Athens News Agency: Daily News Bulletin in English, 99-01-09

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

CONTENTS

[01] PM confident of Greece's EMU accession

[02] Consumer price inflation drops to 3.9 pct in December

[03] New privatisation tender called for Ionian Bank

[04] Stocks nose up in heavy trade, hit new record

[05] Intracom signs key research contract with MIT

[06] Demetriadis Textiles turns to financial services

[07] National Bank of Greece opens branch in Albania

[08] Energy and sustainability congress to be held in Athens

[09] Commission ratifies report on assessments regarding structural fund programmes

[10] Karamanlis tours southern Albania

[11] Initiative to reopen Halki by Greek Orthodox Archdiocese of America

[12] NAPC officially informs gov't of Prinos' shutdown

[13] Papantoniou cites ideas of finding strategic investor for Olympic

[14] Agreem ent signed for 10 Canadair fire-fighting aircraft

[15] Major investment in pipe manufacturing sector by Viohalko subsidiary

[16] Bitros share capital increase approved

[17] Athens bourse-accredited brokes post 28.2 trillion drachmas in '98 turnover

[18] Athens foreign exchange

[01] PM confident of Greece's EMU accession

Athens, 9/1/1999 (ANA)

"Greece will enter EMU on its own strength, on an equal basis, without begging, without negotiating from a position of weakness, but making its presence felt in the hard nucleus of Europe," Simitis said in an address to the ruling PASOK party's central committee.

The committee is meeting to discuss three proposals submitted for PASOK's national congress scheduled for March.

"EMU however is not a panacea because there will still be problems, but it will provide a more stable base for a more just society," Simitis said.

The premier said it was up to Greece itself to make the most of EMU and proceed with investments which created opportunities for the future in a society characterised by justice and solidarity.

"For this reason, general elections in 2000 will not seal the country's entry to EMU but rather mark a new starting point," he added.

Simitis launched a stinging attack on opposition parties and singled out the main opposition New Democracy (ND) party for particular criticism.

"Today, PASOK is not simply facing an opposition which acts in bad faith, but the worst kind of opposition," he said.

The tactic adopted by ND, the premier continued, is "PASOK is working to put the country in EMU and we will come along afterwards and reap all the benefits".

"But they are completely in the dark," Simitis added, describing ND's leadership as "image-makers capable of destroying in a few months all that has been gained in recent years."

Simitis accused ND leaders of wasting their time with verbal attacks on the government for mass consumption.

"They have nothing beneficial to offer, either now or in the future, and the people understand this very well," Simitis said.

The premier attributed recent labour unrest to "groups of workers which exploit their key position in order to impose their views," citing the examples of customs officers and Olympic Airways pilots.

"They do not consider the social cost and their stance is the result of a sick and failed perception of a State which liberally gives hand-outs," Simitis said.

Skandalidis: Addressing the meeting, PASOK Secretary Costas Skandalidis outlined the basic features of the party's new profile, by presenting three executive bureau recommendations on ideology, political positions and the party's charter.

He stressed that PASOK remained a "patriotic, progressive and socialist party" and that the founding declaration of Sept. 3, 1974 was still the movement's "compass".

The party's main principles, he said, remain unchanged.

Skandalidis also touched upon the issue concerning political alliances, stressing that a convergence of progressive forces should be of a strong social nature which should not be "exhausted in the distribution of posts and offices."

Venizelos: Culture Minister Evangelos Venizelos told the meeting that PASOK's congress was the most "appropriate chance" for a fresh composition and promotion of PASOK's policy.

He added that as the ruling party's congress was associated with June's Euroelections, it should become a spring-board to elevating PASOK as the first party.

Tsovolas: Democratic Social Movement (DHKKI) leader Dimitris Tsovolas, commenting on the prime minister's speech, said Simitis was "vainly trying to present the conservative 'new PASOK' as a progressive party."

"Parties that set the improvement in figures as a national dream, while ignoring the thousands of unemployed; the collapse the welfare state and social exclusion are not progressive," Mr. Tsovolas said.

Athens News Agency

[02] Consumer price inflation drops to 3.9 pct in December

Athens, 9/1/1999 (ANA)

Inflation has been the hardest nut for the government to crack in order to meet its target of entry into economic and monetary union (EMU) by January 1, 2001.

The minister called on industry and commerce to maintain their contribution to the anti-inflation drive begun last year by freezing or lowering prices.

