Athens News Agency: Daily News Bulletin in English, 99-01-16

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

CONTENTS

[01] Simitis says education reform will proceed, mass rallies around Greece

[02] Sharon visit in late February

[03] Pangalos in Bulgaria on Tuesday

[04] Finnish PM Lipponen arrives in Athens on Sunday

[05] Gov't: EU decisions on Cyprus' EU entry in force

[06] Former FM Papoulias cautions against NATO moves in Kosovo

[07] Balkan sports ministers on Rhodes

[08] New army, air force chiefs selected

[09] Schumacher in Athens for driving safety promotion

[10] Greenpeace hails banning of toys made from PVCs

[11] Inflation is hurdle to Greece's EMU entry, Deutsche Bank says

[12] Stocks end down in edgy trade

[13] Athens bourse sees volatile week

[14] Bonds jittery in Brazilian turmoil

[15] Athens bourse to adopt new rules on M & A

[16] National Bank of Greece calls new shareholders' meeting

[17] Athens Medical sees growth

[18] London-based NBGI reports profit

[19] Three-year bond auction

[20] Inform-Lykos results for '98

[21] Problems in popular art handicrafts sector detailed

[22] OTE to reduce phone card prices

[23] Ceremony for new Canadair planes

[24] IKA medical unit in Bulgaria

[25] Athens Foreign Exchange

[01] Simitis says education reform will proceed, mass rallies around Greece

The youths threw petrol bombs and stones at riot police deployed in Athens' centre. They also caused damage to public buildings and storefronts, burning two vehicles belonging to public organisations.

Meanwhile, the government again clashed with opposition parties in Parliament during the second day of a debate regarding a no-con-fidence motion against Education Minister Gerasimos Arsenis, tabled by the main opposition New Democracy (ND) party on Thu rsday, citing an "explosive situation".

Prime Minister Costas Simitis said ND's motion aimed to exploit the tension in the education sector in order to fence-off the party in the face of what he called "its threatened unity."

"You aimed to show teachers and trade unionists that this is the moment for war...There is also some war going on between you on what will happen in the Euroelections and you wanted to provide an answer," he charged, stressing that the main opposition shied away from adopting a stand on major issues, sticking only to procedural matters.

"Its programme is particularly vague and void, like a shirt that can be worn by anyone," he said.

ND leader Costas Karamanlis responded by saying the government insisted on "putting up a show of intrasigence and arrogance, refusing dialogue and encouraging confrontation."

"This shows political weakness, because it means the government cannot rise to the occasion even on an elementary level, the strength to make a concession, to engage in dialogue, to synthesise policy," he said.

He further charged the government with being completely cut-off from reality, and returned the government's charge that his party was instigating students' protests.

"Everyone knows well who taught such practices. You are the ones carrying such memories. I wish to make it clear that I am opposed to extreme forms of mobilisations, but also to calling on students to return to their classes," he said.

Finally, Mr. Karamanlis called on the prime minister "not to shift his responsibilities onto the opposition".

Tension rose when National Economy Minister Yiannos Papantoniou accused the Communist Party of Greece (KKE) of conspiring with the conservative opposition with an aim of overturning the government policy on education, and of "encouraging" vandalism and the occupation of schools.

KKE Secretary-General Aleka Papariga retorted that there was no precedent to a minister using language akin to a policeman's and undercover security officer's.

On his part, Education Minister Gerasimos Arsenis reiterated that the law on reform would be implemented, while students would not miss the academic year.

Coalition of the Left and Progress (Synaspismos) leader Nikos Constantopoulos proposed the establishment of an inter-party committee that would seek reliable procedures for dialogue, warning that the "increasing political polarisation could have explosi ve repercussions".

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas again called on the government to suspend the reform.

During the incidents yesterday, two police officers were injured and taken to a hospital for treatment, while seven persons were arrested - two for allegedly throwing firebombs.

Four bystanders were also slightly injured by stones thrown by the masked youths.

The violence resulted in chaos on the roads as traffic came to a standstill over a wide radius around the city centre.

Gov't: Government spokesman Dimitris Reppas described the march and rally as "important", but hastened to add that the demand of the majority of students, teachers and parents for schools currently being occupied to re- open was even more important, as he said.

