Athens News Agency: News in English (AM), 99-09-01

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

NEWS IN ENGLISH

Athens, Greece, 01/09/1999 (ANA)

MAIN HEADLINES

• Greece's long experience in Balkan problems valuable - Hombach
• London and Athens agree Turkey needs extra economic assistance
• Inner cabinet to finalise tax relief tomorrow
• Stock in Duty Free Shops handed over
• Attica Enterprises to get 38 pct of Strintzis Lines
• OTE posts 11 pct profit rise in H1
• Stocks nose down, held back by banks
• Key projects for completion soon
• No change in Greece's policy on EU funds to Turkey
• PM hosts reception in honour of athletics medallists
• Simitis-Djukanovic discuss developments in the Balkans
• Weather
• Foreign Exchange

NEWS IN DETAIL

The European Union's coordinator for the Balkan stability pact, Bodo Hombach, said on Tuesday that Greece could provide him with valuable assistance in his task because of the country's long experience in the region.

Mr. Hombach, accompanied by Foreign Minister George Papandreou, was speaking to reporters after talks with Prime Minister Costas Simitis.

"Greece can considerably assist me in my task because it has long historical experience in the Balkans, knows all the details, is a country which is well liked by the Balkan peoples, is familiar with their way of thinking and this knowledge is very important," Mr. Hombach said.

London and Athens agree Turkey needs extra economic assistance

Britain and Greece agreed that after the recent devastating earthquakes Turkey needs extra economic assistance, and that ways to achieve this will be decided after discussions with the European Commission and the other EU partners, Deputy Foreign Minister Yiannos Kranidiotis said after talks with British Foreign Secretary Robin Cook in London yesterday.

The two men also tackled Euro-Turkish relations, in view of Helsinki summit, and the Cyprus issue.

Inner cabinet to finalise tax relief tomorrow

The inner cabinet is due to meet tomorrow to finalise the details of tax relief promised by the government for 2000 along with cuts in indirect taxation to help lower inflation. According to sources, ministers will debate a tax-exempt limit for wage earners and pensioners on income earned this year of 2.0 million drachmas from the current 1.355 million drachmas. Prime Minister Costas Simitis is due to announce the government's changes to taxation in his annual economic policy speech in Thessaloniki on Saturday.

Stock in Duty Free Shops handed over

A block of shares representing 67 percent of Hellenic Duty Free Shops was transferred to Agricultural Bank of Greece, which is to resell the equity to unnamed private investors slated to take over management of the company, National Economy and Finance Minister Yiannos Papantoniou said yesterday.

The stock transaction, which it is hoped will lead to full privatisation, was effected through the Athens Stock Exchange where Hellenic Duty Free Shops is listed. Previous attempts to tender the firm fell flat.

Attica Enterprises to get 38 pct of Strintzis Lines

Attica Enterprises, operator of Superfast Ferries across the Adriatic, announced yesterday that it had secured the approval of shareholders in Strintzis Lines for the purchase of around 38 percent of stock in its former rival on the route.

In a stock swap, Strintzis' shareholders will receive a stake in the share capital of Attica Enterprises.

Attica is expected to receive five seats on Strintzis' 9-member board, and it will seek approval from its own shareholders to increase its five-member board to seven to include two members of the Strintzis family.

The two companies have a combined fleet of 16 vessels.

OTE posts 11 pct profit rise in H1

Hellenic Telecommunications Organisation (OTE), which is listed on the Athens bourse, yesterday reported a rise in first half consolidated profits before tax of 11 percent to 157 billion drachmas from 141 billion in the same period of last year.

Turnover totalled 511 billion drachmas, up from 430 billion drachmas in the first half of 1998, marking an increase of 18 percent.

OTE chairman Vassilis Rapanos told a news conference that contributing to the improvement in results were subsidiaries

Cosmote, a mobile phone operator, and Armentel in Armenia.

Stocks nose down, held back by banks

Equity prices ended yesterday's session slightly lower, reflecting weakness in the banking sector and despite persistent high liquidity in the market.

The general index ended 0.29 percent lower at 5,205.34 points, sharply off the day's lows of 5,154.48 points.

Blue chip stocks came under strong profit-taking. Construction stocks were particularly hit following a six-day rally which pushed the sector index 30 percent higher.

Turnover was a hefty 519.474 billion drachmas with 71,190,273 shares changing hands.

Key projects for completion soon

Eight major projects in the transport sector as well as the new Athens international aiport at Spata and a natural gas network will be completed in coming years, improving the country's image, National Economy and Finance Minister Yiannos Papantoniou said yesterday.

Detailing the government's regional development plan for 2000-2006, Mr. Papantoniou said that the transport sector would absorb 4.240 trillion drachmas.

No change in Greece's policy on EU funds to Turkey

The government said yesterday that there would be no change in the country's foreign policy regarding its objections to the release of funds allocated to Turkey under a European Union financial protocol.

"The government's position is that humanitarian aid should be given to Turkey and nothing more. We are following the same foreign policy and it would not be right to announce in advance what we intend to do at the forthcoming Council of Ministers," government spokesman Dimitris Reppas said.

PM hosts reception in honour of athletics medallists

Prime Minister Costas Simitis yesterday received in his office five members of the national athletics team who won gold, silver and bronze medals at the recent World Athletic Championships in Seville. Voula Tsiamita, Mirella Tzelili, Anastasia Kelesidou, Katerina Thanou and Costas Gatsioudis visited the premier's office early in the afternoon prior to the reception hosted by Mr. Simitis in their honour. The premier promised the state's support to sports, particularly in light of the Olympics 2004 that wil l take place in Athens and said "we believe in the need for sports, since sports contribute to a better life".

Simitis-Djukanovic discuss developments in the Balkans

Prime Minister Costas Simitis yesterday held a meeting with visiting Montenegrin President Milo Djukanovic, focusing on developments in the Balkans and Montenegrin-Serbian relations.

At the meeting Mr. Djukanovic reportedly presented his government's positions, which are coded in a platform emphasising the need for co- existence with Serbia, with a self-sufficient economic development in Montenegro regardless of Yugoslav President Slobodan Milosevic's duration in power.

Mr. Simitis on his part stressed that Greece is in support of Montenegro's efforts for economic development and he placed particular emphasis on the bilateral economic cooperation, reassuring the Montenegrin president that Greece will support his country in her efforts for democratisation and rapprochement with the European Union.

WEATHER

FOREIGN EXCHANGE

Wednesday's rates (buying)

(M.S.)

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