Athens News Agency: Daily News Bulletin in English, 99-07-20

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

CONTENTS

[01] EU foreign ministers agree on Thessaloniki for Balkan reconstruction agency

[02] Condemnations over Turkey's occupation of Cyprus on anniversary of invasion

[03] G. Papandreou hopeful over upcoming Greek-Turkish contacts, no talks on Ankara's claims

[04] First of 68 modernised F-4Es handed over

[05] Bulgaria's Kostov in Athens tomorrow

[06] Simitis to visit Greek contingent in Kosovo

[07] More Russian troops pass through Thessaloniki

[08] Onassis Foundation grants, scholarships announced

[09] Revisions on green card issuance

[10] Photo exhibition on Parthenon Marbles opens at British Parliament

[11] Central bank to slap new curbs on credit-happy banks

[12] Stocks hit new high, led by Wall Street

[13] Bank workers seek law on mergers and acquisitions

[14] Greek advertising market dominated by foreign firms

[15] Minoan Lines completes Dr 77.4 bln share cap rise

[16] Athens Foreign Exchange

[01] EU foreign ministers agree on Thessaloniki for Balkan reconstruction agency

BRUSSELS, 20/07/1999 (ANA - M. Spinthourakis)

The decision - reached after Athens had blocked approval of the regulation for Balkan reconstruction in the face of strong opposition by the European Commission to Thessaloniki - provides that the northern port city will serve both as the location of the administrative headquarters as well as a decision-making centre (hosting the board of the organisation, which will comprise the representatives of the "15" EU member-states and the Commission), while an operation centre will open in Pristina as well. The coordinator of the Stability Pact for the Balkans, Bondo Hombach, will be shuttling between Brussels and Thessaloniki, which he is scheduled to visit on Aug. 27.

According to reports, the agency will employ a staff of around 40 in the city, while the total number of personnel is expected to number between 200 to 250 persons.

FM George Papandreou stated that with the development signals the implementation of the decision reached by EU leaders at the summit meeting at Rio de Janeiro, the prospects for cooperation among Balkan countries, including Turkey, are furthered, and that Greece's role in the region acquires a new potential.

He stressed that the reconstruction effort must not be restricted to Kosovo, but spread to the whole of the Balkans, according to the original plan.

Arguing the case for Thessaloniki, Mr. Papandreou said Greece was the only Balkan country which was a member of the European Union, cited the future possibility that other operational centres could be set up in Serbia and other neighbouring countries - which could not be served from Pristina, and referred to the "technical" advantages, such the reduced cost and infrastructure facilities offered by the Greek city - telecommunications, transports, banks etc.

It is estimated the organisation will commence operation in early November, after the European Parliament debates the matter in September.

The ministers' council also agreed, through the adoption of a joint Greek- Dutch proposal, to examine the gradual lifting of the embargo on Yugoslavia.

Athens News Agency

[02] Condemnations over Turkey's occupation of Cyprus on anniversary of invasion

Athens, 20/07/1999 (ANA)

Mr. Stephanopoulos expressed hope that Turkey will show the necessary political will to allow for a final solution to the the island republic's protracted problem.

Turkey invaded Cyprus on July 20, 1974 and occupied 37 per cent of the island, which it holds to this day in violation of repeated UN resolutions.

"Twenty-five years after the Turkish invasion, Cyprus is continuing to live its great ordeal. If July 20th remains a day of grief and national disaster for Hellenism everywhere, it is a day of disgrace for Turkey. Just as the prolongation of the drama of Cyprus is an indication of the civilised world's decline. Turkey is continuing to treat UN resolutions with contempt and violate the rules of international law, as well as of ethics. However, it did not succeed, nor will it succeed in dampening the mora le of Cypriot Hellenism. And precisely this morale, which is supported by the solidarity of Hellenism in its entirety, constitutes the safest guarantee for the vindication of the holy struggle of our Cypriot brothers," he said.

Prime Minister Costas Simitis, in his message, stressed that Greece remains the guarantor of the security and survival of Hellenism in Cyprus.

"It reminds us in a tragic way that the wound is still open, that the island is still divided in two. That Turkey illegally invaded and continues to occupy part of the independent and sovereign Republic of Cyprus illegally," he said.

