Athens News Agency: Daily News Bulletin in English, 98-12-24

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

CONTENTS

[01] Athens pleased with UN resolutions regarding Cyprus

[02] Markets remain positive despite holiday lull

[03] Greek stocks in year-end rally

[04] ANEK Lines IPO 56 times oversubscribed

[05] RTRS-Fitch IBCA gives Commercial Bank a 'BBB' rating

[06] Bourse approves share capital increase, listing for two firms

[07] New fixing method by Bank of Greece

[08] Moody's examining upgrade of Eurobank's rating

[09] National Bank shareholders to consider four-way split

[10] Athens Foreign Exchange

[11] Arsenis adamant over education reform, protests persist

[12] CD with ecclesiastical hymns released by Archdiocese of America

[01] Athens pleased with UN resolutions regarding Cyprus

Athens 24/12/1998 (ANA)

The second resolution called on the Greek Cypriots and Turkish Cypriots to respond positively to efforts by UN Secretary General Kofi Annan's deputy special representative for Cyprus, Ann Hercus, to secure agreement on measures to reduce tension and build confidence between the two communities.

Both resolutions were adopted by the Security Council without debate on Tuesday.

Mr. Pangalos said the simultaneous adoption of the two resolutions not only illustrated the strong interest of the international community on the Cyprus issue, but also showed that the Security Council had realised the dangers entailed by any further prolongation of the problem.

"It is indeed the first time that, apart from the usual formalities, the Security Council with new, very strong expressions and specific instructions and directions, appears determined to make efforts not only for a short- term reduction of tension, but to tackle the substance of the crucial problem of security and at the same time move decisively to resolve the Cyp rus problem," he said.

Commenting on the texts of the resolutions, Mr. Pangalos said they clearly described the main parameters for resolving the Cyprus problem and in so doing, stated in the most responsible, official and categorical way that any other proposals put forward by the Turkish side were not being considered by the international community and were regarded as unacceptable.

In adopting the resolutions, the Security Council expressed grave concern at "the continuing excessive levels of military forces and armaments" on the island.

Mr. Pangalos stressed that there was only one state and only one legitimate government in Cyprus and that the situation imposed by force - following the 1974 Turkish invasion and subsequent occupation - could not be tolerated.

The only solution to the Cyprus problem, he added, is a federation. The second resolution adopted, Mr. Pangalos continued, proposes specific means for achieving progress in the issue of security, such as the commitment not to use force and a gradual process aimed at reducing forces and armaments along the lines already proposed by Cyprus President Glafcos Clerides.

The Greek minister said the text of the resolution also referred to an intensification of international efforts for the attainment of an overall solution to the problem.

Noting that it would be wrong to underestimate the importance of the two resolutions, Mr. Pangalos said "we cannot allow Turkey to dictate to the international community what moves should be made".

Asked what specific initiatives on the Cyprus problem might be expected from the international community, Mr. Pangalos replied, by way of example, the withdrawal of US weapons systems which are presently illegal deployed in the Turkish-occupied part of the island.

Replying to reporters' questions on Nicosia's plans to install Russian-made S-300 anti-aircraft missiles to bolster the island's defences, he said the issue would be discussed by Cyprus' National Council.

Mr. Pangalos said it is the first time the Security Council uses such strong wording and gives concrete instructions and directives, which proves that "it is determined not only to reduce tension in the short-term, but also to substantively tackle the crucial issue of security and move decisively towards the solution of the Cyprus problem." He added that one of the resolutions addresses the basic parametres of the Cyprus issue, making it clear that proposals put forward by the Turkish side for the establishment of a confederation of two states on the island are not accepted.

The Greek Minister welcomed statements made yesterday by US President Bill Clinton, British Prime Minister Tony Blair and European Union officials with which they express support to the UN resolutions and pledge to work for their implementation.

"The Greek government expects their implementation with specific initiatives, " he added.

Mr. Pangalos said the resolutions and the statements by foreign leaders "create well-founded hopes that the international community appears ready to take up its obligation to enforce international law in Cyprus."

He expressed the Greek government's readiness "to cooperate in a constructive spirit with the UN and the international community for the implementation of these resolutions."

Replying to questions, the Greek Foreign Minister dismissed a comment that the resolutions contain only "verbal improvements" on previous UN resolutions on Cyprus, and said the "improvements are substantive".

