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

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

CONTENTS

[01] Procedural issues and agenda dominated Brussels Group teleconference on Thursday

[02] Varoufakis at Economist conference: 'Our goal is an agreement that... leads to a comeback'

[03] Greek gov't finalizes tax intervention package

[04] FinMin Varoufakis: We seek an agreement that gives a solution to the country's impasse

[05] Gov't spokesman: Greece has made great effort and it's our lenders' turn to meet us half way

[06] "The negotiation has entered the final stretch"

[07] IMF flexible in negotiations over Greek debt

[08] FinMin Varoufakis proposes ESM 'buy' 27 bln euro in Greek debt held by ECB

[09] German circles recycling Grexit scenarios 'not helping at all', State Minister Pappas tells 'Economist' conference

[10] This government will not sign memoranda, Independent Greeks leader Kammenos says

[11] Parliament Vice-President Mitropoulos: Government can't accept the most harsh version of measures proposed by the creditors

[12] Schulz: EU wants to continue to assist Greece

[13] Bundesbank chief says ECB is not Greece's rescuer

[14] Tsipras meets with AHEPA delegation

[15] FM Kotzias meets with the EU High Representative for Foreign Affairs and Security Policy Mogherini

[16] FM Kotzias meets with the Foreign Minister of Bulgaria Mitov

[17] FM Kotzias to meet with Luxembourg's FM Asselborn on Friday

[18] ND leader Samaras: 'The government should apologise to the Greek people'

[19] Government: 'Samaras' audacity has exceeded every prediction'

[20] Government spokesman rsponds to New Democracy on 'tax raid' accusations

[21] Greece's asylum service says it's 'objectively unable' to meet demands with present staff

[22] Bill on nationality rights for second-generation immigrants posted for public consultation

[23] Parliament's investigation into bailout memorandums to be broadcast on TV, internet

[24] Bill for public-sector staff evaluation in a month, minister announces at Economic conference

[25] HFSF announces call for expression of interest for CEO position

[26] Greece, EBRD sign funding agreement

[27] Greece risks deep recession if negotiations fail-EBRD

[28] Greece seeks agreement with EBRD to fund SMEs

[29] Russian minister: Possible Greek membership in BRICS bank will not be discussed before July meeting

[30] Economist: Bank officials refer to the need of managing bad loans

[31] FinMin Varoufakis presents privatization mixture plan

[32] VAT rate on islands not to change till September, FinMin Varoufakis says

[33] Energy Minister Lafazanis discusses ongoing projects with Edison officials

[34] Taxpayers massively respond to favorable terms repayment scheme

[35] Eurobank reports lower losses in Q1

[36] Capital market authority fines foreign companies for illegal short selling

[37] Greek import price index down 10.5 pct in March

[38] No obstacles to Rhodes property tenders from CoS, HRADF says

[39] Athens posts spectacular rise in number of congresses

[40] Debts amounting to more than 3.504 bln euros in social insurance fund settlement schemes

[41] Apartment prices down 3.9 pct in Q1

[42] Greek car market recovering strongly in Jan-April

[43] Greek stocks end moderately higher

[44] Greek bond market closing report

[45] ADEX closing report

[46] Minister Xydakis: Legal action is only one of options available for Parthenon Marbles

[47] Defence Minister Kammenos, armed forces leadership attend events for liberation of Thrace

[48] Three customs officers, finance ministry inspector 'nabbed' for suspected corruption

[49] Sunny on Friday

[50] The Thursday edition of Athens' dailies at a glance Politics

[01] Procedural issues and agenda dominated Brussels Group teleconference on Thursday

The source described the talks with the institutions as "political" but added that there was a "significant margin of flexibility for achieving an agreement, otherwise we wouldn't be talking."

He noted that the discussion was centred chiefly on the issues where the degree of agreement between the two sides was small, not on those where it was large and therefore discussion wasn't needed.

Another government official said that things had reached a "certain point, we know where, and we drew up a daily agenda on how we will proceed over the coming days. The Eurogroup talked about some open issues. These will be discussed."

There will be another video conference on Friday, with the Greek negotiating team probably departing for Brussels on Saturday. A resumption of face-to-face negotiations in Brussels is expected in the next few days, possibly on Monday, the sources added.

The various sides in the negotiation opted to meet via video conference on Thursday, when Catholics and Protestants celebrate the Feast of the Ascension, since it is a holiday for European Commission services in Belgium and many European Central Bank (ECB) and International Monetary Fund (IMF) representatives were not in Brussels.

Meanwhile, Finance Minister Yanis Varoufakis had a meeting with finance ministry general secretaries roughly at the same time as Thursday's video conference.

