Athens News Agency: Daily News Bulletin in English, 98-08-26

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

CONTENTS

[01] Tender for Ionian Bank declared null

[02] Gov't says FM's position on S-300s not new

[03] Justice minister withdraws controversial provision

[04] Britain rejects Greek demand for Parthenon marbles damage assessment

[05] Kosovo on agenda of Pangalos-Milo meeting

[06] IOC president due in Athens early September

[07] KKE terms US bombings in Sudan and Afghanistan 'criminal'

[08] Ancient Greek ports in the Mediterranean

[09] Local government to receive 143 buses

[10] Economic News

[01] Tender for Ionian Bank declared null

Athens, 26/8/1998 (ANA)

Commercial's director general Mr. G. Michelis said the two bids submitted by Jan Morton Heger and the Exchange Finance Overseas group did not satisfy two of the basic terms of the tender, namely that the price should be paid- up wholly in cash upon trans fer, and that the prospective buyers' proposal should be accompanied by a certificate of a bank acceptable to the seller, validating their ability to pay the value of the shares.

Mr. Michelis added that the joint 135 billion drachma bid by Greece's Eurobank and Ergo Bank was not considered adequate.

Finally, in response to questions, he said the board had not decided whether the new tender would contain the same or modified terms.

Papantoniou: Earlier, National Economy and Finance Minister Yiannos Papantoniou said that any decisions on altering procedures in a new tender or even the terms of the sale would be taken at the appropriate time.

Speaking to reporters after a meeting with Prime Minister Costas Simitis, Mr. Papantoniou said that he briefed the premier on the course of the economy and forecast that the country's gross domestic product would grow by 3.5 percent this year. He di smissed talk that the inconclusive tender for the sale of Ionian Bank, a medium sized bank, could affect the course of the economy.

Mr. Papantoniou said that pressure on the drachma was attributed to turbulence in international markets. He shared this view with Bank of Greece governor Lucas Papademos. Both men agreed that pressures would be short-lived.

Mr. Papantoniou remained optimistic over the prospects of the Athens Stock Exchange and said that any political impact arising from uncertainty over the sale of Ionian Bank would be soon overcome.

The government commented on the hitch in the plans to sell Ionian saying that the steady, upward and promising course of the Greek economy could not be affected by the sale of a medium-size bank.

Government spokesman Dimitris Reppas stressed that the solvency of the purchaser was not something which could be verified beforehand.

Three bids were opened on Monday in an international tender for the majority stake in Ionian Bank.

Commercial Bank, Ionian Bank's parent company, said the three were Jan Morton Heger, with a bid of 340 billion drachmas, Exchange Finance Overseas (Holdings) with 303 billion and the Latsis Group's EFG Eurobank with Ergobank, with a bid of 135.6 billion .

Reactions: Main opposition New Democracy (ND) spokesman Aris Spiliotopoulos accused Mr. Reppas of "complete ignorance on very basic issues."

He added that "he represents perfectly the government, Mr. Papantoniou and Mr. Simitis, who initiated a procedure, which in the end ridiculed the country internationally."

ND leader Costas Karamanlis on his part called the tender a fiasco and accused the government of amateurism, ineffectiveness and lack of planning.

Furthermore, he stressed the need for Ionian to be privatised through an international tender and with the aid of a financial consultant.

ND head of economic affairs Georgios Alogoskoufis reiterated Mr. Karamanlis' proposal as one of two alternatives.

The second alternative he proposed was the sale of a large package of shares to a single strategic investor and the dispersal of the rest to small investors through the stock market.

He claimed that the government failed because it does not believe in the privatisation policies and noted the need for the immediate privatisation of Ionian, through an international tender and with the aid of a financial consultant.

The Communist Party of Greece (KKE) in its press release noted that the developments surrounding the sale of Ionian are a clear proof of the essence and the operation of the "so called free market."

The announcement also noted that KKE proposes the retention of economic leverage in the hands of the government which could operate in support of the workers in the framework of a popular policy.

Coalition for the Left and Progress (Synaspismos) leader Nikos Constantopoulos said the tender gave the impression of "political insanity." He accused the government of "gambling the country away in the stock market, while it does not want and can not m ove toward the real restructuring changes of development and social cohesion."

The Democratic Social Movement (DHKKI) announcement regarding the issue underlined that the policy of unlimited and not well thought out privatisation ridicules the country internationally and multiplies its economic and social problems.

General Confederation of Workers of Greece (GSEE) noted in its press release that the piecemeal privatisation of Ionian, without a comprehensive strategic plan on the role of the banking system in Greece and the lack of a legal framework, can lead the sector and the small investors to severe trials.

Athens News Agency

[02] Gov't says FM's position on S-300s not new

Athens, 26/8/1998 (ANA)

Furthermore, he added that the government of Cyprus is sovereign in its own right, but both the Greek and the Cypriot governments have the common responsibility on the handling of this national issue.