"A drop in prices has now become the responsibility mainly of business, which must contain prices and freeze profits so that inflation may fall to 2.0 percent at the end of 1999, thus ensuring the country's entry into EMU, " he told a news conference.

Inflation was likely to continue its decline in the first half of the year, allowing the fall in interest rates to accelerate in the second half.

Mr. Papantoniou said that the new year augured well for the attainment of EMU targets, but complacency could jeopardise gains so far, especially in inflation and rates on long-term state securities.

In addition, he announced that the rate of increase of government revenue in 1998 was 13.6 percent from the original target of 10.7 percent, resulting in a budgetary surplus of 186 billion drachmas.

The minister repeated that the government would to some extent ease the tax burden in the budget for 2000 in measures that would aid low and middle incomes.

Consultations with interested parties would begin at the end of March, he said.

Inflation drop, budgetary surplus fuel drachma: Mr. Papantoniou's announcement of December's falling inflation rate and budgetary surplus for 1998 fuelled the drachma against the euro yesterday after the central bank's daily fix.

The euro was 324.100 drachmas at the fix and then around 323.75 drachmas in late trade on a flurry of drachma demand.

The central did not move to curb the rampant drachma, only buying around five million euros at the fix.

The secondary bond market brushed off the news with prices staying flat.

Athens News Agency

[03] New privatisation tender called for Ionian Bank

Athens, 9/1/1999 (ANA)

Under the two-phase privatisation tender, non-binding bids for the purchase of a 51 percent equity stake in Ionian Bank must be submitted by February 8.

In the first phase, investors will receive a report by J.P. Morgan, the US investment bank acting as consultant to the sale, containing confidential data on the bank's finances.

In the second phase, bidders will submit final bids accompanied by letters of guarantee, and details of the sale's timescale will be announced.

National Economy and Finance Minister Yiannos Papantoniou later estimated that the sale would be completed in March.

Bank of Piraeus has expressed interest in buying the controlling stake in Ionian Bank. Banking sources expect Eurobank and Alpha Credit Bank also to take part in the tender.

Ionian Bank is the fourth largest commercial bank in Greece on the basis of assets, and the fifth in terms of market value.

On June 30, 1998, its network included 222 branches around the country, 276 automated teller machines, and two branches abroad.

Ionian Bank handles a range of financial services through its subsidiaries Ionian Mutual Funds, Ionian Invest, Ionian Leasing, Ionian Securities and Ionian Finance. Its other subsidiaries are Ionian Hotels and Ionian Education.

Athens News Agency

[04] Stocks nose up in heavy trade, hit new record

Athens, 9/1/1999 (ANA)

The general index ended 0.09 percent up at 3,003.54 points reversing an early correction caused by profit-taking. The index ended the first trading week of the year with a 9.72 percent gain.

Traders said buying interest focused on medium sized stocks, and metallurgical companies in particular.

Turnover was heavy at 108.7 billion drachmas on volume of 18,303,000 shares. The week's average daily turnover totalled 104.9 billion drachmas, up from 93 billion the previous week. Sector indices were mixed. Banks rose 0.52 percent to stand 10.64 perce nt up on the week, Leasing fell 1.28 percent but was 17.62 percent up on a weekly basis, Insurance ended 1.0 percent up, Investment ended 0.13 percent higher, Construction increased 0.66 percent, Industrials fell 0.06 percent, Miscellaneous soared 4.24 pe rcent for a 11.58 percent weekly gain, and Holding plunged 4.30 percent.

The parallel market index ended 0.45 percent off, and the FTSE/ASE-20 index gained 0.07 percent to finish at 1,910.26 points.

Of 279 shares traded, advances led declines at 135 to 120 with 24 remaining unchanged.

National Bank of Greece closed at 70,400 drachmas and Hellenic Telecommunications Organisation at 8,500 drachmas.

Hellenic Telecommunications Organisation, Teletypos, Mytilineos and Panafon were the most heavily traded stocks.

Contributing to euphoria this week was optimism by foreign investors that Greece will meet European Union convergence criteria in 1999. In addition, consumer price inflation ended the year at 3.9 percent, interest rates are declining, higher profitabil ity is being shown by listed companies, the government has stated its resolve to carry out its privatisation programme, and market liquidity is high.

Analysts also noted that despite its record rally, the general index's P/E ratio remained relatively low at 22 percent compared with 27 percent in Portugal, 24 percent in Spain and 26.3 percent in Italy.

