Athens News Agency: Daily News Bulletin in English, 06-02-08

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

CONTENTS

[01] Molyviatis, Moratinos agree on 'reviving' EU Constitution process

[02] President receives visiting Spanish foreign minister Moratinos

[03] Papandreou meets with Russian FM Lavrov

[04] U.S.'s Bryza to visit Nicosia, Athens Ankara

[05] U.S. on Ankara's proposal for Cyprus issue

[06] Gov't insists it 'followed the rules' in phone-tap affair

[07] Public order minister publicizes names of 10 more phone-tapping victims

[08] U.S. State Department Spokesman McCormack on phone-tapping issue

[09] Phone-tap victims to sue state, mobile phone operator

[10] PACE president van der Linden on official visit here this week

[11] Inner Cabinet meeting focuses on education sector

[12] National Defense General Staff chief meets Egyptian DM

[13] Foreign Ministry says 'Greece supports dialogue between cultures'

[14] Israeli embassy confirms state visit of Israeli president Katsav

[15] U.S. ambassador gives lecture at Thessaloniki War Academy

[16] European social model needs redefining, FinMin says

[17] Gov't promotes measures to support natural gas market

[18] Russian market offers advantages to Greek enterprises

[19] Trade unionists voice opposition to 'Bolkestein Directive'

[20] Greek fiscal deficit at 4.3 pct of GDP in 2005

[21] Central bank chief urges caution in awarding loans

[22] Main opposition charges gov't with creative accounting

[23] Coalition party leader meets bank employee federation directorate

[24] Attica hotels' occupancy rates stable in 2005, report

[25] Intralot to issue bond

[26] Merrill Lynch upbeat on outlook for Athens bourse

[27] Athens Bourse Close: Stocks nose up, top 4,100 pts

[28] Cold front continues to batter country

[29] West Attica authority to close city's main dump in Ano Liossia

[30] President Papoulias hosts reception for judicial, university authorities

[31] Missing children jumped 143 pct in 2005, child charity reports

[32] Greek Culture Promotion Organization continuing dynamic course

[33] Greek press and communications office in Austria cuts New Year's cake

[34] Government will not associate Cyprus problem with Turkey's EU obligations

[35] Government satisfied with Russia's views on Cyprus problem

[36] House President says Russia positive on Cyprus' calls

[37] Cyprus President Papadopoulos to visit Austria

[01] Molyviatis, Moratinos agree on 'reviving' EU Constitution process

ATHENS, 8/2/2006 (ANA/MPA)

During their talks they also discussed bilateral economic relations, the Balkans and developments in Kosovo and the situation in the Middle East following an election victory by Hamas in Palestine.

Moratinos said that the discussion for the future of Europe could now be held on better terms following agreement over the Community's fiscal prospects in 2007-13.

"We must show the citizens of Europe that the European Union is worth the effort," the Spanish foreign minister added.

Molyviatis, while noting that every people had a right to express their opinion on the European Constitution, at the same time stressed the need to overcome the present impasse.

"We cannot remain forever in this interim state, we must revive the discussion, in cooperation with the Austrian and subsequent (EU) presidencies," he said.

Regarding the Cyprus issue, Moratinos said that Spain and Greece "were on the same line, since we both respect international law and wish to facilitate in the direction of finding a final solution."

He noted that Spain was very pleased with Cyprus' accession to the European Union and also had very good relations with Turkey.

In a question to Molyviatis concerning a British diplomat's call for Kosovo's independence, the Greek minister pointed to the decisions of the United Nations, the European Union and the Contact Group regarding the procedure, principles and criteria for establishing the final status of Kosovo.

"The process has already begun and I believe that the final decision must respect all the criteria and values that are included in the decisions, especially of the Contact Group".

Moratinos referred to developments in Palestine and said that the Palestinian Authority should open talks with both Hamas and Fatah and called on the international community to wait for the results of these talks.

At the same time, he stressed that any Palestinian government that emerged would have to respect the principles of international law, disavow violence and recognize Israel.

Greece, Spain seek closer business relations: Greece and Spain are seeking closer economic and business relations, Economy and Finance Minister George Alogoskoufis said on Tuesday.

