Athens News Agency: Daily News Bulletin in English, 99-07-08

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

CONTENTS

[01] Government sees high fuel prices as threat to inflation

[02] Stocks fall again on profit-taking

[03] Public investment payments rise in H1

[04] Construction of Thessaloniki metro to start in January

[05] Wine fair to be held in Athens

[06] Telestet gets new customers in Q2

[07] Edrasi, Freyssinet form new company

[08] Spending on advertising rises 27.22 pct in H1

[09] Gov't on port privatisations

[10] Athens Foreign Exchange

[11] Karamanlis calls for upgraded EU role in int'l affairs

[12] Katiforis elected Eurosocialist VP

[13] Cohen in Greece next week

[14] Thessaloniki the primary entry point for massive Kosovo military presence

[15] OA strike cancels more than half of domestic flights yesterday

[16] Gov't says it will retain management in public utilities

[17] COREPER delays on decision to base Balkan reconstruction agency

[18] Higher petrol prices the focus on meeting

[19] Gov't unveils figures on green card applicants

[20] Greek-Egyptian team retrieves several stone anchors at ancient Alexandria's port

[01] Government sees high fuel prices as threat to inflation

Athens, 08/07/1999 (ANA)

He told reporters after a three-hour meeting with Prime Minister Costas Simitis that it was too early to decide on introducing additional measures to help bring down inflation, which the government was closely monitoring.

Any decisions would be taken in September, Mr. Papantoniou added.

The national statistics service is today due to announce June's inflation rate, which is forecast at 2.1 percent.

The government's target is to reduce inflation below 2.0 percent in July or August, and keep it there until the end of the year, in order to attain the inflation criterion for entry into the euro zone.

The government has yet to finalise the details of tax relief planned for 2000 due to inflationary pressures, which could be eased by lowering indirect taxation, and possibly public utility rates.

The reduction in tax would depend on overall economic progress, Mr Papantoniou said.

He urged the public and business to aid the government's anti-inflation drive.

"I urge Greek businesses to voluntarily freeze their prices in coming months to contribute more effectively to this effort," he said.

The minister noted that the economy had made great progress but still had quite a way to go.

Athens News Agency

[02] Stocks fall again on profit-taking

Athens, 08/07/1999 (ANA)

Dealers said buying activity shifted towards smaller capitalisation stocks in reaction to a correction in blue chip stocks.

The general index ended 0.67 percent lower at 4,285.84 points.

Turnover was 180.191 billion drachmas with 28,304,728 shares changing hands.

The Industrials, Leasing and Miscellaneous sectors outperformed the market ending 0.22 and 2.63 percent higher.

Other sector indices ended as follows: Banks (-1.26 pct), Insurance (-0.29 pct), Investment (-0.39 pct), Construction (-0.37 pct) and Holding (-3.55 pct).

The parallel market index for smaller capitalisation stocks, however, jumped 4.0 percent.

The FTSE/ASE 20 index for heavily traded stocks and blue chips fell 1.39 percent to 2,524.44 points.

Broadly, advancers led decliners by 171 to 115 with another 11 issues unchanged.

Sarandopoulos, Ergo Invest and Hellenic Sugar were the most heavily traded stocks, while Ergobank, Dorian Bank, Sarandopoulos and Bank of Piraeus led the day's turnover.

A total of 29 stocks ended at the day's 8.0 percent limit up.

National Bank of Greece ended at 21,060 drachmas, Alpha Credit Bank at 21, 280, Ergobank at 40,000, Piraeus at 10,100, Titan Cement at 30,950, Hellenic Petroleum at 2,880, Intracom at 19,105, Minoan Lines at 5,900, Panafon at 8,050 and Hellenic Telecoms at 6,770.

Bonds slump on euro's decline : Bond prices in the secondary market yesterday lost 50-70 basis points across the board following gloom in markets abroad over the sinking euro.

Electronic trade totalled 44.5 billion drachmas from 48 billion drachmas in the previous session and 10 billion drachmas on Monday. Sell orders accounted for around 40 billion drachmas of yesterday's turnover.

The yield spread over German bunds fluctuated between 165 and 169 basis points from 161 basis points a day earlier and 158 basis points on Monday.

At the central bank's daily fix, the euro edged down against the drachma. It was set at 325.340 drachmas from 325.490 drachmas in the previous session.

Athens News Agency

[03] Public investment payments rise in H1

Athens, 08/07/1999 (ANA)

Payments for co-financed projects, accounting for 77.4 percent of this year's public investments programme, totalled 564.7 billion drachmas in the period January-June.

