National Bank lowers interest rates
NEWS IN DETAIL
Greece to brief Int'l community on Cyprus defence upgrading
Athens yesterday reiterated its defence of Cyprus' decision to purchase
Russian-made S-300 surface-to-air missiles, saying it constituted "the
independent initiative of the Cyprus Republic".
Government spokesman Dimitris Reppas said that the decision had been
dictated by the "unusual conditions" prevailing on the island, namely, the
occupation and presence of foreign (Turkish) troops. The multi-million
dollar arms deal was signed in Moscow on Saturday.
The foreign ministry said in a statement that "Cyprus,as an independent
state, has every right to bolster the feeling of security of its citizens."
"Cyprus threatens nobody, it is others who in the past have used armed
force," a Greek foreign ministry statement said, adding that "Greece will
use all means at its disposal with international organisations and friendly
governments concerning Ankara's efforts -as expressed with a series of
threatening statements aimed at the creation of de facto guardianship over
Cyprus - not to succeed.
Moscow rejects criticism
Stressing that the sale of Russian weapons did not violate international
law or any international treaties, Gennady Tarasov, the head of the Russian
foreign ministry's information department, said that no third party had the
right to interfere.
Dismissing international criticism of Moscow's sale of anti-aircraft
missiles to Cyprus, Mr. Tarasov insisted that the deal would not change the
military balance on the divided island.
Mr. Tarasov said Moscow was prepared to cooperate with other interested
countries to seek a lasting settlement on the island within the framework
laid down by the UN, and based on its gradual demilitarisation.
Meanwhile, the Itar Tass News Agency quoted defence commentator Gen.
Nikolai Leonov as saying: "The main reason for the fuss is an attempt to
squeeze Russia out of the world arms market and to strangle the military
industrial complex, so that the Russia n defence industry loses its
competitiveness."
Meanwhile, sources close to diplomatic circles in Russia told ANA that
Moscow has categorically rejected Turkish demarches over the sale of
Russian weapons to Cyprus, citing the 1996 United Nations secretary
general's report on Cyprus that the Turkish-occupied north ranks amongst
the most heavily militarised zones in the world, and calling upon Turkey to
help towards demilitarisation of Cyprus.
Cyprus dismisses criticism over arms deal
The Cyprus government yesterday dismissed accusations,mainly from foreign
countries, that its military build-up would hamper the peace process.
The government has also criticised the US, which strongly opposes the
purchase agreement of Russian S300 surface-to-air missiles by Cyprus, for
not adopting the same attitude over the years towards Turkey's military
presence on the island.
"Those who react are making a big mistake if they believe that boosting our
defence capability is an obstacle to the peace effort for a settlement of
the Cyprus question," government spokesman Yiannakis Cassoulides said here
yesterday.
The spokesman said the government will not use these arms "unless it is
attacked."
Referring specifically to American reaction to the agreement for the
purchase of the Russian missiles, Mr. Cassoulides pointed out that the US
did not react in a similar fashion when Turkey vastly upgraded its
occupation troops on the island.
He said the Turkish occupation troops are armed with US-made and NATO
weapons in contravention to US law and NATO principles.
"Such weapons are meant to be used against possible NATO enemies. Cyprus is
certainly not one of them," Mr. Cassoulides noted.
He also rapped US criticism of the purchase, that it would upset regional
stability.
"Has our region experienced stability with the presence of 35,000 Turkish
troops and its 400 armoured vehicles in Cyprus or with the absolute air
superiority by the Turkish air force?" Mr. Cassoulides wondered.
Cavanaugh to visit region
The US government is sending the State Department's official responsible
for southern Europe, Carey Cavanaugh, to visit the region this weekend. The
official is to make efforts to smooth relations following the signing of
the missile sale.
According to a Cypriot Broadcasting Corporation (CyBC) correspondent in New
York, Undersecretary of State John Kornblum told members of the Greek-
American community that Mr. Cavanaugh's first stop will be The Hague, where
he is to meet with European officials concerned over the situation.
Mr. Cavanaugh is then scheduled to visit Nicosia, Athens and Ankara.
Russian Deputy Foreign Minister to visit Cyprus
Russian Deputy Foreign Minister responsible for Balkan and Cyprus affairs,
Nikolai Afanasefski, will visit the island in late January.
According to the Russian news agency Novosti, Mr. Afanasefski's visit is an
attempt on the part of Moscow to stress that any initiative launched on
Cyprus should be a coordinated effort involving all UN Security Council
permanent members.
Novosti also reports that the Russian official will have meetings with
representatives of the two communities in Cyprus.
The visit is described as a continuation of Moscow's active interest in
efforts towards a Cyprus settlement and follows a letter by Russian Foreign
Minister Yevgeni Primakov to President Glafcos Clerides.
