Antenna: News in English (PM), 98-08-25

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From: Antenna Radio <http://www.antenna.gr> - email: antenna@compulink.gr

Last Updated: Tuesday, 25-Aug-98 21:35:47

CONTENTS

[01] Ķull the bidding for Ionian

[02] Pangalos-S300

[03] Christodoulos

[01] Ķull the bidding for Ionian

The decision came as no surprise: the bids were lower than the directors and the government had expected.

The finance minister says there will be a second round of bidding within three months.

But the failure to privatise the bank in the first round of bidding is being called a fiasco by the main opposition party.

The directors of the Commercial Bank made it official Tuesday evening: none of the three offers for the Ionian Bank, Greece's oldest, was deemed satisfactory. The bidding will be held again within three months.

The government has made much of its privaitsation policy and its intention to sell a 51 per cent stake in the bank. Its failure to get the price it had hoped for has many observers saying its a political defeat for the government's privatisation policy. They also argue that it's shaken confidence in the economy.

The stock market dropped six per cent two minutes after opening Tuesday, and closed down 3.62 per cent on Monday's trading. Indicative of the climate was the fact that while 800 thousand shares of the Commercial and Ionian Bank were put on the block, not a single share was bought by uncertain investors. The Commercial and Ionian lost 8 per cent of their value on the Athens exchange.

The Greek drachma came under pressure, and dropped slightly against major foreign currencies. The Bank of Greece was forced to sell 300 million marks, 20 million dollars, and 40 million European Currency Units to defend the Greek currency.

Finance minister Yiannos Papantoniou said the currency pressure was unrelated to the Ionian; rather it had to do with the international upheaval on money markets.

Dismissing claims that the failure to sell the

Ionian amounts to some sort of defeat, he added that in no country does the fate of the economy ride on the sale of a bank.

Expressing surpries at the amount of coverage the bidding has generated, he pointed out that bidding in the privatisation of the Bank of Crete had to be held three times before a satisfactory offer was found.

The first time, no one offered the minimum 130 million dollars the government was asking; in the second round a minimum of 98 million dollars was sought in vain; but in the third round, the Bank of Crete was sold for 310 million dollars.

Financial analysts say the current instability in international markets had an adverse effect on the Ionian bidding; as did the fact that the bank is a small profit-maker.

But that isn't deflecting the criticism.

New Democracy leader Kostas Karamanlis calls the unsuccessful sell off attempt a "fiasco".

He says the government handled the sale amateurishly and so shoulders much of the responsibility for the failure to find a good buyer.

Privatisations are an important policy for the country's future, adds Karamanlis. The Ionian affair shows the government is incapable of implementing that policy because it doesn't really believe in it.

In Monday's bidding, two American companies made much larger offers than the domestic Eurobank. But the Commercial Bank directors were unconvinced that they were reliable tenders.

[02] Pangalos-S300

Theodoros Pangalos adds that Greece and Cyprus's joint defence doctrine means defence cooperation, not that all decisions concerning the defence of Cyprus will be jointly made.

The government position is coming in for criticism from a leading member of New Democracy.

Foreign minister Theodoros Pangalos made it clear after meeting with his counterpart from the Seychelles that the S-300 missile decision belongs to Cyprus alone.

"Our defence pact with Cyprus doesn't mean we decide everything together", he pointed out. "We cooperate in defence matters, but in some things they simply inform us of their decisions and vice versa".

Cyprus wants the anti-aircraft missiles to defend itself against a possible attack by Tukey, which occupies northern Cyprus.

The US opposes the missile installation, arguing that it will heighten tensions.

Pangalos recently suggested to the US that a military flight ban over Cyprus might encourage a move toward demilitarisation in Cyprus.

But that doesn't mean that Greece will interfere with Cyprus's ultimate decision on the missiles.

"If the US believes my suggestion can lead in the direction of demilarisation, then the Americans should pursue it", says Pangalos.

Cyprus says the S-300 missiles will be installed this autumn unless Turkey makes an effort to solve the Cyprus problem and decisive steps toward demilitarisation of the island are taken.

Addressing US objections to the missiles, Pangalos says the matter of Turkish arms should be of

concern to the US, since under US law American arms are being illegally used in occupied Cyprus.

Some observers see Pangalos's statements on the S- 300 decision as amounting to Greece distancing itself from the controverial issue.

Former New Democracy leader Miltiades Evert believes that the joint defence doctrine means that both Athens and Nicosia share responsibility for vital decisions in matters of defence.

After meeting with Evert Tuesday, defence minister Akis Tsochatzopoulos said he'd reassured him that the Greek government is unwavering in its belief that a strong Cypriot defence is a precondition for peace in the region.

But that reassurance is unlikely to end the controversy. Cyprus has already postponed acquisition of the missiles three times, and after president Glavcos Clirides said recently that "for the moment" the missile deal will go ahead as planned, some people believe a fourth postponement may be in the offings. One prominent opposition party MP in Cyprus has said that if the government postpones yet again, then president Glavcos Clirides should resign.

[03] Christodoulos

Archbishop Christodoulos spoke as he visited the Greek-Albanian border Tuesday.

At the border post of Kakavia, archbishop Christodoulos gave the soldiers crucifix's, blessing the men in uniform who guard the country's borders.

He said that being so close to Albania, his thoughts were naturally with the Greeks

across the border. "All we ask is that their rights are respected", he said, "as the rights of all minorities should be".

During a stop in the border town of Bourzani, Christodoulos was the guest of honour at a banquet held by orthodox clergymen.

When they sang a song alluding to the tribulations of Greeks in neighboring countries, the archbishop tapped his glass in approval.

At the border, Christodoulos once again returned to the criticism from members of the government who dislike his penchant for speaking his mind on political and social issues.

Justice minister Evangelos Yiannopoulos says he hopes the archbishop will leave political issues alone.

Christodoulos responded from the border that he will continue to express his views on important national issues when the need arises.

But in the town of Delvinaki, where he was greeted by an enthusiastic crowd, the archbishop clarified that he is a spiritual, not a political leader.

"I'm not a politician and I don't speak politically", he said. "There are problems that the politicians will solve. I'm your spiritual father", he told the crowd, "I'm not here to solve your problems".

Rather, he prays for their solution, he added.

(c) ANT1 Radio 1998

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