Athens News Agency: Daily News Bulletin in English, 00-08-04

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

CONTENTS

[01] Greece unveils measures to modernize Athens Stock Exchange

[02] Greece urges Turkey to move in line with int'l law and order

[03] Tsohatzopoulos sees shift in balance of power between Greece and Turkey

[04] 2004 Olympic Games memorandum of cooperation signed

[05] Greek official visits northern Ethiopia to assess humanitarian aid needs

[06] Outgoing U.S. Ambassador pays farewell call on Ecumenical Patriarch

[07] Development ministry announces changes in fuel pricing

[08] Bank of Piraeus reports 30 percent rise in pre-tax profits

[09] Health ministry excludes group of Albanian patients undergoing dialysis from circular

[10] No common ground reached so far at UN-led proximity talks in Geneva

[11] Foreign envoys busy talking to both sides in support of the UN effort

[01] Greece unveils measures to modernize Athens Stock Exchange

Athens, 04/08/2000 (ANA)

The introduction of margin account loans is the highlight of the new bill, analysts said, as it legalizes margin buying on conditions.

This measure is expected to boost liquidity in the stock market by offering investors the opportunity to buy shares on collateral from the shares they already own. Investors can buy shares - up to 50 percent of their initial portfolio - with loans signed with their securities firm

Analysts said the new measure would be used particularly, by institutional investors with strong portfolios in blue chip stocks. Securities firms' loans would depend on the credibility of their clients, with those who have already invested in stocks included in the FTSE/ASE 20 and FTSE/ASE 40 indices having an advantage.

Market analysts said the measure could lead to a capital inflow of 200-250 billion drachmas into the market.

Under the bill, securities firms can buy on margin stocks equal to their equity capital in value. If the value of an investor's portfolio falls below 50 percent, investors are obliged to cover their open positions in cash or a securities firm close this position by selling all shares bought on margin.

The new bill also establishes the institution of market makers in the Greek bourse. A market maker - a bank or a securities firm - could intervene in the market to limit volatility of a share price to protect a company from speculative games.

The bill also envisages the listing of securities firms in the Athens bourse, paving the way for a consolidation of the sector and the transformation of many brokerage firms into investment banks.

The draft bill also envisages the listing of maritime companies in the market.

The new bill paves the way for merchant shipping firms to seek listing on the Athens bourse, a move it is hoped will boost a key sector of the economy.

The companies will not be listed directly, but through shipping investment firms with SA status set up for the purpose with a share capital of at least 10 billion drachmas.

The size of vessels must be over 5,000 gross registered tones.

ASE's new president urges need for new strategy for the market: Panagiotis Alexakis, the Athens Stock Exchange designated president, said the Greek bourse urgently needed a new strategy to promote a secure market with dynamic development and fully in line with other European markets.

Speaking to reporters on Thursday, Alexakis - who takes over as head of the ASE following the resignation of Spyros Kouniakis the previous week - said the Greek bourse needed to prepare itself ahead of its upgrade to a developed market by Morgan Stanley Capital International, with a marketing campaign to inform foreign investors of the opportunities offered by the Greek capital markets.

He also urged for a better training and information of domestic investors and announced the creation of a department offering support and constant and reliable information to the public.

Alexakis said its immediate plans included the promotion and development of a New Stock Exchange and new market indices. He also said the Greek bourse would pursue partnerships to attract members and investors through electronic networks and international partnerships.

He stressed the need for increased liquidity in the market, a precondition for the smooth operation of the market and useful to all listed enterprises, investors and the national economy.

[02] Greece urges Turkey to move in line with int'l law and order

Athens on Thursday snapped back to critical Turkish comments of Greece's policy towards minorities with a call for Ankara's compliance with international law and order.

"Turkey must come to terms with the idea that it isn't alone in this world. It's time that it adapted to international legality as well as respect for the rules of law and international treaties that define borders, relations and behaviors," government spokes-man Dimitris Reppas said in Athens.

"The obvious democratic deficit in that country (Turkey) will not be filled with words lacking substance, but with courageous decisions and reforms that it is unable, as all would indicate, to implement thus far," the Greek spokesman stressed.

