Athens News Agency: Daily News Bulletin in English, 98-10-27

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

CONTENTS

[01] Positive Morgan Stanley report forecasts Greece's EMU accession in 2000

[02] Stock Exchange up

[03] Boutaris

[04] TEB announces share capital increase

[05] Tax incentives in the works

[06] Public subscription for third phase of OTE flotation

[07] Bill on insurance fund in Parliament next month

[08] Forecast for investments in Athens bourse

[09] Vartholomeos-Simitis meet on Mount Athos

[10] Greece ready to bid on Archimedes' palimpsest

[11] 'Oxi Day" celebrated tomorrow in Thessaloniki

[12] Gov't on remarks on Greek-Turkish relations

[13] ESHEA protests closure of three Serbian newspapers

[14] Israeli ambassador to Athens cites Greek role for Mideast peace process

[15] Skandalidis, Kaklamanis interviews focus on 'next day' for PASOK

[16] Points tabled by PM towards EU counterparts also applied in Greece: Gov't

[17] Athens circulates 50-page document to EU counterparts

[18] New facilities for 2004 Olympics to begin after the year 2000

[19] Gov't says police's `bad press unwarranted`,ND reiterates call for Romeos' firing

[20] State to pay expenses of Yugoslav teen's funeral

[21] Roussel lawsuit against Onassis Foundation president Papadimitriou

[22] Cidesco conference in Athens

[23] Later deadline for 'green card' applications

[01] Positive Morgan Stanley report forecasts Greece's EMU accession in 2000

Athens 27/10/1998 (ANA)

According to Morgan Stanley's assessments on inflation in Greece for 1999, it projects an average of 2.4 per cent, allowing the nation to meet the relevant accession criterion.

The Morgan Stanley report notes that in its recent report on the economies of the EU's 15 member-states, the European Commission assessed that inflation will reach 2.9 per cent in Greece in 1999, while the "threshold" for entry to EMU (according to the three lowest inflation rates in the EU) was assessed at 2.7 per cent.

Morgan Stanley states that it is more optimistic than the European Commission because it believes that the Greek government's administrative measures (cutbacks in indirect taxes and an agreed price freeze) will prove to be effective. They will consequen tly allow a decrease in inflation by 1.3 percentage points from the 3.7 per cent level which, according to the report, Greek inflation would have reached in 1999 had these administrative measures not been taken.

Regarding the public deficit and the public debt, the report states that Greece will probably achieve the two Maastricht criteria in 1999. It says that "in our view, it is justified for us to remain optimistic in connection with Greece's possibilities to join EMU. Indeed, as international money markets become less unstable, more and more 'players' in the market appear to endorse this view on convergence."

On the other hand, Morgan Stanley states that it is less optimistic than the Greek government and the European Commission on the growth rate, anticipating a 3 per cent GDP increase in 1999 compared to 3.7 anticipated by the former and 3.5 per cent by the latter.

Gov't spokesman : International financial institutions' forecasts for Greece's economic outlook and convergence towards Economic and Monetary Union (EMU) remain positive, government spokesman Dimitris Reppas said yesterday.

He was commenting on a press report by the Athens daily newspaper "Athinaiki", according to which the International Monetary Fund expects Greece to miss the inflation criteria and fail participation in EMU by 2001.

Mr. Reppas said that the IMF had submitted its report on the Greek economy in May and that the government did not know of any other report.

He remained confident, however, that the government's new tax measures would help in achieving the inflation criteria.

Mr. Reppas also referred to a recent European Commission report and Morgan Stanley's forecast that Greek inflation will fall to 2.4 percent by the end of 1999.

Athens News Agency

[02] Stock Exchange up

Athens 27/10/1998 (ANA)

The general index ended 1.33 percent higher to 2,104.40 points. Turnover was 37.6 billion drachmas.

Sector indices scored gains. Banks jumped 2.56 percent up, Insurance fell 0.76 percent, Investment rose 0.94 percent, Leasing increased 1.16 percent, Industrials ended 0.06 percent up, Construction rose 1.15 percent, Miscellaneous increased 0.67 percent and Holding soared 4.75 percent.

