Athens News Agency: Daily News Bulletin in English, 99-07-10

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

CONTENTS

[01] Simitis: Gov`t will remain firm on policies, elections in Sept. 2000

[02] Greek, Dutch firms acquire Bulgarian telecom

[03] Albania's Milo touches on various issues with Greek leadership

[04] New Commission named by Prodi, Greece`s Diamantopoulou takes employment portfolio

[05] Wide-ranging Fischer talks in Athens next week

[06] Economic News

[07] Athens foreign exchange

[01] Simitis: Gov`t will remain firm on policies, elections in Sept. 2000

Athens, 10/7/1999 (ANA)

Addressing a two-day meeting of the party's central committee, Mr. Simitis said he did not intend to make changes to policies being applied by the government, as demanded by several top party cadres after last month's European Parliament elections, wher e PASOK placed second behind main opposition New Democracy.

Yesterday's session marked the first central committee meeting after the Euroelections, and its main task is to assess election results and decide on a restructuring of the party.

Mr. Simitis said the Euroelection result was a "useful lesson" on "certain aspects of government policy", but added that the government's legitimacy was not put in doubt by the result nor did it portend the results of next year's Parliamentary elections .

He said PASOK would win the general elections if it worked faster and more efficiently, adding that those who believed the ruling party was finished "are fooling themselves, because PASOK learns from its mistakes and the difficulties it faces".

Mr. Simitis said the government's major policy choices have not been questioned by the Euroelection results, adding that those policies had been worked out and approved by two party congresses and by voters in the September 1996 general elections.

Outlining the government's efforts and its future course, the premier said there were certain aspects in the present conjuncture that needed to be taken into account.

First of all, he said, was the situation in the Balkans as, despite the end of hostilities, the situation remained particularly fluid and could prospectively give rise to unforeseeable tensions, instability and regional frictions.

Second, results of the Euroelections throughout the EU had boosted conservative forces, could mark a turnabout in European developments, a deceleration of the process of political unification, increased differences between North and South and encouragin g the function of "directorates and groups of differing speeds".

The third aspect concerned the political and organisational restructuring of PASOK to enable it to win the 2000 elections, Mr. Simitis said, adding that only PASOK could steadfastly lead the country into the 21st century.

"But in order to accomplish this, PASOK must shed its introversion and decisively wage a battle to improve Greeks' everyday life and inform the citizens of the work being accomplished," he said.

Turning to the post-EMU entry period, Mr. Simitis said he was already preparing a programme for the period 2000-2006, which would be released in autumn and which focused on development, social justice and solidarity.

As for the government policy accomplishments to date, Mr. Simitis said Greece was the only EU country that had not reduced its social expenditures but had in fact increased them.

The prime minister also said it was premature to discuss economic policy measures, particularly tax reliefs, although he promised to do so at the Thessaloniki International Fair in September, where the head of government traditionally announces economic policy for the following year.

The premier defended his government's social policy, which he said was a policy of social justice that focused on the working class, namely, labourers, wage-earners, SMEs, farmers, women, pensioners and the younger generations.

Turning to PASOK's restructuring, Mr. Simitis said overtures needed to be made toward the "pioneer forces" in the production, scientific and intellectual communities".

Skandalidis: On his part, PASOK Secretary Costas Skandalidis referred to the situation after the party's poor showing in last month's Euroelections, saying it was reversible through a rallying of the party's cadres, an "ideological and political recovery" and, particu larly, a restructuring of the party on the basis of a specific timetable.

Analysing the causes of the defeat, Mr. Skandalidis noted a contradiction between the government's efforts and its success in steering the country in difficult international circumstances, as he said.

"PASOK, as a political formation, suffers from a large deficit of knowledge and information on the policy and work of the government, a large deficit of self-confidence in our policy, a large deficit of optimism and faith in victory," he noted.

"We have lost a battle but not the war," he added, while expressing satisfaction for what he called the failure of ND to overturn the political scene and balance of power.

