Athens News Agency: News in English, 00-09-05

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

CONTENTS

[01] Athens-ICAO President-Visit

[02] Greek FM-Balkan Tour

[03] Central Bank-Rate Cut

[04] Foreign Exchange Rates-Wednesday

[05] Weather Forecast-Wednesday

[06] Karelias SA-1st half results

[07] Greece-earthquake cost

[08] Maillis Grou-Polish acquisition

[09] ASE-close

[10] Greece-employment reactions

[11] Greece-bond auction results

[01] Athens-ICAO President-Visit

The president of the council of the International Civil Aviation Organisation (ICAO), Dr. Assad Kotaite, currently on a visit to Athens, on Tuesday expressed his satisfaction over the progress which has been made these past few years in Greece concerning flight organisation and operation, underlining that the government has taken all the necessary measures for improving the infrastucture of Greece's Civil Aviation Authority.

Kotaite, who was also received on Tuesday by President of the Republic Kostis Stephanopoulos, noted a significant reduction in flight delays this summer and an increase in air traffic. He also praised the high standard of the country's air traffic control.

He said that there will be a major increase in air traffic in the coming years and that governments must be prepared to face the challenges of the future.

[02] Greek FM-Balkan Tour

Papandreou to begin three-day tour of FYROM, Serbia, Montenegro and Kosovo

Foreign Minister George Papandreou begins a three-day tour of the Former Yugoslav Republic of Macedonia (FYROM), Serbia, Montenegro and Kosovo on Wednesday, in view of the forthcoming elections in the region.

He will first visit FYROM where he will meet the country's prime minister, Ljubco Georgievski, the opposition leader and the leader of FYROM's Albanians.

Municipal elections will be held in FYROM on Sunday.

On Thursday, Papandreou will visit Belgrade where he will meet his Yugoslav counterpart Zivadin Yovanovic and main opposition candidate Vojislav Kostunica, in light of the presidential elections on September 24. He will also meet Serbian Patriach Pavle.

On Friday, Papandreou will visit Kosovo (where local elections will be held on October 28) and Montenegro.

[03] Central Bank-Rate Cut

The Bank of Greece, or central bank, is to lower its key intervention rates by 75 basis points, effective on Wednesday, in the fifth decline this year, the monetary policy council said.

The timing of the rate cut, which is usually announced during morning trade on Wednesdays, took the market by surprise.

In a statement on Tuesday, the council announced that the two-week interbank rate would drop to 7.50 percent from 8.25 percent; the overnight rate to 6.50 percent from 7.25 percent; and the Lombard rate to 8.25 percent from 9.0 percent.

After the cuts, the country's base money market rate will stand 3.0 percent higher than the euro's rate, the statement said.

The rate reduction's early timing may be linked to a meeting of National Economy and Finance Minister Yiannos Papantoniou and Bank of Greece governor Lucas Papademos scheduled for Wednesday, market analysts said.

[04] Foreign Exchange Rates-Wednesday

Indicative retail rates released by the central bank for the next working day.

Wednesdays rates (buying)

Euro 334.939

U.S. dollar 375.889

German mark 171.252

[05] Weather Forecast-Wednesday

Scattered cloud is forecast throughout the country on Wednesday, turning to showers and storms in the northeast. Winds west-northwesterly, moderate to very strong.

[06] Karelias SA-1st half results

Karelias SA, a Greek listed tobacco company, on Tuesday reported a 25 percent rise in its pre-tax profits for the first half of 2000 to 2.4 billion drachmas, from 1.9 billion the same period last year.

A company statement said that a rise in profits reflected an increase in sales volume in the domestic market and a 29 percent rise in exports to 3.9 billion drachmas in the January-June period.

Turnover totalled 19.1 billion drachmas, from 15.9 billion in 1999, an increase of 20 percent.

Consolidated pre-tax profits of Karelia Group rose 24 percent while consolidated turnover was 20 percent higher in the first six months of 2000.

The company invested 1.3 billion drachmas in implementing new technology in the first half of the year.

[07] Greece-earthquake cost

The cost of a devastating earthquake that hit the Attica region in September 7, 1999, will rise to 900 billion drachmas, Greece's Environment, Town Planning and Public Works Minister Costas Laliotis said on Tuesday.

Speaking to reporters, Laliotis said the figure included the cost of financial support to citizens hit by the quake and the reconstruction and repairing of public and private buildings. He said that measures taken totalled 200 billion drachmas already.

Laliotis announced the creation of a special registry for building hit by the earthquake.

"A lot has been done, but more must and will be done," Laliotis said.

A total of 19,000 buildings (private houses, flats and factory sites) have already been included in reconstruction programmes while applications for housing support have totalled 2,330, with 1,550 have been approved, Laliotis said.

[08] Maillis Grou-Polish acquisition

Maillis Group on Tuesday announced the acquisition of Marflex Sp. Z.o.o in Poland, in a move designed to expand its activities in the country.

A company statement said that Marflex would join forces with M.J.Maillis Poland Sp. Z.o.o, a combination to result in significant synergies and savings.

Marflex is the biggest stretch film producer in eastern Europe and the biggest producer of plastic bags in Poland.

Maillis plans to more than double Marflex's production capacity to a combined production of more than 70,000 tones of stretch film, accounting to annual sales of more than 35 billion drachmas.

[09] ASE-close

Equity prices ended sharply higher on Tuesday, extending their rally for the fourth consecutive session and pushing the general index above the 3,800 level for the first time in the last 14 sessions.

Traders said a wave of buying orders by foreign institutional investors, focused on blue chip stocks, led the Greek bourse higher.

An expected interest rate-cut by the Bank of Greece also encouraged sentiment in the market.

The general index ended at 3,839.76 points, up 5.05 percent with turnover a heavy 121.08 billion drachmas. The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 5.32 percent higher at 2,191.16 points and the FTSE/ASE 40 rose 4.80 percent to 515.51 points.

The parallel market index for smaller capitalisation stocks ended at 624.27 points, up 5.03 percent.

[10] Greece-employment reactions

GSEE, Greece's largest trade union umbrella, is heading for a clash with the government over labour ministry's plans for labour reform in the country, while unions in public sector enterprises on Tuesday called for one-day strikes in September.

GSEE officials said that the union's final decision on a dialogue with the government would be determined on Wednesday at a meeting of the executive committee.

GSEE's chairman, Christos Polyzogopoulos, reiterated however that the union was determined to move ahead with its decision for a pan-hellenic 24-hour strike in October and said it was preparing to fight against government proposals for more flexible labour relations.

Meanwhile, Hellenic Telecommunications Organisation's staff on Tuesday called for repeating 24-hour strikes following tabling in parliament of a draft bill envisaging the sale of the organisation to private investors by the government. Workers' unions in Public Power Corporation and State Railways have responded positively to a call by Hellenic Telecoms' unions for a joint action against plans for the full privatisation of state enterprises.

OTOE, the union of bank employees, also called for a 24-hour strike for September 22.

[11] Greece-bond auction results

Long-term bond yields fell substantially during Tuesday's regular state bond auction by the Public Debt Management Organisation.

The average weighed yield of a five-year bond issue, worth 200 billion drachmas and paying an annual coupon of 5.95 percent, fell to 5.99 percent from 6.13 percent in the previous auction of same bonds in July 18.

Bids submitted totalled 780.5 billion drachmas, almost four times more the asked sum.

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