The Hellenic Radio (ERA): News in English, 08-10-13

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From: The Hellenic Radio (ERA) <www.ert.gr/>

CONTENTS

[01] To the Rescue Plan of the "15"

13 Οκτ 2008 08:40:00 (Last updated: 13 Οκτ 2008 11:07:54)

Sources: ΝΕΤ-ΝΕΤ 105.8-ANA/MPA

European markets reacted positively to the rescue plan the Eurozone member states adopted to address the financial crisis, as they opened Monday morning with considerable profits. In particular, Londons FTSE-100 is up by 5.11 percent, Frankfurts DAX by 5 percent, while Paris CAC 40 stands at 5.36 percent. The Athens market is up by more than 4 percent. Australias market also posted a major increase, while stock markets in New Zealand, South Korea and Hong Kong have opened with profits, indicating signs of a recovery. At the unscheduled summit in Paris, the 15 Eurozone leaders and the British Prime Minister gave thumbs up for a six-point rescue plan that secures liquidity in the inter-bank market, offers state protection to banks and cements their borrowing capacity. The International Monetary Fund offered its backing to the plan.

IMF Backs the Plan

Based upon the measures already taken in Britain, the rescue plan:

-secures liquidity -allows inter-bank lending with state guarantees -foresees the recapitalization of banks -consolidates bank operation -modernise accounting standards

International Monetary Fund head Dominique Strauss-Khan offered its backing to the plan, arguing that the recent initiatives, the action plan adopted by the G7 nations and the rescue plan the Eurozone members agreed on were exactly the kind of initiatives that had to be undertaken.

World Bank Group President Robert B. Zoellick commented that the financial crisis highlighted the need for a joint action with a view to constructing a better system for the future.

Chief economist for the International Finance Cooperation (IFC) Michael Klein estimated that the global financial crisis would not assume greater dimensions provided that the experiment for the capital restructure of the world financial giant which is underway proved successful.

He then went on to note that the key to break the impasse, which he called rather serious, was to recapitalize financial groups, even nationalize banks, further stressing that recovery would be harsh.

In the framework of the plan, sources near the British government said that the countrys central Bank could channel more that $46.6 billion into three major banks, Royal Bank of Scotland, HBOS and Lloyds TSB, hit by the crisis even within Monday.

Barclays, on its part, said it would gradually enhance its liquidity with more than 8.2 billion euros, without state help.

Translated by Areti Christou

Related News:

Karamanlis: "Greece Has Shown Better Reflexes"

European Rescue Plan

Al. Tsipras: "European Leaders Are Also Responsible"

Alogoskoufis: "European and Coordinated Response"

[02] Karamanlis: "Greece Has Shown Better Reflexes"

Sources: ΝΕΤ, ΝΕΤ 105.8, ANA-MPA

In globalization, any crisis acts as if a tsunami influencing everyone, Greeces Prime Minister Kostas Karamanlis argued shortly after the unscheduled meeting of the Eurozone leaders in Paris, France.

"We agreed we had to act with determination and in unison. The measures adopted boost trust in the financial system, ease tension in markets and support real economy in the lives of the European citizens," said the Greek PM.

"The specific measures ensure the necessary liquidity and capital to keep the banking system going, not only in the short-term but in long-term future, too," continued he.

Restoring markets smooth operation would be a rather painstaking effort, claimed he, further adding that Greece had shown better reflexes, with the government guaranteeing bank deposits from the very beginning. "Our interventions mean to enhance the protection shield that we have been building all these years. Therefore:

We continue our growth policy. It is not accidental that the International Monetary system foresees growth in Greece standing at 2 percent, when zero growth is projected for the rest Eurozone countries. We continue our employment policies to create jobs and bring unemployment down. We continue with your eyes fixed on real economy. The one that guarantees the income of each Greek wage-earner and supports our countrys social fabric," stressed the Prime Minister.

Translated by Areti Christou

Related News:

Europe Working in Unison

Alogoskoufis: "European and Coordinated Response"

[03] Papandreou Calls for a Flexible Stability Pact

In his interview with NEA paper, Greeces Socialist leader George Papandreou called for a more flexible Stability Pact that would enable European economies, including Greeces, to rebound. He also suggested that the Central European Bank should have its operation revised and a single European Fund should be formed. He then went on to outline a package of measures, including the reintroduction of the tax relief for freelancers and a crackdown on profiteering.

Translated by Areti Christou

Related News:

Papandreou Proposes New Deal

[04] Obama Holds 4% Lead

Sources: REUTERS

Democrat Barack Obama has a 4-point lead over his Republican rival John McCain in the U.S. presidential race, according to a Reuters/C-SPAN/Zogby tracking poll released on Monday.

Obama leads McCain by 48 percent to 44 percent among likely voters, down 2 percentage points from the lead he enjoyed on Sunday. The poll has a margin of error of 2.9 points. Pollster John Zogby said Mondays results, which saw Obama drop 1 point and McCain gain 1 point from Sundays figures, was an indication the race remained competitive in the final weeks before the Nov. 4 election.

"One day does not make a trend, but perhaps McCain may have stopped some bleeding, and there was bleeding," he said.

Obama had seen his lead firm in recent weeks as the financial crisis grabbed the headlines, unnerving many voters and putting the campaign spotlight on economic issues. Obamas 6-point lead in Sundays results from the rolling, 4-day tracking poll had been his strongest since the survey began on Oct. 7.

Zogby said that while Obama still had a 17-point lead among independent voters, this was down from 21 points on Sunday and showed that some independents remain to be persuaded. "If we see that lead going down again tomorrow, maybe we are talking a horserace," he said.

[05] Heating Oil Distribution Commences

The distribution of heating oil will start as of 15 October, with prices ranging about 0.73 euros per litre for quantities exceeding 1000 litres. Deputy Development Minister Giorgos Vlachos will meet Monday noon with the reps of petrol stations and companies distributing oil products.

[06] Investigation into Conservative MP

Greeces public prosecution services are allegedly considering lifting Conservative MP Kyriakos Mitsotakis parliamentary immunity to see whether he has been involved in the EU subsidies given to IVEN SA. Mitsotakis, on his part, clarified that he had served as IVENs President and Managing Director for only six months while representing the National Bank of Greece. He also stressed that he would give all necessary answers to the Parliament relevant committee that will decide to lift his immunity or not.

Translated by Areti Christou

[07] Serbia Displeased with FYROM

Vice President of the Serbian government and Foreign Affairs Minister Ivica Dadic expressed his dissatisfaction over FYROM and Montenegros decision to recognise the independence of Kosovo. In his interview with RTV PINK private television, Dadic touched on FYROMs stance, stressing that FYROM showed no respect to the fact that Serbia had recognised its constitutional name defying the objections of a friend nation, Greece. He also revealed that the Serbian government had been considering recalling the recognition. Concluding, Dadic said that Serbia did nothing but reacting based on the action plan, employing diplomatic measures. He noted, however, that Serbias ties with FYROM and Montenegro would seriously be strained, because of their stance on the Kosovo issue.

Translated by Areti Christou

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