He also called for the party's platform to acquire a "set of clear social references", with a tangible turn to the masses, and for "a permanent front of ideological and political juxtaposition" to all opposition parties.

Finally, Mr. Skandalidis said the overall responsibility for the party's restructuring would belong to the central committee and the prime minister.

A common denominator among other members' addresses was a recognition that the electoral result was unfavourable for the party, although there were a variety of views on the extent of the defeat and whether it was reversible.

Former minister Yiannis Kapsis noted that no one had resigned despite the general recognition that the result had been unfavourable. He charged that corruption was rife in public life, while the party would do well to undertake a crusade on this issue.

Deputy Finance Minister Giorgos Drys said PASOK had lost the election because it had not believed in victory. He claimed there was inability of understanding new models of electoral behaviour, persistence in rallying round an electoral base that no long er existed, as well as lack of strategy regarding alliances with other parties.

Opposition: In reaction, main opposition New Democracy (ND) spokesman Aris Spiliotopoulos said "the Greek people provided a clear message with the Euroelections, which Mr. Simitis cannot understandI"

He added that the Greek people "condemned Mr. Simitis' foreign policy, as well as the government for the downgrading of the quality of life in critical sectors.""

Communist Party of Greece (KKE) Secretary General Aleka Papariga said Mr. Simitis "took us many years back to tell us that Greece is not in danger of a policy which feeds profits, but is in danger from the right."

The Coalition of the Left and Progress (Synaspismos) noted that the premier "insists on wanting to be blind, to beautify reality and to congratulate himself, focusing in a dogmatic way on the one-way street of a failed and socially unjust policy".

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas said that "Mr. Simitis did not receive the message the people sent with the Euroelections".

Athens News Agency

[02] Greek, Dutch firms acquire Bulgarian telecom

Athens, 10/7/1999 (ANA)

The two firms will also jointly acquire Bulgaria's second GSM mobile phone licence, plus a 51 percent stake in the country's Mobikom analog mobile operator.

The buyout cost OTE and KPN 510 million US dollars. Another 200 million dollars will be spent over three years on investments to expand existing telecoms networks and develop the GSM network.

Within the consortium, OTE holds a 40 percent stake in the new GSM licence and 60 percent of the land network.

The two firms are holding negotiations with Cable & Wireless, which owns 49 percent of Mobikom, for the purchase of its stake.

BTC has installed 2.7 million phone lines in Bulgaria. The country's existing mobile phone operator has 120,000 customers.

Athens News Agency

[03] Albania's Milo touches on various issues with Greek leadership

Athens, 10/7/1999 (ANA)

Prime Minister Costas Simitis, Greek FM George Papandreou, Alternate FM Yiannos Kranidiotis and other officials all held talks with Mr. Milo.

At the end of discussions, both countries' foreign ministers expressed a wish for further improvement bilateral relations.

On his part, Mr. Papandreou said relations were currently excellent and reminded of Athens' contribution to Tirana's efforts to join European organisations. He also announced the holding of a tripartite meeting, also involving the foreign minister of th e Former Yugoslav Republic of Macedonia (FYROM), at the northwestern border lake district of Prespes, expected to develop into regular six-month contact.

Mr. Papandreou said cooperation between the two countries would include initiatives regarding infrastructure projects in the framework of the Balkan Stability Pact. Discussions, he added, had also touched upon the possibility of Greece mediating at the proposed special EU summit on organised crime in Finland, with a view to providing special funding for Albania.

Economic cooperation would involve Greece's development aid to Albania, natural gas and infrastructure projects.

Referring to the major problem of illegal immigration in Greece, Mr. Papandreou stressed that it should in no way be related to the foreigners legally residing in Greece, to whom the state provided free healthcare and education. He made it clear that Al banians currently being expelled from Greece had not followed the legalisation procedures introduced last year.