Finally, Mr. Reppas noted that the Joint Defence Doctrine remains in force as always, while the responsibility of Greece as a guarantor power was in force before the creation of the aforementioned doctrine.

Mr. Pangalos, on Monday, noted that the substance of the issue at hand was the restarting of the intercommunal talks and not the missiles, an issue on which Greece has only an advisory role.

Main opposition New Democracy (ND) spokesman Aris Spiliotopoulos noted in a press release the need for Greece to provide complete and actual support to the Cypriot government, in light of the new American initiative on the Cyprus issue, next month.

He claimed that Mr. Pangalos instead of supporting the Cypriot government he made an incomprehensible effort to distance the policy of Athens from that of Nicosia.

In a related development, ND deputy and former leader Miltiades Evert yesterday after his meeting with Defence Minister Akis Tsohatzopoulos expressed his concern over Mr. Pangalos' statements.

He expressed the hope that tomorrow's meeting between Cyprus President Glafcos Clerides and Prime Minister Costas Simitis will not result in a backtracking on the missile issue.

He added that both Greece and Cyrpus are jointly co-responsible for the doctrine, "which is supported by everybody."

ND head of defence affairs Ioannis Varvitsiotis said that Mr. Pangalos' statements in essence constitutes the first step toward the abolition of the Joint Defence Doctrine.

He added that any backtracking on the missile issue will be very damaging to Greece's national interests and possibly dangerous for the national security of the country.

Athens News Agency

[03] Justice minister withdraws controversial provision

Athens, 26/8/1998 (ANA)

Justice Ministry. The minister recently expressed his concern over defamatory and slanderous statements against citizens by "unidentified people" expressing their opinions on television and radio programmes and initially proposed an up to two-yea r prison term for the broadcast of slanderous or defamatory statements.

According to the minister, during his meeting with Prime Minister Costas Simitis, Mr. Yiannopoulos was given the authority to handle the issue in his capacity "as the minister of justice and within the framework of the citizens' interests, for the prote ction of their personalities and within the ordered limits of the Constitution."

Mr. Yiannopoulos also noted that in the recent past he had spoken on the issue to the management of television, radio and newspapers as well as to the Athens Journalists' Union (ESHEA), but has yet to receive an answer.

Furthermore, he reiterated that "the issue is up to ESHEA to say how the personality of those that are slandered and defamed by unidentified citizens will be safeguarded."

In a related development, the Vienna based Helsinki International Federation for Human Rights condemned today any such legislation, which could limit the freedom of speech in broadcast journalism. The federation noted that if such legislation be came law, then Gre-ece will be in violation of its commitments on human rights issues to the Council of Europe and the Helsinki Pact.

Athens News Agency

[04] Britain rejects Greek demand for Parthenon marbles damage assessment

Athens, 26/8/1998 (ANA)

"The British government deems historian St Claire's observations (on the damage done to the marbles) excessive, but I myself see it as an important and open issue", Culture Minister Evangelos Venizelos underlined while making the announcement yesterday.

Mr. Venizelos added that his British counterpart had accepted his invitation to visit Greece for a discussion on issues of Greek-British cultural cooperation, but nevertheless commented that such cooperation "will never become perfect, unless the marble s issue is resolved".

A series of new initiatives for the return of the marbles -now housed in London's British Museum- to Greece will be announced by the culture minister within the next few days.

Athens News Agency

[05] Kosovo on agenda of Pangalos-Milo meeting

Athens, 26/8/1998 (ANA)

Mr. Pangalos will be in the Albanian town of Korce on Sunday for the official opening of a Greek consulate there.

Diplomatic sources told the ANA that the two ministers would meet on the sidelines of the ceremony, and would also discuss the course of Greek- Albanian relations.

Greece and Albania decided two years ago on the establishment of a Greek consulate in Korce and an Albanian consulate in Thessaloniki on the principal of reciprocity.

The Greek consular service in Korce has already started up operation, headed by career diplomat Nikos Vamvounakis, while Tirana is presently in the process of setting up its consulate in the northern Greek capital.

Athens News Agency

[06] IOC president due in Athens early September

Athens, 26/8/1998 (ANA)

In a related development, the Organising Committee of the Athens 2004 Olympic Games is speeding up procedures for the construction of projects for the Athens Games.

In its 9th meeting yesterday the committee also decided to open procedures for the hiring of technical consultants, in accordance with European Union provisions, to support the general management of projects.

Athens News Agency

[07] KKE terms US bombings in Sudan and Afghanistan 'criminal'

Athens, 26/8/1998 (ANA)

It also announced that "the USA and the other imperialist powers are not only interested in immediate economic and political advantages but in familiarising the peoples with criminal military action in the name of peace and security, in the name of arbi tration, terrorism and the so- called defence of Human Rights."

The KKE's politbureau criticises finally the EU member states for not having expressed - not even formally - any protest, and the Greek government for its position concerning this question.

Athens News Agency

[08] Ancient Greek ports in the Mediterranean

Athens, 26/8/1998 (ANA)

The Network of Ancient Greek Ports in the Mediterranean was established three years ago with the support of the European Union and its main target is to develop relations between ports or port-towns that once used to be ancient Greek in south and southe astern Europe.