Speaking to reporters, after a meeting with visiting Spanish Foreign Minister Miguel Angel Moratinos, the Greek minister stressed that "Spain is a close partner of our country in the energy sector and other commercial sectors".

Moratinos, leading a business delegation, said that 15 Spanish enterprises briefed the Greek minister over the problems and difficulties facing in the Greek market. He added that the Spanish government recommended to Spanish enterprises to invest in the Greek market. "Spain's advantages can benefit both countries in sectors such as energy, tourism, insurance, high technology and banks," Moratinos said. He expressed his confidence that "more Greek investments could be made in Spain importing more Greek products in the country".

[02] President receives visiting Spanish foreign minister Moratinos

ATHENS, 8/2/2006 (ANA/MPA)

Earlier, Moratinos held talks with Greek Prime Minister Costas Karamanlis and his Greek counterpart Petros Molyviatis.

[03] Papandreou meets with Russian FM Lavrov

ATHENS, 8/2/2006 (ANA/MPA)

Afterwards, Papandreou, the former foreign minister, noted that talks centered on developments vis-�-vis the Cyprus issue, as well as Russia's international and UN role for a solution to the Cyprus problem based on UN resolutions.

Other subjects discussed included Kosovo, the Middle East, Hamas' election victory and the ongoing crisis with Iran's nuclear program.

On his part, Lavrov expressed his desire for greater cooperation with Papandreou, following the latter's assumption of the Socialist International's presidency.

[04] U.S.'s Bryza to visit Nicosia, Athens Ankara

BRUSSELS, 8/2/2006 (ANA-MPA/V. Demiris/CNA)

During a meeting Tuesday morning with journalists, Bryza referred to the meetings he held in Brussels on Monday with community officials and the visits he intends to carry out to Cyprus, Greece and Turkey.

Responding to an ANA-MPA question, Bryza praised the Greek government's constructive role and especially Greek Foreign Minister Petros Molyviatis' role, stressing that it shows a positive stance and approach on efforts to solve the Cyprus problem, adding that Greek American relations are more strategic than ever.

Bryza described as positive the proposals made by Turkey's Foreign Minister Abdullah Gul for Cyprus, claiming that they are a set of new ideas which need further examination in a bid to come out of today's deadlock.

According to Bryza, the initiative proves Turkey's willingness to be involved in efforts to solve the Cyprus problem.

He appealed to all parties involved to show a constructive and flexible stance so that on the basis of these proposals (meaning the Turkish government's) the Secretary-General will be given the opportunity to investigate the proper ground for a new initiative for a solution to the political problem.

Referring to Turkey signing the protocol, extending its customs union agreement to all EU member states, Bryza said that Turkey has an obligation to implement it and to extend it to all new EU states.

According to Bryza, ending the so called isolation of the Turkish Cypriot community will ease efforts to reunite the island.

Regarding his visit to the region, he said the aim is to ascertain the intentions of the parties involved on issues concerning Cyprus, Turkey's EU accession course and strengthening Turkish Cypriots.

The Turkish Cypriot side has lost 120 million euros from a total of 259 million euros of the EU funding regulation destined for the economic growth of the Turkish Cypriots after Turkey's insistence on connecting the regulation with that on direct trade with the Turkish occupied north.

The government of Cyprus has long given its consent to the allocation of the funds but the Turkish and the Turkish Cypriot side had refused to cooperate insisting on linking financial aid to direct trade.

Cyprus has been divided since 1974 when Turkish troops invaded and occupied the island's northern third.

[05] U.S. on Ankara's proposal for Cyprus issue

WASHINGTON, 8/2/2006 (ANA-MPA/T. Ellis)

McCormack added, however, that "he will ask to be informed by the relevant department whether there was any contact with Russia on this issue" and will answer the relevant question.

[06] Gov't insists it 'followed the rules' in phone-tap affair

ATHENS, 8/2/2006 (ANA/MPA)

"The government from the first referred the case to justice. There are no other institutional ways for the state to operate," he stressed.

The spokesman also corrected a statement he made during Monday's briefing, in which he claimed that Parliamentary rules would not allow a Parliamentary probe to run parallel to the judicial investigation.

