Athens News Agency: News in English (AM), 98-06-03

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

NEWS IN ENGLISH

Athens, Greece, 03/06/1998 (ANA)

MAIN HEADLINES

• Gov't to guarantee Ionian Bank jobs in sale contract
• Gov't rejects talk of postponing Ionian Bank sale
• Greek stocks edge up on gov't, union talks in Ionian Bank saga
• Greek bonds show rate slip in auction
• Greek central bank drops forex reserve requirement, commissions
• Greece's Eurobank sets sail on Internet
• Helexpo exhibition in Belgrade
• Simitis pledges gov't will follow through with EMU entry
• Tsohatzopoulos-Omirou meeting focuses on joint defence doctrine
• Kaklamanis dismisses Turkish counterpart's remarks
• Tsohatzopoulos on official visit to Slovenia
• Greece-US legal assistance agreement
• Joint Greek-US military exercises in Aegean
• Romeos calls for attack on police corruption
• Police commander arrested on blackmail charges
• Greenpeace condemns genetically altered crops in Greece
• ND deputy referred to party's ethics committee after fatal crash
• Greece, Portugal lead EU in traffic deaths
• Weather
• Foreign exchange

NEWS IN DETAIL

The government said yesterday it put forward a proposal fully guaranteeing jobs at Ionian Bank, by incorporating the bank's existing labour regulation in a sale contract.

Speaking to reporters after a meeting with trade union leaders, in which Labour Minister Miltiades Papaioannou and Undersecretary Christos Protopapas also participated, National Economy Minister Yiannos Papantoniou said the meeting took place in a positive climate, and expressed a view that the new proposal raised no obstacles to the prospect of privatisation.

The new government position means that in an eventual privatisation of the bank, any new owner will be committed to maintain all of Ionian's current staff.

By contrast, Ionian employees' union president Yiannis Markakis said the strike would continue because the dispute over the bank's property status remained unresolved, while employees would continue opposing the sale.

Gov't rejects talk of postponing Ionian Bank sale

The national economy ministry yesterday dismissed as groundless a press report claiming that the government had decided to postpone the sale of a majority stake in state-owned Ionian Bank.

The ministry repeated in a statement that its plan to privatise the bank through the Athens Stock Exchange would proceed according to a timescale already announced, and with absolute transparency.

A decision on the sale of a majority stake in Ionian Bank was expected to be approved by a shareholders meeting of listed Commercial Bank, Ionian's main shareholder, on June 19, the statement said.

Greek stocks edge up on gov't, union talks in Ionian Bank saga

Greek equities ended slightly higher yesterday recovering a small part of major losses in the previous session.

Traders said the market welcomed news that listed Ionian Bank's workers and national trade union federation officials had agreed to the government's proposal for talks on safeguarding jobs.

Ionian's workers have been on strike since May 11 to protest against the government's decision to privatise Ionian rather than merge it with its parent, listed Commercial Bank of Greece.

Ionian's share price rose 280 drachmas to end at 13,050.

The general index rose 0.61 percent to 2,551.47 points.

Sector indices finished mixed. Banks rose 0.86 percent, Insurance fell 1.09 percent, Investment dropped 1.14 percent, Leasing eased 0.46 percent, Industrials increased 0.65 percent, Construction jumped 1.78 percent, Miscellaneous ended 0.59 percent up a nd Holding fell 1.06 percent.

Broadly, advancers led decliners by 127 to 112 with another 26 issues unchanged. Ippotour, Vis, Ekter, Alte, Ergodata, Barba Stathis, Metka, Boutaris and Mediterranean Invest scored the biggest percentage gains hitting the day's 8.0 percent limit up.

Mouzakis, Dane, Parnassos, Bank of Athens, Exelixi, Etma, Bank of Central Greece, Nafpaktos Mills and European Credit suffered the heaviest losses.

National Bank of Greece ended at 41,700 drachmas, Ergobank at 26,990, Alpha Credit Bank at 31,770, Delta Dairy at 4,600, Titan Cement at 21,600, Intracom at 23,790 and Hellenic Telecommunications Organisation at 8, 745.

Greek bonds show rate slip in auction

The finance ministry yesterday auctioned a new issue of seven-year fixed- income bonds at 8.7 percent through the market's primary dealers. The average weighed rate fell to 8.4 percent, a 20 basis point drop from the previous auction. Bids submitted total led 281.5 billion drachmas.

