A.N.A. Bulletin, 11/07/96

From: "Greek Press & Information Office, Ottawa Canada" <[email protected]>

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 934), July 11, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: [email protected]

CONTENTS

[1] No corrective economic measures for the rest of '96, Papantoniou says

National Economy Minister Yiannos Papantoniou assured yesterday that the economy would require no "corrective" measures in the second half of the current year, but warned that 1997 would be "a very difficult year".

At the same time, Mr. Papantoniou said inflation and interest rates would remain on a downward course, the government's privatization programme would continue and efforts would be made to further cut public spending.

He was speaking to reporters after a two-hour meeting attended also by Finance Minister Alekos Papadopoulos, Development Minister Vasso Papandreou and Bank of Greece Governor Lucas Papademos.

"No corrective measures will be needed for the second half of 1996 but... the 1997 (state) budget will be a difficult and ambitious one, because with this budget we shall have to approach the criteria (set by) the Maastricht Treaty," Mr. Papantoniou said.

For the rest of the current year and throughout 1997, he added, the government will continue to implement its anti-inflation policy "with total consistency and strictness", and persist in its "hard drachma" policy.

The partial privatization of the Public Power Corp. (DEH) through the sale of shares would go ahead, he said, as would the sale of the Bank of Crete, regarding which sale procedures would be determined at the end of the month.

Mr. Papantoniou said the view was expressed at yesterday's meeting that recent political developments had strengthened positive trends in the economy, citing in particular the drop in interest rates. He forecast that inflation would fall considerably by the end of the current year, but not to the government's initial target of 5 per cent "which is no longer feasible due to the conjectural, adverse developments in the international market".

Responding to a question regarding the revocation of the license for a casino in Athens, he said the decision had been taken by the inner cabinet in accordance with the law and that the government's position was that it was perfectly in the right to do so.

[2] Opposition reaction

The main opposition New Democracy party said yesterday that the government "is not only in a position to proceed with the necessary radical changes in the economy but can not even carry out simple management."

ND issued the statement following a meeting of main opposition economic advisers with party president Miltiades Evert, held in the party's headquarters yesterday.

The ND announcement also noted that unemployment and the recession increase every month, saying inflation, instead of falling, indicated in July that it may be making a comeback despite "the overvaluation of the drachma," which will have negative consequences on the balance of current exchanges.

ND also claimed that bankruptcies remain at high levels, as do unpaid bills of exchange and bounced checks.

The main opposition party said "the government, with a delay of five months, is simply drawing conclusions and is satisfied with reacting with useless and procedural thoughts."

Speaking on the results of yesterday's meeting of financial ministers, the president of the newly formed Democratic Social Movement (DHKKI), one-time PASOK national economy minister Dimitris Tsovolas, said: "Instead of convergence of the Greek economy with the economies of other European countries, there was a divergence and finally the country's productive base simply shrank, and the rich became richer while the poor became poorer."

[3] PASOK political secretariat won't be a 'guidance organ'

The ruling PASOK party's Political Secretariat will consist of seven members but will not be a "guidance organ", the Executive Bureau decided yesterday in its first meeting chaired by the party's newly elected leader, Prime Minister Costas Simitis.

Mr. Simitis said that the role of the secretariat would be to recommend and propose, adding that it would assist him in his task.

"The central guidance organ of the party, which will formulate PASOK' policy, is the Executive Bureau," Mr. Simitis added.

The premier said that in addition to himself, the secretariat would be made up of Parliament President Apostolos Kaklamanis, Central Committee Secretary Costas Skandalidis, Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos and the three persons who received the highest number of votes in recent Central Committee elections, namely Education Minister George Papandreou, Environment Minister Costas Laliotis and Development Minister Vasso Papandreou.

National Defense Minister Gerassimos Arsenis said in statements later that the secretariat had been formed on Simitis' responsibility, while he disagreed with the body's role of putting forward recommendations and proposals.

