Athens News Agency: News in English (AM), 99-04-20

Athens News Agency: News in English Directory - Previous Article - Next Article

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

NEWS IN ENGLISH

ATHENS, GREECE, 20/04/1999 (ANA)

MAIN HEADLINES

• PM: Prolongation of the Kosovo crisis creates more problems
• Tsohatzopoulos press conference on Kosovo, related issues
• Meeting of Balkan nations' officials in Athens
• Greece comments on results of Turkish elections
• Papantoniou airs Greek concerns over Kosovo crisis to Blair
• Scientists on the lookout for fallout from NATO bombings
• Stocks plunge on fears of lasting Yugoslav war
• Alpha Credit Bank to seek Dr 120 bln capital boost
• Insurance companies show higher profits
• European business conference to be held in Athens
• Weather
• Foreign exchange

NEWS IN DETAIL

Prolongation of the Kosovo crisis is leading to further deterioration, as political means are now vital for resolution of the crisis, Prime Minister Costas Simitis stressed in New York yesterday.

"The prolongation of this crisis is leading to even more difficult and complicated problems. The alliance that has been formed against Yugoslavia wants the pacification of the region, but this pacification must be sought through different and various means, but under the specific conditions set by NATO.

"The United Nations must play a role. Mr. Annan must think which initiatives are possible for us to be able to arrive at a solution, a solution through political means. We believe that at the present moment political means are a must, and that the problem cannot be dealt with only through military means. We need diplomatic initiatives," he said after a round of talks with UN Secretary General Kofi Annan regarding Kosovo and Cyprus.

"If the bombings continue for a prolonged period, things will get even more complicated. NATO and the allies have set certain terms which are necessary for a resolution of the crisis.

The ethnic cleansing must stop,the refugees must return to their homes and Serbia must accept these terms".

He stressed that any solution should not include any change in borders.

"The Greek position, in common with that of the other NATO member-states, is that there must not be a change in borders. If there is a change in borders, then a new very difficult situation will be created in the Balkans. We must not complicate the problem," he emphasised.

The prime minister also discussed the Cyprus issue with Mr. Annan, and emphasised that this also needed to be tackled.

"The United Nations has entered into a commitment to deal with the problem, it must deal with it. Within this wider problem there is a narrower one, that of restricting military forces on the island. This problem needs to be tackled immediately.

"Cyprus made a step towards the end of last year, by deciding not to deploy the S-300 missiles. The US, other countries and the UN had provided assurances that there would be moves to demilitarise the island.

Responding to questions, Mr. Simitis said a meeting with Turkish President Suleyman Demirel on the sidelines of events marking the 50th anniversary of NATO's creation was possible but would not be extensive or lead to discussion of all issues.

He also emphasised that there was no link between the Kosovo crisis and Greek-Turkish relations.

Tsohatzopoulos press conference on Kosovo, related issues

National Defence Minister Akis Tsohatzopoulos reiterated yesterday that Athens will not participate in possible ground operations in Kosovo.

Mr. Tsohatzopoulos, who was speaking at a press conference, referred, among others, to the issue of allied forces passing through Greece and Greece's initiative for a political solution to the Kosovo crisis.

On the question of allied forces passing through the country, Mr. Tsohatzopoulos invoked Article 28 of the constitution by which Article 27 is covered which calls for a law to be issued in such a case.

"We insist that an exit exists which will lead to a mutual cessation of hostilities and to a course for a diplomatic solution. The part of this plan which we are proposing anticipates the safe return of refugees as a first step.

"Immediate measures which must be taken for this political solution to go ahead are: With Belgrade's consent, the initial creation of safe regions with an international protection force for the urgent handling of the refugees' return to their homes, or close to them, at least in the southern regions of Kosovo," he went on to say.

He further said Greece's contribution to refugee relief has gained international recognition.

Mr. Tsohatzopoulos noted that NATO placed exorbitant weight on military operations and did not proceed with relevant diplomatic initiatives and as a result the alliance's evaluation that the option of military operations would force Yugoslavia's political and military leadership to back down has proved to be wrong.

On the contrary, he added, NATO's operations have rendered the Serbian factor intransigent, which is continuing cleanup operations. He called on NATO to give outlets to Yugoslavia to enable it to choose between peace or war.

Meeting of Balkan nations' officials in Athens

Foreign Minister George Papandreou said yesterday that the government has commissioned from the Democritos atomic energy research centre to draw up a report on possible repercussions of NATO bombings in Yugoslavia for Greece and the greater region.

