Athens News Agency: Daily News Bulletin in English, 99-04-17

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

CONTENTS

[01] Simitis unveils initiative for peaceful settlement, 'day-after' in Balkans

[02] Reactions

[03] Greek aid to Kosovo refugees worth 10 million dollars

[04] US on Greek dispatch of physicians to Kovoso

[05] Only Greek aid workers active Kosovo, Greek FM says

[06] G. Papandreou on NGOs efforts in Yugoslavia

[07] Gligorov: NATO forces cannot use FYROM territory for attack on Yugoslavia

[08] Gov't calls US designation including Ionian a 'mistake'

[09] ESHEA responds to Burns, Andrianopoulos quips over biased Kosovo reporting

[10] French convoy finally makes it to FYROM border

[11] Olympic Airways gets four bids for management contractor

[12] Inflation still stumbling block to euro entry, bank says

[13] ECB reports robust growth in Greek economy

[14] Public investment plan to be fully implemented

[15] Bank of Greece moves to curb credit expansion

[16] Greece, Poland to boost business ties

[17] Gov't to present tax reform plan by end-May

[18] Goody's wants to increase share capital

[19] Gov't to auction 7-yr bond Tuesday

[20] EU finance ministers discuss repercussions from Kosovo crisis

[21] Athens Foreign Exchange Bank of Greece closing rates of: April 16, 1999

[01] Simitis unveils initiative for peaceful settlement, 'day-after' in Balkans

Speaking after a five-hour inner cabinet meeting, Mr. Simitis said a political solution must be found as quickly as possible, involving a cessation of hostilities, the withdrawal of Serbian army forces from Kosovo, the safe return of refugees to their h omes and the deployment in the Yugoslav province of an international peacekeeping force.

The mission of the peacekeeping force, he added, should be legalised on the basis of a wide-ranging UN Security Council act.

Mr. Simitis said Greece supports proposals and initiatives for a peaceful solution formulated by EU member-states (Germany and other). Additionally, it has proposed a set of principles which along with the Rambouillet talks could possibly serve as the f ramework for talks aimed at resolving the Kosovo crisis, with respect for existing borders, human and minority rights, acceptance of the principle of the peaceful settlement of disputes and cooperation to secure democracy and development.

The premier said the Greek proposal would be put to NATO and the European Union so as to take the shape of an initiative which would unfold on three levels.

The three levels at which Greece will promote its policy for a settlement to the crisis include:

- At international organisations of which Greece is a member of, such as NATO and the European Union, with the promotion of initiatives, support for proposals and the seeking of opportunities for a political handling of the crisis.

- At the Balkan level, with intensification of efforts to shape a common approach and common initiatives. This effort includes holding a summit for Balkan countries in Athens.

- At the wider international level, aiming at the greatest possible participation in the political process for finding a solution of the UN and the OSCE, as well as Russia.

At the present time, Mr. Simitis said, Greece has shaped a wider network of exchanging views, shaping proposals, exercising influence and undertaking initiatives in the direction of a speedy and effective solution to the crisis and the avoidance of its escalation with particularly painful human consequences.

Greece believes it is necessary, immediately after the end of military operations, that the materialisation of an overall "Balkan Stabilisation and Development Plan" should go ahead immediately, he said. This plan, which the Greek government has already processed, has five axes:

- The economic development of the Balkan region with a package of measures and initiatives which will compose a kind of "Marshall Plan" for the region.

- Democratisation of the region with measures aimed at building and consolidating democratic institutions, the strengthening of the citizens' society and protection for individual and minority rights.

- Establishment of a conflict-resolving mechanism as part of the "Stability Accord" which will guarantee the inviolability of borders.

- Promotion, intensification and initiation of interregional cooperation with the participation of all the countries in the region as a step towards the region's full incorporation in the European architecture and the European institutional system.

- Recognition of the "eligibility" of all countries to join the European Union, provided they fulfill the necessary political and economic preconditions.

Mr. Simitis said the Greek government's plan will be submitted to the European Union and, combined with a "stability accord" proposed for the region by Germany, will constitute the EU's new approach to the Balkans.

"Greece has already developed intense activity in handling humanitarian problems related to refugees. It will decisively widen its humanitarian action and presence with a series of measures such as:

"The development of infrastructure works for refugees by the armed forces.

"The provision of humanitarian aid in regions, Kosovo and Montenegro, which present special access problems.

"The Greek government is planning a wide conference in Athens focusing on humanitarian aid. The conference will be attended by all the countries involved, as well as agencies, to facilitate the more effective handling of problems of a humanitarian chara cter. The confe-rence will also examine the economic aspects and consequences of the crisis.

