path of economic and fiscal stability".

Asked whether the outcome of Monday's Eurogroup could help resolve Greece's liquidity issues, Dijsselbloem replied that the European Central Bank was absolutely independent and the Eurogroup was not in a position to indicate to the ECB what it must do.

The Eurogroup president added that Greece was currently making use of the flexibility offered with respect to the programme, making new reform proposals that must, however, be economically sustainable. While the "political deadline" for an agreement was at the end of June, Dijsselbloem stressed that there was already a significant delay in terms of implementing the programme and the disbursements.

[10] Moscovici notes 'clear progress' in talks with Greece, arriving for Eurogroup in Brussels

Arriving for the Eurogroup meeting in Brussels on Monday, European Commissioner for Economic Affairs Pierre Moscovici referred to "clear progress" in the negotiations with Greece.

The commissioner said that the negotiating process had improved significantly since the last Eurogroup in Riga, Latvia so that progress had also been made concerning the substance of the talks, though in several important areas the negotiations needed to move faster and there was a lot of ground still to cover.

Moscovici predicted that Monday's Eurogroup would be significant, even though there it will not result in any specific decision, since there would be an evaluation of progress made. In the meantime, the Greek side was expected to confirm its desire to proceed with the necessary reforms in order to achieve an agreement, he said, adding that Monday's meeting could send a positive signal.

He also noted that the will for an agreement to be found on the part of the European Commission.

[11] German FinMin: Referendum in Greece could be useful

German Finance Minister Wolfgang Schaeuble on Monday said that a referendum in Greece could be useful, upon his arrival at the Eurogroup meeting in Brussels

If the Greek government believes that it must hold a referendum then it they can do it, he said adding that it could be a useful measure for the Greek people to help them decide if they are ready to accept what is necessary or they want something different.

Schaeuble also said that the three institutions (European Commission, European Central Bank and International Monetary Fund) have a common position noting that the idea that the decision could be taken by the European parliament without IMF's participation is non-realistic.

Finally, he underlined that the programme agreed with Greece was an unprecedented experience however, it must be implement in some way. We want to help Greece, he concluded but Greece must do its own share.

[12] Gov't spokesman: Definitely no to new memorandum

He noted that the aim was that Monday's Eurogroup should note the substantial progress made in the negotiations with the Brussels Group. He also clarified that the government is not examining any 'plan B' and added that "nothing ends today" and there was still ground to be covered to reach a final agreement.

Asked if Greece will be able to meet a payment to the IMF on Tuesday, he replied that the government has a responsibility to cover obligations both within and outside the country. He emphasised, however, that repayment did not depend on the outcome of Monday's Eurogroup, since that would be an ultimatum that could be construed as blackmail and the government did not pose the issue on those terms.

At the same time, he noted that the country an undeniable liquidity shortage and was not trying to hide this but seeking an agreement "that respects democracy in Europe and recognises Greece's right to decide policy within the framework of its commitments and obligations."

On the possibility of a referendum, Sakellaridis said that "the government has the support of the society's majority as well as a fresh mandate," but is on no account "afraid of the people's will". He also said that "if the question is a new memorandum, the government's answer is definitely no".

He underlined that the government would move within the framework of the mandate it received in the elections and that its guiding principles was to avoid taking measures that place additional burdens on those that have already paid most dearly for the crisis.

The spokesman categorically ruled out all possibility that the SYRIZA-ANEL coalition will implement a programme and agreement "that the Samaras government agreed to but could not carry out."

[13] Main opposition says Eurogroup meeting showed it is actually discussing review of 2nd bailout

Commenting on the outcome of Monday's Eurogroup in Brussels, party spokesman Costas Karagounis said "three things became apparent in today's meeting":

"It was made once again clear that this entire negotiation concerns the ongoing review of the second bailout programme and not a bridge agreement, as the government has claimed. The government's claims that there's no review was a lie."

Karagounis also said the "sense of progress" which is noted, shows the government is for the first time engaged in serious talks after four months. "Anyone can see that the 'proud negotiation' which was taking place for 100 days was a propaganda firework."

It was also made clear, the ND spokesman said, that an agreement with the troika-institutions must be achieved first and then an approval by the Eurogroup before money is disbursed.

"In other words, the notorious political solution doesn't exist. The lies are over. The economy cannot handle the asphyxiation and the bill is getting larger," he added.

