Athens News Agency: Daily News Bulletin in English, 98-07-21

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

CONTENTS

[01] Athens reiterates call for implementation of UN resolutions regarding Cyprus

[02] Tirana requests Athens' mediation for end of Kosovo violence

[03] US initiative for Cyprus - Sch�ssel

[04] Greece proposes new coastal road link to Albania

[05] New Orthodox Metropolitans appointed in Albania

[06] PM receives ENAE president Kouloumbis

[07] Former U.S. president Bush in Greece

[08] Greek expatriate politicians arrive for conderence

[09] Kranidiotis contacts with Chinese leadership

[10] Tzoumakas requests more EU money for forests' protection

[11] More fishermen in Greece per capita than rest of EU

[12] Intrakom, Alpha Credit cooperation

[13] Simitis-Papantoniou meeting focuses on economy

[14] Intrakom participation in int'l tendering

[15] Strintzis Lines share capital increase

[16] Unemployment jumps to 9.8 percent in June

[17] Greek stocks surge for third session, again post new record

[18] State telecom workers to strike over new float

[19] State auction of 15-yr bonds brings lower rate

[20] Tourism workers launch strike over restructuring bill

[21] Gov't sees tourism to Greece rising 15 pct in 1998

[22] EU funding commissioner to visit Athens

[23] Gov't to decide OA's future after peak tourist season

[24] Xiosbank opens new branch in Athens, announces weekly rates

[25] Insurance firms merge

[26] Banks to create euro coordinating committee

[01] Athens reiterates call for implementation of UN resolutions regarding Cyprus

Athens 21/07/1998 (ANA)

Speaking on the 24th anniversary of the Turkish invasion of the island, government spokesman Dimitris Reppas said it was time for the impasse in the resolution of the problem to be overcome.

Mr. Reppas said the presence of Turkish government officials, fighter planes and warships in the occupied sector of Cyprus on the anniversary of the invasion was a "sign of Turkey's weakness".

"It does not only confirm that (Turkey) illegally occupies a section of the island but also proves that Turkey has no intention of contributing to a solution," Mr. Reppas said.

"Such a negative policy not only exposes Turkey but fosters serious dangers for it," he added.

Yilmaz in occupied territories : ANKARA (ANA-A.Abatzis) - Turkish Prime Minister Mesut Yilmaz arrived in the Turkish occupied part of Cyprus yesterday morning to attend celebrations marking the 24th anniversary of the islandYs invasion by Turkish troops.

In a statement upon his arrival, he said that "even though the Turkish nation had no hostile feelings against the Greek people, in the event that Greece and the Greek Cypriot side continued their hostile stance they will certainly once again be held res ponsible in the face of history".

The Turkish PM further added that both Greece and the Greek Cypriots interpreted EU accession talks as the green light to anything they wished.

"The future installation of the Russian-made S-300 missile system on Cyprus and the construction of a naval and air base on Cyprus for Greek use shows that Greece has learned nothing from history," Mr. Yilmaz added.

In a related development, Turkish President Suleyman Demirel sent a message to Turkish Cypriot leader Rauf Denktash.

G. Papandreou : Alternate Foreign Minister George Papandreou, replying to reporters' questions during a conference, said later that the international community should move its focus from concern over the deployment of the S- 300s to the demilitarisation of the island repu blic, proposed by Nicosia.

"US administrations supply Turkey with materiel, violating even the laws passed by the Congress while they could be helping in the direction of demilitarisation," Mr. Papandreou said.

Kaklamanis Parliament President Apostolos Kaklamanis addressed a message to the Cypriot House of Representatives Speaker Spyros Kyprianou, in which he stressed that the international community, especially the US, were hypocritical towards the ongoing problem on Cyprus.

"We are witnessing lately an outrageous attempt to equalise the victimiser with the victim, sparked by the Cypriot Republic's order for the S-300 defensive missile system in a fully justifiable and legal effort to bolster its defence", Mr. Kaklamanis said in his message.

New Democracy, Pol.An : The Turkish officialsY statements also provoked reactions by opposition parties in Athens.