The ministry said that 33.2 percent of co-financed works had been completed, or 39.6 percent of the 1999 programme.

Deputy National Economy Minister Christos Pahtas noted that the growth rates both of payments and completion of projects were faster than in previous years due to timely preparation on the part of the state.

They also reflected the country's economic growth and stronger outlook, he said.

Mr. Pahtas said that the government's target to complete by the end of the year the European Union's Second Community Support Framework programme, which accounts for 80 percent of this year's public investments programme, remained feasible.

Athens News Agency

[04] Construction of Thessaloniki metro to start in January

Athens, 08/07/1999 (ANA)

Preliminary work includes carrying out geotechnical and archaeological surveys, collecting data on public utility networks and final engineering.

The projects are expected to be completed in eight months. Their budget is 6.6 billion drachmas, or 3.0 percent of the metro's total budget.

Mr. Laliotis said the state would cover 80 percent of the project's total budget, while the remaining 20 percent would be met by the private Thessaloniki Metro consortium.

He said that the government had already submitted all necessary documents to the European Investment Bank asking for funding for the project.

Athens News Agency

[05] Wine fair to be held in Athens

Athens, 08/07/1999 (ANA)

The international trade fair is held under the aegis of the Association of Greek Wine.

Exhibiting their wares are producers from home and abroad.

The organisers are Delos Communications and London International Wine Fair.

Athens News Agency

[06] Telestet gets new customers in Q2

Athens, 08/07/1999 (ANA)

The company said in a statement that it had gained 130,733 new subscribers against 59,791 in the second quarter of 1998.

At the end of June, Telestet had 928,034 customers. The rate of growth in the first half of the year was 34.8 percent.

Of total business, 50.6 percent was contract based and the remaining 49.4 percent covered pre-paid services.

Athens News Agency

[07] Edrasi, Freyssinet form new company

Athens, 08/07/1999 (ANA)

The two sides put their signatures to the agreement to create Fredra SA, which will specialise in repairs after natural disasters.

Athens News Agency

[08] Spending on advertising rises 27.22 pct in H1

Athens, 08/07/1999 (ANA)

Again receiving the lion's share of spending was television at 111 billion drachmas, representing a 48.4 percent share of the market. Next came magazines, newspapers and radio stations.

Spending on advertising in the month of June was 47.5 billion drachmas from 37.1 billion a year earlier, marking a 28 percent rise.

The data was given in a monthly report by Media Services SA., released yesterday.

Athens News Agency

[09] Gov't on port privatisations

Athens, 08/07/1999 (ANA)

Referring to opposition to the privatisation plan by local Volos officials, Merchant Marine Minister Stavros Soumakis noted that "policy is defined by the government and not by whatever mayor. Let them take care of other issues. We are not looking for businessmen-mayors."

Athens News Agency

[10] Athens Foreign Exchange

Athens, 08/07/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             315.228 322.537
Can.Dollar            214.332 219.301
Australian Dlr        209.228 214.079
Pound Sterling        491.516 502.912
Irish Punt            409.792 419.293
Pound Cyprus          560.044 573.028
Pound Malta           734.508 765.113
Turkish pound (100)     0.065   0.068
French franc           49.201  50.342
Swiss franc           201.262 205.928
Belgian franc           8.000   8.186
German Mark           165.013 168.839
Finnish Mark           54.280  55.539
Dutch Guilder         146.452 149.847
Danish Kr.             43.398  44.404
Swedish Kr.            37.125  37.985
Norwegian Kr.          39.902  40.827
Austrian Sh.           23.454  23.998
Italian lira (100)     16.668  17.054
Yen (100)             258.218 264.204
Spanish Peseta          1.939   1.984
Port. Escudo            1.610   1.647

Foreign Exchange      Buying  Selling
New York              315.228 322.537
Montreal              214.332 219.301
Sydney                209.228 214.079
London                491.516 502.912
Dublin                409.792 419.293
Nicosia               560.044 573.028
Paris                  49.201  50.342
Zurich                201.262 205.928
Brussels                8.000   8.186
Frankfurt             165.013 168.839
Helsinki               54.280  55.539
Amsterdam             146.452 149.847
Copenhagen             43.398  44.404
Stockholm              37.125  37.985
Oslo                   39.902  40.827
Vienna                 23.454  23.998
Milan                  16.668  17.054
Tokyo                 258.218 264.204
Madrid                  1.939   1.984
Lisbon                  1.610   1.647

Athens News Agency

[11] Karamanlis calls for upgraded EU role in int'l affairs

Athens, 08/07/1999 (ANA)

"The EU is not participating in the formulation of the international scene as much as it should, according to its dominant cultural position and its leading role in the world economy," he said on the sidelines of the European Peoples' Party (EPP) conference in Marbella, Spain, attended by conservative and Christian Democrat leaders from throughout Europe.

