Athens News Agency: Daily News Bulletin in English, 05-11-30

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

CONTENTS

[01] Greek economy to improve in 2006-07, OECD report

[02] Greek govt approves draft bill on reforming public sector enterprises

[03] Govt's reforms damage workers' rights, main opposition says

[04] KKE says government attempting to complete privatisations, overturning of labour rights

[05] Changes and reforms to continue, PM stresses

[06] Wider Hellenism national capital for Greece, deputy FM says

[07] FM Molyviatis to meet U.S. senior official DiCarlo on Wednesday

[08] Maximum readiness of Armed Forces a priority

[09] PASOK leader to attend Socialist International's SE Europe Committee meeting in Bulgaria

[10] Mantouvalos urges MPs to lift his immunity in letter to Parliament

[11] Bill on national, prefectural and municipal elections tabled in Parliament

[12] Money-laundering bill revised

[13] SYN leader Alavanos discusses relations between the State and the Church

[14] PASOK founding member, MP Tsimas dies

[15] New foreign ministry website to be presented on Wednesday

[16] Greece, China lay foundations for closer commercial ties

[17] Gov't: No rift with Credit Agricole over sale of Emporiki Bank

[18] Debate on 2006 state budget begins at Parliamentary Economic Committee

[19] Greece backs new EU approach to industry policy

[20] Greek tourism has favourable growth prospects, minister says

[21] Agriculture minister briefs President Karolos Papoulias on prospects in agricultural sector

[22] Greek firms show flat pre-tax profits in 2004

[23] Finmin meets German employers trade group

[24] Cost of voluntary retirement scheme pushes Hellenic Telecoms in red in Jan-Sept

[25] Intralot raises stake in Turkey's Inteltek

[26] Egnatia Bank says profits up 34.7 pct in Jan-Sept

[27] New recycling projects under way in Imathia and Lamia

[28] Romanian banks seek aid of Greek trade group

[29] Stocks finished lower in a lacklustre market, traders said.

[30] Greek film wins European Film Festival top prize

[31] Exhibition 'From Byzantium to modern-day Greece' at Onassis Cultural Centre in New York

[32] Athens mayor opposed to cars, tolls in city centre

[33] Alumni of Italian universities to meet in Halkidiki

[34] Wife of Greek Ambassador to Turkey will meet 40 children on occasion of Int'l Children's Day

[35] Court to hear "17N" appeal on Friday

[36] Ano Liossia landfill to close indefinitely from December 4

[37] President Papadopoulos says UNSG to start new initiative for Cyprus

[38] Cyprus President Papadopoulos says Turks violated status quo

[39] UNFICYP remains engaged in solving Ledra Street crossing point issue

[40] Cyprus President meets with Irish House Speaker

[01] Greek economy to improve in 2006-07, OECD report

Greek economic growth is expected to slow to 3.3 percent in 2006 from 3.5 pct this year and to rise again to 3.5 pct in 2007, the Organisation for Economic Cooperation and Development (OECD) said on Tuesday.

In its world economic outlook report, the Paris-based organisation said economic growth slowed to 3.5 pct this year, from 4.7 pct in 2004, due a decline in investment activity after the Olympic Games. OECD, however, stressed that Greek economic growth surpassed the Eurozone's average growth rates.

The organisation forecast Greek inflation to slow to 3.25 pct in the next two years while the current accounts deficit to remain at high levels over the same period. The inflation rate is forecast to slow from 3.6 pct in 2005, to 3.4 pct next year and to 3.0 pct in 2007.

Public consumption is expected to fall to 1.3 pct in 2006 and 2007, from 2.9 pct this year.

OECD said Greece's fiscal deficit would remain above 3.0 pct of the country's gross domestic product over the next two years. The deficit is expected to total 4.5 pct of GDP this year, to fall to 3.2 pct in 2006 and rise again to 3.6 pct in 2007.

The organisation urged for a more efficient control of public spending and for new interventions in the pension system and public administration. It also supported changes in public sector enterprises.

OECD said an expected recovery in economic growth rates in 2007 would be a result of strong domestic demand in Greece, while investments are expected to benefit from a gradual fall in corporate taxes, the introduction of a new legislation offering investment incentives and a law promoting joint ventures between the public and private sectors.

