Athens News Agency: News in English (AM), 98-03-28

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

NEWS IN ENGLISH

Athens, Greece, 28/03/1998 (ANA)

MAIN HEADLINES

• Government endorses privatisation, cost-cutting proposals
• Greece reports US Dlr 3.5 bln capital influx since devaluation
• Athens proposes unconditional talks on Kosovo crisis
• EU expansion officially begins on Monday
• Ano Liosia hit hardest by floodwaters
• Special committee says curfew on immigrants is invalid
• Albanian president urges cooperation to fight organised crime
• US embassy says visa still needed for Greek citizens
• Greek jobless steady at 10.3 pct in 1997
• Greek stocks post new record, break resistance at 2,000 pts
• Greek tourism to benefit from devaluation - GNTO
• EU's industrial output rises by 3.8 pct in '97
• Youths rampage through Athens music store
• OA flight to Paris delayed after crack found in windscreen
• Writer Traiforos dies after long bout with illness
• Weather
• Foreign Exchange

NEWS IN DETAIL

The cabinet yesterday endorsed proposals by National Economy and Finance Minister Yiannos Papantoniou on privatising public enterprises and cutting public spending by 326 billion drachmas.

The moves are part of the government's plan to effect structural changes in the economy ahead of the country's entry into the European Union's economic and monetary union on January 1, 2001.

Public utilities and other key companies will be privatised by up to 49 percent of their stock. The group includes Hellenic Telecommunications Organisation, Public Power Corporation and the Athens Water Board.

Smaller firms may undergo full privatisation if recommended by the government's privatisation consultant, the National Investment Bank for Industrial Development.

Another method would be a part-sale to a strategic investor, who would also undertake management. Among firms in the category are Duty Free Shops, which was originally slated for a part-listing on the Athens bourse, Athens racetrack, Corinth Canal and Olympic Catering.

The ministry will provide a timescale by the end of April. The cabinet also endorsed the following privatisations:

• Part-listing of the Public Petroleum Corporation in June
• A third stake (15 percent) of Hellenic Telecommunications Organisation for listing in the last quarter of 1998
• Sale of Macedonia-Thrace Bank in April
• Sale of Cretabank in June
• Sale of Bank of Central Greece in July

Mr. Papantoniou said cuts in state spending of 326 billion drachmas would come from the following sectors:

• Reduction in spending by ministries, leaving social programmes of the health and education ministries untouched
• Savings through a small package of social insurance measures, which are contained in a bill to be tabled in parliament in May
• Savings from the government's public investments programme.

Greece reports US Dlr 3.5 bln capital influx since devaluation

Capital inflows into Greek financial markets totalled 3.5 billion US dollars since the drachma's devaluation and entry into the European exchange rate mechanism on March 14, National Economy and Finance Minister Yiannos Papantoniou said yesterday.

He said that in the last two weeks the Athens Stock Exchange had shot up 30 percent and the drachma strengthened by 3.0 percent against most foreign currencies, two developments reflecting renewed foreign confidence in the Greek currency.

Interbank rates also fell while yields on Greek state securities were more closely aligned to German bonds.

"This shows us that we have a competitive advantage and took the right decision in entering the final stage of participation in EMU," Mr. Papantoniou told reporters after a cabinet meeting.

Athens proposes unconditional talks on Kosovo crisis

Greece yesterday proposed the immediate holding of a dialogue without preconditions between the Federal Republic of Yugoslavia and representatives of the ethnic Albanians of Kosovo elected after elections in the province on Sunday.

Foreign Undersecretary Yiannos Kranidiotis made the proposal at a meeting in Athens on the crisis in the strife-torn Yugoslav province.

Mr. Kranidiotis referred to Ibrahim Rugova, head of the Democratic League of Kosovo, as a "reliable" negotiating partner.

Mr. Rugova ran for and won re-election unopposed in Sunday's elections organised by the ethnic Albanians of Kosovo which were viewed as illegal by Federal Yugoslavia.

EU expansion officially begins on Monday

The European Union's expansion process will be officially inaugurated on Monday with a joint session of the Union's 15 foreign ministers and their counterparts from 11 central and eastern European countries as well as Cyprus.

Six inter-governmental conferences will be convened on Tuesday to deal with the opening of admission talks with Hungary, Poland, the Czech Republic, Estonia, Slovenia and Cyprus.

Monday's meeting is expected to be attended by Foreign Minister Theodoros Pangalos, Alternate Foreign Minister George Papandreou and Foreign Undersecretary Yiannos Kranidiotis.

Ano Liosia hit hardest by floodwaters

Heavy rains that hit the northwestern areas of Attica prefecture over the last two days flooded more than 1,000 acres and about 1,000 homes, according to press reports.

Residents of the Ano Liosia, Limni and Agios Nikolaos districts, north of Athens, were angered over allegations that the Athens Water and Sewerage Co. (EYDAP) delayed building a main storm sewer in the region, despite promises made by government officials in 1994.

In answer, EYDAP officials said delays are due to the fact that many area residents had not vacated properties in the construction zone, angered with the amount of compensation paid by the utility.

EYDAP officials noted that the company was forced to take those residents to court, and as a result the construction was delayed by seven months.

Displaced residents in the floods were housed in local hotels.

Special committee says curfew on immigrants is invalid

A special three-member committee set up to examine disputed local government decisions yesterday ruled that a dusk-to-dawn curfew on illegal immigrants, drawn up by a northern Greece village's community council, is invalid.