[02] Varoufakis at Economist conference: 'Our goal is an agreement that... leads to a comeback'

"Our goal is that the agreement that we will now strike should be a way out, so that we have a ...comeback. Because if we simply close an agreement where we cut a few supplementary pensions, hike up VAT on the islands a little bit, just so we get the roughly seven billion of the last installment, and then find ourselves in the same state as before in a month's time, I consider that this is something that neither you nor we, neither the Greek people nor finally the creditors, want," he said.

Varoufakis stressed that he will refuse to put his signature as finance minister to a package that is "macroeconomically inconsistent" and whose numbers don't add up.

"If I do this, I will be yet another finance minister that signs a medium-term fiscal programme that he knows cannot work," he said.

On the points of agreement with the creditors, Varoufakis said that both sides agreed that Greece cannot slip back into generating primary deficits, that it must carry out market reforms or sink, that the state of the labour market is "pitiful" and that the country's pension system was unsustainable.

"How could it be sustainable in a country where employment has shrunk so much, where the capitalisation of pension funds took such a blow with the PSI in 2012, when we have such as huge proportion of black labour...we absolutely agree on the need for administrative reforms and that the crisis has created overwhelming inequalities that are an obstacle to the social consensus needed for reform," he added.

Given that there was agreement on all these points, why could they not reach an agreement that would end the continued chokehold on the market, he asked and noted that the negotiations were also hampered by "political restrictions".

"In the corridors and behind closed doors they tell me 'you're right but how can I get this past the Parliament?' You understand that we have a problem of consistency between what must be done in order to have a comeback and the things that get past the Parliaments," Varoufakis commented.

On the structure of Greece's debt, he said that this needed to be "redesigned" but clarified that he did not mean a "haircut" and giving the upcoming payments of bonds from Jean-Claude Trichet's SMP programme as an example.

"In July-August, the Greek finance ministry will called on to borrow 6.7 billion euros from the partners in some way, in order to pay the bonds...held by the European Central Bank. The remaining sum of these bonds is around 27 billion euros, which must be paid off in the next months. These bonds must very simply be sent to the distant future. This is clear. And I think this is absolutely clear to the people at the ECB," he said.

One way this could be done, he suggested, was for the ESM to intervene and agree to swap these bonds for a long-term bond issued by the Greek government, paying off the 27 billion euros held by the ECB and thus allowing Greece to also participate in quantitative easing, from which it was currently barred because more than 33 pct of its bonds were held by the ECB.

Similar "smart swaps" could also be employed to facilitate payment of Greece's debts to the EFSF in the early '20s, he said, which would push the payments further into the future.

[03] Greek gov't finalizes tax intervention package

A government council meeting late on Wednesday examined the first tax interventions on which there is convergence with the institutions without reaching any final decisions. At the same time, the Finance ministry is promoting two changes on tax control: first, focusing on cases with big tax collection interest and secondly, launching procedures for identifying non-performing tax debt. Overdue tax debt to the state is currently around 75 billion euros, of which more than 50 billion euros are considered to be non-collected.

The government also examined tax interventions such as offering favorable terms of stating bank deposits held in foreign banks, introducing a lottery measure as an incentive to collect retail sales receipts, introducing a single VAT tax factor, obligatory use of credit/debit cards for transactions over 70 euros in all tourist islands of the country and imposing a higher tax burden on larger incomes.

[04] FinMin Varoufakis: We seek an agreement that gives a solution to the country's impasse

After five years of implementation of a plan that has failed, the next tranche is not a priority.

We aim for an agreement that will give a solution to the country's impasse. Nobody would wish lower supplementary pensions, higher VAT rates just to get the 7.5 billion euro instalment, and then return to the previous situation.

The reason why the negotiations take so long, Varoufakis said, does not have to do with disagreements on a number of issues, as we agree on most of them, but has to do with the fact that the agreement has to help Greece overcome the crisis and break free from the austerity trap, he said.

[05] Gov't spokesman: Greece has made great effort and it's our lenders' turn to meet us half way

Speaking during a press briefing, he said that the mutually beneficial agreement sought by the government in compliance with its "red lines" should also take into consideration the liquidity issue. Regarding the possibility of an agreement in May, Sakellaridis stressed the importance of the EU summit in Riga, Latvia, and a possible emergency Eurogroup at the end of the month. The spokesman said that Greece has made great effort and it's now their partners' turn to meet them half way.

He also reiterated the government's position that it is not afraid of resorting to a referendum, but that it already has already received a mandate to move ahead with its programme through the election process.

The spokesman refuted press reports claiming that Finance Minister Yanis Varoufakis said after the Eurogroup meeting Last Monday that Greece's liquidity will last for another two weeks, saying that "the government does what must be done to fulfill its obligations abroad and pay wages and pensions."

