Athens News Agency: Daily News Bulletin in English, 99-08-28

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

CONTENTS

[01] Greece launches derivatives market

[02] Cabinet approves Dr 15 trillion development plan

[03] Stocks edge up, manage to hold 5,000 pts

[04] Greece to offer savings bonds

[05] Support from UK for return of Parthenon Marbles

[06] Improved Greek-Turkish relations will not be temporary, Yilmaz says

[07] PM Simitis to meet FYROM counterpart in Florina

[08] Kranidiotis to visit London for talks with Cook

[09] Stephanopoulos on S. Albania's ethnic Greeks

[10] PM dismisses early election rumours

[11] Athens Foreign Exchange

[01] Greece launches derivatives market

The new futures and options market, which is initially aimed at institutional investors, should eventually attract sizeable capital inflows from abroad.

The chairman of ADEX says that the new market will complement the Athens Stock Exchange and boost the status of Greek markets internationally.

The first trading session of the new derivatives market closed with a volume of 602 contracts worth 3.4 billion drachmas, slightly exceeding forecasts of less than three billion drachmas.

September futures, the nearest month, accounted for three quarters of volume at 444 contracts.

October and December futures accounted for the rest at 148 and 10 contracts respectively.

There was no demand for contracts dated November 1999 or March and June 2000.

Analysts expect that contracts will exceed 5,000 a day when ADEX is fully operational and investors have familiarised themselves with the market.

Currently available are futures on the FTSE/ASE-20 index of blue chips and heavily traded stocks.

New futures deals and options are to be phased in. Athens News Agency

[02] Cabinet approves Dr 15 trillion development plan

"The face of Greece will continue to change at a very rapid pace. Its development potential will receive major reinforcement, citizens will find themselves in a better position, and the country will gain fresh vitality," Mr. Simitis told reporters after the five-hour cabinet meeting.

Approved was the allocation of funds for the plan, which the government will submit to the European Union for endorsement. Financing is expected from the EU's third Community Support Framework.

The total of 15 trillion drachmas envisages 12.5 trillion from the state and the EU, pending approval, and an anticipated 2.5 trillion drachmas from the private sector.

Mr. Simitis said the programme gave priority to upgrading human resources (education, combatting unemployment etc), infrastructure (major public works), industry, technology and trade.

Also of importance were boosting competitiveness in agriculture, improving the quality of life for the public, and bringing information technology to the private and public sectors.

The prime minister underlined the importance of the private sector taking part in the projects, especially in sectors like tourism.

Deputy National Economy Minister Christos Pahtas told reporters that of the 12.5 trillion drachmas expected from the state and EU, 4.7 trillion had been allocated to basic infrastructure, of which 3.4 trillion would be absorbed by the environment and public works ministry, and 1.2 trillion by the transport ministry.

Human resources had been allocated more than 2.0 trillion drachmas, agriculture 1.35 trillion drachmas, and the environment 1.0 trillion drachmas.

Remaining funds are destined for health and welfare, energy, manafacturing- services etc.

Again of the 12.5 trillion drachma total, the sectors of development, human resources and quality of life had received a third each, Mr. Pahtas added.

National Economy and Finance Minister Yiannos Papantoniou told the Athens News Agency that a key aspect of the development plan was to help complete major infrastructure works underway.

The projects are the Egnatia Way, the Patras-Thessaloniki motorway, metro networks for Athens and Thessaloniki, the Rio-Andirrio bridge link, and modernisation of the railways.

-- Opposition reactions-- Reacting to the prime minister's statements the Communist party of Greece charged that the "Third Community Support Framework will be mainly shared out to big capital and its affiliates with a view to corrupting consciences and buying votes, while the peo ple will have thrown at them the bones of the Lucullean meals of the plutocracy". The Coalition of the Left (Synasmpismos) said that Mr. Simitis's vague announcements would not secure real convergence with the other European economies. The Liberals, who are led by Stephanos Manos, stressed the importance of the method of self- financing in projects, which would tap the creativity and efficiency of the private sector with inventive ideas. Athens News Agency

[03] Stocks edge up, manage to hold 5,000 pts

The general index ended 0.42 percent higher at 5,144.01 points, reversing an early decline.

Turnover was heavy at 316.017 billion drachmas with 42,734,477 shares changing hands. Dealers said the market was trying to find new support levels before another attempt to break into record territory next week. The Banking sector underperformed the market to end 1.82 percent lower, hit by profit taking.

