Athens News Agency: Daily News Bulletin in English, 00-04-26

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

CONTENTS

[01] Bank of Greece urges wide economic restructuring

[02] Athens reiterates its standing position over recourse to The Hague

[03] Greek PM calls for accelerated 2004 preparations

[04] Alternate foreign minister says Greece interested in Turkey's European vocation

[05] FM Balkan desk director to represent government at Yugoslav embassy reception

[06] Initial gov't meeting on constitutional revision held

[07] Foreign ministry condemns desecration of Jewish monument, Synagoge

[08] Greek stocks end sharply lower on ASE

[09] Development ministry gets new senior officials

[10] Two Greek carriers sign strategic partnership deal

[11] Ionian Bank to delist due to merger with Alpha

[12] Ergobank joins latest round of rate cuts

[13] Strict market controls over Easter period will keep prices in check

[14] N. Greek exporters set up electronic library

[15] Seven brokerages fined for Korasidis share rise

[16] Car and Moto Accessories and Hi-Fi Show 2000 in Thessaloniki on May 12-14

[17] Government says Denktash trying to torpedo UN talks

[18] Territory the key issue for Cyprus sulution, FM says

[19] Funds for bicommunal projects must have government's consent

[01] Bank of Greece urges wide economic restructuring

Athens, 26/04/2000 (ANA)

Presenting the central bank's annual report, Bank of Greece's governor Lucas Papademos, said that these reforms could contribute in improving the country's competitiveness, boost competition and create new jobs.

Papademos remained concerned over the course of inflation saying that price stability could not be ensured in 2000 only through monetary policy. "It is feasible, however, if the government adheres to its economy and structural policies while the incomes and billing policies help in the creation of price stability conditions," he noted.

The Bank of Greece said there were four categories of structural reforms needed: First, reforms aimed at liberalising domestic markets and reducing state intervention, such as speedier liberalisation in energy, services and telecommunications markets, and completion of privatisations to improve the quality and competitiveness of Greek products and services, a move that would ensure price stability.

Second, reforms aimed at strengthening the state's role in certain sectors and improving their efficiency, such as education, professional training and technological research.

Third, reforming the institutional framework in business environment to promote investments and business activity, such as simplier procedures to set-up new businesses and opening the door to foreing investments in Greek companies.

Fourth, institutional reforms aimed to improve the financial sector's function and in particular financing of small- and medium-sized enterprises, the driving force of economic growth. Reducing labour tax burdens and offering tax incentives could boost employment, particularly among younger people, the central bank said. The report, however, stressed the need for greater flexibility in the labour market and in particular working hours and wages.

The Bank of Greece warned that the inflation rate in country could diverge from the Eurozone's average inflation rate in the short- and long-term, with a negative impact on the economy and employment.

The report also said that prospects of speedier economic growth were not guaranteed by the adoption of the euro currency.

[02] Athens reiterates its standing position over recourse to The Hague

Athens, 26/04/2000 (ANA)

Greek government spokesman Dimitris Reppas also noted that Ankara has assumed commitments--such as following certain dispute-solving procedures--emanating from last December's EU Helsinki summit, while stressing that differences between countries must be solved through peaceful means and without the threat of violence. The spokesman added that Ankara should take recourse to The Hague if it believes a problem exists, adding that ongoing bilateral talks for the implementation of nine recently signed agreements will continue along with Greek-Turkish rapprochement, "which is a decision by the two governments and two peoples."

According to an ANA dispatch on Monday, Turkey's military chief cautioned the previous day that "a positive result can't be achieved if the two sides refer to different things", when asked to comment on the possibility of upcoming Greek-Turkish talks focusing on the Aegean.

Turkish general staff chief Gen. Hussein Kivrikoglu also stated that "the Greek side is only referring to the issue of the (Aegean) continental shelf, while we are referring to four or five problems."

"We've already proposed bilateral meetings on the military level in order to reduce tension in the Aegean, as well as the holding of joint (military) exercises," Kivrikoglu said during a reception at the Turkish national assembly, before adding: "The Greek side said it would answer, but we haven't as yet received its reply."

Athens has long maintained that the only difference separating Greece and Turkey in the Aegean is the issue of the sea's continental shelf, a matter Greek leadership steadfastly believes must be adjudicated by the International Court of Justice at The Hague. The Greek side also counters that the provisions of ecumenically accepted international treaties and agreements nullify demands Turkish leaders have raised over the past 27 years with respect to air space, flight information regions (FIR), territorial waters and uninhabited islets, among others.

On his part, Turkish Foreign Minister Ismail Cem was quoted in a Turkish mass daily earlier in the week as saying that contacts between Athens and Ankara over the Aegean are expected to start in the coming period.

Foreign ministry condemns burning of flags, other symbols: Greece's foreign ministry on Tuesday issued a condemnation of this week's burning of a Turkish flag outside the Turkish embassy here during a protest rally by the Armenian National Committee.

A foreign ministry spokesman said any such acts against national symbols of other countries are "unacceptable".