Asked about the possibility of funding a "bad bank" for non-performing loans, he said the issue is being discussed and "soon there will be positive results."

Sakellaridis also said the government's decision to move ahead with the sale of a majority stake in Piraeus Port (OLP) is "part of the overall agreement" and its prospect will depend on the deal presently being negotiated.

[06] "The negotiation has entered the final stretch"

The council, according to government sources, gave clear instructions to the negotiating team ahead of the Brussels Group meeting on Thursday to speed up the procedures so that a mutually beneficial agreement is reached without violating the red lines.

During the meeting, tax and labour issues were discussed as well as the issue of Piraeus Port Organisation (OLP) privatisation.

[07] IMF flexible in negotiations over Greek debt

[08] FinMin Varoufakis proposes ESM 'buy' 27 bln euro in Greek debt held by ECB

Replying to a question by ND MP Anna-Michel Asimakopoulou in Parliament, Varoufakis said that the 27 billion euros in bonds could "disappear overnight and be sent to the distant future, with a swap." A swap between Greece and the ESM was the solution, he added.

"The main thing is that the ESM undertake the burden. Exactly how we will then take it over (perpetual bonds, issue of bonds or other financial tools) is something we can discuss. And I think that there must be national consensus on this issue," Varoufakis said.

Regarding Greece's exclusion from QE, the minister explained that Greece was unable to participate because of an ECB rule almost "dovetailed" to fit Greece's case, that barred the participation of any country that had already transferred 33 pct of its bonds to the ECB.

Essentially, Varoufakis added, the reason why Greece was not participating were the "unacceptable terms of the PSI in 2012" and it would be positive if Greece could take part in QE since that would allow its quicker return to the markets.

[09] German circles recycling Grexit scenarios 'not helping at all', State Minister Pappas tells 'Economist' conference

"Especially at this time, it doesn't help at all," he said, while noting that the centres recycling and distributing scenarios of a Greece exit from the euro were not those surrounding German Chancellor Angela Merkel.

He stressed that the Greek government entered the negotiations with a sincere desire to find a solution. The extreme voices that did not want a solution, "would inevitably suffer a loss of their political weight," he added.

Pappas said that the Greek government desires a comprehensive solution and noted that to pretend that the programme imposed on Greece was successful - and therefore the country must repeat the mistakes of the past - did not do anyone any good.

"An agreement with Greece [repeating] the mistakes of the past does not constitute progress in the talks. Progress in one thing and an agreement on the mistakes of yesterday is another," he said.

[10] This government will not sign memoranda, Independent Greeks leader Kammenos says

"I am telling you that on behalf of the entire government. As I can assure you that this government has made a great effort to come to an agreement. We have submitted specific proposals on all issues - employment, social security, taxation, growth, energy, privatisations - and if there is goodwill on the part of Europe, they will accept them," he added, stressing "they are wrong if they think that this government will kneel and will go to elections."

[11] Parliament Vice-President Mitropoulos: Government can't accept the most harsh version of measures proposed by the creditors

Mitropoulos said he does not see an agreement before mid-June, adding that a progressive government cannot accept to implement the most harsh and despicable version of measures on salaries, pensions and taxes proposed by the creditors.

He admitted that some of the pre-election pledges were possibly excessive and added that Tsipras will not be able to avoid the 'appeal to the people" in the future.

[12] Schulz: EU wants to continue to assist Greece

"That is what I said to the Greek Prime Minister Alexis Tsipras: accept the fact that people want to help."

When asked if it would be better for Greece to leave the eurozone, Schulz replied: "No, first the Greek economy would deteriorate dramatically. Secondly it should immediately be supported financially in a massive way. Thirdly there is the risk of other countries being forced to write off bilateral loans (that have signed with Greece). This in some countries could reverse the effects of the consolidation."

[13] Bundesbank chief says ECB is not Greece's rescuer

The European Central Bank (ECB) should not be used as Greece's rescuer, the head of Germany's central bank Jens Weidmann told a German newspaper, warning that the decision for Greece's future in the Eurozone is clearly political.

Asked whether he would be prepared to stop emergency liquidity assistance (ELA) to Greek banks, thus forcing Greece to an exit from the currency, he said central banks "are not responsible for the composition of the Monetary Union, or for providing financial assistance", according to advance extracts of an interview to Handelsblatt due to be published on Friday.

"Given the ban on monetary financing of states, I don't think it's ok that banks which don't have access to the markets are being granted loans which then finance the bonds of their government, which doesn't have access to the markets itself," Jens Weidmann told Handelsblatt, according to advance extracts of an interview due to be published on Friday.