The parallel market index for small cap companies ended 1.11 percent higher.

Broadly, advancers led decliners by 133 to 90 with another 19 issues unchanged.

Mytilineos, Bank of Piraeus and Strintzis were the most heavily traded stocks.

Macedonia-Thrace Bank, Attica Bank, Marfin Invest, Bank of Piraeus, Altec, Aspis Bank, Aspis Invest, Dorian Bank, Attica Enterprises, Atemke, Technodomiki, Parnassos, Boutaris, Attica Aluminium, Dimitriadis, Etma and Lanacam scored the biggest percentage gains, hitting the daily 8.0 percent limit up.

Corfil, Ergas, Keranis, Lambropoulos, Sportsman, Development Invest, Daring and Ionian Invest suffered the heaviest losses. National Bank of Greece ended at 37,830 drachmas, Ergobank at 24,400, Alpha Credit Bank at 21,300, Ionian Bank at 10,380, Hellenic Telecom at 6,350, Delta Dairy at 3,395, Intracom at 10,650, Titan Cement at 17,400, Hellenic Petroleum at 2,265 and Minoan Lines at 6,070.

Athens News Agency

[03] Boutaris

Athens 27/10/1998 (ANA)

The deal provides for the transformation of an existing short-term debt to long-term paper. The deal, along with a successfully completed share capital increase scheme, totalling 1.4 billion drachmas, is expected to help in a restructuring of the group.

Boutaris reported net profits of 220 million drachmas in the first six months of the year, its first following four consecutive year losses.

The group's consolidated sales totalled 9.2 billion drachmas for the first half of 1998. The board said a target of annual sales totalling 19.7 billion drachmas remained feasible.

New capital arising from a share capital increase scheme will be used to improve the group's financial condition, to increase its stake in Boutaris Commercial SA, its affiliate, and to finance a more aggressive strategy in promoting a range of new produ cts in the Greek market.

Athens News Agency

[04] TEB announces share capital increase

Athens 27/10/1998 (ANA)

An extraordinary shareholders' meeting approved a plan to issue 5,796,000 new common nominal shares, to be offered with a preference option to existing shareholders at a ratio of one for two old shares at 700 drachmas each.

TEB's total number of stock shares would reach 17,388,000 following the plan.

The new capital, which will raise its equity capital to 14.1 billion drachmas, will be used to finance the company's participation in self- financing projects in Greece.

TEB participates in a bridge project linking Rio-Antirrio in western Greece and a road network between Spata-Stavros-Elefsis linking west and east Attica.

Athens News Agency

[05] Tax incentives in the works

Athens 27/10/1998 (ANA)

Finance ministry officials said yesterday that a plan to withdraw old technology cars would face great technical difficulties and would not help decisively in an effort to contain inflation, the government's top priority in economic policy.

They said that a proposal to lower VAT charges on Public Power Corp.'s bills from 18 to 8.0 percent - backed by Development Minister Vasso Papandreou - would result to a 0.18 percent decline in inflation and a 80 billion drachmas revenues loss for the state.

On the other hand, a proposal made by National Economy and Finance Minister Yiannos Papantoniou, and most probably to be adopted according to his ministry officials, on lowering a special sales tax on vehicles could result to a 0.35 percent drop in inflation and to a 85 billion drachmas loss.

Finance ministry officials expect car taxes to be lowered by 20 percent leading to a 10 percent discount in car prices up to 1,400 cc horsepower.

Officials said that final decisions would be taken in a cabinet meeting on Friday.

They acknowledged that October was a difficult month for this year's budget following a government decision to lower fuel taxes that could hurt monthly revenues.

Athens News Agency

[06] Public subscription for third phase of OTE flotation

Athens 27/10/1998 (ANA)

Until Friday, investors will be able to declare the amount they wish to invest in OTE shares.