"The Greek government, with the initiatives, actions and measures it is promoting for the region, is promoting Greece as a decisive factor in a political solution to the crisis and the creation of conditions for 'viable stability' in the Balkans," he ad ded.

Mr. Simitis warned that the Kosovo crisis posed a threat for the entire region. He said political action must be taken aimed at some solution, since the situation was alarming.

Replying to reporters' questions, Mr. Simitis acknowledged that no firm decisions were taken at the informal EU summit in Brussels earlier this week, but he said there had been "a change of climate".

He expressed pessimism about whether next week's NATO summit in Washington would bring any positive results.

The Greek PM reiterated that Greek forces would not be involved in NATO actions in Yugoslavia, but that "it will send forces where it judges they should be sent."

[02] Reactions

Referring to the main opposition New Democracy party's position in relation to the government's handling, he said "it would be good for them to show greater seriousness over these issues, not to speak out of proportion and not use demagoguery against th e people."

Speaking in Thessaloniki yesterday, main opposition ND leader Costas Karamanlis said the initiative presented by the PM on Yugoslavia yesterday is "destined for domestic consumption".

Speaking at the town hall in the Ambelokipi district, Mr. Karamanlis said no initial preparation has taken place, there is nothing specific, there are no commitments with specific timetables and the entire initiative is "hot air."

On its part, the Communist Party of Greece (KKE) said it discerns an operation to "cover up responsibilities" in the prime minister's announcement for the assumption of peace initiatives on the part of Greece concerning the war in Yugoslavia.

The Coalition of the Left and Progress (Synaspismos) spoke of a "recital of duplicity for evident reasons of domestic consumption" since "at a time when the government is signing all the decisions for the continuation and escalation of NATO bombings wit h the one hand, it is registering proposals which it was rejecting until yesterday and accused of being outrageous, untimely and ineffective with the other."

Athens News Agency

[03] Greek aid to Kosovo refugees worth 10 million dollars

Greece has provided more than US 10 million dollars worth of aid to Kosovo refugees sheltered in camps in Albania and the Former Yugoslav Republic of Macedonia, according to the latest UN figures, Deputy Foreign Minister Grigoris Niotis said h ere yesterday.

While accompanying a latest shipment of Greek humanitarian aid to Albania, Mr. Niotis said only Germany, with $14 million, had contributed more, while Athens intended to continue in the same vein.

In a short address, Archbishop of Tirana and All Albania Anastasios welcomed the Greek delegation.

"Whoever has not been inocculated against disappointment cannot bear these places. It is our duty to cooperate," the Archbishop told the members of the Greek delegation.

"Greece wants and can illustrate its friendly sentiments to neighbouring peoples. It is a country of stability and peace and cultivates co-existence between the two peoples," Mr. Niotis said.

Anastasios expressed his fears about the eventuality of "religious zones" being carved out in the Balkans and stressed that religious communities could live in harmony and peace.

He suggested that some of the region's religious leaders could make this issue a topic of discussion.

Mr. Niotis also met with Albanian Prime Minister Pandeli Majko, who said Athens' efforts to bolster regional stability "would be valued".

Mr. Majko also said he was grateful for Foreign Minister George Papandreou's mediation between Tirana and Skopje, which he said, had served to avert a crisis.

Mr. Niotis underlined the need for regional borders to be maintained and for efforts to be undertaken to find a peaceful solution to the crisis. He also met with the Albanian parliament speaker and his Albanian counterpart.

In the evening, Mr. Niotis met with Albanian Foreign Minister Paskal Milo, who said the "international community should respond to Milosevic's violence with violence". Mr. Milo also asked for NATO ground operations to start, saying that Kosovo should be come an "international protectorate".

Mr. Niotis reiterated the Greek positions for a peaceful settlement of the crisis and the need to respect present borders.

Athens News Agency

[04] US on Greek dispatch of physicians to Kovoso

The US administration yesterday expressed its total support for Athens' efforts to dispatch doctors to Kosovo to provide medical aid to thousands of Albanian as well as Serbian refugees.

US State Deparment spokesman James Rubin said "we want the Greek government to succeed in its efforts," while he called Greece "an example of a country which can use its contacts in Serbia to have access to people in need."

Athens News Agency

[05] Only Greek aid workers active Kosovo, Greek FM says

Greece is the only country with humanitarian aid workers within Kosovo, FM George Papandreou stressed here yesterday.

"Non-governmental organisations, such as Medicins du Monde are trying, with self-sacrifice, to help the population that has remained in Kosovo. The flow of Greek humanitarian aid has not stopped even for a day," he said at a news briefing after the end of the the 3rd EuroMediterranean conference.