Mr. Milo said his country continued to look upon Greece as one of its closest partners in its goal for integration with European organisations, adding that it wished greater trust and understanding on the part of Athens. He also stressed that "if we per sist with the differences, we distance the prospects for cooperation in the region".

Regarding the treatment of Albanian illegals by Greek authorities, Mr. Milo said his conclusion after the Athens talks was that the Greek government had full understanding on the issue.

He added his government was doing its utmost to restore order and improve security in the areas of southern Albania with a large population of ethnic Greeks.

The two foreign ministers adopted a joint communique which reaffirms the significance the two countries attribute to improving infrastructures in southeastern Europe and their mutual interest in promoting the plan for a Dalmatian highway, in which other interested parties would be invited to participate.

Finally, Mr. Papandreou announced that Mr. Simitis will visit Tirana on Aug. 24.

In statements after meeting with Mr. Kranidiotis, Mr. Milo said that Greek- Albanian relations were very important and continually being strengthened.

Both men discussed a wide range of issues, including the Albanian FM's concerns about the treatment meted out to Albanians by the Greek police during recent sweeps on illegal immigrants.

Mr. Milo noted, however, that immigrants working in Greece had to abide by Greek laws and that if these were not respected they "must face the consequences."

Responding to a question, the Albanian foreign minister said the situation was not helping bilateral relations and that the images "touched human sentiment".

Turning to other issues, Mr. Milo said the state of relations between Tirana and Athens could, in the future, be a model for the region, and thanked Greece for its help during the Kosovo crisis.

Mr. Kranidiotis, who had been invited to visit Albania in September, said talks also touched on cooperation between the two countries vis-a-vis the European Union and wider cooperation in the attempt to reconstruct the Balkans and restore peace and econ omic growth.

"Greece believes that Albania must proceed towards the European family and has taken such a position many times in the past," he said.

Kaklamanis: Mr. Milo also met with Parliament President Apostolos Kaklamanis for talks centring on the police checks over non-EU foreigners credentials.

"We spoke in substance on recent matters, which threaten to poison relations between our two countries," Mr. Kaklamanis told reporters after the meeting.

He said he stressed during his talks with the Albanian official the need for cooperation between the two countires on isolating felons.

"We intend to tackle the problem and restore the climate that existed (in Greek-Albanian relations) and which reflects the desire of the two peoples to live peacefully," Mr. Kaklamanis said.

Mr. Milo said that "we spoke openly and honestly and added another stone to the foundations of genuine Greek-Albanian friendship".

He said they jointly ascertained in their talks that "passing phenomena should not have repercussions on the very good Greek-Albanian relations".

Gov't spokesman: Government spokesman Dimitris Reppas said later that those who were legal and respected the laws of the state had nothing to fear and could remain in Greece.

But, he added, those who live here illegally would under no circumstances be allowed to stay. The police sweeps are an aspect of the government's policy in dealing with crime, he said, admitting that the way in which the ID checks were conducted were no t always ideal.

He added that the Albanian FM was not exerting pressure over the issue, but requesting dignified treatment of Albanians being checked.

Athens News Agency

[04] New Commission named by Prodi, Greece`s Diamantopoulou takes employment portfolio

Athens, 10/7/1999 (ANA)

Neil Kinnock from Britain will be vice-president in charge of administrative reorganisation; Spain's Loyola de Palacio is VP in charge of relations with the European Parliament as well as transports and health;Italy's Mario Monti assumes the competition portfolio; Austria's Franz Fischler remains as Commissioner of agriculture and fisheries; Finland's Erkki Liikanen takes over the industry and information society post; the Netherlands' Frits Bolkestein assumes the internal market portfolio; Belgian Phil ippe Busquin acquires the research post; Spain's Pedro Solbes Mira is tapped as the all-important monetary affairs commissioner; Denmark's Poul Nielson takes the development and humanitarian aid portfolio; Germany's Guenter Verheugen assumes the crucial e nlargement post; Briton Christopher Patten assumes the external relations post; France's Pascal Lamy is tapped as commissioner of trade; Irishman David Byrne assumes the consumers and food safety post; France's Michel Barnier takes charge of the regional policy portfolio; Luxembourg's Viviane Reding is appointed commissioner of education and culture; German's Michaele Schreyer takes the budget portfolio; Swede Margot Wallstrom assumes the environment portfolio; Portugal's Antonio Vitorino assumes the just ice and home affairs post, and finally, Greece's Anna Diamantopoulou is appointed as employment and social affairs commissioner.

