Athens News Agency: Daily News Bulletin in English, 99-01-05

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

CONTENTS

[01] Stock market powers ahead, welcomes launch of euro

[02] Bourse likely to rank as developed market in first quarter

[03] Inflation to slide in 1st half of 1999, rates in second half

[04] Money supply grows 5.6 pct in November

[05] Economy minister to address FPA luncheon

[06] Bank of Central Greece finishes Dr 5.5 billion share cap rise

[07] Bourse framework for listing of merchant shipping firms

[08] Thessaly farmers' groups warn of mobilisations

[09] Ionian foresees bull market for Athens bourse in '99

[10] OA pilots refuse to work overtime, meeting fails to end crisis

[11] Simitis underlines 'major effort' of 1999 for Greek economy

[12] Simitis chairs PASOK political secretariat meeting

[13] Three new ND deputies to be sworn in

[14] FYROM multinational NATO force preparations continue

[15] Tsovolas on Cyprus

[16] USS Enterprise docks in Crete

[17] NATO's Naumann in Greece

[18] Two expatriate Greeks in Swedish parliament

[19] Fishermen protest EU directive

[20] Arsenis cites extensive damages to occupied schools

[21] ``Aristeion 1999``

[01] Stock market powers ahead, welcomes launch of euro

Athens, 5/1/1999 (ANA)

The general index ended a spectacular 6.71 percent higher at 2,921.28 points, breaking the previous record of 2,825.52 points on July 21, 1998.

Turnover was 106.8 billion drachmas reflecting strong buying interest by foreign institutional investors in blue chip stocks, particu-larly banks and industrials. Sector indices scored major gains.

Banks soared 7.59 percent to break the 6,000 level for the first time ever.

Leasing rose 4.24 percent, Insurance jumped 5.17 percent, Investment surged 6.45 percent, Construction increased 4.67 percent, Industrials soared 6.10 percent, Miscellaneous ended 4.97 percent up and Holding climbed 6.27 percent.

The parallel market index for small cap companies ended 3.42 percent higher, and the FTSE/ASE 20 index ended 7.18 percent up at 1,848.01 points.

Broadly, advancers led decliners at 241 to 22 with another 14 issues unchanged.

Metka, Mytilineos, Viosol and Hellenic Telecommunications Organisation were the most heavily traded stocks of the day.

Metka, National Bank of Greece, Commercial Bank of Greece, Ergobank, Bank of Macedonia-Thrace, Alpha Credit Bank, Terna, Britannia, Delta Dairy, Titan and Intracom all hit the day's 8.0 percent limit up.

Desmos, Viosol, Giannousis, Parnassos, Tasoglou, Benroubi, Mosholios Chemicals and Ergas suffered the heaviest losses.

National Bank of Greece ended at 68,040 drachmas, Ergobank at 34,992, Alpha Credit Bank at 31,557, Ionian Bank at 15,900, Hellenic Telecommunications Organisation at 7,890, Delta Dairy at 4,245, Intracom at 13,770, Titan Cement at 23,220, Hellenic Petro leum at 2,425 and Minoan Lines at 6, 590.

Drachma, bonds perky on start of euro: The drachma emerged markedly stronger on the euro's first trading day and bond prices showed gains, dealers said yesterday.

Capital inflows were noted in the domestic foreign currency market as investors bought drachmas and sold mostly euros. The central bank bought around 117 million euros at its daily fix to curb the rampant drachma's rise.

At the fix, the euro finished at 327.15 drachmas, later trading at 326.71 drachmas.

Many of the capital inflows reported went into the bond market, taking prices sharply higher on the secondary market. Turnover was 56.5 billion drachmas in electronic trade.

The overnight rate in the domestic money market was around 10.50 percent, dropping in high liquidity along with rates for other terms.

Stock closes to be quoted in euros: The Athens Stock Exchange will release a daily bulletin of stock closing prices in euros, as well as in drachmas, market authorities said.

The euro prices will be calculated on the basis of the central bank's daily fix in the euro versus the drachma.

Athens News Agency

[02] Bourse likely to rank as developed market in first quarter

Athens, 5/1/1999 (ANA)

Capital International World Indices, an international stock market ratings company, was the first of its kind to be established. The US investment bank, Morgan Stanley, bought the rights to its stock market index in 1985.

