From: tzarros@ccs.carleton.ca (Theodore Zarros) Subject: News (in ENGLISH)- Mon, 16 May 1994 (Greek Press Office BBS, Ottawa). Athens News Agency Bulletin, All restrictions on capital movement lifted, drachma freely exchangeable ----------------------------------------------------------- Athens, 16/5/1994 (ANA): The government Saturday announced the lifting of all restrictions on capital movement as of today, but said it would continue to implement its anti-inflationary exchange policy. Announcing the decision, National Economy Minister Yiannos Papantoniou said that the relevant presidential decree would be signed by President Constantine Karamanlis Saturday and promulgated today. Mr. Papantoniou told questioners deregulation was "total", but government anti-inflationary foreign exchange policy would remain "unchanged", in effect signalling the policy of allowing the drachma to gradually slide would continue. The decision means that as of today, Greeks will be able to freely convert drachmas into other currencies, keep foreign exchange accounts, carry out transactions in foreign exchange abroad, incur loans in foreign exchange, and effect all kinds of investments or purchases in Greece or abroad using foreign exchange. At present, the interest rates on foreign exchange deposits in Greece are much lower than corresponding rates for drachma accounts, whereas loans in foreign exchange are far more attractive than drachma ones. Mr. Papantoniou said that the government and the central bank had "all the means" to defend the national currency against continuing speculation against the drachma noted in recent days, as a result of rumours of an impending devaluation. He said that the date for deregulating all capital movements had been brought forward from July 1 because of "groundless and unheard-of rumours" of devaluation. "For this reason," he added, "the government has decided to go ahead with setting free immediately short-term capital movements as of May 16". The decision applies only to countries of the European Union. Medium-term capital movements (over a year's duration) were already free. So far the drachma parity had been determined administratively by the Bank of Greece. Now Greeks can open bank accounts in any currency, change drachmas at instant notice and hold any currency they wish. Setting free capital movement, Mr. Papantoniou said, would strengthen Greece's foreign exchange position, "as is the case with many other countries", since it will attract foreign capital. "This assessment," he added, "is supported by a positive development of the Balance of Payments and the rate of inflation, as well as the interest-rate policy being implemented". "The freeing of capital movement and, in general, an open-market policy, supports the course of development of the Greek economy and contributes to its more rapid adjustment to the conditions prevailing in the European Union," Mr. Papantoniou said. A certain amount of mobility is expected today at inter-bank level, with emphasis on the foreign exchange market, and a limited tendency for upward movement of interest rates on drachma transactions. National Economy Ministry sources estimate mobility will last a few days, but the market should have reached a balance within a week. Banks are not expected to be in a position to respond fully to the demand for foreign exchange immediately. Analysts point out that with exchange reserves at record levels, the Bank of Greece is prepared to counter a run on the drachma. In order to attract foreign exchange, the government is also launching today a new series of bonds with dollar and ECU clauses. Prime Minister Andreas Papandreou Saturday termed the government decision as a "potent answer to speculators' efforts to undermine the drachma," which, he believed, would stand its ground well. Reactions --------- Athens, 16/5/1994 (ANA): Opposition reaction was mixed. New Democracy party leader Miltiades Evert described the decision to free the foreign exchange market as basically correct, but expressed opposition to a devaluation of the drachma. Coalition of the Left and Progress also approved the government move. Political Spring party leader Antonis Samaras, on the other hand, described the decision as "disastrous" for the Greek economy and stated his opposition to the planned "aggressive" sliding of the national currency. The Communist Party also condemned it, saying it would cause capital invaluable for development to flee abroad. PASOK Executive Bureau poll, Tsohatzopoulos returned, many seniors out ----------------------------------------------------------------- Athens, 16/5/1994 (ANA): Interior Minister Akis Tsohatzopoulos was Saturday re-elected Secretary of the ruling PASOK party's Central Committee. Of the 148 votes cast, Mr. Tsohatzopoulos received 103, Dimitris Tsovolas 13, 29 ballots were blank and 3 null. Three members of the Central Committee were absent. The sessions of the first meeting of the Central Committee ended with the election of new members of the Executive Bureau, which held a good many surprises for top party members. Among those not elected were Alternate Foreign Minister Theodoros Pangalos, government spokesman Evangelos Venizelos, Foreign Minister Karolos Papoulias, Foreign Under-secretary George Papandreou and Vasso Papandreou. Commenting on the result Mr Pangalos said the Central Committee "had different views from the party congress." Ms Papandreou made a statement to the same effect. Industry Minister Costas Simitis said the new Central Committee "ought to realise that a greater degree of unity will be needed in future than exhibited at this election." Top of the list came Parliament President Apostolos Kaklamanis with 90 votes and Environment Minister Costas Laliotis with 85. EU ministers stress need for common policy on environment ---------------------------------------------------------- Athens, 16/5/1994 (ANA): European Union environment ministers meeting on Santorini, reached agreement Saturday on the need for a common policy in addressing problems caused to environment by tourist development. It is the first time ministers agree on a common text of conclusions. Environment, Town Planning and Public Works Under-secretary Elizabeth Papazoi, who chaired the meeting, and Greek Commissioner Ioannis Paleokrassas referred to "breaking" tradition. According to the ministers' decision, regions having priority in drawing up a common policy are coastal zones, mountain areas, and urban areas with historical centres. 