[14] Discussions are on positive track, but reforms needed, EU Commissioner Moscovici says

The discussions on Greek economy issues are on a positive course, but Greece must present a comprehensive list of real reforms, with a specific timetable and costing, EU Commissioner for Economic Affairs Pierre Moscovici said in an interview with the Belgian newspaper La Libre Belgique.

Asked why Greece is continuously forced to present new measures, Moscovici said: "At the elections last January, the Greek citizens expressed a will for change, that must be respected. Europe must not appear as a monster, as a warden. At the same time, Greece must respect its European partners and the voters of other member states with regard to the commitments undertaken towards the eurozone. This week, the discussions got into a positive track. This progress is not, however, conclusive. The responsibility lies within Greece, which has to present a complete list of real reforms, with a timetable and costing. Greece must remain in the eurozone. But, it must also change in order to create growth and jobs."

The EU Commissioner cleared out that they are not asking from the Greek government to take back all its promises. "They are entitled to make reforms in the direction of their programme. But SYRIZA will not do everything it has promised. They also admit it. However, we are not going to impose on them a programme that cannot be changed, as if there had been no elections. It is a matter of democracy. But reforms are needed that will enable Greece to honour its commitments."

[15] Irish FinMin sees 'positive statement on Greece' at Monday's Eurogroup

Irish Finance Minister Michael Noonan on Monday expressed conviction that Eurozone finance ministers will end their meeting with a positive statement about Greece, as he arrived for Monday's Eurogroup.

He said that the Eurogroup will note the progress made by Greece but will not be in a position to take a final decision as a lot still remained to be done.

According to Noonan, there was a sense that some progress was being made but also disappointment because this progress was not rapid, while the Greek government was finally resolving some of the issues.

The minister expressed concern over the situation concerning liquidity in Greece, expressing hope that the problem will be soon resolved by a release of disbursements.

[16] Labour Minister Skourletis does not rule out referendum or elections

However, this cannot be decided in advance, but it will be determined on the basis of an agreement reached, he said.

Asked whether the option is default or exit from the eurozone, he said: "Apparently, none of these is an option. I would say that sometimes things happen that they are not your choice."

When he was asked if the government has the money to pay the IMF loan on Tuesday, he said that the Finance ministry is responsible for that. However, he wondered: "If we give the money tomorrow, will we have an agreement? And then what? This cannot go on forever."

He added: "We have lost three months with this delaying tactics of the lenders. Possibly, it was a part of their project, we repay -and this is a global phenomenon - since August, this country has not borrowed a single euro. It has met all its obligations in the country and abroad and you can understand that this reaches its limits at some point. "

[17] Greece's moves will be determined on the basis of the Eurogroup's decisions, SYRIZA's Filis says

The Greek side will then decide its stance on the repayment of the loan installments, he added.

Filis underlined that the Greek side has done all the possible concessions within the framework of the popular mandate and stressed the need for the support of institutional persons such as the Bank of Greece governor. He also referred to the agreement that needs to be reached for the debt settlement adding that "the Greek government is not willing to negotiate one by one the so-called prerequisites of the creditors, giving thus the impression that their plan is to take without giving."

An honest agreement within the limits of the popular mandate a more realistic choice than a referendum, Alternate Minister for Administrative Reform Katrougalos says

Alternate Minister for Administrative Reform George Katrougalos on Monday spoke in favour of a referendum although he considers "an honest agreement within the limits of the popular mandate a more realistic choice."

"We have done the necessary concessions to reach an agreement," Katrougalos said to SKAI TV adding that nobody wants a Grexit. He noted, however, there are opposition parties that do not want the government to succeed as they do not want to be proved that there is an alternative economic policy to the problem of liquidity.

"They want us in the eurozone, humiliated, living-dead so that they can prove that the Left cannot have a say in Europe's affairs," the minister estimated. He added that the reason why the government has set red lines is because some measures do not contribute to the recovery of the Greek economy.

Katrougalos agreed that the responsibility is now lies within the creditors adding that the government has made any possible concessions.

[18] A modest agreement is better than a rift, SYRIZA MEP Papadimoulis says

"Even a relatively moderately satisfactory agreement is better than a rupture both for Greece and its creditors," he noted.

"Tsipras has the support of the Greek people to proceed boldly, honestly," Papadimoulis said adding that "an agreement is in the interest of the Greek government and its creditors."

He also estimated that a referendum will not be needed. "The last one who wishes for a referendum is the country's prime minister," he said.

