Foreign exchange
NEWS IN DETAIL
New Archbishop of Athens and All Greece Christodoulos enthroned
The newly elected Archbishop of Athens and All Greece Christodoulos was
enthroned this morning in a grand ceremony at the Athens Cathedral. The new
Archbihop, who replaced the late Serapheim as head of the Orthodox Church
in Greece, was greeted to his new position by the President of Parliament
Apostolos Kaklamanis, the Minister for Education and Religious Affairs
Gerasimos Arsenis and representatives of the church in Greece and abroad.
Christodoulos in his speech outlined his positions on the administration
and the work of the church as well as its relations with the state.
Moody's maintains Greece's long-term currency debt ceiling level
The Moody's international credit rating agency confirmed Thursday night
that it will maintain Greece's ceiling of long-term currency debt at the
current level of Baa1, while drachma-denominated Greek state securities
also retained their A 2 rating.
The recent devaluation of the drachma, in tandem with its incorporation to
the European Exchange Rate Mechanism (ERM), is accompanied by a stronger
commitment on the part of Athens to pursue the course of convergence with
other European economies, the agency said in a press release.
ECB chief comments on Greek economy
The newly appointed first president of the European Central Bank (CEB), Wim
Duisenberg, told a briefing session of the European Parliament yesterday
that he was satisfied by the Greek government's decision to incorporate the
drachma into ERM.
He said CEB would cooperate closely with the Greek government so that the
drachma would be integrated into ERM2, the mechanism that will succeed the
present ERM on Jan. 1, 1999.
Inflation seen dropping to 2.5 pct in '98 - minister
The public deficit is expected to fall to 2.4 percent of the country's
gross domestic product (GDP) and consumer price inflation is seen dropping
to 2.5 percent this year, National Economy Undersecretary Christos Pahtas
said yesterday.
Addressing a two-day conference in Thessaloniki on economic and monetary
union (EMU), Mr. Pahtas said that the government expected growth to
accelerate to 3.7 percent in 1998 and public investments to double by 2001
against 1996 levels.
Unemployment was also expected to drop to 7.5 percent of the country's
workforce by 2001.
ASE slumps on blue chip profit-taking
Greek equities yesterday ended sharply lower on the last trading session of
the week extending two previous days of losses to more than seven
percent.
Traders said investors decided to take profits from their blue-chip
investments in bank and industrial stocks.
Analysts noted that the market's underlying trend remained positive and
that investors were awaiting fresh incentives to push prices higher
again.
State Dept. criticism over alleged PKK Athens office revoked
The government yesterday rejected as "unjustified" US State Department
criticism of Greece concerning Athens' alleged support for the Kurdistan
Workers Party (PKK). "These accusations against Greece are not justified,"
government spokesman Dimitris Reppas said, adding however, that "we are
pleased that our position was acknowledged, albeit belatedly".
US State Department spokesman Lee McClenny said earlier this week that
Washington was "seeking the Greek government's views" on whether or not a
PKK office was being established in Greece.
The government rejected the insinuations and on Thursday, US State
Department spokesman Jim Foley expressed Washington's satisfaction over
Greece's stance on the issue, after a briefing at the US embassy in
Athens.
However, the Turkish foreign ministry said that "we will examine to what
extent the guarantee given by Greece concerning the existence of a
delegation of the PKK coincides with reality" and that Athens' reaction "is
not adequate or satisfactory."
Albanian Premier invites Greek investment
Albanian Prime Minister Fatos Nano last night invited Greek businesses to
invest in Albania, assuring them that last year's violent outbreak was over
for good.
Addressing an event organised by the Federation of Northern Greek
Industries (SBBE) in Thessaloniki, Mr. Nano said: "I can guarantee that
situations similar to last year'sIwill never arise again."
Mr. Nano said the state had restored order and was working hard to improve
its economy and attract investments from abroad.
Greece, Albania's second-ranking business partner after Italy, has offered
its northern neighbour financial aid and help in restructuring its army and
public services.
PASOK delegation on US tour
A ruling PASOK party delegation of government and party cadres arrived in
the United States yesterday for a five-day visit and a series of contacts
with the American and Greek-American leaders. Delegation head PASOK
Secretary Costas Skandalidis said that during the visit they would discuss
problems of expatriates' organisations as well as political issues. The
delegation also met with Archbishop of America Spyridon, while their agenda
includes a brief visit to Washington.
Arrested Piraeus mayor seeks release from prison
The lawyers for Piraeus Mayor Stelios Logothetis yesterday filed an
application for his release from prison pending trial for seven offences
including alleged embezzlement of one billion drachmas from muncipality
funds. Mr. Logothetis was remanded in custody on Wednesday following a
joint decision by the public prosecutor and investigating magistrate in the
case. The reasoning for the decision was that there was a probability the
mayor would commit further offences.
More earthquake activity in Crete
An earthquake measuring 4.6 on the Richter scale rocked the Lassithi region
on the island of Crete early yesterday, but no damage or injuries were
reported.