The banker said ECB should not be burdened exceedingly. "We are not omnipotent. I'm worried by the increasing politicization of the central banks, as well as the growing expectations placed on us. We are in danger of overburdening the central banks, not only in the sense of democratic legitimacy, but also because we would not even be able to solve Europe's problems."

[14] Tsipras meets with AHEPA delegation

Welcoming the delegation, the prime minister asked for the Greeks abroad support underlining their importance particularly when the Greek-American community in the US has the possibility to intervene to a power that can play a decisive role.

I can say that this support is important, said Tsipras at the meeting.

[15] FM Kotzias meets with the EU High Representative for Foreign Affairs and Security Policy Mogherini

According to a Foreign ministry' announcement, Kotzias and Mogherini also exchanged views on the recent developments in Cyprus and the prospect of the reopening of the intercommunal talks. They then discussed the situation in Southeast Europe, expressing their shared concern at the recent events in the Former Yugoslav Republic of Macedonia.

Finally, Kotzias and Mogherini discussed the situation in Ukraine and the upcoming Foreign Affairs Council and June European Council, which will deal with Common Security and Defence Policy issues.

[16] FM Kotzias meets with the Foreign Minister of Bulgaria Mitov

The two Ministers looked at the bilateral political and economic relations between the two countries, the prospects for joint initiatives aimed and ensuring regional stability and development, and preparations for the next Greek-Bulgarian-Romanian trilateral meeting.

Particular emphasis was put on matters of energy policy, as well as on the issue of environmental security, in particular with regard to cross-border management of the water of the Nestos river. Special reference was also made to the problem of Evros river overflow and the need for Greece and Bulgaria to develop a more effective early warning system.

Kotzias expressed his support for the efforts of Bulgaria - as well as those of Romania - to join the Schengen Space, and he accepted his Bulgarian counterpart's invitation to carry out a visit to Sofia for a more detailed discussion of all of these issues.

[17] FM Kotzias to meet with Luxembourg's FM Asselborn on Friday

According to a Foreign ministry's announcement, following the one-on-one meeting, expanded talks will be held between the delegations, and at 13:45 the two Ministers will make joint statements to news media representatives.

Kotzias will then host a working luncheon in Asselborn's honour.

[18] ND leader Samaras: 'The government should apologise to the Greek people'

Commenting on the figures included in Greece's 2015 Reform Programme which was presented to Europe in April, the leader of New Democracy said that "the progress achieved in the last few years is reflected in the macroeconomic fundamentals and is the result of major structural reforms."

This shows the government "fully admits the successes of the previous government," Samaras argued, "and all the things they were questioning" until now.

"Domestically, they continue to lie. But abroad, they started to tell the truth. Of course this doesn't stop them from continuing to destroy everything they have already admitted was correct. I call on the government to apologise, not just to the previous government, but mainly to the Greek people," he added.

[19] Government: 'Samaras' audacity has exceeded every prediction'

"Mr. Samaras' heaping audacity has exceeded every prediction," government sources said following Samaras' call on the government to apologise to Greeks for lying about the successes of the previous administration.

"Unrepentant and arrogant, he celebrates an imaginary success story in the rubbles of austerity-struck Greece," the sources said, adding that the recent admission by a New Democracy MP that if elections haven't been called, the country's cash reserves would have run out by February, show how successful the previous administration really was.

Junior coalition partner Independent Greeks (ANEL) described Samaras' comment as "ridiculous" saying it's the "effort of the former prime minister to sell a bill of goods to Greek citizens".

[20] Government spokesman rsponds to New Democracy on 'tax raid' accusations

The spokesman said it was actually the previous government which "introduced the unified property tax (ENFIA), made the extraordinary solidarity tax permanent, destroyed households and businesses while at the same time turned a blind eye to tax evasion and ignored the 'Lagarde list'."

The current government, he added, voted the law for settling tax arrears which was a relief for households and businesses.

[21] Greece's asylum service says it's 'objectively unable' to meet demands with present staff

The announcement was issued in response to a protest rally by asylum seekers, mostly Syrian nationals, outside the asylum service against the delays in the processing of asylum applications.

The service underlined that every effort was being made to assist applicants by strict order of priority that could not be circumvented and warned that the escalating protests posed a significant threat to people's safety and further increased the long delays.

It noted that Greece had asked for emergency assistance and funding from the European Commission in order to upgrade its asylum service.

According to volunteers, the service was currently able to serve just a handful of people each day and simply submitting an application for asylum could take as long as two months.

[22] Bill on nationality rights for second-generation immigrants posted for public consultation

The bill demands that the children should be attending school at the time the application is made and that at least one of their parents is legally resident in the country for five years prior to their birth.