"The country needs solutions and not elections and the mandate is for Tsipras to govern so that the country gets out of the situation that Samaras-Venizelos' government had brought it," Papadimoulis stated.

[19] A referendum is a one-way road, according to Parliament Vice-President Mitropoulos

"The government needs to take initiatives for a referendum," he stressed adding that it is a one-way road in order to "further strengthen the government's already strong popular mandate."

"It is neither a tactics move nor a 'dribble' policy," Mitropoulos said adding that "a referendum will further strengthen the country's negotiating power" as "the creditors do not negotiate, but blackmail and give ultimatums."

[20] FM Kotzias to "Sabah": "We want to develop the economic relations between the countries even further"

Kotzias is expected to meet with Turkish Prime Minister Ahmet Davutoglu and his counterpart Mevlut Cavusoglu during his visit to Turkey.

Asked on his agenda, Kotzias said: " I am the Foreign Minister of a leftist government in Greece; a government emphasizing negotiations. I am very pleased that I will be meeting with Prime Minister Davutoglu, who is, like me, an academic. I have already met Mr. Cavusoglu. He is a very dignified person. I hope we get to know each other better at this meeting."

"First of all, we aim to reaffirm once again our intentions with regard to the confidence-building measures. Second, we want to discuss what stage the exploratory talks have reached and to accelerate our goals.

Beyond that, we want to develop the economic relations between the countries even further, and those relations are already moving ahead very well. The prevailing impression is that the number of Turkish tourists who will come to Greece this year will surpass the number of Russian tourists. That is, over 1 million Turks will be visiting Greece. The trade dynamic between Greece and Turkey has quadrupled. Investments have increased.

We will also find the opportunity to look at the issues of stability and security in our region. On these issues, there are areas where we share the same views with Turkey. There are also different views. Our interests often coincide. In cases where they don't coincide, we will look for a way out," Kotzias said.

Asked if there will be any new proposals with regard to the confidence-building measures between the two countries, Kotzias replied: "Representatives of our countries' Foreign Ministries met on 24 April, in Istanbul. We want the decisions made at that meeting, with regard to the talks on the Aegean - and for some of those decisions, if not all, to be clarified - to move ahead and for the first positive steps to be taken. I hope at least that we will agree on a matter of prevention."

[21] Foreign Minister Kotzias says CBMs to dominate his talks in Turkey

He said the agenda of the talks will cover fundamental strategic issues, including economic issues, and seek to establish cooperation in areas such as culture and education as a means of "ensuring stability and security in the region, especially in the southeastern Mediterranean."

Kotzias said that both Greece and Turkey were two countries within a "triangle of instability" that had an interest in preserving stability, adding that this could include a resumption of talks for a solution to the Cyprus issue.

Asked to clarify his statement about the withdrawal of troops and guarantor forces from Cyprus, Kotzias noted that a continued presence of the guarantor forces would mean "that a solution is not a real solution," because there would then be no need for their continued presence.

Kotzias also underlined that Cyprus must finally become a "regular EU member state" that has good and productive relations with both Turkey and Greece. If troops from either side remained, he added, it would simply be more of the same "and we should not kid ourselves."

If Turkey's concern was for the rights of the Turkish-Cypriots, Kotzias said, "then let us give them the maximum rights and maximum in security," since no other guarantees would be needed, especially within an EU framework.

The minister also referred to Greece's emerging role in the energy map, which he said was necessarily linked to that of Turkey, as the pipelines from Russia and Azerbaijan would pass through both countries. Regarding the search for hydrocarbons in the Mediterranean, Kotzias stressed that his would benefit all countries in the region and underlined that Greece's cooperation with countries such as Egypt and Israel was not "aimed at anyone".

On Turkey's EU accession progress, Kotzias said that Europe needs Turkey and expressed his conviction that relations between Greece and Turkey will become "even better" if Turkey was an EU member-state. Kotzias said that he considered himself one of the original "architects" of the Helsinki agreement that lifted obstacles to Turkey's European course in the 90s.

[22] ND attacks government over referendum talk

Karagounis, referring to the press briefing given by the government spokesman, stressed that the government was "threatening a referendum as a way of avoiding its own inadequacy," and predicted that a referendum would lead to even greater problems.

[23] The government has put the party above the national interests, ND spokesman Karagounis says

In statements to ANA-MPA, Karagounis spoke of a rather negative negotiation climate that is the government's responsibility. He estimated there would be no agreement at today's Eurogroup meeting adding that the government's options are either a painful memorandum with 14 billion euro measures or a disorderly default.