Mr. Reppas also expressed full support for the embattled education minister and criticised opposition parties for attacking the minister simply because he was implementing a law passed by Parliament.

Former ND economy minister Stephanos Manos, now an independent deputy, said in a statement that he would vote against the motion, noting that the reforms were inadequate but contained many positive elements, the most important of which was increased emp hasis on teachers' assessment.

In Thessaloniki, a rally drew more than 4,000 protestors who changed course during their march and headed to the city's court house complex to protest the involvement of judicial authorities in the ongoing school protests.

Eggs, stones and coins were thrown at the complex, while one group of protesters also attacked reporters and motorists complaining about the march. One television reporter was slightly injured in the scuffles. Minor scuffles were also reported during the march held in Irakleio, Crete, when a group of students threw eggs at a television crew.

In Hania, another student rally turned the Hania prefectural building into a virtual battle zone, as protesters hurled eggs, stones, tubs of yoghurt, firecrackers and other items at the building.

Students attempted to enter the building to speak with Prefect Georgios Katsanevakis. As a delegation met with him, the students rallying outside began pelting the building with the objects.

The entrance to the building was set on fire, which was quickly extinguished, while many windows were smashed. Prefectural employees inside the building at the time fled to avoid being hit by flying glass, stones and the smoke from firecrackers.

The roads surrounding the prefectural building resembled a war zone, according to reports. The prefect's car was also the target of the students: the tyres were slashed, windows broken and the vehicle pelted with eggs, yoghurt and stones.

In Patra, protestors threw stones, firecrackers and eggs and damaged the central entrance to the Achaia prefectural building.

In Larissa, farmers joined about 2,500 students and teachers in a joint protests against the government's policies on education and agriculture.

Tempers flared when students marched to the town's courthouse and court employees threw glasses of water at the assembled students.

The protesters attempted to break into the court building but succeeded only in breaking windows. They later burned a European Union flag because, they said, the education reforms were being pursued in its name.

Athens News Agency

[02] Sharon visit in late February

The same sources said that a visit last week by a ruling PASOK delegation headed by Deputy Foreign Minister Yiannos Kranidiotis and PASOK executive bureau member Theodoros Tsoukatos to Israel had been "positive and fruitful".

Mr. Kranidiotis and the delegation met with Mr. Sharon and director general of the Israeli foreign ministry, Eitan Bentsur. In the talks, both sides expressed their willingness to working towards tighter bilateral relations through specific cooperation in the economic, defence, education and other sectors, the Israeli diplomatic sources said.

The same sources also said that Israel appreciated Greece's willingness to support the Mideast peace process as well as Mr. Kranidiotis' message to the Palestinians not to take any unilateral steps that may negatively affect the peace process.

The Greek delegation had also met with the head of the Palestinian negotiating delegation in talks with Israel, discussing problems and prospects for the Mideast peace process, as well as with Palestinian leader Yasser Arafat and Jerusalem Orthodox Patr iarch Diodoros.

Finally, regarding criticism by the Israeli foreign ministry over a misunderstanding after the PASOK delegation visited the Orient House in east Jerusalem, Israeli officials said after explanations were given, Israel considers the issue closed.

Athens News Agency

[03] Pangalos in Bulgaria on Tuesday

Athens News Agency

[04] Finnish PM Lipponen arrives in Athens on Sunday

He will also be received by President of the Republic Kostis Stephanopoulos. Lipponen interview: HELSINKI (ANA - E. Patouhas) - Earlier, in an interview with the ANA, Mr. Lipponen said "Finland feels solidarity for Greece."

He said that "when issues of the region are being examined it must be taken into consideration that Greece is a European Union member-state, a fact which happens to be forgotten."

Mr. Lipponen is waiting with interest to be briefed by his Greek interlocutors on developments in the Balkan and eastern Mediterranean regions, Cyprus and the course of Turkey's relations with the EU.

Mr. Lipponen believes that Greece and Finland have a series of common interests to defend in the framework of the EU, which emanate from their geopolitical position and their production activity.

"We have a common interest of great importance relating to that we need the EU's solidarity and common policy, since we are geographically in the EU's region and in a geopolitical zone in which changes and events are taking place which are upsetting the

EU in its entirety," he said.