The MSCI index is considered to be the most important market tool for fund managers worldwide.

Morgan Stanley forecast at the end of November that Greece would achieve all five convergence criteria in 1999 that will allow entry into economic and monetary union.

Greece's participation in the MSCI world stock market index will greatly benefit the country's economy as it will lead to bigger foreign capital inflows.

Spain and Portugal were the latest European markets to enter the MSCI index in 1997.

The basic criteria for Greece's entry into the index of developed markets are economic growth, anti-inflation policy, shrinking the state's role in the economy, creating new investment opportunities through privatisation, transparency and efficiency in domestic financial markets, growth of liquidity and capitalisation in the stock market, and confidence in the economy by foreign investors.

Athens News Agency

[03] Inflation to slide in 1st half of 1999, rates in second half

Athens, 5/1/1999 (ANA)

The six-monthly report noted that although major progress had been made in lowering public deficits in recent years, the deficits of insurance funds were holding back fiscal restructuring in the public sector.

The report called for immediate measures to achieve a permanent restructuring of the country's social insurance system.

It also said the hard drachma policy would continue in the next two years.

The drachma's rate against the euro is expected to stabilise around its central parity of 353.109 drachmas per euro from 2000 when inflation is expected to fall to 1.5 percent.

The hard drachma policy is necessary to lower inflation below 2.0 percent at the end of 1999, the report said.

In addition, monetary policy will still focus on combatting inflation this year.

Incomes policy, both in the public and the private sectors, will remain strict, bringing a real average wage increase of 1.5 percent in 1998 and 1.6 percent in 1999.

Unemployment is expected to remain at high levels in the next few years despite an anticipated speed-up in the rate of GDP growth in the same period.

The unemployment rate is forecast at 10.1 percent in 1998 from 10.3 percent in 1997, falling to 9.8 percent in 1999 and 9.5 percent in 2000.

The growth of gross domestic product is forecast at 3.8 percent in 1998, 3.7 percent in 1999 and 3.9 percent in 2000.

Minister sees rate cut bringing lower state spending: The sharp rate cut expected in the second half of the year is to greatly increase the government's fiscal leeway by reducing expenditure on debt servicing, National Economy and Finance Minister Yiannos Papantoniou said yesterday.

In turn, the savings would enable the government to make concessions to the public, Mr. Papantoniou told Flash, an Athens radio station.

He repeated the government's pledge to ease taxes for low and middle wage earners in the budget for 2000 that may also include index-linked tax brackets. Consultations with businesses and the public on the tax changes would begin in the first quarter , as already announced by the government.

More measures also would be taken to aid sections of the population including the unemployed, pensioners on low incomes and working mothers, Mr. Papantoniou said.

National elections would be held at the scheduled time in 2000, he added.

He also cautioned that optimism about the domestic economy linked to the euro should not lead to complacency and jeopardise the gains made.

"It would be really foolish to lose everything after such effort, such hard work," Mr. Papantoniou said.

"The point is not merely for inflation to fall to 2.0 percent in May or June, but to stay there for 12 months."

At the same time, the economic climate needed to secure entry into economic and monetary union by January 1, 2001 would be achieved this summer, sooner than expected, he said.

Finally, the drachma's parity to the euro would hold steady around 330 for quite a few months, attaining its central parity of 353 shortly before EMU entry, Mr. Papantoniou said.

Athens News Agency

[04] Money supply grows 5.6 pct in November

Athens, 5/1/1999 (ANA)

The M3 money supply index, which includes money in circulation, private deposits, repos and banking bonds, rose by 5.6 percent in November from the same month in 1997, remaining within the annual target of 6-9 percent growth set by the central bank.

M3 growth was 2.6 percent in October, reflecting the impact of an international financial crisis on capital flow, the Bank of Greece said.

The wider liquidity index M4, which includes M3 plus private investments in treasury bills, increased by 1.0 percent in November against the same month in 1997, slightly up from a 0.9 percent rise in the previous month.