Investors who will keep their shares for at least six months will be entitled to a bonus of one free share for each 10 new shares. Meanwhile, over the same period, namely during the current week, OTE employees will be on strike to protest the new flotat ion which they consider superfluous and harmful.

The final share price will be announced on Nov. 2 and the exact distribution of 50.4 million shares (corresponding to 10 per cent of the organisation's share capital) between Greeks and foreigners, private persons and institutional investors.

According to an announcement by main opposition New Democracy cadre Athanasios Heimaras, the flotation of the third package of OTE is only taking place to support the state budget without even one drachma reaching OTE for investments, while necessary transparency is not safeguarded.

Athens News Agency

[07] Bill on insurance fund in Parliament next month

Athens 27/10/1998 (ANA)

Clauses contained in the bill concerning the unification of insurance funds of the self-employed, (TEBE, TSA and TAE) were discussed at a meeting chaired by Labour Minister Miltiades Papaioannou yesterday. The meeting was attended by Social Insurances U ndersecretary Nikos Farmakis, the governors of the insurance organisations to be unified, as well as employees' and pensioners' representatives.

Mr. Papaioannou presented finalised proposals for the creation of the new insurance organisation for self-employed professionals, while views expressed by the agencies' representatives were also examined.

Athens News Agency

[08] Forecast for investments in Athens bourse

Athens 27/10/1998 (ANA)

The development is considered to be very positive for the course of the Athens bourse.

According to the bill expected to be tabled in Parliament early next month by the labour and social insurances ministry, the way will be paved for the free management of the funds' liquid assets which currently exceeds 3.5 trillion drachmas.

The deregulation of the insurance bodies' available capital will be gradual.

Insurance funds gained 270 billion drachmas in 1997, investing in shares of listed companies 14.50 per cent of their property, registering an increase in their profits by 125 per cent compared to 1996.

Athens News Agency

[09] Vartholomeos-Simitis meet on Mount Athos

Athens 27/10/1998 (ANA)

Mr. Simitis, accompanied by Deputy Foreign Minister Yiannos Kranidiotis, attended a Church service conducted by the Patriarch.

Vartholomeos noted the work done by the Ecumenical Patriarchate in reforming the Autonomous Orthodox Church of Albania and in overcoming differences in the Bulgarian Church as well as the Ecumenical Patriarchate's campaign to protect the environment.

Vartholomeos and the abbot of the Monastery, Alexios both briefly referred to the message of the Orthodox Church in modern times and wished the premier luck in what they called his "difficult" mission. Mr. Simitis underlined that the Greek state was fully aware of the great mission of the Ecumenical Patriarchate and would do what it could to contribute to its success.

Vartholomeos and Mr. Simitis had a private meeting after the service.

Mr. Simitis and his entourage were expected to leave Mount Athos for Athens later yesterday, while Vartholomeos and his entourage also ended their official visit yesterday, returning to Istanbul.

Athens News Agency

[10] Greece ready to bid on Archimedes' palimpsest

Athens 27/10/1998 (ANA)

Mr. Venizelos said that his appeal for donations to bid for the palimpsest if the auction did go ahead despite Greece's appeal that it be returned to its owners, had been enthusiastically responded to.

"The money allowing us to participate in the auction or buy the item outright has been collected thanks to generous sponsors," he said.

Christie's has set opening bids for the manuscript at between 800,000 and 1.2 million dollars.

Mr. Venizelos said on Friday that the palimpsest was legally the property of the Patriarchate of Jerusalem.

At an urgent press conference, he said investigations by the ministry into the ownership status of the palimpsest showed that it had been in the possession of a French family for 75 years, which had acquired it from a monastery in Istanbul.

However, Mr. Venizelos said, the manuscript originally came from the Patriarchate of Jersalem and Patriarch Diodoros had informed his ministry that there was no record of it ever having been sold. The Patriarchate has a legal right to apply for the return of the manuscript from the present owners and the ministry has appointed a lawyer to coordinate legal action, Mr. Venizelos said.