Recent measures, aimed to strengthening flexibility in labour markets and boosting competition in product markets are also expected to contribute to higher growth rates and to boost employment in the country, OECD said. The organisation expects the unemployment rate to reach 10.6 pct this year and to fall to 10.5 pct in 2006 and 10.3 pct in 2007.

Domestic demand will continue benefiting from favourable financial conditions in the country and low real interest rates. Demand is forecast to grow by 2.5 pct this year, from 4.5 pct in 2004 and to accelerate to 3.0 pct in 2006 and 3.4 pct in 2007.

Greek exports are forecast to grow strongly, from 7.8 pct this year to 8.2 pct in 2006 and 8.8 pct in 2007, while imports are forecast to grow by 1.3 pct, 7.2 pct and 7.1 pct over the same years, respectively.

OECD said a fiscal restructuring effort needed more control of primary spending and fundamental reforms in social spending and public administration. The organisation said it expected the country's general government's deficit to ease to 4.5 pct of GDP this year and to 3.2 pct in 2006 (including the government's temporary measures accounting for 0.6 pct of GDP). It noted, however, that lack of new structural measures would lead the deficit to 3.6 pct of GDP in 2007.

OECD stressed the significance of combatting tax evasion and supported government plans to improve the operation of public sector enterprises.

[02] Greek govt approves draft bill on reforming public sector enterprises

An inner cabinet meeting on Tuesday unanimously approved a draft legislation aiming to promote changes in public sector enterprises.

Speaking to reporters, after the meeting, Economy and Finance Minister George Alogoskoufis said the draft bill would bring radical changes and stressed it would lead to a restructuring of public enterprises and organisations. New hirings to enterprises in which the state owns an equity stake of more than 51 pct would be made through ASEP - the civil service's hiring agency.

Interior Minister Prokopis Pavlopoulos said public sector enterprises in which the state was not a majority shareholder could request ASEP's assistance in new hirings.

Transport and Communications Minister Mihalis Liapis said the new legislation was promoting new standards for economic management and supervision of public sector enterprises with the aim to offer better services to citizens and combat overspending. Public sector enterprises would operate on market criteria and would be supervised by an Inter-ministerial Commission, Liapis said.

Labour Minister Panos Panagiotopoulos said public sector enterprises would become more competitive and stressed that a view of permanent work positions in the public sector was outdated and offended those working in the private sector.

Commenting on the draft bill during Tuesday's regular press briefing, government spokesman Theodoros Roussopoulos described it as a "significant breakthrough for the refoundation of the State, which was a pre-election promise made by New Democracy".

He stressed aspects of the new law, such as the introduction of private-sector management principles and international accounting standards for public enterprises and organisations, or the shift of bourse-listed state utilities into the private sector.

The spokesman also focused on the changes to labour relations with public-sector enterprises and utilities, so that newly-hired staff were recruited with the same terms as equivalent private-sector companies, with new labour contracts drawn up in line with labour law and the rationalisation of wages of the presidents, governors and board-members of public-sector companies.

He clarified that ASEP would still be responsible for the hiring of new staff at public-sector enterprises not listed on the Athens bourse and for bourse-listed companies in which the state held a majority share - even though they would no longer be considered part of the state sector.

Also preserved is the status quo for the past 10 years, where recruitment outside ASEP is allowed only for state-run public utilities that are listed on the stock exchange, in which the state holds a minority share.

[03] Govt's reforms damage workers' rights, main opposition says

The government's reforms damage workers' rights whether in terms of pay or labour relations, main opposition PASOK Spokesman Nikos Athanassakis said commenting on the goverment's draft bill on reforming public sector enterprises on Tuesday.

Athanassakis accused the government of implementing policies that "continuously lead to an impasse and that public sector enterprises are on a steady decline making losses when they used to be profitable."

Further, PASOK's spokesman said that the government tries to lay the blame for everything on workers and on public sector enterprises' social role, while trying to unilaterally change working terms and conditions.

The government's "decisions and moves thus lead to insecurity among workers and uncertainty in the marketplace," he said.

The draft bill, which was unanimously approved by the inner cabinet on Tuesday, provides for the introduction of private-sector management principles and international accounting standards for public enterprises and organisations; and the shift of bourse-listed state utilities into the private sector, among other things.

[04] KKE says government attempting to complete privatisations, overturning of labour rights

The ruling New Democracy party government is attempting to complete privatisations and the overturning of working people's labour and social insurance rights with the bill on former public utilities, the Communist Party of Greece (KKE) said in an announcement on Tuesday.