1. In coastal zones emphasis should be laid on administering water resources, combating pollution and protecting sensitive regions. Environment management programmes related to tourism should focus on the following: - On coastal regions constituting tourist resorts. - Coastal regions rapidly developing into tourist resorts. - Regions of natural beauty of special environmental interest. 2. In agricultural and mountainous areas emphasis should be laid on combating existing environmental decline by elaborating environment management programmes at local and regional level in regions facing the problem of abandonment or intensive development due to tourism. 3. In rural areas having a strong historical character, emphasis should be placed on managing the flow of visitors and controlling noise. The council agreed to prepare pilot programmes on development on islands of up to 100,000 permanent residents in co-operation with the European Commission. Such a pro-gramme will be implemented in Santorini at an initial stage. The text of conclusions stresses that the development of local environment management plans should be encouraged to control tourist activity and improve environmental quality. Small islands provide a unique opportunity for implementing a development strategy. The ministers called on the Commission to examine the question of special support to relevant efforts by member states. They also called on the Commission to examine the means of creating an inter-European environmental network of small islands as a way of acting for environmental protection. On the sidelines of the Council, the Environment Ministers of France and Denmark raised the issue of nuclear plants in central and eastern European countries. It was said that the EU should promote action towards modernisation and, in certain cases, agree to the closure of nuclear plants posing a threat of accident. Environment Commissioner Ioannis Paleokrassas reiterated that about 150 nuclear plants should close down, adding that there is no timetable to this effect. PM meets with New Yugoslavia President --------------------------------------- Athens, 16/5/1994 (ANA) Prime Minister Andreas Papandreou met with New Yugoslavia President Lilic at the Intercontinental Hotel Saturday, on the sidelines of ruling PASOK party first Central Committee session. Evert asks other Opposition leaders abstain from Europoll --------------------------------------------------------- Athens, 16/5/1994 (ANA): New Democracy party leader Miltiades Evert, speaking on the island of Samos yesterday, called on other opposition parties to co-ordinate action by not participating in the forthcoming Euroelections, if the government refused to appoint caretaker ministers. He said he would raise the matter at today's meeting of the inter-party committee at the Interior Ministry, but made it clear that New Democracy would not abstain from the elections if the other opposition parties did not agree to do so as well. In statements yesterday, the Political Spring party (Pol.A) and the Coalition of the Left and Progress (SYN) rejected Mr Evert's proposal. Pol.A leader Antonis Samaras also criticised the government for its refusal to appoint caretaker ministers, but called the Evert proposal as "totally lacking seriousness". Mr Evert also said New Democracy will soon assume responsibility of dealing with major national economic and social issues which have reached a stalemate. Referring to national issues, he reiterated the view that the main danger comes from the East, Greece's northern neighbours not posing a real threat. If the Berisha regime (in Albania) offered a challenge - to which Greece would respond -, he said, it is clear that this would be done in order to create entanglement in the East. Replying to Mr Evert, government spokesman Evangelos Venizelos said it was clear the leader of the Opposition was afraid of the outcome of the election, and was making vain attempts to create artificial tension. SYN Political C'ttee endorses party policy package -------------------------------------------------- Athens, 16/5/1994 (ANA): The Coalition of the Left and Progress (Synaspismos) Central Political Committee yesterday endorsed the party's basic policies in the run-up to next month's Euro-elections, as proposed by party leader Nikos Costantopoulos, and a proposal by the Political Secretariat on the Euro-ticket composition submitted by Nikos Hountis. Eurodeputies Alecos Alavanos and Michalis Papayiannakis will hold top two places on the Euro-ticket and Fotini Sianou, alternate-secretary of the General Confederation of Workers of Greece (GSEE), third. A representative of the New Ecological Initiative will be proposed for fourth place. The party's complete Euro-ticket will be made public in the next few days, after the Politburo completes an examination of additional proposals made during the Central Political Committee meeting.