Mr. Prodi said the Commission will informally meet for the first time on July 16, before the European Parliament holds confirmation hearings in early September. A vote on the new Commission will be held on Sept. 15.

Athens News Agency

[05] Wide-ranging Fischer talks in Athens next week

Athens, 10/7/1999 (ANA)

According to a foreign ministry announcement, Balkan reconstruction, a long- expected Stability Pact, relations between the European Union and Turkey and the latest developments over the Cyprus issue will be discussed.

Athens News Agency

[06] Economic News

The bank yesterday proposed a share swap of 75 of its shares plus 300,000 drachmas for 20 shares in Ergobank.

More details of the offer were not immediately available.

The Bank of Piraeus' original merger proposal to Ergobank's board was in response to a hostile takeover bid for Ergobank by EFG Eurobank.

Greece to get Dr 21.1 bln in EIB loans: The European Investment Bank has allocated 65 million euros (21.1 billion drachmas) in financing for investments in Greece in the industry and transport sectors.

As part of the sum, a major project to build a bypass for Patras will receive long-term loans totalling 15 billion drachmas.

In addition, Ergobank will receive a loan of 6.0 billion drachmas to help fund small- and medium sized enterprises.

Retail, wholesale indices rise: The retail sales index rose 6.2 percent in value in April against the same month of last year, the National Statistics Service said yesterday.

Mainly fuelling the rise were foodstuffs and apparel. The wholesale prices index increased 0.2 percent in May from the previous month to show a 0.1 percent increase against May 1998, NSS said.

The index rose 1.3 percent in the period January-May, sharply down from an increase of 4.3 percent in the corresponding period of last year, it said.

Applications for bankruptcy fall in June: The number of applications for bankruptcy fell to 229 in June from 301 in the same month of last year, a drop of 24 percent, although they remained stable over the six month period to total 1,229 from 1,233 respectively.

Figures released yesterday by Teiresias, the statistics arm of the Hellenic Banks' Union, showed that the number of bankruptcies totalled 44 in June, sharply down from 109 the previous June.

They were also down over the six-month period to total 419 from 500 in the same period of last year.

Bouncing checks rose by 7.25 percent in volume and 8.12 percent in value in June.

Aspis Invest posts H1 profit jump: Aspis Invest yesterday reported a spectacular 309 percent increase in its net profits for the first half of the year to 1.52 billion drachmas compared with the same period of 1998.

Portfolio capital gains totalled 340 million drachmas at the end of June while its adjusted internal share value rose to 1,635 drachmas.

Aspis Invest's portfolio contained 87 percent equity holdings and 13 percent money market funds.

Its 10 biggest investments were in Ergobank, Aspis Pronia, Chipita, Themeliodomi, National Bank of Greece, Titan Cement, Alpha Credit Bank, Panafon and National Insurance.

Stocks end the week lower: Equity prices ended the week with losses remaining under pressure for the fourth consecutive session on the Athens Stock Exchange.

The general index ended 0.48 percent off at 4,225.05 points off the day's lows, reflecting losses in the Banks, Leasing and Insurance sectors which ended 0.72, 1.59 and 1.89 percent lower respectively.

Other sector indices ended as follows: Investment (+0.94 pct), Construction (+0.63 pct), Industrials (-0.67 pct), Miscellaneous (-0.38 pct) and Holding (+0.84 pct).

