Athens News Agency: News in English (AM), 98-06-19

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

NEWS IN ENGLISH

Athens, Greece, 19/06/1998 (ANA)

MAIN HEADLINES

• Greece condemns latest Turkish military activity in Cyprus
• Holbrooke, Miller in Athens on Monday
• Tsohatzopoulos to attend NATO meeting in Vienna
• Commercial Bank shareholders' assembly to decide Ionian's future
• Kranidiotis meets with Croatian counterpart in Zagreb
• Map exhibition in Thessaloniki
• Student rally marred by violence
• Briefing on Thessaloniki International Trade Fair '98
• Greece gives EU updated economic convergence plan
• Greek stocks rise again buoyed by Ionian Bank sale hopes
• Government plans tax-free bonds to draw retail buyers, mutuals
• Parliament hears testimony in lottery dispute
• National Bank of Greece official urges corporate bonds
• EOT publication on ancient Greek theatres
• President Clerides receives AMAN delegations
• Weather
• Foreign exchange

NEWS IN DETAIL

Foreign Minister Theodoros Pangalos yesterday called the presence and overflights of Turkish fighter aircraft in occupied Cyprus as "illegal."

He added that Ankara had adopted this practice "precisely because it has enforced an occupation regime on half of Cyprus".

In Ankara, Turkish Foreign Minister Ismail Cem announced to reporters that two Turkish fighter planes were already at the Lefkonico airport in Turkish- occupied Cyprus, while another four were on their way.

According to a later CNA dispatch from Nicosia, six Turkish F-16s violated Cypriot airspace before landing at the site.

Turkey's state-run Anatolian news agency was quoted by Reuters as citing a statement by Turkish Prime Minister Mesut Yilmaz, warning that "Greek Cypriots would be the ones who suffer from an escalation in tension (on Cyprus)".

Holbrooke, Miller in Athens on Monday

Richard Holbrooke, nominated yesterday by President Bill Clinton as US ambassador to the United Nations, is due to arrive in Athens on Monday accompanied by State Department special coordinator for Cyprus Thomas Miller, the government announced yesterday.

Mr. Holbrooke, in his capacity as US presidential envoy on the Cyprus problem, recently visited the divided island republic in an unsuccessful effort to get the Greek- and Turkish-Cypriot communities back to the negotiating table.

Tsohatzopoulos to attend NATO meeting in Vienna

National Defence Minister Akis Tsohatzopoulos is scheduled to attend a high- ranking NATO meeting in Vienna starting tomorrow until June 24.

NATO Secretary General Javier Solana, the presidents of Poland, Romania, Latvia, Lithuania and Estonia, NATO members' representatives as well as Partnership for Peace (PfP) member-states' defence and foreign ministers will also participate.

According to Austrian officials the basic issue on the agenda is entitled "Challenge to the Security of a New NATO".

Commercial Bank shareholders' assembly to decide Ionian's future

Commercial Bank's general shareholders' assembly will convene today at a central Athens hotel to decide whether to privatise Ionian Bank, a Commercial subsidiary.

Meanwhile, the Federation of Bank Employee Unions (OTOE) called a 24-hour strike today and a rally to protest the bank's privatisation. According to press reports, the government has secured a necessary majority for the bank's privatisation, while the bank employees' unions, which oppose the move, hold less than 1 per cent of Ionian's shares.

Union officials are considering future actions, while as they noted all will be judged from the stance of the General Confederation of Workers of Greece (GSEE) and OTOE on the issue.

Kranidiotis meets with Croatian counterpart in Zagreb

Foreign Undersecretary Yiannos Kranidiotis held talks with his Croatian counterpart Ivo Sanader here yesterday, focusing on bilateral relations, recent developments in the wider region and the course of relations between the EU and Croatia.

On the question of increasing tension in Kosovo, both officials expressed concern over the situation, saying it may have unfavourable consequences for all countries in the region and confirmed their adherence to a peaceful solution to the crisis.

Referring to Croatia's European prospects, Mr. Kranidiotis expressed a hope that the country will soon be in a position to meet preconditions set by the EU in the framework of "regional rapprochement" in its relations with other countries in southeaster n Europe.

He also said that Athens encourages the safe and unimpeded resettlement of Serb refugees in their homesteads.