Mr. Simitis referred to the drama of the refugees and of the missing persons, the plundering of the island's cultural heritage and the Turks' effort to change the demographic composition of the island's population with the wholesale import of Turkish settlers, while in parallel, a third of the Cypriot population continue to be refugees in their own country.

"The efforts of all these years to have the problem of Cyprus resolved, primarily in the framework of the UN, did not meet with success. The ongoing Turkish intransigence and provocativeness, on the one hand, and the absence of the necessary strength and necessary will, on the other, did not allow for a final end to be given to the drama of Cyprus. They did not allow for a clear and resounding reply to Turkish illegality," he added.

Mr. Simitis said the Cyprus problem is an international problem of invasion and occupation, adding that "the prolongation of this situation offends the international community. It offends Hellenism and offends every sense of a modern civilised society."

He said that Greece remained the guarantor of the security and survival of Heellenism in Cyprus, adding that the will for a steadfast promotion of the implementation of the joint defence doctrine and the accession of Cyprus to the European Union was uns hakeable.

Mr. Simitis said Greece and Cyprus were struggling for a just and viable solution based on UN resolutions, a solution which would secure a unified state in the form of a bicommunal and bizonal federation with one sole sovereignty, international personality and citizenship.

In his message, Parliament President Apostolos Kaklamanis said memories are returning with feelings of grief, anger and indignation.

"It is high time that all those major powers playing a leading role in shaping the new world order, and the US in particular, to address the major problem of Cyprus with determination and provide a solution immediately. That solution which emanates from the decisions of the UN Security Council which they themselves primarily took if they desire their proclamations for human rights and international legal order to regain elementary credibility, " Mr. Kaklamanis added.

Main opposition New Democracy leader Costas Karamanlis said in his message that "the fact that Cyprus has remained for a quarter of a century in the state which 'Attila' (the code-name given by the Turks to the invasion of Cyprus) pinned it down constit utes a slur for the international community."

"Nicosia is the last and sole divided capital in Europe at the moment. And this is a disgrace for the international community. More so because Turkey is rejecting the initiative by the G8 and the relevant UN resolutions in a contemptuous way, claiming that the issue of Cyprus has been resolved through the invasion and the pseudo-state," Mr. Karamanlis added.

A statement by the Coalition of the Left and Progress (Synaspismos) said that "the unimpeded progress in the accession of Cyprus to the European Union constitutes a strategic priority for Athens and Nicosia and can prove to be a decisive factor for an exit to the present morass."

Synaspismos said what is necessary now is the defining of a unified national strategy to enable the strengthening of international mobility, the curbing of Turkish intransigence, an end to the consolidation of fair accomplis and the finding of a just and viable solution based on UN resolutions and summit agreements.

Athens News Agency

[03] G. Papandreou hopeful over upcoming Greek-Turkish contacts, no talks on Ankara's claims

Athens, 20/07/1999 (ANA)

"I hope that this process will be able to first of all reduce tensions, overcome prospective manufactured problems where they exist and - if there is a positive development - help in greather rapprochement between the two countries, which would mean gre ater hope for overcoming the difficult problems," he said.

Mr. Papandreou's interview was published in the Athens daily "Eleftherotypia" yesterday.

The Greek FM said the nine areas to be covered by the dialogue were culture, tourism, environmental issues, illegal immigration, terrorism, drug trafficking, cross-border crime, commerce and business, as well as cooperation in the Balkans, the Black Sea and the Mediterranean regions.

"It is a dialogue on matters in which we consider there is a field of common interest," he said, while "on the contrary issues are not included on which there are diametrically differing views, such as Turkey's claims in the Aegean."

Replying to questions, Mr. Papandreou said Greece did not need prompting to state that the issue of terrorism is a priority, adding that those sides that claimed that Greece was being pressured - when in fact it was cooperating closely on terrorism issues - only served to create the impression that Greece did not want to face the issue.

Mr. Papandreou clarified that the Greek-Turkish dialogue "cannot touch on issues that pertain to national sovereignty and (territorial) integrity".

On the Cyprus issue and Turkey's relations with the European Union, the foreign minister said that if Ankara contributed to the resolution of the Cyprus problem, it would be one of the basic issues for advancing Turkey's relations with the EU.