KKE said that the aim is to "increase the profit-making of business groups and change labour relations at the expense of working people, particularly of young people, younger ages and young women in the public utilities sector and the public sector in general".

The announcement further said that the allegations of New Democracy and the main opposition PASOK party that privatisations are taking place to decrease the involvement of the state, deficits and the prices of products "are totally groundless".

The developments in past years prove the contrary, the announcement added.

Commenting on the same issue, Coalition of the Left, Movements and Ecology (Synaspismos) party leader Alekos Alavanos said that "in essence it is a war. Firstly, against public property which is beig led to a sale and, secondly, against youth which is now being condemned to flexible labour relations, to a new kind of contract labour and is losing the possibility of stable labour relations which existed in the public sector until today."

[05] Changes and reforms to continue, PM stresses

The government was determined to carry on with its policy of radical reform, Prime Minister Costas Karamanlis underlined on Tuesday, during an event at the Zappion building in Athens to mark the 30th anniversary of the Political Research and Communication Centre.

Karamanlis noted that courage and determination were needed to continue reforms and changes during the present era, in which both challenges and opportunities were increasing while Greece had lagged behind due to the mistakes and omissions of the past.

The premier said that Greece was behind the rest of Europe in the most crucial economic indicators and had entered the new age burdened with the problems of the past. He also stressed that the practices of the past could not be repeated.

"Solutions can't be found by covering up the problems, Greece does not go back," he added.

Fundamental for dealing with the problems was to have a strategy and the agreement of society, Karamanlis said and expressed confidence that the government had both.

He also reiterated the government's determination to deal head-on with phenomena of corruption and show zero tolerance for graft, while stressing that there was a change in climate and that the government was encouraging every effort for transparency.

During the last elections, the voters did not simply elect a new government but a new form of governance. They chose responsibility for the present and the future, Karamanlis added.

The premier referred to the bill for state-run public utility companies that was discussed during Tuesday's cabinet meeting, saying that it was introducing reforms and trimming down the broader public sector, introducing international accounting standards into the operation of state services and reinforcing the supervision of state-run public utilities by the appropriate bodies.

He said the bill would not impinge on the articles of labour law or that of the civil service recruitment body ASEP.

[06] Wider Hellenism national capital for Greece, deputy FM says

NICOSIA, 30/11/2005 (ANA/A. Viketos)

Skandalakis was speaking on Monday night at a conference organised by the Cyprus College in the framework of "Monday's University" on the issue of "Wider Hellenism. Cyprus-Greece. This small, great world."

Skandalakis stressed the need for research and browsing through causes shaping Greek identity, because their realisation will be a guide and compass to enable Greece and Cyprus to undertake suitable action for wider Hellenism to continue to exist and thrive in the future as well.

The deputy minister added that turning to young expatriates is an essential step and making them come closer to the motherland through the relevant agencies of the Greek and Cypriot states.

Lastly, Skandalakis said that all expatriate Greeks look forward to Greece and Cyprus, the two state entities of Hellenism, for support and substantial solidarity in their struggle to preserve their national identity and heritage.

[07] FM Molyviatis to meet U.S. senior official DiCarlo on Wednesday

Foreign Minister Petros Molyviatis will meet in Athens on Wednesday morning with U.S. Deputy Assistant Secretary for Europe and Eurasian Affairs Rosemary DiCarlo.

According to a foreign ministry announcement on Tuesday evening, Molyviatis will receive U.S. senior official DiCarlo at his office at the ministry.

[08] Maximum readiness of Armed Forces a priority

Deputy defence minister Vassilis Michaloliakos said Tuesday that the government's goal was maximum readiness, as the Armed Forces were at a very good level, and guaranteed peace and security for Greece and the wider region.

He added that this, however, required constant vigilance and improvement of personnel training, as well as modernisation of the armaments systems.

He was speaking during a visit to the Third Army Corps Headquarters in Larissa, where he was briefed by corps commander Lt.-Gen. Elias Petsas on the Corps activities, as well as the activities of the Multinational (NATO Deployable Corps) Headquarters operating at the installations.

Petsas told reporters that the Multinational Headquarters had successfully passed inspection in June.