Map exhibition in Thessaloniki

Approximately 100 priceless maps will be on exhibition at the Governor's House in Thessaloniki until July 15.

The maps are loan from the National Library of France, the French Institute of Thessaloniki, the Chartographical Scientific Society of Greece and the Macedonia-Thrace ministry, as well as private collections

"The map is a product of civilisation equal to books," Aristotelian University Prof. Evangelos Livieratos said at the exhibition's opening.

The maps depict regions of Greece from the 16th century to date, while a segment of the exhibition is comprised of a stamp collection depicting the history of modern Greece.

It was also noted that the first map of the earth was created in antiquity by the Ionian Greeks on the western Asia Minor coast, which depicted a flat, round earth.

The exhibition will open in other cities around Greece as well.

Student rally marred by violence

A student rally in downtown Athens yesterday evening erupted into violence when a group of self-styled anarchists firebombed a police patrol car, causing severe burns to its driver, who was rushed to hospital.

Within minutes chaos broke out with riot police chasing rioters through the streets. A group of riot squad officers later seized a suspect a short distance away from the burning patrol car and started hitting him with police clubs, according to reports.

Groups of anarchists then started appearing from side streets around Kaningos Square and hurling dozens of firebombs at stores in the area and at parked cars. In the same way, they disappeared in sidestreets and reappeared later with fresh supplies of firebombs, eyewitnesses said.

Fifteen youths were arrested during the disturbances and were taken to police headquarters for questioning.

Briefing on Thessaloniki International Trade Fair '98

The Thessaloniki International Fair (TIF) will again feature all of its traditional aspects this year, focusing on turning the event into a meeting place for Greek and foreign business people as well as visitors from neighbouring countries.

The main highlights of this year's TIF, held every September, were presented yesterday by HELEXPO President and Managing Director Antonis Kourtis.

The trade fair's commercial and business advantages will be highlighted by its multi-faceted composition, which will be stressed by the second annual construction companies' conference.

In addition, an electronic equipment hall will be organised for the fourth consecutive year and will occupy three pavilions.

Mr. Kourtis said that there will also be a car exhibition.

Referring to the country set to be honoured at this year's event, Mr. Kourtis said that its selection is not by chance but constitutes the continuation of bilateral contacts at government and partnership level, adding that preconditions are being examin ed for HELEXPO to organise a Greek Enterprise Exhibition in one of China's major cities and preferably Shanghai.

Greece gives EU updated economic convergence plan

Greece yesterday gave the European Union an updated plan to align its economy with the 15-nation bloc, forecasting that all convergence targets will be met in 1999.

The 1998-2001 convergence plan given to the EU's Commission and monetary committee says that alignment criteria can be met by end-1998 except for consumer price inflation, which is feasible in 1999.

The government hopes to take Greece into the EU's economic and monetary union by January 1, 2001.

The plan, which updates a 1994 revised economic convergence programme, takes into account the repercussions of a 13.8 percent devaluation of the drachma on March 14 when the currency joined the EU's exchange rate mechanism as a stepping stone to EMU.

According to the updated plan, average consumer price inflation is expected to drop to 4.5 percent in 1998, 2.5 percent in 1999, 1.9 percent in 2000, and 1.7 percent in 2001.

The public sector deficit (general government) is expected to drop to 2.4 percent of gross domestic product in 1998, 2.1 percent of GDP in 1999, 1.7 percent in 2000, and 0.8 percent in 2001.

The public debt is predicted to total 107.8 percent of GDP in 1998, 105.8 percent in 1999, 102.5 percent in 2000, and 99.8 percent in 2001.

Interest rates on 12-month treasury bills should fall on average to 9.5 percent in 1998, 7.5 percent in 1999, 6.5 percent in 2000, and 5.5 percent in 2001.

Greek stocks rise again buoyed by Ionian Bank sale hopes

Greek equities ended higher yesterday for the third consecutive session reflecting optimism that shareholders of state-owned Commercial Bank of Greece will endorse the sale of a majority stake in Ionian Bank, its subsidiary.

The general index ended 2.0 percent higher at 2,475.12 points with sector indices scoring gains across the board. Trading was moderate with turnover at 50.3 billion drachmas.

