Athens News Agency: News in English (AM), 97-05-28
NEWS IN ENGLISH
Athens, Greece, 28/05/1997 (ANA)
MAIN HEADLINES
- Simitis asks Demirel for clarifications during brief Paris meeting
- Turkey urged to end policy of regional destabilisation
- Bank of Greece action to stabilise drachma
- More joint Greek-Turkish business initiatives urged
- Athens bourse tops emerging markets' returns
- Stock prices in correction trend
- Greece ready for Schengen accord
- Greek firm to build pre-fab homes in Bosnia
- 'Treasures of Mount Athos' on display in June
- New tourist guide
- Weather
- Foreign Exchange
NEWS IN DETAIL
Simitis asks Demirel for clarifications during brief Paris meeting
Prime Minister Costas Simitis yesterday had a brief discussion with Turkish
President Suleyman Demirel on the sidelines of a signing ceremony in Paris
for the recently agreed Founding Act on Mutual Relations between NATO and
Russia .
At a press conference after an official dinner hosted by French President
Jacques Chirac, Mr. Simitis said he had discussed with the Turkish
president points of the latter's recent interview with the Athens-based
television station "Antenna" , which he said needed clarification. The
Greek premier said he did not agree with the Turkish leader's positions.
Mr. Simitis told Mr. Demirel that Turkey appeared to be seeking a revision
of the arrangements included in international treaties as well as the non-
implementation of International Law.
Mr. Demirel reiterated to the Greek prime minister Turkey's known position
that "we must discuss all this", but Mr. Simitis also reiterated that "we
must first recognise the basic rules and then hold discussions".
Asked if Greece was considering the signing of a non-aggression pact with
Turkey, as proposed by the Turkish president, Mr. Simitis said Athens could
not state in advance and in detail the tactics it would follow in its
relations with Turkey, as it would be detrimental to the countryYs
interests.
Asked to comment on contradictory recent statements of Turkish officials,
Mr. Simitis stressed that "the Turkish stand has not changed for some time
now".
Turkey urged to end policy of regional destabilisation
National Defence Minister Akis Tsohatzopoulos yesterday warned Turkey to
end what he called its destabilising and expansionist attitude, while
referring to recent developments in Greek-Turkish relations.
"There are no grey regions, there is nothing to negotiate with Turkey in
the Aegean. The only thing which exists is for Turkey to realise that in
continuing its destabilising and expansionist attitude, it will be
proclaimed the number one destabilising factor in the region," he
said.
Mr. Tsohatzopoulos was commenting in Thrace on statements by Turkish
Foreign Undersecretary Onur Oymen on Monday while in Athens. He said
Turkey's leadership, apart from its internal problems, must change its
tactics and realise that its course towards the European Union passes
through a change in attitude and position.
Addressing members of the armed forces participating in a firing exercise,
Mr. Tsohatzopoulos said Greece is the only European Union and NATO country
whose sovereign rights are being officially disputed by a neighbouring
country, which is also a member of the same security organisation. Greece's
reply is widening its defence doctrine with new weapons systems, which will
directly confront every hostile act in whatever part of the country where
danger may appear.
Mr. Tsohatzopoulos said new weapons systems will be purchased by the end of
the year which will be included in the armed forces' overall potential with
the purpose of further strengthening regional defence and the possibility
of a flexible response to any hostile provocation.
He said that in the framework of the armed forces new structure, new modern
and large military bases will be created with a multiple use.
Bank of Greece action to stabilise drachma
The money market appeared nervous yesterday after increased demand was
shown for the European Currency Unit (ECU). The Bank of Greece intervened,
providing Ecu400 million to keep the ECU at desired levels against the
Greek drachma.
The ECU's parity in the fixing rate closed at 311.90 drachmas, increasing
by 0.17 per cent. According to reports, the uneasiness is linked to
uncertainty prevailing in many European markets due to the results of
general elections in France last Sunday.