"The culture ministry supports the efforts of the Jerusalem patriarchate for a return of the palimpsest and we believe that the authority and tradition of Christie's will contribute to righting this historical wrong," he said yesterday.

"For Greece it is not only a legal issue but mainly a moral and historical one, and a matter of respect for the world's cultural heritage," he added.

Christie's representation : A representative of Christie's later told reporters that there was no reason to call off the auction, slated for October 29, and that the auction house was satisfied that the palimpsest was being put up for auction by its rightful owners.

Felix Owens, from Christie's London, told reporters that the manuscript was one of a group bought from the Istanbul monastery and now found in US and European libraries.

He criticised the fact that the Jerusalem Patriarchate had not ever said the manuscript was missing or stolen, claiming that this was due to the fact that it had been actually sold by the monks.

The Patriarchate's claim, he said, was "obviously inspired by (the palimpsest's) appearance at auction".

A formal response from Christie's to a lawyer appointed by Greece to request the return of the palimpsest was expected later yesterday.

Athens News Agency

[11] 'Oxi Day" celebrated tomorrow in Thessaloniki

Athens 27/10/1998 (ANA)

Yesterday, Thessaloniki celebrated the feast day of its patron saint, Agios Dimitrios, and the city's liberation from Ottoman rule. Tomorrow marks the commemoration of 'OXI Day' -- the 58th anniversary of Greece's entry into WWII.

A mass held yesterday morning at Agios Dimitrios Cathedral by Archbishop Christodoulos was attended by President of the Republic Kostis Stephanopoulos, Defence Minister Akis Tsohatzopoulos and main opposition New Democracy party leader Costas Karamanlis, among others.

Mr. Stephanopoulos was scheduled to speak at a traditional dinner given in his honour by the commander of the 3rd Army Corps.

The celebrations will conclude tomorrow with a military and civilian parade before the President of the Republic.

Mr. Tsohatzopoulos said yesterday that "at a time when we are going through a framework of destabilisation and crisis again in the Balkans, Greece with Thessaloniki and Macedonia as the central axis, is distinguished as a pole of stability, peace and cooperation..."

In a statement, Coalition of Left and Progress (Synaspismos) recommended the re-composition of a Foreign Affairs National Council toward a "minimal national under-standing".

Athens News Agency

[12] Gov't on remarks on Greek-Turkish relations

Athens 27/10/1998 (ANA)

Greek foreign policy aspired to relations of peace and cooperation with all countries, he told a press briefing when asked to comment on a statement by Parliament President Apostolos Kaklamanis in an interview with an Athens daily newspaper, namely, that war with Turkey was perhaps inevitable.

Mr. Reppas said, adding however, that "friendship must obey rules and conditions such as the avoidance of provocative actions."

"That is how Greece acts, and would wish that the other side did the same," Mr. Reppas said.

"But this is not the case, and that is why there is tension between" Greece and Turkey, he added.

Greece, he said, believed that things would not lead to such a "major crisis", which it did not want, just as all sensible people did not want. Asked about two Hellenic Air Force F-16 fighters remaining at the Paphos air base, he said that although the jets' permanent base was in Greece's territory, in the context of the Greece-Cyprus joint defence doctrine, such a temporary stationing increased stability in the area and the island republic's defence.

Athens News Agency

[13] ESHEA protests closure of three Serbian newspapers

Athens 27/10/1998 (ANA)

ESHEA also wrote to the Secretary General of the International Journalists Federation pointing out that "silencing of the press" is not only limited to Yugoslavia, it also exists in Turkey.

Athens News Agency

[14] Israeli ambassador to Athens cites Greek role for Mideast peace process

Athens 27/10/1998 (ANA)

Mr. Curiel, speaking at a news conference on the recently signed Israeli- Palestinian interim accord, said Greece's holding of talks between Israeli and Palestinian personalities in Vouliagmeni and Rhodes recently had been positive for the peace process.