This is the most major change in the bill regulating issues for so-called 'second-generation' immigrants to the country, improving on previous regulations that demanded that both parents have five-year legal residence in order for the child to qualify for Greek nationality after birth. Acting on the recommendations of the Council of State, which found previous requirements inadequate, it also added the requirement that nationality be granted six years after birth, combined with enrollment in kindergarten and primary school.

[23] Parliament's investigation into bailout memorandums to be broadcast on TV, internet

The proposal was passed with the support of the ruling coalition parties SYRIZA and ANEL, far right Golden Dawn, the Communist Party of Greece (KKE) and PASOK, while the opposition New Democracy and Potami parties both voted 'present'.

Sources said that ND had asked for in-camera sessions without cameras present, with only the minutes released to the press.

[24] Bill for public-sector staff evaluation in a month, minister announces at Economic conference

The minister said the aim of the evaluation will be to improve the efficiency of public-sector staff, announcing that he has signed memorandums of cooperation with France and Sweden for exchange of knowhow in this area. It will be combined with a 'mobility' programme that especially targeted health, education and welfare, he added.

Referring to previous attempts to reform Greece's public sector, Katrougalos said these had been mainly "pseudo-reforms" designed to pass troika inspections rather than deal with the real problems in public administration.

[25] HFSF announces call for expression of interest for CEO position

In an announcement, HFSF said that the purpose of this call for expression of interest is to attract candidates with the appropriate profile for the position of the CEO. The terms of the appointment will not exceed the 30th of June 2017.

Requirements/Qualifications:

Candidates should meet the following criteria and conditions:

Education: University degree, ideally in Finance or Economics

Languages: Excellent command of the English language

Field of Expertise: The CEO shall be selected among persons with international experience in banking matters or in matters relating to the resolution of credit institutions

Candidates must also demonstrate strong managerial skills, high level negotiation skills, a broad vision of business issues, unquestionable business ethics and independence

The CEO will be appointed subject to the absence of any personal or legal conflicts and restrictions, as described in the article 4 Law 3864/2010. Applicants will be invited to confirm their compliance with the above and upon appointment to submit a formal declaration.

Financial News

[26] Greece, EBRD sign funding agreement

The agreement was signed in Tbilisi, Georgia, between Economy, Infrastructure, Shipping and Tourism Minister George Stathakis and the bank's representatives.

EBRD's shareholders have voted for the Bank to invest in Greece until the end of 2020. The organisation will deploy its expertise in attracting and encouraging foreign and domestic investment, strengthening the role of the private sector and deepening regional integration. Specifically, the EBRD will help address the issue of insufficient capital for Greek private companies, especially small and medium-sized enterprises. This is a key barrier to growth, where the EBRD can contribute significantly with its equity and commercial debt products.

The EBRD will also engage, where possible, in expanding the private sector's role in infrastructure and energy. Greece is a natural trade and investment partner for many countries in south-eastern Europe where the EBRD has a strong presence. The Bank will support investments and policy measures which are conducive to integration.

EBRD President Sir Suma Chakrabarti said: "We are very happy to be able to apply our particular expertise in the private sector to the Greek economy. The EBRD will be fully engaged to make the most of its temporary mandate in the country. By concentrating on the private sector we are seeking to actively contribute to the reform and recovery of the country's economy."

A Greek Economy ministry announcement said the agreement was of great importance for the Greek economy as it could contribute significantly towards economic recovery in the country and boosting both liquidity to Greek enterprises, mostly small- and medium-sized, and employment.

The EBRD also intends to open an office in Athens.

[27] Greece risks deep recession if negotiations fail-EBRD

The Greek economy, which grew by 0.8 percent in 2014, would show zero growth this year and expand by two percent in 2016, provided Athens reaches an agreement with eurozone countries and the economic aid to Greece is unlocked.

But "these forecasts would be rendered completely invalid in a negative scenario," the EBRD said in the report published during its annual meeting held in the Georgian capital Tbilisi.

According to the report, "Greece would likely fall back into a major recession, the size and duration of which are difficult to quantify now."

"Business confidence has been badly hit by widespread fears that Greece may default on its external debt obligations and perhaps, in an extreme scenario, even exit the eurozone," the EBRD added.

[28] Greece seeks agreement with EBRD to fund SMEs

According to sources, Greek SMEs could drain recycling loans, worth up to 500 million euros. The funding program is expected to last until the end of 2020. Greek authorities were also discussing with EBRD the possibility of opening offices in Greece within 2015.

