Athens News Agency: Daily News Bulletin in English, 15-07-21

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

CONTENTS

[01] Senior management at Greek privatisation agency HRADF to face criminal charges

[02] PM Tsipras chairs meeting on fighting corruption

[03] The government priority is the completion of the programme, State Min Pappas says

[04] Government has no plans for elections at present, new spokesperson Olga Gerovasili tells ANA-MPA

[05] Handover at finance ministry, new minister promises new drive against tax evasion

[06] New minister Panos Skourletis takes over at Productive Reconstruction ministry

[07] New alternate, deputy ministers take over at interior ministry

[08] Early pensions to be abolished, Labour Min Katrougalos says

[09] 'Not one euro can be lost to tax evasion,' new Alt. FinMin for Revenues tells ANA-MPA

[10] EU Commission Vice President warns Greece to meet its commitments

[11] Disbursement of 7.16 bln euro loan to Greece completed, EU Commission spokesman says

[12] Prior actions Greece passes on July 22 do not include pension reform, European official says

[13] IMF confirms that Greece has settled overdue payments to the fund

[14] German Chancellor Merkel rules out debt haircut

[15] FM Kotzias' message on the 41st anniversary of the beginning of the Turkish invasion in Cyprus

[16] Belgian scientists send letter to their government, opposing more cuts to healthcare in Greece

[17] Greece pays its obligations to IMF, ECB

[18] Banks open; capital controls still apply

[19] ECB confirms payment of Greek bonds maturing on Monday

[20] Money in circulation hits record highs in June

[21] Office prices down 3.3 pct in 2014, BoG report

[22] Athens stock exchange remains closed

[23] Gen. Sec. for Industry Yiannis Tolios resigns

[24] Philips Morris Inlt announces new chairman and CEO in Papastratos

[25] Ferry tickets to rise 10 pct for passengers, stay flat for cars, trucks

[26] Guaranteed Minimum Income recipients paid next instalment

[27] Fires in Argolida under control, authorities say

[28] Fire in Mt. Parnitha foothills near inhabited area

[29] Employee killed in fire at Thessaloniki musical instruments' shop

[30] Fair on Tuesday

[31] The Monday edition of Athens' dailies Politics

[01] Senior management at Greek privatisation agency HRADF to face criminal charges

The charges were based on the findings of an investigation into allegations made Piraeus bar association lawyers, who said that the assets were sold on terms that were damaging to state interests. They include embezzlement from the public sector charges against the three HRADF board members but not breach of trust because the HRADF founding law clears board members of all responsibility for actions or omissions approved by the Court of Audit or expert council.

There are also charges of breach of trust against the HRADF experts' council for damages exceeding 580 million euros.

The case concerns 28 state-owned real estate properties transferred to HRADF for exploitation through sale and leaseback contracts for 20 years.

The transactions signed in May 2014 concerned two sales contracts and 28 leaseback contracts (for 20 years) between the Greek state and two parties, Eurobank Properties and Ethniki Pangaia. The total sale price came to 261 million euros, while the state undertook the obligation to pay annual leases that in the first year came to 25.5 million euros.

According to the prosecutors' final report on the deal, the experts' council failed to propose modifications to the terms of the contract so that it was in the best interests of the state and the process finally adopted created potential damages to the Greek state of 580 million euros.

The HRADF board members are charged with failing to transfer promptly the sums paid for the transaction to a special account to a special state account and withholding the interest, which exceeded 100,000 euros.

The case has been assigned to Corruption Magistrate Constantinos Sargiotis.

Charges have also been brought against HRADF board members for failing to pay interest owed for the Golden Hall shopping mall contract, amounting to 361,000 euros.

[02] PM Tsipras chairs meeting on fighting corruption

Emphasis was given on speeding up procedures for combatting tax evasion. Moreover, a draft bill on the voluntary disclosure of deposits in Greece and abroad will soon be tabled in Parliament.

[03] The government priority is the completion of the programme, State Min Pappas says

Asked whether the unity and common path can be ensured when a wing of the party openly advocates the drachma, the State Minister replied: "The permanent rejection is incompatible with the common path. This is understood by all."

He noted that "the government's priority is no other than the completion of the agreement as soon as possible and added: "The government has exhausted the limits of negotiation, the mandate and strength of the people. Our priority is to limit the adverse effects of the agreement. It is to protect the weak. It is the opening of a European debate on the effectiveness of these programmes. As for the elections, it is reasonable for such scenarios to exist when so many deputies of the majority voted against the agreement. So do not expect to abate."