Greek central bank drops forex reserve requirement, commissions

The Bank of Greece, the country's central bank, will lower its reserve requirement on foreign currency deposits by commercial banks to 60 percent from 70 percent, effective on July 1, it said in a statement yesterday. The move, which will boost banking liquidity, is part of the central bank's policy of gradually loosening its grip on the interbank market.

The Bank of Greece will also lower annual commissions beyond the interest to 1.0 percent from 1.2 percent, the statement said.

Greece's Eurobank sets sail on Internet

Greece's private Eurobank is now available on Internet, offering surfers direct access and two-way communication. The bank said in a statement yesterday that customers would soon be able to effect transactions via Internet.

Among services Eurobank currently offers on Internet is information about its products, maps showing the location of branches, applications for consumer loans, and information on the Athens Stock Exchange that will shortly become real-time.

Eurobank's address on Internet is www.eurobank.gr

Helexpo exhibition in Belgrade

The first-ever exhibition of exclusively Greek enterprises will be held in Belgrade by Helexpo between Oct. 6-9.

Belgrade was the first choice of businesspeople, following results of a relevant Helexpo questionnaire last year. Skopje, the capital of the Former Yugoslav Republic of Macedonia (FYROM), was runner-up.

The event is the first organised exhibition to be held in order to present Greek products and services in Belgrade.

Cooperation between the two nations' exhibition organisations will be finalised with the signing of an agreement. Helexpo is also in contact with the Greek embassy in Belgrade to organise certain events under the auspices of the embassy.

Simitis pledges gov't will follow through with EMU entry

Prime Minister Costas Simitis reiterated last night that the government would not waver on its course towards taking Greece into Economic and Monetary Union (EMU), while it would also exhaust its four-year term.

"EMU is a difficult but necessary path. We have before us two difficult years," he said during a Parliamentary debate on the country's European prospects, adding that his government guaranteed final success.

The prime minister attacked the opposition, saying it was responsible for the reactions to the necessary measures.

Mr. Simitis insisted on the need for structural changes, particularly in banks and public utilities, so as to make them more flexible and competitive. "If we are not willing to tolerate even the smallest structural change, then we must accept our voluntary retirement from developments of history," he noted. Main opposition New Democracy party leader Costas Karamanlis criticised the government for its handling of EMU, noting that Greece was the only country which would remained outside the euro zone.

This constitutes a most unfavourable development and a national downgrading, he said.

"We shall be a second-category member-state and this is the result of the government's irresponsible and mistaken choices," he added. He warned that this would have repercussions on Greece's national issues, making the attainment of convergence targets more difficult.

Tsohatzopoulos-Omirou meeting focuses on joint defence doctrine

National Defence Minister Akis Tsohatzopoulos and his Cypriot counterpart Yiannakis Omirou held talks yesterday on technical and organisation issues concerning joint defence doctrine strategy. They also discussed current issues within the framework of bilateral cooperation to safeguard the two countries' effective defence capability.

Both ministers also criticised the British government over a report appearing in the "Sunday Times" on the evacuation of British nationals from Cyprus in the event of an armed conflict, as well as countries in Europe and other allies over their mediation positions on Cyprus.

Replying to a question on the type of measures taken and on whether there is an intention to strengthen the defence of Cyprus in light of the arrival of the Russian S-300 anti-aircraft missiles, Mr. Omirou said all necessary measures are being taken which consolidate the Cypriot people's sense of security.

Kaklamanis dismisses Turkish counterpart's remarks

Parliament President Apostolos Kaklamanis rejected in Palermo, Sicily his Turkish counterpart's statements that Athens is directly involved in Cyprus while Ankara is only indirectly involved.

Turkish National Assembly President Ismet Cetin's comments came during a Euro-Mediterranean parliament presidents' conference in Sicily's capital this week.

Mr. Kaklamanis called on Mr. Cetin to respect his audience's intelligence and refrain from attempts at convincing participants that Turkey's 1974 invasion and continued occupation of 37 per cent of Cyprus is an indirect involvement.

He added that for 24 years Turkey has disregarded United Nations resolutions to withdraw its troops from the island republic, as well as to stop colonisation of the Turkish-occupied areas.

Tsohatzopoulos on official visit to Slovenia

National Defence Minister Akis Tsohatzopoulos leaves today on a two-day official visit to Slovenia at the invitation of his Slovenian counterpart Alojz Krapez.

The Greek minister is scheduled to meet with his Slovenian counterpart, Foreign Minister Boris Frlec and President Milan Kucan. He will also visit several Slovenian military bases and the Hellenic Navy frigate "Macedonia" which is docked at the port of Koper.

