Athens News Agency: News in English (AM), 97-10-16

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

NEWS IN ENGLISH

Athens, Greece, 16/10/1997 (ANA)

MAIN HEADLINES

• Premier concludes visit to Albania, cooperation protocol signed
• Simitis-Nano press conference
• National Bank branch inaugurated in Tirana
• Turkey causes regional tension, Greek minister says
• Greek, Rumanian, Bulgarian Fms to meet
• Parliament begins discussion on Bank of Greece autonomy draft bill
• Construction date for Greek bridge link to be named end-November
• Greece opposes changes to EU rules on cabotage
• Greek stocks edge up in heavy trade
• US institutionals see more gains ahead on Greek bourse
• EU satisfied with improvements at Greek airports
• Investigation into pharmaceutical-maker's practices ordered
• Intralot agreement in Serbia
• Weather
• Foreign exchange

NEWS IN DETAIL

Prime Minister Costas Simitis summed up talks yesterday in Tirana with his Albanian counterpart Fatos Nano by stressing that "gone are the days when the Balkan peoples were unable to find solutions".

"...we have now entered a new era in which all the peoples (of the region) will together try to resolve our problems," Mr. Simitis said after talks with Mr. Nano, which he described as "warm and friendly". Mr. Simitis' one- day trip to Tirana is the first official visit by a head of government in the neighbouring country since general elections in June.

An agreement was signed providing for the opening of three new border crossings and an economic cooperation protocol setting out Greek assistance to the neighbouring country at 20 billion drachmas.

Later in the day, Mr. Simitis and Mr. Nano signed a joint declaration confirming the desire of the two sides for broader bilateral co-operation. The declaration notes the intention of the Greek side to provide multi- faceted support, chiefly in the econom ic sector, whi-le expressing Albania's appreciation for this assistance.

Two billion drachmas of economic aid was granted to Albanian Foreign Minister Paskal Milo when he visited Athens on Sept. 12.

Under the terms of the protocol signed yesterday, a further three billion drachmas will be granted in the form of a loan by the Bank of Greece. The loan will be repaid over a period of 20 years at an interest rate of 3 per cent.

Interest installments will be half-yearly and the principal will be repaid upon expiry of the loan duration.

The remaining 15 billion drachmas will be granted for social infrastructure and housing works (10 billion) and for supporting Albanian, Greek or Greek- Albanian undertakings (five billion).

In the joint statement, the Albanian government expressed its gratitude "for the decisive assistance" which has been and continues to be given by Greece.

The Albanian side acknowledges the support for its economy provided by the remittances of Albanian nationals working in Greece, while the Greek side pledges to speed up procedures concerning the legislative framework which will pave the way for the legalisation in Greece of the larger number of Albanian workers.

Tirana also undertakes the commitment "at the urging of Greece" to intensify efforts to safeguard respect for the rights of the Greek minority throughout Albania, particularly in the education sector.

Both sides view the statement signed yesterday as "the tangible consequence and evidence of respect for and implementation in practice of the spirit and substance of the Accord of Friendship, Cooperation, Good Neighbourly Relations and Security between Greece and Albania".

Simitis-Nano press conference

At a joint press conference by the two prime ministers, Mr. Nano expressed his full satisfaction with the signing of the memorandum on the provision of 18 billion drachmas in economic aid to Albania, and described the terms of the loan as exceptional.

He also said that issues concerning the broader region were also discussed and there was an identity of views. Mr. Simitis said that several of these issues were expected to be discussed at the summit of Balkan leaders in Crete early next month, while referring to matters concerning the ethnic Greek minority in Albania he said: "the more democratic the procedures in a country, the better the treatment of a minority".

Mr. Simitis also met in Tirana with Albanian President Rexhep Mejdani, the leader of the opposition Democratic Party Sali Berisha and Archbishop of Tirana and All Albania Anastasios.

National Bank branch inaugurated in Tirana

The Greek delegation also attended the inauguration of a new branch of the National Bank of Greece in Tirana, in the presence of Archbishop Anastasios.

The branch was inaugurated by Mr. Simitis and Mr. Nano, while a large number of Greek businessmen and members of the Albanian government also attended.

Bank Governor Theodoros Karatzas said in his speech that the new branch had developed the full range of banking services since its opening, and that a significant part of these are related to the transfer of funds from Albanian nationals working in Greece.

Mr. Karatzas stressed that these activities would not be restricted to the large number of Greek businessmen who intend to become active in the neighbouring country, but would also aim at attracting local businessmen as clients.

