Athens News Agency: Daily News Bulletin in English, 99-09-22

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

CONTENTS

[01] G. Papandreou refers to opportunity for new Balkan rapprochement

[02] Final death toll from Sept. 7 reaches 143; 10,000 buildings ruled dangerous

[03] Turkish delegation visits Sappes municipality

[04] Early elections denial

[05] Minister, seismologists dismiss latest quake rumours

[06] Clinton assures of interest in solving Cyprus issue

[07] To the "Daily Bulletin" subscribers

[08] Rokofyllos sworn in as alternate FM

[09] Stocks slump on warnings, new measures

[10] Banks agree to lower deposit rates

[11] Social welfare spending rises 8.7 pct in 1999

[12] Computer Logic launches IPO today

[13] Gov't defends bourse transparency plan

[14] Three-year bond yield almost flat

[15] OTE raises local rates, cuts overseas charges

[16] National Bank opens new branch in Thessaloniki

[17] Alpha Credit Bank bond gets rating from Moody's

[18] Thrace Plastics buys Shell subsidiary

[19] National Securities offers quake aid

[20] Athens Foreign Exchange

[01] G. Papandreou refers to opportunity for new Balkan rapprochement

NEW YORK, 22/09/1999 (ANA - M. Georgiadou/T. Ellis)

"There is a chance at a new rapprochement, so that with new means and new ways we can pursue the just causes of Hellenism and the meaning of a peaceful coexistence in the region," Mr. Papandreou said at a reception held in his honour by Greece's permanent representative to the United Nations.

He said that, in the wake of the Kosovo conflict, there were prospects for a new Balkan peninsula of stability and peace in which Greece has and could continue to play a substantive role, "shaping a new Europe an vision, big enough for all neighbouring countries, including Turkey."

This required, however, significant internal changes in these countries, he added. Greece and Cyprus could be the driving force behind these efforts.

The response from both Greece and Cyprus to the devastating Aug. 17 quake in Turkey had shown that Hellenism could rise above age-old enemities, he said.

"It (Hellenism) showed its superiority, its humanitarian feelings, and its values, that it can rise above problems, above hostilities, above clashes and put the human factor, humanity, first," he said.

"This created a new historical opening and a new opportunity, which must be seized, and sent a message of friendship between the peoples of Greece and Turkey that must be listened to by the political leaderships of the two sides," he said.

He said that Greece's overriding concern was a resolution of the Cyprus problem and that Cyprus must be included in the European Union. "We have, with the Cypriot government, planned steady and specific steps in this direction," he added.

He said that Alternate Foreign Minister Yannos Kranidiotis, who died last week in a plane accident, would be sorely missed, particularly at this critical juncture, when Turkey's potential candidacy for EU membership comes up for discussion in few months and Greek and Turkish Cypriots are to begin talks on the Cyprus issue.

Meetings : In another matter, Mr. Papandreou and his counterpart from the Former Yugoslav Republic of Macedonia (FYROM) Alexander Dimitrov examined the possibility of developing an initiative with the tabling of a joint draft resolution for stability in the Balkans.

The two ministers met here on Monday afternoon local time, on the sidelines of the UN General Assembly.

Mr. Papandreou said the purpose of the initiative is to have the UN adopt a wider policy on the Balkans, aiming at the reconstruction of the area.

"We will have cooperation with two other countries, Albania and Bulgaria, and if we agree on the text, we might have time to table it now. If we see that there are still some technical details we will do it at another stage, " Mr. Papandreou said.

He said that Greece's permanent representative to the UN Mr. Gounaris has been appointed as the country's new negotiator in talks on the name of FYROM. Mr. Gounaris will meet the UN's special envoy on the issue of the name Mathew Nimitz on Sept. 29.

Earlier, Mr. Papandreou and his European Union counterparts met Russian Foreign Minister Igor Ivanov and discussed the situation in Russia, the crisis in Dagestan, the situation in Kosovo and the Balkans stability pact.

"Mr. Ivanov's views on the Balkans are close to Greek views," Mr. Papandreou said.

"We believe, of course, that there should be every help for democratisation in Yugoslavia. In parallel, however, we should not isolate Yugoslavia, particularly at this moment when there are intense humanitarian needs since winter is approaching. And we stressed that an independent state in Kosovo cannot exist and that all future solutions should respect the Security Council's relevant decisions which speak of a solution within Yugoslavia," he added.

The foreign minister was due to meet yesterday afternoon local time with British envoy for Cyprus Sir David Hannay.

Mr. Papandreou was due to meet his Yugoslav counterpart Mr. Jovanovic yesterday but the meeting was cancelled since the US refused to give the Yugoslav minister a visa to come to New York to represent his country at the UN General Assembly.