"It is very important that we give the EU the role it can and must play internationally," he said, adding that this was a crucial challenge for EPP, which constitutes a major political majority in Europe, as measured in the recent Euroelections.

For this to happen, he noted, there should be a greater balance between economic and political power, stressing that progress towards political unification and a common defence and external policy required greater political will.

Athens News Agency

[12] Katiforis elected Eurosocialist VP

BRUSSELS, 08/07/1999 (ANA)

Spanish Eurodeputy Enrique Baron Crespo was elected president of the group, while PASOK Eurodeputy Georgios Katiforis was elected vice-president.

Athens News Agency

[13] Cohen in Greece next week

WASHINGTON, 08/07/1999 (ANA- T. Ellis)

A Pentagon official said issues to be discussed with the Greek government will include both bilateral and multilateral cooperation (involving both Athens and Ankara), future developments in Kosovo and southeast Europe.

Confidence-building measures (CBMs) in the Aegean and dealing with terrorism will also reportedly be on the agenda. The same official stressed that Athens is working very hard to ensure the protection of US nationals serving in Greece, while Greece-Iran ian relations will also be discussed, he added.

Mr. Cohen's itinerary includes visits to Athens and Thessaloniki, as well as meetings with Prime Minister Costas Simitis, Defence Minister Akis Tsohatzopoulos and FM George Papandreou.

Other stops on the US defense secretary's European tour are Denmark, Norway, Hungary, Albania and Turkey, where discussions will include Kosovo and Greek-Turkish relations.

Athens News Agency

[14] Thessaloniki the primary entry point for massive Kosovo military presence

Athens, 08/07/1999 (ANA)

Greek officials said more than 17,000 troops have passed through the city's port and airport, arriving on 293 planes, 91 vessels and nine trains.

During the same time period, some 14,000 military vehicles, 3,067 containers, 214 tanks and 1,710 armoured personnel carriers also disembarked in Thessaloniki.

Meanwhile, another 300 German troops arrived in the city yesterday on five transport planes, while on Friday five Russian vessels are expected to dock either at Thessaloniki's port or in Volos with troops and supplies destined for Kosovo.

Athens News Agency

[15] OA strike cancels more than half of domestic flights yesterday

Athens, 08/07/1999 (ANA)

The situation prevailing at both terminals of Athens airport yesterday morning was unlike previous days, since travellers were mostly aware of the strike. More than half of domestic flights had been either cancelled or had their departure times changed.

However, OA passengers travelling abroad, who had to change flights, faced several hours of delay.

Hochtief head on OA : Meanwhile, the general manager of the construction consortium building the new Athens airport at Spata yesterday stated that OA's privatisation is a tested solution that has worked well with other European carriers. Speaking in Beirut during a presentatio n of an airport project headed by Hochtief, German national Gerhard Shill said the Spata airport will open in March 2001 regardless of whether OA's maintenence and repair facilities are transferred to the new airport or not. However, transport ministry so urces denied that there is an agreement for the granting of an operation permit to the new airport without the prior construction of OA facilities at the site.

Athens News Agency

[16] Gov't says it will retain management in public utilities

Athens, 08/07/1999 (ANA)

"Management in public utilities will be chosen by the majority shareholder. And it is clear that in utilities of a strategic character, the 51 per cent majority will be held by the Greek state," he said in response to a claim by Democratic Social Moveme nt (DHKKI) leader Dimitris Tsovolas that a relevant draft legislative provision signalled the "sell-out of public enterprises to the private sector". Mr. Christodoulakis explained that the measure aimed to strengthen the presence of private enterprise ami d the boards of the utilities.

"It is natural and necessary when the number of private investors increases for their representatives also to increase on the board," he said. Referring to other issues, he said the fourth partial-flotation by the Hellenic Telecommunications Organisati on (OTE) this month was meeting with "great success," and that 55 per cent of the offer had already been covered by foreign institutional investors. He added that domestic interest was similarly strong and attributed the development to the progress of the utility's mobile phone subsidiary, CosmOTE.