Mr. Lipponen believes that Greece and Finland have a leading role to play in the creation of a European gas network with the former utilising energy sources of the Caucasus region and the latter those of Russia.

Referring to Cyprus' prospects of EU accession, Mr. Lipponen said he believes that the cancellation of the S-300 anti-aircraft missiles' deployment opens new possibilities for the progress of accession negotiations.

He believes that Cyprus' accession to the EU provides the preconditions for coexistence between the two communities on the island. Replying to a relevant question, Mr. Lipponen said that Finland supports Greece's proposal on resorting to the Internation al Court at The Hague on issues raised by Turkey.

Finland is preparing itself to assume the EU's rotating Presidency in the second half of 1999.

Mr. Lipponen said that the ultimate target is for the Helsinki summit in December 1999 to constitute a milestone for the EU of the new century and the new millennium.

Athens News Agency

[05] Gov't: EU decisions on Cyprus' EU entry in force

Government spokesman Dimitris Reppas made the statement when asked by reporters whether the present holder of the rotating EU presidency - Germany - might try to obstruct Cyprus' accession.

Mr. Reppas stressed that despite the obstacles which had already arisen and those which may arise in the future, Cyprus' accession would be completed within the time limits set.

Prime Minister Costas Simitis reiterated in an interview with the Spanish daily "El Pais" published on Wednesday that Cyprus' accession to the EU was independent of the political problem on the island republic.

Mr. Simitis also criticised "certain countries" - while specifically excluding Spain - for their stance on the issue of Cyprus' accession.

The premier said it appeared that these countries did not want to implement the EU's 1995 decision for Cyprus to become a full member of the EU. Replying meanwhile to a question on statements by Turkey's new prime minister, Bulent Ecevit, who spoke of t he existence of two separate states on Cyprus, Mr. Reppas said the best answer had already been provided by the United Nations with its recent resolution rejecting Turkish aspirations for the existence of two separate states on the Mediterranean island.

Athens News Agency

[06] Former FM Papoulias cautions against NATO moves in Kosovo

As the Kosovo crisis was the centre of the meeting, Mr. Papoulias stressed that a balanced solution should be acheived in diplomatic means. He added that in recent meetings he had with Yugoslav officials he ascertained that they were especially sensitiv e on a "covered" intervention by NATO. The former minister further praised the OSCE's important role in maintaining peace and in a rapproachement between the rival sides in the mainly Albanian-speaking Serbian province.

Athens News Agency

[07] Balkan sports ministers on Rhodes

He also said that upgrading the "Balkan Games" will constitute a starting point.

Mr. Fouras stressed the need for upgrading the Balkan Games, which is the main issue at the conference in which sports ministers from seven countries (with the exception of Turkey which is represented by the general director of sports since a relevant m inister has not yet been appointed by the new Turkish government) are participating.

Mr. Fouras referred to the possibilities of modernising the games and to political initiatives which must take place to have peace and cooperation consolidated between Balkan peoples.

Athens News Agency

[08] New army, air force chiefs selected

The Government Council of Foreign Affairs and Defence (KYSEA) chaired by Prime Minister Costas Simitis unanimously named Lt-Gen. Constantinos Panayiotakis, until now commander of the First Army Corps, as chief of the Army General Staff.

KYSEA also appointed Lt-Gen. (air) Dimitrios Litzerakos, until now chief of the tactical airforce, as chief of the Airforce General Staff.

National Defence Minister Akis Tsohatzopoulos welcomed the new chiefs as "excellent officers who will respond to the objectives and requirements of the ministry's policy."

The vacant posts of the new chiefs will be filled next month.

Athens News Agency

[09] Schumacher in Athens for driving safety promotion

The German driver's visit was organised by the Hellenic Automobile Touring Association (ELPA) to promote the programme "10 Seconds That Can Save Your Life".

Explaining the programme's slogan, Mr. Schumacher stressed that it took only 10 seconds for the driver and passengers of a vehicle to put on their seat belts.

Mr. Schumacher, a world champion with Benetton in 1994 and 1995 before he switched to Ferrari, said 45,000 people die in road accidents in EU countries every year.