Local authorities in Palio Keramidi, Pieria prefecture, earlier this week ordered undocumented foreign workers off village streets after nightfall.

Albanian president urges cooperation to fight organised crime

The need for better cooperation between the Balkan states in order to fight organised crime was stressed by Albanian President Rexhep Mejdani in Thessaloniki yesterday.

The Albanian president, speaking at a ceremony held in his honour at Thessaloniki's Aristotelion University, expressed dismay at what he called the "collective" punishment of Albanian nationals living in Greece. He urged the media to work harder in presenting the truth on the recent escalation of crime in Greece.

"Police in Greece, Albania and other Balkan states can continue our joint efforts to establish better relations and to fight organised crime, smuggling and other illegal activities," he said, adding: "Otherwise, the problem of crime in the Balkans will become much worse."

US embassy says visa still needed for Greek citizens

The US embassy in Athens yesterday announced that visitor-visas for travel to the United States are still required by Greek citizens planning a visit.

An embassy press release stated that although the US Congress is currently considering legislation on the issue, press reports are premature.

The embassy clarified that Washington has implemented a visa waiver pilot programme for several years. That programme will soon expire.

The US Congress is considering legislation to extend the programme and has recently voted to liberalise the refusal rate criterion.

The embassy also noted that legislation must still be passed by both Houses of the US Congress and must be signed by the US president before it becomes law.

Greek jobless steady at 10.3 pct in 1997

Greek unemployment last year held steady at 10.3 percent of the workforce, the same as in 1996, the Greek National Statistics Service (ESYE) said yesterday.

ESYE said a sample survey showed that of a total workforce of 4,294,405 people, 89.7 percent or 3,854,055 were employed, and 440,350 or 10.3 percent were unemployed in 1997.

In 1996, the workforce was 4,318,302, of whom 89.7 percent or 3,871,923 were employed and 10.3 percent or 446,379 were unemployed.

Greek stocks post new record, break resistance at 2,000 pts

Greek equities surged to a new record yesterday with the general index breaking the 2,000-point barrier for the first time in its history.

Traders said foreign and domestic demand for blue chips remained buoyant reflecting renewed confidence in the Greek economy.

Foreign institutional investors expect Greece to participate in the European Union's economic and monetary union in 2001 following the drachma's entry into the exchange rate mechanism and the government's plan to speed up privatisation.

A declining trend in domestic interbank rates and the government's pledge to proceed with the privatisation of two state banks (Macedonia-Thrace Bank and Ionian Bank) encouraged sentiment.

The general index rose 3.54 percent to end at 2,063.32 points, showing a 7.74 percent gain in the week.

Trading remained heavy with turnover at 85.2 billion drachmas.

Greek tourism to benefit from devaluation - GNTO

Greek tourism will benefit from the drachma's recent devaluation if the sector adopts a reasonable pricing policy and avoids profiteering, Nikos Skoulas, the Hellenic Tourism Organisation's (GNTO) general secretary, told the Athens News Agency yesterday.

Mr. Skoulas said that the change in the drachma's parity against foreign currencies would make tourism in Greece cheaper, and therefore more attractive.

He said GNTO was cooperating closely with the development ministry in order to fully exploit the competitive edge offered to Greek tourism after the drachma's devaluation on March 14.

Mr. Skoulas believes that business, tourism and the economy will benefit immensely if participants adopt a prudent pricing policy and promote measures to improve quality of services.

"Greek hoteliers have said that there will be no change in this year's prices," Mr. Skoulas said.

Mr. Skoulas, who urged the provision of better services, acknowledged that an increase of 10-12 percent would be rational based on recent data.

EU's industrial output rises by 3.8 pct in '97

Average industrial production in European Union member-states increased by 3.8 per cent in 1997, notably higher than the increase recorded in 1996 (0.1 per cent), according to an announcement by the EU statistical service in Luxembourg.

The lowest increases in industrial production were recorded in Britain (1.2 per cent), Greece and the Netherlands (1.9 per cent).

Youths rampage through Athens music store

About 25 to 30 youths, described by eye-witnesses as "anarchists", charged into one of the biggest music stores in the centre of Athens this morning, injuring a security guard and causing damage to goods.

Using handcuffs, members of the group immobilised and punched the guard, Theodosis Tavroulakis, 33 who was later taken to hospital. Doctors said he was not in danger.

The youths also damaged dozens of records and CDs before leaving the Metropolis store on Panepistimiou St.

OA flight to Paris delayed after crack found in windscreen

Passengers on an Olympic Airways flight travelling from Athens to Paris via Thessaloniki suffered ten hours of hardship when a crack was discovered in the Boeing's cockpit windscreen.

About one hour after taking off yesterday, the crack was discovered in the windscreen in front of the co-pilot and the crew decided it would be advisable to return to Thessaloniki.

The 83 passengers remained for ten hours at the northern city's Macedonia international airport before the windscreen was replaced and the flight resumed.

Technicians who were later asked about the problem said that the crack posed absolutely no danger.

Writer Traiforos dies after long bout with illness

Eminent writer, stage director, lyric-writer and poet Mimis Traiforos died early today after a long illness at the age of 86.

In 1940, Traiforos wrote the lyrics for the stirring "Children, children of Greece" which became a symbol of the Greeks' national struggle against the fascist Italian attempt to invade the country from Albania.

He also worked with many of Greece's most famous composers, including Manos Hadjidakis.

Traiforos will be buried at the Athens First Cemetery on Tuesday.

WEATHER

FOREIGN EXCHANGE

(C.S.)

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