The "Greek Week", sponsored by the network and set for the first week of November this year, will include a number of cultural and educational functions on themes relating to the ancient and modern Hellenic culture.

Athens News Agency

[09] Local government to receive 143 buses

Athens, 26/8/1998 (ANA)

Under the terms of the contract, the Italian supplier, BEKO, has undertaken to deliver all the buses by May 1999. The procurement is within the framework of the government's wide-ranging Capodistrias programme aimed at reorganising local government.

Mr. Papademos said all other procurement contracts for machinery and equipment requested by municipalities were still at the stage of being approved by the State Audit Council, adding that a further three contracts for equipment could be signed next wee k.

All procurements for new municipalities to be formed under the Capodistrias programme, he said, will be delivered to the respective local government authorities by summer 1999.

Athens News Agency

[10] Economic News

Athens, 26/8/1998 (ANA)

The company's sales rose to 47.8 billion drachmas from 38.8 billion in the corresponding period last year, while its pre-tax profits soared 103.7 percent to 5.4 billion drachmas from 2.65 billion the first half of 1997.

Elval has earmarked asset investments totalling 11.9 billion drachmas in 1998, up from 8.08 billion the previous year.

The company employs 1,017 workers. Its 1997 figures showed that exports accounted for 77 percent of production and for 78 percent of sales volume.

Elval exported 42.2 percent of its production to European Union countries, 25.8 percent to Far East countries, 16.5 percent to the US and 4.1 percent to Turkey.

Its assets totalled 11.3 billion drachmas in 1997. Its sales totalled 95.2 billion drachmas. The company reported profits of 6.04 billion drachmas last year.

Farmers claim heatwave destroys maize crop: A blistering heatwave has caused extensive damage to this year's maize crop, farmers in the northwestern region of Kavala claimed yesterday.

The farmers told a news conference that unseasonably high temperatures in Greece this year could mean that more than 60 percent of about 4,000 acres of maize could be worthless and are asking the government for compensation.

The heatwave earlier this month came hot on the heels of hailstorms and "finished off" the crop, farmers said.

An official estimate of the damage is expected as soon as the Kavala Agricultural Directorate's office completes a report.

Eurobank makes first deposit for Cretabank: The Eurobank Group yesterday deposited 28 billion drachmas which represents 30 per cent of the price for the purchase of Cretabank.

The procedures for the signing of the final agreement for the transfer of Cretabank to the Eurobank Group are expected to be concluded by September 25.

New Athens buses to bare design and colours of Tseklenis: Greek fashion and interior designer Yannis Tseklenis has designed the exteriors of the new ultra-modern Athens buses, which were revealed yesterday by the Athens urban transport organisation OASA. The 750 new fully air-conditioned and electronically equipped buses and minibuses, slated to go into circulation in Athens next month, together with 200 new trolleys, are part of an ambitious prog ramme which, in conjunction with the Athens metro, are designed to completely overhaul and modernise commuter traffic in Athens.

The Mercedes, Volvo and Neoplan buses, being assembed under licence in Greece by the Hellenic Vehicle Industry and Sarakakis Bros., bear the designs and colours of Yannis Tseklenis, who lately has specialised in redesigning the appearance of the mass tr ansport means. In the past decade, Mr. Tseklenis has designed the refurbishing of the entire Olympic Airways fleet, the Hellenic Railways' trains and buses, a fleet of hydrofoils, and the new trolleys.

"I feel that Athens, my home and inspiration for many years, is in desperate need of colour and a little sense of humour," Mr. Tseklenis told the ANA, and he has given the new trolleys and buses plenty of both.

The new turquoise/blue/yellow buses, symbolising the sky, sea and sun, will compete with the new purple/yellow trolleys on the streets of Athens.

In addition, the rear of the vehicles have been designed to carry Scotch- printed themes of cultural content. The first such theme will be a photo reproduction of an ancient Athenian marble relief with a giant inscription reading "The Parthenon Marbles b elong to Athens".

"Just like that, in plain English," Mr. Tseklenis said. According to OASA, 169 of the new buses will be in service in Athens by the end of the year, while the rest will be gradually introduced by the end of the year 2001. Of the total 750 buses, 340 will be articulated buses, 210 regular buses and 200 mini buses.

Auction of state bonds: None of the offers by primary dealers were accepted in yesterday's auction of five-year bonds bearing a fixed annual interest rate of 8.9 per cent, the finance ministry announced.

In a related development the finance ministry conducted two reverse auctions of 10-year Greek state bonds issued last March 26 for 30 billion drachmas and seven-year state bonds April 8 issued for the same amount.

The offers stood at 68 billion drachmas for the 10-year bonds and at 84.5 billion for the seven-year bonds.

Finally, the annual coupon for the 10-year bond was 8.6 per cent and for the seven-year stood at 8.7 per cent.

Athens News Agency

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