[09] PASOK leader to attend Socialist International's SE Europe Committee meeting in Bulgaria

Main opposition Panhellenic Socialist Movement (PASOK) leader George Papandreou was due to depart on Tuesday night for Bulgaria where on Wednesday and Thursday he will take part in the meeting of Socialist International's Southeast Europe Committee, which he co-chairs with former prime minister and president of Romania's Social Democratic Party Adrian Nastase.

As announced by PASOK spokesman Nikos Athanassakis, Papandreou had a meeting on Monday with former Albanian foreign minister and current deputy Paskal Milo.

[10] Mantouvalos urges MPs to lift his immunity in letter to Parliament

Independent MP Petros Mantouvalos on Tuesday urged members of Parliament to vote in favour of lifting his parlia-mentary immunity in a letter to his colleagues.

Parliament is to debate and vote on the motion on Wednesday.

In his letter, Mantouvalos stressed that he wanted a chance to prove his innocence through Greek justice, "just as any other citizen of the country would do".

"I would not like there to be any trace of shadow that might blacken by name and my personal career," he said.

Last week, Parliament's Ethics Committee unanimously decided to recommend the lifting of immunity from Mantouvalos so that he could stand trial on charges of bribery and money-laundering.

The evidence against Mantouvalos implicates him in the possible bribery of judge Evangelos Kalousis, who is also up on charges of corruption.

A former deputy with ruling New Democracy, Mantouvalos unexpectedly resigned from the party's Parliamentary group last month in the wake of press reports linking him to the scandal and was shortly afterwards expelled from the party. He retained his seat in Parliament as an independent MP.

Judicial authorities came under criticism for the delay in sending the case file against the MP to Parliament, since the statute of limitations for the bribery charges against him expires in less than two weeks.

[11] Bill on national, prefectural and municipal elections tabled in Parliament

The interior ministry's bill on national, prefectural and municipal elections was tabled in Parliament on Tuesday night. The bill anticipates, among other things, that in elections for prefects, mayors and municipal councillors the ticket achieving a majority of at least 42 percent of the valid ballots is considered the winner.

Blank ballots are not included among the valid ballots in determining the election indicator.

[12] Money-laundering bill revised

Justice Minister Anastassios Papaligouras has revised part of the bill on money-laundering thus securing the consensus of all parliamentary parties on Tuesday.

Specifically, Papaligouras has revised article 3 of the bill clarifying that only those sentenced to one year in prison for a misdemeanor, which act resulted in the legalisation of income, will receive a shorter term for the 'money-laundering' than for the misdemeanour charge.

[13] SYN leader Alavanos discusses relations between the State and the Church

Coalition of the Left, Movements and Ecology (Synaspismos) leader Alekos Alavanos on Tuesday discussed with the Greek Union for the Rights of the Individual and of the Citizen, the relations between the State and the Church.

The Union has presented a series of proposals on this issue and which, according to Alavanos, within the framework of the Constitution, regulate the relations between the State and the Church in such a way which strengthens the freedom, autonomy and the distinction of the role of these two pillars.

Alavanos said that Synaspismos intends to table in Parliament the draft law which the Union has proposed, at the same time expressing the hope that it will also be supported by the other political parties.

[14] PASOK founding member, MP Tsimas dies

Main opposition PASOK founding member and MP Costas Tsimas died Tuesday morning, at the age of 69.

Costas Tsimas was born in 1936 in Theologos, on the island of Thasos. He lived in the United States for several years, where he was active in politics and business, and studied political sciences and public administration at the City University of New York (CUNY).

Tsimas was a founding member of PAK, the precursor of PASOK, and also a founding member of PASOK and close associate of the late party founder and former prime minister Andreas Papandreou, with whom he returned to Greece following the fall of the military dictatorship in 1974.

In 1981, after PASOK was elected to government for the first time, he was appointed general director of the Hellenic Postal Service (ELTA), while in 1984 her served as secretary general of the public order ministry, before being placed at the helm of the National Information Service (EYP) in 1986.

In June 1989 he was elected to the European Parliament for Greece on the PASOK ticket. In the Europarliament, he served as vice-president of the interparliamentary committee for EU-Canada relations. He also served on the Europarliament's committee for political and internal affairs, and vice-president of the interparliamentary committee for EU relations with the Commonwealth of Independent States.

Tsimas further represented the European Parliament as an observer in the first elections in Ukraine and the first democratic elections in South Africa.