Main opposition ND party spokesman Aris Spiliotopoulos said in a statement that the continuing tragedy in Cyprus for a quarter of a century was a disgrace to the international community.

"The statements also prove that Turkey does not wish a just and viable solution of the Cyprus problem", he stressed.

Political Spring leader Antonis Samaras commented that "blackmails mounted" against the S-300 missiles were aimed at leaving Cyprus defenceless.

Kranidiotis : Foreign Undersecretary Yiannos Kranidiotis warned yesterday that "two separate states in Cyprus would mean that the Greek Cypriots and Turkish Cypriots would live constantly in a climate of tension, threatening stability in the region".

In separate interviews with the Turkish dailies "Sabah" and "Yeni Yuzgil", published yesterday, Mr. Kranidiotis said that "unfortunately, (Turkish Cypriot leader Rauf) Denktash and some circles in Turkey have not altered their view regarding an 'indepen dent Turkish state' in (northern) Cyprus".

"They see that Cyprus' membership in the EU will ruin their plans for the hegemony they want Turkey to acquire, and consider the recognition of two states as their only way to "salvage" those plans," he said. Turning to Turkey-EU relations, Mr. Kranidiotis said that "Greece has frequently reiterated that it desires progress in Turkey's course towards the European Union".

"But," he added, "we cannot overlook the negative stance of Turkish governments and the objections voiced by Turkey against Greece's territorial integrity and sovereign rights."

Athens News Agency

[02] Tirana requests Athens' mediation for end of Kosovo violence

TIRANA 21/07/1998 (ANA - A. Podimata)

"Mr. Milo asked the Greek government to exercise its influence on Belgrade to defuse the crisis and work towards a settlement of the crisis," Mr. Pangalos said, adding that this was Greece's position.

"A solution has to be found through dialogue," he said, adding that Mr. Milo had agreed with this approach.

"It is imperative that acts of violence cease," Mr. Pangalos added, stressing that he would meet with representatives of the Kosovo Albanians later in Tirana.

Speaking later during a joint press conference, Mr. Milo said the issue of Kosovo accounted for a large part of talks, adding that "the two sides considered the situation to be extremely grave and agreed that immediate intervention is necessary to prevent a further worsening and expansion of the crisis."

He said that the Albanian side has stated that the resumption of dialogue can only take place if the Serbian side withdraws its forces and that it raised the issue of an international military presence in Kosovo in the event that other solutions fail.

Mr. Milo said the two sides agreed on the need for increased international presence, both political and diplomatic, in Kosovo with the purpose of preparing the future status.

Mr. Pangalos underlined the need for an increase in international presence and that the number of international observers (24) in Kosovo is low.

"If they were 300 or 400 they would certainly be in a position to give a better and more complete picture of the situation," he said, adding that these observers must not be armed.

Mr. Pangalos said that acts of violence must stop and there should be an open dialogue in search of a solution acceptable to all sides.

"It would be particularly positive if there was a unified expression by the people of Kosovo, which would greatly facilitate negotiations and international initiatives," he said.

Mr. Pangalos reminded that Greece had raised the issue of Kosovo with the European Union four years ago which, however, "always shows a disposition of delay."

"The EU has grave responsibilities for not tackling the problem in time," Mr. Pangalos added.

He also criticised the Yugoslav leadership, saying that it has grave responsibilities for not handling the situation in time "and as a result tension has increased and things have been led to the point they are today."

Outlining Greece's position, Mr. Pangalos reiterated that "we will seek a solution in the framework set by the international community" and added that Greece endorsed the positions of the Contact Group and the OSCE.

Replying to a question by the press on Greece's position regarding the issue of the Kosovo Liberation Army (KLA), he said "we are against force and acts of violence which, we believe, help neither the Kosovars, nor the Albanian people and nor peace in the region."

Referring to the same issue, Mr. Milo gave a vivid description of what he called the massacre of innocent people and the destruction of Kosovar villages by Serb forces, saying that "the Liberation Army is the legal reaction of a people being killed, mas sacred in their homes by the Serb army and paramilitary forces."

However, he categorically denied that Albanian officers are thronging the ranks of the rebel army.