Turnover was heavy at 203.376 billion drachmas including block trades in Mohlos and National Bank of Greece, with 37,801,555 shares changing hands.

The parallel market index for smaller capitalisation stocks ended 0.55 percent higher while the FTSE/ASE 20 index for heavily traded stocks and blue chips fell 0.56 percent to 2,472.97 points.

Broadly, decliners led advancers by 157 to 130 with another 12 issues unchanged.

Mohlos, National Bank, Ergo Invest were the most heavily traded stocks while Mohlos and National Bank led the day's turnover.

A total of 16 issues ended at the day's 8.0 percent limit up.

National Bank of Greece ended at 20,500 drachmas, Alpha Credit Bank at 20, 400, Ergobank at 39,950, Piraeus Bank at 9,500, Titan Cement at 31,200, Hellenic Petroleum at 2,860, Intracom at 18,800, Minoan Lines at 5,690, Panafon at 8,250 and Hellenic Telec oms at 6,800.

Bond sell-off continues in active trade: Bond prices in the secondary market yesterday ended flat after plunging in the previous session.

Electronic trade totalled 167 billion drachmas from 114 billion drachmas in the previous session and 44.5 billion drachmas on Wednesday. Sell orders accounted for most of yesterday's turnover.

The high level of turnover indicated the presence of foreign institutional investors in the market.

The ten-year bond was trading below par at 99.65 to show a yield of 6.39 percent from 6.55 percent a day earlier. Its coupon was 6.3 percent.

The equivalent German bund's yield was 4.70 percent. The yield spread over German bunds was 167 basis points from 175 basis points in the previous session and 165-169 basis points on Wednesday.

At the central bank's daily fix, the euro edged down against the drachma.

It was set at 325.350 drachmas from 325.550 drachmas in the previous session.

Reuters quoted Deutsche Bank as saying that it expected the central bank to lower its rates slightly in August when price stability improves.

BA management tenure begins at Olympic: State-owned Olympic Airways acquired a new board of directors yesterday, with Briton Rod Lynch appointed as managing director.

Mr. Lynch said the basic aims of the new British Airways-related management team is the creation of a powerful and independent OA, the securing of jobs and high-quality services at competitive prices.

Athens News Agency

[07] Athens foreign exchange

Athens, 10/7/1999 (ANA)

Banknotes Buying Selling
US Dollar 316.775 324.120
Can.Dollar 215.264 220.255
Australian Dlr 210.765 215.652
Pound Sterling 491.695 503.095
Irish Punt 409.804 419.306
Pound Cyprus 560.778 573.779
Pound Malta 738.113 768.868
Turkish pound (100) 0.065 0.068
French franc 49.202 50.343
Swiss franc 200.959 205.619
Belgian franc 8.001 8.186
German Mark 165.018 168.844
Finnish Mark 54.282 55.541
Dutch Guilder 146.456 149.852
Danish Kr. 43.410 44.416
Swedish Kr. 37.031 37.890
Norwegian Kr. 39.779 40.701
Austrian Sh. 23.455 23.999
Italian lira (100) 16.669 17.055
Yen (100) 258.585 264.580
Spanish Peseta 1.939 1.984 Port.
Escudo 1.610 1.647Foreign
Exchange Buying Selling
New York 316.775 324.120
Montreal 215.264 220.255
Sydney 210.765 215.652
London 491.695 503.095
Dublin 409.804 419.306
Nicosia 560.778 573.779
Paris 49.202 50.343
Zurich 200.959 205.619
Brussels 8.001 8.186
Frankfurt 165.018 168.844
Helsinki 54.282 55.541
Amsterdam 146.456 149.852
Copenhagen 43.410 44.416
Stockholm 37.031 37.890
Oslo 39.779 40.701
Vienna 23.455 23.999
Milan 16.669 17.055
Tokyo 258.585 264.580
Madrid 1.939 1.984
Lisbon 1.610 1.647

Athens News Agency

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