"Instead of concluding the latest review and continue on the safe path that New Democracy had started, the government puts the party interests above the national ones.

"We have been asking for an agreement for the very first moment and as time goes by, the government is being led to a worse compromise," he said and added: "In any way an agreement with tax increases will take the Greek economy a step back."

Asked on how he sees the following day, he said that an agreement with tax increases will wound the recovery while a failure will lead the country close to collapse.

[24] ND's Staikouras: Data show Greek economy is bogged down

Commenting on the data, Christos Staikouras, ND's commenter on financial issues, said uncertainty, delays and the overall vague financial environment are now taking a real toll on the country and the economy and urged the government to secure a beneficial deal for the country.

"It has become apparent that the Greek economy can longer wait for the government to smooth out the contradictions between its pre-election and post-election pledges or the internal contradictions of the parties forming the government coalition," Staikouras said.

[25] Government Vice-President Dragasakis denies reports concerning his car

"Categorically, therefore, the car used by the vice-president of the government is on no account the car that is described. A mistake could be excused, the deliberate misrepresentation of the facts is inexcusable," he said.

Financial News

[26] Dep. Finance Minister of Russia to ANA-MPA: We invite Greece to join the new development bank

In a period that the financing problem of the country is acute and constitutes one of the main problems of the negotiations between Greece and the institutions, Greece's participation in the new development bank of the BRICS, according to the Russian Minister's statement will offer Greece the opportunity to fund a series of development projects.

Referring to the Greek-Russian relations, Storchak noted that they can develop in a number of sectors with the use of the Russian currency for the payment of goods and services.

The new official name of bank is New Development Bank but usually is called BRICS bank. The most important is that it will be the second such institution that will not only refer to development plans in Brazil, India, Russia, North Africa and China but also to most countries of the world, said Storchak.

Referring to the Bank's governing system, the Russian Minister said that there will be three governance levels. The governors board, the managing directors board, the president and the staff. In this institution where the president and the vice president will be appointed on a merit basis, we decided that the president will change every five years and will be from the five founding member-states.

In reality, " in existing institutions, it is often declared that the appointment of the board, the chairman is based on the merit base but in practice in world bank is normally represented by the United States, in IMF is represented by Europeans, for this reason we decided to change this approach and each country to be allowed to be the leader of the bank for five years" explained Storchak.

Another important fact is the voting, every country has the same portion of voters, the same number of shares, and we agreed that in many occasions would be wiser to rely on the majority of voters. So, summing up, the role of this institution will be worldwide in big construction projects. We know for many many years that the role of the World Bank, their role in the infrastructional projects, is decreasing not increasing, so we five founding members agreed that development projects would constitute the cornerstone of the bank's activities, the bank will not be running for the profit.

At a question if Greece can be benefited from the bank, the Russian Minister said "This new Development Bank is open to all United Nation members. We have agreed that all 50 percent of the authorized capital of the bank, meaning 50 billion dollars a year will be distributed between founding members, the other 50 billion can be subscribed to newcomers. The effect is that with this very flexible system, after the process of the ratification of the agreement in all nations, newcomers would apply and the board of governors will decide. After this there will be no need the issue to be submitted to the national parliament in order to change the articles of the agreement and this is very important. So I will not be surprised if Greece is the first to apply as full membership. Greek authorities can buy as much portion of shares they want. It does not matter if they are small or moderate shares, when Greece joins the bank it would be able to borrow from the bank for different purposes or for national development plans".

Asked on whether any potential financial aid from bank may cause problems in Greece's relations with its EU partners, Storchak opined "The possibility of problems with the European Union because Greece will become member of the Brics institution is very low because many European members have decided to join another development institution, I speak about a Chinese proposal for the Asian institute for infrastructure and investment (Asian Infrastructure Investment Bank -AIIB). Twenty five percent of the Asian bank's capital will be allocated to non-Asian countries. UK, Germany, Italy, France, all members of the European Union has decided to work with other nations for the Asian institute. So, no problem, no critics, the references I managed to read are quite positive" adding that "the world economy is facing a number of challenges, one of the challenges is lack of long-term capital for infrastructure projects so the Asian Bank will be oriented to infrastructure development. In the near future the issue of lack of modern infrastructure will not be only technical. The issue will be set on the table for deep, comprehensive improvement and the countries will feel the benefit of these two new institutions in terms of stimulating and motivating economic transactions not only in terms of trade but also in terms of project finance.