Athens News Agency

[02] Final death toll from Sept. 7 reaches 143; 10,000 buildings ruled dangerous

Athens, 22/09/1999 (ANA)

Meanwhile, inspections on buildings affected by the devastating earthquake centred northwest of central Athens will be extended to other northern municipalities, bringing a total of 57 in Attica and Viotia prefectures, Town Planning Minister Costas Laliotis said.

Of the 145,000 buildings already checked, just under 10,000 have been ruled "dangerous" and will have to be demolished; about 43,000 need repairs, while more than 91,000 have been ruled safe.

One of the affected structures, the Athens Metropolitan Cathedral will have to remain closed to the public for a certain period of time and undergo repairs for problems which first appeared in a 1981 quake and were accentuated by the latest major quake.

Certain plants in the stricken areas close to the capital will also have to be transferred, Mr. Laliotis said.

Meanwhile, after a visit to the quake-stricken areas, main opposition New Democracy leader Costas Karamanlis accused the government of a lack of planning and dealing with the problems arising from the disaster.

He also noted what he called a lack of adequate policing in the worst affected districts, saying residents were apprehensive of moving into organised camps for fear of their abandoned houses being looted.

Finally, he charged the government with advertising non-existent works in connection with the rehabilitation of the homeless.

In another development, the new Orthodox Archbishop of America, Dimitrios, donated a check on behalf of the Archdiocese for 100,000 US dollars in aid for the quake victims. UNICEF also donated 30 million drachmas for the needs of children in the quake-s tricken areas.

Aftershocks : Two aftershocks were registered late Monday night, measuring 3.6 and 3.2 on the Richter scale, respectively.

In addition, a strong earthquake measuring 5.2 on the Richter scale was felt in northeastern Greece shortly after midnight yesterday, causing panic, but no injuries or damage were immediately reported.

The earthquake was recorded at 12:28 a.m., with its epicentre some 600 kilometres northeast of Thessaloniki, in the Sea of Marmara.

A Thessaloniki observatory spo-kesman said the tremor was felt in Evros and Rhodopi prefectures, and caused concern among residents in the towns of Orestiada, Alexandroupoli and Komotini.

Thessaloniki : In northern Greece, two seismologists from the Aristotelian University in Thessaloniki said the area's residents must face the long- term prospect of entering a period of seismic activity, although the next five to 10 years provide adequate time to bolster the city's defences against earthquakes.

Professors Dimitris Panayiotopoulos and Eleftheria Papadimitriou spoke at a meeting of experts and local government authorities on the issue of anti- seismic measures for the city.

All the experts expressed a hope that their planning would be of no use, but said the city and wider region had to be prepared for any eventuality, both in organisation and in infrastructure.

The overriding concern was that of constructing buildings able to resist earthquakes and bolstering those which did not have the necessary features.

Thessaloniki University Prof. Georgios Penelis said that reducing seismic risk was such a costly endeavour that it had not been implemented anywhere in the world. It had been introduced as legislation just once, in 1994 in the United States, for the states of Alaska and California, and this measure was related only to public buildings, he noted.

Prof. Penelis said he had conducted a study for the implementation of such a project on 500 buildings, saying costs at an initial stage came to 30 million drachmas, and at a second stage to 600 million drachmas. The drafting of a study was estimated at 2.5 billion drachmas and implementing recommended changes at between 25-30 billion drachmas.

Thessaloniki Prefect Costas Papadopoulos, however, announced his decision to begin a pilot project for the city and proposed a special surcharge which could in the future be included in municipal rates.

Thessaloniki prefectural authorities have in any case already begun inspections of school buildings in the region.

Athens News Agency

[03] Turkish delegation visits Sappes municipality

Athens, 22/09/1999 (ANA)

Responding, MP Burhan Kara said "in the near future the world would witness a strong friendship between the two peoples," which could be strongly promoted through cooperation between municipalities.

Evren Bulut, a deputy for the eastern Thrace city of Edirne, stressed the importance of cross-border economic cooperation in promoting better relations.

Sappes and the Turkish town of Marmara Ereglisi have signed a protocol of cooperation, which involves aid to the victims of last month's devastating earthquake in the neighbouring country.

Athens News Agency

[04] Early elections denial

Athens, 22/09/1999 (ANA)

"There is not the slightest issue of resorting to early elections," government spokesman Dimitris Reppas said in response to press questions.

"It is others who desire early elections."

The government, and Prime Minister Costas Simitis himself, have repeatedly said that elections would be held at the end of the present four-year term, in the second half of 2000.