Asked about the deployment of the Russian-made S-300 defence missile system ordered by the Cyprus government, Mr. Pangalos said the final decision will be taken by the Cyprus Republic's government and political leaders.

Clinton : WASHINGTON (ANA - T. Ellis) - US President Bill Clinton said that he was committed to ending the "tragic division of Cyprus" and urged Cypriots to do their part to support international efforts to end the dispute.

In a statement issued by the White House late on Tuesday, immediately after the unanimous approval of two resulutions by the Security Council, Clinton vowed to "take all necessary steps to support the Security Council resolutions", adding that "I am encouraged by the cooperation and engagement demonstrated by the two sides thus far in working with the UN".

The two council resolutions, among others, called on Mr. Annan to "work intensively with the two sides in Cyprus to develop a gradual process aiming to limit and in continuation significantly reduce all military forces and armaments on Cyprus".

Mr. Clinton urged "all the parties to avoid taking any steps that could increase tensions on the island, including the expansion of military forces and armaments" and expressed the belief that "1999 can offer significant opportunities to achieve progress toward a Cyprus settlement that will meet the concerns of the parties involved".

Blair : British Prime Minister Tony Blair also expressed his commitment to work for the implementation of resolution 1218.

His government "wants to see a major,sustained effort towards securing a just, comprehensive and lasting settlement in Cyprus and will work itself, and with other permanent members of the Security Council, to give complete and whole-hearted backing to this effort."

"Britain is committed to working for full implementation of this resolution." He also called on all parties "to continue to cooperate with the UN Secretary General and his deputy special representative in a constructive and flexible manner and to secure progress on the issues it identifies."

Austrian FM Schuessel : Austrian FM and president of the European Union General Affairs Council Wolfgang Schuessel called on the Greek and Turkish Cypriot sides to cooperate with the UN for achieving progress in a settlement on the island and the reduction of tensions.

He adds that "we fully support the efforts so far deployed by Ms Hercus...and hope that she will pursue them further".

Mr. Schuessel called on the two sides to continue to cooperate with the Secretary General and Ms Hercus "with a view to achieving tangible results in the areas identified in resoltuion 1218."

Cyprus gov't says UN resolutions 'positive' : NICOSIA (ANA/CNA) In its response, the Cyprus government considers two UN resolutions as positive and said they offer "new prospects" to efforts for a settlement to the protracted Cyprus problem and a reduction of arms on the island.

"The Cyprus government considers these two resolutions as positive because we believe they create some hopeful prospects regarding efforts to open the road on the core issues of the Cyprus problem, but mainly for the reduction of all armaments with an aim to the demilitarisation of the island," Foreign Minister Ioannis Kasoulides told a press conference yesterday.

He made special reference to the Russian stance at the UN Security Council, which apparently assisted the unanimous adoption of the two resolutions.

Mr. Kasoulides called a press conference to comment on the two resolutions, regarding the renewal of the mandate of the UN peacekeeping force in Cyprus (1217/98) and on UN Secretary General Kofi Annan's good offices mission here (1218/98). A UN force has been on Cyprus since 1964.

The Cypriot foreign minister underlined that "we know the Turkish side well and we know the history of the Cyprus problem, but at the same time we have the obligation to take any opportunity, when it is created".

Mr. Kasoulides said the Greek Cypriot side has to "work positively and constructively whenever the chance arises, hoping it will bear fruit".

Efforts to settle the Cyprus problem reached a stalemate after the Turkish Cypriot side, in defiance of UN resolutions, demanded recognition of the illegal regime unilaterally declared in the areas of the island occupied by Turkey in 1974.

Referring to resolution 1217, he welcomed the reaffirmation that "a Cyprus settlement must be based on a single citizenship, with its independence and territorial integrity safeguarded and comprising two politically equal communities as described in the relevant Security Council resolutions, in a bicommunal and bizonal federation".

Mr. Kasoulides pointed out that this reaffirmation is important in view of the Turkish side's demand for a confederation of two states in Cyprus.

Regarding resolution 1218, Mr. Kasoulides noted that the Security Council requests the UN chief to work intensively with the two sides for a settlement in Cyprus and the reduction of the two sides for a settlement in Cyprus and the reduction of arms, and does not restrict itself to urging the two sides to work to this event, as in previous UN resolutions.