On Wednesday, the Greek foreign ministry said Turkey's record in the protection of minority rights was unenviable and justified concern among European Union member-states.

"A historical account of the policies towards minorities in Greece and Turkey is overwhelming against Turkey, and this cannot be disputed by anyone who looks at the fate of the Greek minority in the neighboring country," said Greek foreign ministry spokesman Panagiotis Beglitis in response to statements in an article by Turkish Foreign Minister Ismail Cem in the Italian newspaper La Stampa, regarding Greece's policy towards minorities and Cyprus.

"The living conditions of the Moslem minority in (Greece's north-western province of) Thrace today belie Turkish claims of its repression ... Greece, as the other member-states of the European Union, have every reason to express concern regarding the serious democratic deficit in Turkish policy towards all minorities living in the country," Beglitis added.

Regarding Cyprus, he said Turkey's insistence on a deadlocked approach contrasted with international interest and the dynamics now developing for a solution in the framework of the United Nations.

Earlier this week, Turkish Foreign Minister Ismail Cem was quoted in another press interview as saying that "Turkey is ready to discuss all matters which concern the Aegean, within the framework of the United Nations."

In an interview published by the English-language newspaper "Turkish Daily News" on July 31, he added that adding that "regarding the conclusions of the EU Summit in Helsinki, Turkey draws attention of the EU that all matters should be referred to the International Court, without prior selection."

Cem's statements were quickly followed up by a Turkish foreign ministry spokesman's remarks that Turkey has not changed its views on the Aegean issue.

In other comments on Thursday, Reppas described Turkey's policy vis-a-vis minorities over the past decades as "tragic" when compared to Greece, saying such a policy also makes Ankara the target of international criticism.

"It's stance regarding the Cyprus issue is simply in contrivance with the United Nations... Turkey is responsible for Attila (the Turkish invasion of the island republic in 1974). It is responsible for the last 'wall of shame' (Nicosia) in Europe," he said.

ND charges government with lack of credibility: The main opposition New Democracy party said on Thursday a call by the Greek government to Turkey to move in line with international law and order exposed its experimentations and lack of credibility.

"It casts direct doubt on the experimentations of the foreign ministry and confirms the deadlock into which foreign policy has been dragged into due to Turkey's intransigence. It raises a most serious issue of credibility and responsibility for the government," said party spokesman Aris Spiliotopoulos.

Earlier in the day, government spokesman Dimitris Reppas said that it was time Turkey adapted to international legality instead of merely repeating past claims and posturing.

His comment came in response to recent press statements by Turkish Foreign Minister Ismail Cem, casting doubt on Greece's record in the treatment of the Moslem minority, and calling for "all-out dialogue" on outstanding issues with Athens.

Spiliotopoulos called for a conference of political party leader under the President of the Republic and the immediate setting up of a National Foreign Policy Council.

[03] Tsohatzopoulos sees shift in balance of power between Greece and Turkey

The traditional balance of military power between Greece and Turkey will shift within this year, National Defense Minister Akis Tsohatzopoulos predicted in Larissa on Thursday.

Tsohatzopoulos paid a visit to the Tactical Air Force and Army Headquarters and to NATO's Headquarters based in Tyrnavos.

In statements to the press, Tsohatzopoulos said that the signing for the new Mirage fighter planes at the end of August, as well as the delivery of Eurofighter planes in October, set the basis for a shift in the balance of power between Greece and its neighbor, and that the difference would henceforth be determined by the utilization of manpower and its training.

Speaking earlier to Tactical Air Force and Army staff members, Tsohatzopoulos referred to the recent decision taken by the Government Council on Foreign Affairs and Defense (KYSEA) which approved the country's new five-year military equipment program totalling four trillion drachmas, as well as the reshaping of national strategy in the sector of Security and Defense.

[04] 2004 Olympic Games memorandum of cooperation signed

A memorandum of cooperation was signed on Thursday between the "Athens 2004" Olympic Games Organizing Committee and the General Sports Secretariat regarding projects for the Olympic Games of 2004.