Consequently, he added, the EU had every reason to see a change in Turkey's stance on the Cyprus issue. Turning to Yugoslavia, Mr. Papandreou said that that country - be it the government or other political forces -- wanted "close contact with us as a channel of communication with the outside world and on prospective initiatives that Greece could undertake in the development of Yugoslavia itself."

Athens News Agency

[04] First of 68 modernised F-4Es handed over

Athens, 20/07/1999 (ANA)

EAB was awarded the tender to improve the fuselage of the F-4Es during an international competition. The programme, worth five billion drachmas, is scheduled to be completed by the summer 2004.

Germany's DASA has undertaken the upgrading of the jets' electronic systems.

National Defence Minister Akis Tsohatzopoulos, who attended the ceremony at EAB's installations at Tanagra, announced that the Hellenic Air Force's fleet of C-130 transport planes would also be modernised. Finance Undersecretary George Drys said that EAB would by the end of 2000 be a profitable company with a primary surplus. During the ceremony, it was announced that EAB would undertake the modernisation and expansion of the Hellenic Army's Tactical Communications System ERMIS II.

The cost of the programme is 80 billion drachmas.

Athens News Agency

[05] Bulgaria's Kostov in Athens tomorrow

Athens, 20/07/1999 (ANA)

Mr. Kostov is scheduled to meet with PM Costas Simitis, while the two men will hold a joint press conference at the conclusion of their midday talks.

Athens News Agency

[06] Simitis to visit Greek contingent in Kosovo

Athens, 20/07/1999 (ANA)

Mr. Simitis is due to visit the town of Urosevac on July 27, where the Greek troops are stationed.

Three days later, he will attend a summit meeting to be held in Sarajevo on a Stability Pact for the region, Mr. Reppas said.

Athens News Agency

[07] More Russian troops pass through Thessaloniki

Athens, 20/07/1999 (ANA)

The arrival of the four ships will complete the passage of Russian troops and equipment heading for Kosovo via Thessaloniki, following another five vessels which sailed into the port last Wednesday.

The passage of troops and military equipment of European and non-NATO countries will, however, continue, including a contingent from the United Arab Emirates.

Meanwhile, the bulk of the US 26th Marine Brigade returned through Thessaloniki over the weekend. The brigade had travelled to Kosovo ahead of the main peacekeeping force to secure its route into the Yugoslav province.

About 1,500 of the 2,000 marines boarded the helicopter carrier "Kearsarge" and another two US warships and will return to their base.

The other 500 marines will remain in Kosovo but they too will soon be going home as the brigade is to be replaced by the 1st Airborne Division.

Athens News Agency

[08] Onassis Foundation grants, scholarships announced

Athens, 20/07/1999 (ANA)

The Foundation said 32 research grants had been allocated to foreign researchers, members of science academies as well as university and research institute professors for one month to six months of research in Greece.

In the category of primary and secondary level teachers of Greek, the Foundation allocated six scholarships for post-graduate training in Greek schools and in the education departments of Greek universities.

A further 18 education scholarships were granted to foreign post-graduate students carrying out post-graduate studies or working on their thesis in Greece or abroad for a six- to 12-month stay in Greece to collect materials.

The grant and scholarship beneficiaries hail from Albania, Argentina, Belgium, Britain, Bulgaria, Chile, China, Congo, Croatia, Egypt, Georgia, Germany, Ghana, Hungary, Iceland, Italy, Latvia, Lithuania, Mexico, the Netherlands, Poland, Romania, Russia, South Africa, Spain, Tunisia, Turkey, the United States, the Ukraine and Yugoslavia.

Athens News Agency

[09] Revisions on green card issuance

Athens, 20/07/1999 (ANA)

The labour ministry will table a revision to double the number of relative Manpower Employment Organisation (OAED) boards in charge of green cards, while further measures hope to prevent falsification of the cards.

A total of 73 card-issuing boards are currently in operation, requiring 12 months for the completion of the procedure, while 225,691 requests for green cards have been submitted, out of which 40,000 had been reviewed by June 30.

