Athens News Agency: Daily News Bulletin in English, 97-06-05

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

ATHENS NEWS AGENCY BULLETIN (No 1204), June 5, 1997

Greek Press & Information Office
Ottawa, Canada
E-Mail Address: [email protected]

CONTENTS

[01] Greece, Sweden express similar views on EU expansion, EMU

[02] Ipekci Prizes awarded

[03] Greek congratulations to new FYROM FM

[04] Holbrooke appointed special US envoy on Cyprus issue

[05] Ankara reports on Greek-Turkish differences to Dutch EU presidency

[06] World Environment Day inspires political messages

[07] Demirel expresses optimism over Greek-Turkish relations

[08] Greece joins WEU multinational land, sea forces

[09] Athens stresses need for calm, trust prior to direct talks on Cyprus

[10] Protopapas comments on question concerning lost citizenship

[11] 'Patriot' test firing on Crete

[12] New WWF guide to plants in ancient Agora

[13] First-ever performance in Greece of Strauss' 'Salome'

[14] Bulgarian justice minister meets with EU ambassadors

[15] Drug courier dies in train jump after trying to flee authorities

[16] ND examines position on social dialogue

[17] Prosecutor says file on terrorism doesn't contain suspects' names

[18] Greece buys $50 million Dutch frigate

[19] Beijing to support Athens' bid for Security Council in 1999-2000

[20] Greek film wins prize at Moscow festival

[21] Museum of ancient art high on Australian state PM's agenda

[22] Ceilings for marine pollution fines increased

[23] Eurocourt rules against Greece on tax exemption for car import

[24] Port upgrades announced

[25] Intercity trains to Orestiada

[26] Gov't presents bill on derivatives

[27] Profit taking hits Athens bourse

[28] Mutual funds assets reach 5.2 billion Dr.

[29] Bulgaria's Supreme Court clears Bulfon case

[30] National Bank of Greece in 200 mln. dollar loan

[31] Titan Cement sales rise in 1996

[32] Cyprus stock market attracts interest

[33] Greek products in Zagreb trade fair

[34] Bulgaria seeks business links with southeast Europe

[35] Better collection rate for building code fines decided

[36] London-based firm raises Greece's credit rating

[01] Greece, Sweden express similar views on EU expansion, EMU

Stockholm, 05/06/1997 (ANA - S. Liarellis/N. Servetas)

Speaking to reporters in Stockholm, Mr. Simitis said "it is important that as many countries as possible participate in the Economic and Monetary Union (EMU), and that criteria be the same for all."

He added that "European unification will be completed better and more effectively if there are as few differentiations as possible (between members)."

Mr. Simitis said Greece supports decisions affecting EU expansion to other countries that guarantee convergence and create a better integrated group.

"Greece believes that it is important to take into account the tendencies, developments and efforts taking place in various countries", Mr. Simitis said, referring to recent political changes in France and Britain.

Concerning Greece-Sweden relations, the premier said that both agreed on the inclusion of special reference to employment and environmental protection in the EU's agenda.

Both countries also agreed on EU structural issues, noting that "there must not be any changes that would make the position of smaller countries more unpleasant and create difficulties in decisions," he noted.

Mr. Simitis later gave a joint press conference with Mr. Persson, in which an identity of views on many issues was affirmed.

The prime minister is accompanied by Alternate Foreign Minister George Papandreou, with whom he will attend the European Socialist leaders' summit, opening in Malme today.

Besides meeting with the Swedish prime minister, Mr. Simitis also met with Sweden's parliament president Brigitta Dal.

National Defense Minister Akis Tsohatzopoulos was expected to arrive in Malme late yesterday to attend as secretary of the European Socialist Party. He will be accompanied by Foreign Under-secretary Yiannos Kranidiotis.