According to reports, Agriculture Minister Stephanos Tzoumakas said the role of the secretariat had been downgraded to one of "working group", and proposed that it not be established at all.

Despite agreeing with him, Mr. Laliotis and Ms Papandreou reportedly said the party's charter foresaw the existence of a secretariat and that it should be established.

Sources said Mr. Tsohatzopoulos proposed increasing the number to nine to include Mr. Arsenis and Foreign Minister Theodoros Pangalos.

Meanwhile, renegade PASOK MP Kyriakos Spyriounis was once again made a member of the PASOK Parliamentary Group.

Mr. Spyriounis was expelled from the PASOK Parliamentary Group last year after clashing with late PASOK leader and then-premier Andreas Papandreou.

[4] Gov't: Turkey's actions, not words interest Athens

Conclusions should be drawn from Ankara's deeds rather than the statements of Turkish officials, government spokesman Dimitris Reppas said yesterday, commenting on the recent violations of Greek airspace by Turkish warplanes.

Mr. Reppas said Turkish jets violated Greek airspace on June 27, July 4 and 8, "that is, during the period when Ankara had supposedly expressed a desire for rapprochement with Greece".

When Turkey follows such a policy, the spokesman added, one should not have the "illusion" that confidence can be built between Ankara and Athens.

Greece, Mr. Reppas stressed, is following a policy of respect for treaties and the sovereignty of neighboring countries.

With regard to a Greek-Turkish agreement announced by NATO over the weekend providing for suspension of all planned military exercises in the Aegean in July and August, Mr. Reppas said that Greece would not ignore Turkey's "recent behavior".

Replying to questions from the press concerning Greece's stance at Monday's EU ministerial meeting on Mediterranean co-operation and the disbursement of EU funds to Ankara under the MEDA programme, particularly in view of the latest Turkish violations, Mr. Reppas said:

"(Greece's stance) will be shaped following consultations with Irish Foreign Minister Dick Spring, who is due to arrive in Athens on Friday."

Ireland is the current holder of the rotating EU presidency.

[5] 'Immediate, dismissive' response to US concern over Cyprus flyovers, Reppas says

The government said yesterday that Greece's response to the US "expression of concern" about the flight of Greek fighter planes over the Republic of Cyprus had been "immediate, dismissive and condemnatory".

Government spokesman Dimitris Reppas said Athens had not immediately made public the US "expression of concern" because "it is not always necessary to make public all the foreign ministry's handling of issues (relating to) foreign diplomatic representations". "When such handling is however made public de facto, the Greek government presents it in its true dimension," Mr. Reppas added.

Athens firmly rejected a "demarche" lodged by the US Embassy in Athens several days ago with the foreign ministry concerning flights periodically made by Greek fighters over Cyprus.

Rejecting the "demarche", the government reminded Washington of the ongoing 22-year occupation of roughly one-third of the island republic by Turkish occupation forces, as well as the presence of 30,000 Turkish troops on the divided island.

Flights by Greek planes over Cyprus are part of a joint defense doctrine between Athens and Nicosia, which a government source said on Tuesday were within the framework of exercises that would not be discontinued despite US pressure.

Commenting on a statement by National Defense Minister Gerassimos Arsenis, who said he was unaware of the US move, Mr. Reppas said the minister had been replying to reporters' questions on a "demarche", while the correct term was "expression of concern".

The spokesman clarified that the US document in question had been sent to the military office of the national defense ministry by telegram on June 20.

The national defense ministry last night clarified statements by Mr. Arsenis. In an announcement, the ministry said that the US diplomat's move, which was known to the national defense ministry, was not a "demarche", but an "expres-sion of concern". Thus, the minister was right in telling the press he was not aware of a "demarche", the announcement read.

Replying to other questions, Mr. Reppas said he was unaware of the content of a similar "expression of concern" sent by Washington to Ankara.

Late Tuesday night, State Department spokesman Nicholas Burns said Washington had "recently expressed its concern" over military exercises in Cyprus not only to Athens, but also to Ankara and Nicosia.