Mr. Pangalos announced that Greece will mediate again towards Belgrade, in the direction that he already described: an increase in international presence, the "release" of armed men and a start to negotiations.

He said he will convey the same positions to the Kosovars' representative with whom he was to meet later on.

Greek gov't spokesman : In Athens, the Greek government yesterday said it was "categorically" in favour of the respect of present borders in the wider Balkan region as well as for the rights of ethnic Albanians in the Yugoslav province of Kosovo.

Government spokesman Dimitris Reppas said the ethnic Albanians of Kosovo had to be given "wider autonomy within the context of the Federal Republic of Yugoslavia".

"All sides must seek a solution in the interests of all," Mr. Reppas said. He said dialogue and understanding were the only path towards this solution.

Athens News Agency

[03] US initiative for Cyprus - Sch�ssel

BRUSSELS 21/07/1998 (ANA - P. Pantelis)

Austrian FM Wolfgang Sch�ssel told a Europarliament Foreign Affairs Committee meeting that the EU has agreed on this initiative.

He revealed that the decision was taken at a meeting in Washington last Friday between the EU troika's political affairs chiefs and their US counterparts.

The EU troika is made up of the former presidency (Britain), the current presidency (Austria) and Germany, who will take over the next six-month rotating EU presidency in January.

Mr. Sch�ssel said that they had agreed "to make every effort to discourage the arms race" in Cyprus and that "the Americans would take action to defuse tension."

Mr. Sch�ssel was responding to a question by Greek Eurodeputy Panayiotis Lambrias (New Democracy).

He reassured that Cyprus' negotiations for accession will in no way depend on the armaments situation on the island, but will go ahead as decided at the Luxembourg summit, held in December last year.

The Luxembourg summit included the Cyprus Republic in the first wave of countries the EU opened accession talks with in March.

Concern about armaments on Cyprus was raised after the Cyprus government decided in January 1997 to purchase the S-300 surface-to-air missile system from Russia, in an attempt to boost its air defences.

Turkey has maintained a heavy armed military force in Cyprus since it invaded the island in 1974, occupying 37 per cent of the Republic's territory.

Athens News Agency

[04] Greece proposes new coastal road link to Albania

TIRANA 21/07/1998 (ANA - A. Podimata)

At the start a two-day visit to Tirana, Mr. Pangalos told Albanian Foreign Minister Paskal Milo that the Greek government would work to secure European Union financing for the joint project. The new road would run along the Dalmatian coast.

The two officials also discussed the construction of three new border posts on the Greek-Albanian border and the creation of a free-movement zone along a 25-kilometre stretch of the border.

Accompanying Mr. Pangalos to the neighbouring country is a 16-member delegation of Greek businessmen who are due to have talks with members of the Albanian government on spurring business links.

Across-the-board cooperation between Greece and Albania was robust and many commitments under bilateral protocols had been met, Mr. Pangalos told reporters.

He also met Albanian Prime Minister Fatos Nano and President Rexhep Mejdani.

Press conference : At a press conference later, Mr. Pangalos and Mr. Milo underlined the excellent level of relations existing between Greece and Albania.

The Greek foreign minister said his talks with his Albanian counterpart focused on the legalisation of Albanian workers in Greece, which was seen to be developing positively, as well as special measures both in the public and private sector in relation to the education of Albanian children living in Greece.

Mr. Milo also referred to the prospects for signing a protocol aimed at preventing and averting border incidents.

"The Greek government is willing to open discussions (on the issue) soon", he said.

Athens News Agency

[05] New Orthodox Metropolitans appointed in Albania

TIRANA 21/07/1998 (ANA)

During the historic meeting, the Holy Synod decided to accept the resignations of Metropolitans Alexandros of Gjirokaster and Christodoulos of Korce, who were rejected by the Albanian government as they were not Albanian nationals.

It should be noted that Ignatios is an Albanian national and speaks Albanian.

In their place, the Holy Synod appointed Albanian nationals Ioannis Peluci, 43, and Kosmas Kirio, 77.

