Athens News Agency: Daily News Bulletin in English, 98-04-01

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

CONTENTS

[01] Gov't says will not back down on bill to streamline OA

[02] ... Gov't spokesman

[03] ... GSEE

[04] ... Opposition reactions

[05] Tsohatzopoulos meets President Yeltsin at the Kremlin

[06] Papantoniou stresses need for change in labour relations, social security system

[07] Pangalos hails start of EU enlargement talks

[08] ... Cook, van den Broek

[09] ... Greek gov't spokesman

[10] Youth affairs ministers to establish Balkan Centre

[11] Conference on EU's policy in eastern Mediterranean

[12] Gov't critical of Burns statements

[13] ... Synaspismos

[14] AHEPA delegation makes brief stopover

[15] Ankara talks

[16] Papariga meets Europarliament president

[17] SE European journalists convene in Athens

[18] Premier receives Athens mayoral candidate Damanaki

[19] Parliament committee in Tirana for talks

[20] Cabinet examines drugs problem

[21] Books delivered to Greek schools in Istanbul

[22] Spanish bank joins Inter Alpha Group Banks

[23] Eastern Macedonia, Thrace participate in international tourism fair

[24] Greece to use laws to push through public sector reform

[25] Profit-taking drives down Greek stocks

[26] Greece's ERM entry boosts stock market

[27] Greek shares join international index

[28] Greek railways issue Lira 325 bln bond

[29] Greece sees good prospects for Balkan economy, banking cooperation

[30] Greece wants energy forum in Balkans

[31] Bulgaria's Boskov

[32] Greek farm revenue to get stiffer tax

[33] Bank of Athens denies buy-out rumour

[34] Greece's Alpha Credit Bank has 31.5 pct jump in 1997 profit

[35] National Bank of Greece offers Easter holiday loans

[36] Greek tourism industry backs Olympic Airways bill

[01] Gov't says will not back down on bill to streamline OA

Athens 01/04/1998 (ANA)

Olympic Airways employees yesterday held demonstrations at the national carrier's head offices, while the government said it would use legislation to push through its reforms in other public utilities if unions disagree with the reform plans.

Transport and Communications Minister Tassos Mantelis and the OA trade unions leadership yesterday failed to agree on a proposition by the unions to postpone the voting of the OA bill.

Mr. Mantelis tabled the bill Monday night, which will be debated in Parliament tomorrow, after a deadlock in the talks as a two-month deadline given to employees and administration to agree on a bail-out plan expired.

The bill provides for a freeze on salaries at Dec. 1997 levels up until the year 2000, the abolition of a 70,000 lodging allowance for ground staff and other perks, flexible labour relations and "elastic work hours".

Mr. Mantelis said yesterday that both the OA administration and the presidium of Federation of Civil Aviation Unions (OSPA) had been aware that the bill was to be tabled on Monday.

"But that was not a hindrance to talks with the workers, and any decisions that would have been reached which could have aided the streamlining of the company would have been incorporated" in the bill, he said.

"With the new regulations," he said, "our target is to salvage Olympic Airways and maintain all the work jobs".

"Any other proposal would just shut down OA, and this must be comprehended by everyone," Mr. Mantelis said.

Asked if the resignation of OA president and managing director Thodoris Tsakiridis had been accepted, Mr. Mantelis said he had not received any such resignation, adding that the announcement of the president's resignation had probably been made under the pressure of the workers.

[02] ... Gov't spokesman

Asked about media reports claiming that Mr. Tsakiridis had resigned, Mr. Reppas said the OA president had not submitted his resignation "and this entire issue was the result of psychological pressure and 'quasi' violence exerted on him".

The spokesman added that Mr. Tsakiridis was continuing to work as normal.

Mr. Reppas said both Mr. Tsakiridis and the OA board had been aware of the content of the government's bill, stressing that the government took no one by surprise.

"It is also not true that the government hastened to table the bill as workers were engaged in dialogue with management. Dialogue had broken down and the government proceeded in accordance with what it had already anounced," he said. The spokesman reminded that he himself had made it clear in statements on Friday that if the talks between management and workers brought no result, the government would go ahead and table the bill. "Talk now of taking them by surprise is hypocritical," he added.

