Agricultural Bank drops interest rates
NEWS IN DETAIL
New wave of illegal immigrants unlikely, but Athens prepared
The government has taken all the necessary measures to deal with a possible
wave of illegal immigration due to recent developments in Albania and other
neighbouring countries, Macedonia and Thrace Minister Philippos Petsalnikos
said today.
Petsalnikos expressed the view however that such an eventuality was not
likely at the present moment.
The collapse of get-rich-quick pyramid investment schemes has brought
financial ruin to hundreds of thousands of Albanians, increasing the
possibility of an increase in the number of illegal immigrants entering
Greece.
Asked at a press conference in Thessaloniki whether increased measures had
been taken at the border to prevent the entry of illegal immigrants,
Petsalnikos replied:
''The jointly responsible ministries have already planned for such an
eventuality. The measures are constantly at an increased level with joint
police and army patrols, but they have not been intensified.''
The Macedonia and Thrace Ministry is one of the ministries referred to by
Petsalnikos, since it is responsible for a geographical region bordering on
''high-risk'' countries with respect to illegal immigration.
The others are the ministries of public order, of the interior and of
national defence.
Government spokesman Dimitris Reppas confirmed later that no extraordinary
measures had been taken at the country's borders since the government
''does not believe such a problem will manifest itself in an explosive
form''.
Reppas was replying to reporters' questions on the possibility of a wave of
illegal immigrants from Balkan countries entering Greece and reports
broadcast by the BBC that Greece had taken special measures on its
borders.
''The forces stationed along the borders are permanent and adequate to deal
with any problems. However, the government is following developments very
closely,'' the spokesman added.
Greece will broach Balkans unrest at next EU meeting
Greece is the catalyst for the settlement of problems in the Balkans and
will not be a party to the crisis in the region, government spokesman
Dimitris Reppas said today when asked if developments in the Balkans were
worrying the government.
At the next EU General Affairs Council, Reppas said, Greece will propose
the undertaking of initiatives in the region.
''The spirit of the proposal will be for the entire situation to be viewed
in its political dimension. That is, we shall propose the granting of
economic assistance as well as consultations and contacts with the
leaderships of the Balkan countries aimed at consolidating democratic
institutions,'' Reppas said.
Meanwhile, Coalition of the Left and Progress leader Nikos Konstantopoulos
today noted a ''dangerous discrepancy between the fluidity prevailing in
the Balkans and the intense movement concerning our national issues on the
one hand, and the government's passive inertia on the other''.
Konstantopoulos was speaking to reporters after a one-hour meeting with
President Kostis Stephanopoulos which focused on national issues.
The Coalition leader called on the government to undertake ''coordinated
initiatives'' and activate the European Union for the confrontation of
problems in the Balkan countries.
He added that the initiatives presupposed tackling the issue of the Former
Yugoslav Republic of Macedonia (FYROM).
Konstantopoulos said he was planning a tour of the Balkan countries which
would take in Albania, Yugoslavia, FYROM, Bulgaria, Romania and Croatia,
although specific dates had not yet been set.
Investigation into death of Russian underworld figure continues
Investigations into the murder of Russian fugitive Alexander Solonik, found
dead last week near Varibombi north of Athens, are now concentrating on how
he managed to obtain Greek identification papers almost immediately after
escaping from a Russian prison.
Initial police investigations indicate that after arriving in Greece,
Solonik moved into a villa in Thrakomakedones, near Mt. Parnitha. He later
moved to Lagonisi, on the coast south of Athens, where he lived with
another four Russian gang leaders. All five men, according to police
sources, were dealing in arms and drugs as well as supplying women from
eastern European countries to night clubs and brothels in Greece.
Police believe that Solonik was murdered in a house at Lagonisi and his
body then dumped in the field were it was later found. It is believed his
murder was related to a contract to kill a prominent businessman living in
Italy.
Shortly before Solonik's body was found, six Russian police officers had
come here on a tip that he had been murdered, and that information was
contained in a parcel hidden near Athens airport. A box was found
containing a diagram of the location of Solonik's body.
Reppas comments on international pressure
Government spokesman Dimitris Reppas today invoked the European Union
declaration of 15 July last year when asked to comment on the international
pressure being exerted on Athens and Nicosia concerning national issues.
''The declaration may still be utilized today and constitutes the basis of
the policy with which Turkey must fall in line,'' Reppas said.
The EU foreign ministers' declaration of 15 July inter alia called on
Turkey to refrain from using or threatening the use of force and to have
recourse to the International Court at the Hague concerning its territorial
claims against Greece.
The spokesman called on international officials who express interest in
Greek-Turkish relations and the Cyprus problem to ascertain which country's
policy was circumventing international law and international treaties and
''to obstruct the implementation of this policy''.
On what he described as the ''much-vaunted'' initiative expected from the
United States on the Cyprus problem, Reppas said that no initiative had so
far been forthcoming.
Asked whether the failure for such an initiative to be manifested would be
regarded as a negative development, Reppas replied that ''it would be a
negative development if there was a lack of interest on the US side, as too
would be the manifestation of interest which undermined our national
issues''.
Border regions get priority in Northern Greece planning
The Macedonia and Thrace Ministry will concentrate its efforts this year on
speeding up the economic, social and cultural development of Northern
Greece, giving priority to border regions, minister Philippos Petsalnikos
told a press conference today.
At the same time, efforts will be made to broaden inter-Balkan and Black
Sea cooperation, he said, announcing the ministry's planning for 1997.
