Athens News Agency: News in English (AM), 98-06-02

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

NEWS IN ENGLISH

Athens, Greece, 02/06/1998 (ANA)

MAIN HEADLINES

• Government urges Ionian Bank employees to come to talks
• Commercial Bank of Greece owns 58 percent of Ionian Bank
• New Athens bourse chairman calls for swift restructuring
• Greek stocks slump in wake of international doldrums
• National Bank of Greece says new share allocation to hold steady
• Debate at Posidonia on intelligent transport systems in shipping
• Greek protest to British Foreign Office
• US magazine criticises Turkey
• Expert signals concern over Kozloduy
• ND deputy's car crashes, one woman dead
• Crete increases share of GNP
• Increased profits for investment firms in '97
• 'Posidonia 98' opens in Piraeus
• Quarterly OTE profits, turnover rise
• Greek participation at Verona exhibition
• Athens Hospital doctors to strike tomorrow
• Weather
• Foreign exchange

NEWS IN DETAIL

National Economy and Finance Minister Yiannos Papantoniou yesterday urged striking Ionian Bank employees and union federation leaders to hold talks on safeguarding jobs after the bank's sale.

Mr. Papantoniou made the statement after an informal meeting of the inner cabinet held with the ruling PASOK party's political secretariat to discuss the government's restructuring programme and the sale of Ionian Bank.

The talks would involve officials of Ionian's staff association, the Federation of Greek Bank Employees' Unions, and the General Confederation of Greek Labour.

Mr. Papantoniou said that the meeting restated the government's decision to sell a majority stake in the bank and that terms of the sale would be submitted for approval to the board of Commercial Bank of Greece, Ionian's main shareholder, on June 19.

Government spokesman Dimitris Reppas also urged workers and bank union representatives to hold talks with the government on safeguarding jobs.

Commercial Bank of Greece owns 58 percent of Ionian Bank

Commercial Bank of Greece sold around one million shares of its stake in Ionian Bank through the Athens bourse between March 26 and the date the government announced its plan to sell the subsidiary, Commercial's chairman Costas Georgoutsakos said yesterday. The bank made a substantial profit from the sale, which brought its shareholding down to 58 percent, Mr. Georgoutsakos told the Imerisia financial daily.

Both Commercial Bank and the government have repeatedly denied allegations that they had dumped blocks of shares through the bourse in order to ease Ionian's sale by driving down its share price.

Commenting on a proposed merger between Ionian Bank and Commercial Bank contained in a recommendation by Monitor international consultants, Mr. Georgoutsakos said the plan was rejected as it would have led to 3,100 lay- offs and a sharp reduction in the group's branch network by 153.

The chairman said that Ionian Bank's sale would pave the way for a large share capital increase in Commercial Bank to finance a restructuring plan and an expansion programme.

New Athens bourse chairman calls for swift restructuring

The new chairman of the Athens Stock Exchange, Spyros Kouniakis, yesterday urged the government to speed up its economic restructuring programme, in which the bourse could play a major role.

Mr. Kouniakis also said he backed mergers and acquisitions by listed companies.

He was speaking at a ceremony at which he formally took over chairmanship of the Athens bourse from his predecessor, Manolis Xanthakis.

He said that the Athens bourse had invested more than 10 billion drachmas, increased turnover by 30 times and boosted its capitalisation sixfold.

Greek stocks slump in wake of international doldrums

Greek equities lost substantial ground on the Athens Stock Exchange yesterday hit by a decline at the opening of most European markets and a negative climate in Asian markets.

The general index closed 2.12 percent lower at 2,536.09 points reversing an early advance with most sector indices suffering losses. Banks dropped 3.07 percent, Insurance fell 2.33 percent, Investment eased 0.77 percent, Leasing ended 4.41 percent off , Industrials fell 1.35 percent, Miscellaneous eased 0.64 percent, but Construction and Holding rose 0.70 and 0.55 percent respectively.

The parallel market index for small cap companies fell 0.84 percent. The FTSE/ASE 20 index dropped 2.68 percent to 1,512.94.

Trading was active with turnover at 76.9 billion drachmas.

Broadly, decliners led advancers by 134 to 122 with another 16 issues unchanged. Bank of Greece, Intracom, Nikas, Zampa, Korasidis, Kalpinis, Alco Hellas, Viokarpet and Levenderis scored the biggest percentage gains hitting the day's 8.0 percent limit up.

