Thursday, 27 October 2011 Issue No: 3918
Greek Prime Minister George Papandreou (R)
chats with European Union President Herman van
Rompuy (L) on the sidelines of an EU Summit, in
Brussels on Wednesday evening. AMNA
PM Papandreou says now is the time for an end
to uncertainty and the crisis
BRUSSELS (ANA-MPA/V. Demiris)
Prime Minister George Papandreou, arriving at the EU summit here on
Wednesday evening, said that the challenge of the present summit is for the
euro to be saved and the common ideals in Europe to be consolidated.
Speaking to reporters, the prime minister said "the challenge we are facing
today is not only to save the euro, but to safeguard the ideals that we share
in Europe: Peace and cooperation, social cohesion and solidarity without
prerequisites between our peoples."
"On our part, the Greek people are making a superhuman effort for order to
be put in our home, to make our economy reliable, viable and prosperous, to
create a better future for our country. Now is the time for the European
leadership collectively to take decisions to put an end to the uncertainty, to
put an end to the crisis and to turn a page with the aim of a better future for
Europe."
36, TSOCHA ST. ATHENS 115 21 GREECE * TEL: 64.00.560-63 * FAX: 64.00.581-2
INTERNET ADDRESS: http://www.ana.gr * e-mail: anabul@ana gr * GENERAL DIRECTOR: ILIAS MATSIKAS
Thursday, 27 October 2011
Politics "What is most important is that good cooperation has been
created with the Greek authorities, we provide the technical
suppoort and every effort is being made for the implementation
ND blames poor gov't handling by Greece of the medium-term programme to be supported," he
for developments in debt crisis said.
Reichenbach noted as the "most important" need, Grece's return
Main opposition New Democracy spokesman Yiannis Mihe- to a growth and competitive orbit. For this reason, as he said,
akis on Wednesday said that the government's mistaken horizontal structural reforms are needed.
handling of events had led to the latest developments in As regards energy, Reichenbach said that since in the projects
Brussels concerning the management of Greece's debt crisis. He for the utilisation of solar energy cooperation is required with
urged the prime minister to not accept any concession of other partners, the task force's intervention is in the direction of
national sovereignty. seeking potential associates.
"The things now taking place in the absence of the prime On the question of structural funds, he said that there are
minister are those things that the government had proclaimed it difficulties of two types: the limited resources of the national
wanted to avoid when it accepted a succession of packages of contribution and the limited liquidity of the Greek banks. As
painful measures. We are waiting to see whether the lightening regards the first the Commission has proposed -and is already
of the debt will at least return us to where we were (in terms of in the process of the agreement's completion- the decrease of
debt and interest) in 2009 before all the sacrifices had begun. the Greek contribution by 5 per cent and the implementation of
We are also waiting to see how the liquidity of our economy the measure with a retroactive validity. As regards the second
and our social insurance funds will be ensured," he added. problem what is being examined is "the creation of the
Mihelakis stressed that ND expected the government to "defend possibility of funding small and medium-size enterprises with
the dignity of the Greeks and to not accept any discussion of an amount of 500 million euros, which will be given as a
conceding our national sovereignty". guarantee by the European Investments Bank and will provide
the necessary liquidity to the Greek banks to enable them to
loan small and medium-size enterprises."
LAOS leader: 'Haircut tantamount Responding to questions, Reichenbach said: "The Greek prime
to return to drachma' minister requested from the Commission its assistance. We are
here because our assistance was requested in the deepening of
A debt haircut of 60 percent will have the same impact as a the reforms that the Greek government wants to do. We are
return to the drachma, Popular Orthodox Rally (LAOS) leader hearing from the ministers what they want to do and we ask
George Karatzaferis said in statements to state-run ERA radio them where we can help them. The ministers are very well
on Wednesday. prepared and we organise the assistance that is pointed out to us
"If we returned to the drachma we would face an uphill climb by the Greek authorities."
of maybe 10 years. A 60 percent haircut will mean the same
misery. This is what Finance Minister Evangelos Venizelos Chinese officials visit Crete
does not want to admit," he said.