[6] Gov't reply to ND criticism

Government spokesman Dimitris Reppas, replying to criticism by main opposition New Democracy party, said yesterday that "as long as New Democracy sees that the Greek people trust the government and approve of its policies, it is logical for it to worry, b ut it worries about its own prospects only.

"The government reacted immediately and decisively both to Turkish provocations and to US initiatives. This is what we will do in the future as well vis-a-vis all those who oppose our national interests and doubt our sovereign rights. Greece has a strong voice and with its systematic efforts, the government has managed for our foreign policy and our positions to have support and positive response.

"We leave to ND the role of the unjust and complaining accuser of the government. Perhaps it is the only role it can truly play. With this stance, political developments will lead it to the sidelines," he concluded.

[7] Security the main topic on agenda of high-ranking US diplomat

The question of security will dominate talks during a visit by the US ambassador to the United Nations Madeleine Albright in Athens, Nicosia and Ankara over the next week, Cypriot government spokesman Yiannakis Cassoulides said yesterday.

Ms Albright, who is also traveling in her capacity as a member of US President Bill Clinton's cabinet, will be accompanied by Richard Beattie, the special US presidential emissary for Cyprus.

According to Mr. Cassoulides, recent statements by Mr. Clinton addressed basic issues of the Cyprus problem, with security high on the agenda.

While in Cyprus, Ms Albright will examine "potential opportunities" for a comprehensive agreement on the Cyprus problem and also "the effectiveness of the UN peace-keeping mission" on the island republic.

Her first stop will be in Athens on July 16-17 where, apart from Cyprus, she intends to discuss Bosnia and other regional issues.

On July 17 she will fly on to Nicosia and on July 18-19 she will be in Ankara for talks with the new Turkish government to discuss bilateral issues, Cyprus and Iraq.

[8] EU Council of Ministers urge 'crisis avoidance' in resolving disputes

The European Union Council of Ministers urged Greece and Turkey to establish "crisis-avoidance" procedures and to resolve territorial and other differences only through legal means, such as recourse to the International Court of Justice at The Hague.

The Council was responding to a question put by PASOK Eurodeputy Yiannos Kranidiotis, who asked, in the light of continued Turkish provocations in the Aegean, what the Council's intentions were with regard to supporting the territorial integrity of an EU member-state.

In its reply, the Council noted that it has asked both Athens and Ankara to exercise restraint and to avoid all actions that might increase tension as well as displays of military power.

[9] Greece signs economic, commercial agreements with Chile

Foreign Minister Theodoros Pangalos yesterday signed two economic and commercial agreements with his Chilean counterpart, Jose Miguel Insulza who began an official two-day visit here.

After the signing, both ministers underlined the excellent bilateral relations between the two countries, the traditional friendship between the two peoples and the steady co-operation both at the United Nations and within the framework of the European Union's co-operation with the countries of Latin America.

Addressing Mr. Insulza, Mr. Pangalos said Chile was playing a leading role in Latin America, was building a stable democracy and had an exceptional economic performance, particularly in recent years.

Mr. Insulza thanked Mr. Pangalos for Greece's contribution to the signing of a Chilean-EU co-operation agreement. He said he had discussed with Mr. Pangalos the prospects for future relations between the countries of Latin America and Europe.

Noting the excellent level of relations between the two countries, Mr. Insulza said they had been further improved in the last six years following the reciprocal establishment of embassies.

He described as "very important" the agreements signed yesterday, stressing that Greek-Chilean commercial relations were "good". Mr. Insulza also expressed the hope that Chile would participate in the Thessaloniki International Fair next year.

Apart from the two agreements signed yesterday, Mr. Insulza said, Greece and Chile would soon be discussing closer co-operation in the sector of shipping.

[10] Investments agreement

Mr. Insulza signed an agreement on the mutual protection and promotion of investments between Greece and Chile later , when he met with National Economy Minister Yiannos Papantoniou.

