Treasury bill interest rates slip
NEWS IN DETAIL
Simitis meets with farmers' reps
Prime Minister Costas Simitis and representatives of farmers' unions agreed
at a meeting yesterday to commence dialogue on Greek agriculture's
structural problems, which will be considered at a newly established
"national agricultural policy council".
The council is scheduled to convene on Jan. 10 and 11.
According to reports, the prime minister will chair the inaugural session
of the council, where he is likely to announce the re-scheduling of
agricultural debts so that deliberations of the council are restricted to
institutional matters that exclude fi nancial issues.
Mr. Simitis said any increase in farmers' real incomes would come about
from structural changes and not increased subsidies. He stressed that the
government and farmers must move away from a mentality dominating the past
decade, where he said emphasis was placed on income supports. He also made
special reference to the need for standardisation and improvement in the
quality of produce. Priority will also be given to the drafting of a
farmers' register, which Mr. Simitis said should be ready by September
1997.
Shares of Bank of Attica sold to pension funds
The Commercial Bank group has transferred 34 per cent of the Bank of
Attica's shares to the Public Works Engineers and Contractors Fund (TSMEDE)
for 6.46 billion drachmas and 15.5 per cent to the Deposits and Loans Fund
(TPD) for 2.94 billion drachmas.
The agreement, approved by the boards of Commercial Bank, TSMEDE and TPD,
leaves Commercial Bank with about 20 per cent of the Bank of Attica's
shares as well as the management for five years.
Commenting on the sale, National Economy Minister Yiannos Papantoniou said
the first denationalisation of a bank in the wider public sector had been
successfully concluded.
EOT circulates album on ancient theatres
The Greek Tourist Organisation (EOT) has unveiled an annual album entitled
"Hellas '97", dedicated to Greece's cultural heritage, and ancient theatres
in particular.
The album, which circulated with 150,000 copies in eight languages - Greek,
English, French, German, Italian, Spanish, Dutch, and for the first time
Russian - includes 55 ancient theatres throughout the country, the majority
of whom host performances ov er the summer season.
Handicraftsmen warn of dire future if tourism continues to slip
The Union of Popular Art Handicraftsmen of Attica is sounding the alarm
over the viability of traditional popular art workshops.
An announcement by the union said the manufacturers of popular art items
have experienced the worst year over the past 20 years, with a 40 per cent
decrease in turnover and the direct result of many workshops closing
down.
The branch attributes the ominous messages to a considerable decrease in
the number of tourists who visited Greece in 1996, stressing that the
viability of popular art workshops depends directly on tourism.
Athens News Agency services
Following the conversion of the Athens News Agency (ANA) into a Societe
Anonyme (A.E.) which rendered it an independent organisation, the ANA will
from now on welcome professional half-page or full-page advertisements in
its daily English and French Bulletin.
Advertisements will be accepted from embassies, banks, commercial and
maritime companies, chambers of commerce, advertising companies, airlines,
organisations, professional associations, educational and research
institutions in Greece and abroad as well as international bodies.
Also, for a small fee, the above groups may channel their Press Releases
(PRs), announcements or photographs - in Greek, English or French - to the
ANA's more than 100 media subscribers throughout Greece and Cyprus via the
recently introduced ANA on-line PR's service.
For details on and arrangements for the advertising and/or PRs on-line
service, please contact the ANA Marketing Department, tel: 6400580, fax:
6400024 between 10:00 a.m. and 2:30 p.m.
Interest rate on treasury bills after Jan. 1
The 7.5 per cent interest rate on state treasury bills to be issued as of
January 1, 1997, onwards will be received in advance. This means a buyer
will have to pay the value of securities he will buy, plus the amount of
tax corresponding to interest, acco rding to a document issued by Finance
Undersecretary George Drys.
The document explains that the advance receipt of the 7.5 per cent tax will
take place irrespective of whether the investor is a private individual or
a legal entity, a union of people or property group, a local resident or a
foreigner, without national ity or place of stay or residence or headquarters
being examined and regardless of whether a bilateral agreement exists on
the avoidance of double taxation.