Roussopoulos clarified that this was incorrect and that there was no legal obstacle to simultaneous investigations by Parliament and the justice system, but the government's position remained in favor of first completing the judicial investigation, so that justice should be allowed to do its work undistracted and without obstacles.

The case was assigned to an examining magistrate last Friday, after an 11-month preliminary investigation headed by a public prosecutor failed to trace those responsible for the illegal wire-taps and a public prosecutor pressed charges against persons unknown.

Regarding the start of an inquiry launched on Monday into the death of a Vodafone executive - initially attributed to suicide - shortly after the phone taps were discovered in the mobile phone provider's systems, the spokesman confirmed that the company's managing director George Koronias had informed the authorities of the man's death at the time and that police authorities had carried out an in-depth investigation.

Asked to comment on an announcement released by Greece's independent telecoms privacy authority, which claimed that 500 or more telephones had been monitored in the first half of 2004, the spokesman simply noted that this had been a legal procedure.

"If the government judges that there are gaps in our legal framework (regarding wire-tapping), the government will look into the issue in order to strengthen the framework," he said.

Responding to criticism that justice had delayed starting the investigation from main opposition PASOK members, meanwhile, Roussopoulos merely noted that "there is no such thing as 'a la carte' justice in the way that PASOK means it".

He also accused PASOK of double standards on this issue and criticized PASOK leader George Papandreou for not calling members that attacked judicial officials to order.

The government last week revealed that some 100 mobile phones, including those of the prime minister and five members of cabinet, had been illegally tapped for nearly a year before the surveillance was discovered. In a press conference held after a front-page article that appeared in the Athens daily 'Ta Nea' last Thursday, it said that a subsequent 11-month investigation had failed to trace the culprits responsible.

According to Public Order Minister George Voulgarakis, the 'ghost' software monitoring the phones was actually a legal but very costly 'lowphone interception' program developed by Ericsson that had not, however, been purchased by Vodafone and had been activated without the knowledge of either Vodafone or Ericsson.

The government later released the names of 46 individuals whose phones had been tapped, out of the roughly 100 phones that Voulgarakis had said were known to have been monitored.

Public order, justice ministers brief parliament on phone-tap affair: The government handled the phone-tap affair responsibly Public Order Minister George Voulgarakis and Justice Minister Anastassios Papaligouras told the parliamentary Institutions and Transparency Committee during a briefing on Tuesday.

Voulgarakis reiterated that tracing the phone-tap was made difficult following the decision of Vodafone to remove the 'ghost' software from its system. However, the copies of the software which have been turned over to the prosecutor's office "can be analyzed" to provide more information, he said.

Responding to criticism that the government delayed in publicizing the case, Voulgarakis said that the Greek police had to examine thousands of calls made throughout Greece and neighboring countries.

Asked by Communist Party of Greece (KKE) MP Liana Kanelli as to how many citizens had been watched by the police within the context of the investigation, Voulgarakis said more than 500.

Regarding the suicide of a 39-year old Vodafone executive, Voulgarakis said that the relevant police investigation has not "turned up any link to the development of the phone tap affair".

Finally, referring to political responsibility regarding the matter, Voulgarakis said it lies with those who for 15 years allowed mobile telephony in Greece to operate without any safety measures.

On his part, Papaligouras described the affair as a "phone tap scandal that concerns national security," and criticized main opposition PASOK's stance for trying to present the government as the perpetrator when the prime minister and high-ranking ministers were targets themselves.

He explained that the investigation took more than 10 months to carry out since it was a complicated and difficult case.

Asked about the delay between Vodafone's discovery of the software and its informing the government, Papaligouras said that he had been briefed personally by Vodafone's Managing Director George Koronias on March 11, 2005 in the presence of Supreme Court prosecutor D. Linos, at which time Koronias provided 'convoluted answers.'

Referring to the Vodafone executive's suicide, Papaligouras said that many questions remain unanswered.

During the briefing, PASOK MP Evangelos Venizelos accused the government of 'conspiring' with the prosecutor's office and said that the government's failure to inform the Hellenic Authority for Information and Communication Security and Privacy (ADAE) constituted a criminal offence.

