Athens News Agency: News in English (AM), 97-11-08

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

NEWS IN ENGLISH

Athens, Greece, 08/11/1997 (ANA)

MAIN HEADLINES

• Parliament approves 'Kapodistrias' local gov't bill
• Greek navy discreetly monitors activities of Turkish vessel
• Greece to react to Turkish attempts to build nuclear power plant
• Greek-Romanian business conference winds up in Thessaloniki
• Romeos reveals new stiffer penalties for drunk driving
• Remains of ancient shipwreck discovered
• Greek firms interested in Serbian state sell-off
• Greek cables company eyes eastern Europe
• Athens bourse shows signs of stabilisation
• Finance ministry to launch 100 billion drachma Eurobond issue
• Olympic Airways to spend 800 million dollars on fleet modernisation
• Greek defence ministry signs 3.9 billion drahcma supply contract
• Goldair sets up company in Skopje
• Gov't says committed to strong drachma
• Greek participation at Int'l furniture exhibition
• Weather
• Foreign exchange

NEWS IN DETAIL

Parliament yesterday approved the bill for extensive mergers of the country's multitude of municipalities and communities, entitled 'Kapodistrias', by 159 votes in favour (PASOK and Coalition of the Left) and 120 against (New Democracy, Communist Party and Democratic Social Movement).

Yesterday's session was marked by the walk-out of main opposition New Democracy party deputies, and charges by their leader, Costas Karamanlis, that the government had put up "a show of authoritarianism, arrogance and gagging of parliament".

Interior Minister Alekos Papadopoulos described as "expected and natural" the walk-out, charging that "the main opposition did not have any arguments and escaped not from parliament, but from reality".

Announcing the decision for the walk-out, Mr. Karamanlis said that his party would abolish "this product of compulsion and perversion when it comes to power".

Greek navy discreetly monitors activities of Turkish vessel

A Turkish navy surveying ship has been sailing in international waters in the northern Aegean since Thursday afternoon, according to reports.

The "Kouboulkou" belongs to the Turkish military's surveying service and is accompanied by a Turkish patrol boat.

The Greek navy's destroyer "Themistocles" is keeping a close watch on the Turkish vessel's activities, as it sails between the Athos peninsula, Thassos and Limnos. To date, there have been no incidents, but reports added that the foreign ministry was be ing kept informed.

Government spokesman Dimitris Reppas later said there was nothing untoward about the Turkish vessel's course in international waters and that the Greek navy was discreetly monitoring its activities.

Greece to react to Turkish attempts to build nuclear power plant

The government has no information on whether Canada plans to provide equipment and capital for the construction of a nuclear power plant in Turkey, spokesman Dimitris Reppas said yesterday.

He said Greece was opposed to the use of nuclear power, and would react by all legal means it possesses if the construction of such a plant is attempted in the neighbouring country.

Mr. Reppas also denied an allegation by Communist Party Secretary General Aleka Papariga yesterday in Parliament that there are still nuclear weapons in Greece.

Greek-Romanian business conference winds up in Thessaloniki

Prospects for Greek investments being made in Romania are auspicious, according to addresses made at the Greek-Romanian Business Conference which came to a close in Thessaloniki last night.

The two-day conference was organised by the Panhellenic Confederation of Greek Agricultural Cooperatives (PASEGES) and the Greek-Romanian Business Federation (EPES) and was aimed at bringing Greek cooperative organisations and businesses into contact wi th Romanian importers and exporters.

EPES President Nikos Papadakis pointed out that "if the Greek businesses have longterm investment prospects and longterm investment plans then they will find themselves before considerable opportunities for such activities in Romania."

Romanian Agriculture Undersecretary Mr. Kovac invited both cooperative organisations and businesses to Bucharest for the transfer of knowhow to Romania, as well as the Greek Agriculture Ministry for an exchange of experiences.

Romeos reveals new stiffer penalties for drunk driving

Stiffer fines for drunken driving, including suspension of drivers' licences and imprisonment, are being introduced in a draft amendment to the Traffic Code unveiled by Public Order Minister George Romeos.

The penalties also include points on drivers' licences under the point system.

Drivers driving after their licence has been suspended will face heavy fines, ranging from 500,000 dr. to millions of drachma and imprisonment from six months to two years. Under the proposed amendment, drivers found in excess of the legal alcohol c ontent of 0.5 milligrams per litre of blood and up to 0.8 mg will be fined 50,000 dr. and receive three penalty points, and their vehicle will be withdrawn from circulation until the driver becomes sober or is driven by someone else.