"We must all understand just how important it is to strictly adhere to road safety rules and wear seat belts. If we all did so, some 7,500 lives would be saved in Europe annually," he said, adding that road safety lessons should be made an official part of the curriculum at primary schools in all EU countries.

After giving a number of tips to reduce the risk of injury in a road accident, Mr. Schumacher was asked if his style of driving in Grand Prix races was the best example for young drivers.

"It's a very good question. The way I drive in races has nothing to do with the way I drive on the roads. There, there are rules of safety which I observe to the letter, as everyone should. If someone breaks those rules, I believe that he should be puni shed very harshly," he replied.

The event was held at the Zappeion Hall.

Athens News Agency

[10] Greenpeace hails banning of toys made from PVCs

The decision went into force as of yesterday and was taken because the toxic pthalic compounds used in PVC products are believed to pose a serious health hazard.

In a statement expressing satisfaction, Greenpeace said the decision paved the way for a Europe-wide ban on toys made from PVC.

According to the decision of the two ministries, existing stocks of the products in question must be immediately withdrawn from retail outlets and as of June 30 any trading in them will be completely prohibited.

Citing the results of a study conducted by the Greek branch of Greenpeace which were released in June last year, the organisation said toys circulating on the Greek market contained levels of toxic substances ranging from 20 to 50 per cent.

The findings of the study showed that the toys contained high levels of toxic phthalic compounds which can cause serious liver and kidney damage.

In December last year, 15 Greenpeace members dressed as Santa Clauses sang Christmas carols outside the commerce ministry to protest the use of PVC in toys.

Although, European Commission agencies are drafting a directive aimed at protecting children from the dangers of PVC, Greenpeace has criticised the Commission for its delay, saying that while it has already forbidden the use of PVC in toys used at EU-r un daycare centres for employees' children, it had taken no action to protect the rest of the children in the Union.

Athens News Agency

[11] Inflation is hurdle to Greece's EMU entry, Deutsche Bank says

Quoted by Reuters news agency, the German bank also said that a continuing decline in interest rates was encouraging, aided by the abolition of a tax on bond interest for foreign investors, which has brought yield on the ten- year bond closer to the EMU requirement.

Also healthy were the drachma's foreign exchange parity and a decline in the fiscal deficit with convergence targets in the two areas likely to be met, Deutsche Bank said in its latest country report.

It was feasible for the domestic 10-year bond yield to drop to 5.8 percent in 1999, or even lower, Reuters quoted the bank as saying.

Keeping bond yield spreads wide against German bunds was caution by investors abroad about whether Greece would meet the EMU entry criterion on inflation, the report said.

Athens News Agency

[12] Stocks end down in edgy trade

The general index ended 0.45 percent off at 2,883.34 points, recovering an early sharp fall of 4.0 percent to end the week 4.22 percent lower. Turnover was down at 88.8 billion drachmas.

Traders said investors turned to smaller capitalisation stocks pushing several shares to the daily 8.0 percent limit up. Sector indices were mixed.

Banks fell 1.24 percent, Leasing dropped 1.45 percent, Insurance eased 1.34 percent, Investment ended 0.11 percent off, Construction rose 1.42 percent, Industrials ended 0.93 percent higher, Miscellaneous rose 1.05 percent and Holding fell 0.31 percent.

The parallel market index for small cap companies soared 6.90 percent, while the FTSE/ASE 20 index ended 1.0 percent down to 1,809.01.

Broadly, advancers led decliners by 155 to 116 with another 9 issues unchanged.

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

Levenderis, GEK, Bank of Central Greece, Lanacam, Singular, Papoutsanis, Xylemporia, Terna and Dimitriadis hit the daily 8.0 percent limit up.

Zampa, Kyriakoulis Yachts, Mouzakis, Sportsman, Macedonian Plastics, Hellenic Biscuits, Athinea and Halyps Cement suffered the heaviest losses.

National Bank of Greece ended at 63,805 drachmas, Ergobank at 34,980, Alpha Credit Bank at 30,740, Ionian Bank at 15,900, Titan Cement at 21,000, Hellenic Petroleum at 2,330, Intracom at 13,600, Minoan Lines at 6,895, Hellenic Telecoms at 7,980 and Pana fon at 8,245 drachmas.

Athens News Agency

[13] Athens bourse sees volatile week

The market largely ignored a new round of interest rates cuts by the Bank of Greece and Alpha Credit Bank and also favourable news on the inflation front.

The general index ended the week 127.14 points, or 4.22 percent down. The week's turnover totalled 487.3 billion drachmas to post a daily average of 97.5 billion, down from 104.9 billion in the previous week.

Analysts remained positive over the market's medium-term outlook, although they warn that investors will have to learn to live dangerously because of high volatility in international markets, a phenomenon likely to be repeated this year.

They also noted that the central bank's move to lower its interest rates on the day that international markets were hit by the Brazilian crisis was a sign that the domestic economy was not under threat.

Salomon Smith Barney said it expected the Greek economy's performance to exceed the European average in 1999 for the fourth successive year.

An HSBC securities universe of stocks report also expects a 20 percent rise in the Greek market's profit growth this year and a 17 percent rise in 2000, compared with 13.6 percent in Germany, 15.8 percent in France, 16.9 percent in Italy and 8.3 percent in Britain.

Credit Suisse First Boston expects listed companies' profits to rise by 15 percent in 1999 with the general index exceeding 3,500 points in the year.

Athens News Agency

[14] Bonds jittery in Brazilian turmoil

Traders said the market reflected instability in international markets following a crisis in Brazil and Asian markets.

The 10-year bond price ended at 114.05 drachmas, the 15-year at 109.20- 101.75 and the three-year bond at 104.65-103.05 to yield 1.02-7.48 percent, down from a coupon of 7.60 percent.

The finance ministry announced the auction of a new issue of three-year bonds next Tuesday and bankers expect it will be successful.

Interbank rates rose substantially reflecting a lack of liquidity in the domestic money market.

The overnight rate rose to 13.50 percent, while the one-month rate rose to 12.30 percent.

Medium-term rates remained largely unchanged.

In the domestic foreign exchange market, the euro ended at 325.10 drachmas from 325.050 on Thursday.

The Greek currency rebounded against the US dollar to 278.720 drachmas, from 279 the previous day.

Athens News Agency

[15] Athens bourse to adopt new rules on M & A

The purpose of the new rules is to block unbridled entry into the market of unsuitable firms through the acquisition of minor firms, used as vehicles for entry by non-listed companies.

The rules tighten the requirements for listed enterprises that seek a share capital rise in order to merge with a non-listed firm by absorbing it.

Among the requirements are the publication of the two companies' consolidated balance sheet in the prospectus for the share capital rise, which also has to be approved by chartered accountants.

Athens News Agency

[16] National Bank of Greece calls new shareholders' meeting

The meeting was called to decide on a share split which would cut the bank's share nominal value to 1,450 drachmas from 5,800 currently.

A new meeting was called for January 29.

Athens News Agency

[17] Athens Medical sees growth

Athens Medical-Phaliro Clinic expects its capacity in beds this year to rise to 260 beds with 30 intensive care unit beds and create new laboratories following completion of a modernisation and expansion of facilities at Nicolaou Clinic in Peristeri and Agios Eleftherios Clinic in Dafni.

Athens News Agency

[18] London-based NBGI reports profit

NBGI ranked second in the international drachma bond issues market. It was lead underwriter for 11 international corporate bond issues worth 76 billion drachmas.

A National Bank of Greece statement said that NBGI plans to open representative offices in Germany, France and Italy as part of a strategy plan to boost its institutional portfolio.

The bank also plans to open a securities firm in New York to trade Greek and Balkan securities in the US market.

Athens News Agency

[19] Three-year bond auction

The ministry also announced that on Jan. 22 it will proceed with replacing three-year bonds of the Nov. 20, 1998 issue, with a stable interest rate of 9.3 per cent with bonds of the new issue dated Jan. 22, 1999.

Consequently, the bearers of the above bonds are called on to contact the ministry on Jan. 19, namely on the day on which the new three-year bonds will be auctioned, to state the amount of bonds they wish to replace (tel. 33.38.324).

Athens News Agency

[20] Inform-Lykos results for '98

This was noted in a letter addressed by the company to the Athens Stock Exchange, adding that it intends to absorb Inform Trade S.A. in 1999, provided that relevant technical and economic processes are completed and the legal framework for the absorptio n of the companies is fully clarified.