Athens News Agency

[17] COREPER delays on decision to base Balkan reconstruction agency

BRUSSELS, 08/07/1999 (ANA - M. Spinthourakis)

EU leaders opted for Thessaloniki as the agency's headquarters during their summit in Rio de Janeiro late last month. A COREPER spokesman noted that relevant EU agencies are still studying the issue and will soon announce whether any changes are to be made.

He added that COREPER will announce whether it will propose Pristina over Thessaloniki, or whether the Council of Ministers will decide on the issue during its July 19 session, and before any submission to the Europarliament for final approval.

Athens News Agency

[18] Higher petrol prices the focus on meeting

Athens, 08/07/1999 (ANA)

Super gasoline will cost 218.80 drachmas per litre in the Attica and Thessaloniki areas, while unleaded will cost 203.60 drachmas per litre.

On their part, gas station owners believe prices should be set at higher levels, while certain reports state that competition on islands and isolated areas has been lacking, allowing for even higher prices.

Development Minister Evangelos Venizelos will meet representatives of oil companies today and, according to reports, talks will focus on the absorption of part of the increase by companies and distributors.

In a statement after meeting representatives of the Federation of Petros Trader of Greece, Mr. Venizelos said:

"The price of fuel in Greece, just as is the case in all countries, is determined by the international price of crude oil. This price is increasing lately despite the fact that on average we have not left the framework of our predictions for 1999. The government's basic target is to slash inflation and for us to meet the criterion for EMU entry...I think the fundamental conclusion is one, namely, that the indicative prices issued by the development ministry every week for fuel...are meaningful, because it is possible with a little effort and a little self-restraint the consumer will pay the indicative prices and not more."

Athens News Agency

[19] Gov't unveils figures on green card applicants

Athens, 08/07/1999 (ANA)

"The responsibility for their being excluded from the prospect of becoming legalised is entirely their own," Labour and Social Security Minister Miltiades Papaioannou told a news conference yesterday.

"They will have to deal with the dilemma of illegality or deportation."

Immigrants who have not registered for a green card -the deadline for submissions ended on June 1, 1998 - or have entered the country illegally since Nov. 30 1997, would not be allowed to remain in Greece legally, he said.

According to figures from the Manpower Employment Organisation (OAED), 373, 196 people submitted applications under the government's programme to legalise illegal immigrants. Of those, 225,691 have applied for a green card.

On the basis of those figures, some 180,000-190,000 foreign workers will receive a green card. According to trade union estimates there are an estimated 700,000 illegal workers in the country.

Mr. Papaioannou said 73 committees were at work on processing the applications and were clearing 16,000 applications a month. At this rate, he said, the entire process was expected to be completed in 12 months' time. To date, 40,000 applications have be en examined and 35,000 approved, with the rejection rate currently running at 12 per cent.

"We are trying to step up the pace," he added.

Sixty-five percent of those registering for a green card were Albanian. Bulgarian nationals made up 6 percent, Pakistanis 5 per cent and Indians 4 per cent.

Mr. Papaioannou denied that there had been any change in the government's immigration policy or that the green card programme was being scrapped.

Asked about the future of those issued with green cards - valid for one year - Mr. Papaioannou said that wider immigration policy was not the responsibility of his ministry.

Athens News Agency Athens 08/07/1999 (ANA)

Development Minister Evangelos Venizelos met yesterday in Athens with banking tycoon Spyros Latsis for talks that included the proposed Alexandroupoli-Burgas oil pipeline project,as well as natural gas net-works in Greece.

Athens News Agency

[20] Greek-Egyptian team retrieves several stone anchors at ancient Alexandria's port

Athens, 08/07/1999 (ANA)

A press release by the Hellenic Institute of Ancient and Mediaeval Alexandrian Studies (IAM) noted that divers from the scientific team retrieved 25 stone anchors during the 26-day project in the vicinity of the submerged ancient port.

The discovery of another seven stone anchors last year has led archaeologists to believe that further research will even reveal ancient shipwrecks. Pottery shards spewed across the seabed were also photographed and will be studied.

The study and field research is a joint effort by the Greek Institute for the Preservation of Naval Tradition, IAM and the Egyptian Department of Underwater Archaeology.

The president of the Greek institutes, Haris Tzalas, and Egypt's director of underwater archaeology, Ibrahim Atteyiah Darwish, supervised the project.

Athens News Agency

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