The two also signed a protocol of co-operation between the two countries' export promotions organizations.

Both sides expressed their satisfaction at the development of bilateral economic ties following the signing of an accord on economic, scientific and technological co-operation in 1994.

Mr. Insulza said he was optimistic that economic ties between the two countries would be further strengthened.

[11] First of 26 'Corsairs' delivered

Finance Under-secretary Giorgos Drys yesterday attended a ceremony of delivery by the Hellenic Air Force of the first of 26 A-7E "Corsair" fighter-bombers being upgraded by the Hellenic Aerospace Industry (EAB) facility in Tanagra.

[12] Canadian parliamentary delegation continues visit in Greece

Members of the Greek Parliament's foreign affairs committee met yesterday with the Canadian parliamentary delegation currently visiting the country.

Chairman Eleftherios Veryvakis and committee members Antonis Drosoyiannis, Christos Vizobitis and Dora Bakoyianni briefed the Canadian MPs on national issues and, particularly, developments in Greek-Turkish relations following Turkish provocations in the Aegean.

The delegation will visit the prefectures of Xanthi and Rodopi today.

[13] Kastanidis criticizes Olympic's performance

Transport and Communications Minister Haris Kastanidis yesterday acknowledged the "tragic situation" prevailing in the nation's air transport sector, stressing that he was resolved to push for radical changes.

He referred to unjustifiable delays in flights and the lack of coordination between Olympic Airway's various departments, blaming them on the "indifference of executives and sectarian trade union interests."

"In a period when the Greek people have shouldered the cost for the financial rehabilitation of the company (600 billion drachmas), I will not allow anyone to imperil the existence of the national air carrier," he said, adding that he has asked for the replacement of staff in the flight planning department and the convening of the board of dismissals soon.

Noting that the average flight delay exceeded two hours, he said he was resolved not to cover up weaknesses or omissions by employees, saying he would recommend to the government's economic staff reductions in salaries, according to the company's financial results.

[14] Quakes in Konitsa, Grevena

An earthquake measuring 4.3 on the Richter scale shook the area of Konitsa, northern Greece yesterday but caused no material damage.

The epicenter of the quake, recorded at 7:51 local time, was an area about 200 kilometers south-west of Thessaloniki.

Earlier, at 3:02 local time, an earthquake measuring 3.7 on the Richter scale was felt by residents in Grevena and Kozani, northern Greece.

The quake's epicenter was the same as last year's destructive tremor in May.

According to seismologists at Thessaloniki University, the quake was not a cause for concern since it was part of the general seismic activity following last May's tremor.

[15] Greece to face MEDA impasse on Monday

A Greek delegation composed of Foreign Minister Theodoros Pangalos and Alternate Foreign Minister George Romeos will be faced with the MEDA issue and the convening of the European Union-Turkey Association Council at the Council of EU Foreign Ministers in Brussels on Monday.

Yesterday's meeting of member-states' permanent representatives was a prelude to pressure expected to be exerted by the Irish presidency, backed by most other member-states' representations, who have persistently raised the issue of final approval for MEDA.

The Irish president of the Permanent Representatives Committee, ambassador O'Leary, raised the issue at COREPER's negotiating table, raising at the same time the problem of amendments adopted by the European Parliament on conditions for providing Community funding to Turkey and other Mediterranean countries.

The Greek representative at COREPER, P. Apostolidis, reiterated that the Greek side's position had not changed on MEDA, adding that Turkish provocativeness was more or less escalating rather than receding over the past few days.

He also said Athens favored adoption of four amendments ratified by the European Parliament and the Council of Ministers.

On the question of the EU-Turkey Association Council, it is rather improbable that the issue of convening it on Tuesday will be raised, despite strong pressure by Turkey and the fact that typically and "technically its convening is feasible."

Diplomatic sources in Brussels interpreted the Irish presidency's initiative to raise the issue on Monday more as a form of pressure toward Greece rather than a real pursuit of the presidency.