Athens News Agency

[05] Minister, seismologists dismiss latest quake rumours

Athens, 22/09/1999 (ANA)

"No one in the world has predicted the time, place and magnitude of an earthquake. Citizens should remain calm and judge logically," he said in response to a statement in Athens by the director of Sweden's Seismology Institute at Upsala, Ota Kulhanek, who said a new earthquake measuring either plus 0.5 or minus 0.5 of the 5.9 on the Richter scale quake of Sept. 7 was possible.

Veteran seismology professor Vassilis Papazahos, however, said Prof. Kulhanek was simply repeating the views of the VAN quake prediction team of Greek researchers, whose work in the field remains controversial.

Athens News Agency

[06] Clinton assures of interest in solving Cyprus issue

NEW YORK, 22/09/1999 (ANA - T. Ellis)

During a brief encounter on the sidelines of a dinner hosted by UN Secretary General Kofi Annan, Mr. Clinton said he wished to prove useful ahead of his planned visit to the region later this autumn, while the Greek minister pointed out that the interve ning period was suitable for the US administration to exercise pressures on the Turkish side, with a view to garnering greater flexibility on the part of Turkish Cypriot leader Rauf Denktash.

Athens News Agency

[07] To the "Daily Bulletin" subscribers

As you are aware, technological developments in the mass media sector are rapid. Today, all the news services are offered online. The "electronic newspaper" supplements, and in many cases replaces, the printed newspaper. Contact via e-mail also affords the ability for direct communication.

These developments, as many others, have also influenced our own work here at Athens News Agency (ANA), which is adapting all its services to the new technology. In the framework of these changes, the "Daily Bulletin" will - as of Jan. 2, 2000 - be converted from a printed to an electronic medium for our subscribers.

With this change, our subscribers will: a) receive our news items online, at the moment the news is breaking. b) receive the next day's "Daily Bulletin" on their screens at midnight, with the ability to print it out if they wish or simply view on screen. c) receive the "Bulletin" either via the paid ANA services on the Internet, or via e-mail sent to a subscriber's e-mail address. d) also have the ability, for a small surcharge, to utilise the ANA's English-language data bank, which contains all the news items appearing in the "Daily Bulletin" since 1992.

We believe that these changes, which correspond with the new function of the international and national news agencies, will satisfy subscribers' needs for immediate and credible information. In order to subscribe to this service, you must have a PC and a modem, or an e-mail address.

All who wish to continue receiving our services must prepare for these changes which, as stated, will commence on Jan. 2, 2000.

Takis Mantis, the director of ANA's informatics and telecommunications department, is at your disposal for any technical information on tel: 64.00.560 and 64.00.038.

I sincerely hope all our subscribers will adapt to these necessary technological changes.

Andreas Christodoulides

ANA General Director

Athens News Agency

[08] Rokofyllos sworn in as alternate FM

Athens, 22/09/1999 (ANA)

"My goal is to honour the prime minister's faith in choosing me," Mr. Rokofyllos said afterwards at the foreign ministry. The new alternate minister was received by Deputy Foreign Minister Grigoris Niotis, the ministry's secretaries-general and other officials. Mr. Rokofyllos said he was particularly moved to be assuming the post at the foreign ministry, particularly in the wake of the death of Yannos Kranidiotis. "(Kranidiotis) was a politician who worked with wisdom, talent and boldness," he said of his predecessor.

Mr. Rokofyllos said the goals of Economic and Monetary Union (EMU) entry and of Cyprus' European Union accession are issues which had priority in the immediate future.

Mr. Niotis, who spoke on behalf of Foreign Minister George Papandreou, who is in New York for the UN General Assembly, said that Christos Rokofyllos would be "valuable, useful and productive" for the course of issues at the ministry. "He is an experienced diplomat, a passionate speaker, lawyer and politician," he said.

Athens News Agency Athens 22/09/1999 (ANA)

Olympiakos Piraeus last night succumbed to Portugal's Porto 2-0 in an away match for Group E of the European Champions League.

Scorers: Esquerdinha 6, Jardel 47.

Athens News Agency

[09] Stocks slump on warnings, new measures

Athens, 22/09/1999 (ANA)

The general index ended 4.91 percent lower at 6,020.87 points, off the day's lows of 5,927 points.

Traders said some late bargain hunting helped the index end above the 6,000 point support level.

Turnover was around 500 billion drachmas, evidence that demand for selected stocks remained intact.

Sector indices ended as follows: Banks (-5.32 pct), Investment (-3.90 pct), Construction (-7.97 pct), Miscellaneous (-4.66 pct), Leasing (-6.00 pct), Insurance (-2.19 pct), Industrials (-4.94 pct) and Holding (-2.23 pct).