In 1995 he assumed the post of secretary general for central Macedonia.

In the April 2000 general elections he was elected to parliament on the PASOK ticket, and was re-elected in the 2004 elections.

Tsimas' seat in parliament will be assumed by Savvas Eminidis.

[15] New foreign ministry website to be presented on Wednesday

The Greek foreign ministry's new website www.mfa.gr will be presented on Wednesday morning at the ministry's Yiannis Kranidiotis amphitheatre by Foreign Minister Petros Moly-viatis.

According to a press announcement, the website was designed to promote Greek foreign policy in the fullest and most reliable way, in order to further the ministry's basic positions and goals and publicise its work.

It will provide prompt and reliable information on current affairs in real time, while there will constant monitoring of the latest developments and regular updates and additions to its contents.

The site will also facilitate access to ministry services for Greek citizens, Greeks living abroad and foreign nationals and will provide links to useful websites for users seeking more information, such as to international organisations, public agencies, research centres and others.

[16] Greece, China lay foundations for closer commercial ties

BEIJING, 30/11/2005 (ANA/N. Melissova)

The meeting, presided over by Greek Deputy Foreign Minister Evripidis Stylianidis and Chinese Deputy Minister of Commerce Yu Guangzhou, came to a close on Tuesday.

According to Greek diplomatic sources, the first day of the Greek-Chinese business forum, held in Beijing, also proved fruitful, producing "promising" results.

Furthermore, the groundwork for Prime Minister Costas Karamanlis' visit to China has also been laid, Chinese Deputy Foreign Minister Zhang Yesui said after meeting with Stylianidis on Tuesday afternoon.

"We are convinced that this [Karamanlis'] visit will be very successful," he added.

During Karamanlis' visit to China, it is expected that an agreement, facilitating the operation of SMEs in both countries, will be signed as well as an agreement for the export of 60,000 tons of fertiliser to China.

The latter, according to the Greek side, means re-entry in a market after a lengthy hiatus.

While speaking to Greek reporters, Stylianidis said that an agreement for strategic economic cooperation between both countries will probably also be promoted during the Greek premier's visit, an agreement that China has entered with only four EU member states.

Zhang predicted concrete results to emerge from the cooperation between the two business communities which will underscore the importance of the overall Sino-European strategic cooperation.

Additionally, both sides emphasised the role shipping can play in promoting Greek and Chinese products in each market.

They discussed developing Greek ports, particularly in Thessaloniki and Crete, as well as Greece's emergence as a transit centre for Chinese products to Balkan, EU and Mediterranean markets.

As for investments, Stylianidis noted that the amount of Greek capital flowing into China has more than doubled over the past four years, to stand at � 140 million in 2004. This, has also had a positive effect on exports, which however, fall short of the Chinese market's capacity, Stylianidis said.

Zhang called on Greek enterpreneurs to stake their claim on Chinese imports which are projected to reach $3 billion over the next five years.

On Wednesday, the Greek delegation headed by Stylianidis, will travel to Shanghai where a second Greek-Chinese business forum will be held.

Stylianidis will continue his meetings with Chinese government officials in preparation for Caramanlis' visit.

[17] Gov't: No rift with Credit Agricole over sale of Emporiki Bank

Finance Minister George Alogoskoufis said on Tuesday that the government and Credit Agricole were in agreement on the privatisation of Athens-quoted Emporiki Bank, in which the French financial group is a strategic investor.

The minister noted that a clause in a contract between the State and Credit Agricole in 2000 had been kept secret by the previous government. The clause stated that state-run Emporiki had an obligation and not a right to repurchase its stock sold to the strategic investor at the acquisition price, if the contract were terminated.

"Essentially, with the statements I made, our partners were led to waive their right. This is a negotiation victory for the Greek state," Alogoskoufis said.

The government has pledged to wholly privatise Emporiki, as part of a drive to shrink the sprawling state sector.

[18] Debate on 2006 state budget begins at Parliamentary Economic Committee

The debate on the state budget for the 2006 fiscal year began at the Parliamentary Economic Committee on Tuesday.

Ruling New Democracy party rapporteur Savvas Tsitouridis termed the state budget for 2006 "reliable, effective and socially fair". The Kilkis deputy said that the economy "is responding positively to the government's initiatives, it is showing signs of a new development course and as time passes the problems of the past will be resolved."