The group demonstrated outside the Turkish embassy as part of its long-standing demand that Ankara recognise the 1915 genocide of Armenians in western Asia Minor committed by Ottoman forces.

[03] Greek PM calls for accelerated 2004 preparations

Athens, 26/04/2000 (ANA)

Speaking to reporters after the one-hour meeting, "Athens 2004" president Panayiotis Thomopoulos said his talks with the Greek premier covered a wide range of topics regarding the 2004 Olympiad, especially the delays, which he described as "minor".

Stinging criticism by Samaranch last Thursday over organisers' preparations for the 2004 Olympics raised eyebrows in Athens and generated quick responses from local officials.

The powerful IOC chief tersely said that the 2004 summer games would be in "danger" unless Greek organisers made "drastic" changes by the end of the year. However, he later qualified his warning the same day during at a press conference in Lausanne by saying: "I cannot imagine the Games will not be held in Athens... We hope after this warning all things will be in the right way."

Thomopoulos attributed delays in several Olympics-related projects to the recent campaign period in Greece, while saying relevant presidential decrees were ready and could now be forwarded for approval.

In reply to press questions on whether changes needed to be made in the coordination or among top organising committee executives, Thomopoulos said there was no problem with respect to coordination, nor was a change in personnel under consideration. Thomopoulos said he also discussed with Simitis the issue of hotel accommodations during the Games, as well as the all-important media centre.

In related remarks, the government's spokesman echoed Thomopoulos' statements in terms of retaining the current organising committee composition.

Spokesman Dimitris Reppas said the government isn't considering changes to the organising committee's leadership and doesn't foresee the creation of a special "Olympic Games ministry" -- as some press reports claimed the IOC is promoting.

Environmental groups react: Meanwhile, representatives of several environmental advocacy groups squarely pointed at the government and the "Athens 2004" organisation for the delays in preparations, at the same time deflecting what they called attempts to unfairly shift the blame on their shoulders.

Speaking during a joint press conference on Tuesday in Athens, representatives of groups such as WWF Hellas, the Greek Ornithological Society and the Greek Society for the Preservation of Nature, among others, stated that despite problems there is "still enough time for the completion of the Olympic projects".

"Once again, what is ascertained is the continuing absence of any (positive) environmental aspect of the 2004 Olympiad, the lack of democratic dialogue and community participation in the planning of projects, as well as an effort to blame environmental groups and social groups ... for the delays," one representative said.

Environmentalists also accused the 2004 organisers of summarily rejecting their proposals for alternative sites to build Olympic projects.

Culture minister says timetables for 2004 Athens Olympics will be observed: Culture Minister Theodoros Pangalos told sports reporters on Tuesday he is determined to do everything possible to enable timetables set for the 2004 Athens Olympics to be observed, adding that the period of uncertainty is over and developments will take place on all of the Olympiad's fronts immediately after Easter.

Pangalos said there was no expediency in recent statements by International Olympic Committee (IOC) President Juan Antonio Samaranch and expressed optimism that the existing climate will change in a month's time with the suitable actions which will be taken. On the question of the Interministerial Committee, he announced that it will be enlarged with the participation of the Foreign Affairs and Transport ministries.

Regarding the 2004 Olympiad, Development Minister Nikos Christodoulakis held talks with Athens hoteliers on Tuesday for finalised decisions to be taken on both the quantitative and qualitative adequacy of beds.

He said that the finalised agreement between the Athens 2004 company and the Union of Athens Hoteliers on accommodation and prices will be signed soon.

[04] Alternate foreign minister says Greece interested in Turkey's European vocation

Athens, 26/04/2000 (ANA)

Speaking to reporters, Papazoi said Greece is interested in Turkey's European vocation and the implementation of decisions taken at the Helsinki EU summit regarding candidate country status and its partnership relationship with the EU.

She also said that Greece is interested in the implementation of Helsinki's decisions on Cyprus, meaning a smooth accession which will not depend on a solution to the Cyprus issue.

Papazoi said that at the moment Cyprus is at the most advanced stage regarding negotiations (it is ranked among countries belonging to the first wave of EU enlargement) since 15 chapters have already been examined which concern the individual negotiating sectors.

She said that she met with the representative of Cyprus responsible for accession negotiations, former Cyprus President George Vassiliou, on April 20, adding that meetings with him will continue in the future. She also noted that the proposal by Cyprus President Glafcos Clerides for the participation of the Turkish Cypriots in negotiations still holds, but has not been accepted by the other side.

[05] FM Balkan desk director to represent government at Yugoslav embassy reception

Athens, 26/04/2000 (ANA)

Following a decision by Foreign Minister George Papandreou, Spinellis will represent the Greek government at the embassy celebrations, while Greek Ambassador to Belgrade Panagiotis Vlassopoulos will represent the government in Yugoslavia.

The Greek Ambassador to Moscow Dimitris Kypraios was scheduled to attend the reception in the Yugoslav embassy in Russia.

The rest of the European Union member-states declined invitations to the events.

In a telephone conversation with Papandreou, Yugoslav opposition leader Vuk Drascovic requested a meeting in Athens with him.