Athens News Agency

[05] Economy minister to address FPA luncheon

Athens, 5/1/1999 (ANA)

Mr. Papantoniou will speak on January 27 at the Divani Caravel hotel in Athens on the domestic economy and developments in Europe.

He will also answer questions from the floor.

The luncheon begins at 1:00, and reservations are on a first-come first- served basis.

The FPA will also cut its New Year cake on January 11 at a reception due to be attended by politicians, diplomats and other officials.

Athens News Agency

[06] Bank of Central Greece finishes Dr 5.5 billion share cap rise

Athens, 5/1/1999 (ANA)

The capital boost is part of a strategy of modernisation and growth following the bank's privatisation, and unification with private sector Egnatia Bank, the statement said.

Athens News Agency

[07] Bourse framework for listing of merchant shipping firms

Athens, 5/1/1999 (ANA)

According to bourse sources, four to five Greece-based firms expressed a willingness for a bourse listing.

The bourse's draft plan requires that companies are societe anonymes, while they can be shipowners or shareholders of major shipping enterprises.

Draft regulations also require that companies listed must own or control at least seven vessels with a total capacity of at least 20,000 gross registered tonnes (GRT) and must be regularly inspected by a Greek registrar.

Athens News Agency

[08] Thessaly farmers' groups warn of mobilisations

Athens, 5/1/1999 (ANA)

Protests will begin on Jan. 15 with local rallies at prefectural offices and Agricultural Bank branches, while some local roads will be blockaded.

Later in the month the groups said they will organise local events to rally farmers' support.

Union leaders also discussed details over an upcoming meeting with Argiculture Minister George Anomeritis.

Athens News Agency

[09] Ionian foresees bull market for Athens bourse in '99

Athens,5/1/1999 (ANA)

According to the study, monthly turnover for December reached 1.74 trillion drachmas compared to 1.42 trillion drachmas in November 1999, a 23 per cent increase.

The study also noted that December's turnover increased by 184.36 per cent compared to the same month of 1997.

Athens News Agency

[10] OA pilots refuse to work overtime, meeting fails to end crisis

Athens, 5/1/1999 (ANA)

According to reports, both sides met last night at 7 p.m. for the preliminaries, with Transport Minister Tassos Mantelis present, although nothing was announced.

Leaders of OA pilots' union want more pilot appointments and are against an increase of their income tax rate. After the meeting, pilots' representatives reiterated their refusal to work overtime.

According to sources, the representatives did not put any of their demands to Mr. Mantelis, instead they listened to the minister's review of the debt- ridden national carrier's dire financial state.

The pilots' work to rule has created problems for OA services, the most notable occurring on Saturday night when an OA flight from London, originally scheduled for landing in Thessaloniki and then Athens, skipped Thessaloniki and landed directly in the Greek capital.

A delay at London's Heathrow airport led the pilot to decide to fly directly to Athens so as not to work overtime.

This resulted in a two-hour occupation of the aircraft at Athens airport by 86 passengers who had paid to travel to Thessaloniki.

The passengers were eventually persuaded to leave the aircraft by Civil Aviation representatives at around 3 a.m. and were taken to a Glyfada hotel. They flew for Thessaloniki at 7 a.m. - Xiosbank yesterday announced it will pay an annual interest rate of 9.92 per cent for its 'Alma' accounts, with interest paid on a monthly basis. For the same period, the bank's commercial credit rate will remain unchanged at 17 per cent.

Athens News Agency

[11] Simitis underlines 'major effort' of 1999 for Greek economy

Athens, 5/1/1999 (ANA)

The premier spoke last night during the annual reception hosted by the Athens Chamber of Commerce and Industry (EBEA) at a downtown Athens hotel.

"The new year started impressively, the euro is the single currency of the countries participating in Economic and Monetary Union (EMU). This is a historic change," Mr. Simitis said.

He added that for Greece this meant a major change in economic policy, as well as more investments, more employment and new conditions for development.

EBEA president Yiannis Papathanasiou was also optimistic, saying Greece will succeed in fulfilling its "European vision".

He added that the business world supported all efforts to attain this specific target.

Main opposition New Democracy spokesman Aris Spiliotopoulos stated that despite the fact that the government had ND support in attaining EMU, it had failed to proceed with required structural changes necessary for restructuring Greece's economy.