Mr. Reppas said the government wanted to see agreement with the workers and until the bill had actually been passed, would wait for their "constructive" proposals whi-ch could be incorporated in the bill. Replying to reporters' questions, Mr. Reppas attributed the failure of the last OA revitalization programme to the fact that "crucial issues" were not addressed, such as employer-employee relations and salaries.

The will of the government is now strong, he added.

Asked whether the German airline Lufthansa was interested in buying OA, Mr. Reppas referred back to previous statements he had made, according to which Olympic must find "strategic partners" if it was to survive.

[03] ... GSEE

GSEE president Christos Polyzogopoulos charged that the drafting of the OA bill had been "makeshift". He called for a ten-day extension of talks between workers and management.

Observing that the bill was dated 27-1-1998, Mr. Polyzogopoulos clai-med that "the decision had been taken months earlier"

Mr. Polyzogopoulos said later after talks with Mr. Mantelis that it was not possible for discussions to be held "with a pistol to the head".

"We made a last-minute effort to reach some understanding to tackle the problems at OA caused by the new bill. Our effort was not understood by the transport minister. We asked for an extension to be given until early next week so that trade unionists may have time to understand and submit their proposals. Despite this, the minister told us 'you can discuss all this until Thursday'," Mr. Polyzogopoulos said.

"Because Mr. Mantelis is not listening to me, I appeal to the government to allow the talks which broke down to be completed next week. Otherwise it will bear responsibility for what happen s at OA as well as for the reactions of all workers," he added.

The GSEE president stressed that both he and all trade unionists were determined not to allow the "authoritarian" bill to pass.

Federation of Civil Aviation Trade Unions (OSPA) President Michalis Perros said he could not understand why the agreements reached in five days of talks between workers and management were not included in the government's bill.

Mr. Perros too expressed determination not to let the bill pass.

In addition to last evening's three-hour work stoppage and protest rally outside Parliament, OSPA also decided to participate in a further three-hour work stoppage called by GSEE for Thursday, again from 5 to 8 pm, and another rally.

Mr. Mantelis last night provided further clarificatios over the bill during a briefing session of the members of the ruling PASOK party's parliamentary working group.

At a break of his discussion with the deputies, the transport minister gave a press conference, in which he stressed that it was now imperative to take measures to save Olympic Airways. Otherwise, he said, OA will close down or will be sold at a very low price.

However, he denied that negotiations had been held with likely partners, being adamant that OA will remain under the control of the state.

Mr. Mantelis reiterated that the meaures proposed by the government were the last hope to restructure the national air carrier and to safeguard its development and competitiveness.

"The bill will safeguard that all job positions are retained, the Greek people�s money do not go wasted and OA continues to fly", he said.

The minister further denied that OA president Theodoros Tsakiridis had submitted a verbal or written resignation. He said he had a meeting with him, but such an issue was not brought up.

Replying to a question as to whether the bill could be amended, Mr. Mantelis said that this was indeed possible, but only if there will be an agreement with OA employees by Thursday, when the bill will be tabled for approval in the parliament's plemun.

In a related development, 17 PASOK ruling party deputies yesterday sent a letter to Parliament President Apostolos Kaklamanis, in which they expressed their opposition to the debate of the bill as an urgent matter in the parliament's plenum.

The deputies said the process deprived them from taking part in the government's legislative work, for which they were voted upon by the people, and made them mere observers of the debate.

The government will not back down on its bill to streamline the ailing national carrier, according to Prime Minister Costas Simitis' aides, who added that the government could not let problems bog down, as the social benefit to result from tough solutions was much greater than the so-called political cost.

They said OA's modernisation, as well as of all public utilities, was a bet for the economy that the government was determined to win.

Commenting on OA employees' reactions to the company's restructuring, the PM's aides said employees must become aware of the fact that their benefit was identified with the Greek people's benefit, and the company's viability and OA employees' privillages should not burden taxpayers.

[04] ... Opposition reactions

Mr. Karamanlis was speaking yesterday at an event organised by the DAP-NDFK student group, affiliated to the ND party, in light of today's student elections.

He said the government lacks the will and the strength to proceed in the direction of privetisation. He also expressed opposition to takeovers (of facilities), saying that citizens must not have to pay for reactions and actions which are dire-cted again st them.