The memorandum, signed by "Athens 2004" Olympic Games Organizing Committee president Yianna Angelopoulou and Deputy Minister of Sport George Floridis, defines the competencies of both sides.

The General Sports Secretariat undertakes the study and construction of the projects, and the "Athens 2004" Olympic Games Organizing Committee the supervision for the timetables and the Olympic specifications.

The Town Planning, Environment and Public Works Ministry and the "Athens 2004" Olympic Games Organizing Committee also signed protocols for five Olympic projects, which the Ministry has undertaken to construct.

[05] Greek official visits northern Ethiopia to assess humanitarian aid needs

ADDIS ABABA, 04/08/2000 (ANA-AFP)

Rondos, special adviser to the minister and head of the foreign ministry's Directorate for International Development and Cooperation, visited a number of cities between Sunday and Tuesday "to assess the situation of the refugees and to ascertain on the spot the needs for the granting of humanitarian aid by the Greek government," with a view to confronting the crisis in the region, a Greek diplomat told AFP.

The Greek official, who arrived in the Ethiopian capital on Saturday morning and departed on Wednesday night, will submit a report to Foreign Minister George Papandreou with proposals on the nature and quantity of aid which the Greek government will offer, the Greek diplomat said.

Rondos discussed with the Addis Ababa authorities the prospects for long-term bilateral cooperation in the sectors of culture and agriculture.

[06] Outgoing U.S. Ambassador pays farewell call on Ecumenical Patriarch

ISTANBUL, 04/08/2000 (ANA - A. Kourkoulas)

During their discussion, Parris reiterated the U.S. government's support to the Ecumenical Patriarchate and Patriarch Vartholomeos, sources at the Phanar said.

US envoy presents donation to Greek Red Cross Athens, 04/08/2000

US ambassador to Athens Nicholas Burns on Friday presented the Greek Red Cross with a check totaling $25,000 as a donation for relief efforts towards fire-stricken residents throughout the country.

The US envoy handed the donation to Greek Red Cross president Andreas Martinis, before a scheduled meeting.

Numerous wildfires, with the worst erupting on the eastern Aegean island of Samos, scorched hundreds of hectares of forestland, crops as well as homes in Greece's provinces last month.

[07] Development ministry announces changes in fuel pricing

Development Minister Nikos Christodoulakis on Thursday announced changes in the fuel pricing system from September 1, 2000.

Under the new system, refinery and indicative prices will be set on a daily basis and not on a weekly basis.

"Our aim is to improve competitiveness and efficiency in the domestic oil market and establish a more flexible system of setting prices," Christodoulakis told reporters.

In practical terms, the ministry wants to see that lower world oil prices are reflected in lower prices to consumers.

Development Deputy Minister Milena Apostolaki presented the results of a survey conducted last month in the domestic oil market.

The survey revealed that a majority of petrol stations in the Attica region were offering lower fuel prices to consumers, although a significant rate did not follow the rules.

From a total of 116 petrol stations surveyed in July, seven had lowered their prices on unleaded gasoline more than 28.1 drachmas, 85 stations by 20-28.1 drachmas, 21 stations by 16-20 drachmas and three by 0-10 drachmas. Prices varied up to 35.2 drachmas in the rest of Greece. The official price of unleaded gasoline fell 28.1 drachmas in July.

Christodoulakis said the ministry would intensify inspections to combat oil smuggling, would consider the installation of cash machines in petrol stations and promote new legislation covering safety fuel reserves in harmonization with EU laws.

Greek stocks end sharply lower Athens, 04/08/2000

Equity prices ended sharply lower on Thursday hit by a wave of selling by foreign investors on the Athens Stock Exchange.

Blue chip stocks were particularly hit pushing the general index near the 3,900 support level.

The index ended at 3,918.37 points, off 1.59 percent, with turnover at 110 billion drachmas inflated by block trades in Hellenic Technodomiki and General Warehouses as part of a partnership deal between National Bank of Greece and the construction company.

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended at 2,175.99 points, down 1.90 percent, and the FTSE/ASE 40 index fell 1.30 percent to 550.23 points.