Karatzaferis attacked Prime Minister George Papandreou, The visiting Chinese delegation headed by National Committee
saying that he had "given all he had to give" and did not inspire of the Chinese People‟s Political Consultative Conference
confidence that he could lead the country out of its current Chairman Jia Qinglin on Wednesday arrived in the city of
spiral.. Iraklion, on the southern Aegean island of Crete.
The Chinese officials were received at “Nikos Kazantzakis”
Reichenbach on EU task force's International Airport by local authorities and a representative of
the Greek parliament.
role in Greece The Chinese delegation visited the archaeological site of
Knossos and in the afternoon will tour the Archaeological
The head of the European Commission's task force in Greece Museum of Iraklion.
Horst Reichenbach stressed in statements to reporters on Later this evening, the Chinese officials will host a special
Wednesday that his mission was to provide technical assistance event in honor of the local authorities that participated in the
to Greece's government, not to dictate or approve its policies. operation for the repatriation of thousands of Chinese nationals
"I neither co-sign nor ratify the decisions of ministers. I am who had fled riot-torn Libya last spring.
here at the request of the Greek prime minister to the European
Commission to contribute technically to implementing the
programme," he stressed. Ministers booed during Thessaloniki
He said his team's mission was to listen to the plans of the Liberation celebrations
ministers, ask in what way it might assist and provide the
organisational help requested to Greek authorities. The normally stately three-day rituals for 'OXI' day and
Thessaloniki's liberation from Ottoman rule got off to a rowdy
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Thursday, 27 October 2011
start on Wednesday. Angry crowds shouting anti-government State took into account the country's economic state and would
protests gathered outside the city's St. Demetrios cathedral uphold the laws.
during the celebration mass marking the 99th anniversary since Of the 400 million euros to be spent until 2014, 200 million
the city's liberation and honouring its patron saint, booing at euro will go to the "Urban Renewal" programme for improving
ministers representing the government and shouting abuse at buildings in rundown inner city residential districts, declining
the officials present. former industrial zones within cities and districts suffering from
Representing the government were National Defence Minister social, economic or environmental degradation.
Panos Beglitis and Deputy Infrastructure Minister Yiannis These will include the creation of common spaces such
Magriotis, the leadership of the armed forces, MPs, party playgrounds, improvements to pavements, cycle lanes and
leaders, local government officials and former Greek president building refurbishment, such as the reclamation of the
Christos Sartzetakis. abandoned Omonia hotel for use as a student hall of residence.
Another 45 million euro will go on work for the prevention of
Defence minister Beglitis on the angry reactions forest fires and another 100 million to create open spaces
by protesters in Thessaloniki within cities, compensating owners for real estate to be
converted into public land.
Defence Minister Panos Beglitis on Wednesday commented on The fund has already earmarked 36 million euro for
the jeering by angry anti-government protesters gathered expropriations of land in Rendi, central Athens, Egaleo,
outside St. Demetrios cathedral in Thessaloniki during a mass Koropi, Agious Anargyrous, Kamatero, Peristeri, Alimos, Nea
held on the occasion of the city‟s patron saint feast. Ionia, Haidari and outside Athens in Kalamata, Kastoria,
In statements he made during his visit to Nea Santa Army Kavala, Menemeni and Tripolis.
Camp in Kilkis, northern Greece, Beglitis said that he was A further one million euro will be spent to support protected
aware that he would become the target of protesters in areas such as national parks, forests and lakes.
Thessaloniki, adding that “we are going through difficult times
as a country but we should realize that we are all responsible
for its future.”