[29] Russian minister: Possible Greek membership in BRICS bank will not be discussed before July meeting

The possibility of Greece joining the New Development Bank of BRICS countries will not be discussed before the group's summit meeting in the Russian town of Ufa in July, Russian Deputy Finance Minister Sergey Storchak told journalists on Thursday.

Commenting on the offer he made to Prime Minister Alexis Tsipras over the phone and in an interview with ANA-MPA, Storchak said: "According to the BRICS bank's statutes, membership is open to all member-states of the UN. This is the whole issue in a nutshell," the minister was quoted as saying to RIA-Novosti.

The deal for the creation of a BRICS development bank was signed in June of 2014 and, according to analysts, its programmes are aimed at the five BRICS members and other developing nations. However cooperation with developed countries is not ruled out.

[30] Economist: Bank officials refer to the need of managing bad loans

The bankers referred to non-performing loans that are the great challenge of the domestic banking system and the support of the economy and businesses through lending.

They also referred to the restrictive liquidity conditions as a result of the delay of the agreement and the massive outflow of deposits, which have reached 91 billion euros since 2009.

More specifically, the CEO of Piraeus Bank Anthimos Thomopoulos underlined that non-performing loans will peak at the end of 2015 and expressed optimism that Greece will leave the vicious circle of recession of the last five years.

The deputy managing director of the National Bank Pavlos Mylonas referred to the restructuring plans of Greek banks and the management of bad loans adding that the management of bad mortgage loans is even more difficult.

[31] FinMin Varoufakis presents privatization mixture plan

The Greek FinMin said he was in favour of exploiting state property but not selling it at minimum prices, while he referred to a mixture of privatizations where the state will keep equity stakes which could be transferred to a new development bank and used as collateral for investments (with the active role of European Investment Bank).

Varoufakis underlined that a large number of foreign direct investments were currently waiting to be implemented as soon as the country completed an agreement with its partners. Referring on the banking system, he said it was necessary to resolve the non-performing loans problem and to contribute to the funding of the Greek economy. He supported the idea of creating a company to manage banks' assets and said the idea was part of negotiations currently underway. Commenting on Greek public debt, Varoufakis said it has to be redesigned as it was not sustainable.

[32] VAT rate on islands not to change till September, FinMin Varoufakis says

He also said that a special committee has been set up to estimate the actual compensation that the Greek state is entitled to.

However, the Minister argued that the cancellation of the agreement is not an easy task, as the disbursement of the compensation has already started. But as he noted, the political and legal handling of the case was not the proper one.

He also said that the ministry respects the independence of the Bank of Greece but urged the central bank not to criticize the government's work. Responding to a parliamentary question by ANEL deputy Nikos Nikolopoulos, Varoufakis said: "The Finance ministry respects the independence of the Bank of Greece. However, I will make an observation: independence works both ways. I am not going to break -in any case- the principle of the central bank's independence and comment on the way it operates. But the Bank of Greece should also respect its independence and not intervene with comments on government work."

Earlier, Varoufakis announced that the VAT rate on islands will not change until September.

In reply to a New Democracy deputy question, Varoufakis stressed that the post-September tax system will take into consideration the particularity of each island and the vulnerable ones of the tourist sector.

[33] Energy Minister Lafazanis discusses ongoing projects with Edison officials

Edison is participating in a project to construct the Greek-Bulgarian gas pipeline, funded by the European Commission, a Greek-Italian pipeline, as well as in a joint venture with Hellenic Petroleum for power production and supply through the company Elpedison Energy.

The Italian group was represented by Roberto Poti, Executive Vice President of the group, Ioannis Zissimos, President of Edison Hellas, Michel Piguet, Chief Executive Officer of ELPEDISON Energy & Power, and Elio Ruggeri Chief Executive Officer of IGI Poseidon. The Secretary General for Energy and Mineral Raw Materials, Apostolos Alexopoulos also attended.

[34] Taxpayers massively respond to favorable terms repayment scheme

As a result, overdue debt included in these applications totaled 1.972 billion euros, more than double compared with last year's program. Debt collection totaled 102,496,297 euros, sharply up from 36,814,658 euros last year.

[35] Eurobank reports lower losses in Q1

A bank announcement said this development was compatible with a target of returning to profitability in 2015 and was attributed to a reduction in the cost of credit risk, lower deposit costs and lower operating spending.

Pre-provision profits grew 7.2 pct from the fourth quarter of 2014 and 11 pct from the first quarter of 2014 to 216 million euros. Bad debt provisions totaled 303 million euros in the first three months of the year, covering 55.6 pct of non-performing loans. New loans in delay grew to 391 million euros, from 239 in the previous quarter, with total NPLs accounting for 34 pct of loan portfolio.