Athens News Agency

[10] Photo exhibition on Parthenon Marbles opens at British Parliament

LONDON, 20/07/1999 (ANA - L. Tsirigotakis)

The one-time Euro-MP said the exhibition aimed to inform the British political world on Athens' request for a return of the marbles to Greece, which are now housed in the British Museum.

"When Parliament, which will ultimately decide on our request, is informed of how these marbles left Greece, I am sure it will adopt a positive stand on it," she stated. Labour MP Eddie O'Hara, who participated in organising the exhibition, said it would provide an opportunity to his colleagues and public opinion to understand the "just Greek demand".

"Already, 111 MPs have signed the petition I submitted to Parliament for the return of the marbles, if not with the new millennium, then with the Olympic Games of 2004," he said.

"I am sure that many deputies who are not acquainted with the issue, seeing the exhibition, they will be convinced of the Greek arguments, and I expect that the number of 111 will increase significantly," he added.

The event was attended by MPs from all parties, Greek and Cypriot diplomatic officials, writers and scholars, including historian William St. Clair, who revealed the damage caused to the marbles by maintenance works at the British Museum prior World War II.

Athens News Agency

[11] Central bank to slap new curbs on credit-happy banks

Athens, 20/07/1999 (ANA)

Speaking to Flash radio station after the release of credit expansion data that showed sharp growth, Mr. Garganas said the central bank was displeased with the breach by commercial banks of curbs imposed two months ago; and new penalties were in the pipeline.

The steep rise in credit growth - especially consumer loans - led customers into debt and created losses for banks due to non-repayment, the deputy governor said. According to the central bank's data for May, overall credit expansion grew by 10.3 perc ent against the same month of 1998. In April, credit expansion was running at 9.5 percent.

The Bank of Greece's target for 1999 is a rate of expansion of seven percent to nine percent, a figure tied into a planned decline in consumer price inflation.

On May 30, consumer loans totalled 1.127 trillion drachmas, up 47.4 percent year on year from May last year. The increase was 47.9 percent in April year on year.

Housing loans rose 21.7 percent year on year to 1,685 trillion drachmas, against an increase of 20.4 percent in April.

Also marking a steep rise were loans in foreign currency, which increased by 37.9 percent in May year on year against a rise of 37.4 percent in April.

Banks are seeking to attract consumers in a fiercely competitive loans market, fuelling credit expansion.

To try to curb the phenomenon, the central bank three months ago ordered commercial banks to contain their credit growth to 12.5 percent in 1999.

Banks that fail to comply have to deposit an amount equivalent to the excess at the central bank, interest-free.

The measure came into force in April, and so far has not been successful, jeopardising the country's inflation targets.

Athens News Agency

[12] Stocks hit new high, led by Wall Street

Athens, 20/07/1999 (ANA)

Sentiment was spurred by a new high on Wall Street at the end of last week and a healthy outlook for the domestic economy as it opens further to foreign investment.

The general index ended 2.68 percent higher at 4,528.38 points from 4, 410.33 points in the previous session. It has gained 65.42 percent since the start of the year.

Turnover was 175.153 billion drachmas from 179.690 billion drachmas, with 24,692,424 shares changing hands.

The way is clear for the market to hit 5,000 points with the next key resistance level at 4,650 points, technical analysts said.

A correction between the two levels is expected, the analysts added.

The key banking sector also recorded a new high, rising above 10,000 points. The increase led to a breakdown in the bourse's display panel, which is programmed to recognise numerical data up to 9,999 points.

Sector indices ended as follows: Banks (+2.62 pct), Leasing (-0.54 pct), Insurance (+0.92 pct), Investment (+3.85 pct), Construction (+1.81 pct), Industrials (+4.01 pct), Miscellaneous (+0.56 pct) and Holding (+4.83 pct).

The parallel market index for smaller capitalisation stocks ended 1.83 percent higher.

The FTSE/ASE 20 index for heavily traded stocks and blue chips rose 2.31 percent to 2,678.89.

Of 299 shares traded, advances outpaced declines at 215 to 73 with 11 issues unchanged.

National Bank of Greece ended at 23,350 drachmas, Alpha Credit Bank at 22, 700, Bank of Piraeus at 9,140, Ergobank at 41,205, Titan Cement (commom) at 30,800, Hellenic Petroleum at 2,900 and Intracom at 20,250.