The first is the assistant director of the Albanian Church's Theological Academy and a graduate of the Greek Orthodox Church of America Holy Cross School of Theology. The second is the bishop of Appolonia, who had continued to perform his religious duties during the severe persecution of the Hoxha regime.

The two newly elected metropolitans will be enthroned and take over their new posts on Thursday.

Athens News Agency

[06] PM receives ENAE president Kouloumbis

Athens 21/07/1998 (ANA)

Mr. Kouloumbis, a longtime ruling PASOK cadre and former minister, said afterwards that the purpose of the meeting was to brief the premier on prefectural administration and its problems.

According to reports, the interior ministry has drafted a bill expected to mark the financial independence of prefectural administrations.

The premier also received Labour and Social Services Undersecretary Nikos Farmakis and was informed on subjects related to the latter's jurisdiction.

According to press reports, the two men discussed the insurance bill, a price list for medicines and social dialogue, among others.

Athens News Agency

[07] Former U.S. president Bush in Greece

Athens 21/07/1998 (ANA)

Messrs. Bush and Powell, accompanied by their wives, are here as guests of Greek shipping tycoon Yannis Latsis, who placed his private jet and luxury yacht, the "Alexander", at their disposal.

Latsis sources told ANA that the two couples had already embarked on a cruise of the Aegean islands, and would be in Greece until early August.

The Bushes and Powells had a brief private holiday on Crete and Gavdos islands in June 1996.

Athens News Agency

[08] Greek expatriate politicians arrive for conderence

Athens 21/07/1998 (ANA)

The event is attended by 40 Greek expatriate politicians elected to foreign parliaments and hailing from Australia, Canada, the United States, Ukraine, Albania, Georgia, Romania, South Africa, Kenya, Argentina, Peru, the Netherlands, Sweden, Yugoslavia and Lithuania.

The session was inaugurated by Alternate Foreign Minister George Papandreou who said that issues concerning multi-culturalism were discussed at the session, namely, respect for the culture of each people separately. He added that not only to maintain our right to culture but also to strengthen the tolerance of the foreigner from another.

"It is necessary for us to practically utilise Greek diaspora. Not that it has not had a strong presence in affairs in Greece until now, but we will strengthen the utilisation of Greek potential to enable us to be linked to latest developments at a world level," Mr. Papandreou said.

The morning session was also attended by the organisation's president and Australian State MP Demetri Dollis and the president of the Council of Overseas Hellenes (SAE) Andrew Athens.

The Greek expatriates showed particular interest in Greek national issues, underlined the aggressiveness of Turkey and referred to the issue of a nuclear plant being established in a neighbouring country and the dangers attached to it. They also comment ed on the olympic truce and the Olympic Games.

The second session will be concluded on July 27 since the participants will visit Thrace, Hios and Cyprus as of July 25.

Finally, Mr. Papandreou said an Internet site will be created showcasing issues of concern for expatriate Greek politicians, while an information bulletin regarding Athens' relations with countries in which the expatriate politicians reside will be dist ributed every three months through Greek embassies.

President of the Republic Kostis Stephanopoulos yesterday received World Council of Hellenes Abroad (SAE) members of the board headed by SAE president Andrew Athens.

Athens News Agency

[09] Kranidiotis contacts with Chinese leadership

BEIJING 21/07/1998 (ANA)

The further strengthening of relations between Athens and Beijing was agreed to, which includes a bilateral agreement on the avoidance of double taxation.

Mr. Kranidiotis said that his talks were particularly constructive and confirmed the huge potential existing for the development and enlargement of relations between the two countries. He said that no one can disregard the fact that the People's Republic of China constitutes one of the most dynamic factors in international politics and is destined to play an important role in world developments.

Mr. Kranidiotis had the opportunity during his contacts to brief the Chinese leadership on Greece's policy in Europe, problems in relations between Greece and Turkey, recent developments over the Cyprus issue and in Kosovo, as well as on the role Greece aspires to play in the Balkans and the eastern Mediterranean.

He further expressed Athens' satisfaction on China's position regarding the Cyprus issue within the framework of the UN, as well as for support for Greece's candidacy for the position of a non-permanent member on the UN Security Council over the 1999-2000 period.