Other sector indices ended as follows: Leasing (+0.70 pct), Insurance (+0.36 pct), Investment (+1.29 pct), Construction (+7.27 pct), Industrials (+1.72 pct), Miscellaneous (+2.05 pct) and Holding (+3.04 pct).

The parallel market index for smaller capitalisation stocks ended 3.90 percent higher while the FTSE/ASE 20 index for blue chip and heavily traded stocks ended 0.91 percent lower at 2,801.87 points.

Broadly, advancers led decliners by 235 to 63 with another four issues unchanged.

A total of 64 stocks ended at the day's 8.0 percent limit up.

Egnatia Bank and Mytilineos were the most heavily traded stocks.

Unisoft shares jumped 99 percent in their first day of trading on the parallel market. National Bank of Greece ended at 23,195 drachmas, Alpha Credit Bank at 23,500, Commercial Bank at 29,650, Titan Cement at 34,500, Hellenic Petroleum at 3,130, Intraco m at 25,620, Minoan Lines at 7,350, Panafon at 8,995 and Hellenic Telecoms at 6,575. Bonds rise again in lower turnover Secondary market bond prices posted gains for another session in thin trade, believed to have been boosted outside trading hours by buying interest from abroad. Electronic turnover was sharply lower at 8.0 billion drachmas from 62 billion drachmas in th e previous session and 27.5 billion drachmas on Wednesday.

Despite the low turnover, traders said a fair amount of trading was effected outside the electronic system, much of it by investors from abroad.

The benchmark 10-year bond was trading higher than a day earlier, showing a yield of 6.39 percent from 6.34 percent in the previous session and 6.49 percent on Wednesday.

The yield spread over German bunds was 161 basis points from 163 basis points in the previous session and 174-175 basis points on Wednesday. At the central bank's daily fix, the euro crept down versus the drachma. It ended at 326.580 drachmas from 326 .690 drachmas in the previous session and 326.460 drachmas on Tuesday and Wednesday.

Also at the fix, the dollar edged up against the drachma and remained high in line with its performance in markets abroad.

The greenback was set at 312.280 drachmas from 312.220 drachmas a day earlier and 312,450 drachmas on Wednesday. Athens News Agency

[04] Greece to offer savings bonds

[05] Support from UK for return of Parthenon Marbles

In an article titled 'We were wrong, we should return the friezes' Mr. Henser said that some time the British must admit that they have been wrong and that as time goes by it becomes more and more difficult to resist the idea that the Parthenon Marbles removed by Lord Elgin, now housed in the British Museum, must be returned to Greece.

The British people must admit that they have been lucky enough to have extended their hospitality to the friezes for a number of years and again the friezes themselves have been lucky enough they were removed from the Parthenon at that specific point in time, the article said.

Mr. Henser however, noted that things have changed and that soon a way must be found for the return of the friezes to Athens.

In continuation, the author described the way the friezes were removed by Lord Elgin and stressed that it is now constantly and permanently admitted that the friezes were acquired in a clearly inappropriate manner, through a Turkish firman which was no t entirely clear whether Lord Elgin was entitled to remove them from the Acropolis.

Finally, Mr. Hensen said in his article that the argument of doing a better service to the nation of origin by keeping the friezes abroad is no longer valid and that all the British people are left with is a sense of embarrassment, not wishing to admit that they are wrong by keeping the friezes in the British Museum. Athens News Agency

[06] Improved Greek-Turkish relations will not be temporary, Yilmaz says

During an interview to a Turkish television channel, Mr. Yilmaz also said that the dialogue that has begun between Greek Foreign Minister George Papandreou and his Turkish counterpart Ismail Cem should become "permanent policy of the (Turkish) governmen t".

Mr. Yilmaz, whose party is in the government coalition, also said "I think that we can find solutions to all problems, the problem of Cyprus and the Aegean, as long as both sides do not attempt to secure advantages one over the other.

"There are no problems which can not be resolved," he added.

Meanwhile, the Turkish press continued to praise Greece's contribution in humanitarian aid to the earthquake-stricken country, while the Greek embassy in Ankara and Greek counsulates have been inundated with telephone calls and flowers sent by citizens thanking Greece for its support.

In a related development, Bosphorus University Dean Ustun Erguder expressed the gratidute of the institution for the 30 million drachma grant of the Onassis Foundation to its President Stelios Papadimitriou.

The grant was offered to cover the immediate needs of the university and students as well as urgent repairs to buildings.