Athens News Agency

[05] Intracom signs key research contract with MIT

Athens, 9/1/1999 (ANA)

Athens News Agency

[06] Demetriadis Textiles turns to financial services

Athens, 9/1/1999 (ANA)

Buying a 72 percent equity stake in Demetriadis Textiles for 947 million drachmas were a group of companies and businessmen led by M.H. Media Productions Holdings Ltd, represented by entrepreneur Minos Kyriakou, the owner of Antenna TV.

The other companies in the group are the listed Mytilineos Group of Companies, whose main activity is metals trading, and LFG Capital Management Ltd, which handles financial derivatives on the Chicago bourse, and is represented by Linnco Europe Ltd.

Both companies acquired stakes of more than 10 percent of the total.

Remaining small stakes were acquired by individual businessmen.

The shares were transferred yesterday by their owners, members of the Theoharakis family. Vassilis Theoharakis will retain some of his shares.

Demetriadis' share showed the highest returns in the Athens bourse in the period October 12-January 7, up 708.96 percent.

Athens News Agency

[07] National Bank of Greece opens branch in Albania

Athens, 9/1/1999 (ANA)

It is the bank's third branch in the neighbouring country.

National Bank of Greece, a blue chip on the Athens bourse, is carrying out a policy of expansion in the Balkans and eastern Mediterranean.

Athens News Agency

[08] Energy and sustainability congress to be held in Athens

Athens, 9/1/1999 (ANA)

Opening the congress is European Union Energy Commissioner Christos Papoutsis. Among Greek officials invited to attend are Development Minister Vasso Papandreou, Public Works, Town Planning and Environment Minister Costas Laliotis, and Transport and Co mmunications Minister Tassos Mantelis. Further information is available from the European Commission's office in Athens.

Athens News Agency

[09] Commission ratifies report on assessments regarding structural fund programmes

BRUSSELS, 9/1/1999 (ANA - P. Pantelis)

The report reports considerable achievements in the implementation of programmes in many member-states.

On the section regarding Greece, construction of the Athens-Thessaloniki motorway is mentioned for transport. Regarding diversification of energy sources, it said that a new natural gas distribution network has already been created in Greece.

Lastly, referring to the environment, it said that considerable improvements have been achieved in the country regarding water supply systems.

Athens News Agency

[10] Karamanlis tours southern Albania

Athens, 9/1/1999 (ANA)

He was received by Archbishop Anastasios of Tirana and All Albania and local officials.

During his visit to Livadia and Aliko near Sarande, Karamanlis told local people that the Greek state had so far not lived up to the expectations of the ethnic Greek minority in Albania.

"Efforts have been made, but they have been neither satisfactory nor effective," he said.

Karamanlis said the good relations between Greece and Albania would not only benefit the greater region but also help the ethnic Greek minority in the neighbouring country.

The ND leader praised Anastasios for his efforts in keeping the Orthodox faith alive in Albania.

In Aliko, Karamanlis had a brief meeting with Albania's Transport and Public Works Minister Iglit Souli.

Athens News Agency

[11] Initiative to reopen Halki by Greek Orthodox Archdiocese of America

NEW YORK, 9/1/1999 (ANA - M. Georgiadou)

The announcement was made by Archbishop of America Spyridon during a press conference here yesterday.

The Archbishop stressed that apart from the Greek Orthodox faithful in the US, the initiative will expand to garner support from all Orthodox Churches, among others.

To achieve this important target, he added, all means will be used to mobilise the large US society.

Athens News Agency

[12] NAPC officially informs gov't of Prinos' shutdown

Athens, 9/1/1999 (ANA)

NAPC informed the government that within 90 days after receipt of the notice, operation of the oil-field would be terminated. NAPC said oil reserves at the Prinos site are not commercialy viable due to high operational costs, a drop in production and pa rticularly low crude oil prices worldwide.

NAPC last month forwarded termination notices to its entire workforce.

Athens News Agency

[13] Papantoniou cites ideas of finding strategic investor for Olympic

Athens, 9/1/1999 (ANA)

Mr. Papantoniou said final decisions regarding OA will depend on the condition of the state-run carrier itself, as well as on the stance of employees, whom he accused of pressuring for "irrational benefits."

"What is currently going on in the company at present shows a sick climate of pressures for irrational benefits which are undermining its future," he said.

Cutback in flights: In a related development, an OA flight to Tel Aviv and another two domestic flights were cancelled yesterday morning as management and pilots continued to lock horns over staffing and wage demands.