He stressed the importance of a conference of foreign ministry experts from Balkan countries, scheduled for Monday in Athens.

"it is important for the Balkan voice to be heard at this phase. The aim is to formulate a series of proposals on peace and stability in the region, which Greece will then submit to its partners in the NATO summit in Washington next week," he said.

Mr. Papandreou had separate contacts on the sidelines of the conference with his counterparts from France, Egypt, Israel, Jordan, Lebanon and Syria.

Athens News Agency

[06] G. Papandreou on NGOs efforts in Yugoslavia

"Foreign ministry officials are in Belgrade, having consultations with Yugoslav counterparts for a joint evaluation of the country's needs in humanitarian aid, including medicinal supplies," he said.

He added that the Greek officials were also trying to win the Yugoslav authorities permission for the activation of the Medicins Sans Frontiers organisation in the country.

Athens News Agency

[07] Gligorov: NATO forces cannot use FYROM territory for attack on Yugoslavia

The president of the Former Yugoslav Republic of Macedonia (FYROM), Kiro Gligorov, yesterday expressed his opposition to the deployment of NATO forces against Yugoslavia and to the use of his country's territory for such a campaign.

He expressed this view during a meeting with a visiting delegation of the Coalition of the Left, headed by party leader Nikos Constantopoulos.

Mr. Gligorov stressed the need for a political solution to the Kosovo problem, with international guarantees and without any change in borders.

The Greek delegation met with all FYROM political leaders during its two- day stay, including the leaders of two ethnic Albanian party leaders, Arben Xhaferi and Abdurahman Aliti.

Mr. Constantopoulos said the two countries had a common strategic interest in political stability in the Balkans which excluded the application of scenarios of partitions and/or cantonisation.

He emphasised the need for maintaining FYROM's independence, sovereignty and territorial integrity.

The FYROM leader also stressed that the war brought the two countries closer together, and this maturation of political conditions had to be tapped in order to arrive at an agreement covering all outstanding issues.

Athens News Agency

[08] Gov't calls US designation including Ionian a 'mistake'

Responding to relevant questions, Development Minister Evangelos Venizelos said "Ithis decree is not connected to travel advisories, it is a mistake, which does not help Greek tourist and economic interests, to attempt on our own to give a different character to this typical decree."

Athens News Agency

[09] ESHEA responds to Burns, Andrianopoulos quips over biased Kosovo reporting

Mr. Burns, in an interview to morning daily "Kathimerini" last week, stated that it was insulting and unacceptable for anyone to support that the Kovosar refugees left the Yugoslav province because of NATO's bombings. He added that it was enough for som eone to follow Atlanta-based CNN, London- based BBC or any other independent media to ascertain the truth.

He also said refugees described to reporters how they were hounded from their homes and how many Kovosar men were executed, adding that the Serbian military forces "made refugees of them."

Mr. Burns said it was illogical for anyone to support that NATO's bombings caused the wave of refugees, saying the press has the responsibility, especially in Greece, to "assume a more objective stance toward this conflict."

In a press release, ESHEA noted that its board of directors "reaffirmed the stance of those employed by the press and the mass media for an immediate end of the NATO bombardments of Yugoslavia, which create victims among the non-combatants as well as ca using great damage; for the finding of a political solution and the return of the refugees to their homes."

Responding to Mr. Burns' statements, ESHEA reminded the US ambassador that any "intervention in the operation of the press constitutes a violation of the basic article of the constitution protecting the freedom of the press".

In a unrelated article published by the "Wall Street Journal", former ND minister Andreas Andrianopoulos accused the Greek media of "systematic misinformation and of cultivating a climate of terror", while he added that news programmes in Greece merely copy Serbian propaganda.

ESHEA's press release responded by noting that Greek reporters complete their mission without having to submit to any kind of censorship, "having sided only with peace in the Balkans and not with either side."

Athens News Agency

[10] French convoy finally makes it to FYROM border

The eight French multi-purpose military vehicles and 48 containers were forced to return to the port of Thessaloniki after about 100 protesters near Polykastro, Kilkis prefecture, blocked the roadway.

The convoy was headed for FYROM with supplies for a French contingent in the small landlocked country. The demonstrators demanded that the convoy return to the port of Thessaloniki, where a French-flagged freighter unloaded the material and veh icles earlier in the day.

Another French freighter is expected to dock in Thessaloniki over the next few days to unload more military supplies, while three US cargo planes were scheduled to fly into the northern city with humanitarian aid headed for FYROM yesterday.