[16] New housing loans

The Workers' Housing Organization (OEK) is offering some 50,000 housing loans with favorable interest rates for those unable to afford their own homes, Labor and Social Security Minister Evangelos Yiannopoulos said yesterday.

The new loans will be available throughout the country, except for the region of Thrace which will be provided with an extra 1,000 loans.

Those with incomes of less that 2.5 million drachmas automatically enter the OEK housing programme, which offers a residence to be paid off interest-free in 30 years.

Those with incomes of no more than 4 million drachmas may receive loans of seven million drachmas plus one million for each child, at an interest-rate of between 5-6 per cent and repayment period of 20 years.

Those with an income of more than 4 million drachmas can be granted a loan of up to 12 million drachmas, with favorable interest rates determined by OEK and the state.

[17] Black Sea environmental conference begins in Istanbul

The "First Parliamentary Session on Protecting the Environment in the Black Sea", jointly organized by the Council of Europe and Economic Co-operation between Black Sea countries, started in Istanbul yesterday.

In his opening speech, Turkish National Assembly President Mustafa Kalemli stressed the need for co-operation between Black Sea countries for better protecting the environment in the region.

The session is attended by a Greek parliamentary delegation, while the Parliament of Cyprus was represented by Doros Christodoulides, who traveled to Turkey with a special passport visa.

The session is due to last three days.

[18] EU to decide if further measures needed to prevent spread of foot-and-mouth disease

The European Union's standing veterinary committee will meet today or tomorrow to decide whether further measures are needed to stop the spreading of foot-and-mouth decease from Greece to the rest of the Community, after two incidents were confirmed in Thrace on Monday, a spokesman for Agriculture Commissioner Franz Fischler said yesterday.

The Commission, he added, will ask for the banning of exportation of live animals and meat products from Greece to other member-states. He added that for the time being the disease was restricted to small villages in the Evros district near Turkey, while herds of animals had been destroyed for preventive reasons. He said Greece had assured the Commission that the appropriate measures would be taken.

Greek representatives said the recent incidents originated in Turkey, saying they would ask for the adoption of regional measures, so as to avoid a quarantine on the whole of the country.

[19] EPO's charter now in line with FIFA

An amendment harmonizing the charter of the Greek Soccer Federation (EPO) with that of the Federation of International Football Associations (FIFA) was ratified in Parliament yesterday.

An amendment was ratified in the same bill concerning Greek Football Pools (OPAP), anticipating that 1 per cent of the "Propogoal" game receipts be provided for the Drug Prevention Organization (OKANA). The amendment was submitted by ruling PASOK party deputy Manolis Skoulakis.

[20] Application procedures begun for second phase of TACIS III programme

The national economy ministry yesterday announced the start of procedures for submission of applications for the second phase of the TACIS III programme for company co-operation and coordination, which is part of the broader TACIS EU programme for provision of technical assistance to most of the new independent states of the former Soviet Union, as well as Mongolia.

The program's broader aim is to contribute to a process of economic reconstruction of those countries, and especially to the promotion of co-operation between them and organizations in EU member-states.

It will be co-financed by the EU and participating organizations, with EU participation not exceeding 50 per cent of the total cost, or ECU 300,000 for each project.

Eligible countries include Armenia, Azerbaijan, Georgia, Kazakhstan, Kirghizstan, Belarus, Mongolia, Uzbekistan, Ukraine, Russia, Tajikistan, and Turkmenistan.

[21] Macedonia-Thrace Bank announces healthy '95 results

An upbeat Macedonia-Thrace Bank governor Andreas Boumis yesterday described results in 1995 as especially satisfactory, which he said meant the fast and significant upgrading of its position in the Greek market and recognition of its pioneering position i n the Balkan market.

"Everything justifies special optimism for the bank's course in 1996," he told a shareholders' annual assembly in Thessaloniki.