"They have told us verbally that there is no cause for alarm, at least with respect to radiation, but we shall wait for the written report," Mr. Papandreou said shortly before an informal meeting of senior foreign ministry officials of Balkan countries.

The environmental aspect of the Kosovo crisis was one of the issues discussed at yesterday's meeting. Other issues were the security of countries in the region - particularly the safeguarding of territorial integrity and respect for existing borders, de mocratisation - especially from the viewpoint of human and minority rights - and the economic development of the Balkans through infrastructure works with the contribution of the international community.

Officials from Bulgaria, the Former Yugoslav Republic of Macedonia (FYROM), Greece, Romania and Turkey are attending the meeting.

Mr. Papandreou said the international community should not treat the Balkans "in piecemeal fashion" whenever there is a crisis.

The conclusions of the meeting, Mr. Papandreou said, would be conveyed to Greece's EU partners at the next General Affairs Council on April 26-27 which will be attended by Alternate Foreign Minister Yiannos Kranidiotis.

Greece comments on results of Turkish elections

Athens yesterday expressed a hope that the new Turkish government to be formed after Sunday's general elections in the neighbouring country opt for "cooperation, friendship and peace in the region".

"It is Greece's wish that Turkey not find itself amid a period or phase of instability..." acting government spokesman Nikos Athanasakis said yesterday, adding that Athens hopes Ankara will follow democratic processes, as encouraged by the European Union, and concentrate on cooperation, friendship and peace in the region.

In a related development, Foreign Minister George Papandreou was quoted in an article published by the Ankara-based "Turkish Daily News" as saying that he was ready to do anything to support Greek national interests and assist in the improvement of relations with all neighbouring countries, and mainly, with Turkey. Finally, main opposition New Democracy party spokesman Aris Spiliotopoulos, commenting on the results of Sunday's general elections in Turkey, said "the rise of Mr. (Bulent) Ecevit to a leading role in the political life in Turkey, but also that of the 'Grey Wolves'...registers as a negative and alarming development: the rise of nationalism in Turkey."

Papantoniou airs Greek concerns over Kosovo crisis to Blair

National Economy and Finance Minister Yiannos Papantoniou yesterday expressed his concern to British Prime Minister Tony Blair over the continuation of military operations in the Balkans. The two men met on the sidelines of the European Bank for Reconstruction and Development's (EBRD) general assembly meeting in London.

Mr. Papantoniou is the current chairman of the EBRD's board, a rotating position.

During the meeting, Mr. Blair and Mr. Papantoniou discussed the reconstruction of the region following the war and agreed on a plan in line with the 1948 US sponsored "Marshall Plan", in which Greece will play an active role, both as an European Union member-state and as a member of the EBRD.

Mr. Papantoniou also noted that Greece pays a disproportionate cost due to the geographical proximity to the conflict.

Mr. Blair said he understood the Greek stance on the issue, but added that NATO will insist on its strategy until Yugoslav President Slobodan Milosevic accepts the terms set by the alliance.

Scientists on the lookout for fallout from NATO bombings

The atmosphere in northern Greece is being constantly monitored, while there are no indications of serious environmental repercussions to adjacent countries from NATO bombings of chemical and petrochemical plants in Yugoslavia, an atmospheric physicist sa id yesterday.

The Thessaloniki professor added that southerly winds that have been blowing over the past few days have acted as a shield.

Prof. Christos Zerefos, a professor of atmospheric physics at Thessaloniki's Aristotelion University, said that locally, things were bad, but "on an inter-state level, I don't think that we shall have severe repercussions".

Of course, he added, one could not know precisely what was burning from the bombings of the plants at Pancevo and Belgrade. toxic gases released had local repercussions," Prof. Zerefos said.

He said the weather conditions until now had been such that air from the bombed Serbian areas had reached Greece only a few times.

Although Mr. Zerefos was very cautious in his assessments, he noted that Greece's environmental connection with the environment of Serbia and the Kosovo province was "unfortunately such that one cannot rule out toxic substances from there being carried over here with relative ease".

Thessaloniki University professor of climatology Christos Balafoutis said there was no immediate risk of Greece's environment being polluted by the bombings of the petrochemicals plant at Pancevo, while for the time being indications were that the air currents were diverting the toxic cloud away from Greece.

Deputy Environment Minister Theodoros Koliopanos will raise the issue of the environmental effects of the war during his address to a UN conference in New York on viable development tomorrow.

Health Minister Lambros Papadimas said later that a meeting would be held at the environment ministry this morning with the participation of experts and environment and health ministry experts to discuss stepping up and coordinating checks.