Athens News Agency

[11] Olympic Airways gets four bids for management contractor

All four bids were from foreign airlines, Mr. Mantelis said.

The tender had now entered a negotiations phase until May, but the government was ready to extend the period if this aided the talks, he said.

The winner of the tender is to manage Olympic Airways for two years.

Mr. Mantelis also said that the original plan was to offer a 10-20 percent stake in Olympic, but no interest had been shown in the proposal and it was removed from the tender.

The minister declined to name the bidders following their request for confidentiality.

Athens News Agency

[12] Inflation still stumbling block to euro entry, bank says

The downward trend of inflation was temporarily halted last year due to the drachma's devaluation in March, the annual report said.

If difficulties emerged in attaining the Maastricht inflation criterion, then new measures would be needed, including more cuts in indirect taxation, reductions in public utility charges and further agreements by commerce and industry to freeze or lower prices.

The country had to improve productivity. Helping were infrastructure projects co-funded with the European Union, but they were not enough in themselves.

Especially needed was higher productivity in the public sector, the report said.

Athens News Agency

[13] ECB reports robust growth in Greek economy

In an annual country report on 1998, the ECB also noted a healthy increase in industrial output and construction.The report on Greece, like those for other countries, did not contain forecasts.

Unemployment was 9.9 percent in 1998, up from 7.9 percent in 1997 and 7.5 percent in 1996.

The trade deficit was flat around 15 percent of GDP in comparison with 1997, attributed to the fact that lower prices in imported energy were offset by negative terms of trade due to the drachma's devaluation in March 1998.

It also said the Greek central bank's target was to reduce consumer price inflation to below 2.0 percent by the end of the year. Athens News Agency Stocks slump on fears of lasting Kosovo crisis Equity prices ended the last trading session of the week substantially lower on the Athens Stock Exchange, hit by fears of prolonged NATO air strikes against Yugoslavia.

The general index ended 2.24 percent off at 3,559.32 points. Turnover was 140.9 billion drachmas and volume 31,150,069 shares.

Traders said fading hopes of a diplomatic initiative by the European Union and Russia to end the crisis in Kosovo and Washington's determination to press on with its military campaign undermined sentiment in the market.

Sector indices suffered losses. Banks dropped 3.01 percent, Leasing fell 0.74 percent, Insurance eased 1.57 percent, Investment ended 1.40 percent off, Construction fell 0.55 percent, Industrials dropped 1.37 percent, Miscellaneous ended 1.76 percent do wn and Holding eased 0.60 percent.

The parallel market index for small cap companies ended 2.47 percent off while the FTSE/ASE 20 index fell 2.55 percent to 2,234.26.

Broadly, decliners led advancers by 203 to 77 with another 11 issues unchanged.

Sato, Strintzis, Epilektos, Eltrak and Hellenic Telecoms were the most heavily traded stocks.

Buying interest focused on smaller capitalisation stocks pushing 20 shares to the day's 8.0 percent limit up.

Eurobank's share price rebounded 1.8 percent following a sharp drop in the previous two sessions.

Ergodata, Nicas, Veterin, Elfico, Lavipharm, Agrinio Metalplastics, Proodeftiki, Benroubi, Mouriadis and Gener hit the day's 8.0 percent limit up.

Eskimo, Ippotour, Hellenic Textiles, Corfil, Elve, Phoenix, Maxim, Viosol, Xylemporia and Etma suffered the heaviest losses.

National Bank of Greece ended at 21,000 drachmas, Alpha Credit Bank at 22, 085, Ergodata at 27,640, Ionian Bank at 18,905, Titan Cement at 22,800, Hellenic Petroleum at 2,400, Intracom at 19,300, Minoan Lines at 7,640, Panafon at 7,945 and Hellenic Telec oms at 6,730. Bond, forex markets lacklustre: Bond prices crept down 35-50 basis points yesterday in thin trade and the drachma held steady against the euro, traders said.

The new ten-year-bond was at 103.95, showing a yield of around 5.70 percent. The yield spread with German bunds was 1.89 percent.

At the central bank's daily fix, the euro ended at 324.420 drachmas from 324.500 in the previous trading session.

Athens News Agency

[14] Public investment plan to be fully implemented

Mr. Pahtas said that the public investment programme would be fully implemented this year, for the first time ever.

He predicted that Greece would fully absorb its allocated funds under the 2nd CSF by the year 2000.

Payments from the public investment programme totalled 395.5 billion drachmas in the first quarter, or 18 percent of the total budget, up from 11.9 percent in the same period last year.