In his letter Mr. Erguder noted "the misery and damages which have befallen upon our friends as well as on all of our nation are beyond any imagination...Unfor- tunatelly there are students and facutly members among the victims of the recent destructive earthquake."

According to the letter, the Onassis foundation grant will be used to set up a scholarship fund for students whose families were worst affected by the quake.

Mr. Erguder concluded "we are deeply moved by the solidarity you and the Greek nation showed and we appreciate the generous offer of the (Onassis) Foundation." Athens News Agency

[07] PM Simitis to meet FYROM counterpart in Florina

Greek Prime Minister Costas Simitis, who is expected to arrive today in the city of Florina, northwestern Greece, will meet with Mr. Georgievski at the city's museum.

Mr. Simitis will host Mr. Georgievski to dinner, also to be attended by the foreign ministers of Greece and FYROM George Papandreou and Alexander Dimitrov respectively.

Mr. Theodorakis will conduct the symphony orchestra of Belgrade State Radio and Television. A FYROM choir, the orchestra of the Athens Municipality and the popular orchestra "Mikis Theodorakis" are also participating.

In another development, writer Giorgos Skourtis will officially announce the candidacy of Mr. Theodorakis for the Nobel Peace Prize in the afternoon. Athens News Agency

[08] Kranidiotis to visit London for talks with Cook

The two men are expected to discuss bilateral relations, European Union issues, the Cyprus issue, the accession course of Cyprus, Greek-Turkish relations and Turkey's relations with the Union.

Mr. Kranidiotis is also expected to meet on Monday with Britain's special envoy on the Cyprus problem Sir David Hannay.

In an unrelated development, Mr. Kranidiotis on Thursday met with the Archbishop of America Dimitrios and discussed issues regarding Greek ex- patriates.

Following the meeting, Mr. Kranidiotis said that the new Archbishop is trusted and respected by the Greek people, adding that they discussed in depth educational issues of the ex-patriate community and national issues. Athens News Agency

[09] Stephanopoulos on S. Albania's ethnic Greeks

"If Albania, as a poor and much tried country, is unable to secure this, then Greece should be able to provide the necessary assistance", the President said at the opening day of the three-day International Conference of Epirots in Perdika, northern Gre ece.

The President of the Republic in his speech made special reference to the need of supporting the ethnic Greeks of Southern Albania and enlarging the officially recognised "minority" area there.

Also speaking at the conference Deputy Foreign Minister Grigoris Niotis and World Council of Hellenes Abroad (SAE) President Andrew Athens expressed satisfaction over the establishment of health centres for ethnic Greeks in former Soviet Union republics , a model now also being followed in Southern Albania. Athens News Agency

[10] PM dismisses early election rumours

Responding to reporters after the end of a cabinet session, he also expressed confidence that the present parliament would be able to elect a president of the republic with the required three-fifths majority in March, thereby avoiding having to be dissolved. Athens News Agency

[11] Athens Foreign Exchange

US Dollar 309.782 316.964 Can.Dollar 207.149 211.952 Australian Dlr 196.019 200.564 Pound Sterling 491.734 503.135 Irish Punt 411.354 420.891 Pound Cyprus 560.877 573.881 Pound Malta 723.312 753.450 Turkish pound (100) 0.064 0.067 French franc 49.389 50.534 Swiss franc 202.294 206.984 Belgian franc 8.031 8.217 German Mark 165.642 169.483 Finnish Mark 54.488 55.751 Dutch Guilder 147.010 150.419 Danish Kr. 43.592 44.603 Swedish Kr. 37.222 38.085 Norwegian Kr. 38.896 39.798 Austrian Sh. 23.543 24.089 Italian lira (100) 16.731 17.119 Yen (100) 278.137 284.586 Spanish Peseta 1.947 1.992 Port. Escudo 1.616 1.653

Foreign Exchange Buying Selling New York 309.782 316.964 Montreal 207.149 211.952 Sydney 196.019 200.564 London 491.734 503.135 Dublin 411.354 420.891 Nicosia 560.877 573.881 Paris 49.389 50.534 Zurich 202.294 206.984 Brussels 8.031 8.217 Frankfurt 165.642 169.483 Helsinki 54.488 55.751 Amsterdam 147.010 150.419 Copenhagen 43.592 44.603 Stockholm 37.222 38.085 Oslo 38.896 39.798 Vienna 23.543 24.089 Milan 16.731 17.119 Tokyo 278.137 284.586 Madrid 1.947 1.992 Lisbon 1.616 1.653 Athens News Agency/END

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