There is also coordination between Greek services and those in the Former Yugoslav Republic of Macedonia and Bulgaria, he added.

Stocks plunge on fears of lasting Yugoslav war

Equity prices fell sharply yesterday hit by fears of a prolonged war in Kosovo and its impact on the economy.

The general index ended 4.87 percent down at 3,386.09 points, off the day's lows.

Turnover was 406.221 billion drachmas and volume 39,324,986 shares.

The total included the transfer of 14,281,660 shares worth 272.008 billion drachmas in Ionian Bank from Commercial Bank to Alpha Credit Bank, the winner of a recent international tender for the sale of a 51 percent stake in Ionian.

Traders said the failure of diplomatic initiatives to end the war in Yugoslavia and fears of an escalation of the war with the deployment of ground troops in Kosovo discouraged sentiment.

Early estimates by analysts have brought the impact of the Kosovo crisis on the economy to around 300 billion drachmas.

The analysts warn that the crisis could put a brake on the country's gross domestic product from a budgetary target of 3.7 percent growth this year to 3.2 percent.

In addition, they reported signs that inflation would drop only marginally below the 3.0 percent level in April from an earlier forecast of 2.6-2.7 percent.

This also had a negative impact on the market, as a slowdown in the rate of decline of inflation would also slow a drop in interest rates.

Banks fell 5.56 percent, Leasing dropped 5.0 percent, Insurance slumped 4.49 percent, Investment ended 2.38 percent down, Construction was 4.45 percent off, Industrials fell 3.99 percent, Miscellaneous ended 5.52 percent down and Holding dropped 3.10 pe rcent.

National Bank of Greece ended at 20,150 drachmas, Alpha Credit Bank at 20, 690, Ergobank at 25,895, Ionian Bank at 17,895, Titan Cement at 21,680, Hellenic Petroleum at 2,355, Intracom at 18,250, Minoan Lines at 7,225, Panafon at 7,620 and Hellenic Telecoms at 6,400.

Alpha Credit Bank to seek Dr 120 bln capital boost

Alpha Credit Bank will hold an extraordinary general shareholders' meeting on April 30 to seek approval for a 120 billion drachma share capital increase, the first following its purchase of a 51 percent stake in Ionian Bank.

The transfer of Ionian's equity from Commercial Bank - formerly its main shareholder - to Alpha Credit Bank was completed yesterday through the Athens Stock Exchange. All three banks involved are listed.

Ionian is expected to have merged into Alpha by the spring of 2000 at the latest.

Insurance companies show higher profits

Domestic insurance companies have posted a major rise in profits with premiums concentrated in the hands of ten groups, the Institute for for Economic and Industrial Research (IOBE) said yesterday.

In a report on the private insurance sector in Greece, IOBE said the sector was a rapidly growing market, accounting for nearly 1.8 percent of gross domestic product in 1996 from 1.1 percent in 1989.

The rate of increase was also steady. Premiums showed an 11.8 percent rate of growth in the same period, and life insurance accounted for 48.8 percent of the market.

However, the growth in private insurance is partly offset by difficulties.

Impeding progress is a lack of harmonisation between domestic legislation and European Union rules; inadequate supervision of insurance companies; unfair competition; and non-adherence to codes of practice.

European business conference to be held in Athens

The European Business Conference will hold its annual meeting in Athens on June 15-16.

The ECB's members are distinguished business leaders from Europe, the representatives of major business groups and former ministers.

Founded in 1997, the group is based in Germany and aims to reinforce political and economic cooperation within the framework of the Organisation for Security and Cooperation in Europe.

ECB's president is the head of Gazprom, the Russian natural gas corporation, and its vice-president a board member of Deutsche Bank.

Greece is represented by Prometheus Gas.

WEATHER

FOREIGN EXCHANGE

Tuesday's rates (buying)
U.S. dollar          303.235
Pound sterling       490.742
Japanese yen (100)   257.107
French franc          49.202
German mark          165.018
Italian lira (100)    16.669
Irish Punt           409.804
Belgian franc          8.001
Luxembourg franc       8.001
Finnish mark          54.282
Dutch guilder        146.456
Danish kr.            43.436
Austrian sch.         23.455
Spanish peseta         1.939
Swedish kr.           36.315
Norwegian kr.         39.003
Swiss franc          201.614
Port. Escudo           1.610
Aus. dollar          197.735
Can. dollar          204.848
Cyprus pound         558.079
Euro                 322.747

Athens News Agency: News in English Directory - Previous Article - Next Article