[02] Ipekci Prizes awarded

Istanbul, 05/06/1997 (ANA - M. Zarkadis)

Awards were given to honorary New Democracy leader Constantine Mitsotakis and Synaspismos Eurodeputy Michalis Papayiannakis, as well as to Alternate Foreign Minister George Papandreou (represented by his brother Nick Papandreou), Turkish Alternate Foreign Minister Onur Oymen, Turkish Chief of Staff Gen. Ismail Hakki Karadayi (received by a representative), and others.

The ceremony was attended by Ecumenical Patriarch Vartholomeos, ND deputy Dora Bakoyianni, veteran leftist politician Leonidas Kyrkos and many Greek and Turkish personalities.

Mr. Papayiannakis, speaking during the ceremony, said that positive steps had been taken in restoring relations between the two countries, but more had to be done.

Mr. Oymen conceded that it was natural that two countries had differences between them but it would be unnatural if there was no dialogue.

Mr. Mitsotakis said that both countries should start dialogue on the basis of mutual respect for territorial integrity, the respect of international treaties and the rules of international law.

[03] Greek congratulations to new FYROM FM

Skopje, 05/06/1997 (ANA - M. Vihou)

The letter stresses that developments in the region and the European and Euro-Atlantic framework necessitate resolving the pending issue concerning the question of the name, which will contribute towards consolidating common bilateral and regional interests of the two countries and will benefit peace and stability in the region.

Mr. Mallias also delivered an invitation to Mr. Hatzinski to participate in the ministerial inter-Balkan conference in Thessaloniki, which he accepted. In another development, Mr. Mallias visited the new Defense Minister of FYROM, Lazar Kitanovski, yesterday for an exchange of views on regional developments and, more specifically, developments in Albania.

[04] Holbrooke appointed special US envoy on Cyprus issue

Washington, 05/06/1997 (ANA - T. Ellis)

Asked to comment on whether Mr. Holbrooke would also deal with the Greek-Turkish differences, he said he didn't know. But the decision "to use the best and most effective negotiator" of the United States was indicative of the importance the government gave to solving the issue, Mr. Burns said.

The appointment was seen with satisfaction by Athens, Ankara and Nicosia, Mr. Burns said.

US officials and Greek diplomats in Washington believe that the appointment is an indication of the Clinton administration's intention of upgrading the Cyprus issue and Greek-Turkish relations to a priority.

[05] Ankara reports on Greek-Turkish differences to Dutch EU presidency

Istanbul, 05/06/1997 (ANA)

Expert committees by both Greece and Turkey were established recently following an initiative by the Dutch EU presidency as a step towards solving differences between the two neighbors. At a press conference in Ankara, spokesman Sermet Atacanli said it had been agreed upon at the Luxembourg meeting of EU foreign ministers last month that a joint report by both countries' expert committees would be presented to the Dutch presidency by June 15.

"The Turkish side has sent the EU presidency its report on the methods of solving problems, while the Greek side has rejected an invitation by the EU presidency for a meeting of the experts committee in the Netherlands," he said.

Greece has repeatedly stated that all territorial disputes have been settled by the Lausanne Treaty, which Turkey has signed, and that for any other questions Turkey wishes to raise it should take recourse to the International Court of Justice at The Hague.

[06] World Environment Day inspires political messages

Athens, 05/06/1997 (ANA)

Both government officials and parties spoke about the importance of preserving the natural environment.

Main opposition New Democracy leader Costas Karamanlis said the day should be utilized as a day of recollection and evaluation of action on national level that would upgrade the environment.

He also charged the government with using the environment as an issue to impress and advertise itself and as a rich source of European Community funds, which however, are not absorbed.

Merchant Marine Minister Stavros Soumakis stressed the need for environmental protection prompting everyone to realize the responsibility to protect the environment for the generations to come.

"We must all realize the collective responsibility which we have against the future generations to consolidate the conditions for life on earth," Mr. Soumakis said.

He added that "the goal for common European environmental policies will prove to be practically non-feasible if the Greek seas and coastlines are unprotected..."