He pointed out that for the first time it calls upon the two sides to show compliance with these objectives, cooperating fully with the UN secretary general.

Commenting on a statement issued by Mr. Clinton, Mr. Kasoulides said "it creates some new hopes for 1999".

He pointed out that the US president reiterates his willingness to work towards a settlement in Cyprus.

Mr. Kasoulides acknowledged that similar statements were made by the US president in the past, but underlined that "in this statement he expresses the US government's will to take all necessary steps to support a sustained effort to implement UN resolut ion 1218".

The foreign minister refrained from commenting on the issue of the Russian- made S-300 missile system ordered by the government, noting it will be discussed today at a meeting of the National Council, the top advisory body to the president on the Cyprus question.

Asked if the government position on the S-300 has changed in view of the two UN resolutions approved, Mr. Kasoulides said the official position will be outlined today.

He said the two resolutions, the content of discussions held in Athens between President Clerides and Premier Costas Simitis and Mr. Clinton's statement will be put before the political party leaders.

The government has said it would reconsider its decision to deploy the defence missile system if substantive negotiations on the Cyprus issue get underway or if talks on the reduction of tension and arms, leading to demilitarisation, begin and are on a good path.

Russian ambassador : Russian ambassador to Cyprus Georgi Mouratov described the two resolutions as satisfactory and expressed the hope they will give a push to a settlement here.

"We anticipate and wish that these resolutions will give a positive push to the settlement of the Cyprus problem on the basis defined in all previous Security Council decisions", Mr. Mouratov said yesterday.

Asked where the Russian-made S-300 defence missile system ordered by the Cyprus government will be deployed, because of the press reports suggesting they will be taken to Crete, Moscow's ambassador said this issue was not discussed at his meeting yester day with Cypriot Undersecretary to the President Pantelis Kouros with whom he exchanged views on the resolutions.

Turkish response : ANKARA (ANA - A. Abatzis) - The UN Security Council's decision to extend the UN peacekeeping force's mandate lacks validity, according to Ankara, because "it is not based on an agreement between the two sides."

An announcement by the Turkish foreign ministry yesterday criticised the Security Council because it "took the decision at the consent of the Cypriot government."

The announcement said that the issue of the peacekeeping force is technical and that "despite this fact, certain positions concerning the resolution of the Cyprus problem are also referred to in the relevant decision."

These positions have no validity according to Ankara, because they are not based on an agreement between the two sides.

Lastly, the announcement calls on the Security Council to take into consideration the proposal made by Turkish Cypriot leader Rauf Denktash on the establishment of a confederation in Cyprus.

DHKKI : Democratic Social Movement(DHKKI) leader Dimitris Tsovolas stressed that the UN resolutions and Mr. Pangalos' statements on the issue are unacceptable.

He assessed that both the resolutions and statements are "part of the approach to cancel the deployment of the S-300 missiles on Cyprus."

He added that the UN resolutions equate the victim with the assailant and is moving the process in the direction of the missiles' non-deployment.

Athens News Agency

[02] Markets remain positive despite holiday lull

Athens 24/12/1998 (ANA)

According to assessments by banking officials, this situation is expected to continue until the end of the year without any considerable changes occurring.

Assessments made by the largest investment banks, such as Morgan Stanley and Credit Swiss First Boston, agree that the Greek market continues to be very attractive in light of the country's projected participation in Economic and Monetary Union (EMU). In a recent report, CSFB predicts that the Greek economy has a 95 per cent chance of joining EMU in 2001. Regarding bonds, the report stresses that the Greek market has many similarities with the Italian one and proposes investment in longterm titles with a fluctuating interest rate. It also adds that taxation on bonds may be abolished.

The prices of most securities yesterday remained at Tuesday's levels with only slight upward or downward trends, while the volume of transactions reached 9.5 billion drachmas. The price of the 15-year bond reached 106.30 and of the 10-year 111.20-111.60 , while that of the seven-year bond increased slightly, reaching 108.30.

Rates in the interbank market remained unchanged for most periods, despite the liquidity the Bank of Greece absorbed in its intervention.

The Bank of Greece accepted 14-day deposits from banks amounting to 200 billion drachmas, meeting 54.49 per cent of demand. Despite this intervention, however, the National Bank's overnight interest rate reached 11.70 per cent.