Loans grew by 1.0 billion euros to 52.9 billion, with loans to enterprises and households totaling 27.3 billion euros and 25.5 billion respectively. Deposits fell 5.9 billion euros in the first quarter to 34.9 billion euros at the end of March, while dependence from the Eurosystem grew to 29.1 billion euros from 12.5 billion in December and the loan/deposit rate was 122.7 pct.

Nikolaos Karamouzis, chairman of the board, commenting on the results said: "An anticipated positive prospect of an agreement with our European partners will set the necessary preconditions of smoothing conditions in the economy and the markets and will facilitate, with the adoption of necessary reforms, a rapid restart of the Greek economy and of economic growth."

Fokion Karavias, chief executive of Eurobank said that the results "proved the correctness of the bank's business planning and resilient of the bank in difficult conditions."

[36] Capital market authority fines foreign companies for illegal short selling

The Capital Market Commission announced a fine of 40,000 euros against Tosca Master for illegal short selling of Eurobank's shares, another 30,000 euros on Tosca Focus on illegal short selling on Eurobank's shares.

Also a fine of 10,000 euros against Lombard Odier Darier Hentsch & Cie SA for illegal short selling on Alpha Bank's shares, a 10,000 fine against Hadron Alpha Plc-Hadron Alpha Select Fund for illegal short selling activity on National Bank's shares, another 10,000 against Hadron Master Fund for illegal short selling on National Bank's shares and 10,000 euros fine against Verrazzano European Long Short for illegal short selling on Eurobank's shares.

[37] Greek import price index down 10.5 pct in March

The statistics service, in a report on the so-called "imported inflation" attributed this development to a rapid fall in international oil prices with the import price index from Eurozone states falling 0.7 pct and the import price index from countries outside Eurozone dropping by 18 pct. The composite index was down 0.6 pct in March from February.

[38] No obstacles to Rhodes property tenders from CoS, HRADF says

According HRADF, the court had asked that the special spatial plan drawn up for state-owned real estate be resubmitted in order to formally correct a technical issue that had arisen and this would be carried out as soon as the necessary administrative actions were taken.

[39] Athens posts spectacular rise in number of congresses

Athens mayor George Kaminis who is invited to participate on Tuesday in the panel of the Politicians Forum in the framework of the international tourism exhibition IMEX 2015 in Frankfurt stated "Athens' impressive performance is the result of the cooperation of all the city's agencies as well as of the systematic and coordinated efforts held in the last years."

According to ICCA report, the finds of which will be presented in detail next week in Frankfurt, 80 congresses took place in Athens in 2014, 31 more than 2013 (63 pct increase). Athens' performance had a positive effect on whole Greece that climbed from the 38th to the 20th position of the ICCA world ranking.

[40] Debts amounting to more than 3.504 bln euros in social insurance fund settlement schemes

The total number of debtors settling their debts came to 149,077, while 22,813 were applications made over the internet. Roughly 8.45 pct concerned those with outstanding debts that had dropped out of earlier settlement schemes and entered the new one, while the remaining 91.55 pct were for debtors that did not have earlier active settlements.

[41] Apartment prices down 3.9 pct in Q1

The central bank, in a report, said that according to revised data, the average annual rate of change was -7.5 pct in 2014 (Q1: -9.1 pct, Q2: -8.0 pct, Q3: -7.2 pct and Q4: -5.4 pct), compared with -10.9 pct in 2013.

More specifically, the year-on-year rate of decline in prices was 4.5 pct for "new" apartments (up to 5 years old) and 3.5 pct for "old" apartments (over 5 years old) in the first quarter of 2015. According to revised data, the prices of "new" and "old" apartments declined on average by 6.6 pct and 8.0 pct respectively in 2014.

According to data broken down by geographical area, apartment prices are estimated to have declined year-on-year in the first quarter of 2015 by 3.8 pct in Athens, 5.9 pct in Thessaloniki, 4.1 pct in other cities and 3.0 pct in other areas of Greece. According to revised data, 2014 prices dropped on average year-on-year by 9.2 pct, 6.7 pct, 6.7 pct and 5.1 pct respectively in the above-mentioned areas.

For 2014 as a whole, based on revised data, they declined at an average annual rate of 8.0 pct, compared with -10.9 pct in 2013.

Residential property appraisals conducted with Monetary Financial Institution intermediation for any purpose totaled 3,270 in the first quarter of 2015, down from 4,270 in the previous quarter. Year-on-year, residential property appraisals fell by 23.9 pct in the first quarter of 2015. According to revised data, the number of appraisals in 2014 reached 17,044 dropping substantially by 30.3 pct from 24,446 in 2013.

