OA denies reports of failed restructuring programme
NEWS IN DETAIL
Athens bourse sees six-year high in stock prices
Stock prices soared to a six-year high at the Athens Stock Exchange today
with the general price index closing at 1,306.46 points, up 1.69 per
cent.
Stocks have been gearing up for the assault on the 1,300 point barrier
since the beginning of the year, with profits increasing by 40 per cent.
The general price index last broke through the 1,300 point barrier in April,
1991.
The bullish sentiment is primarily due to the significant fall in inflation
rates, which is expected to continue this month, the subsequent fall in
interest rates and the government's intention to speed up privatisation of
state-run firms.
Investment interest at today's session was centred on bank stocks, which
saw an increase of 3.44 percent.
Turnover was also impressively high, totalling 23 billion drachmas.
Jan-Oct 1996 current accounts deficits rises
The current accounts deficit in January-October 1996 rose to 4.3 billion
dollars, compared to 3 billion dollars in the corresponding ten-month
period of 1995, according to figures released today by the Bank of
Greece.
The bank said the increase was due to a 952.4 million dollar widening of
the trade deficit coupled with a 302.8 million dollar reduction in the
invisibles surplus.
In October 1986, the current accounts deficit reached 646 million dollars,
compared to 627 million dollars in the same month of 1995.
Greeks place 646 billion drachmas with Lady Luck
Greeks gambled a massive 646.1 billion drachmas or approximately 2.4
billion dollars in 1996, compared to 494.5 billion drachmas (1.8 billion
dollars) in 1995, according to figures released today by the National
Statistics Service (NSS).
Casinos earned the lion's share with a turnover of 241.6 billion drachmas
(89 million dollars), marking a massive 273.1 per cent increase over the
1995 figure of 64.7 billion drachmas (240 million dollars).
Of the 241.6 billion drachmas, privately-owned casinos, many of which
opened only recently, raked in 230.3 billion drachmas, against 51.9 billion
drachmas in 1995. State controlled casinos earned 11.3 billion drachmas,
compared to 12.8 billion drachmas in 1995.
According to the NSS, lottery tickets and instant lottery scratch cards
accounted for 178 billion drachmas of the total in 1996, down on the 1995
figure of 190.3 billion drachmas.
Punters gambled 168 billion dollars on the football pools, compared to
186.5 billion drachmas in 1995, while horseracing bets accounted for 56.4
billion drachmas, against 52 billion drachmas in 1995.
ELBO to examine manufacturing a Greek car
The Hellenic Vehicles Industry (ELVO) has announced it is to look into the
construction of a light, multi-use vehicle, initially for the local market,
making use of opportunities the European Union is offering defence
industries to turn to the open market.
Within 1997, ELVO is to examine possibilities for producing a vehicle for
the commercial market, within the framework of the EU's KONVER II programme
aimed at helping defence industries convert part or all of their production
from defence to the open market. The programme's budget stands at 840
million drachmas over three years. ELVO says that within 1997, 410 million
dr. should be absorbed.
Bulgaria the culprit in pirate CDs, Greek union charges
A Greek sound recording union today accused Bulgaria of being the worst
offender in Europe with regard to illegal activities involving pirated
audio products.
The accusation was levelled by representatives of the ''Union of Greek
Sound Recording Producers (EEPH)'' following the seizure of 20,000 pirated
compact discs (CDs) by Serres customs officers on Tuesday.
The Bulgarian driver of the truck in which they were discrovered has been
arrested.
The CDs were anthologies of popular hits by Greek singers as well as
recordings by individual artists.
EEPH president George Karatzas said it was the third time that customs
officers had seized pirated sound recording products originating from
Bulgaria but the first time such a large quantity was involved.
Karatzas claimed that at least five illegal CD production units were
operating in the neighbouring country.
Last year, the Association for the Prosecution of Piracy sued 235 companies
and confiscated 15,000 CDs and 700,000 audio cassettes throughout
Greece.
According to Karatzas, pirated products in the same year resulted in a loss
of 10 billion drachmas for parties holding intellectual property and other
rights, and of course the State.
European Commissioner satisfied with absorption rates in Crete
EU Commissioner for regional policy, structural funds and the cohesion fund,
Monika Wulf-Mathies, today expressed complete satisfaction at the rate of
absorption of Community funds in Crete and the quality of works being
performed.
Wulf-Mathies, who began an official visit to Greece on Tuesday, was
speaking in Chania, first stop on a tour of Crete. She was briefed on the
progress of works during talks at the prefecture building.
After visiting the old part of the city and a women's cooperative
organisation, Wulf-Mathies left for Heraklion.
Papantoniou: stability, consistency characterise Greek economy
Greece's economic policy since 1994 has been characterised by stability and
consistency within the framework of efforts to attain the targets of a
revised economic convergence programme, National Economy and Finance
Minister Yiannos Papantoniou said yesterday.
Speaking at an event marking the presentation of the European Commission's
first report on Economic and Social Cohesion, Mr. Papantoniou underlined
that cohesion policies should contribute to the development of the less
developed EU countries.
The report was presented by European Commissioner for Regional Policy and
the Cohesion Fund, Monika Wulf-Mathies, who began an official visit to
Greece on Tuesday.
