Athens Macedonian News Agency: News in English, 17-03-28

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

CONTENTS

[01] Digital Policy Min. Pappas meets in Washington with Israeli Telecommunications Min. Hanegbi

[02] General elections would work as a catharsis, ND leader Mitsotakis says

[03] Greece aims at higher income tourists

[04] Fraport Greece signs 1.0 billion euros loan agreement for 14 Greek regional airports

[05] Piraeus Bank wins top prize for its custodian services

[06] Mytilineos Group says turnover 1.246 billion euros in 2016

[01] Digital Policy Min. Pappas meets in Washington with Israeli Telecommunications Min. Hanegbi

Moreover, the Israeli minister invited Pappas to visit Tel Aviv in order to sign a bilateral agreement on the reduction of the roaming rates between the mobile telephony providers of Greece and Israel.

[02] General elections would work as a catharsis, ND leader Mitsotakis says

"General elections will work as a catharsis, the people and the history will not show any leniency," Mitsotakis said and added: "Restart is what citizens are asking for."

Mitsotakis also made criticism on the economic situation: "The so-called offset measures, if voted, they will not be implemented ... The government is trying to deceive the Greek people. The signs are not encouraging, the market has destabilised, the public sector is unable to meet its obligations, the fiasco with EFKA threatens the entire social security system, deposits outflows have increased and thousands of companies and citizens cannot pay their taxes. At the same time, bad loans plague the banking system that cannot support growth."

He added: "If the programme review is not concluded, we are led to a tragic impasse with countless consequences. There is no room for concluding the review positively. If the economy does not gain growth momentum, it will not enter the markets in 2018 and the fourth memorandum will be one-way road. This is why a political change is imperative."

[03] Greece aims at higher income tourists

The conference was organised by five chambers: Greek-American, the British-Hellenic, the Greek-French, Greek-German and Greek-Italian.

"Our effort reflects our concern for the lower tourism revenues despite the increase in tourist arrivals," the president of the Greek-American Chamber Simos Anastasopoulos said and added: "We want to strengthen the efforts of the Greek state so that higher income tourists are attracted. This is the reason why we called the conference 'Tourism of Added Value.' However, the model of lower prices has some limits."

Among the things that need to be done is the development of cruise tourism, the connection of tourism with culture, health and other factors that will extend the tourist season. The 'sun-sea' model is not enough. We need to seek other forms of tourism such as conference tourism in order to boost revenues, he underlined.

[04] Fraport Greece signs 1.0 billion euros loan agreement for 14 Greek regional airports

The consortium of lenders includes: Alpha Bank (284.7 million euros), Black Sea Trade and Development Bank (62.5 million), European Bank for Reconstruction and Development (186.7 million), European Investment Bank (280.4 million), and the International Finance Corporation (154.1 million), a member of the World Bank Group. IFC is also the sole provider of Euro interest rate hedging swaps to help Fraport Greece hedge potential fluctuations in interest rates through the term of the loan.

Of the total loan, 280.4 million euros will be used for the financing of development works at the 14 airports, while 688 million euros will be used as part of the upfront concession payment (1.234 billion euros) to the Hellenic Republic Asset Development Fund. Fraport Greece recently also announced a capital increase raising the company's total capital amounts at 650 million euros.

Fraport Greece, a joint venture of Fraport AG Frankfurt Airport Services Worldwide and Copelouzos Group, is paying a total of 1.234 billion euros for the concession to the Hellenic Republic Asset Development Fund. Fraport Greece will invest at least 400 million during the first four years in construction works for the development of the airports that will support the development of the tourism industry, a key driver of the Greek economy. During the period of the entire concession, infrastructure investments will exceed 1.4 billion.

European Commissioner for Economic and Financial Affairs Pierre Moscovici, in a statement, noted that "modern infrastructure will play a crucial role in supporting Greece's economic recovery. This requires sustained investment to ensure that it achieves its full potential to create jobs and spur growth. This agreement, with the support of the Commission, succeeds in mobilising private investment to finance upgrades to growth-enabling infrastructure that will support, for example, tourism and mobility. This is a prime example of the type of investments the European Commission is committed to support, as they bring growth and development."

Fraport Greece CEO Alexander Zinell hailed the signing of the financing "for the largest concession in Greece" as a historic moment.

"Together with the equity injected by our shareholders, the proceeds of the loans will help funding the upfront payment and the four-year airport rehabilitation program. The successful financing of this complex project is a clear signal regarding the prospects of the Greek economy and the confidence in our company and the reliability of our shareholders Fraport AG and Copelouzos Group. The Hellenic Republic has entrusted us with 14 airports across the country, most of them gateways to thriving tourist destinations. We are proud to play a significant role in the future development of these destinations and in support the country's tourist industry," he said.