"The Greek economy, as Greek society, needs to take-off," he said in reply to reporters' questions about the economy's course after the introduction of the euro.

"We should think about the reason why we are the only country that contrary to our desire failed to be part of European unification on Jan. 1, 1999," the ND spokesman added.

On his part, National Economy Minister Yiannos Papantoniou said ND did not deserve the right to voice criticism as it had almost driven the economy to complete failure in 1993.

He further underlined that for the Greek people, EMU and the introduction of the euro meant stability in prices, low interest rates, development and more jobs.

However, the minister admitted that excessive enthusiasm and optimism prevailing over the introduction of the euro should tone down, as only "a battle has been won, but the war is still continuing."

Coalition of the Left and Progress (Synaspismos) leader Nikos Constantopoulos said that Greece needed "real development" with social cohesion, stressing that social stability and justice were the preconditions for economic success.

Athens News Agency

[12] Simitis chairs PASOK political secretariat meeting

Athens, 5/1/1999 (ANA)

No statements were made at the end of the meeting since the same issues will be discussed today at an all-day meeting of the executive bureau.

According to reports, convergence was generally achieved on the text of ideological positions, while on the proclamation's text there appears to be agreement on the structure but it will also have to be "smaller, clearer, visionary and more ideological. "

According to the same reports, Mr. Simitis expressed the view that it must not be named a new proclamation since, as he said, it must not lead to conceptions on the replacement of the inaugural proclamation of Sept. 3, 1974 but create the framework of P ASOK in the new era.

Athens News Agency

[13] Three new ND deputies to be sworn in

Athens, 5/1/1999 (ANA)

Sotiris Kouvelas, Theodoros Damianos and Ilias Kalioras will replace Vassilis Papageorgopoulos P who is assuming the post of Thessaloniki's mayor P as well as Tr. Bellou and K. Evmoiridis, who were elected as prefects of Fthiotida and Drama, respectivel y.

Another three ND deputies, N. Kakkalos, A. Papaligouras and P. Tatoulis, are expected to return to the ND Parliamentary group in about a month's time as their one-year suspension ends on Feb. 4.

Only Mr. Kakkalos has not made known his intentions concerning his return to the group, as his relations with the party's leadership has reportedly worsened.

According to sources, expelled ND member George Souflias, now an independent deputy, has made statements hinting at his return to ND, but these have met with no official reply by the party, as his associates noted.

Meanwhile, according to a close aide of ND president Costas Karamanlis, the main opposition leader is not intending to deal with such an issue at the present time. The same source said that if the issue was brought up, then everyone should expect it to close in a matter of two days.

The ND official also said ND's leadership considers that expelled deputy Stephanos Manos, a former minister, will establish a new party and that Vasilis Kontoyiannopoulos is currently holding discussions with ruling PASOK.

On April 22, ND will have 103 deputies in Parliament after the return of Gerasimos Giakoumatos, whose suspension is ending. The number excludes Mr. Kakkalos, whose intentions are not clear as yet.

Athens News Agency

[14] FYROM multinational NATO force preparations continue

Athens, 5/1/1999 (ANA)

Two large cargo vessels, one Egyptian-flagged and the other registered in St. Vincent, both belonging to French interests, unloaded vehicles and containers in the port this morning for the French contingent in FYROM.

The multinational force - 1,700 strong in the first phase - is expected to be fully deployed by mid-January. The force will be made up of troops from NATO members Germany, France, Italy, Belgium, Norway and the Netherlands.

So far, military supplies for the force have been unloaded in Thessaloniki from eleven cargo vessels, while approximately 1,200 troops have passed through the port on their way to FYROM.

Once unloaded, the supplies are transported by road to FYROM via the Evzones border post.

Greece and Turkey are participating in the force's multinational command with six officers each, since FYROM's political leadership did not want troops from the two countries in the force proper.

Athens News Agency

[15] Tsovolas on Cyprus

NICOSIA, 5/1/1999 (ANA)

The DHKKI leader arrived here for a two-day working visit.