Bonds flat in scant trade : Bonds in the secondary market were steady in thin trade with few investors playing the market.

Electronic trade totalled 11 billion drachmas from 34 billion drachmas in the previous session and 26 billion drachmas on Thursday.

Of yesterday's total, buy orders accounted for around 7.0 billion drachmas of turnover.

The ten-year bond was trading almost flat just above par to show a yield of 6.50 percent from 6.45 percent a day earlier and 6.38 percent on Thursday.

The yield spread over German bunds was 168 to 170 basis points from 170 basis points in the two previous sessions.

At the central bank's daily fix, the euro was unchanged against the drachma. It was set at 324.400 drachmas as in the previous session.

Athens News Agency

[13] Bank workers seek law on mergers and acquisitions

Athens, 20/07/1999 (ANA)

Speaking after a meeting with National Economy Minister Yiannos Papantoniou, union representatives said EFG Eurobank's direct appeal to shareholders of Ergobank - bypassing both the target bank's management and the central bank - was unprecedented, even abroad. It was the first hostile takeover bid in Greece.

OTOE said there was a legal vacuum concerning mergers and acquisitions. It proposed setting up a committee of government, monetary, bourse and union officials to tackle the issue.

Athens News Agency

[14] Greek advertising market dominated by foreign firms

Athens, 20/07/1999 (ANA)

In a sector report, IOBE said the domination of firms from abroad followed consolidation in the domestic market through mergers and acquisitions.

Sales posted by the largest companies in the sector grew by 3.9 percent in 1994-1997, but profits fell by 12.3 percent in the same period, the report said.

Domestic advertising firms had shown a preference for integration into foreign groups in order to gain better access to customers abroad and the chance to improve their technology, it said.

Athens News Agency

[15] Minoan Lines completes Dr 77.4 bln share cap rise

Athens, 20/07/1999 (ANA)

The share offer was for existing shareholders and institutional investors at home and abroad. The private placement to institutionals was oversubscribed by 1.3 times, Minoan Lines said in a statement.

The company's market capitalisation is now one billion US dollars, the statement said.

The "job rotation" model, combining continuing education and training for both the unemployed and employed individuals, has reportedly been successfully applied here.

The programme has been ratified by the European Union's relevant department and is being implemented in 13 EU countries with the participation of 35 agencies.

The programme is being implemented in Greece in the framework of the EU ADAPT initiative with the Biotechnical Chamber of Thessaloniki being the leading agency.

The system was successfully applied in the pret-a-porte sector, so far.

Athens News Agency

[16] Athens Foreign Exchange

Athens, 20/07/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             317.172 324.526
Can.Dollar            213.399 218.347
Australian Dlr        208.310 213.140
Pound Sterling        493.976 505.429
Irish Punt            408.608 418.082
Pound Cyprus          557.504 570.430
Pound Malta           739.039 769.832
Turkish pound (100)     0.066   0.069
French franc           49.058  50.196
Swiss franc           200.315 204.959
Belgian franc           7.977   8.162
German Mark           164.536 168.351
Finnish Mark           54.124  55.378
Dutch Guilder         146.028 149.414
Danish Kr.             43.269  44.272
Swedish Kr.            36.879  37.734
Norwegian Kr.          39.666  40.586
Austrian Sh.           23.386  23.929
Italian lira (100)     16.620  17.005
Yen (100)             264.110 270.234
Spanish Peseta          1.934   1.979
Port. Escudo            1.605   1.642

Foreign Exchange      Buying  Selling
New York              317.172 324.526
Montreal              213.399 218.347
Sydney                208.310 213.140
London                493.976 505.429
Dublin                408.608 418.082
Nicosia               557.504 570.430
Paris                  49.058  50.196
Zurich                200.315 204.959
Brussels                7.977   8.162
Frankfurt             164.536 168.351
Helsinki               54.124  55.378
Amsterdam             146.028 149.414
Copenhagen             43.269  44.272
Stockholm              36.879  37.734
Oslo                   39.666  40.586
Vienna                 23.386  23.929
Milan                  16.620  17.005
Tokyo                 264.110 270.234
Madrid                  1.934   1.979
Lisbon                  1.605   1.642

Athens News Agency

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