The market sees the sale of Ionian Bank and protests by workers as a test of the government's grit in carrying out a wide-ranging privatisation plan to aid entry into the European Union's economic and monetary union.

Commercial Bank's shareholders' meeting, called to endorse Ionian's privatisation through the bourse, is due to be held today at a central Athens hotel.

Banks ended 2.36 percent up, Insurance rose 1.0 percent, Investment was 2.71 percent higher, Leasing soared 8.0 percent, Industrials increased 1.09 percent, Construction ended 2.38 percent up, Miscellaneous ended 1.76 percent higher and Holding rose 2.1 4 percent.

The parallel market index for small cap companies ended 1.43 percent higher. The FTSE/ASE 20 index jumped 2.15 percent to 1,479.54.

National Bank of Greece ended at 40,600 drachmas, Ergobank at 26,060, Alpha Credit Bank at 27,710, Ionian Bank at 13,910, Commercial Bank at 22,460, Delta Dairy at 4,010, Titan Cement at 19,000, Intracom at 11,550 and Hellenic Telecommunications Organis ation at 7,650.

Government plans tax-free bonds to draw retail buyers, mutuals

Parliament has adopted an amendment allowing the government to issue longer- term, tax-free state bonds that cannot be resold on the secondary market, the finance ministry said in a statement yesterday.

The ministry and the central bank have yet to set rules for the new non- transferable bonds of two or more years duration that will ensure that the original buyer retains them until maturity, the statement said.

The new bond was created to attract retail investors and mutual funds into longer-term state securities, it said.

Other bonds will continue to have their interest taxed under the same system.

The parliamentary amendment was voted through on Wednesday.

Parliament hears testimony in lottery dispute

A parliament committee yesterday heard testimony in connection with allegations of foul play in a scratch lottery contract between the state and the private Intracom Group.

During the hearing, the Group's owner, Socrates Kokkalis, told the committee that the lottery was operating smoothly and earnings were paid in full both to winners and to the state.

He denied that the company operating the scratch lottery had acted illegally or was avoiding transparency, and charged that his company was the target of unfair attack.

He also said that the state earned 37 billion drachmas annually from the lottery and predicted that the state's profits for the next five years would total 170 billion drachmas.

The "Eleftherotypia" daily newspaper has carried allegations of foul play in the deal. Its publisher and executive editor declined to appear before the committee, citing ethical reasons.

National Bank of Greece official urges corporate bonds

The Deputy Governor of National Bank of Greece, Nikos Karamouzis, yesterday urged the swift institutionalisation of corporate bonds along the lines of state securities.

Tax rules would have to be changed in order to equalise a new corporate bond market with existing tax on state bonds, Mr. Karamouzis said.

He was speaking on the final day of a conference on Greek financial markets organised by Delos Communications with FTSE International and the Athens Stock Exchange.

The sponsors were National Bank of Greece and Sigma Securities.

Among speakers at the conference were FTSE International's Managing Director Mark Makepeace; Paul Raphael, Managing Director of Investment Banking and Capital Markets at Merrill Lynch International; and Panayotis Gennimatas, Vice-President of the Europe an Investment Bank.

EOT publication on ancient Greek theatres

The Greek National Tourism Organisation (EOT) will publish a photographic album entitled "Greece-Cultural Heritage-Ancient Theatres" in eight languages.

Interested parties must apply to EOT to specify the number of copies they want and the language they prefer - among English, German, French, Italian, Spanish, Russian, Dutch and Greek.

President Clerides receives AMAN delegations

President of the Republic Glafcos Clerides yesterday received the delegations that took part in the 7th General Assembly of the Alliance of Mediterranean News Agencies (AMAN).

The Assembly was held in Limassol this week, during which the Cyprus News Agency took over the presidency of the Alliance until June 1999.

President Clerides briefed the delegates on the Cyprus problem and its latest developments and answered relevant questions.

Earlier, the delegations visited Nicosia Mayor Lellos Demetriades and the demarcation line.

The mayor told the delegates that "it is not an easy job to run a city that is divided".

He told them the municipal authorities contacted the Turkish Cypriot side in 1977 "to see how we could make life easier" for the whole of Nicosia.

He pointed out, however, that contacts have been broken off now, due to the obstacles posed by the occupation regime.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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