From Strasbourg, visiting Secretary General of the Communist Party of Greece (KKE) Aleka Papariga described the government's action as a "new form of dictatorship", bearing the traits of economic coersion.

"It is never late...", said the KKE leader, adding that "...there is still room for the people to rally and cancel some anti-popular plans...".

Coalition of the Left and Progress (Synaspismos) leader Nikos Constantoplous proposed that the controversial OA bill be withdrawn and a timetable be set for constructive and binding dialogue.

Mr. Constantopoulos also placed himself in favour of retaining the public nature of the ailing national carrier, stressing that OA "could not be turned into a satellite of foreign airlines".

"Being at a neoliberalist fever pitch, the PASOK government is demolishing the public utility corporations (DEKO), starting up from Olympic Airways", was Democratic Social Movement leader Dimitris Tsovolas' comment on the OA bill.

Mr. Tsovolas spoke of an "overall sell-out", and called on the Greek people to put up resistance and defend their democratic rights, to avoid what he called "a return to social cruelty".

The OA administration announced changes to scheduled flights yesterday, brought about by the three-hour work stoppage called by unions.

[05] Tsohatzopoulos meets President Yeltsin at the Kremlin

MOSCOW 01/04/1998 (ANA-D. Konstantakopoulos)

Mr. Tsohatzopoulos was responding to a reporters' question on the U.S. reaction to the possibility of Russian-made S-300 missiles being deployed by Nicosia or Athens.

The minister, who began a three-day visit to Russia yesterday, met with his Russian counterpart General Igor Sergeyev and President Yeltsin, a meeting that has been characterised as "unusual" for the Kremlin. Diplomats said that Mr. Tsohatzopoulos's meeting with Mr. Yeltsin was a clear sign of Moscow's interest in further developing relations with Greece in all sectors, including defence.

The Greek minister said after the meeting that it provided an opportunity for an exchange of views on security issues in the region to which both Greece and Russia belonged.

Mr. Tsohatzopoulos said Athens' and Moscow's belief that the achievement of stability through cooperation and security was confirmed, as were the two countries' good relations.

Both were prepared for further cooperation on a bilateral level - which would include defence cooperation - as well as a joint effort in security organisations of which both were members.

Turning to Greece's new arms procurements programme, Mr. Tsohatzopoulos said it was a statutory principle of the United Nations that no party could question the right of another to procure any defence system and that any subsequent "exhortations,advice or even threats" had no place.

"Both Cyprus and Greece have the right to choose the type of defence systems which will allow them to meet their defence needs. And since we are in security institutions like the Western European Union, NATO and the Organisation for Security and Cooperation in Europe, we are in a position to press for the best policy initiatives which can bring peace, security and stability," he said.

Mr. Tsohatzopoulos further said that President Yeltsin assured him that Russia stands by the commitments and obligations which it has undertaken, adding that this constitutes a political position of principle.

Replying to questions concerning the possibility of Russian-made S-300 anti-aircraft missiles being obtained by Greece as well, Mr. Tsohatzopoulos stressed that there can be no extortion, pressure or obstruction and that Athens will make its purchases in accordance with national interests.

Russia is interested in the Greek intervention in the wider region which includes the Balkans, the eastern Mediterranean, the Black Sea and the Caspian and on the shaping of a common position on the issues of this region, Mr. Tsohatzopoulos said, referring to the exchange of views which he had with the Russian president.

He briefed Mr. Yeltsin on Greek initiatives, as well as on the views of Athens on handling flashpoints and the "destabilising attitude" of states in the region.

[06] Papantoniou stresses need for change in labour relations, social security system

Athens 01/04/1998 (ANA)

The minister stressed that as far as the issue of labour relations was concerned, Greece was far behind. He underlined that the deregulation of the system would greatly benefit employees and facilitate the adjustment of the labour force to the new requirements.

[07] Pangalos hails start of EU enlargement talks

BRUSSELS 01/04/1998 (ANA - M. Spinthourakis)

"The substantive negotiations for the enlargement of the European Union with six new candidate members started today. This enlargement will bring Greece closer to Europe's mainland, because it is taking place to the south and to the east with countries which by tradition Greece has been very close to, such as Hungary or Slovenia which was a member of the former Yugoslav Federation," Mr. Pangalos told reporters shortly before leaving for Athens, commenting on yesterday's start of accession talks with Cyp rus and five central and eastern European countries.