''In this direction, the upgrading of the ministry's role, with the
operation of the Macedonia-Thrace Special Coordinating Council and the
establishment in Thessaloniki of special secretariats of other ministries,
is a top priority for the leadership of the ministry,'' Petsalnikos
said.
The ministry's planning for the current year includes turning to advantage
the programme for border areas, the development of special programmes of
the Macedonia and Thrace Ministry and the use of new technology for the
implementation of programmes such as distance training of teachers and the
creation of an ''electronic trade zone''.
Other projects are the linking-up of the ministry with the Internet, the
operation of the National Institute for Cartography and Cartographic
Heritage and the preparation of a draft law designed to alleviate the
problems of ethnic Greeks returning from abroad to settle in Greece.
Reviewing the ministry's activities during 1996, Petsalnikos referred in
particular to the implementation of special programmes in Thrace at a cost
of 32 billion drachmas and in western Macedonia totalling 82 billion
drachmas, the setting up of preventive medicine mobile units, the
television coverage of Macedonia-Thrace in cooperation with ET-3 and the
establishment of an Office for Inter-Balkan Cooperation.
100 million for archaeology in Northern Greece
Macedonia and Thrace Minister Philippos Petsalnikos announced today that
the ministry would fund archaeological research in northern Greece to the
tune of 100 million drachmas.
He made the announcement while opening the sessions of the archaeology
meeting ''A decade of Archaeological Work in Macedonia and Thrace'' at
Thessaloniki University, which is being held for the tenth consecutive
year.
Petsalnikos referred to the ''great importance'' attached by the ministry
to the archaeological finds uncovered in excavations, adding that this was
why it had decided to fund the archaeological research of Thessaloniki
University.
The sessions of the meeting will continue until Saturday with speeches and
presentations by Greek and foreign archaeologists concerning excavations
being conducted in Macedonia and Thrace.
Premier calls for social dialogue instead of confrontation
Prime Minister Costas Simitis yesterday called for substantive social
dialogue to meet national goals, before outlining two significant targets
the goverment will pursue, namely, the safeguarding of national security
and the country's equal participation in the European Union.
Speaking in the western Attica district of Ano Liosia last night, Mr.
Simitis said strengthening the country's defence has a high price, which is
imposed by the threats Greece is faced with -- the national defence
ministry will spend four trillion drachmas in armaments over the next 10
years.
"Expenditures are high and they are limiting our other possibilities but
they are necessary at the moment," he said.
Mr. Simitis said European unification is not a compulsory option for the
country.
"Today you only survive when you decide to develop dynamically through
competition. And Greece wants and can achieve the target of development; it
wants and can have a presence on the international scene; it wants and can
achieve prosperity and social justice. This is our plan for the Greece of
today and tomorrow," he said.
Mr. Simitis said that Greece is the only EU country where instead of social
expenditures being curbed, and instead of salaries and incomes being pinned
down, a balance has been achieved between fiscal discipline and the
safeguarding of working people 's income in real terms.
Cyprus to encourage Greek investors
Greek businessmen investing in Cyprus or involved in joint enterprises will
get favourable treatment under new policies for foreign investors approved
recently by the Cypriot government.
The new policies are part of efforts to harmonise the Cypriot economy with
European states and to lure foreign investment to the island-republic.
Many previous restrictions on foreign capital and the activity of foreign
investors have been abolished under the new guidelines and specific
definitions on where foreign investment is limited, for reasons of national
security or social benefit, have be en drafted.
An official document issued by the Cyprus central bank said that Greek
businessmen would be dealt with under different terms to encourage joint
enterprises with Cypriot firms.
The establishment of banks, insurance firms, airline companies and
publishing concerns will be examined on a case-by-case basis.
Agricultural Bank drops interest rates
The Agricultural Bank today announced a cut in interest rates on deposits
in view of the new conditions in the market resulting from the latest drop
in inflation.
The bank's governor, Christos Papathanasiou, said that the new rates,
effective as of tomorrow, would range between 0.25 per cent and 0.75 per
cent.
Specifically, the basic interest rate for a regular savings account will be
10 per cent for sums up to 3 million drachmas and 10.25 per cent for
amounts over 3 million drachmas.
The higher interest ''Dimitra'' account will have an interest rate of
between 10.75 per cent and 11.25 per cent, depending on the amount
deposited.
Similarly, the ''Athina'' account for students will have a rate of between
10 per cent and 10.75 per cent and the ''Estia'' current account a rate of
8.50 per cent to 10.50 per cent, again according to the amount of
savings.
WEATHER
Fair weather is forecast for most parts of Greece today, except for some
local clouds in the west and north. Frost and local fog early in the
morning in mainland Greece. Winds will be northwesterly, weak to moderate.
Athens will be sunny with temperatures between 5-17C. Thessaloniki also
sunny with temperatures from 1-15C.
FOREIGN EXCHANGE
Closing rates - buying US dlr. 258.962
Pound sterling 424.080 Cyprus pd 519.808
French franc 45.969 Swiss franc 181.189
German mark 155.114 Italian lira (100) 15.802
Yen (100) 210.106 Canadian dlr. 191.297
Australian dlr. 197.190 Irish Punt 414.259
Belgian franc 7.519 Finnish mark 52.427
Dutch guilder 138.176 Danish kr. 40.708
Swedish kr. 34.994 Norwegian kr. 39.085
Austrian sch. 22.052 Spanish peseta 1.833
Portuguese escudo 1.543
(M.P.)