[04] Government has no plans for elections at present, new spokesperson Olga Gerovasili tells ANA-MPA

"Elections are not useful at this time and are not among the government's intentions," she said, predicting that more than 120 [government] MPs will vote in favour of the prior actions that Greece needs to pass on Wednesday for the 3rd bailout to proceed.

"The issue for us is to not lose sight of the aim; it is self-evident that if two different paths continue to be followed, these paths will be divergent and not convergent if this goes on," she said. Noting that the situation remains extremely changeable and fluid, Gerovasili said that elections would not help anything at this time.

She also noted that SYRIZA's Parliamentary group had found itself facing a very harsh dilemma and the reactions were to some degree natural, "possibly because some do not appreciate to the same extent [what is] immediate and necessary and urgent."

The spokeswoman suggested that the days that had since intervened will have helped make the urgency of the matter more apparent, as well as helping MPs overcome the initial shock.

"I believe that there is political maturity among the majority, at least, and this was reflected in the first vote also - I think it will be reflected now, as well. What we had to do was turn aside just before the edge of the cliff and that is exactly what we did. On the other side lay grexit and disorderly default with all that means, which I think would not be manageable," Gerovasili said.

[05] Handover at finance ministry, new minister promises new drive against tax evasion

Valavani thanked Finance Minister Euclid Tsakalotos and confirmed that she will not be giving up her seat in Parliament.

Referring to her time at the ministry, she said that she had several instances of gross mismanagement and hinted that the files of the Public Properties Company (ETAD) revealed a number of "skeletons in the closet" that might interest a public prosecutor.

[06] New minister Panos Skourletis takes over at Productive Reconstruction ministry

Skourletis said his ministry will also focus on environment protection, agriculture and reviving its cooperatives. He also reiterated his commitment to major projects, such as the southern European pipeline.

Lafazanis, on his part, said he will "continue to be present in the battle given by my party, SYRIZA" and pledged to "fully support the unity of SYRIZA through a differentness of views."

He underlined his disagreement with the political agreement decided by the government, to which he attributed his departure from the ministry.

"I am not disappointed, I consider that the new memorandum - and I will fight for this - will be a small 'interval' in the course of the government and of SYRIZA," he said.

[07] New alternate, deputy ministers take over at interior ministry

He also presented the new deputy minister for fighting corruption Pavlos Polakis.

Bernardakis said he will focus on making full use of the very capable and qualified people in the public sector that were currently not living up to their full potential due to bureaucracy, clientelist relations and bad planning.

Polakis said that fighting corruption and punishing those that had smuggled illegal or public funds abroad was a universal demand, especially in connection with public sector procurements relating to health and the illegal fuel trade.

Katrougalos, who will now take over the labour ministry, stressed that there were still margins for a left-wing policy given the strong support of the Greek people and the result of the recent referendum opposing austerity.

[08] Early pensions to be abolished, Labour Min Katrougalos says

"We generally know that many commitments arise from the agreement, this forced agreement, this forced tactical retreat. However, there is room to move and in the framework we would like to do so as a government of social salvation," Katrougalos said.

The full interview is available for subscribers at ANA-MPA website.

[09] 'Not one euro can be lost to tax evasion,' new Alt. FinMin for Revenues tells ANA-MPA

"It is impossible for this government, which is being forced to adopt tough taxation measures that are foreign to its ideological framework and outside its programme, to allow even one euro to be lost to tax evasion," Alexiadis said.

The government would tackle both issues of corruption and tax evasion issues, he pledged.

Asked to list his priorities at the ministry, the minister made clear that there would no further extension of the deadline for submitting tax statements, which was already generous. He also announced sweeping market inspections that would be announced on a day-to-day basis, using all available staff, "to check everything". He also promised changes in the organisation of tax office services that he said would bring about truly impressive, "eye-watering" results.

The full interview in Greece is available on the ANA-MPA website.

[10] EU Commission Vice President warns Greece to meet its commitments

"During the last months, trust has been lost and it needs to be restored," Dombrovskis said in an interview with German newspaper Bild.

If the Greek government meets its obligations and implements reforms, "this will be a very important step", he said.

Dombrovskis noted that negotiations between Greece and its creditors for the third aid programme should be conducted thoroughly. "This will take a few weeks."

Only when stability and confidence return, "can Greece get back to growth path, create jobs and restore confidence especially among the most vulnerable socially," the European Commission Vice President underlined.

[11] Disbursement of 7.16 bln euro loan to Greece completed, EU Commission spokesman says

The disbursement of the 7.16 billion euro loan has been made following the completion of all European and national procedures decided at the last summit on Greece, EU Commission spokesman Margaritis Schinas said on Monday.

He added that deliberations between Greek authorities and the representatives of the institutions will start in Athens soon.