A delegation from Crete will participate at the "International Cultural Tourist Festival of Island Civilisations", taking place on the Korean island resort of Cheju from July 17 to Aug. 13. The island will represented by 30 Cretan folk artists, dancers and civic leaders. Another 28 islands from 25 countries are scheduled to arrive.

Athens News Agency

[10] Tzoumakas requests more EU money for forests' protection

BRUSSELS 21/07/1998 (ANA - P. Pantelis)

Mr. Tzoumakas stated his request during the first meeting of the agriculture ministers' council.

The ministers also discussed the issue of quotas, focusing on milk production quotas.

Finally, they dealt with the current farm credits system, and how it will be affected by the introduction of the euro.

Athens News Agency

[11] More fishermen in Greece per capita than rest of EU

BRUSSELS 21/07/1998 (ANA)

Eurostat noted that 1 per cent of the Greek workforce, or about 40,000 individuals, are fishermen, while another 10 per cent are employed in the sector.

Figures also noted that the average per capita consumption of fish in Greece stands at 24 per cent, while the EU average is 22 per cent.

According to the report, seafood production rose by 124 per cent during the 1970-1995 period, while the largest producer is Denmark with 25 per cent of the Union's 8.1-million-ton total.

The report also notes that the per capita consumption of seafood in the EU is about the same as that of the United States, while it is higher than the international per capita consumption by 13 kilos.

Athens News Agency

[12] Intrakom, Alpha Credit cooperation

Athens 21/07/1998 (ANA)

According to reports, this alliance has already been finalised, utilising know-how in the local software market of Intrasoft and Delta Informatics, a subsidiary of Alpha Credit group, in developing and supporting services for sports events.

Business penetration of the sports market by the two groups will be carried out through the creation of a joint company entitled Infospor. The two companies will participate in the company on a 50-50 basis, without the possibility of small stakes for in dividuals ruled out at a later stage.

Athens News Agency

[13] Simitis-Papantoniou meeting focuses on economy

Athens 21/07/1998 (ANA)

Mr. Papantoniou said afterwards that no decisions were taken.

The two men also exchanged ideas on the Greek economy's prospects after 2000, with economic planning focusing on the country's participation in EMU by 2001.

Replying to a question, Mr. Papantoniou said discussions also touched on next year's state budget and the main points in the prime minister's scheduled address at the annual Thessaloniki International Trade Fair in early September.

With regard to privatisations, Mr. Papantoniou commented that "everything is going well", as the government is awaiting an upcoming bids process for the banks of Central Greece and Ionian as well as the Hellenic Duty-Free Shops.

Athens News Agency

[14] Intrakom participation in int'l tendering

Athens 21/07/1998 (ANA)

The company will contest, with three offers submitted to the national defence ministry's general armaments department on Sunday, the project for the procurement of AWACS flying radars for the Hellenic Air Force.

Athens News Agency

[15] Strintzis Lines share capital increase

Athens 21/07/1998 (ANA)

To this end, the company which is listed in the Athens bourse, will issue 14,800,000 new shares to be sold at 2,000 drachmas each.

Athens News Agency

[16] Unemployment jumps to 9.8 percent in June

Athens 21/07/1998 (ANA)

The nearest figure was 9.83 percent in March, when unemployment is generally high. In summer the rate drops due to seasonal work.

In June, the registered unemployed were 288,299, the highest seasonal figure recorded by the state Manpower Employment Organisation (OAED), which collected the data.

According to OAED's director, Kostas Efstratoglou, the sharp rise appears to be due to a rush to sign on by the unregistered jobless in order to gain eligibility for vocational training programmes and subsidised jobs recently announced by the government .

Athens News Agency

[17] Greek stocks surge for third session, again post new record

Athens 21/07/1998 (ANA)

The Athens general share index ended 1.18 percent higher at 2,770.91 points, and the FTSE/ASE 20 index gained 1.58 percent to finish at 1,691.20 points. Trade was moderate with turnover at 58.9 billion drachmas. Buying interest centred on construction stocks with the sector index finishing 5.96 percent higher.