ND leadership agree on framework for party congress at end of March
Main opposition New Democracy's leadership yesterday reached an agreement
on the framework and terms for the holding of an upcoming party congress,
despite disagreement on a number of separate points. Party president
Miltiades Evert met with ND vice-president Ioannis Varvitsiotis and main
leadership contender George Souflias to discuss the conditions on which the
party's congress will be held.
The congress will be held one month later than initially announced,
specifically between March 28-30, in order to give time for two pre-
congress conferences, which will focus on issues related to the party's
charter and programme.
Simitis at Socialist Int'l meeting in Rome
Prime Minister Costas Simitis will visit Rome at the end of the month to
attend the sessions of the Socialist International.
The Jan. 21-22 gathering marks the group's first gathering after a
conference held in New York last September.
Leaders and prime ministers of parties belonging to the Socialist
International will participate in a general assembly to discuss Middle East
problems and voice support for the on-going peace agreement, implementation
of the Dayton Accord, resolving the crisis in Zaire, Rwanda and Burundi, as
well as reform and renewal of the Socialist International.
Art exhibitions slated on Cultural Capital schedule
Two exhibitions were inaugurated yesterday within the framework of events
marking "Thessaloniki '97", the Cultural Capital of Europe.
One is a sculpture exhibition by Max Ernst at the Municipal Gallery, due to
last until Feb. 22, while the other is a photo exhibition by Robert
Doisneau on the ground floor of the Cultural Capital Organisation's
building.
An engraving exhibition by Georg Baselitz will also be inaugurated at the
Goethe Institute today and will last until Jan. 28.
Meanwhile, an exhibition by sculptor Sarkis will be inaugurated tomorrow.
That exhibition will take place at the Archaeological Museum and the French
Institute, lasting until Feb. 7.
Works at Prinos port near completion
New works at the port of Prinos in Thassos are being completed, while its
pier is expected to be covered with cement over an area of 3,500 square
metres.
The port's main pier has a length of 93 metres and a breadth of 23 metres
at present. The project is budgeted at 150 million drachmas.
Completion of the works will primarily enable passenger ships sailing on
the Kavala-Prinos route and vice-versa access to the port with greater
speed and ease.
National Bank lowers interest rates
The National Bank of Greece yesterday announced reductions in its basic
interest rates, effective immediately.
Interest on savings accounts and current accounts are reduced by one-half
percentage point, to 10.25 per cent and 8.75 per cent respectively.
In the area of consumer credit, consumer loans are reduced by one
percentage point to 22.75 per cent, personal loans by 0.75 percentage point
to 24 per cent and interest on credit cards by 0.25 percentage point to 26
per cent, while car loans (direct pu rchase) are reduced by one percentage
point to 20 per cent and interest on purchases (car and merchandise) via
retailer are reduced by 0.5 percentage point to 19.5 per cent.
Basic lending rates for working capital are reduced by 0.75 percentage
point to 16.75 per cent, for fixed installations by 1.25 percentage points
to 15 percent, and fluctuating interest on housing loans by 0.5 percentage
point to 14.75 per cent.
Popular handicrafts sector posts disappointing '96 performance
The year 1996 was one of the worst years for the popular handicrafts sector,
with turnover decreasing by 40 per cent and with the closure of many
workshops, according to the president of the Union of Popular Art
Handicraftsmen of Attica, Odysseas Koumatos .
Mr. Koumatos said the viability of traditional popular art workshops
depends directly on tourism, and particularly the presence in Greece of
average-income bracket tourists, who account for the largest segment of the
sector's shoppers.
He also referred to the problem posed for the sector by extensive imports
of popular art products, which he claimed created conditions of unfair
competition because many are presented as being Greek-made.
WEATHER
Rainstorms and snowfalls will spread in most parts of Greece, but the
weather will improve as of late tonight starting from the west. Northern
and central Greece will be cloudy and rainy, especially in the coastal
regions. Athens will be rainy with temperatures ranging from 9-15C. Same
for Thessaloniki with temperatures from 2-11C.
FOREIGN EXCHANGE
(closing rates - buying) US dlr. 243.566
Pound sterling 412.672 Cyprus pd 519.967
French franc 46.158 Swiss franc 180.132
German mark 156.012 Italian lira (100) 15.872
Yen (100) 210.969 Canadian dlr. 178.957
Australian dlr. 192.289 Irish Punt 407.117
Belgian franc 7.572 Finnish mark 51.991
Dutch guilder 139.009 Swedish kr. 34.954
Norwegian kr. 37.726 Austrian sh. 22.178
Spanish peseta 1.855 Portuguese escudo 1.557
(C.E.)