Survey records hurdles
Beglitis said “the country will have no future unless we take in business activity
serious and painful measures,” and will be isolated at “the
fringes of Europe and the greater region faced with even greater Constant changes and the lack of a stable tax, labor and social
risks.” insurance status, combined with high tax rates, is the number
The defence minister said that he has “no problem with the one problem in promoting business activity in the country, a
people‟s protests because he is a politician and a part of survey by Athens Chamber of Commerce and Industry (EBEA)
society”. said on Wednesday.
The survey was conducted in the period 3-24 October using a
Financial News sample of 1,104 enterprises. Commenting on the survey,
EBEA‟s president Constantinos Mihalos, said: “The business
world seeks a stable economic environment to be able to safely
Green Fund programmes at 400 million program its activities in the future. It is obvious that a cut in tax
following 5 pct ceiling on fund's spending rates is needed, but also to put an end to austerity policies
undermining market sentiment”.
Greece's environment ministry on Wednesday announced plans An 82 pct of respondents said high tax rates, high social
to invest 400 million euros from the "Green Fund" in 2011- insurance contributions and other duties are greatly inflating
2014 on improving the urban environment through parks and their total expenses, cutting their profit margins and
refurbishing buildings, as well as action to prevent forest fires. undermining business activity, the survey said.
Environment, Energy and Climate Change Minister George The payroll cost is considered a "medium importance" problem
Papaconstantinou said the 'Green Fund' currently has one by the majority of respondents, while responses for cost of
billion euro in its coffers, a sum expected to reach 1.6 billion commercial rents were evenly spread across the spectrum from
euro by the end of the year, chiefly due to funds raised through minor to highly important, whereas hurdles in accessing local,
measures to legalise buildings erected without planning national or community funding programs was a very significant
permission. problem for a majority of respondents. Lack of liquidity in the
He explained that based on a law recently passed by market was acknowledged as a problem undermining the
Parliament, the fund's spending could not exceed 5 percent of viability of enterprises as the banking system cut its funding
its reserves, while the remaining 95 percent could either remain source because of an economic crisis in the country.
in the fund's reserves or could be made available to the regular The survey said that bureaucracy was seen as a very significant
state budget through a joint ministerial decision. problem by the majority of enterprises and called for actions to
Asked whether this might lead to measures for semi-open simplify procedures in transactions between enterprises and the
spaces or unauthorised buildings being judged unconstitutional public sector. Corruption was another “very significant”
because the revenues were being spent to cover deficits rather problem in transactions between the private and public sectors,
than on the environment, the minister said that the Council of
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Thursday, 27 October 2011
the survey said, adding that tax evasion, smuggling and
informal trade were also cited as “very significant problems”.
Greek banks offering high interest rates
The survey noted that delays in promoting a privatization to retain deposits
program and opening up so-called closed professions were
additional causes of concern in business activity in the country. Greek banks are offering higher interests rates of up to 4.8 pct
EBEA said reduced purchasing power of consumers was also a for time deposits and other similar products in an effort to
very significant problem in their operations. attract back customers and stop a trend of shrinking savings
accounts recorded as a result of the economic crisis.
Greek trade balance deficit rises Banks are offering interest rates of up to 4.80 pct for savings
accounts of more than 5,000 euros corresponding to annual
0.4pct in August, but down 26.6pct interest of roughly 220 euros. The lowest interest rates are just
in 8-month period over 1 pct.
For savings accounts with more than 25,000 euros, interest
Greece's trade balance deficit, excluding oil products, increased rates can reach 5 pct corresponding to annual interest of 1,200
by 0.4 percent in August against the corresponding month in euros. The interest rates offered by different banks range from 2
2010, after several months of decline, but dropped 26.6 percent pct to 5 pct.
in the eight-month period of January-August over the same Bank customers should pay a special attention to the annual
period last year, according to provisional figures released by interest rate offered considering that in certain instances banks
the independent Hellenic Statistical Authority (ELSTAT) on offer high interest rates in the last quarter of a 12-month deposit
Wednesday. in an effort to attract customers. The average yield of the
ELSTAT, in a report, said that the deficit of the Trade Balance, product is much smaller after calculating the interest rates
excluding oil products, for the 8-month period from January to offered in the rest of the year.