Turkey causes regional tension, Greek minister says

Greek Minister of Defence Akis Tsohatzopoulos stressed in Nicosia yesterday that Greece wants "peace and stability in the region" and confirmed that Greece and Cyprus' cooperation in defence continues "against any external threat".

Speaking at a joint press conference in Nicosia with his Cypriot counterpart Costas Eliades, Mr. Tsohatzopoulos described his three-day visit to Cyprus as "creative" and said the island is ready should war break out, and the National Guard is effective and modernized.

He also congratulated National Guard Commander Nicolaos Vorvolakos and the Greek Armed Forces for their excellent performance in the five-day "Nikiforos" military exercise which ended yesterday.

Responding to questions, Mr. Tsohatzopoulos said the fact that "Greece and Cyprus have agreements on defence matters to face external threats together" does not create any tension in the area,which is caused exclusively by Turkish moves.

He reiterated that Greece wants peace, "but not at the cost of its own survival and rights".

Mr.Tsohatzopoulos said if the United States or any other country is "interested in reducing tension, then they must turn to the sole source of that tension, which is none other than Turkey" and persuade this country to "stop being a destabilising factor in the region and terminate its occupation of Cyprus".

He confirmed that Greece will participate in the same exercise next year.

Mr. Eliades said Cyprus' defence programme and its cooperation with Greece are irreversible, "unless the demilitarisation of the island is agreed upon or the Cyprus problem is solved".

Greek, Romanian, Bulgarian FMs to meet

The foreign ministers of Greece, Romania and Bulgaria will meet on October 23 in Bucharest, the Romanian foreign ministry announced yesterday.

The three ministers are expected to discuss joint cooperation in transport and joint action against organised crime, according to the announcement.

For Romania, this tripartite meeting is a way to bolster security in the region, spokesman Victor Micula said.

Parliament begins discussion on Bank of Greece autonomy draft bill

A Parliamentary committee has opened discussion on a draft bill providing for autonomy of the Bank of Greece on monetary policy issues. According to National Economy and Finance Minister Yiannos Papantoniou, the draft bill will also harmonise the central bank's operation with provisions of the European Union Treaty.

Mr. Papantoniou stressed that the central bank's primary target was steady prices, namely, a low inflation rate, as well as supporting economic development.

Decisions relating to monetary policy, according to the minister, will be taken by a six-member council, comprising the central bank's governor, two deputy governors and three board members. The council will be of a six-year term.

The draft bill also stipulates that when necessary, the Bank of Greece board will be accountable to a relevant Parliamentary committee.

Construction date for Greek bridge link to be named end-November

The starting date for construction of a bridge linking mainland Greece to the Peloponnese in the west will be announced at the end of November, Public Works Minister Costas Laliotis told state radio yesterday.

The bridge linking Rio and Antirrio will act an as alternative to sea or road transport, slashing travelling time.

The project is to be built according to original specifications and contracts have been signed, Mr. Laliotis told ERA radio in the nearby port of Patras.

National and European Union funds have been earmarked for the project and a loan secured from the European Investment Bank, he said.

The bridge, which is a part of the European Union's transport networks, is due for completion by 2004, Mr. Laliotis said.

Greece opposes changes to EU rules on cabotage

Merchant Marine Minister Stavros Soumakis said the government opposed any changes in a European Union directive on the abolition of cabotage, and a further extension after the year 2004.

Speaking to reporters after a meeting on Tuesday with Greek Eurodeputies and seamen's union representatives, Mr. Soumakis urged Greek shipowners to modernise and renew their fleet in order to better compete with their European counterparts.

The minister said that both sides agreed that a unified policy was in the interests of the Greek shipping industry.

Greek stocks edge up in heavy trade

Greek equities resumed their upward trend on the Athens Stock Exchange to end higher after a short-lived correction in the previous session.

The general index broke the 1,800 mark during the session once again but failed to hold the level. Traders said the market was uncertain whether or not to allow the Athens general share index to go higher.

The index closed 0.63 percent higher at 1,791.97 points. Most sector indices scored gains. Turnover was 27.8 billion drachmas.

Banks rose 0.58 percent, Insurance was 0.20 percent higher, Leasing fell 0.10 percent, Investment increased 0.27 percent, Construction dropped 0.80 percent, Industrials rose 0.93 percent, Miscellaneous was 1.60 percent up and Holding rose 0.20 percent.

The parallel market index for small cap companies fell by 0.63 percent.