The earthquake, which was felt throughout eastern Crete, was recorded by
the Athens Geodynamical Institute at 6:38 a.m., with its epicentre in the
Aghios Nikolaos Gulf, from where earthquakes of 4.5, 5.0 and 4.8 Richter
originated three days ago.
Premier reiterates commitment to EMU policy
Prime Minister Costas Simitis told a Cabinet meeting that he is determined
to proceed with his policy and continue the same course, government
spokesman Dimitris Reppas stressed yesterday during a regular press
briefing.
Mr. Reppas said the premier stressed that the government will not
discontinue its policy and must continue its efforts, underlining that no
slackening is justified despite recent positive developments.
ND says Greece now outside EU's nucleus
The main opposition New Democracy party's political planning and programming
secretariat strongly criticised Prime Minister Costas Simitis and the
government yesterday on the occasion of the premier's interview on Thursday,
stressing that Greece now lies outside the European Union's new nucleus.
An announcement stated that Greece "now lies outside the new core nucleus
of the European Union, an achievement it made in the past thanks to the
historic initiative of Constantine Karamanlis.
Transport Minister's Athens office firebombed
A home-made incendiary device comprising of gasoline and several small gas
cannisters exploded late yesterday afternoon at the sixth-floor office of
Transport and Communication Minister Tassos Mantelis, in downtown Stournari
St.
A group called "The children of November" assumed responsibility for the
attack. Similar explosions have occured at the political offices of Labour
Minister Miltiades Papaioannou, Labour Undersecretary Chris tos Protopapas,
former minister and Development Minister Vasso Papandreou.
Fayum portraits highlight Cretan exhibition
The municipality of Iraklion is putting the final touches to a unique
exhibition that will showcase the art of the Early Christian period,
including the rare and haunting Fayum portraits. The exhibits will be
displayed from May 21 in the basilica of Aghios Markos in the Cretan port
city and will include mummies, funerary portraits - many found in the oasis
of Fayum - death masks, Coptic textiles and icons.
The exhibition is called "From the Fayum Portraits to the beginning of
Byzantine icon art" and covers the period from the time of Christ to the
7th century A.D.
Cabinet endorses SA status for key port authorities
The cabinet yesterday approved a proposal to convert port authorities of
key ports into Societe Anonymes (SA), Merchant Marine Minister Stavros
Soumakis told reporters.
"(This is) so we can have ports that are competitive ... After today's
decision we can go ahead with the move," Mr. Soumakis said.
The cabinet for the first time covered the merchant marine sector,
including passenger and cargo shipping, competitiveness and protecting the
Greek flag.
Thessaloniki airport closes May 8-12 for maintenance
Thessaloniki's Macedonia International Airport closed yesterday for five
days of maintenance with all domestic and international flights being re-
routed to nearby Kavala airport.
An airport spokesman said yesterday that the hundreds of passengers
destined for Thessaloniki were served by Alexander the Great airport in
Kavala, and transported to Kavala by coach.
Ionian Bank under management of Commercial Bank ahead of ASE float
State-owned Commercial Bank of Greece will undertake the management of
Ionian Bank until a majority stake in Ionian, its subsidiary, is sold
through the Athens Stock Exchange, government spokesman Dimitris Reppas
said yesterday.
The government has decided to sell Ionian Bank rather than merge it with
Commercial Bank, which holds a 62 percent stake, in order to save around 3,
500 jobs, Mr. Reppas said.
International shipping fair to be held in Piraeus
A record 71 countries will be represented at Posidonia '98, a biennial
international shipping fair held in Piraeus. The June 1-5 exhibition, at
the Piraeus Port Authority's waterfront exhibition centre at Akti Miaouli,
will feature 1,500 exhibitors.
Their products and services, some of them new, are designed to make
shipping safe, efficient and environmentally aware.
The exhibition will reflect the increasing computerisation of ships with 75
companies specialising in the use of software applications and computer
consultancy taking part.
Weather
Cloud, rain and local thunderstorms are forecast for most of the country
for Sunday, although phenomena are expected to subside later in the day
starting from the west. Northerly strong to very strong winds will reach
gale force in parts of the Aegean before easing in the evening. Athens can
expect heavy rain, especially in the morning, and moderate to strong
northerlies with the temeperature ranging between 13 and 19 degrees
centigrade. Similar conditions for Thessaloniki, with temperatures 12 to 18
degrees.
Foreign exchange
Friday's rates (buying) U.S. dollar 306.875
British pound 502.805 Japanese yen(100) 231.513
French franc 51.711 German mark 173.402
Italian lira (100) 17.576 Irish Punt 436.877
Belgian franc 8.406 Finnish mark 57.044
Dutch guilder 153.834 Danish kr. 45.493
Austrian sch. 24.641 Spanish peseta 2.042
Swedish kr. 40.295 Norwegian kr. 41.426
Swiss franc 207.760 Port. Escudo 1.691
Aus. dollar 195.523 Can. dollar 213.597
Cyprus pound 587.601
(K.G.)