OA management, meanwhile, announced changes to the airline's flight schedule up to Jan. 31, aimed at limiting the repercussions from the pilots' refusal to work overtime.

According to the new schedule, the number of cancellations will be between two and five per day for a total of approximately 110 flights.

The cancellations mainly affect destinations for which there is less passenger demand, so as to ensure the least impact on the airline's receipts.

OA's main international destinations remainly largely unaffected.

OA's subsidiary, Olympic Aviation will step in to make up for some OA cancellations, while Macedonian Lines will be scheduling additional flights to destinations in the Balkan countries and eastern Europe.

OA management is also apprehensive over the reaction by pilots, fearing pilots will call in sick en masse.

OA pilots are refusing to work overtime in order to press demands, including the hiring of more flight personnel. The move has caused cancellations and long delays to OA's domestic and international flights.

Transport and Communications Minister Tassos Mantelis said the demands were "illogical and would not be met".

In addition, Mr. Mantelis also said that a pilot who refused to make a scheduled stop in Thessaloniki over the weekend, leaving 86 passengers stranded in Athens, had been suspended from flying pending the completion of an administrative inquiry.

Athens News Agency

[14] Agreem ent signed for 10 Canadair fire-fighting aircraft

Athens, 9/1/1999 (ANA)

The agreement implements a decision taken by the Government Council for Foreign Affairs and Defence (KYSEA) after last summer's catastrophic forest fires throughout Greece.

The cost of the aircraft is more than 78 billion drachmas, which will cover also spare parts, ground equipment and crew training. The agreement contains an option for the purchase of a further five aircraft.

The Canadair 415 GR has a maximum speed of 375 kph and on a normal mission where a fire is up to 10 kilometres from the source of water, they are capable of dropping 10 loads of water every hour.

The first aircraft will be "delivered shortly" and the other nine between the summer of 1999 and 2001, according to the government.

Athens News Agency

[15] Major investment in pipe manufacturing sector by Viohalko subsidiary

Athens, 9/1/1999 (ANA)

According to press reports, the company aims to purchase a total of 100 hectares for construction of steel pipe and beam plant based on new European Union standards.

Production will be funneled into the domestic and regional market.

According to the company, the investment will proceed in two separate phases, the first being a 4.3-billion-drachma beam-production unit, already approved by the development ministry, while the second will be a 29.3- billion-drachma investment in pipe ma nufacturing and infrastructure, which is awaiting approval by relevant agencies.

The company has contracts for pipe deliveries with British Petroleum (BP) as well as a Mobil and Shell joint venture.

Athens News Agency

[16] Bitros share capital increase approved

Athens, 9/1/1999 (ANA)

A total of 3,407,040 ordinary registered shares will be issued, of a face value of 500 drachmas each and a sale price of 1,300 drachmas. The total revenues from the issue will amount to 4.4 billion drachmas.

The new shares will be provided for the old shareholders with the right of preference and at a rate of six new shares for every 10 old ones.

During its meeting yesterday, the board of Bitros decided that as of Jan. 12, 1999 the shares will be negotiated at the Athens Stock Exchange without the right of participation in the share capital increase.

The right of preference in the equity capital increase will be exercised on behalf of the company's shareholders from Jan. 20 until Feb. 23.

Athens News Agency

[17] Athens bourse-accredited brokes post 28.2 trillion drachmas in '98 turnover

Athens, 9/1/1999 (ANA)

According to the Federation of Athens Stock Exchange Members (SMEXA), first in the classification of brokerage firms according to turnover (after the deduction of "packages" and repurchasing agreements) was Sigma, belonging to the Bank of Piraeus group, with transactions amounting to 1.45 trillion drachmas and a 6.3 per cent stake in the market.

The brokerage firms that follow are Alpha, belonging to the Alpha Credit Bank group, with 1.34 trillion drachmas (5.9 per cent), Ethniki with 1.16 trillion drachmas (5.1 per cent), Telesis with 1.11 trillion drachmas (4.9 per cent) and Midland-Pantelaki s with 1.02 trillion drachmas (4.5 per cent).

Regarding the classification of brokerage companies in the month of December 1998 according to the value of transactions carried out after the deduction of "packages", Sigma and Ethniki are in first and second place with turnovers of 150 billion drachma s and 149.2 billion drachmas respectively.

The turnover of the 65 brokerage companies in December amounted to 2.6 trillion drachmas without "packages" and 3.7 trillion drachmas with the "packages."

Athens News Agency

[18] Athens foreign exchange

Athens News Agency

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