Athens News Agency: News in English (AM), 98-08-11

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

NEWS IN ENGLISH

Athens, Greece, 11/08/1998 (ANA)

MAIN HEADLINES

• Gov't to issue Balladur-type bonds to aid privatisations
• Noted architect, restorer of Erechtheion, dies
• Private Jospin-Simitis meeting
• Calvin Klein event at Herod Atticus
• Government to remove tax on repos
• Titan Cement, Holderbank plan to buy out FYROM cement firm
• EFG Eurobank buys fresh stake in Ergobank
• Greek stocks finish lower, shrug off 7.0 pct sale of Ergobank
• Bomb blast at horse race track
• Weather
• Foreign exchange

NEWS IN DETAIL

The Greek state is ready to begin issuing Balladur-type bonds in the second half of September in order to aid a privatisation drive by using the equity- convertible debt paper.

Issue of the bonds is allowed for the first time under an amendment the finance ministry tabled in Parliament yesterday.

Holders of the bonds will be able to exchange them on expiry for shares in state firms and banks slated for privatisation from Jan. 1, 1999, the ministry said in a statement. The bonds will be issued both in drachmas and in foreign currency.

According to ministry sources, the government is planning to start by issuing three- and five-year bonds in drachmas, Ecu and German marks.

Interest on the bonds, which are negotiable on domestic and foreign markets, will be set shortly before issue. Returns will be tax-free if the original investor keeps the paper until expiry. Buyers will then opt for encashment or equity conversion.

Noted architect, restorer of Erechtheion, dies

One of the foremost architects behind the restoration of the Temple of Erechtheion on the Acropolis died yesterday at the age of 49.

Alekos Papanikolaou, a graduate of the Athens Polytechnic, received the Europa Nostra Award for his work on the Acropolis.

Culture Minister Evangelos Venizelos expessed his sorrow over Papanikolaou's death.

Private Jospin-Simitis meeting

French Prime Minister Lionel Jospin, on a holiday in Greece with his wife, will have a private meeting Tuesday with Greek counterpart Costas Simitis on the island of Siphnos, where the latter is vacationing.

Mr. Jospin, who arrived in Greece on July 31, is holidaying on the small Cyclades island of Antiparos.

According to reports, a helicopter will fly to Antiparos to bring the Jospins to Siphnos.

Sources said there was no agenda for the talks, which would last most of the day, while Mr. Jospin was due to return to Antiparos in the evening by helicopter. The same sources said Mr. Simitis and Mr. Jospin would have "political consultations" on Aug.

31 in Athens, where the two prime ministers will take part in a one-day event, entitled "forces of the left in front of the challenges of the year 2000".

Another foreign leader sceduled to privately visit Greece sometime around mid-August is Austrian Chancellor Viktor Klima.

Calvin Klein event at Herod Atticus

The culture ministry finally approved a petition submitted by the firm "Zoobidon et communications" for use of the Herod Atticus Theatre by internationally renowned fashion designer Calvin Klein.

The culture ministry overruled a Central Archaeological Board (KAS) decision, ruling that the site will not be adversely affected by the planned fashion exhibition in the autumn.

Revenues from the show will go toward the construction of the new Acropolis museum.

Government to remove tax on repos

The finance ministry submitted an amendment to parliament yesterday scrapping a 15 percent tax on bank-to-customer repurchase agreements (repos).

Imposition of the tax in 1995 led to decline in repo deals, which involve the repurchase and resale of state debt paper.

"The measure is expected to revive repo transactions," the ministry said in a statement.

Titan Cement, Holderbank plan to buy out FYROM cement firm

Titan Cement Company yesterday informed the Athens Stock Exchange that press reports were true claiming it planned to forge a strategic alliance in order to buy out a cement company in the Former Yugoslav Republic of Macedonia (FYROM).

Titan, a blue chip on the bourse and the only wholly Greek-owned cement maker, said it was forging a strategic alliance with Holderbank of Switzerland to acquire A.D. Cementamica USJE in FYROM.

The buy-out would make the direct investment one of Greece's largest in the neighbouring country, a landmark in the gradual establishment of closer economic and commercial ties between the two states.

A.D. Cementamica USJE has sales of 650,000 tonnes of cement annually and capacity of one million tonnes.

EFG Eurobank buys fresh stake in Ergobank

EFG Eurobank, a member of Latsis Group, yesterday acquired a roughly 7.0 percent stake in Ergobank through the Athens Stock Exchange, buying 1,788, 566 shares from foreign institutional investors.

EFG Eurobank now controls around 20 percent of listed Ergobank's share capital and has become its biggest single shareholder after purchasing a 12 percent stake from key shareholder Lazaros Efremoglou a few weeks ago. The share purchases were made for EFG Eurobank by its parent company, Luxembourg-based Consolidated Eurofinance Holdings.

Announcing the plan in a statement, the EFG Bank Group expressed its confidence in Ergobank's board and the bank's prospects.

Analysts said the statement signalled that Eurobank would not attempt to change Ergobank's management.

The two banks are expected to bid jointly in a tender through the bourse to buy state Ionian Bank on August 24.

Greek stocks finish lower, shrug off 7.0 pct sale of Ergobank

Greek equities ended the first trading session of the week lower on the Athens Stock Exchange yesterday in the wake of a decline in international markets.

Dealers said the market ignored news of the sale of 1,788,000 shares in blue-chip Ergobank for 58.5 billion drachmas, representing 7.0 percent of the target bank's share capital.

Buying the stake was EFG Eurobank, which is not listed on the bourse. It bought a 12 percent stake in Ergobank early in the summer.

The Athens general index ended 0.81 percent lower at 2,694.57 points. Trade was scant with turnover at 85.6 billion drachmas, fuelled mostly by the block trade in Ergobank.

Sector indices were mixed. Banks fell 1.10 percent, Leasing eased 0.78 percent, Insurance rose 0.07 percent, Investment was 0.83 percent up, Industrials fell 0.49 percent, Construction was 1.10 percent off, Holding increased 1.54 percent and Miscellaneo us eased 0.62 percent.

The parallel market index for small cap companies fell 0.08 percent, and the FTSE/ASE 20 index ended 1.08 percent lower at 1,638.59 points.

Decliners led advancers by 135 to 96 with another 26 issues unchanged.

Bomb blast at horse race track

A home-made explosive device went off at the Athens horse track in Faliro yesterday, causing extensive damage to a restaurant and offices. No casualties were reported.

The powerful blast at the race track also shattered windows and damaged three vehicles parked outside the building. The facility was closed at the time.

There was no advance warning or claim of responsibility for the attack.

WEATHER

FOREIGN EXCHANGE

(L.G.)

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