Papaligouras responded that ADAE had not been fully staffed until January 2005.

Coalition of the Left, Movements and Ecology (SYN) MP Fotis Kouvelis asked whether other individuals not named so far had been targets of the phone tap, while former parliament president Apostolos Kaklamanis said that Koronias should have been arrested.

The committee is due to convene again on Tuesday evening.

[07] Public order minister publicizes names of 10 more phone-tapping victims

ATHENS, 8/2/2006 (ANA/MPA)

Speaking in the framework of a briefing of the relevant Parliamentary committee, Voulgarakis said they were senior members of the Greek Police and included former Greek Police chief Fotis Nasiakos and the current Greek Police chief George Angelakos.

The minister added that the National Intelligence Service (EYP) only had the possibility of monitoring fixed line telephones and that now the purchase of a monitoring system for mobile phones as well is being promoted.

Referring to the suicide of former high-ranking Vodafone employee Costas Tsalikidis, Voulgarakis said that his parents found him hanging from a noose, the door was locked and the keys were in a desk in the hall, while his parents notified the Kolonos police station after they took him down.

Justice Minister Anastasios Papaligouras denied reports by two television channels that he had disagreed with Voulgarakis over the suicide issue, saying that he referred to outstanding issues that had nothing to do with police investigations but with the judicial probing of the issue.

Replying to criticism regarding the lack of information for the Authority for Safeguarding Communication Confidentiality, Papaligouras said that it could not carry out its duties since it had not obtained the necessary means.

Government will be obliged to give explicit answers on phone-tapping issue, PASOK party leader says

The government will be obliged to give explicit answers to questions raised by citizens regarding the phone-tapping issue, main opposition PASOK party leader George Papandreou said after the party's Political Council meeting in Anavyssos on Tuesday.

Papandreou, focusing on the phone-tapping issue, once again placed responsibilities on the prime minister and insisted on his position that relevant ministers must resign.

The government, he added, has succeeded on an issue of national security to fill the entire country with insecurity.

Referring to the Political Council meeting, the PASOK party leader said that targets are being shaped to enable a victorious course for PASOK, adding that "in the face of an unreliable government" his party "proposes another path, that of confidence and trust".

Papandreou accused the government that "with its policy it is dealing a blow at citizens, serving the few, attacking working people and collective agreements, harming family income and increasing poverty and exclusion".

The government, he added, wants Greece to be a "country of cheap labor which will make the rich richer and the poor poorer. It wants the middle ages of labor, while it is downgrading the country's prestige".

[08] U.S. State Department Spokesman McCormack on phone-tapping issue

WASHINGTON, 8/2/2006 (ANA-MPA/T. Ellis)

On the pointing out by a reporter that among the telephone lines which were tapped were also those of American officials in Athens, McCormack noted that "he read the relevant references on the issue" and reiterated that "it is a matter which the Greek government is handling."

[09] Phone-tap victims to sue state, mobile phone operator

ATHENS, 8/2/2006 (ANA/MPA)

Nikos Yiannopoulos, member of the Political and Social Rights Network, and Yiannis Sifakakis, member of Stop the War organization, will seek punitive damages.

Yiannopoulos described the affair as "the tip of the iceberg", adding that the major problem is the thousands of cases of 'legal' eavesdropping taking place, during a press conference held on Tuesday.

He accused the US of being behind the affair, and accused the government and the main opposition PASOK party of trying to "cover it up".

Sifakakis, who also spoke at the press conference, said the matter was "a provocative attack against citizens' rights," adding that the government is not a victim in this case.

Both organizations are staging protest rallies in Athens on Thursday.

Ericsson on phone-tap affair: Telecoms supplier Ericsson sought to clarify points related to the recent phone-tap affair in a statement issued on Tuesday.

Specifically, Ericsson said that there were two types of software used in the phone-tap affair, one of which belongs to the company and is used for lawful interception.

According to the company, the software had been pre-installed by mobile phone operator Vodafone but had not been activated since the latter had not purchased it.

Government authorities all over the world require the software for lawful interception, which is why Vodafone had to have it installed, Ericsson explained.

The second software package discovered at Vodafone was not manufactured by Ericsson and was installed after Ericsson's software under unknown circumstances.

According to Ericsson, the second software package would activate Ericsson's software and would then eliminate all traces of activation, which made detection of illegal interception impossible via standard system checks.

Finally, Ericsson said that it will cooperate fully with the responsible authorities for the investigation of the case.

[10] PACE president van der Linden on official visit here this week

STRASBOURG, 8/2/2006 (ANA)

Van der Linden was due to arrive on Tuesday to begin a four-day visit.

The visit comes in response to an invitation by Greek Parliament President Anna Psarouda-Benaki, with whom van der Linden will hold talks on Thursday.

He will also be received by President of the Republic Karolos Papoulias on the same day. Other meetings are scheduled with Prime Minister Costas Karamanlis and Foreign Minister Petros Molyviatis, as well as representatives of the country's main political parties.

During his visit, the PACE president will also address a joint meeting of Greek Parliament's defense and foreign affairs committee and the European affairs and justice committee.

[11] Inner Cabinet meeting focuses on education sector

ATHENS, 8/2/2006 (ANA/MPA)

The meeting was chaired by Prime Minister Costas Karamanlis.

Earlier, Karamanlis received visiting Spanish Foreign Minister Miguel Angel Moratinos, who was accompanied by his Greek counterpart Petros Molyviatis.

[12] National Defense General Staff chief meets Egyptian DM

CAIRO, 8/2/2006 (ANA-MPA/N. Katsikas)

The purpose of his visit is to review military cooperation between the two countries and the possibility of expanding and strengthening it.

Bilateral talks focused on the military cooperation program between the two countries and which concerns, among other things, the holding of joint exercises between the Greek and Egyptian armed forces, the sending of Egyptian officer trainees to higher military training foundations in Greece and the exchange of visits by warships to various ports.

Another issue raised during bilateral talks was the issue of exchanging information on handling the phenomenon of illegal immigration, while further cooperation between military medical services of the two countries was also decided.

"Generally speaking, relations between the armed forces of the two countries are at a very good level and the aim of the two countries is the further promotion of this cooperation," Chinofotis said in a statement to the ANA-MPA.

[13] Foreign Ministry says 'Greece supports dialogue between cultures'

ATHENS, 8/2/2006 (ANA/MPA)

Referring to the same issue, Spanish Foreign Minister Miguel Angel Moratinos, who is on an official visit to Athens, condemned the violent incidents and expressed his solidarity to the government of Denmark.

However, Moratinos noted the need for calm to be maintained by all sides in order for a solution to be reached which will ease the tension.

"Nevertheless, the condemnation of violent acts must be clear," the Spanish foreign minister said.

[14] Israeli embassy confirms state visit of Israeli president Katsav

ATHENS, 8/2/2006 (ANA/MPA)

The occasion will mark the first state visit of an Israeli president to Greece.

Besides meetings with Greek leadership, Israel's first couple will also travel to Thessaloniki with Papoulias to visit the city's Jewish Museum and a Holocaust Memorial.

[15] U.S. ambassador gives lecture at Thessaloniki War Academy

ATHENS, 8/2/2006 (ANA/MPA)

During the lecture, which took place at the Academy's invitation and in the framework of providing additional training for armed forces cadres attending it, Ries said that "Greece and the United States are linked with something more than sentiment and mutual understanding".

The ambassador stressed the contribution of the Greek armed forces to NATO operations, as well as the high level of military training in Greece, which he termed as one of the country's best deposits.

Ries also stressed the need for educating members of the military with references to the ancient Greeks, to Pericles, Thucydides and Herodotus and also mentioned tha fact that Alexander the Great had Aristotle as his tutor.

According to data he invoked, in 2005 the U.S. government provided one million dollars for the training of about 100 Greek members of the military in the United States, an amount which, as he said, is balanced with Greece covering expenditures for the staying and transportation of members of the military who are part of additional training programs and with the sending to the U.S. of other members of the military for participation in various programs.

Replying to a question put to him by Academy students on the recognition by the United States of the Former Yugoslav Republic of Macedonia (FYROM) as "Republic of Macedonia", the U.S. ambassador said that its aim was "to prevent a new civil war in the country with the disputing of the Ohrid agreement by the nationalists".

Ries reiterated that his country will recognize the outcome of negotiating at the UN, while noting that the country's application for NATO and EU membership was made as FYROM and expressed the hope that the issue will not affect Skopje's Euroatlantic prospects.

At least one American officer attends the Thessaloniki War Academy every year. This year it is Major Pete Huie, with whom Ries had participated in the same classes to learn the Greek language in Washington over a period of nine months.

[16] European social model needs redefining, FinMin says

ATHENS, 8/2/2006 (ANA/MPA)

Speaking to reporters, after a meeting with John Monks, secretary general of the European Confederation of Labor Unions, and representatives of Greece's two largest trade unions GSEE and ADEDY, Alogoskoufis said his discussions with Monks covered the challenges facing the European economy and Greek policies aimed to reducing fiscal deficits and promoting economic reforms.

Monks said the Confederation's message was that unions acknowledged the problems but stressed that unions were not the problem but part of the answer to the problem. He stressed that problems could be resolved without undermining Europe's social model and that a solution was to work all together with the people. Monks said the best example of a consensus between social partners were Scandinavian countries.

[17] Gov't promotes measures to support natural gas market

ATHENS, 8/2/2006 (ANA/MPA)

Addressing a seminar on natural gas, Salagoudis said the ministry was awaiting a reply from the government's Economy ministry on the recommendation and noted that in case of a positive respond taxpayers could enjoy more than 20 percent in tax-exempt money.

Salagoudis said the government was drafting a new legislation on funding of energy investments in the country. The Greek minister said that a total of 650 km of natural gas grid network were built in Attica last year, with a total of 11,90 new contracts (70 pct more compared with 2004). Salagoudis said a total of 110,000 households in Attica were using natural gas supplies, compared with 200,000 in Thessaloniki.

[18] Russian market offers advantages to Greek enterprises

8/2/2006 (ANA/MPA)

The report said that the retail and food-beverage sectors were beginning to offer new opportunities to Greek enterprises.

The lifting of most prohibitive regulation for foreign investments has reduced the total investment risk in 70 out of the country's total 89 regions, with the most attractive regions named in Saint Petersburg, Moscow, Sverdlovsk, Samara, Perm and Kemerovo.

On the other hand, bureaucracy, corruption and inefficient instructure were cited as hurdles in attracting foreign investments in the country. However, a rapid growth of the construction sector (10-15 pct annually, accounting for 7.0 percent of Gross Domestic Product in Russia) is creating new trends in the market: sustaining growth, reducing the number of companies in the sector and attracting foreign players in the market. The only problem is the difficulty in raising funding. A total of 113,000 foreign enterprises have activities in the Russian construction market, mainly Turkish and Finnish.

In the food-beverage sector, the fresh juice market is the leader, with 80 percent of production based on imported condensed juice (with the exception of apple juice). Foreign enterprises are acquiring Russian production units (Wimm-Bill-Dann and Multon (Coca-Cola Hellenic Bottling). The canned food market, controlled by foreign companies, grows an annual rate of 30-35 pct, while hyper markets and super markets are gaining market share from a Soviet-style product food shops and currently account for 65-70 percent of the Russian market.

Coca-Cola Hellenic Bottling has Coca Cola's distribution rights in Russia. Together with The Coca Cola Inc. it bought Russia's second largest juice producer in 2005 for 500 million US dollars.

Chipita has a production unit and its own distribution network in St Petersburg, Sarantis Group has set up a joint venture in the cosmetics market, while Crete Plastics fully owns Stalker M, a master batches producer and distributor in Russia. Intracom also has activities in Russia.

[19] Trade unionists voice opposition to 'Bolkestein Directive'

ATHENS, 8/2/2006 (ANA/MPA)

It was announced at the press conference that the trade unions will hold a protest rally in front of the offices of the European Union in Athens on Saturday, 11 a.m.

Also announced was the participation of GSEE and ADEDY at the demonstration of European trade unions in Strasbourg on March 14, the day when the Bolkestein Directive will be discussed at the European Parliament.