Pouliadis, Riopesca, Selonda, Dane, Intertyp, Nematemporiki, NEL, Vis and Lavipharm suffered the heaviest losses.

National Bank of Greece ended at 41,950 drachmas, Ergobank at 27,000, Alpha Credit Bank at 30,800, Delta Dairy at 4,600, Titan Cement at 19,100, Intracom at 23,619 and Hellenic Telecommunications Organisation at 8, 650.

National Bank of Greece says new share allocation to hold steady

The ownership of National Bank of Greece has shifted to the private sector following the sale of 2.5 million shares in the country's largest commercial bank, the Sunday Kathimerini newspaper said at the weekend.

The shares, which were sold recently to domestic and foreign institutional investors, came from the first phase of conversion of a bond forged with the Greek state.

"Changes in shareholding percentages in the bank's share capital do not upset existing balances and the current situation, and neither are they expected to do so," National Bank of Greece said in a statement yesterday.

The sale lowered the state's shareholding in National Bank to a minority shareholding of 42 percent, of which one percent is owned directly by the state and the remainder by the broader public sector, Kathimerini said.

Debate at Posidonia on intelligent transport systems in shipping

Experts from 11 countries representing projects supported by the European Commission (DGXIII) meet in Piraeus today to discuss the latest developments in intelligent transport systems, new added value services and information society technologies for maritime transport.

The one-day conference on maritime and intermodal transport in the age of transport telematics (Marinter '98) organised by the European Commission is being held at the Piraeus Port Authority's waterfront exhibition centre in parallel with Posidonia '98 , an international shipping exhibition running from June 1-5.

During the Marinter '98 conference, delegates will discuss telematics applications for effective and safe waterborne transport and their key role in integrating and enhancing total transport services.

"Helping freight carriers to use a combination of maritime as well as rail and road freight transport is the most significant step we can make in taking advantage of Europe's biggest trading asset, Fotis Karamitsos,Head of Telematics Applications for Transport and Environment at the European Commission Directorate-General XIII, said in a statement.

Greek protest to British Foreign Office

Greece's ambassador in London, Vassilis Zafeiropoulos, lodged a protest with the Foreign Office over the "Sunday Times" article. Mr. Zafeiropoulos stressed to Foreign Office officials that such articles created serious negative repercussions for the tourism of both Greece and Cyprus and should not be used as a means of exerting pressure to secure the cancellation of the missiles' installation.

The Foreign Office categorically assured the envoy that there had been no British government influence or involvement in the newspaper article and informed him that there was no special plan for the confronting of a crisis in Cyprus. Speaking to the ANA, British defence ministry and foreign office representatives questioned the credibility of the reporter who wrote the article.

A Foreign Office representative was quoted as saying that the article had also damaged British foreign policy.

US magazine criticises Turkey

An article in the American magazine "Defence News" criticised Turkey for what it called that country's unwillingness to accept conditions for "release of a European Union financial protocol in return for renewed talks with Greece."

The article called Turkey's refusal a missed opportunity, noting that Ankara did not take advantage of a British presidency proposal aimed at bypassing Athens' veto.

According to the magazine, Turkey's refusal is expected to distance it from its western European neighbours, adding that Ankara missed an opportunity since after Britain, Austria will take over the EU presidency - a country that many in Turkey consider hostile to them, or so the magazine says.

Expert signals concern over Kozloduy

Professor Costas Papastephanou, who lectures in nuclear physics at Thessaloniki University, said yesterday that four of the six reactors at the Kozloduy nuclear power plant in neighbouring Bulgaria should already have been closed down because of their obsolete technology.

Commenting however on reports of a recent minor nuclear accident at Kozloduy, Mr. Papastephanou said "it can't have been very serious", adding that "if something did happen, it must have been dealt with promptly".

Describing all six reactors at Kozloduy as obsolete, Mr. Papastephanou said Bulgaria would not close the four most dangerous ones until the construction of two bigger reactors has been completed in 2004 and 2007.

"Under no circumstances will Bulgaria stop using nuclear energy, because it wants to use it as a negotiating card in its bid to join the European Union, " he told a press conference on the environment organised by local officials of the main opposition N ew Democracy party in Thessaloniki.

Greece, the International Atomic Energy Agency (IAEA) and the environmental organisation Greenpeace have repeatedly underlined the danger posed by the operation of the Kozloduy plant, situated just 225 kilometres from the Greek-Bulgarian border.