Moreover, interest stemming from treasury bills issued in 1996 and maturing
in 1997 remains tax-free. However, the 7.5 per cent tax on treasury bills
which will be renewed as of January 1, 1997, onwards will be received in
advance.
On the question of treasury bills maturing as of January 1, 1997 onwards
and are silently renewed, the withholding of tax corresponding to interest
resulting over the period which the renewal will last will take place at
the time of their paying off.
State bonds
Regarding state bonds, it was explained that tax will be withheld at the
time interest shares are cashed and always concerning issues made after
January 1, 1997.
Concerning bonds issued until December 31, 1996, interest is not subject to
taxation throughout their entire duration and until the time of their
maturity.
Lastly, in the cases of both treasury bills and bonds the beneficiaries'
tax commitment for this income is exhausted with the advance payment or
withholding of the 7.5 per cent tax.
New state bond sales announced
Tendering will take place at the Bank of Greece on December 27 for the sale
of state bonds in drachmas, in the form of natural and electronic titles,
and with a fluctuating interest rate, a seven-year duration and a date of
issue showing December 31, 1996 .
The issue amounts to 200 billion drachmas. The interest rate for the bonds
is set for the first interest-bearing period (31.12.96 to 31.12.97) at
12.60 per cent, namely equal to the base interest rate of 11.20 per cent
plus a fixed marging of 1.40 per c ent over the entire duration of the
loan.
Tendering will also take place at the Bank of Greece on December 27 for the
sale of Greek state bonds in drachmas, in the form of natural and
electronic titles with a stable interest rate, a three-year duration and a
date of issue showing December 31, 1 996.
The interest rate for these bonds is set at 10.70 per cent and the offering
is estimated at 100 billion drachmas.
Treasury bill interest rates slip
The finance ministry announced that as of yesterday, Dec. 23, new interest
rates have been set for treasury bills. Specifically, 10.2 per cent for
three months, 10.50 per cent for six months and 11.2 per cent for one
year.
It was also announced that the New York-based Moody's credit ratings
assessment firm has upgraded Greece's credit rating.
This boost strengthens the country's reliability in capital markets and
will considerably help in a further decrease in the cost of lending, the
finance ministry's announcement stated.
WEATHER
Cloudy and rainy in western and central Greece. Rest of the country, the
Ionian sea and the mainland will be partly overcast with scattered rainfall
at night. Southwestern winds will gradually subside. Athens will be
overcast with temperatures ranging from 11-17C. Thessaloniki will be cloudy
and rainy with temperatures between 7-13C.
SPORTS
Noted Russian athlete Svetlana Masterkova, who distinguished herself in the
Atlanta Olympiad last summer, will participate in the World Athletics
Championships Athens '97.
The 28-year-old Olympic gold medallist in the 800 and 1,500 metres, and
world record holder in the 1,000 metres and the mile, assured members of
the organising committee of her participation in the 1997 championships.
"My target is the gold medal in the 800 metres, and the possibility of
taking a shot at the world record cannot be ruled out," she said, adding
that she will not have the opportunity of repeating her double success in
Atlanta since the time that the two events will take place does not suit
her intentions, unless the programme changes and the 800 metres race occurs
before the 1,500 competition.
FOREIGN EXCHANGE
Closing rates - buying U.S. dlr. 244.607
Can. dlr. 178.342 Australian dlr. 194.958
Pound sterling 410.490 Irish punt 407.414
Cyprus pd 521.633 French franc 46.755
Swiss franc 183.079 Belgian franc 7.658
German mark 157.728 Finnish mark 52.886
Dutch guilder 140.690 Danish Kr. 41.247
Swedish Kr. 35.833 Norwegian Kr. 37.964
Austrian Sh. 22.404 Italian lira (100) 16.064
Yen (100) 214.133 Spanish Peseta 1.880
Portuguese Escudo 1.564
(C.E.)