[12] Prior actions Greece passes on July 22 do not include pension reform, European official says

The prior actions that Greece has to pass into legislation on July 22 do not include the measures to discourage early retirement or taxation for farmers, a European official told the ANA-MPA on Monday.

The same source said that the institutions were currently working with Greek authorities on the specific commitments arising from the agreement at the July 12 summit, namely the adoption of a Code of Civil Procedure and the transposition of the Bank Recovery and Resolution Directive (BRRD) into national law.

The Greek side added as a request the adoption of legislation on a primary residence moratorium, the source said.

Measures relating to taxation of farmers and early retirement are to be adopted in the next package of legislation to be passed in the first week of August, the source clarified.

[13] IMF confirms that Greece has settled overdue payments to the fund

"I can confirm that Greece today repaid the totality of its arrears to the IMF, equivalent to SDR 1.6 billion (about EUR 2.0 billion). Greece is therefore no longer in arrears to the IMF.

"As we have said, the Fund stands ready to continue assisting Greece in its efforts to return to financial stability and growth," Rice said.

[14] German Chancellor Merkel rules out debt haircut

German Chancellor Angela Merkel in an interview with German public broadcaster ARD said that the possibility of a loan extension and interest rate reduction is negotiable. However, she rejected the possibility of a debt haircut as this is impossible within a monetary union.

Regarding the Grexit, Merkel said that this option was on the table, but another road was finally selected.

[15] FM Kotzias' message on the 41st anniversary of the beginning of the Turkish invasion in Cyprus

"Greece has never accepted and will never in the future accept as accomplished facts the consequences of the ongoing Turkish occupation, of the violent partitioning, and of the settlement of Cyprus," he stressed.

"The Cyprus problem is an international problem of invasion and occupation. The just resolution of this issue remains a top priority of Greek foreign policy. The relevant United Nations Security Council resolutions and Cyprus' capacity as an equal partner of the European Union determine the framework for the resolution of the problem. An integral part of a real and definitive solution to the problem is the departure of all foreign troops from Cyprus and the termination of the anachronistic Treaties of Guarantee and Alliance of 1960. In this direction, the Greek government fully supports the intercommunal talks under the aegis of the Secretary General of the United Nations, which are the only agreed method of resolution," Kotzias added.

[16] Belgian scientists send letter to their government, opposing more cuts to healthcare in Greece

In a letter to Belgian Prime Minister Charles Michel and the country's health minister Maggie de Block, 26 Belgian scientists and professors of medicine on Monday asked that the Belgian government use its influence to ensure better access to health services in crisis-stricken Greece.

In the letter, they point out that health outcomes in Greece have deteriorated sharply since the start of the economic crisis, with one third of the population now without health insurance coverage, babies born with low birth weights, rising incidents of depression and increasing AIDS diagnoses.

They ask that Belgium's political leaders bring pressure to bear so that European agreements for assistance to Greece establish access to health services, noting that the European summit of July 12 has not guaranteed that measures taken by the Greek government to deal with the crisis will remain in force. In future European negotiations on Greece, they asked that health be explicitly exempted from spending cuts and for Belgium to support a system that allows the Greek government to protect its healthcare system.

Financial News

[17] Greece pays its obligations to IMF, ECB

More specifically, the General Accounting Office gave an order for the payment of about 2 billion euros to the IMF in addition to 4.2 billion euros to the ECB for a bond that expires today and about 500 million euros to the Bank of Greece.

The funds are part of the 7 billion euro bridge loan of the ESM provided by the agreement between Greece and its creditors.

[18] Banks open; capital controls still apply

Moreover, access to safe box deposits is possible without any limitations as of Monday.

[19] ECB confirms payment of Greek bonds maturing on Monday

The total sum of the capital plus interest came to 4.2 billion euros, sources said.

[20] Money in circulation hits record highs in June

In a report, the central bank, said that the value of banknotes in circulation totaled 50.5 billion euros at the end of June, from 45.2 billion a month earlier. The figures showed that money raised from bank deposits remained in the country as depositors opted for the safety of cash, raising the value of cash held by civilians by around 5.0 billion euros in one month.

Meanwhile, Greek banks' dependence on the ECB and the Emergency Liquidity Assistance mechanism (ELA) grew to 126.5 billion euros at the end of June, from 116.4 billion at the end of May. Borrowing from ELA rose to 86.7 billion euros from 77.6 billion in May, while borrowing from ECB edged up to 39.8 billion euros in June from 38.8 billion in May.