On the issue of Greek-Russian relations and how they can further develop, the Russian minister made a proposal "As far as I work mostly in international finance, I think that both nations can work in stipulating the use of national currency, at least in case of Russia, Russian rubles can be used in payment for goods and services. For example, I can imagine if the two countries find it mutually beneficial to use rubles in tourism. Russian people who want to come to Greece especially in spring or early summer are sensitive in changing rubles to other currency, so if at some stage we manage to make such transactions it would be quite helpful. Of course, when we overcome the financial difficulties I am sure that based on the political environment which exist in our countries, I believe more Russians and private companies will be eager to invest in Greece. It is very important for you, for us, we are all looking for direct foreign investments. Not only products, but investments. My experience has shown that is much more interesting and wise to rely on direct foreign investments.

We have a good political basis for development of mutual relationship and we have strong historic relations as well as relations in other fields.

[27] Productive Recon. Minister Lafazanis urges TAP AG to promote Greek companies' participation in pipeline

Addressed to TAP AG President John Attrill, the letter noted the provisions in the host country agreement stating that the selection criteria "should encourage use of Greek companies and workforce for the entire span of the supply chain for the project, by ensuring that there is no discrimination against Greek companies."

"Given that the largest section of the pipeline will be implemented on Greek territory, we consider it self-evident that you will prefer and choose, chiefly, Greek companies both in the construction of the pipeline and related projects and in the supply of the materials required," he said.

Lafazanis noted that his would help increase acceptance of the project in local communities and stressed that Greece was not asking for a violation of the relevant legislation.

"We consider, however, that there are means conducive to the participation in the project of reliable Greek companies that have the right knowhow, skills and equipment," he said.

[28] Greece orders payment of 750-mln-euro installment to IMF

[29] Greek wage employment figures best since Jan 2001 in April, according to report

According to data from Labour ministry's "Ergani" database, the wage employment balance was positive by 80,223 job positions in April, up from 60,600 in April last year, resulting to the creation and maintenance of 19,623 job positions. Employment increase was recorded in all 13 regions of the country, with Southern Aegean (25,533) and Crete (19,492) recording the best performance.

The new hiring/dismissals balance was positive by 6,911 positions, in April.

[30] Greek crisis affects Balkan countries, IMF report

However, Joerg Decressin, the deputy director of the research division at the IMF for central and eastern Europe who presented the report to a group of journalists here in Brussels, the European Union was a very different situation now compared with four years ago, something that significantly reduced the risk of contagion.

Greek banks' subsidiaries represented 14-22 pct of the banking system in Bulgaria, FYROM, Albania, Romania and Serbia, while the loan/deposit rate was 100 pct, or more, despite a significant reduction in the last few years reflecting lower demand for loans and a smaller dependence in funding from the parent bank. Jorg Decressin said that meant that banks will have liquidity needs in case that the condition in Greece deteriorated that's why bank supervision mechanisms in these countries were closely monitoring developments. Additionally, a high number of non performing loans in some subsidiaries created more risks. The report said that the financial sector in these countries could be affected by lack of confidence, deposit outflow and possibly monetary pressure, particularly in countries with fixed current rate systems, or these closer to adopting the euro currenty.

The report noted that trade transactions between Greece and the countries in southeastern Europe could also be affected in case that economic conditions in Greece deteriorated.

[31] Greek state debt to private sector up significantly in March

[32] Northern Greece Business Index sharply down in April

The NBGI 500 index fell to -29 points in April from -19 in March, -22 in February, -18 in January and -11 in December 2014.

The index, compiled by Interview, showed that 14 pct of enterprises based in northern Greece said their situation was good in April (down from 21 pct in March), while 43 pct said the situation was satisfactory and more than four in 10 (43 pct in April from 38 pct in March) said their situation was bad. Fourteen percent of enterprises expect their situation to improve in the next six months, 46 pct expect that nothing will change, while 43 pct expect a deterioration. Fourteen percent said they planned to make new hirings in April (up from 7 pct in March) helped by the approaching tourist season. Intention to lay off workers eased to 27 pct in April from 28 pct in March, while a 59 pct of enterprises decided to keep their workforce unchanged. Turnover grew (25 pct in April from 15 pct in March, the report said, while 57 pct of enterprises said their turnover shrank in the month (48 pct in March).

Greek industrial production index up 5.0 pct in March

Greek industrial production index grew 5.0 pct in March compared with the same month last year, after a 4.5 pct decline recorded in March 2014, Hellenic Statistical Authority said on Monday.