No notable transactions took place in the currency market and as a result the parities of most foreign currencies showed only a marginal change. Consequently, both the ECU and the dollar closed at lower levels at the fixing rate yesterday than on the pr evious day, with the ECU valued at 329.560 drachmas and the dollar 280.330. On the contrary, the German mark increased slightly and reached 167.900 drachmas.

Athens News Agency

[03] Greek stocks in year-end rally

Athens 24/12/1998 (ANA)

The index ended 2.50 percent higher to 2,605.87 points in extremely heavy turnover of 89.7 billion drachmas. Volume was 16,830,000 shares.

Traders said foreign institutional investors were active buyers with focus on blue-chip stocks like National Bank, Alpha Credit Bank, Ergobank and Hellenic Telecoms.

Sentiment was improved following a substantial drop in bond yields on Tuesday and news of a stock split by National Bank of Greece next month.

Sector indices scored gains. Banks soared 3.38 percent, Leasing rose 2.62 percent, Insurance ended 2.59 percent up, Investment gained 1.43 percent, Construction rose 0.85 percent, Industrials ended 1.03 percent up, Miscellaneous increased 1.68 percent and Holding rose 1.29 percent.

The parallel market index for small cap companies bucked the trend to end 0.29 percent down.

Viosol, Thessaliki, Hellenic Telecoms and Eskimo were the most heavily traded stocks.

The FTSE/ASE 20 index surged 3.05 percent to 1,637.7 points. Broadly, advancers led decliners by 151 to 95 with another 21 issues unchanged.

Aspis Bank, Infoquest, Korinth Spin Mills and Delta Dairy hit the daily 8.0 percent limit up, followed by Alcar-Aemet, Britannia, Viosol and Ippotour which scored big percentage gains.

Eskimo, Intertyp, Remek, Desmos, Athinea, Etma, General Warehouses and Chalyps Cement suffered the heaviest losses.

Epiphania-Intertyp launched 3,817,500 new common shares in the market following their merger.

National Bank of Greece ended at 58,000 drachmas, Ergobank at 30,300, Alpha Credit Bank at 28,605, Ionian Bank at 14,965, Hellenic Telecoms at 7,115, Delta Dairy at 3,877, Intracom at 12,340, Titan Cement at 19,930, Hellenic Petroleum at 2,190 and Minoan Lines at 6,355.

Athens News Agency

[04] ANEK Lines IPO 56 times oversubscribed

Athens 24/12/1998 (ANA)

ANEK Lines was seeking listing on the Athens Stock Exchange through issuing of 348,000,000 shares.

A total of 27 banks and brokerage firms acted as underwriters to the deal led by Bank of Piraeus, National Bank and Commercial Bank.

Athens News Agency

[05] RTRS-Fitch IBCA gives Commercial Bank a 'BBB' rating

LONDON 24/12/1998 (Reuters/ANA)

Athens News Agency

[06] Bourse approves share capital increase, listing for two firms

Athens 24/12/1998 (ANA)

In addition, Pantechniki S.A. will issue 6,863,000 new common registered shares, Elfico S.A. will issue 377,825 new common shares and 94,825 preferred new shares, while ETBA will issue bank bonds in the exchange.

Athens News Agency

[07] New fixing method by Bank of Greece

Athens 24/12/1998 (ANA)

According to a circular publicised by the Bank of Greece yesterday, the method is determined by which the Bank of Greece's intervention in the exchange market will be brought about, while the way with which exchange transactions will be conducted betwee n banks and their customers is also described.

The euro will be included on the table of currencies being negotiated at the fixing session and the national currencies of member-states adopting the euro as a single currency, namely those participating in Economic and Monetary Union, will be removed, as well as the European Currency Unit (the ECU) which will be converted into the ratio of 1 ECU for 1 euro.

At the end of the banks' session for determining official foreign exchange rates (fixing), the Bank of Greece, in the presence of representatives of the banks, will determine the average prices of euro zone currencies as against the drachma on the basis of the resulting official price between the drachma and the euro in conjunction with the irrevocable prices of these currencies as against the euro and as these prices will have been locked as at January 1, 1999.

At the end of the session and on completion of the process, the bulletin of official foreign exchange prices as against the drachma will be issued, as well as the bulletin of average prices of euro zone currencies as against the drachma.