[21] Office prices down 3.3 pct in 2014, BoG report

In 2014, office rents for the country as a whole decreased by 10.0 pct (provisional data) in average nominal terms. The corresponding average annual rates of decline are estimated at 6.9 pct for the greater Athens area, 8.3 pct for Thessaloniki and 13.9 pct for the rest of Greece. In the second half of 2014, office rents for the country as a whole declined by 2.1 pct (provisional data) compared with the first half of 2014, a lower fall compared with previous half-years (2013 H2: -6.1 pct, 2014 H1: -6.1 pct)

In 2014, the annual rate of decline of prime retail prices for the country as a whole was 1.0 pct (provisional data) in average nominal terms, a considerably lower fall compared with 2013 (-8.8 pct) and 2012 (-11.1 pct). The corresponding average annual rates of change are estimated at -2.4 pct for the greater Athens area, -0.8 pct for Thessaloniki and 0.9 pct for the rest of Greece. In the second half of 2014, prime retail prices for the country as a whole increased by 1.1 pct (provisional data) in nominal terms compared with the first half of 2014. A rise in prices was also recorded in the first half of 2014 (1.8 pct), in contrast to the second half of 2013 when prices had declined by 6.4 pct. In the second half of 2014, nominal prime retail prices increased compared with the previous half by 1.2 pct in Athens and in Thessaloniki and by 1.0 pct in the rest of Greece.

For 2014 as a whole, retail rents for the entire country decreased by 9.3 pct (provisional data) in average nominal terms. The respective rates of decline are estimated at 9.1 pct for the greater Athens area, 9.2 pct for Thessaloniki and 9.7 pct for the rest of Greece.

[22] Athens stock exchange remains closed

The aforementioned suspensions will remain in force at least until the issuance of a Decision by the Minister of Finance, according to last subpar. Of par. 10 of abovementioned Legislative Act, which will waive relevant restrictions.

[23] Gen. Sec. for Industry Yiannis Tolios resigns

[24] Philips Morris Inlt announces new chairman and CEO in Papastratos

Nikitas Theofilopoulos started his career in Philip Morris in 1997 and took over as head of Papastratos in 2012, helping to return the company into profitability for the first time since 2009.

Christos Harpantidis began his career in Papastratos in 2003.

[25] Ferry tickets to rise 10 pct for passengers, stay flat for cars, trucks

The ferry line companies estimate that the price hikes will lead to an estimated 20-30 pct reduction in passenger traffic, with a loss of 2.5-3.0 million passengers. According to the latest Foundation for Economic and Industrial Research (IOBE) report, roughly 65 pct of passengers using Greece's ferries in 2014 were tourists, of which 5.2 million were Greeks and 3.4 million were foreign nationals.

The tax revenue in 2013, meanwhile, was an estimated 35.6 million euros in taxes for third parties (port fees etc) and 85 million euros from VAT.

[26] Guaranteed Minimum Income recipients paid next instalment

Fotiou said the sum of 3,780,255 euros was paid into the bank accounts of the 16,800 beneficiaries of the programme "as promised".

General News

[27] Fires in Argolida under control, authorities say

Both fires were considered highly dangerous due to their location near inhabited regions and the threat posed to residences.

Nafplio Mayor Dimitris Kostouros said the worst was averted due to the superhuman efforts of fire-fighting forces but also the efforts of local residents that turned out to assist them. He said decisive help was also given by the fire-fighting aircraft the doused the flames from above.

The fire brigade sent 16 fire engines and some 40 fire-fighters to put out the two fires, while local residents assisted with irrigation systems and water carriers. Four PZL aircraft and three Canadair aircraft assisted from the air.

The fire broke out in an area of mostly low-growing vegetation and olive groves, very close to houses and caused damage to the several yards as it burned through settled areas but did not burn down any homes.

Fire brigade forces will remain close by to fully put out the flames and be on standy in case of the fires rekindling.

[28] Fire in Mt. Parnitha foothills near inhabited area

The fire-fighting force has now been reinforced, with 45 fire-fighters, 15 fire engines and a helicopter sent to put out the flames.

[29] Employee killed in fire at Thessaloniki musical instruments' shop

The fire broke out on the first floor of the building on the corner of Papanastasiou and Karamanlis streets in the northern Greek city, for as yet unidentified reasons. The man found dead inside is believed to have become trapped within.

More than 10 fire-fighters took part in the fire-fighting operation and successfully evacuated three people from the burning building.

Weather forecast

[30] Fair on Tuesday

[31] The Monday edition of Athens' dailies

DIMOKRATIA: 23 pct Richter in markets and households

ELEFTHEROS TYPOS: Reversals in retirement ages. Chaos with VAT rates

ESTIA: (Prime Minister Alexis) Tsipras' risky policy

ETHNOS: 150,000 insured people under pressure

NAFTEMPORIKI: Second wave of tax increases

TA NEA: Brussels vote for elections

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