The main opposition PASOK party's rapporteur, Etoloakarnania Deputy Andreas Makrypidis spoke of a "fictitious, fake and unreliable budget which will be difficult to implement."

Communist Party of Greece (KKE) general rapporteur and second Thessaloniki constituency Deputy Angelos Tzekis said that the state budget "is in favour of monopolies and, consequently, antipopular."

Coalition of the Radical Left general rapporteur and second Athens constituency Deputy Yiannis Dragasakis said on his part that the budget "is inaugurating a new and long round of harsh austerity against the popular classes".

[19] Greece backs new EU approach to industry policy

BRUSSELS, 30/11/2005 (ANA/M Aroni)

Deputy Finance Minister Christos Folias told a meeting of EU industry ministers debating the plan that member states as a bloc could display economic clout.

The meeting laid emphasis on creation of a high-level group to strengthen competitveness of the bloc's economy.

"As long as we try to compete among ourselves, within the framework of the EU, then we will lose ground," Folias told the meeting.

[20] Greek tourism has favourable growth prospects, minister says

Greek tourism is currently undergoing a creating restructuring phase with favourable growth prospects for the future, Tourism Deputy Minister Anastasios Liaskos told a general assembly of the World Tourism Organisation in Dakar on Tuesday.

Addressing the assembly, the Greek minister underlined the significance of the fact that the assembly was held in an African country for the first time, a development likely to help the international community to turn its interest to the African continent, a region not yet developed according to its real capabilities.

Greece has already signed a series of cooperation agreements with several African states, seeking closer cooperation, Liaskos said. The Greek minister noted that Greece has signed more than 50 bilateral cooperation agreements with other countries offering technical guidance in tourism development.

He also refered to a recovery of the tourism sector after the Athens Olympic Games with new infrastructure, growth prospects and larger incentives for investments in the sector. "Greece will overcome all difficulties to become one of the most significant tourism destinations around the world," he said.

[21] Agriculture minister briefs President Karolos Papoulias on prospects in agricultural sector

Agricultural Development and Foodstuffs Minister Evangelos Basiakos briefed President Karolos Papoulias on Tuesday on developments and prospects in the agricultural sector.

Speaking after the meeting, Basiakos said "we are exhausting all our possibilities for farmers, which are anticipated by European Union regulations." He also said that the prospect of farmers' mobilisations was not evident.

The minister briefed President Papoulias on all current issues pertaining to his duties, as well as on developments and prospects in the agricultural sector in the framework of the implementation of the new Common Agricultural Policy which will be applied as of 2006 and sets new competition factors.

Basiakos said that the government is telling the truth to farmers, which is not always pleasant, and stressed that the additional duty of politicians is not to conceal even the bad aspects of a policy which is being implemented in all 25 European Union member-states.

Lastly, he said that EU possibilities are being utilised and more funds are being obtained than in the past, even with unfavourable regulations such as for cotton and a series of other products.

[22] Greek firms show flat pre-tax profits in 2004

Greek companies showed flat net earnings before tax in 2004 versus 2003 to total 7.0 billion euros, the ICAP market research agency said in its annual Greek financial guide released on Tuesday.

Gross earnings were 30.1 billion euros, up 7.9%, said ICAP in the survey of SA and limited liability companies.

Turnover in 2004, excluding the banking system, was 144.8 billion euros, marking an 11% increase, the survey showed.

[23] Finmin meets German employers trade group

Finance Minister George Alogoskoufis on Tuesday met representatives of the German Employers' Association (BDA).

Accompanying the delegation headed by Dieter Hundt were the president of the Federation of Greek Industry, Odysseas Kyriakopoulos, and the German embassy's commercial attache, Klemens Semtner.

No statements were made after the meeting.

[24] Cost of voluntary retirement scheme pushes Hellenic Telecoms in red in Jan-Sept

Hellenic Telecommunications Organisation on Tuesday reported a loss of 322.7 million euros in the nine-mont period from January to September 2005 reflecting the high cost of a voluntary retirement scheme adopted by the organisation.

Group turnover totalled 4.068 billion euros, up 4.3 pct from the same period in 2004, while operating spending rose 27.6 pct to 4.250 billion euros reflecting an 8.2 pct increase in salary payments and the cost of a voluntary retirement scheme (estimated at 938 million euros).