Mr. Pangalos referred to the elements of progress existing in the economy and society of Cyprus which constituted a very positive base for the speedy progress of negotiations towards their completion.

"I have tenable reasons to believe that Cyprus will be among the two or three first candidate countries which will conclude negotiations and will become members of the EU," he said.

"The political problem of Cyprus will not be resolved with the negotiations for accession. But since 1974, I believe that it is the sole positive development related to the Cyprus issue which has happened to us and, undoubtedly, it would be very difficu lt for one to imagine that the progress of Cyprus towards Europe will not affect the prospect of a solution to the political problem in some way," he added. Asked to comment on his dinner with NATO Secretary-General Javier Solana on Monday night, Mr. Pang alos avoided giving details on the content of his talks, saying that "all current issues" were discussed and that an "interesting discussion" took place which lasted for about two and a half hours.

[08] ... Cook, van den Broek

Mr. Cook said that Turkey's candidacy would be evaluated on the basis of the same criteria as all other hopefuls, representing the four essential ingredients of modern societies: "a fully functioning market economy, a system of good governance, an effec tive democracy and sound, well-established boundaries against third countries".

Mr. Cook stressed, however, that Turkey has to understand that "the EU must be open to those countries who want to apply for membership and meet the criteria".

The EU Commissioner stressed, "negotiations (with Cyprus) are going to start and to continue and we do not feel that it is productive (for Turkey) to continue to protest against that," and called for a constructive approach to the dialogue. Mr. van d en Broek expressed the EU's regret over Turkey's decision to suspend dialogue with it and converse only at a bilateral level with certain member-states, and appealed to Turkey to "no longer indulge in statements that give the EU the impression that self-f ulfilling prophecies are being created as far as tensions in the eastern Mediterranean are concerned, because of the start of negotiations with Cyprus that were decided as far back as 1995".

He said Turkey "is prepared to talk to the presidency or to member states in their national capacity but wants to avoid to be involved in a discussion with the Union on political items, which they consider to be purely bilateral, between them and Greece , notably where Cyprus is concerned, the Aegean, etc".

"Turkey must stop thinking that its bilateral relations with Greece are of no concern to the EU," he stressed. Referring to Turkish objections to the negotiations for Cypriot membership, he said Turkey was aware of the prospect of such negotiations when it signed its customs union agreement with the EU in 1995, and should, therefore, refrain from reacting today.

Replying to press questions, Mr. Cook repeated that "Cyprus' application must be judged on its own merits and those merits are strong". He said "Cyprus has worked hard to bring its laws into line with the European acquis, it has a fully functioning market economy and a higher standard of living than any of the other applicant countries".

Pointing out that the EU would prefer a united Cyprus to join its ranks, Mr. Cook said that the Cyprus government "stressed its wish, for the sake of their own people, irrespective of the accession to the EU to heal the division".

The British Foreign Secretary expressed regret "that the Turkish Cypriot community did not accept what was a fair and reasonable offer by President Glafcos Clerides to take part in the delegation for the accession negotiations".

He stressed that "the Turkish Cypriot community have actually got more to gain from membership than the rest of the island", pointing out that their "standard of living is one quarter of that of the Greek Cypriot community and they would gain proportion ately more from EU membership".

Asked what concrete steps the EU presidency and Commission are taking to bring about a peaceful resolution of Greek-Turkish relations, Mr. Cook said they are "in close dialogue with Athens and Ankara as well as proceeding with the accession process for Cyprus".

He expressed the hope that some progress will be achieved by the time of the Association Council, towards the end of May. In line with Mr. van den Broek, he stressed the signficance of the unblocking of Community funds for Turkey, envisaged under the cu stoms union agreement.

This point was also stressed by French Foreign Minister Hubert Vedrine, who said that the 1995 agreement to commence negotiations with Cyprus was connected with the decision for a customs union with Turkey and the granting of EU aid to that country.

Mr. Vedrine on Monday, in common with his German and Dutch counterparts, raised the issue of the adoption of the financial regulation for Turkey -despite the fact that the issue was not on the agenda of the foreign ministers' session- , in an apparent a ttempt to forwarn Greek diplomacy.

Indeed, a reliable Greek source in Brussels yesterday said April would be a month of very strong pressures on Greek diplomacy.

[09] ... Greek gov't spokesman

Mr. Reppas was responding to the French AFP news agency who called on him to comment on the so-called "Turkey-Turkish Cypriots Association Council" which was held yesterday in Ankara in response to the beginning of EU-Cyprus accession talks.

He said the accession of Cyprus to the European Union concerned the people of Cyprus in their entirety, adding that this development will be particularly beneficial for the Turkish Cypriots, providing them with a higher standard of living.

"Unfortunately, instead of the path of logic and responsibility for a better future, the Turkish Cypriots are forced by their leadership and by Turkey to stay away from this hopeful process," he said.

Mr. Reppas said that the constructive proposal made by Cyprus President Glafcos Clerides and the government of Cyprus on the participation of the Turkish Cypriots and their contribution to accession negotiations must be utilised even now.

[10] Youth affairs ministers to establish Balkan Centre

Athens 01/04/1998 (ANA)

An announcement yesterday said joint action will be targeted at the sectors of employment, health, sports, the environment, arts and culture. Within this context, Greece pledged to provide the know-how required for designing and implementing European Union youth programmes.

The Balkan youth ministers also decided to establish a Balkan Centre to facilitate and optimise the use of new technology by youth, while discussion also focused on the establishment of an "Observatory" of Minors, which will monitor respect for youth human rights. The centre will also push for legislation to protect minors from sexual exploitation.

The meeting also decided for the immediate undertakng of a number of actions regarding the new generation, including a number of meetings, seminars and exhibitions.

[11] Conference on EU's policy in eastern Mediterranean

Athens 01/04/1998 (ANA)

At an introductory press conference yesterday, Professor Adamantios Pepelasis stressed that the conference was an opportunity to project the role which Greece can play as a link between the EU and the countries of the eastern Mediterranean.

ELIAMEP president Professor Thanos Veremis referred to expanding the EU's Mediterranean role and its efforts to turn the basin into a zone of stability.

[12] Gov't critical of Burns statements

Athens 01/04/1998 (ANA)

Addressing a SE Europe business forum in Thessaloniki on Monday, Mr. Burns said red tape, inflexible labour laws and bomb attacks against foreign firms were a restraining factor for US investments in Greece.

Government spokesman Dimitris Reppas yesterday advised the US envoy to "keep his views on labour relations in Greece to himself".

"The legislative framework which governs these relations is in the interests of Greek society and the state," Mr. Reppas said.

Responding to the ambassador's comments on terrorism, Mr. Reppas underlined that terrorism was a worldwide phenomenon, "the combatting of which requires the cooperation of all".

He stressed that terrorism was not "flourishing" in Greece, adding that Mr. Burns was "the last person" who could refer to the issue. The United States supports Greece in its effort to play a leading role in the Balkans, Mr. Burns said yesterday in Thessaloniki.

"We believe that Greece is the country which should play this role," said Mr. Burns, in the northern Greek port city for a two-day SE Europe business conference which ended yesterday.

Mr. Burns also visited yesterday the offices of the Israeli Community in Thessaloniki where he met with members of the administrative board.

He said after the meeting that the American people "remember with sadness" the tragedy of the Holocaust.

The envoy expressed his respect to the Israeli community in Thessaloniki which, he stressed, had offered much to the city.

[13] ... Synaspismos

"The Greek government must react with clarity and unequivocally to the systematic effort of dictating the policy of Greek governments by the diplomatic representative of the US," the announcement said.

[14] AHEPA delegation makes brief stopover

Athens 01/04/1998 (ANA)

During the past few days the delegation visited Ankara and Istanbul and held talks with Turkish political and military officials as well as the United States ambassador to Ankara.

[15] Ankara talks

ANKARA 01/04/1998 (ANA - A. Kourkoulas)

The AHEPA president said the organisation will do everything in its power to contribute to a better understanding between the two neighbouring countries.

[16] Papariga meets Europarliament president

STRASBOURG 01/04/1998 (ANA - C. Charalambopoulos)

Ms.Papariga is heading a party delegation which began a two-day official visit to the European Parliament yesterday.

Mr. Gil-Robles and Ms. Papariga discussed the dangers of a new cycle of border realignments in the Balkans due to the Kosovo crisis, a fact that could affect Greece as well as the negotiations for the accession of Cyprus to the European Union.

Ms. Papariga stated that when the EU is discussing Cyprus' accession it means the inclusion of only those areas of the island republic not occupied by the Turkish military. She supported that such a move would permanently divide the Republic of Cyprus.

It should be noted that Turkish Cypriots, who mainly live in the 37 per cent of the island republic occupied by Turkey since the 1974 invasion, refused to participate in the EU-Cyprus accession talks.

In a related development, Mr. Gil-Robles, commenting on Turkish Foreign Minister Ismail Cem's comments on Monday on Cyprus' EU accession, said that while they seem impressive, he considers that they were made for domestic consumption in the light of pos sible elections in Turkey.

[17] SE European journalists convene in Athens

Athens 01/04/1998 (ANA)

Journalists from 18 countries including those of the EU southeastern Europe, Cyprus as well as the United States participated at this first meeting of its kind.

The action programme includes the creation of a support network of journalistic organisations and media of southeastern Europe as well as the creation of an on-line information data bank on local issues.

The programme also includes the promotion of bilateral cooperation between the region's media organisations and the preparation of vocational training programmes for journalists.

[18] Premier receives Athens mayoral candidate Damanaki

Athens 01/04/1998 (ANA)

Ms. Damanaki added that she also discussed issues concerning self-administration with Mr. Simitis, saying that it is necessary for a serious institutional discussion to open on the role and duties of self-administration.

Municipal elections will be held throughout the country in October.

[19] Parliament committee in Tirana for talks

Athens 01/04/1998 (ANA)

The delegation, led by former foreign minister Karolos Papoulias, met with Albanian president Rexhep Mejdani, Prime Minister Fatos Nano, Foreign Minister Paskal Milo and a number of other ministers, as well as representatives of Albanian opposition parties and Albanian members of Parliament. The gamut of Greek-Albanian relations were examined during the series of meetings with the common conclusion being that relations between Athens and Tirana are at a very satisfactory level and that the politic al will was there to solve outstanding issues.

The Kosovo crisis was also discussed during talks, with the Greek delegation stressing the need for a solution to be found through talks and the Albanian side adding that Greece could play an important role in finding a peaceful solution to the problem.

Both sides agreed on the exchange of visits by the foreign and defence parliamentary committees on a regular basis to facilitate the exchange of views.

[20] Cabinet examines drugs problem

Athens 01/04/1998 (ANA)

The use of drugs has increased in Greece in recent years and the government is examining a plan that would utilise social education and special training as a means of preventing further drug use.

Several ministers attended the meeting including Rublic Order Minister George Romaios, Justice Minister Evangelos Yiannopoulos, Culture Minister Evangelos Venizelos, Health Minister Costas Geitonas and others.

[21] Books delivered to Greek schools in Istanbul

Athens 01/04/1998 (ANA)

According to the organisation's spokesman, 2,500 to 4,500 Greeks are still living in Instabul today.

[22] Spanish bank joins Inter Alpha Group Banks

Athens 01/04/1998 (ANA)

The Group, founded in 1972, now comprises AIB Group of Ireland, Banco Santader of Spain, Banco Espirito Santo of Portugal, BHF of Germany, Credit Commercial de France, ING of The Netherlands, Instituto Bancario San Paolo di Torino of Italy, Kredietbank of Belgium, Merita Bank of Finland, National Bank of Greece, Nordbanken of Sweden, The Royal Bank of Scotland, and Unibank of Denmark.

More information on the group may be obtained by phoning the National Bank at (01)- 3340541.

[23] Eastern Macedonia, Thrace participate in international tourism fair

Athens 01/04/1998 (ANA)

MITT, which ended recently, is one the largest events in the tourist sector and this year included 3,000 tourism businesses from 90 countries, attracting thousands of visitors.

The event was attended by local officials and hoteliers' representatives from Thrace, Kavala, Thasos and Samothrace.

[24] Greece to use laws to push through public sector reform

Athens 01/04/1998 (ANA)

The firms include Olympic Airways - for which a bill has already been tabled following labour disputes - and Athens urban transport, Greek railways and the post office service, Mr. Papantoniou said.

He said the government would keep to its policy of restructuring the public sector, and the law must be respected.