More joint Greek-Turkish business initiatives urged
The third Greek-Turkish Forum ended in Istanbul yesterday with a joint
statement urging businessmen from the two countries to launch more joint
activities.
The sides decided to increase cooperation on issues such as large
infrastructure projects and to evaluate opportunities for joint interests,
the statement said.
The two sides decided during the forum to urge their governments to promote
joint initiatives between Greece and Turkey, and to sign a double-taxation
agreement.
It also stressed that more joint economic activities were required, "with
the belief that the forum contributed to bilateral understanding," the
statement read.
The primary fields for economic cooperation were determined as being
tourism and maritime transportation, while the two sides said a committee
will be formed to hold detailed discussions regarding cooperation in the
tourism sector.
Another committee is to be set up to conduct studies for the viability of
joint projects with the European Union.
The forum's next meeting is to be held in Athens in October.
Athens bourse tops emerging markets' returns
The Athens Stock Exchange is at the centre of domestic and international
investment interest as the general index breaks new ground after setting an
all-time high of 1,727.70 points last Friday.
Share prices have risen more than 85 percent since the start of the year
and transactions made by stock broking firms exceed three trillion
drachmas.
A rapid drop in inflation and interest rates, which have made equities more
attractive compared with other traditional investments (bonds, bank
deposits, etc), lies behind this upsurge in the market. Forecasts of higher
corporate profits in 1997 - expe cted to total one trillion drachmas, up 20
percent from 1996 - also have had a positive impact on market sentiment.
Market analysts also point out that political stability and the socialist
government's determination to proceed with a European Union econo mic
convergence programme have encouraged foreign investors in particular.
In the medium-term, investment interest is expected to remain strong as the
market awaits the flotation of about 300 billion drachmas worth of shares
from the government's privatisation programme through the sale of minority
stakes in Hellenic Telecommu nications Organisation (OTE), Public Petroleum
Corporation (DEP) etc.
Analysts stress that the Greek market looks healthy now in comparison with
1990 when it set its previous all-time high of 1,684.31 points.
Inflation currently stands at 5.9 percent from 20.4 percent in 1990 with T-
bill interest rates falling to 9.6 percent from 24 percent in that
year.
The market's P/E ratio stood at 24 in 1990, double the current figure, an
indication that the the Greek market looks cheap and has potential for
further advance.
The Athens bourse's performance is by far the best among emerging markets,
both in drachma and in dollar terms.
According to a Financial Times survey, the Greek market's returns were 58.3
percent from the start of the year until mid-May followed by Brazil with
33.7 percent and Turkey with 33.1 percent in dollar terms.
Stock prices in correction trend
Share prices moved lower on the Athens Stock Exchange on Tuesday in what
dealers described as a normal correction of the market after its record-
breaking rise last Friday and Monday's suspended session.
The general index closed 0.79 percent lower at 1,714.05 points, with most
sector indices losing ground with the exception of Investment, which ended
3.29 percent higher.
Banking fell 0.16 percent, Leasing dropped 2.07 percent, Insurance eased
2.80 percent, Industrials ended 0.64 percent lower, Construction fell 1.30
percent, Holding declined 2.51 percent and Miscellaneous eased 1.91
percent.
The Parallel Market index dropped 2.51 percent.
Trading was extremely heavy and turnover was 43.5 billion drachmas. Newly-
listed Xiosbank soared 20 percent in its first normal day of transactions
to close at 3,180 drachmas.
Broadly, decliners led advancers by 149 to 83 with another 24 issues
remaining unchanged. Alpha Investments and Minerva scored the biggest gains,
while Attica Enterprises, Kalpinis, Rilken and General Bank suffered the
heaviest losses of the day.
National Bank of Greece ended at 38,675 drachmas, Commercial Bank at 13,750,
Ergobank at 22,335, Alpha Credit Bank at 22,050 and OTE at 6,850 drachmas.