Papandreou accepted, responding however that this meeting may take place following his visit to the United States and his stay at the Azores, where the European Union Foreign Ministers' Council is scheduled to meet regarding the Union's policy in the Balkans.

Earlier in the day, Athens denied it was interfering in Yugoslavia's domestic affairs, following criticism out of Belgrade that the Greek government organised a recent meeting of Yugoslav opposition figures here.

Government spokesman Dimitris Reppas made the statements in reaction to the summoning of Greece's ambassador to the Yugoslav foreign ministry over the issue.

Reppas said the Greek government maintains contacts with all the primary political elements of Yugoslavia and is concerned with the "smooth operation of democratic institutions in the neighbouring countries."

[06] Initial gov't meeting on constitutional revision held

Athens, 26/04/2000 (ANA)

In terms of the controversial issue of altering the election law in favour of a more proportional system, a long-standing demand of the country's smaller parties, Venizelos later told reporters that any such discussions were "untimely" and "not connected with the this revision".

Kaklamanis, who is authorised to begin talks on constitutional revision with the parties represented in Parliament - ruling PASOK, main opposition New Democracy, the Communist Party of Greece (KKE) and the Coalition of the Left (Synaspismos) - noted that possible revisions will be completed within the 300-member legislature's first session, without however, specifying the exact timetable.

Venizelos, a constitutional law expert and deputy from the Thessaloniki area, reportedly passed out a text of his views to the meeting's other participants, including a report commissioned by the premier focusing on "national provisions" that will be discussed with the opposition.

Other topics discussed included the updating of electoral rolls, absentee voting and election districts, among others.

Finally, government spokesman Dimitris Reppas said Parliament would begin debate on constitutional revision after the Orthodox Easter recess. He also said the government has already initiated contacts with opposition parties over the matter.

[07] Foreign ministry condemns desecration of Jewish monument, Synagoge

Athens, 26/04/2000 (ANA)

"We condemn in the most definite way the desecration of the monument to the victims of the holocaust and the Holy Synagogue of Thessaloniki, apparently committed by 'neo-Nazi' elements, on April 20, coinciding with the Jewish Passover celebration.

"This act of desecration, against the holy sites and symbols of the Jewish community of Greece, blatantly insults the historical memory of Thessaloniki, for the preservation of which the Greek government, in honour to Greek Jews, victims of Nazism, three years ago built a monument to the Holocaust.

"Already, the responsible authorities have began work to expose the culprits and for their exemplary punishment."

[08] Greek stocks end sharply lower on ASE

Athens, 26/04/2000 (ANA)

Smaller capitalisation and construction stocks suffered the heaviest losses with a total of 60 issues ending at the day's 10.0 percent limit down.

The general index ended at 4,224.45 points, off 3.17 percent. The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 2.81 percent lower at 2,404.31 points and the FTSE/ASE 40 index plunged 4.82 percent to 557.03 points.

Sector indices ended as follows: Banks: 8,367.65

-2.41% Leasing: 891.15 -4.87% Insurance: 2,861.21

-1.15% Investment: 1,799.94 -3.26% Construction:

2,076.22 -6.74% Industrials: 2,494.95 -3.36% Miscellaneous: 4,023.09 -4.72% Holding: 4,637.89

-3.58%

The parallel market index for smaller capitalisation stocks ended at 704.11 points, down 7.52 percent.

Broadly, decliners led advancers by 325 to 18 with only one issue unchanged.

Daios Plastics, Hellenic Telecoms, Viohalco and ETBAbank were the most heavily traded stocks.

Leading shares' closing prices (in Drs): National Bank: 22,300 Alpha Credit: 20,740 Commercial Bank: 19,400 Ergobank: 7,225 Eurobank: 10,000 Hellenic Telecoms: 8,290 Panafon: 4,410 Hellenic Petroleum: 3,850 Intracom: 12,950 Minoan Lines: 5,680 Hellenic Bottling: 5,900 Heracles Cement: 8,220 Titan Cement (c): 14,700

Bonds nose up in light trade: Bond prices in the domestic secondary market rose in thin trade on Tuesday with players showing interest across the board.

The Greek benchmark 10-year bond showed a yield of 6.12 percent from 6.13 percent a day earlier and 6.02 percent in the two previous sessions.

The paper's yield spread over German bunds was 78 basis points from 84 basis points in the previous session and 78 basis points for three consecutive sessions before that.

Turnover through the central bank's electronic system totalled 24 billion drachmas from 6.0 billion drachmas a day earlier and 12 billion drachmas for two straight sessions before that.

Of Tuesday's total, buy orders accounted for the whole of turnover.

Drachma drops vs euro, dollar: The drachma on Tuesday fell against the euro and the US dollar in the domestic foreign exchange market.

At the central bank's daily fixing, the euro was set at 335.690 drachmas from 335.600 drachmas a trading day earlier and 335.550 drachmas on Friday.

Also at the fixing, the US dollar was set at 358.120 drachmas from 357.070 drachmas in the previous session and 357.870 drachmas on Friday.

[09] Development ministry gets new senior officials

Athens, 26/04/2000 (ANA)