Alcohol content of 0.81-1.0 mg. carries a fine of 200,000 dr., on-the-spot removal of licence plate, driver's licence and the car's circulation permit and their revocation for three months, five penalty points, and immobilisation of the car until the dr iver becomes sober.

Alcohol content above 1.0 also carries a fine of 200,000 dr., on-the-spot removal of licence plate, driver's licence and car circulation permit for six months. In the event of a repeat offence above 1.0 mg. content, a 400, 000 dr. fine is imposed with 12 -month revocation of plates, licence and permit, and six months imprisonment.

A second repeat carries a fine of 600,000 dr., and eight months imprisonment and permanent revocation of the driver's licence by judicial decision, while the offender will not be able to get a new driver's licence.

In the event the driver in any of the above instances is not the owner of the car, then both driver and owner face the same penalties.

Remains of ancient shipwreck discovered

Officials from the Culture Ministry's Marine Antiquities Service have discovered the remains of an ancient shipwreck in the sea region close to Leipsoi islands in the Dodecanese.

"Urns found are innumerable and their type has not been found to date. Their neck is wide, has the shape of a bell and has double handles," said Dimitris Kazianis, chief of the Marine Antiquities Department.

The urns were full of wine and were carried from Cilesia to the southern coast of Asia Minor and Cyprus.

Greek firms interested in Serbian state sell-off

Greek firms have expressed interest in a number of 75 strategically important state firms to be denationalised by the Serbian government, according to reports. Greek firm Mytilineos has reportedly shown interest in the Trepcamines in Kosovo, while Titan is reportedly interested in the sale of cement industries.

Greek cables company eyes eastern Europe

The Ellinika Kalodia company is expecting an increase in its turnover in the current fiscal year to 25.150 million drachmas, offers to 2.050 million and dividends to 150 drachmas per share.

The cables company aims at expanding its activities to markets in eastern Europe, where it is also making exports through its subsidiary Tilekalodia which has secured orders from Hungary.

In 1996 it made investments totalling 900 million drachmas, its turnover amounted to 22.9 billion, a 10 per cent decrease, despite the fact the volume of sales increased by 2 per cent, while the net unified profits remained at the same levels and totall ed 1.39 billion from 1.33 billion in 1995.

Athens bourse shows signs of stabilisation

Greek equities stabilised during the last trading session of the week on the Athens Stock Exchange with the market drawing breath after a sharp three-day drop in prices.

The general index closed 0.06 percent lower at 1,512.77 points, to a net gain of 1.63 percent in the week.

Sector indices ending mixed. Banks fell 0.82 percent, Insurance rose 2.55 percent, Leasing jumped 4.57 percent, Investment dropped 2.07 percent, Construction ended 0.95 percent higher, Industrials rose 0.39 percent, Miscellaneous increased 1.55 percent and Holding was 0.82 percent up.

The parallel market index for small cap companies jumped 2.36 percent.

Trading was heavy with turnover at 21.2 billion drachmas. Broadly, advancers led decliners by 130 to 86 with another 17 issues unchanged.

Levenderis, Kekrops and Remek scored the biggest percentage gains at the upper limit of 8.0 percent, while Nematemboriki, Vis, Chalyps Cement and Balkan Export suffered the heaviest losses at the down limit.

National Bank of Greece ended at 28,200 drachmas, Ergobank at 16,000, Alpha Credit Bank at 17,900, Delta Dairy at 3,750, Titan Cement at 13,680, Intracom at 12,810 and Hellenic Telecommunications Organisation at 5, 745.

Finance ministry to launch 100 billion drachma Eurobond issue

The finance ministry will issue a new series of one and three-year eurobonds with a fixed interest on Monday.

The ministry also announced yesterday that it would hold an auction of one- year interest bearing bonds totalling 100 billion drachmas.

The move, in coordination with the Bank of Greece, is seen as a signal to markets that the government will remain firm on its foreign exchange policy.

The government's decision to issue a new eurobond issue significantly improved sentiment in the domestic money market leading to a firmer drachma and lower interbank rates.

Bankers said the eurobond issue was a strategic move by the government in order to improve the climate in the domestic markets and also to reiterate its determination to implement a hard-drachma policy.

The eurobond issues will be offered with interest rates at 4.6 percent and 5.2 percent for one and three years respectively, rates lower than drachma- denominated issues.