Referring to the bank's basic indicators in 1995, he said loans increased by 49.55 per cent - the largest increase in the last 12 years - of which 96.3 per cent were to the private sector. Deposits in drachmas and foreign currencies followed market growth rates, increasing 8.68 per cent. Net profits before tax amounted to 3.61 billion drachmas, compared to 2.6 billion in 1994, representing a 36.6 per cent increase.

Mr. Boumis said the application of an integrated computerized system underway made the bank one of the three most modern in Greece, while the development plan included opening of 13 more branches in Greece and the Balkans.

He announced the signing of agreements for the opening of a joint venture commercial bank in Bucharest, for a venture capital company with the British Charterhouse investment bank that will be activated in the Balkans, and for a real estate management company with the also British GMW company.

[22] Upgrades for port of Piraeus announced

Tendering for two major projects worth nine billion drachmas will be a breather for the port of Piraeus, according to Merchant Marine Minister Kosmas Sfyriou.

The projects are expected to be completed in 2.5 years' time.

One project is the regional motorway of Agios Dionysios up to Neo Ikonio, and from the bay of Agios Nikolaos up to the docks for fish products, costing four billion drachmas.

The other concerns the building of facilities at the main port, where moorings will be created for 8-10 ships, as well as smaller projects at the dock at Agios Nikolaos for the mooring of 3-4 ships. These projects will cost five billion drachmas.

The projects will be funded by the European Union's Cohesion Fund at 85 per cent, while the remaining amount will come from the Piraeus Port Organization (OLP).

[23] Commission approves supplementary proposal for energy planning in eastern Macedonia

The European Commission has ratified a supplementary proposal for energy planning in Drama and Kavalla prefectures, submitted as part of the ALTENER programme.

Regional Secretary-General of eastern Macedonia and Thrace Haris Tsiokas said yesterday the proposal supplemented a corresponding programme underway in the prefectures of Thrace, aimed at an integrated intervention in the sector of energy not harming the environment.

Mr. Tsiokas said through the saving and rational use of energy, the replacement of fuel with the use of abiomass, the utilization of solar and geothermic energy, energy planning was being promoted for the entire region of eastern Macedonia and Thrace and possibilities were being widened for the utilization of alternate means of energy.

The European Commission will fund the implementation of the ratified proposal for 50 per cent of the total budget which amounts to ECU 200,000.

[24] Better absorption of funds studied

The national economy ministry is planning new meetings between regional secretary generals and secretary generals of ministries to accelerate necessary procedures for projects so the government can achieve its target of fully utilizing funds earmarked for 1996 as well as 25 per cent of funds not absorbed during the 1994-1995 period.

National Economy Under-secretary Christos Pachtas said it was assessed that programs would absorb all funds allocated to them in 1996, while the total state expenditure would amount to 296 billion drachmas.

[25] Securities commission takes new measures on mutual funds

The bourse's Capital Market Commission yesterday adopted three decisions aimed at promoting transparency and limit speculation in the Athens Stock Market, specifically: abolition of an 8 per cent fluctuation limit for newly listed companies during their three first days of trading; categorization of mutual funds clearly reflecting the orientation of their investment portfolios, and that listed companies publish quarterly accounts.

Regarding the categorization of mutual funds, the Commission specified that at least 65 per cent of assets must be invested in the category described as "main" on an average three-month basis. Also, mutual funds must distribute information leaflets through their sales networks every three months, showing their percentage investments according to category, while at the same time keeping the Commission updated on their activities.

[26] Commercial Bank drops interest rates on deposits

Following the example recently set by the National Bank of Greece and abiding by the climate created for a de-escalation of interest rates in general, Commercial Bank yesterday announced a small decrease in its deposit interest rates, which will take affect on July 15.

More specifically, the savings interest rate will decrease from 12.5 per cent to 12 per cent, while the remaining interest rates will be shaped as follows: Current accounts 9 per cent; privileged accounts 12.75 per cent to 13.50 per cent; and housing ac counts 12.50 per cent to 13 per cent - depending on the amount.

End of English language section.