Athens News Agency

[15] Bank of Greece moves to curb credit expansion

The central bank noted that commercial banks had agreed not to roll over to consumers any costs arising from the new measures by lowering their deposit rates.

The measures will aid anti-inflationary policy, whose target is to drive consumer price inflation below 2.0 percent, and keep it there.

The bank's monetary policy council decided to penalise commercial banks who overstep a 12 percent rate of growth for credit to the private sector and major-state owned firms by making them keep interest-free deposits at the Bank of Greece.

The Bank of Greece said that the measures were temporary and aimed to support efforts to fulfill the Maastricht criteria for participation in the euro zone.

Athens News Agency

[16] Greece, Poland to boost business ties

The statement was issued after a bilateral cooperation meeting held in Athens.

The two countries agreed to procedures aimed at promoting the creation of joint enterprises in the sectors of commerce and engineering.

They also agreed to boost bilateral trade volume and to hold their next meeting in Warsaw in the near future.

Poland thanked Greece for its support in its bid to become a full member of the European Union.

Athens News Agency

[17] Gov't to present tax reform plan by end-May

Mr. Drys denied talk that the government was considering a tax on capital gains from equity transactions.

He said that the second phase of a social dialogue on the reforms was due to begin on Monday. Proposals on tax breaks from social and trade groups have already been received by the government.

The purpose of the dialogue was to achieve as much consensus as possible, Mr. Drys added.

He repeated that budgetary leeway for substantial tax cuts next year was limited.

Mr. Drys also announced that the government aimed to rise the tax-exempt income for wage earners and pensioners to two million drachmas, up from 1.355 million drachmas currently.

The measure was expected to cost the state budget 110 billion drachmas in lost revenue, he added.

Athens News Agency

[18] Goody's wants to increase share capital

Athens News Agency

[19] Gov't to auction 7-yr bond Tuesday

The paperless bond pays an annual coupon of six percent. Settlement date is Friday, April 23. No commission is payable.

Athens News Agency

[20] EU finance ministers discuss repercussions from Kosovo crisis

The economic repercussions of the Kosovo crisis was among issues discussed here yesterday by the European Union member-states' finance and monetary affairs ministers. The main topic of discussion was economic prospects i n EU member-states. In their addresses, almost all the finance ministers referred to the Kosovo crisis, saying that it is a negative development which might have repercussions on the European economy.

National Economy Minister Yiannos Papantoniou also expressed concern over developments in Kosovo, underlining that for Greece, which is a neighbouring country, these repercussions are even greater.

Mr. Papantoniou said the ministers must deal seriously with what will happen after the Kosovo crisis is over. He added that the EU must handle the Balkan issue in its entirety.

He said that according to available data, Greece is providing economic aid for Kosovo which, related to the size of its economy, is far bigger than aid provided by the other member-states.

The issue is also expected to be discussed during the ministers' meeting here today and, in parallel, it is also expected to preoccupy the next regular council which will convene in early May.

Athens News Agency

[21] Athens Foreign Exchange Bank of Greece closing rates of: April 16, 1999

Banknotes            Buying    Selling
US Dollar            300.874    307.849
Can.Dollar           201.872    206.552
Australian Dlr       193.653    198.143
Pound Sterling       484.691    495.929
Irish Punt           408.633    418.107
Pound Cyprus         555.540    568.420
Pound Malta          719.930    749.927
Turkish pound (100)    0.071      0.074
French franc          49.062     50.200
Swiss franc          200.716    205.370
Belgian franc          7.978      8.163
German Mark          164.546    168.361
Finnish Mark          54.127     55.382
Dutch Guilder        146.037    149.423
Danish Kr.            43.295     44.299
Swedish Kr.           36.188     37.027
Norwegian Kr.         38.882     39.784
Austrian Sh.          23.388     23.931
Italian lira (100)    16.621     17.006
Yen (100)            254.170    260.063
Spanish Peseta         1.934      1.979
Port. Escudo           1.605      1.642

Foreign Exchange      Buying     Selling
New York             300.874     307.849
Montreal             201.872     206.552
Sydney               193.653     198.143
London               484.691     495.929
Dublin               408.633     418.107
Nicosia              555.540     568.420
Paris                 49.062      50.200
Zurich               200.716     205.370
Brussels               7.978       8.163
Frankfurt            164.546     168.361
Helsinki              54.127      55.382
Amsterdam            146.037     149.423
Copenhagen            43.295      44.299
Stockholm             36.188      37.027
Oslo                  38.882      39.784
Vienna                23.388      23.931
Milan                 16.621      17.006
Tokyo                254.170     260.063
Madrid                 1.934       1.979
Lisbon                 1.605       1.642

Athens News Agency

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