Moreover, the Bank of Greece's Monetary Policy Council has decided to activate as of January 1, 1999 the operational regulation for the Payment Order Settlement System in euro, the "Euro-Ermis." With this system, banks operating in the country will be able to carry out payments in euro with its value on the same day of payment in all European Union countries.

Athens News Agency

[08] Moody's examining upgrade of Eurobank's rating

Athens 24/12/1998 (ANA)

According to a Moody's announcement issued yesterday, the firm is reassessing Eurobank due to its recent purchases of Cretabank and the Bank of Athens and especially the buy-out by Deutsche Bank of 10 per cent of Eurobank.

Moody's said it believes the Eurobank's diversification and franchise expansion, together with the new strategic association with Deutsche Bank will place Eurobank in a much stronger position to compete locally in the evolving and highly competitive Gre ek market.

With total assets of 1.7 trillion drachmas (US$5.7 billion), Eurobank is currently the second largest private bank in Greece.

Athens News Agency

[09] National Bank shareholders to consider four-way split

Athens 24/12/1998 (ANA)

According to the annoucement, shareholders must deposit their shares at any National Bank branch or the Loans and Deposits Funds by Jan. 8.

The bank added that shareholders have the right to appear in person or send a representative to the assembly.

Bank executives noted that the proposed split aims to make the shares affordable to the average Greek family, since National's share price currently stands at 58,000 drachmas, while after the split it is estimated to drop to 14,500 drachmas.

Athens News Agency

[10] Athens Foreign Exchange

Athens 24/12/1998 (ANA)

Parities in Drachmas

Banknotes            Buying  Selling
US Dollar            278.087 284.535
Can.Dollar           179.373 183.532
Australian Dlr       171.289 175.260
Pound Sterling       466.399 477.212
Irish Punt           414.656 424.270
Pound Cyprus         562.365 575.404
Pound Malta          689.555 718.287
Turkish pound (100)    0.072   0.075
French franc          49.671  50.823
Swiss franc          204.302 209.039
Belgian franc          8.076   8.264
German Mark          166.557 170.418
Finnish Mark          54.838  56.109
Dutch Guilder        147.843 151.271
Danish Kr.            43.807  44.822
Swedish Kr.           34.885  35.693
Norwegian Kr.         36.406  37.250
Austrian Sh.          23.688  24.237
Italian lira (100)    16.827  17.217
Yen (100)            239.727 245.285
Spanish Peseta         1.959   2.005
Port. Escudo           1.625   1.663

Foreign Exchange     Buying  Selling
New York             278.087 284.535
Montreal             179.373 183.532
Sydney               171.289 175.260
London               466.399 477.212
Dublin               414.656 424.270
Nicosia              562.365 575.404
Paris                 49.671  50.823
Zurich               204.302 209.039
Brussels               8.076   8.264
Frankfurt            166.557 170.418
Helsinki              54.838  56.109
Amsterdam            147.843 151.271
Copenhagen            43.807  44.822
Stockholm             34.885  35.693
Oslo                  36.406  37.250
Vienna                23.688  24.237
Milan                 16.827  17.217
Tokyo                239.727 245.285
Madrid                 1.959   2.005
Lisbon                 1.625   1.663

Athens News Agency

[11] Arsenis adamant over education reform, protests persist

Athens 24/12/1998 (ANA)

He expressed sorrow over secondary teachers' (OLME) opposition to two amendments to the law that he announced on Tuesday.

Mr. Arsenis also said the ministry will provide, after the holidays, bulletins on the material for the June examinations and added: "If a student follows classes normall, he will feel prepared".

In a related development, students continued their protests yesterday by blocking the Athens-Lamia highway and downtown Athens streets, causing traffic problems. They vowed to continue their protests after the holidays.

Meanwhile, students' committees decided to hold rallies in Athens and Piraeus on Jan. 15.

Athens News Agency

[12] CD with ecclesiastical hymns released by Archdiocese of America

Athens 24/12/1998 (ANA)

The CD, the first of its kind, contains the divine liturgy in its entirety, plus selected Orthodox hymns and is now available through the office of youth and young adult ministry at 8 East 79th Street, New York, NY 10021, by phone on (212) 774-0297 or by email at [email protected]

Sailings of ferry boats in the northern and central Aegean were banned yesterday due to gale force winds.

As of 4 p.m., no vessels were allowed to sail from Rafina to the islands of the Aegean or from Piraeus to Hios and Lesvos.

Athens News Agency

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