August 2011 amounted to 11332.8 million euros (15824.7 Bankers confirm that savings deposits are absolutely safe
million dollars) in comparison with 15441.3 million euros regardless of the size of the “haircut” that will be decided for
(20288.5 million dollars) for the corresponding period of the the Greek debt.
year 2010, recording a drop, in euros, of 26.6%.
The total value of imports-arrivals, excluding oil products, in Cutbacks of 27 million euros to
August 2011 amounted to 2368.6 million euros (3387.1 million
dollars) in comparison with 2334.6 million euros (3001.6
parliament budget
million dollars) in August 2010, recording an increase, in euros,
of 1.5%. The cutbacks in the parliament‟s budget will amount to 27
The total value of exports-dispatches, excluding oil products, in million euros in the fiscal year 2012, according to a statement
August 2011 amounted to 1098.4 million euros (1580.1 million issued on Wednesday by parliament president Filippos
dollars) in comparison with 1069.8 million euros (1383.6 Petsalnikos.
million dollars) in August 2010, recording an increase, in euros, A relevant draft law, to be submitted on Thursday to the
of 2.7%. parliamentary Standing Committee on Economic Affairs and be
The deficit of the trade balance, excluding oil products, in discussed next week, provides for up to 170.972 million euros
August 2011 amounted to 1270.2 million euros (1807.0 million in credit, reduced by 27 million euros compared to 2011.
dollars) in comparison with 1264.8 million euros (1618.0 A total of 70 pct of the cutbacks correspond to reductions in
million dollars) in August 2010, recording an increase, in euros, MP and parliament personnel spending and 30 pct to reductions
of 0.4%. in operating expenses (transport, public relations, procure-ents,
The total value of imports-arrivals, excluding oil products, for leasing, etc.)
the 8-month period from January to August 2011 amounted to The cutbacks meet the Medium-Term Fiscal Strategy goal for
21571.0 million euros (30318.8 million dollars) in comparison the years 2013 -2015.
with 24630.7 million euros (32387.1 million dollars) for the
corresponding period of the year 2010, recording an increase, in GenSec for sports meets with visiting
euros, of 12.4%.
The total value of exports-dispatches, excluding oil products,
South Australia MP
for the 8-month period from January to August 2011 amounted
to 10238.2 million euros (14494.1 million dollars) in Sports tourism was the main topic under discussion in
comparison with 9189.4 million euros (12098.6 million dollars) Wednesday's meeting between Greece's general secretary for
for the corresponding period of the year 2010, recording an sports Panos Bitsaxis with visiting Liberal party MP in the state
increase, in euros, of 11.4%. of South Australia Terry Stevens, a shadow minister for sports,
recreation, tourism and gambling.
They also discussed a number of sports issues with a special
emphasis on cricket and the ongoing cooperation between the
Hellenic Cricket Federation and the Greek-Australian
community.
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Thursday, 27 October 2011
Greek stocks end 2.35 pct higher Titan: 14.00
Greek stocks ended higher in the Athens Stock Exchange on Greek bond market closing report
Wednesday, as investors bet on the most favourable scenario
coming from an EU Summit in Brussels later in the day. The yield spread between the 10-year Greek and German
Domestic investors reappeared in the market late in the session, benchmark bonds remained unchanged at 15.99 pct in the
while foreign investors remained on the sidelines. Investors domestic electronic secondary bond market on Wednesday,
discounted a haircut of around 50 pct on Greek debt while they with the Greek bond yielding 18.02 pct and the German Bund
were encouraged by speculation that a recapitalization of Greek 2.03 pct. There was no turnover in the market.
banks could be made using preferred and not ordinary shares. In interbank markets, interest rates were largely unchanged.