"This report clearly shows that the EU's structural policies are indeed
effective in bridging the gap between the rich and poor member-states," Ms
Wulf-Mathies said.
The commissioner said that the four less developed EU countries - Greece,
Spain, Portugal and Ireland - had managed to increase their per capita
income by 65-75 per cent in relation to the Community average, resulting in
a closing of the gap separating them from the wealthier member-states by
one-fifth since the 1980s.
On employment, Ms Wulf-Mathies said that although seven million new jobs
had been created in the EU in the last decade, including one million in
less developed countries, "unemployment remains the Community's most
serious problem, which is why in addition to national measures a coordinated
approach at EU level is also needed."
Iranian official holds talks with Tsohatzopoulos
National Defence Minister Akis Tsohatzopoulos yesterday briefed visiting
Iranian First Vice-President Hassan Habibi on Greece's efforts to promote
its role as a peace and stabilisation force in the region.
Mr. Tsohatzopoulos further informed the high-ranking Iranian official of
what he called the destabilisation factors in the region, citing "Turkish
aggressiveness" and the the fact that a solution to the Cyprus issue has
yet to be found.
He added that the promotion of peace should depend on conditions of
international law, international conventions and agreements.
The meeting also focused on ways to broaden cooperation between the two
countries beyond the energy sector.
Mr. Habibi stressed that Iran considered Greece to be an important friend
and a "bridge of communication" between his country and Europe.
Greek, Hungarian defence counterparts discuss NATO enlargement
National Defence Undersecretary Dimitris Apostolakis held talks here
yesterday with his Hungarian counterpart, Istvan Yarmadi, on the political
situation in Europe, bilateral relations and cooperation in technical and
political sectors.
The two officials also discussed NATO enlargement after which Mr.
Apostolakis said the positions of the two countries were identical.
" Replying to questions on a proposal by NATO Secretary General Javier
Solana for the establishment of a "hot line" link between NATO headquarters
in Brussels, Athens and Ankara, for the avoidance of incident, Mr.
Apostolakis said:
"Greece is willing to cooperate in anything which results in a defusion of
tension in the region."
He added, however, that the setting up of such a link entailed certain
prerequisites, the most important of which was for Ankara to cease its
aggressive policy.
On Greece's stated intention to expand its territorial waters from six to
12 nautical miles as a response to any fresh Turkish provocation, Mr.
Apostolakis said it was a "major political decision." Speaking to reporters,
Mr. Yarmadi said Hungary understood Russian reservations about NATO
enlargement eastwards "without this meaning that we adopt them."
The best solution, Mr. Yarmadi said, is cooperation between Russia and NATO
so that Moscow will be able to lift its reservations."
Primary teachers suspend strike
Primary school and kindergarten teachers yesterday decided to put an end to
their three-week-old strike, while high school teachers' representatives
voted to continue their five-week-old strike.
The decision to end the primary school strike was reached during a meeting
of teachers' local associations, who put the issue to vote. A total of 214
teachers voted in favour of ending the strike, 147 voted against and 29
cast blank votes. At the same time, teachers last night held a rally
outside Parliament, which met to discuss the unrest in the educational
sector.
Inside Parliament and during the debate, Prime Minister Costas Simitis said
"the government has shown, is showing and will show particular sensitivity
on salary-related problems faced by teachers, but within the framework of a
fiscal policy.
OA denies reports of failed restructuring programme
In a report to the European Union concerning Olympic Airways, an EU auditor
stresses that "Olympic Airways will steadfastly maintain its economic
course in the future without state interventions", adding that "the company
is presenting considerable result s, both in its restructuring and the
economic sector."
The airline's administration used that excerpt yesterday in reply to press
reports claiming that "the restructuring programme of Olympic is being
delayed or has failed" or that "the EU is reacting to the closure of the
company's file."
OA's administration expressed displeasure over these reports and, replying
to press questions, stressed that both the state-run company's passenger
turnover and profits are following a steady upward trend.
Specifically, in 1996 (January to December compared to the corresponding
period in 1995) the total number of passengers travelling on both domestic
and overseas flights increased by 7 per cent.
The company's budgeted revenues for 1996 increased by 13 per cent (domestic
and overseas).
WEATHER
Gale force northerly winds and low temperatures are forecast for most parts
of Greece including the Aegean. But the weather will gradually improve as
of tonight starting from the west and north. Snowfall in the mountainous
regions. Athens will be partly cloudy, cold, windy with drizzle and
temperatures between 5-10C. Same for Thessaloniki with temperatures between
-3 to 5C.
FOREIGN EXCHANGE
Wednesday's closing rates - buying US dlr. 263.445
Pound sterling 426.481 Cyprus pd 519.808
French franc 46.051 Swiss franc 178.039
German mark 155.575 Italian lira (100) 15.623
Yen (100) 212.328 Canadian dlr. 194.214
Australian dlr. 201.634 Irish Punt 414.755
Belgian franc 7.539 Finnish mark 52.191
Dutch guilder 138.548 Danish kr. 40.785
Swedish kr. 35.315 Norwegian kr. 39.001
Austrian sch. 22.116 Spanish peseta 1.836
Portuguese escudo 1.550
(M.P.)