Inform-Lykos, active in the sector of printed informatics, is planning and pursuing its internal development with new products and services of high added value in technological equipment and know-how.

At the same time, it is proceeding with the speedy implementation of its building programme anticipating two independent factory complexes having an area of 8,500 square metres and 2,000 square metres respectively.

In parallel, its two-year business plan anticipates buyoffs both at home and abroad which are part of its strategic planning and serve its targets in the long run. On the question of buyoffs, negotiations are at a stage at which officially no announceme nt is permissible, the company said.

The company's predictions for 1999 are in the region of 11 billion drachmas for its sales and 2.4 billion drachmas for the net pre-tax profits.

Athens News Agency

[21] Problems in popular art handicrafts sector detailed

Mr. Kritikos was speaking yesterday at the inauguration of the exhibition "Popular Art 1999", organised by the Union of Popular Art Handicraftsmen of Attica. He said that programmes concerning the funding of handicraftsmen will be reconsidered to enable the coverage of more businesses which did not fulfill criteria to date. Relevant dialogue had s tarted last year but was discontinued before being completed.

Mr. Kritikos said that 350 Greek handicraft units have been subsidised for investments budgeted at 1.7 billion drachmas.

Athens News Agency

[22] OTE to reduce phone card prices

The price of the 100-unit phone card will drop to 1,000 drachmas from 1,700 drachmas, while the 500- and 1,000-unit cards will be reduced to 4,200 and 8,200 drachmas, respectively, from 7,000 and 11,500 drachmas.

The announcement comes on the heels of harsh criticism over OTE's recent decision to drastically raise local phone rates and attacks by private Internet providers in Greece, who assert that the state-run telecoms utility is unfairly favouring its own In ternet provider subsidiary, OTEnet.

Athens News Agency

[23] Ceremony for new Canadair planes

Greece recently bought 10 fire-fighting "415 GR" planes.

Delivery of the 10 415 GRs, modified for the country's mountainous terrain and equipped for sea rescue in addition to forest fire-fighting, will start within a few months - one plane by the summer - and will be completed by the year 2001. The 250-millio n-drachmas contract also includes parts, ground systems and personnel training.

Athens News Agency

[24] IKA medical unit in Bulgaria

The delegation's visit to Bulgaria will take place following the recent visit by Bulgarian doctors to Alexandroupoli for briefings on the operation of new machinery the unit will provide to Bulgarian centres to combat sexually transmitted diseases.

Athens News Agency

[25] Athens Foreign Exchange

Banknotes          Buying    Selling
US Dollar          276.490   282.901
Can.Dollar         179.949   184.121
Australian Dlr     174.404   178.447
Pound Sterling     458.562   469.194
Irish Punt         409.490   418.984
Pound Cyprus       553.060   565.883
Pound Malta        685.596   714.162
Turkish pound (100)  0.072     0.075
French franc        49.165    50.305
Swiss franc        203.087   207.796
Belgian franc        7.995     8.180
German Mark        164.891   168.714
Finnish Mark        54.240    55.498
Dutch Guilder      146.344   149.737
Danish Kr.          43.319    44.323
Swedish Kr.         35.200    36.016
Norwegian Kr.       36.994    37.851
Austrian Sh.        23.437    23.980
Italian lira (100)  16.656    17.042
Yen (100)          245.550   251.243
Spanish Peseta       1.938     1.983
Port. Escudo         1.609     1.646

Foreign Exchange    Buying   Selling
New York           276.490   282.901
Montreal           179.949   184.121
Sydney             174.404   178.447
London             458.562   469.194
Dublin             409.490   418.984
Nicosia            553.060   565.883
Paris               49.165    50.305
Zurich             203.087   207.796
Brussels             7.995     8.180
Frankfurt          164.891   168.714
Helsinki            54.240    55.498
Amsterdam          146.344   149.737
Copenhagen          43.319    44.323
Stockholm           35.200    36.016
Oslo                36.994    37.851
Vienna              23.437    23.980
Milan               16.656    17.042
Tokyo              245.550   251.243
Madrid               1.938     1.983
Lisbon               1.609     1.646

Athens News Agency

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