The parallel market index for smaller capitalisation stocks plunged 8.0 percent, while the FTSE/ASE 20 index for blue chip and heavily traded stocks fell 4.68 percent to 3,147.24 points.

Broadly, decliners led advancers by 278 to 23 with another six issues unchanged.

A total of 187 shares ended at the day's 8.0 percent limit down, while another six ended at the day's limit up.

Ergo Invest and Hellenic Petroleum were the most active stocks.

National Bank of Greece ended at 26,700 drachmas, Commercial Bank at 28,600, Alpha Credit Bank at 26,800, Minoan Lines at 8,832, Intracom at 26,000, Titan Cement at 37,430, Hellenic Petroleum at 6,300, Hellenic Telecoms at 7, 500 and Panafon at 8,400.

Bonds drop in jittery sell-off : Secondary bond market prices shed 20 to 30 basis points in nervous trade yesterday sparked by a decline in German paper and a sharp correction by the Athens bourse.

Electronic trade totalled 55 billion drachmas from 31 billion drachmas in the previous session and 29.5 billion drachmas on Friday.

The benchmark 10-year bond, which was still trading below par, lost 15 to 20 basis points, showing a yield of 6.64 percent from 6.61 percent a day earlier and 6.59 percent on Friday.

The 10-year paper's yield spread over German bunds was 154 basis points from 153 basis points in the previous session and 156 basis points on Friday.

At the central bank's daily fix, the euro rose against the drachma.

The euro was set at 326.990 drachmas from 326.570 drachmas a day earlier and 326.350 drachmas on Friday.

The central bank stepped in to prop up the drachma after bouts of selling. It sold around 20 million euros in a bid to curb that currency's ascent, but after the fix the euro again rose, hitting 327.05 drachmas.

Traders said the demand for euros in New York appeared to signal that investors abroad were pulling out of the domestic market.

The dollar gained against the drachma.

At the fix, it was set at 313.960 drachmas from 313.290 drachmas in the previous session and 313.470 drachmas on Friday.

Athens News Agency

[10] Banks agree to lower deposit rates

Athens, 22/09/1999 (ANA)

The move is part of a drive by the government and the Bank of Greece to lower, and then hold, inflation below 2.0 percent in order to attain entry into the euro zone on January 1, 2001.

Mr. Papademos has said that the central bank will not signal a decline in rates through its intervention and other rates until price stability is achieved below 2.0 percent.

The Bank of Greece has also taken punitive measures against banks who exceed loan limits in order to curb rapid credit expansion.

Mr. Papademos made a fresh appointment to discuss the gentlemen's agreement in November, when the market again will be watching for a signal on an across-the-board interest rate decline.

The government has secured similar gentlemen's agreements on price freezes and reductions with manufacturers and retailers as part of its counter- inflationary drive.

Athens News Agency

[11] Social welfare spending rises 8.7 pct in 1999

Athens, 22/09/1999 (ANA)

The figures were contained in the government's social budget submitted to parliament yesterday by Labour and Social Security Minister Miltiadis Papaioannou.

Social revenue is expected to total 7,751 billion drachmas in 1999 from 7, 076 billion in 1998, up 9.53 percent.

The state has contributed more this year to the revenue of social insurance organisations with its share totalling 2.99 percent.

Mr. Papaioannou underlined that the figures showed 1999 to be a year of fundamental increase in social spending.

The government's economic convergence programme had succeeded both in ensuring the country's future entry into the euro zone and safeguarding workers' incomes and social benefits, he said.

Deputy Social Security Minister Phivos Ioannidis said that in the period from 1993 to 1999 revenue in the social welfare budget had risen steadily.

Contributions to main social insurance funds rose to 1,484,414 million drachmas this year from 661,235 million drachmas in 1993.

Contributions to supplementary insurance funds increased to 182,406 million drachmas from 107,123 million drachmas in 1993, and health insurance contributions jumped to 44,223 million drachmas this year from 16,636 million drachmas in 1993.

The number of insured people and pensioners continued rising but remained within acceptable levels.

The number of insured people totalled 4,161,499 and pensioners 1,923, 938.

Athens News Agency

[12] Computer Logic launches IPO today

Athens, 22/09/1999 (ANA)

The public offering begins today and will be completed on Friday. Computer Logic will issue 805,410 new shares at a nominal value of 100 drachmas each and a sale price of 5,500 drachmas each.

The new capital will be used to finance the firm's investment programme which envisages expanding activities, developing new products, strengthening support and distribution networks and boosting cash flow. Computer Logic was founded in 1980.