Responding to criticism that the government was using parliament to effect changes in Olympic Airways, Mr. Papantoniou said debate of the bill in parliament was proof that democracy was at work.

He also warned that loss-making enterprises in the public sector would be closed or reduced in size after the year 2001.

[25] Profit-taking drives down Greek stocks

Athens 01/04/1998 (ANA)

Traders said the fall was a normal reaction by the market after a protracted advance that followed the drachma's devaluation on March 14 and its entry into the European Union's exchange rate mechanism.

The general index ended 3.75 percent lower at 2,005.82 points with all sector indices losing ground.

Banks fell 2.16 percent, Insurance eased 2.14 percent, Investment was 3.34 percent off, Leasing dropped 4.38 percent, Industrials plunged 6.22 percent, Construction lost 6.68 percent, Miscellaneous eased 1.93 percent and Holding fell 2.77 percent.

Trading remained buoyant with turnover at 89.5 billion drachmas, including a block trade of 15 billion drachmas for 12 million shares in Ionian Hotels.

The parallel market index for small cap companies fell 1.74 percent. The FTSE/ASE-20 blue chip index ended 3.13 percent off at 1,186.31.

Broadly, decliners led advancers by 193 to 37 with another 18 issues unchanged.

European Reliance, Demetriadis and Thessaliki scored the biggest percentage gains while Ionian Hotels, Aegek, Attikat and Commercial Invest suffered the heaviest losses at the day's 8.0 limit down.

National Bank of Greece ended at 35,000 drachmas, Ergobank at 22,900, Alpha Credit Bank at 24,750, Delta Dairy at 3,600, Titan Cement at 23,360, Intracom at 18,300 and Hellenic Telecommunications Organisation at 8,000.

[26] Greece's ERM entry boosts stock market

Athens 01/04/1998 (ANA)

The drachma's entry into the European Union's exchange rate mechanism and its accompanying devaluation by 13.8 percent, combined with the announcement of a drastic reform plan for the public sector spurred trade on the bourse.

Since the devaluation the market has emerged as one of the top 10 in the world, attracting massive foreign capital.

April's trade would depend on the inflation rate, domestic interest rates and the government's determination to proceed with its plan to restructure public sector enterprises, brokers said.

The general index was 41.33 percent higher in the month, and the FTSE/ASE-20 index rose 50.53 in the same period.

The volume of trading hit record levels with total turnover at 1.15 trillion drachmas, reaching a daily average of 57.58 billion up from 17.38 billion the previous month.

[27] Greek shares join international index

Athens 01/04/1998 (ANA)

The move signals a new era for the Greek market as it paves the way for a place among Europe's biggest stock markets.

The FT/S&P Actuaries World Indices calculate the performance of 2,000 international companies on a daily basis.

On the same day Portugal will be admitted to the index with 16 already listed companies.

Greece's participation in the index is the following: Alpha Credit Bank, Aluminium de Grece, Aspis Bank, Medical Centre, Attica Enterprises, Bank of Piraeus, Chipita, Commercial Bank, Delta Dairy, Elais, Elval, Ergobank, National Insurance, Goody's , Halcor, Hellas Can, Hellenic Bottling, Hellenic Sugar, Hellenic Telecommunications Organisation, Heracles Cement, Intracom, Intrasoft, Ionian Bank, Michaniki, Mytilineos, ETEBA, National Bank of Greece, Mortgage Bank, Papastratos, Varytine and Titan Cement.

[28] Greek railways issue Lira 325 bln bond

Athens 01/04/1998 (ANA)

The bond, the first ever for the national railway company, will be covered through private placement. It has a yield of 6.25 percent.

Tokyo-Mitsubishi Bank will act as manager of the issue.

The deal was signed in London yesterday.

[29] Greece sees good prospects for Balkan economy, banking cooperation

Athens 01/04/1998 (ANA)

He told the second and final day of a Balkan business forum in Thessaloniki that there were substantial opportunities for banks to penetrate agricultural, tourist and industrial credit.

Mr. Christodoulakis said bank credit was growing rapidly and was expected to accelerate further due to an economic recovery that would intensify from 1998, although the outlook for consumer credit in the Balkans was still limited.

"Combined with the lack of capital markets, high inflation, large-scale foreign borrowing and delay in the modernisation and development of retail trade, there isn't much room for the development of consumer credit," Mr. Christodoulakis said.