Fraport Greece CFO Vangelis Baltas said the agreement was the result of a long and fruitful procedure. "After 15 months of intense work, Fraport Greece signed with Alpha Bank, BSTDB, EBRD, EIB and IFC a financing programme with a total volume of nearly 1 billion euros. Due to the overall positive impacts of the project on the Greek economy, the financing partners supported the transaction from the beginning. Together with the sponsors' contributions, the total investment amount consists of more than 1,65 billion euros. We have all worked together ensuring that this complex project is met with success. We would like to thank our partners for their efforts and contribution to laying solid foundations for the future course of the concession project".

Jonathan Taylor, EIB Vice President responsible for Greece, stated: "The European Investment Bank is pleased to be investing to expand and improve 14 regional airports in Greece. This is a nationally, and regionally, important project. It will create jobs, and provide a major boost for tourism - a sector that has proved its importance, and resilience, during the crisis. The EU Bank will support further investments in Greece that promote growth and help create sustainable and high quality employment."

Ioannis M. Emiris, Executive General Manager at Alpha Bank, said: "We are pleased to arrange, jointly with major International Financial Institutions, the financing of one of the most significant foreign direct investment in Greece in recent years. The 14 regional airports together constitute the major international gateway for Greek tourism, a key contributor to the country's GDP. The financing will support Fraport Greece in increasing the capacity and improving the operational efficiency of these airports, creating new opportunities and advancing the welfare of the respective communities and regions. Alpha Bank delivers financing solutions that support economic growth, reinforce the competitiveness of our economy and create new jobs".

BSTDB President Ihsan Ugur Delikanli said that BSTDB, as a multilateral development bank headquartered in Greece, was "particularly happy to contribute to this major infrastructure project that has a paramount development impact on the Greek economy. This is an important investment in the future of Greece. Furthermore, the project is strengthening synergies among MDBs and private partners and promotes developmental effectiveness for the benefit of this country and the region."

On his part, EBRD First Vice President and Head of Client Services Group Phil Bennett said: "We are delighted to participate in this landmark transaction, which we expect to provide a much needed boost to the Greek economy and in particular Greece's regional development. The modernisation of this key infrastructure, especially supporting tourism, will improve access, exchange and integration. The EBRD is very pleased to support strategic partners who will bring private funding and expertise to the regional airports in Greece and could provide an important model for future infrastructure development projects."

Finally, Dimitris Tsitsiragos, IFC Vice President of New Business, said: "Well-managed airports around the world have proven to serve as economic engines. This landmark concession is an excellent example of how the private sector can step in to support the Greek economy by generating revenues for the government, creating jobs and boosting confidence in vital sectors. IFC's involvement in tourism and infrastructure can attract additional investments and encourage new development projects to promote economic growth".

[05] Piraeus Bank wins top prize for its custodian services

The final list was based on answers offered by 7,000 institutional customers. Piraeus Bank ranked first (top rated) in Greece for its custodian services in last year's contest. This year's prize was awarded during a special ceremony, organized by the magazine, in London.

[06] Mytilineos Group says turnover 1.246 billion euros in 2016

The metals and mining sector reported a turnover of 447.9 million euros in 2016 from 549.4 million in 2015, while EBITDA fell to 84.3 million euros from 98 million in 2015. Average aluminium prices (LME+Premium) fell 14 pct in 2016 negatively affecting the sector's performance. However, recent positive developments in commodities markets with a significant recovery of aluminium prices and a strong US dollar parity, positively affected fourth quarter results. EBITDA jumped 79 pct in the fourth quarter to 30.4 million euros from 17 million in the third quarter.

In the EPC sector, Metka reported a turnover of 445.1 million euros in 2016, from 668 million in 2015, with EBITDA falling to 74.9 million euros in 2016 from 116.4 million in 2015, while net after tax and minorities earnings fell to 53.3 million euros from 68.9 million in 2015. Metka plans to pay a 0.15 euro per share dividend to shareholders (gross). The company said it fourth quarter EBITDA was boosted by a non-repeat revenue of 35.8 million euros (compensation from the implementation of a project in Deir Ali in Syria).

In the energy sector, Mytilineos Group reported a turnover of 363.8 million euros in 2016 from 187.1 million in the previous year, an increase of 94.4 pct. EBITDA jumped to 65.3 million euros from 22.4 million in 2015. Energy production units recorded a 75 pct increase in 2016 with a market share of 10 pct, up from 5.7 pct in 2015, while Protergia ranked first among private energy suppliers in the country.

Mytilineos Group is a leader in the metals, mining, energy and EPC project sectors. It was founded in 1990 and it is listed in the Athens Stock Exchange. Annual turnvoer surpasses 1.3 billion euros and its workforce exceeds 2,700 in Greece and abroad.

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