Sector indices ended as follows: Banks: 7,353.96 -2.01% Leasing: 750.18 -1.71% Insurance: 2,445.61 -0.10% Investment: 1,578.25 -2.11% Construction: 2,151.49 -2.19% Industrials: 2,477.96 -1.05% Miscellaneous: 3,882.68 -1.49% Holding: 4,240.17 -0.14%

The parallel market index for smaller capitalization stocks ended 2.06 percent lower at 776.89 points.

Broadly, decliners led advancers by 261 to 72 with another nine issues unchanged.

National Real Estate, Hellenic Technodomiki, Sex Form, Hellenic Telecoms, Douros and Alpha Bank were the most heavily traded stocks.

Leading shares' closing prices (in Drs): National Bank: 13,860 Titan Cement (c): 13,500 Alpha Bank: 13,020 Hellenic Telecoms: 7,960 Commercial Bank: 15,760 Panafon: 4,095 Hellenic Petroleum: 3,710 Eurobank: 9,350 Attica Enterprises: 3,655 Intracom: 12,400 Lambrakis Press: 9,750 Minoan Lines: 3,560 Heracles Cement: 7,810 Hellenic Bottling: 5,320

Equity futures end down, tracking bourse: Equity futures traded on the Athens Derivatives Exchange finished lower on Thursday, in line with the indices on which they are based.

The FTSE/ASE 20 index closed 1.90 percent down, and the FTSE/ASE 40 ended 1.30 percent lower.

Turnover was 9.6 billion drachmas from 6.9 billion drachmas a day earlier.

A total of 1,363 contracts were traded on the FTSE/ASE 20 with turnover at 6.04 billion drachmas.

On the FTSE/ASE 40 index, 1,579 contracts changed hands on turnover of 3.56 billion drachmas.

Bonds drop in moderate trade: Bond prices in the domestic secondary market on Thursday finished lower in moderate, sell-oriented trade.

The Greek benchmark 10-year bond showed a yield of 6.037 percent from 6.03 percent in the previous session.

The Greek paper's yield spread over German bunds was 85 basis points for the third session.

Turnover through the central bank's electronic system totalled 75 billion drachmas from 42 billion drachmas for two straight sessions.

Sell orders accounted for 61 billion drachmas of turnover.

Drachma up vs. euro, down vs. dollar: The drachma on Thursday ended higher against the euro and lower versus the US dollar in the domestic foreign exchange market.

At the central bank's daily fixing, the euro was set at 337.110 drachmas from 337.220 drachmas in the previous session.

Also at the fix, the dollar was 372.100 drachmas from 368.450 drachmas a day earlier.

Kathimerini shows 21 pct rise in H1 pre-tax profit Athens, 04/08/2000

Kathimerini SA, an Athens daily newspaper, on Thursday reported a rise in first-half earnings before tax to 1.437 billion drachmas against 1.188 billion drachmas in the same period of 1999, up 21 percent.

Turnover in the first half rose by 6.8 percent to 6.56 billion drachmas from 5.14 billion drachmas a year earlier, the company said in a statement.

On a consolidated basis, turnover was 7.6 billion drachmas and pre-tax profits 1.5 billion drachmas.

Antenna TV shows Q2 rise in revenue Athens, 04/08/2000

Antenna TV said on Thursday that its revenue rose to 16.016 billion drachmas in the second quarter of the year from 111.572 billion drachmas in the same period of 1999, up 38.4 percent.

Revenue from advertising in the same period of 2000 totalled 12.830 billion drachmas, up 18.4 percent from 10.833 billion drachmas a year earlier.

Pre-tax revenue was 4.933 billion drachmas against 3.987 billion drachmas in the second quarter of 1999, up 23.7 percent.

[08] Bank of Piraeus reports 30 percent rise in pre-tax profits

Bank of Piraeus on Thursday announced that its group pre-tax profits rose 30 percent to 57 billion drachmas in the first half of 2000, while the bank's profits totalled 37 billion drachmas from 16 bln last year, for an increase of 130 percent.

Profits were higher compared with total profits of the three banks forming the group (Bank of Piraeus, Xiosbank, Macedonia-Thrace Bank), of 29 billion drachmas in the corresponding period in 1999.