The Bank of Greece reported inflows of 80 million Ecus and 40 million DMark, while interbank rates fell below 11 percent but remained volatile.

Olympic Airways to spend 800 million dollars on fleet modernisation

Olympic Airways, the national carrier, said yesterday it would spend 800 million dollars up to the year 2005 to buy 10 Airbus A340-300 and 15 Boeing 737-800 aircraft, as part of the drive to modernise its fleet.

Managing director Iordanis Karatzas said that the board of directors has decided to purchase two Airbus A340-300 aircraft in 1998, another two in 1999 and lease a fifth, also in 1999.

Olympic will replace two Boeing 727s, which would be sold to Macedonian Airlines.

During the same period, the Greek carrier will purchase four Boeing 737- 800s. Another four will be supplied by 2000. The company will lease 10 modern airplanes in order to meet increased flight demands until the purchase of its new fleet.

Mr. Karatzas said that the restructuring programme, which started in 1994, is proceeding successfully and that the company had showed increased profitability.

1995 profits were 9.9 billion drachmas, followed by a profit of 11.2 billion in 1996. The company expects this year's net profits to reach 14.7 billion drachmas. Mr. Karatzas underlined a change in the company strategy by opening up routes in the new markets of central and eastern Europe.

Flights to new European and ex-Soviet destinations have tripled since 1993 while passenger numbers have risen by 1000 percent. Olympic Airways also plans to introduce an early morning, late evening flight schedule to attract business travellers.

The Greek carrier has signed cooperation agreements with Cross, a Swissair subsidiary, and Asura, an Italian carrier, to jointly operate the routes from Thessaloniki to Zurich and northern Italy respectively.

It has also announced the start of a Thessaloniki-Frankfurt flight.

Greek defence ministry signs 3.9 billion drachma supply contract

Contracts valued at 3.9 billion drachmas for the production of ammunition for the General Army Staff were signed yesterday by National Defence Minister Akis Tsohatzopoulos and Powder and Cartridge Company (PYRKAL) president Evangelos Rogakos.

The contracts, of one year and five year duration, will meet the needs of the armed forces and allow PYRKAL to consolidate its growth on a secure basis, said the defence minister.

Within 1998, he added, contracts valued at 50 billion drachmas are to be signed. Already, contracts worth 8.6 billion and 3.5 billion drachmas have been signed between PYRKAL and the General Armaments Directorate and the general staffs.

The meeting also discussed the completion of PYRKAL's three-year operational programme, including plans to meet the armed forces needs over the next five years and the co-production of weapon's systems with other countries.

Goldair sets up company in Skopje

Goldair, a Greek travel operator, has set up a new company to operate in the Former Yugoslav Republic of Macedonia (FYROM).

Goldair Skopia is a joint venture with local investors and is expected to begin operations soon.

Goldair's chairman Stelios Golemis said in Thessaloniki yesterday that the new company's aim was to meet air travel needs in the neighbouring country.

Goldair also announced the creation of a new company, Goldair Holding, in cooperation with Dutch airline KLM, German carrier Lufthansa and others to provide ground services in Greek airports.

Gov't says committed to strong drachma

Government spokesman Dimitris Reppas stressed the government's commitment to a strong drachma yesterday in response to rumours circulating abroad that a devaluation of the national currency was imminent.

He said the government would defend the drachma, attributing the rumours to "those trying to speculate and to maintain a climate of uncertainty and confusion". "Our position is categorical," he said. "Anyone who tries to play with the drachma will be di sappointed, perhaps even incur damages."

Asked whether the Greek economy could withstand maintaining interest rates at such a high level in order to support the drachma, Mr. Reppas said:

"The condition of the Greek economy is such that it can successfully withstand whatever attacks are made on the drachma. We will continue with the same economic policy."

Greek participation at int'l furniture exhibition

The Greek Overseas Trade Organisation (OPE) has undertaken to organise Greek participation in the international furniture exhibition "FINE 98" in Beirut from March 10-13 1998. Products to be displayed include office and household furniture, furniture for hotels and restaurants, garden furniture, carpets, wall-to-wall carpets, tapestries, mattresses, drapes, curtains, floor lighting appliances and interior decoration items.

According to a relevant announcement by OPE, the Beirut exhibition is expected to attract more than 15,000 importers and merchants, primarily from Lebanon, Syria, Jordan and the wider Middle East region.

People interested in more information can call OPE's Exhibition Department at 99.82.100 until December 10.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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