The statistics service, in a report, attributed this development to a 12.3 pct decline in the mining production index, an 8.2 pct rise in manufacturing production (food production up 7.2 pct, tobacco 56.5 pct higher, oil products 20.6 pct, metal products 13.2 pct and electronics/optical products 48.3 pct up), while electricity production index fell 1.7 pct and the water production index rose 5.7 pct.

The average industrial production index in the January-March period grew 2.3 pct compared with the same period last year.

[33] Car registrations up 47.2 pct in April

The statistics service, in a report, said that car registrations were up 9.1 pct in April 2014 (in passenger cars the increase was 10.5 pct).

In the January-April period, car sales totaled 40,671 vehicles, up from 31,642 in the same period last year, for an increase of 28.5 pct (in passenger cars the increase was 27.4 pct).

Motorcycle registrations totaled 3,567 in April, up 25.2 pct from the same month last year, while in the four-month period from January to April, motorcycle registrations totaled 9,688, up 13.6 pct from the corresponding period last year.

[34] Greek stocks end sharply lower

Grivalia Properties (4.61 pct), Coca Cola HBC (1.13 pct) and Mytilineos (0.83 pct) were top gainers among blue chip stocks, while Piraeus Bank (11.11 pct), Eurobank (10 pct) and Ellaktor (7.65 pct) suffered the heaviest percentage losses of the day.

Among market sectors, Insurance (2.86 pct), Real Estate (2.40 pct) and Food (1.12 pct) scored big gains, while Banks (6.71 pct), Financial Services (6.38 pc) and Health (6.25 pct) suffered heavy losses.

Broadly, decliners led advancers by 69 to 33 with another 16 issues unchanged. AEGEK (20 pct), Teletypos (18.75 pct) and Sato (17.24 pct) were top gainers, while Nexans (29.73 pct), Dionic (20 pct) and CPI (12.82 pct) were top losers.

Sector indices ended as follows:

Banks: -6.71%

Insurance: +2.86%

Financial Services: -6.38%

Industrial Products: -3.31%

Commercial: -0.84%

Real Estate: +2.40%

Personal & Household: -3.21%

Food & Beverages: 7.241.13 +1.12%

Raw Materials: 2.557.67 +0.21%

Construction: -1.74%

Oil: -2.23%

Chemicals: +0.06%

Media: unchanged

Travel & Leisure: -1.90%

Technology: -3.97%

Telecoms: -2.68%

Utilities: -4.93%

Health: -6.25%

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

Selected shares from the FTSE/ASE

Large Cap index closed in euros as follows:

Alpha Bank: 0.312

Public Power Corp (PPC): 5.50

Coca Cola HBC: 19.64

Hellenic Petroleum (ELPE): 4.41

National Bank of Greece: 1.19

OPAP: 8.40

OTE: 7.98

Piraeus Bank: 0.416

Titan: 22.30

Grivalia Properties: 7.95

Aegean Airlines: 7.50

[35] Greek bond market closing report

In interbank markets, interest rates eased. The 12-month rate fell to 0.168 pct from 0.169 pct, the nine-month rate was unchanged at 0.108 pct, the six-month rate was stable at 0.061 pct, the three-month rate was -0.009 pct and the one-month rate fell to -0.045 pct from -0.044 pct.

[36] ADEX closing report

General News

[37] 4.4-magnitude tremor strikes southeast Crete

According to the the Geodynamics Institute of Athens National Observatory, the tremor's epicentre was located 42 klm west of Ierapetra, and 54.7 klm southeast of Iraklio, Crete.

[38] No trolleys in Athens on Tuesday morning due to work stoppage

The union demands among others, hirings, funding, new spare parts and tyres for the trolleys, lower ticket fares.

Moreover, the electric train, the metro and the tram have also declared a work stoppage from the start of the shift until 08:00 on Tuesday.

Weather forecast

[39] Partly cloudy on Tuesday

[40] The Monday edition of Athens' dailies at a glance

EFIMERIDA TON SYNTAKTON: Stress test for government-society

ELEFTHEROS TYPOS: Who can avoid the pension reductions

ESTIA: Partisanship destroys the country

ETHNOS: Eurogroup-Judgement Day

KONTRANEWS: 8 billion euro new taxes and 300 euro pensions required by the usurers

NAFTEMPORIKI: In Brussels with eyes turned to Frankfurt

TA NEA: Government strategy of tension

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