"Greece can continue in this way to act in the benefit (of the Mideast peace process) and also support the new process, whether through the European Union or through economic means, as Israel lends particular weight to the economic development of the Palestinians," Mr. Curiel said.

Greece, Mr. Curiel said, could also undertake more general initiatives related to the wider southeast Mediterranean region.

He added that Turkish-Israeli defence cooperation was not directed at either Greece, Cyprus or any other country, pointing to the neutral stance taken by Israel over the recent Turkish-Syrian crisis.

Athens News Agency Athens 27/10/1998 (ANA)

The "Bulletin" will not be published tomorrow, Wednesday, Oct. 28, due to commemorations of the 58th anniversary of Greece's entry into WWII, a national holiday.

We will reappear on Thursday.

Athens News Agency

[15] Skandalidis, Kaklamanis interviews focus on 'next day' for PASOK

Athens 27/10/1998 (ANA)

However, not all within the ruling party share that view.

PASOK Secretary Costas Skandalidis, though, is not one of them. In an interview carried in yesterday's issue of the 'Ethnos' newspaper, he said his view is that significant changes should be made now, as it was a time of responsibility and daring.

Mr. Skandalidis stressed, however, that the initiative for any changes rested with PM Costas Simitis, to whom he had suggested in letter a few days ago that a structural reshuffle should take place.

Further, in view of preparations for the party's spring congress, Mr. Skandalidis said he believed that changes should also be made within the party itself to form "a real leadership team".

As regards PASOK's internal affairs, Mr. Skandalidis spoke of a rallying of all forces...and stressed that "no scapegoats should be sought for decisions of a collective responsibility."

Parliament President Apostolos Kaklamanis, who attributes PASOK's poor performance to the attitude of certain groups within the party, is also in favour of changes both in the government and the party.

In an interview with yesterday's "Ta Nea", Mr. Kaklamanis said he did not share either of the views: electoral results as disastrous or showing complete indifference.

He further expressed his concern over what he called the negative relationship between PASOK and the left.

Athens News Agency

[16] Points tabled by PM towards EU counterparts also applied in Greece: Gov't

Athens 27/10/1998 (ANA)

He said that Mr. Simitis feels the responsibility of leading Greece into EMU (Economic and Monetary Union) and at the same time of safeguarding the rights of Greek citizens.

Mr. Reppas said that the government's effort has a national character and is also expressed with social policy measures which offset the losses of groups of the population who are dealt a blow by the measures. He added that the PM's proposal at the Poertschach summit is also included there.

Referring to the outcome of the EU summit and the premier's intervention, main opposition New Democracy party spokesman Aris Spiliotopoulos said that the Prime Minister's trip was not as pleasure trip nor a personal public relations operation at the sum mit and Mr. Simitis should have raised the issue of the European Commission's recommendation which sidesteps the Greek veto on the funding of Turkey.

Mr. Spiliotopoulos said that instead of this, the premier embarked on an ambitious essay of concepts on how the political unification of Europe must be promoted, how unemployment must be handled, etc.

Athens News Agency

[17] Athens circulates 50-page document to EU counterparts

Alternate Foreign Minister George Papandreou said yesterday that a 50-page document handed out by the Greek delegation to EU member-states during a Union meeting on general affairs here was an "infrastructure document in view of the foreign ministers' council meeting on Nov. 9, when a recent recommendation of the EU for funding Turkey may be discussed".

Mr. Papandreou, commenting on yesterday's EU resolution on Kosovo, said he had a contact with the Yugoslav FM.

He added that everyone was in agreement that resolutions had be adhered to in Kosovo and that pressures on Yugoslavia were continuing to that end.

Athens News Agency

[18] New facilities for 2004 Olympics to begin after the year 2000

Athens 27/10/1998 (ANA)

Mr. Stratigis added that the total cost of new construction for the Games is set at 173 billion drachmas.

He also announced that the initial official meeting of the committee will be held on Thursday at the Zappeion Hall.