Excluding this extra cost, Hellenic Telecoms would report a net profit of 368 million euros in the January-September period, an increase of 147.5 percent from the same period last year.

Nine-month results confirmed that mobile telephony (Cosmote) was the "strong card" of Hellenic Telecoms, with Romtelecom also reporting significantly improved results.

Parent turnover rose 2.6 pct to 2.019 billion euros, operating spending jumped 41.1 pct to 2.853 billion euros and losses of 233.8 million from a profit of 62.1 million euros in the corresponding period in 2004. Excluding the cost of a voluntary retirement scheme parent profits would total 457 million euros.

The voluntary retirement programme covered 5,525 workers.

Cosmote reported a 7.5 pct increase in turnover and a 9.0 pct rise in net consolidated profits to 255.3 million euros.

OTEnet reported stable turnover figures (68.3 mln euros) despite a 30 pct increase in new connections.

Romtelecom reported a 10.4 pct increase in turnover to 686.2 million euros, and EBITD of 271.2 million euros, up 22.3 pct.

Armentel's turnover rose to 81.7 million euros in the nine-month period from 62.2 mln in 2004. Net profits jumped to 25.7 million euros from 13.9 million last year.

[25] Intralot raises stake in Turkey's Inteltek

Intralot on Tuesday announced the signing of an agreement for the purchase of a 20 percent stake in Turkey's Inteltek, raising its stake in the company to 45 percent.

Inteltek has an exclusive eight-year betting management contract for Sportoto, Turkey's soccer and lottery organisation.

Intracom will pay 67 million euros for the purchase of the additional stake in Inteltek, while the agreement is due for approval by Turkish competition authorities.

Intralot's chief executive, Constantinos Antonopoulos said "the increase of our participation in Inteltek establishes Intralot in the much promising Turkish lottery market and is expected to offer increase participation in future profits. Intralot's invest-ment to Inteltek wil be the biggest investment by a Greek company in the neighbouring country".

[26] Egnatia Bank says profits up 34.7 pct in Jan-Sept

Egnatia Bank on Tuesday reported a 34.7 pct increase in its nine-month Group after-tax profits to 17.671 million euros from 13.121 million euros in the same period last year.

Savings deposits rose 21.3 percent to 2.545 billion euros, while the bank's savings deposits rose 19 pct to 2.488 billion euros. Loans rose 12.8 pct to 2.383 billion euros, while the bank's loan portfolio rose 10.3 pct to 2.261 billion euros.

Egnatia Bank Group said assets totaled 3.236 billion euros, up 29 pct.

[27] New recycling projects under way in Imathia and Lamia

The Greek Society for the Implementation of Recycling (EEAA) has extended its activity in two new regions and specifically in the Imathia Prefecture and the Lamia Municipality. The total budget of the two new recycling projects amounts to 1.233 million euros.

The materials which are recycled are paper, plastic, glass and metal.

According to EEAA assessments, about 2,700 tonnes of material will be recycled in Imathia Prefecture on a yearly basis, with a total amounting to 610,000 euros.

At the same time, the recycling work which began operating recently in Lamia, following a relavant cooperation agreement between Lamia Municipality and EEAA, serves, at a first stage, 56,000 citizens. The total budget of investments which were made for the development of the programme amounts to 623,000 euros.

EEAA was founded in December 2001 by industrial and commercial businesses and is comprised of 740 members.

[28] Romanian banks seek aid of Greek trade group

The Union of Romanian Banks on Tuesday formally asked its Greek counterpart for assistance in implementing the new Basle II regulations on capital adequacy, and in introducing a banking ombudsman.

Christos Gortsos, general secretary of the Union of Greek Banks, pledged to offer the trade group's help, speaking at a news conference on the sidelines of a meeting in Bucharest of the Balkan Forum of Bank Unions, whose presidency Greece holds until 2007.

[29] Stocks finished lower in a lacklustre market, traders said.

The Athens general share index closed at 3,496.87 points, marking a decline of 0.50%. Turnover was 228.1 million euros.

The FTSE/ASE-20 index for high capitalisation shares ended 0.20% down; the FTSE/ASE-40 for medium cap stocks closed 0.32% higher; and the FTSE/ASE-80 for small cap shares finished 0.50% down.

Of stocks traded, declines led advances at 159 to 113 with 67 remaining unchanged.

Stock Futures: