NEWS IN DETAIL

Gov't to concentrate on privatisation of loss-making companies

Mr. Simitis underlined the need to promote and complete activities which strengthen competitiveness and increase employment.

Mr. Simitis also stressed the need for acceleration of procedures for the privatisation of loss-making companies in the portfolio of the Organisation for the Rehabilitation of Ailing Companies (OAE).

The OAE's industrial and mining enterprises would be transferred to private interests over the next 14 months, Mr. Simitis said, so that it will be possible to dissolve OAE in 1998.

It was also announced that shares of the Public Petroleum Corp. (DEP) should be floated on the Athens bourse within the year.

French ministers due in Athens today

A working meeting will be held with the leadership of the interior ministry, which will be followed by the signing of a cooperation protocol on interior and public administration issues. Mr. Debre will pay a courtesy visit to Prime Minister Costas Simitis this evening, and will also meet with Public Order Minister George Romeos.

UN chief discounts chances of Greek-Turkish war over Cyprus

He added that he does not think there will be a war between Greece and Turkey over Cyprus.

"There have been tensions and a tendency to bring in armaments into the region which has created tensions. What we are hoping to do is to continue the talks, the proximity talks and the efforts of (UN Secretary General's special representative) Dr. Han.

"It would be preferable that the talks take place before September. Otherwise, we are going to get into the Cypriot presidential election fever, " Mr. Annan told a press conference.

"The British and the American governments are working in a supporting role with us and I see now the British government has named Sir David Hannay to support the effort, and we expect Washington to designate someone also to work with us," he added.

"I don't think there will be a war (between Turkey and Greece). We are attempting to defuse the tensions and I think we've seen an improvement already and I would hope none of the leaders will do anything that will escalate the matters," he said.

Piraeus transit fuel scam probe continues

The scam involved the recording of phantom deliveries to ships and yachts around Attica marinas.

Piraeus prosecutor Yiannis Lambropoulos disclosed another case on Wednesday concerning merchant vessels, while an investigation involving yachts is gradually coming to an end. That scam is blamed for a loss of more than 177 million drachmas for the stat e.

The case has implicated five customs officials from the 12th Piraeus customs office who are allegedly involved together with the petroleum companies Dracoil, TOT Hellas, El Petrol, BP and the transport companies Rostrantic, Montana Trantic, Pioneer and Oceanic.

Individuals in charge of the companies were prosecuted for repeatedly issuing false documentation (with the exception of TOT Hellas and BP, whose case is a misdemeanor) and smuggling. The latter charge is a misdemeanor.

The customs officers are prosecuted for issuing false documentation and direct complicity in smuggling (misdemeanor), while transporters and all other people involved were prosecuted for felony forgery.

EU Commission releases `97 economic report

The special chapter referring to Greece confirms economic recovery achieved in 1996. At an economic level, 1996 was characterised by a continuation of a decrease in macroeconomic imbalances.

The report ascertains that positive results have been achieved in many fronts. The rate of growth increased from 2 per cent in 1995 to 2.4 per cent in 1996, while an important role in recovery was played by an increase in gross investments by 8.3 per ce nt, an increase in exports and an increase in domestic demand.

The report said that over the past three years the percentage of unemployment has remained stable in Greece, about 9 per cent, and employment started to increase again.

According to the Commission's predictions, inflation is expected to decrease to 6.9 per cent, the increase in domestic demand should be speeded up and reach 3.2 per cent a year, while the volume of exports should increase by 5.8 per cent.

The report goes on to say that the will to meet cohesion criteria, to enable accession to the third phase of Economic and Monetary Union (EMU), was the basic motive behind the decision to implement a fiscal austerity policy.

The fiscal deficit between 1990 and 1996 decreased from 16.1 per cent of GDP to 7.9 per cent, while the public debt percentage decreased from 111.8 per cent of GDP to 110.6 per cent in 1996.

The chapter on Greece concludes that the central government's budget for 1997 was based on respect for targets set in the convergence programme and anticipates a deficit in the region of 6.2 per cent of GDP and a primary stage surplus of 4.5 per cent of GDP (2.4 per cent in 1996).

Food, beverages trade fair inaugurated

Speaking during the opening ceremony, Development Undersecretary Mihalis Chrysohoidis said the sector is "the heart of the market" as it concerns the average consumer more than other products.

Roughly 500 businesses of the foodstuffs, beverages, equipment and services sector are participating in the exhibition, due to run until Feb. 27. Those attending the event yesterday included the ambassadors of Britain, France, Italy, the Netherlands, Is rael and the United States, accompanied by their embassy's commercial attaches.

Mr. Chrysohoidis said the sector is profitable and is developing, while it has absorbed one fifth of gross industrial investment during the last decade.

INFACOMA, Marmin exhibitions to be held together

The exhibition concerns building materials, insulating materials, panels and heating and bathroom equipment.

Speaking at a press conference yesterday, Helexpo President Antonis Kourtis said exhibitors at INFACOMA will be 30 per cent more than last year. The 14th INFACOMA will have 857 Greek and foreign exhibitors. The 22nd Marmin exhibition will have 120 exhibitors from several parts of Greece and from eight other countries. Exhibits will include marble, granite, marble and granite products and machinery, tools and equipment used in excavating and processing marble and chemical materials.

Greece ranked last in EU for direct foreign investment

According to 1994 figures, the total of direct foreign investment in Greece totalled Ecu452 million, while total foreign investment in the 15 EU member- states amounted to Ecu52.5 billion. Based on this, only 0.9 per cent of direct foreign investment in the EU concerned Greece.

Of the total of Ecu452 million, other EU member-states invested Ecu305 million, while the remaining 148 million was invested by other countries.

Portugal was 14th in the ranking, although it attracted more than the double amount of direct foreign investment, Ecu1.05 billion. Finland was 13th with Ecu1.1 billion.

SEB calls for easier loans from banks

Presenting the findings of the survey which focused on improving relations and increasing cooperation between banks and businesses at a seminar on "Banks and Clientele," SEB President Jason Stratos made a series of proposals aimed at improving existing loaning conditions.

His proposals include simplification and standardization of forms, limitation of sureties collateral, greater flexibility in decision-making and less time to approve or disapprove a loan.

Acropolis and other sites remain closed to visitors

"It is a simple case of hostage-taking," Mr. Venizelos said yesterday, noting that not all culture ministry employees were taking part in what he called the "selective" strike.

Mr. Venizelos acknowledged that the archaeologists and engineers employed by the culture ministry were "the worst paid employees of the Greek state".

The government remains constantly open to public dialogue, he said, adding that the draft law on civil servants was currently being prepared. The rolling 48-hour strikes of the culture ministry employees have closed the Acropolis museum and ar chaeological site in Athens and the White Tower, Byzantine and archaeological museums in the northern port city of Thessaloniki.

The strikers' demands are mainly pay- and benefit-related.

Modern Greek scholars from around the world to meet in Thessaloniki

The meeting is being held within the framework of events celebrating Thessaloniki as Cultural Capital of Europe for 1997.

At a press conference yesterday, Culture Minister Evangelos Venizelos said the Greek state's grants to chairs of Modern Greek studies at universities around the world had increased from 45 million drachmas in 1994 to 200 million drachmas in 1997,with a 50 percent increase for sectors such as books and language.

Among new initiatives, said the minister, was the creation of a Modern Greek Institute at the French Ecole des Hautes Etudes in Paris at a cost of 30 million drachmas, another at Budapest University and a chair at Tbilisi University in Georgia.

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