Culture Minister Evangelos Venizelos will chair the meeting, which will also be attended by several Eurodeputies, local government officials, World Council of Hellenes Abroad (SAE) delegates, athletes and representatives of business and social organisations.

Both Mr. Stratigis and 2004 managing director Costas Bakouris said that there is a small delay in the preparation work for the Games, probably due to the slow-moving mechanisms of ministries involved.

Mr. Bakouris also noted delays in personnel hiring.

Athens News Agency

[19] Gov't says police's `bad press unwarranted`,ND reiterates call for Romeos' firing

Athens 27/10/1998 (ANA)

"It would be unfair not to give EL.AS credit for its successes, while at the same time not ignoring its mishaps and failures," Mr. Reppas said.

Mr. Reppas was responding to reporters' questions following the arrests of nine police officers implicated in a prostitution racket and in the wake of Friday's fatal shooting by an arresting officer of a Serbian high school pupil.

Rising crime is an international phenomenon and one that was discussed at this weekend's informal EU summit, the spokesman said.

Mr. Reppas said that the increase in economic immigration had to be taken into account in the recent rise in crime in Greece but admitted that the police force was performing well short of expectations.

Meanwhile, main opposition New Democracy called for Public Order Minister George Romeos to tender his resignation, saying the minister was "a failure".

ND spokesman Aris Spiliotopoulos called on the prime minister to undertake an initiative for "constructive dialogue" on ND's proposals, which include modernising training procedures for police, an increase in pay and more police stations.

Prostitution ring : A prosecutor yesterday opened legal proceedings against nine policemen, two obstetricians and a bar owner on prostitution-related char-ges in the city of Pyrgos, in Ileia prefecture, the Peloponnese.

The charges were levelled as the government tabled a bill in Parliament prohibiting prostitutes from working in groups and regulating how many can work in a brothel at one time.

The bar owner was charged with pimping as an investigation revealed that four under-age teens from Romania were working in his bar and that he pimped for them.

Two of the policemen were charged with complicity, while the other seven with dereliction of duty.

The two obstetricians were charged with performing illegal abortions on the women.

Athens News Agency

[20] State to pay expenses of Yugoslav teen's funeral

Athens 27/10/1998 (ANA)

Government spokesman Dimitris Reppas said all the necessary arrangements were being made, including transferring the body of 18-year-old Marko Bulatovic to Belgrade by a Hellenic Air Force transport plane.

The teen's father arrived in the northern Greek port city yesterday to escort his son's body back to the Yugoslav capital. He made no statements to reporters.

Marko Bulatovic had been in Greece with fellow-students for little over a week when he and his fellow students arrived in Thessaloniki.

Eyewitnesses said that the youth and his companions had been standing outside a clothing store on Thessaloniki's main shopping street, Egnatia, when police arrived to arrest them as suspects in a wallet theft.

The eyewitnesses said police attempted to arrest the youths and the youth was shot in the head while trying to free himself.

The police officer involved in the incident, Kyriakos Vantoulis, has been charged with intentional homicide and will provide testimony in his defence today. An inquiry into the incident is currently under way.

Athens News Agency

[21] Roussel lawsuit against Onassis Foundation president Papadimitriou

Athens 27/10/1998 (ANA)

The suit refers to statements made by Mr. Papadimitriou three months ago.

Mr. Roussel, meanwhile, will be in Athens on Friday to stand trial on charges of perjury, false accusations and slander against the president and three members of the Onassis Foundation.

The charges arise from a complaint filed by Mr. Roussel two years ago, accusing the Onassis Foundation board of mismanagement.

A court dismissed the complaint early in the year.

Mr. Roussel and his family will be in Greece again next month, on the private island of Skorpios, to mark the 10th anniversary of the death of Athina's mother, Christina.

The Onassis Foundation will mark the occasion on Nov. 22, with a service at an Athens church.

Athens News Agency

[22] Cidesco conference in Athens

Athens 27/10/1998 (ANA)

Athens News Agency

[23] Later deadline for 'green card' applications

Athens 27/10/1998 (ANA)

Athens News Agency

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