The composite index of the market rose 2.35 pct to end at The 12-month rate was 2.12 pct, the six-month rate was 1.78
773.81 points, with turnover remaining a low 41.154 million pct, the three-month rate 1.58 pct and the one-month rate 1.36
euros. The Big Cap index jumped 2.90 pct, the Mid Cap index pct.
ended 0.73 pct higher and the Small Cap index rose 1.97 pct.
Marfin Popular Bank (3.68 pct), Cyprus Bank (0.95 pct) were
the only blue chip stocks to end lower, while Hellenic Postbank
ADEX closing report
(9.71 pct), National Bank (8.43 pct), Eurobank (6.93 pct) and
OPAP (5.74 pct) were top blue chip gainers. The December contract on the FTSE 20 index was trading at a
The Commerce (5.72 pct), Travel (5.37 pct) and Banks (3.86 discount of 2.0 pct in the Athens Derivatives Exchange on
pct) sectors scored the biggest percentage gains of the day. Wednesday, with turnover shrinking to 17.371 million euros.
Broadly, advancers led decliners by 104 to 59 with another 21 Volume on the Big Cap index totaled 7,419 contracts worth
issues unchanged. Xylemporia (30 pct), Spider (27.52 pct) and 10.967 million euros, with 21,009 short positions in the market.
Nexans (21.62 pct) were top gainers, while Moda Bagno (29.17 Volume in futures contracts on equities totaled 39,355 contracts
pct), Ilyda (24.75 pct) and Akritas (20.97 pct) were top losers. worth 6.404 million euros, with investment interest focusing on
National Bank‟s contracts (22,817), followed by Eurobank
(1,899), OPAP (783), Piraeus Bank (1,394), Alpha Bank
Sector indices ended as follows:
(7,629), Cyprus Bank (939), ATEbank (1,513) and Mytilineos
Insurance: +1.91%
(396).
Industrials: +1.29%
Commercial: +5.72%
Construction: +3.54% Foreign Exchange rates - Thursday
Oil & Gas: +1.44%
Personal & Household: +1.57% Reference buying rates per euro released
Raw Materials: +0.46% by the European Central Bank:
Travel & Leisure: +5.37% U.S. dollar 1.413
Technology: +0.49% Pound sterling 0.884
Telecoms: +1.82% Danish kroner 7.556
Banks: +3.86% Swedish kroner 9.233
Food & Beverages: +0.93% Japanese yen 107.26
Health: +0.90% Swiss franc 1.237
Utilities: +0.72% Norwegian kroner 7.795
Chemicals: +4.36% Canadian dollar 1.432
Financial Services: +1.56% Australian dollar 1.362
The stocks with the highest turnover were National Bank, General News
OPAP and Bank of Cyprus.
Selected shares from the FTSE/ASE-20 index
Greeks needing food aid on the rise,
closed in euros as follows: Doctors of the World report
Alpha Bank: 1.04
Public Power Corp (PPC): 6.05 Hunger is increasingly becoming a problem among poor Greek
HBC Coca Cola: 13.70 households, with more and more families unable to make ends
Hellenic Petroleum: 6.36 meet, the Greek branch of the humanitarian aid organisation
National Bank of Greece: 1.80 'Doctors of the World' warned in a press conference on
EFG Eurobank Ergasias: 0.71 Wednesday.
OPAP: 7.19 It said volunteer doctors working at the organisation's four
OTE: 3.35 health centres in Athens, Perama, Thessaloniki and Hania were
Bank of Piraeus: 0.25
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Thursday, 27 October 2011
reporting an increase in the number of Greeks seeking their aid local bank branch. The proceeds from the robberies were
and also a rise in those asking for food. 'laundered' through the purchase of cars and other assets.