Foreign Minister Theodoros Pangalos visited Slovenia last week and signed a bilateral road transport agreement as well as a protocol of cooperation between the countries' foreign ministries.

Greece-US legal assistance agreement

Athens and Washington will from now on be able to mutually exchange information about crime investigations and crime prevention/interdiction after the pending signing of a bilateral agreement regarding legal assistance. According to sources, the treaty's text has already been composed. The treaty, however, contains certain limitations to information made available in cases involving military law, or when requested information is regarded as harmful to the security or vital interests of the country.

Joint Greek-US military exercises in Aegean

The first of two days of joint Greek-US military exercises ended yesterday following maneuvers involving the linking of forces, joint training and a commando assault on the small Aegean island of Agios Efstratios.

The exercise, code-named "Alexander the Great '98", is being carried out in the area of the Pagasitikos Gulf, Skyros and the northeast Aegean.

Greek forces taking part include the 32nd Marine Brigade, three squadrons of paratroopers, two special operations squadrons, "Huey" and "Apache" helicopters, a destroyer, five tank-landing craft, two transport carriers, a gunboat and 10-15 Hellenic Air Force fighters.

US forces include the amphibious operations batallion "Phibron 6", three landing craft and frogmen, troops of the 26th Batallion, two KC-130 and two AC-130 aircraft. The exercise will end with a landing operation on Skyros, expected to be obser ved by the Greek armed forces' leadership and US ambassador in Athens Nicholas Burns.

Romeos calls for attack on police corruption

Following an unprecedented barrage of criminal cases involving police officers, a public order ministry official said the ministry was determined to eradicate corruption.

In a statement issued upon receiving news of the yesterday's arrests of police officers in Athens and Hios, Public Order Minister George Romeos stated:

"The two new cases of law breaking that were detected today...discredit the entire body of honest police doing their duty adequatel..."

He also stressed that specific orders have been given to the chief of police to show no leniency towards offending police members, especially high-ranking officers.

Police commander arrested on blackmail charges

A Hios police commander was arrested late Monday evening minutes after he was handed a blackmail payment. The marked banknotes were found on him after his arrest, police said.

Giorgos Meretakis, the island's deputy police director and acting director for the past year, allegedly demanded 333,000 drachmas a piece from three businessmen in order to prevent regular inspections of their enterprises.

Greenpeace condemns genetically altered crops in Greece

The Greek branch of the environmental advocacy group Greenpeace yesterday accused the environment ministry of discrediting itself by "yielding" to pressure from agro-chemical companies in allowing the cultivation of genetically altered crops.

The organisation claims that the undersecretary responsible for issues concerning such products, Theodoros Koliopanos, had bowed to pressure from various multinationals, and by doing this, he was placing the environment and public health at risk. The ministry recently approved the experimental cultivation in Greece of two varieties of genetically altered cotton by petrochemical giant Monsanto.

According to an announcement issued by a Monsanto-hired ad agency, cultivation will begin in the prefectures of Larissa and Fthiotida during 1998.

ND deputy referred to party's ethics committee after fatal crach

Main opposition New Democracy (ND) deputy Costas Karaminas was referred to the party's ethics committee yesterday, following a fatal car crash early Monday morning that left one young woman dead.

According to police reports, the Samos area deputy , who was driving the vehicle, refused to take a breathalyser test, citing Parliamentary immunity shortly after the crash. The referral came after a decision by ND leader Costas Karamanlis.

The accident resulted in the death of 26-year-old teacher Elli Pilidou. She was riding in the back seat of the car and was thrown through the windscreen when it hit a pole.

Mr. Karaminas and Artemis Panousos, 32, a merchant, ND cadre and chairman of the municipal council of Karlovasi on Samos, were unhurt.

In a related development, Parliament President Apostolos Kaklamanis reiterated that he favoured the lifting of Parliamentary immunity in cases excluding deputies' political activities.

Greece, Portugal lead EU in traffic deaths

Greece and Portugal apparently hold the dubious honour of first place in the EU in terms of traffic-related fatalities, according to the Union's statistical service, Eurostat.

Eurostat reported that 195 people were killed in traffic accidents in Greece for every one million residents, while in Portugal the number of deaths per one million people was 217.

Deaths in traffic accidents rose by 20 per cent in Greece between 1989 and 1995, compared to a decline of 4 per cent in the rest of the European Union.

Eurostat also noted that Greece has 927 deaths per one million cars -- the EU average is 277 - while the same number for Britain is 64.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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