Speaking on arrival at Larnaca airport, Mr. Tsovolas said it was a question of Hellenism "being deceived by deplorable Greek political leaderships" which, as he said, "have proclaimed Turkey a primary power in the region and have given it the right to d etermine the strengthening of the island's defences."

Replying to a relevant question, he said the missiles will not be deployed on Crete or anywhere else.

On the question of Cyprus' accession to the European Union, Mr. Tsovolas said that accession will not take place unless confederation is imposed and for this reason, he added, pressures will be intensified.

Later in the day, Mr. Tsovolas met with Cypriot Speaker of the House and Democratic Party leader Spyros Kyprianou, socialist EDEK party leader Vassos Lyssarides and New Horizons leader Nikos Koutsou. He will be meeting leaders of the other parties today .

Athens News Agency

[16] USS Enterprise docks in Crete

The battle group carrier USS Enterprise, one of the biggest warships in the US navy, arrived at the Souda Bay military base on Crete on Monday.

The Enterprise sailed to Crete after participating in US and British Gulf- based operations against Iraq last month.

The nuclear-powered attack vessel has an overall length of 370 metres and a crew of 5,500.

Its four main engines and 8 reactors enable speeds of up to 30 knots.

Athens News Agency

[17] NATO's Naumann in Greece

Athens, 5/1/1999 (ANA)

He will be received by President Kostis Stephanopoulos, National Defence Minister Akis Tsohatzopoulos and Foreign Minister Theodoros Pangalos, while he will also meet with the leadership of the Greek armed forces.

Athens News Agency

[18] Two expatriate Greeks in Swedish parliament

STOCKHOLM, 5/1/1999 (ANA - N. Servetas)

Nikos Papadopoulos, who is the Social Democrat party's first substitute deputy in the Stockholm constituency, will take the seat of Roland Larson, who resigned for health reasons.

Tassos Stafylidis was elected a deputy with the Leftist Party in last September's elections. He is already participating in a working committee of the Swedish Parliament.

It is Mr. Papadopoulos' second term of office in Sweden's parliament. He was also elected a substitute deputy in the 1994 elections and became a regular deputy in the summer of 1996.

Athens News Agency

[19] Fishermen protest EU directive

Athens, 5/1/1999 (ANA)

Fishermen are protesting Community Directive 1626, which limits the fishing zone and increases the size of the fishing nets' meshing.

A representative claimed the directive prohibits fishing in a zone of three miles from coasts.

He said fishing is allowed at a shorter distance only if the sea depth exceeds 50 metres, under the directive, but this stumbles against Greek legislation which prohibits fishing altogether at a distance less than two miles off the coast regardless of s ea depth.

He also said the directive requires the use of nets with a 20mm mesh opening as against the 14mm opening used by Greek fishermen.

He said implementation of the measure would result in a 50 per cent reduction in fish catch, since smaller sized fish such as the gildhead and the red mullet, as well as shrimp, would escape their nets, while the Turkish trawlers would continue to catch those fish and channel them to the Greek market.

The trawler owners are seeking postponement of implementation of the directive until May 31, when the fishing season ends for trawlers, and immediate commencement of procedures for its amendment or indefinite postponement.

The Union numbers more than 190 members, who own approximately 150 trawlers that supply all the fishmarkets in the country.

Athens News Agency

[20] Arsenis cites extensive damages to occupied schools

Athens, 5/1/1999 (ANA)

He said that every effort will be made to restore damages before Friday so as to allow for classes to begin on Monday as scheduled.

Furthermore, he announced that he sent a letter to Union of (public) Secondary School Teachers (OLME) proposing a meeting on Thursday to discuss the upgrading of teachers' role.

He added that his office sent copies of a letter to parents through their associations.

Prime Minister Costas Simitis also requested of officials and PASOK cadres to support the effort to re-open schools, as well as the proposed dialogue.

Athens News Agency

[21] ``Aristeion 1999``

Two publications were nominated by the culture ministry for the European literature award "Aristeion 1999", following a recommendation by a relevant committee.

The novel "Helen and Nobody" by Rea Galanaki (Agra publications) and the poetry collection "Movement and the Resurrection of Dominikos' Bodies" by Manolis Pratikakis (Nefeli publications) were nominated.

Athens News Agency

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