Greece ready for Schengen accord
Greece's two biggest airports, Athens and Thessaloniki, are ready to start
operating under Schengen standards five months ahead of schedule.
Members of the Monitoring Committee of External Borders, responsible for
countries participating in the Schengen accord, expressed their satisfaction
over progress made in Athens and Thessaloniki airports.
The Schengen accord foresees free movement of citizens, without passport
control and other formalities within member-countries.
Greece, along with Austria and Italy have pledged the implementation of the
accord by the end of October.
Greece has to take strict measures in order to secure free movement of
people and protection from smuggling and organised crime.
The Committee will visit Greece again in order to monitor the implementation
of security standards along the sea-borders between Greece and Turkey.
Ankara refuses to sign the Schengen accord, rejecting a clause which
obliges signatories to take back illegal immigrants.
Greek firm to build pre-fab homes in Bosnia
ETANE SA, a Greek engineering contractor, is carrying out the industrial
design for construction of 300 pre-fabricated concrete homes in Bosnia as
part of the Bosnian government's reconstruction effort.
ETANE is due to proceed with a share capital increase through an initial
public offering June 2-4 to gain listing on the Parallel Market of the
Athens Stock Exchange.
The company will offer 400,000 new common shares at 1,850 drachmas each and
another 20,000 shares for private placement in order to raise 777 million
drachmas.
The amount will be used for the purchase of equipment and the strengthening
of the firm's capital base.
ETANE's pre-tax profits rose to 474 million drachmas in 1996 from 302
million in 1995 and turnover was 2.3 billion drachmas from 1.7 billion a
year earlier. This year's profits are forecast to reach 633 million
drachmas.
'Treasures of Mount Athos' on display in June
An exhibition of artifacts from the monastic community of Mount Athos is
due to open in Thessaloniki on June 21, within the framework of events for
the Cultural Capital of Europe.
Nearly 600 artifacts, which have never been seen outside of the all-male
Mount Athos, have been lent for the exhibition by 17 of the monastic
community's 20 monasteries.
The exhibition will remain open for six months, while an extension into
1998 is currently under discussion. The whole event has cost public coffers
four billion drachmas.
The artifacts, including antiquarian books as well as priceless manuscripts
and icons, were restored over the past two years by culture ministry
employees at Mount Athos. Hand-woven and embroidered cloths, however, are
maintained exclusively by women, a nd had to be transported to Thessaloniki.
The other artifacts are to be transported to Thessaloniki during the next
few days in order to be displayed in the Byzantine Culture Museum.
The "Treasures of Mount Athos" exhibition will also include articles of
everyday use in the monastic community and a photographic display dedicated
to the natural environment of the peninsula.
New tourist guide
A new tourist guide "Holiday Greece" was presented to the public yesterday.
The guide gives information on all destinations in Greece as well as maps
and useful information for holiday makers and is available in English and
Russian.
WEATHER
Fine weather is forecast for most parts of Greece today except for the
central and northern regions where it will rain. Winds will be northerly,
light to moderate, turning strong in northern Greece in the evening. Athens
will be mostly sunny with temperatures between 16-27C. Thessaloniki will be
mostly cloudy with rain in the afternoon and temperatures between 13-
23C.
FOREIGN EXCHANGE
Tuesday's closing rates - buying US dlr. 269.437
Pound sterling 440.448 Cyprus pd 534.113
French franc 47.021 Swiss franc 190.370
German mark 158.819 Italian lira (100) 16.101
Yen (100) 232.039 Canadian dlr. 196.039
Australian dlr. 206.911 Irish Punt 408.704
Belgian franc 7.692 Finnish mark 52.804
Dutch guilder 141.201 Danish kr. 41.751
Swedish kr. 35.268 Norwegian kr. 38.202
Austrian sch. 22.569 Spanish peseta 1.885
Port. Escudo 1.573
(C.E.)
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