Most other sectors recorded gains. Banks rose 2.55 percent, Leasing rose 0.20 percent, Insurance jumped 3.19 percent, Investment edged up 0.02 percent, Industrials dropped by 0.64 percent and Holding gained 3.01 percent.

Bucking the trend was Miscellaneous, which fell 1.57 percent.

The parallel market index for small cap companies finished 1.33 percent up.

Closing at the eight percent upper daily volatility limit were Athina, Aktor, Atemke, Edrasi, Ergas, Metka, Bitros, Levenderis, Evropaiki Techniki, KI Sarandopoulos, Michaniki, Technodomi, Proodeftiki, Nel, Aspis, Ependytiki, Lampsa, Athinea, Thrace Pla stics and Elve Apparel.

The day's biggest percentage losers were Dimitriadis, Strintzis Lines, Development Invest, Piraeus Leasing, Alysida, Viosol, Klonatex and Rilken.

National Bank of Greece ended at 50,000 drachmas, Ergobank at 33,920, Alpha Credit Bank at 29,990, Ionian Bank at 17,950, Commercial Bank of Greece at 29,350, Delta Dairy (common) at 3,850, Intracom (common) at 12,500, Titan Cement (common) at 23,300, H ellenic Petroleum at 2,710 and Hellenic Telecommunications Organisation at 8,510 drachmas.

Athens News Agency

[18] State telecom workers to strike over new float

Athens 21/07/1998 (ANA)

The latest float on the Athens Stock Exchange would bring the total of stock sold in OTE up to a maximum of 45 percent, paving the way for a majority privatisation in the future, OTE's union said in a statement yesterday.

OTE had no need to sell stock as it could fund investments from its equity capital. The sale was aimed solely at raking in extra funds, the statement claimed. The union called on parliament, political parties and other groups to protest against the flotation.

National Economy and Finance Minister Yiannos Papantoniou said recently that an amendment would have to be voted through parliament allowing the sale of more stock.

He also said the third float would mark the end of share sales to private investors.

Earlier, OTE's managing director, George Hrysolouris, met Prime Minister Costas Simitis to inform him of progress in the company's Balkan investment plan. Mr. Hrysolouris told reporters that banks abroad had shown great interest in OTE's stock, and he hoped the share price, which was set by the market, would rise further.

He was replying to a reporter's question on whether OTE's share price could hold above 8,500 drachmas.

Yesterday's closing price for the share was 8,510 drachmas on the Athens Stock Exchange.

Athens News Agency

[19] State auction of 15-yr bonds brings lower rate

Athens 21/07/1998 (ANA)

Primary dealers offered bids worth 593.8 billion drachmas, which meant the issue was oversubscribed by 2.4 times. The ministry accepted 280.8 billion drachmas in bids, over its original target.

The average weighted rate for the bonds was 7.42 percent, lower than the coupon's 7.50 rate. It was also lower than 7.70 percent in May's auction.

The average weighted price in yesterday's auction was 100.61 against 98.08 in May.

Banks received no commission for taking the paper due to a recent change in the law.

Athens News Agency

[20] Tourism workers launch strike over restructuring bill

Athens 21/07/1998 (ANA)

The house is today due to begin debate on the bill, which aims to restructure EOT in order to cut costs and improve efficiency.

It will allow the creation of two SA companies. One is to manage EOT's property, a part of which is gradually being leased or sold, and the other to organise the yearly Athens Festival.

Development Minister Vasso Papandreou, who is responsible for tourism, told a news conference yesterday that EOT would be restructured despite opposition by staff.

At the same time, no redundancies would be ordered in EOT or in its offshoots, some of which are due to be privatised or leased, Ms Papandreou said.

Some transfers to other public services may be required to combat localised overstaffing. One example was that EOT currently employs 85 engineers, some of whom are not needed in their posts, Ms Papandreou said.

A committee would make recommendations by September on the allocation of responsibilities for tourism to the development ministry and to EOT, which falls under its jurisdiction, she said.

Athens News Agency

[21] Gov't sees tourism to Greece rising 15 pct in 1998

Athens 21/07/1998 (ANA)

Ms Papandreou, whose portfolio includes tourism, dismissed what she called "whining" by hoteliers and travel agents who feared a decline in arrivals.