Athens News Agency

[13] Gov't defends bourse transparency plan

Athens, 22/09/1999 (ANA)

Spokesman Dimitris Reppas said the government, which oversees the bourse through the national economy ministry, had a policy based on principle, not expediency.

Mr. Reppas noted that the measures were decided to enhance transparency in the market and therefore protect retail investors, who should remain calm.

National economy ministry officials described yesterday's decline on the Athens bourse as a normal correction of the market and said that the underlying trend remained positive.

Meanwhile, main opposition New Democracy party spokesman Aris Spiliotopoulos attacked the government's policy on the stock market.

He said it was unacceptable in any developed country that government officials intervened through statements and leaks, influencing the bourse's performance. In addition, the transparency measures had come late, Mr. Spiliotopoulos added.

Athens News Agency

[14] Three-year bond yield almost flat

Athens, 22/09/1999 (ANA)

The average weighed interest rate on the three-year bonds totalling 160 billion drachmas and paying an annual coupon of 7.60 percent rose slightly to 7.32 percent from 7.30 percent in the previous auction on July 20, 1999.

Bids submitted totalled 463.7 billion drachmas, three times more than the amount sought.

The public debt management agency said that demand in the auction reflected confidence in the Greek market.

Athens News Agency

[15] OTE raises local rates, cuts overseas charges

Athens, 22/09/1999 (ANA)

Hellenic Telecoms said it was increasing its local rates to seven drachmas from six drachmas per minute.

The company also announced it was lowering its prices on European Union calls from 140 drachmas to 125 drachmas per minute and its connection fee from 15,000 drachmas to 10,000 drachmas.

Internet rates have also been reduced.

Athens News Agency

[16] National Bank opens new branch in Thessaloniki

Athens, 22/09/1999 (ANA)

The branch will offer all banking services offered by the National Bank of Greece Group, and has a 24-hour automated teller machine. The official launch of the branch will be held on October 7.

Athens News Agency

[17] Alpha Credit Bank bond gets rating from Moody's

Athens, 22/09/1999 (ANA)

Due in 2009, the bonds can be redeemed after 2004 at the issuer's option.

Moody's referred to the bank's strong market position and developing franchise, enabling it to benefit from growth opportunities.

However, it also mentioned the challenges that Alpha faces in absorbing and fully integrating the operations of Ionian Bank.

Athens News Agency

[18] Thrace Plastics buys Shell subsidiary

Athens, 22/09/1999 (ANA)

The domestic firm will raise part of the amount through a share capital rise of 7.8 billion drachmas. The remainder will come from existing company funds. The acquisition forms part of Thrace's plan to expand into European Union countries.

In the wider European area, the two firms represent more than 20 percent of sales in the sector.

Sigma Securities was consultant in the deal.

Athens News Agency

[19] National Securities offers quake aid

Athens, 22/09/1999 (ANA)

The brokerage has also donated 10 million drachmas to a fundraising drive for the victims by the Association of Stock Exchange Members.

Athens News Agency

[20] Athens Foreign Exchange

Athens, 22/09/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             311.448 318.669
Can.Dollar            210.800 215.688
Australian Dlr        201.277 205.943
Pound Sterling        506.952 518.706
Irish Punt            411.870 421.420
Pound Cyprus          561.472 574.490
Pound Malta           730.209 760.634
Turkish pound (100)     0.061   0.064
French franc           49.450  50.597
Swiss franc           202.080 206.766
Belgian franc           8.041   8.227
German Mark           165.850 169.695
Finnish Mark           54.556  55.821
Dutch Guilder         147.195 150.608
Danish Kr.             43.662  44.674
Swedish Kr.            37.809  38.686
Norwegian Kr.          39.593  40.511
Austrian Sh.           23.573  24.119
Italian lira (100)     16.753  17.141
Yen (100)             297.719 304.622
Spanish Peseta          1.949   1.994
Port. Escudo            1.618   1.655

Foreign Exchange      Buying  Selling
New York              311.448 318.669
Montreal              210.800 215.688
Sydney                201.277 205.943
London                506.952 518.706
Dublin                411.870 421.420
Nicosia               561.472 574.490
Paris                  49.450  50.597
Zurich                202.080 206.766
Brussels                8.041   8.227
Frankfurt             165.850 169.695
Helsinki               54.556  55.821
Amsterdam             147.195 150.608
Copenhagen             43.662  44.674
Stockholm              37.809  38.686
Oslo                   39.593  40.511
Vienna                 23.573  24.119
Milan                  16.753  17.141
Tokyo                 297.719 304.622
Madrid                  1.949   1.994
Lisbon                  1.618   1.655

Athens News Agency

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