He said it was the first time in the post-war period that the opportunity was being given to Balkan States to operate without political or military obstacles.

"This could lead to economic structures and enterprises different from those we knew in the past," Mr. Christodoulakis said.

[30] Greece wants energy forum in Balkans

Athens 01/04/1998 (ANA)

Development Minister Vasso Papandreou told the same forum that regional leaders had agreed at a meeting in Crete last year to make energy was a priority sector in Balkan cooperation.

In addition, Balkan energy ministers who met in Bucharest last November agreed to promote European Union funded projects that will pave the way for integrated Balkan energy networks.

The project awarded the highest priority was a pipeline to carry Russian oil from Burgas in Bulgaria to the northern Greek port of Alexandroupoli, Ms Papandreou said.

A plan to link the Balkans' electricity network was being approached on two levels, she said.

The first was to meet energy needs in the region, and the second to operate as part of the international market, including the transport of energy from countries with reserves in the east, towards the European Union and other countries that import much of the energy they consume.

The private sector would play a major part in providing investments, but EU funds, loans from development banks and international investment initiatives like SECI should be used, Ms Papandreou said.

Turning to industry overall, she said Greece's government had focused its attention on northern Greece, the gateway to the Balkans and eastern Europe, through a programme to improve infrastructure in transport, production, distribution and information technology.

The programme, which is budgeted at nine billion drachmas for 1997-2001, is being managed by the Private Infrastructure Development Company of Northern Greece, which was set up by the Association of Northern Greek Industry and local trade groups.

Greece had improved the flow of trade following changes to its export mechanisms and a rise in investments in neighbouring countries.

It was also working to eliminate disincentives, and reinforce mechanisms for the award of export credits. A new development bill extended incentives to investments outside Greece that formerly only applied to Albania.

Finally, the drachma's entry into the EU's exchange rate mechanism on March 14 had made Greek exports cheaper in Balkan countries. It also meant that the national currency could be used as a benchmark for trade in southeastern Europe, Ms Papandreou said .

[31] Bulgaria's Boskov

Athens 01/04/1998 (ANA)

Mr. Boskov added that the privatisation programme of 100 large enterprises, including banks, is well under way in Bulgaria and is expected to be fully executed by the end of the year.

The deputy premier said that 60 large enterprises have already been privatised, while 2,000 small and medium enterprises will be privatised by the year 2000.

According to Mr. Boskov, inflation in Bulgaria fell from 243 per cent to 0.5 per cent in 1997, while interest rates fell from 300 per cent to 5.3 per cent during the same period.

[32] Greek farm revenue to get stiffer tax

Athens 01/04/1998 (ANA)

Factors involved in computing the tax, which is estimated to be 30 percent higher in some instances, are income from leasing farmland, net agricultural income per stremma, and the type of crop or livestock involved.

The deadline for tax declarations is April 15, a month later than other sectors.

[33] Bank of Athens denies buy-out rumour

Athens 01/04/1998 (ANA)

The bank said in a statement that Hanwa's representative told the bank's board that the Korean group had no plans to sell the bank and that no financial institution had expressed interest in its purchase.

[34] Greece's Alpha Credit Bank has 31.5 pct jump in 1997 profit

Athens 01/04/1998 (ANA)

The bank's net profits totalled 54.4 billion drachmas.

Alpha Credit Bank, Greece's largest private bank, will pay a 750 drachma per share dividend to shareholders. Kostopoulos said that the bank operated 200 branches and aimed to increase the total by 50 branches before 2000.

[35] National Bank of Greece offers Easter holiday loans

Athens 01/04/1998 (ANA)

Available from last Monday, the loans will continue until April 30, and are repayable in six to twelve months.

The bank's regular customers who are in credit and part of an automatic repayment scheme from their deposit accounts can get the loans at 14 percent with expenses reduced by 50 percent.

[36] Greek tourism industry backs Olympic Airways bill

Athens 01/04/1998 (ANA)

The Greek Tourism Enterprises Association (SETE) said in a statement that it backed revitalisation of the airline, the only way to ensure its survival.

SETE also urged a swift end to the crisis to minimise any damage to tourism and the national economy, also keeping the image of the airline and country intact.

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