Broadly, advancers led decliners by 118 to 104 with another 23 issues unchanged.

Halyps Cement, Keranis, Bank of Attica, Sanyo, Vis and Katselis scored the biggest percentage gains, while Dane, Ideal, Sato and Macedonian Plastics suffered the heaviest losses.

National Bank of Greece ended at 31,690 drachmas, Ergobank at 19,250, Alpha Credit Bank at 21,320, Delta Dairy at 4,110, Titan Cement at 16,285, Intracom at 17,095 and Hellenic Telecommunications Organisation at 6, 700.

US institutionals see more gains ahead on Greek bourse

American institutional investors believe that the Greek stock market has potential for further gains this year despite a 70 percent rise in dollar terms since January. Stefan Alb, an executive at Sierra Global Management said that the fundamentals of the Gre ek market remained strong, corporate profitability had improved and the valuation of stocks remained attractive.

He said there are a number of medium and small-sized stocks with great growth potential in Athens.

Mr. Alb was speaking at a presentation of investment opportunities on the Greek bourse held by the Athens Stock Exchange chairman Manolis Xanthakis in New York to mark the introduction of a second index for the bourse, the FTSE/ASE-20 index.

Mr. Xanthakis said that the Greek market's total value had shot up from 4.49 billion dollars in 1987 to 12.5 billion in 1993 and 40.2 billion in September 1997. The development reflected political stability, a positive trend in macro-economic figures, high corporate profitability and great growth prospects as Athens will stage the 2004 Olympic Games in Athens.

Mr. Xanthakis said that foreign investors accounted for 25-30 percent of total trading, up from a 15 percent five years ago.

Referring to the new index, the Athens bourse chairman said that it aimed to attract foreign interest and to facilitate a future Greek derivatives market.

The FTSE/ASE index is a joint project with FTSE International, a company owned by the Financial Times Group and the London Stock Exchange.

EU satisfied with improvements at Greek airports

The European Union has dropped infringement procedures against Greece following complaints by international airlines that Olympic Airways, which has a monopoly on ground handling services at Athens airport, offered poor services and charged ill-defined ta riffs.

The EU's executive Commission said that the situation had resulted from an abuse of OA's monopoly, which ends in 1998, and opened an infringement procedure.

As a result, the Greek authorities carried out works to improve the eastern terminal at Athens airport which houses foreign airlines.

The authorities also recently amended a law on temporary work which prevented OA from easily recruiting seasonal personnel to cope with the peaks of traffic during the tourist season. A new operator, chosen by tender, will provide from January 1, 1998 ground handling services in competition with OA. A second operator will offer ramp services on January 1,1999.

OA has put in place a system of quality control and minimum standards which it has committed itself to respecting at airports in Athens, Iraklion, Hania, Rhodes, Corfu and Thessaloniki.

OA has also established a new tariff structure better linked to the actual cost of the service.

In addition, projects are or will soon be undertaken in other Greek tourist airports.

Investigation into pharmaceutical-maker's practices ordered

An Athens prosecutor yesterday ordered a preliminary investigation into whether the Boehringer Pharmaceuticals firm is liable to prosecution on a number of charges, following its decision to withdraw a number of medicines from the market and whether it has been overpricing its products.

The prosecutor has also called for the president of the National Pharmaceuticals Organisation (EOF) and the organisation's competent officials to be summoned as witnesses in the investigation.

Meanwhile, the president of the Athens Pharamacists' Association, Eleni Besbea, has filed a lawsuit against anyone responsible for shortages of certain medicines in the market, which, she says, holds dangers for public health.

She also pointed out instances of profiteering and unfair competition, mentioning as a likely cause the abolition of the set price for pharmaceuticals, which she said applies worldwide.

Intralot agreement in Serbia

The Greek company Intralot signed an agreement here on Tuesday for cooperation with Serbia's state-run lottery organisation Loutria, an investment amounting to US$18 million.

The agreement anticipates creation of a modern computer network for Lotto and other scratch-off games, as well as the modernisation of Yugoslavia's lottery agencies.

Intralot not only undertakes to install equipment, but also becomes an equal partner with Loutria, and is committed that the establishment of the first machines will take place in Belgrade in the next six months and gradually in the other Yugoslav citie s.

The Serb partner is committed to depreciating the investment in 12.5 years, paying 8.5 per cent of profits to Intralot, while the latter will also undertake to advertise. The agreement also anticipates the introduction of new games on the Serb market.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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