Greenpeace has warned that an accident at Kozloduy could overshadow the terrible consequences of the Chernobyl disaster which caused 30,000 deaths and contaminated 160,000 square kilometres of land, forcing 400,000 people to abandon their homes.

ND deputy's car crashes, one woman dead

A young woman died early yesterday when a vehicle in which she was riding in, driven by main opposition New Democracy deputy Costas Karaminas, slammed into three parked cars and finally crashed into an electricity pole.

Mr. Karaminas and a friend who was also in the car, Artemis Panousos, 32, a merchant, ND cadre and chairman of the municipal council of Karlovasi on the island of Samos, were not seriously injured. Police later said that both men were wearing seat belts , while their air-bags were also activated on impact.

Citing his Parliamentary immunity, authorities said Mr. Karaminas refused to take a breathalyser test, while initial police reports state that the accident was due to excessive speed. Later in the day the Samos deputy said he didn't remember whether he refused to take a breathalyser, adding however, that he will not "dispute reports by police from the accident division dispatched to the incident."

The dead woman was identified as 26-year-old Elli Pilidou.

Crete increases share of GNP

Crete accounted for 5.3 per cent of Greece's GNP in the 1990-95 period - compared to 4.5 per cent in the previous decade - while its 10-year annual average unemployment rate stands at 4 per cent, half the national average, participants at a one-day confer ence in Hania were told yesterday.

Crete's development rates are considerably influenced by tourism and the cultivation of olives, it was also reported.

Finance Undersecretary Nikos Christodoulakis, who spoke at the conference, said Crete's regional development plan would greatly contribute to the formulation of a national development plan.

Increased profits for investment firms in '97

Profits of investment firms amounted to 40.9 billion drachmas in 1997, increasing by 133 per cent compared to 1996.

Over the same period of time, revenues for the entire sector increased by 115 per cent.

Results of investment firms in 1998, according to a publication by the Union of Institutional Investors (ETHE), are expected to follow the same positive course, since over the first quarter of the current year profits of certain companies in the sector have exceeded 50 per cent of total profits for 1996.

'Posidonia 98' opens in Piraeus

Merchant Marine Minister Stavros Soumakis yesterday opened the "Poseidonia '98" international maritime exhibition in Piraeus, the world's largest.

In his address, the minister said the Greek merchant fleet had gained first place in the world as a result of the entrepreneurial ability and instinct of Greek shipowners, as well as the seafaring skills of crews. He also stressed the sector's paramount contribution to the national and the world economy.

The exhibition's organiser, Th. Vokos, expressed his satisfaction, noting that participations this year reached a record number of 1,500 from 72 countries.

Greek Shipowners' Union president Yiannis Lyras said the large number of participants was proof the success of the event, which spanned nearly 30 years.

Quarterly OTE profits, turnover rise

The Hellenic Telecommunications Organisation (OTE) increased profits and sales over the first quarter of the current year.

Pre-tax unified profits amounted to 70.489 billion drachmas, while the turnover totalled 207.574 billion drachmas.

Although corresponding figures do not exist for last year, it is assessed that there is an increase in the region of 12-15 per cent. Net profits with tax amounted to 45.185 billion drachmas. The utility's predictions for profits of 368 billion drachmas and a turnover of 979 billion drachmas are unattainable, since results in the first quarter showed a lag in profits.

Greek participation at Verona exhibition

Greece will participate in an international marble exhibition in Verona, Italy between Sept. 24-28.

According to an announcement by the Hellenic Foreign Trade Board (HEPO), products to be displayed include marble and other stones, machinery for excavating, processing, transferring and packaging stones, as well as materials for the preservation and processing of stones.

The Verona exhibition, considered a leading event in the marble sector, will feature about 1,500 exhibitors from 40 countries, while visitors are expected from 115 countries.

For more information contact HEPO's exhibition department at tel. (01) 99.82.204 or the organisation's offices in Thessaloniki, (031) 26.21.20.

Athens Hospital doctors on strike tomorrow

Physicians at Athens-area and Piraeus public hospitals and clinics are scheduled to hold a 48-hour strike tomorrow and Thursday in demand of salary raises, including a 10 per cent pay hike and benefits granted other civil servants.

They are also protesting against what representatives consider cutbacks in annual leave pay.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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