[42] Greek car market recovering strongly in Jan-April

Hellenic Statistical Authority, in a report, said that car sales grew 43.3 pct in April to a total of 7,801 vehicles, from 5,444 in the same month last year.

In the four-month period from January to April, car registrations grew 13.7 pct compared with the corresponding period last year. However, the market is still 74.8 pct lower compared with the average levels in the decade New lorries registrations grew significantly in the four-month period, while motorcycle registrations were up 7.6 pct compared with the same period in 2014.

According to official figures from the Union of Car Dealers and Importers, Toyota ranked first in the list of sales with 2,966 and a market share of 11.8 pct, followed by VW (2,623 and 10.5 pct), Nissan (2,242 and 8.9 pct), Opel (2,081 and 8.32 pct), Peugeot (1,627 and 6.5 pct) and Citroen (1,444 and 5.8 pct).

[43] Greek stocks end moderately higher

Athens Water (6.48 pct), MIG (6.20 pct), Motor Oil (3.73 pct) and Hellenic Exchanges (3.07 pct) were top gainers among blue chip stocks, while Aegean Airlines (7.01 pct), Piraeus Bank (3.70 pct) and PPC (3.47 pct) suffered the heaviest percentage losses of the day.

Among market sectors, Financial Services (3.57 pct), Telecoms (2.94 pct) and Commerce (2.31 pct) scored big gains, while Media (4.57 pct), Personal Products (1.06 pct) and Food (0.56 pct) suffered losses.

Broadly, advancers led decliners by 73 to 45 with another 19 issues unchanged. Centric Holdings (22.73 pct), Teletypos (18.84 pct) and Dionic (17.02 pct) were top gainers, while Pegasus (20 pct), Galaxidi (19.25 pct) and ANEK (14.49 pct) were top losers.

Sector indices ended as follows:

Banks: -0.13%

Insurance: +0.70%

Financial Services: +3.57%

Industrial Products: +0.04%

Commercial: +2.31%

Real Estate: +1.18%

Personal & Household: -1.06%

Food & Beverages: 7.241.13 -0.56%

Raw Materials: 2.557.67 +0.47%

Construction: +1.40%

Oil: +1.85%

Chemicals: +0.14%

Media: -4.57

Travel & Leisure: +0.05%

Technology: +1.61%

Telecoms: +2.94%

Utilities: -0.66%

Health: +2.61%

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

Selected shares from the FTSE/ASE

Large Cap index closed in euros as follows:

Alpha Bank: 0.329

Eurobank 0.140

Public Power Corp (PPC): 5.00

Coca Cola HBC: 19.30

Hellenic Petroleum (ELPE): 4.64

National Bank of Greece: 1.22

OPAP: 8.55

OTE: 8.75

Piraeus Bank: 0.443

Titan: 22.50

Grivalia Properties: 7.89

Aegean Airlines: 7.16

[44] Greek bond market closing report

In interbank markets, interest rates moved lower. The 12-month rate eased to 0.168 pct from 0.169 pct, the nine-month rate eased to 0.106 pct from 0.108 pct, the six-month rate fell to 0.059 pct from 0.060 pct, the three-month rate was -0.009 pct and the one-month rate fell to -0.049 pct from -0.048 pct.

[45] ADEX closing report

General News

[46] Minister Xydakis: Legal action is only one of options available for Parthenon Marbles

Asked about Greece's strategy on the issue, the minister said: "Legal opinions are extremely useful and reinforce Greece's arguments for the return of the Parthenon Marbles, but the Greek government has never stated it is committed to initiating court proceedings in the near future."

He added that "legal action is just one of the many paths opening before us" and that the struggle through diplomatic and political means has yielded "impressive results" already.

Xydakis also noted that public opinion in Britain is in favour of the return of the Marbles.

[47] Defence Minister Kammenos, armed forces leadership attend events for liberation of Thrace

[48] Three customs officers, finance ministry inspector 'nabbed' for suspected corruption

Two of the customs officers had 80,000 euros more in their bank accounts than the amount of their declared income, one customs officer had 56,000 'extra' euros in his bank account and the finance ministry inspector had 509,000 euros that were unaccounted for.

During the first four months of 2015, the internal affairs carried out 37 targeted audits, which uncovered the four cases above. Their findings have been set to the Court of Audit and a public prosecutor.

Weather forecast

[49] Sunny on Friday

[50] The Thursday edition of Athens' dailies at a glance

ETHNOS: The first list with tax measures

IMERISSIA: A plan for agreement

KATHIMERINI: Economy slips into recession

LOGOS: Tax heat wave

NAFTEMPORIKI: Tax storm in two installments

RIZOSPASTIS: The government prepares new attack under the threat of empty state coffers

TA NEA: The agreement will be reached tax by tax

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