As regards its position on the Bolkestein Directive, the European Confederation of Labor Unions called for an amendment to the Directive in such a way that it will respect collective labor agreements and the rights of working people, the creation of jobs and not place in danger existing jobs.

[20] Greek fiscal deficit at 4.3 pct of GDP in 2005

ATHENS, 8/2/2006 (ANA/MPA)

Regular revenues rose 6.4 pct last year, exceeding a 5.0 pct growth forecast, the report said.

Spending increased by 5.6 pct in 2005, slightly exceeding a forecast for a growth rate of 5.3 pct, with capital spending up 2.3 pct and primary spending up 6.3 pct in 2005.

The Greek budget deficit fell by 17.6 percent in 2005, compared with the previous year to end the year at 4.3 pct of the country's Gross Domestic Product.

[21] Central bank chief urges caution in awarding loans

ATHENS, 8/2/2006 (ANA/MPA)

Addressing a luncheon for the heads of the country's banks, Garganas noted that delayed repayments on loans had risen slightly.

Assessment of credit risk should be accurate so that appropriate forecasts were made for provisions, the central bank chief added.

[22] Main opposition charges gov't with creative accounting

ATHENS, 8/2/2006 (ANA/MPA)

Party economy spokeswoman Vasso Papandreou said the government had distorted budget data in an attempt to make state finances look healthier.

[23] Coalition party leader meets bank employee federation directorate

ATHENS, 8/2/2006 (ANA/MPA)

Alavanos, who met with the directorate of the Bank Employee Federation (OTOE), also said that his party fully supports the struggles of the Federation which, as he said, "are struggles for the entire working class, for the social state, for collective agreements and for the unemployed who, when they find employment, do not want to have to make do with a piece of bread".

[24] Attica hotels' occupancy rates stable in 2005, report

ATHENS, 8/2/2006 (ANA/MPA)

The Association of Attica Hoteliers said occupancy rates in five-star hotels fell to 34.04 pct in December while for two-star hotels eased to 22.86 pct, while occupancy rates for four- and three-star hotels rose to 33.56 pct and 33.0 pct, respectively.

A benchmarking report, conducted by JBR Hellas-Howarth, showed that Athens hotels' average occupancy rate was 62.5 pct in 2005, slightly down from 62.8 pct in 2004, while average rate per room dropped 20.2 pct to 106.44 euros from 133.32 euros, over the same period. Revenues per available room also fell by 20.5 pct to 66.57 euros from 83.74 euros in 2004.

Commenting on the 2005 figures, the Association said hotels in Attica reported a very big drop in its financial performance, reflecting increasing competition, following a 10 percent growth of the city's hotel capacity in 2004.

The association stressed that a "price war" between hotels did not offer anything more but just a redistribution of existing market shares, resulting to a final reduction of tourist revenues and a weakening of hotel enterprises.

The association said overnight stays in Attica hotels rose around 10 percent in 2005, from the previous year.

[25] Intralot to issue bond

ATHENS, 8/2/2006 (ANA/MPA)

The bond loan will be fully covered by EFG Eurobank Ergasias S.A., management said in a statement.

The loan will be used to refinance and/or finance the company and subsidiaries that belong to its group of companies, the statement said.

Under the terms of the contract, Intralot will pay in advance the nominal value of the issued bond, it added.

[26] Merrill Lynch upbeat on outlook for Athens bourse

ATHENS, 8/2/2006 (ANA/MPA)

The market is showing high liquidity and sound investment opportunities are available, an analyst at the investment bank told a presentation on global markets in Athens.

The market still shows signs of being an emerging market, although it is no longer one, with accompanying benefits, Hobson added.

[27] Athens Bourse Close: Stocks nose up, top 4,100 pts

ATHENS, 8/2/2006 (ANA/MPA)

The FTSE/ASE-20 index for high capitalization shares ended 0.08% down; the FTSE/ASE-40 for medium cap stocks closed 1.40% higher; and the FTSE/ASE-80 for small cap shares finished 1.50% up.

Of stocks traded, advances led declines at 168 to 117 with 42 remaining unchanged.

Derivatives Market Close: ELTEH top in stock futures trade