The Coalition of the Left and Progress (Synaspismos) said that the government shouldn't pass its responsibilities for problems on to other parties, and criticized its handling of Attica projects such as natural streams and creeks and reforestation of burned areas.

The international environmental advocacy group Greenpeace warned that climatic changes were the greatest threat humanity had to face. Scientists have warned the public about a time-bomb in terms of the climate, Greenpeace stated.

The group cited the example of carbon monoxide in the atmosphere, which if doubled will practically destroy the world economy.

Other messages concerning World Environment Day came from Parliament President Apostolos Kaklamanis and PASOK's youth secretariat.

[07] Demirel expresses optimism over Greek-Turkish relations

Istanbul, 05/06/1997 (ANA)

"The existence of people who concern themselves with Greek-Turkish friendship - and they are not few - increase our hopes concerning the future of Greek-Turkish relations, which is to the advantage of both countries but also to the region and Europe," Mr. Demirel's message read.

He added that he hoped these efforts would continue.

[08] Greece joins WEU multinational land, sea forces

Paris, 05/06/1997 (ANA - Y. Zitouniati)

The WEU plenary session passed an amendment allowing Greece's participation along with France, Italy, Portugal and Spain. The WEU aims at creating an emergency task force of EU member-states and anticipates crisis situations outside NATO responsibility.

Membership is separate from NATO.

[09] Athens stresses need for calm, trust prior to direct talks on Cyprus

Athens, 05/06/1997 (ANA)

The talks will be held within the framework of efforts by UN Secretary General Kofi Annan to find a solution to the Cyprus problem.

Government spokesman Dimitris Reppas made the statement when asked to comment on recent violations of Cyprus' airspace by Turkish military aircraft.

While condemning what he described as Mr. Denktash's "negative stance" prior to the talks, Mr. Reppas expressed the hope that they would be fruitful, "despite what is happening, which does not facilitate rapprochement between the two sides."

Mr. Reppas also noted that Nicosia was contacting international bodies, charging that "certain powers" were trying to undermine efforts for a Cyprus solution.

"If this is Turkey's official policy, then the chances of a settlement are not even one in a million," he added.

[10] Protopapas comments on question concerning lost citizenship

Athens, 05/06/1997 (ANA)

Mr. Protopapas was speaking in Parliament yesterday in reply to a relevant question by Coalition of the Left and Progress (Synaspismos) deputy Moustafa Moustafa.

Mr. Protopapas said there are individuals who must at some time exit a "gray zone" of Greek society, but added that the issue is complicated and co-operation with jointly responsible ministries will be necessary.

[11] 'Patriot' test firing on Crete

Athens, 05/06/1997 (ANA)

[12] New WWF guide to plants in ancient Agora

Athens, 05/06/1997 (ANA)

The guide was prepared by the Greek chapter of WWF in co-operation with the Parsers school of graphic design.

[13] First-ever performance in Greece of Strauss' 'Salome'

Athens, 05/06/1997 (ANA)

The opera has never before been performed in Greece, mainly because of its demanding first role and the large number of orchestra members needed (105 musicians).

Other singers include Marina Krilovic, Michael Pabst and Oscar Hilbrandt. Costumes are by Yiannis Metzikov and the set by Apostolos Vettas.

[14] Bulgarian justice minister meets with EU ambassadors

The Minister of Justice and Legal Euro-Integration Vassil Gotsev on Tuesday received the ambassadors of the Netherlands Vilen Theophilus Sicks, Italy Tomaso Troise and Greece Panayotis Karakasis, the ministry's press office said.

Mr. Gotsev briefed the ambassadors on the state of the Bulgarian judiciary system and the Cabinet's priorities in the administration of justice.

The ambassadors stressed the presence of an effective justice system in a country is an incentive for investment in its economy.

On his part, Mr. Gotsev expressed his belief the ministry will operate according to European standards.

Four groups of legal experts from the main political forces are now working on texts on crime control to be submitted to Parliament next month.

Mr. Gotsev stressed a main objective of the Cabinet was to put the legal mechanisms of crime control in place before the end of its first 100 days in office.

[15] Drug courier dies in train jump after trying to flee authorities

Athens, 05/06/1997 (ANA)

Fifty-five egg-shaped packets of heroin, totaling some 850 grams, were later detected in the man's stomach, reports state.

Police tentatively identified the man as Damon Russell Gwinn.

According to reports, he jumped out of the window of a Skopje-to-Thessaloniki railcar while customs officers questioned him.

Customs officers first suspected that Gwinn was traveling with a false passport, subsequently asking him to sign his name for a comparison with the signature on the passport.

Thessaloniki police are conducting an investigation to verify his exact identity.

In an unrelated incident, a 22-year-old Albanian national was arrested in Aiginio, Pieria prefecture yesterday when he attempted to sell more than 15 kilos of hashish to an undercover policeman.

Alpini Zarisi was arrested by drug squad officers after agreeing to sell the hashish, which he reportedly smuggled into the country from neighboring Albania, for 2.25 million drachmas.

[16] ND examines position on social dialogue

Athens, 05/06/1997 (ANA)

ND leader Costas Karamanlis is due to give a speech on the issue on Tuesday in Parliament.

According to comments from leading party members, ND will request a revision of the agenda of the dialogue to give emphasis on the triptych "unemployment, productivity, social protection" and will call on the government to ensure that the talks are not pre-emptive.

The results of the French elections and its impact on Maastricht were also discussed at the meeting.

[17] Prosecutor says file on terrorism doesn't contain suspects' names

Athens, 05/06/1997 (ANA)

Reporters were acting on statements made several months ago and reiterated recently by former public order minister Stelios Papathemelis, namely, that evidence exists on the terrorist organization "November 17", which has not been suitably utilized.

Mr. Papathemelis had been summoned twice by a prosecutor last year to provide clarifications on similar statements. However, he did not appear before the prosecutor and preferred to address a letter in which he stressed that all relevant evidence on terrorism is in the possession of relevant services of the public order ministry and judicial officials.

According to reports, the eighth regular investigator has already completed his work and has evaluated all evidence, including the archives of the former East German intelligence organization Stasi, which however, did not provide ground for the identification of offenders.

In a related development, Public Order Minister George Romeos told Parliament last night that police investigations and efforts to crack down terrorist groups do not have a specific orientation, "everything is examined everywhere."

Replying to a relevant question by Communist Party of Greece (KKE) deputy Stratis Korakas, Mr. Romeos said that according to his own information and assessments, terrorism is a very difficult problem to crack.

He declined any comment on statements by his predecessors, saying "if they have evidence I suppose they left it before leaving. My office is open if they want to co-operate with me. What is necessary for these issues is seriousness and responsibility. I will not speak with scenarios and innuendoes but only if I have specific evidence."

Mr. Korakas said the case of the November 17 organization involves foreign and Greek intelligence services. He said statements by Mr. Papathemelis and former minister Ioannis Skoularikis should be examined, as well as statements by the public order ministry's former adviser, Maria Bossi.

[18] Greece buys $50 million Dutch frigate

Athens, 05/06/1997 (ANA)

The frigate is due to be delivered by the end of the year, following modifications to enable it to join the Greek fleet.

Mr. Voorhoeve said the signing of the contract indicated the long-standing co-operation between the navies of the two countries, adding that there was also a possibility of further co-operation in regard to weapons sales for the Greek army.

Mr. Tsohatzopoulos described co-operation between the two countries in the defense sector as "substantial".

The talks between the two ministers focused on the enlargement and new structure of NATO, the role of the Alliance in eastern Europe and the eastern Mediterranean and issues related to security in Europe.

Mr. Voorhoeve praised the role played by Greece in the region, commenting in particular on its participation in peace efforts in Bosnia and Albania.

[19] Beijing to support Athens' bid for Security Council in 1999-2000

Athens, 05/06/1997 (ANA)

"This decision constitutes yet another token of the friendly relations linking our peoples and is the result of our mutual understanding and co-operation," he said.

In his message to Mr. Qichen on the occasion of the 25th anniversary of diplomatic relations being established between Greece and China, Mr. Pangalos said that "during this period we witnessed a noteworthy development in our bilateral relations, which strengthened the traditional ties of friendship linking our peoples.

"At present the international scene is experiencing great changes. The role played by China is acquiring increased importance. Its speedy economic development renders its presence in the world economy stronger and constitutes a cause for admiration.

Being a permanent member of the Security Council, it has proven that it can meet its increased responsibilities for world peace and security. In addition, its active participation in the Regional Forum ASEAN can contribute to the achievement of targets set by this Forum," he said.

"Greece, being a member of the European Union, a major political and economic force in the Balkans and a country located at the crossroads between Europe, Asia and Africa, is playing an active role in regional developments and constitutes a useful gateway for third countries which are seeking access to European and Balkan regions. It also constitutes a country which is fully committed to the ideals and principles of the UN and supports every effort by the organization for peace and development," he added.

[20] Greek film wins prize at Moscow festival

Moscow, 05/06/1997 (ANA - D. Konstantakopoulos)

"Meteora - the catacombs of the sky" is directed by Greek director Vasilis Marou and was awarded the prize for "best meeting the aims of the festival and contributing to Christian ideas".

Meanwhile, "Russian painters and Greece" is the title of a major exhibition being held at the Tretiakof Gallery with the co-operation of the Greek embassy in Moscow and the Pushkin Museum.

The exhibition showcases leading Russian artists of the 19th and 20th centuries inspired by their visits to Greece, Greek landscapes and the revolution of 1821.

[21] Museum of ancient art high on Australian state PM's agenda

Melbourne, 05/06/1997 (ANA - S. Hatzimanolis)

Mr. Kennet is scheduled to meet Prime Minister Costas Simitis, and Culture Minister Evangelos Venizelos in his fourth visit in as many years to Greece.

The state premier is reported to be considering requesting genuine antiquities for the museum from Athens, on which work has already begun.

Greece has already promised to send an exhibition of antiquities to Sydney for the 2000 Olympics.

Mr. Kennet is also due to visit Thessaloniki and the monastic community of Mount Athos, after an invitation by Ecumenical Patriarch Vartholomeos.

[22] Ceilings for marine pollution fines increased

Athens, 05/06/1997 (ANA)

Specifically, fines by port authorities will increase from two million to five million drachmas, while fines imposed for every day in excess of the time limit set by port authorities for the restoration of damage increase from one million to two million drachmas and the ceiling for fines imposed by decision of the merchant marine ministry in the event of serious pollution increases from 150 million to 250 million drachmas.

In addition, fines imposed by decision of the relevant prefect increase from between five million and 10 million drachmas. Fines imposed by joint decision of the merchant marine minister and the environment, town planning and public works minister increase from between 10 million and 100 million drachmas.

[23] Eurocourt rules against Greece on tax exemption for car import

Brussels, 05/06/1997 (ANA - G. Daratos)

The fact that Greece restricts this temporary tax exemption to one car alone contributes towards obstructing of the free movement of citizen s in the EU, which is contrary, according to the European Court's ruling, to the EU directive issued on March 28, 1983.

According to the clauses of this directive, citizens of EU countries must be able to circulate freely without being obstructed by national taxation legislation. A person might have to bring a second car temporarily into Greece (or any other EU country), according to the ruling, due to illness, either a breakdown in the first car or an accident, or because he has a large family which needs more than one car to travel.

The European Court recognizes the dangers posed for tax evasion in Greece, particularly in the private vehicle sector, but believes that the means exist to control such tax evasion.

[24] Port upgrades announced

Athens, 05/06/1997 (ANA)

Mr. Soumakis held talks with OLP's administration yesterday and ways were examined to improve services rendered in the sector of the port where cruise ships dock.

[25] Intercity trains to Orestiada

Athens, 05/06/1997 (ANA)

[26] Gov't presents bill on derivatives

Athens, 05/06/1997 (ANA)

The bill, which constitutes the government's final legislative intervention in 1997 to modernize the stock market, will be submitted to parliament in coming days, Papantoniou said. Clauses in the bill set the terms for creation of an organized derivatives market in Greece, and measures to control transactions.

The bill also allows the partial privatization of the Athens Stock Exchange through the sale of 33 percent of its share capital. The sale process is expected to be completed by autumn.

[27] Profit taking hits Athens bourse

Athens, 05/06/1997 (ANA)

Most sector indices lost ground. Banks fell 1.24 percent, Leasing was 0.84 percent off, Insurance dropped 0.53 percent, Investment eased 1.52 percent, Construction dropped 0.81 percent, Miscellaneous eased 0.30 percent, but Industrial and Holding ended 0.47 and 0.39 percent higher respectively. The Parallel Market index rose 0.05 percent.

Traders said the market needed some correction as it approached the 1,700 barrier once more but that the underlying trend of the market remained positive in anticipation of the second tranche of a flotation of Hellenic Telecommunications Organization (OTE) during the summer.

Broadly, decliners led advancers by 158 to 56 with another 33 issues remaining unchanged. Demetriades, Pairis and Eskimo were top gainers, while Vis, Ippotour, Elviemek and Boutaris suffered the heaviest losses of the day.

National Bank of Greece ended at 37,750 drachmas, Ergobank at 19,220, Alpha Credit Bank at 19,995, Titan at 27,465, Intracom at 13,750 and OTE at 7,200 drachmas.

[28] Mutual funds assets reach 5.2 billion Dr.

Athens, 05/06/1997 (ANA)

[29] Bulgaria's Supreme Court clears Bulfon case

Athens, 05/06/1997 (ANA)

The Supreme Court accepted Intracom's argument and ruled that the company's establishment was lawful. In his petition, general prosecutor Ivan Tatartsev claimed that Bulfon, which also deals in informatics, had no right to use the description "Bulgarian " because 68 percent of its shares, a majority holding, belonged to the Greek partner.

The manner in which Bulgarian Telecommunications Organization (BTK), which owns the remaining 32 percent of shares, had decided to take part in the company was illegal, according to Tatartsev's petition. Bulfon has undertaken the installation, operation and management of a national network of card phones in Bulgaria.

On the basis of strategic agreements it also provides BTK with digital broadcasting systems. Bulfon operates in 32 Bulgarian towns, employs 1,320 people, owns two factories in Sofia and Plovdiv, and represents one of the largest strategic Greek investments in Bulgaria. The Greek-Bulgarian company's turnover in 1996 was 6.2 million dollars.

[30] National Bank of Greece in 200 mln. dollar loan

Athens, 05/06/1997 (ANA)

The issuer has the right to withdraw the FRN after a five-year period at its nominal value. Final settlement has been set for June 2007.

The loan was fully covered after a series of presentations to foreign institutional investors. It was given a Baa2 credit rating by Moody's Investor Services. National Bank of Greece's rating is Baa1.

Salomon Brothers and Chase Manhattan acted as underwriters for the issue, while Morgan Stanley, BZW Smith Barney, HSBC, Bear Sterns and the National Bank's London branch managed the issue.

[31] Titan Cement sales rise in 1996

Athens, 05/06/1997 (ANA)

Consolidated sales were 108.2 billion, showing a 10.3 percent rise from the previous year.

The company will pay a 1996 dividend of 460 drachmas per share. The meeting postponed a decision on a new share scheme, which will be debated at a new meeting set for June 17.

Speaking to shareholders, Titan's chairman A. Kanellopoulos said that the company was still interested in acquiring a stake of no less than 50 percent in Halkis Cement, controlled by AGET-Heracles.

He also said that the company was considering expansion into other markets, but not into the neighboring Balkans due to the unattractive terms set for the privatization of cement companies in Albania and Bulgaria. Titan, however, was considering expansion in North Africa and particularly in Algeria, as well as establishing a distribution center in Egypt.

The Greek company also was examining expansion in the North American market through its subsidiary Carolinas Cement Co. The company's exports dropped 5.8 percent in 1996 due to an increase in sales in the domestic market.

The shareholders meeting approved a plan for signing an international bond loan worth 15 billion drachmas.

[32] Cyprus stock market attracts interest

Athens, 05/06/1997 (ANA)

The Cypriot finance ministry has backed listing for major off-shore companies operating in Cyprus by means of share issues in foreign currency. The plan is expected to boost growth of the Cyprus market as more than 30,000 off-shore companies with a total capital of 400 million dollars have come to the island.

[33] Greek products in Zagreb trade fair

Athens, 05/06/1997 (ANA)

According to an OPE statement, Croatia's market offers opportunities to Greek exporters for the promotion of trade, investment and other financial activities. Croatian authorities recently decided to fully harmonize the country's tariff and customs system with that of the European Union, taking effect on January 1, 1998.

Guarantees would be offered to foreign businessmen as an incentive to trade, the statement said.

[34] Bulgaria seeks business links with southeast Europe

Athens, 05/06/1997 (ANA)

Foreign ministry press spokesman Radko Vlaikov said in Sofia that the Bulgarian government would give special emphasis to meetings on business that would take place on the sidelines of the meeting, which is held annually. Of special interest were energy, transport, telecoms, banking and privatization, Vlaikov said.

[35] Better collection rate for building code fines decided

Athens, 05/06/1997 (ANA)

After a meeting chaired by Mr. Papantoniou yesterday morning, Mr. Laliotis said the payment of fines for violations of the town planning code is extremely slow since there is a notable lack of collectors. Confirmed fines imposed since 1984 for the legalization and maintenance of unauthorized buildings exceed 200 billion drachmas.

The 1997 budget includes receipt of 25 billion drachmas from this amount. Fines start from 200,000 and in certain cases exceed two million drachmas. The ineffective receipt of the fines is due to bureaucratic processes and the ineffective operation of t he relevant receiving mechanisms.

Mr. Laliotis said 75 per cent of the money to be received will be provided for the creation of infrastructure works and 25 per cent to support the budget.

The meeting was also attended by Environment, Town Planning and Public Works Under-secretary Christos Verelis, Justice Minister Evangelos Yiannopoulos and Finance Under-secretary George Drys.

[36] London-based firm raises Greece's credit rating

Athens, 05/06/1997 (ANA)

The respected London-based organization's rating pertains to Greece's ability to pay off its foreign debt, which totals US$29.9 billion.

According to an IBCA report, Greece was given an improved rating because it had "made steady progress in its public finances and macro-economic stability."

The Bank of Greece is also praised for its "reliable and prudent monetary and exchange policy" which enabled the "drastic" reduction of inflation.

IBCA also notes that Greece's economy is growing at a faster rate than any other European Union member-state.

The report forecasts a continued increase in the gross external debt as a percentage of GDP this year, but predicts a drop in the net external debt in 1998.

In addition, the organization underlines that the absorption of Community Support Framework funds has already improved considerably due to better coordination of the state administration. IBCA considers "ambitious" the government's target of a reduction of the public deficit to 4.2 per cent of GDP by the end of 1997, from 7.4 per cent last year.

"It is not clear whether the PASOK government is strong enough to push through the measures necessary to attain this target," the report assesses, while expressing the view that "the Greek economy is being held back by the enormous bureaucratic public sector and the structural inflexibility which prevent Greece from acquiring a modern, flexible economy."

The report stresses the importance of Prime Minister Costas Simitis' firm refusal to give in to strikers workers' demands, saying it had increased the confidence of capital markets in his government.

End of English language section.

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