The legal and operating merger of the three banks under the name Bank of Piraeus was completed in mid-June.

The bank's network totals 170 branches and has an 8.0 percent share in the domestic banking market.

The Bank of Piraeus aims to expand its network to 190 branches by the end of the year.

[09] Health ministry excludes group of Albanian patients undergoing dialysis from circular

A group of Albanian kidney sufferers provided with regular dialysis treatments at a Ioannina hospital in NW Greece are excluded from a recent circular issued by the health ministry as part of efforts to curb the illegal transfer and care of foreigners at Greek state hospitals, the government announced.

Greece's health ministry said the agreement was reached after consultations with officials at Albania's corresponding ministry.

The health ministry issued the circular last month following allegations by Health Minister Alekos Papadopoulos that rings operating within state hospitals illegally "import" and subsequently charge foreign patients -- mostly from neighboring Balkan states -- for treatment and procedures provided at no cost by Greek public heath care facilities. Papadopoulos estimated the losses for the state at tens of billions of drachmas.

The announcement preceded claims by Albanian opposition leader and former president Sali Berisha that 30 Albanian kidney sufferers were not undergoing kidney dialysis in the Greek city because religious discrimination.

Before embarking in politics, Berisha served as the personal physician to the late Albanian dictator Enver Hoxha.

[10] No common ground reached so far at UN-led proximity talks in Geneva

GENEVA, 04/08/2000 (CNA/ANA)

President Clerides said after the meeting that his last meeting with de Soto, before returning to the island on Saturday, August 5, would be held Friday morning.

The UN adviser held a meeting with Turkish Cypriot leader Rauf Denktash later in the day.

Denktash has claimed he is discussing seven core issues with the UN on the basis of a document he has conveyed to the UN, whereas the international organization had set out four core issues for the talks it is conducting with the Greek and Turkish Cypriot sides. Speaking after his meeting with de Soto, Denktash also said there has been no progress so far at this phase of the third round of peace talks.

Asked if the discussions are on the basis of the 30-page document he submitted to the UN at the start of the talks last week, he said "of course, we are discussing everything on the basis of my document, what else can I discuss?" Invited to say if the talks are on the four core issues (constitution, territory, security and refugees-property), Denktash said there are "seven core issues" and discussion covers all of them.

The Turkish Cypriot leader refused to list the three issues, outside the chapters the UN had identified, when prompted to do so by the press.

"You know them," he told journalists.

Commenting on remarks by one of his advisers who said no common ground has been reached so far, Denktash replied, "if Mr. Soysal said so, it is true."

Denktash is due to see de Soto at noon on Friday.

Cyprus has been divided since 1974 when Turkey invaded and occupied the northern third of the island.

Two rounds of UN-led proximity talks, separate meetings of the UN with President Clerides and Turkish Cypriot leader Rauf Denktash, have already been held since December. The third round ends on Friday in Geneva. A fourth round is scheduled to start September 12 in the US.

[11] Foreign envoys busy talking to both sides in support of the UN effort

GENEVA, 04/08/2000 (CNA/ANA)

On Thursday, Foreign Minister Ioannis Kasoulides met with Sweden's special envoy for Cyprus Kaj Falkman and later on had a working lunch with Britain's representative Sir David Hannay and British High Commissioner to Cyprus Edward Clay.

The Republic's Attorney General Alecos Markides also had a working lunch with Swiss constitutional expert and assistant to the UN chief's Special Adviser on Cyprus, Alvaro de Soto, Didier Psirter.

Earlier on Friday, the representatives of Greece to the talks met with the US envoys in Geneva to follow and monitor developments. Greece's Ambassador in Nicosia Kyriakos Rodousakis, his successor Christos Panagopoulos and Rodousakis' predecessor Alexandros Sandis are all in Geneva for the talks.

Meanwhile, it appears that de Soto is set to present the two sides with some thoughts/ideas to work on until the next round of talks, due in September in New York.

De Soto seems to be focusing his discussions on specific aspects of the four core issues, as defined by the UN (constitution, territory, security and refugees-property).

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