There was a 22 percent increase in the number of Britons who had chosen Greece for their holidays this year, and a 28 percent increase in the number of Belgian tourists, she said.

A major tour operator, TUI of Germany, had reported a 21 percent increase in bookings to Greece from 1997, and ministry figures showed the number of German tourist arrivals would increase by 12 percent.

Also up on last year's figures were the number of Italian (+7%) and Dutch (+14%) tourists, Ms Papandreou said.

Greece was clearly reaping the benefits of a downturn in tourism to Turkey but the Greek tourist industry should not rest on its laurels. Better quality and a diversification of products were needed, she said.

Athens News Agency

[22] EU funding commissioner to visit Athens

Athens 21/07/1998 (ANA)

Ms Wulf-Mathies is expected to have talks with Prime Minister Costas Simitis, National Economy and Finance Minister Yiannos Papantoniou, National Economy Undersecretary Christos Pachtas, and Alternate Foreign Minister George Papandreou.

The talks are likely to cover proposals by the EU's executive Commission on shaping regulations based on Agenda 2000.

The rules are of immediate interest to Greece in connection with a new package of EU funds being developed, the third Community Support Framework, and regional development projects that are co-financed with the EU.

Athens News Agency

[23] Gov't to decide OA's future after peak tourist season

Athens 21/07/1998 (ANA)

The decision would follow an appraisal of progress made by the national carrier's management in carrying out a restructuring plan that aims to keep the airline afloat.

"Nobody can remain indifferent in the face of the present situation," government spokesman Dimitris Reppas said.

He was replying to a reporter's question on whether the government still believed that Olympic Airways had either to restructure or close down.

OA's operations were still causing unjustifiable inconvenience to passengers, and the streamlining effort had to move faster, Mr. Reppas said.

At the same time, the government was hopeful that the European Union would lift its ban on a share capital rise for OA that was imposed when an earlier revitalisation scheme ended in failure, he said.

But workers, whose unions have ordered many strikes since the spring, had to cooperate with management to make the restructuring plan work.

OA flights at Athens airport have been characterised in past weeks by delays of up to five hours on domestic routes, and some cancellations of domestic and international flights.

The airline's management announced yesterday that it would hire 74 flight attendants on seasonal contracts to work in the busy summer season. A shortage of staff is part of the reason for flight delays.

In March, the government said it would shut down the national carrier if the latest streamlining plan was rejected by unions.

On Friday, it criticised workers at Olympic Airways for failing to throw their weight behind the five-year restructuring plan, which aims to save 250 billion drachmas.

The airline was still far from meeting targets set in the cost-cutting plan but the outcome of a formal evaluation of performance would determine the action to be taken, the government said.

Athens News Agency

[24] Xiosbank opens new branch in Athens, announces weekly rates

Athens 21/07/1998 (ANA)

The bank said in a statement yesterday that it also plans to open another branch in Ambelokipi (Attica) and in the northern town of Serres.

In addition, Xiosbank announced the following rates, which are adjusted weekly:

• Base rate for business credit steady at 18.50 percent
• Xios-Alma deposits account, annual return of 10.47 percent with monthly payment of interest.

Athens News Agency

[25] Insurance firms merge

Athens 21/07/1998 (ANA)

According to European Credit officials, "the merger... is the first step in our declared strategic option to play a leading role...between healthy companies in the insurance sector as well as in the wider fiscal sector."

Following the merger, European Credit will strengthen its portfolio since Eurogroup has a portfolio totalling 1.6 billion drachmas.

Athens News Agency

[26] Banks to create euro coordinating committee

Athens 21/07/1998 (ANA)

EET has also created a euro bureau with the task of supporting the Euro Committee. Each bank which is a member of EET will appoint one of its senior officials to be responsible for its preparation in light of the introduction of the unified currency and who will be its link with the EET.

EET secretary general Ioannis Manos announced that the committee will take care of the best possible utilisation by Greek banks of the reports contained in EET's recent study on adjustments and repercussions on the Greek banking sector from EMU and the introduction of the euro.

Athens News Agency

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