"The number of Greeks seeking medical attention from us has During the raids on three homes belonging to the suspects,
shot up from 6-7 percent last year to 30 percent this year, out of police discovered a Makarov gun with 20 cartridges, a replica
a total of 30,000 people seen in the past year. They are elderly pistol, two hunting knives, two walkie-talkies and four private
people, those on small pensions, young unemployed, people cars. One home also had a greenhouse in the back garden with
with chronic diseases who come in great anxiety, often with a eight cannabis plants that were uprooted.
hospital prescription in hand, because they are unable to pay for
their contribution. What shocked us most, however, is that EU reverts to winter time on Sunday
many now ask us for food," said a representative of DoW.
The aid organisation announced its decision to launch a new
Greece and the entire EU return to winter time on Sunday,
campaign for food that will culminate at Christmas, with a tree
when clocks at 4:00 a.m. will turn back one hour to 3:00 a.m.
built out of tins of condensed milk in Kotzia Square in central
Winter time will revert back to summer time on the last Sunday
Athens.
of March 2012.
"For us poverty has a face. It is up to us not to allow the winter
of 2012 to be a killer winter," DoW representatives stressed.
They noted that the drastic reduction in funds to the public Weather Forecast
sector due to cuts and the private sector due to the economic
crisis had greatly increased DoW's need for funding to buy Cloudy on Thursday
antibiotics, medical supplies, antipyretics and also vaccines for
children, warning that the rising number of households without Cloudy weather and northerly winds are forecast in most parts
insurance increased the spectre that virtually 'forgotten' diseases of the country on Thursday, with wind velocity reaching 3-8
might return to Greece. beaufort. Temperatures will range between 8C and 22C.
Slightly cloudy in Athens, with northerly 5-8 beaufort winds
Migrant smuggler arrested in Evros, and temperatures ranging from 12C to 18C. Same in
Thessaloniki, with temperatures ranging from 10C to 16C.
7 non-legal migrants intercepted
A 37-year-old Turkish migrant smuggler was arrested and
The Wednesday edition of Athens'
seven illegal migrants were detained on Wednesday in the dailies at a glance
Lavara region of Evros Riiver, which marks the Greek-Turkish
border. The final negotiations on the Greek debt 'haircut' at
The arrest of the smuggler also averted the smuggling into Wednesday's crucial EU Summit, mostly dominated the
Greece of another 20 illegal migrants who were waiting for him headlines on Wednesday in Athens' newspapers.
on the opposite Turkish coast to be transported to Greece,
according to police. ADESMEFTOS TYPOS: "Government playing hide and seek
The Turkish migrant smuggler, who has a file with the Greek with snap elections".
police on older migrant running charges, will appear before a
prosecutor in nearby Orestiada. AVGHI: "Haircut with 'plaster' for the next twenty years".
A total of 190 migrant smuggles have been arrested in the
region since the beginning of the year. AVRIANI: "Rating firms bankrupting Greece".
Thessaloniki police catch gang suspected ELEFTHEROS TYPOS: "Layoffs in ministries via the
abolition of organic positions".
of Aridaia heist
ELEFTHEROTYPIA: "Bras de fer with bankruptcy".
Thessaloniki police on Wednesday announced the dismantling
of a five-member gang suspected of a series of armed robberies ESTIA: "The culmination of the failure".
in northern Greece over the past 11 months, including the
attack on the Aridaia Post Office chief last December. ETHNOS: "Euro „dizziness‟ from German Chancellor Angela
During simultaneous police operations in Thessaloniki and Merkel's vetoes".
Pella, police arrested two 27-year-old Greeks believed to be the
gang leaders, as well as two Greeks suspected of peripheral IMERISSIA: "EU summit at risk of turning into a fiasco".
involvement, aged 24 and 35 years old, respectively.
A fifth Greek man is being sought for involvement with the KATHIMERINI: "Everything open up to the final hour".
gang's activities.
Police believe the gang was behind the hold-up of the Aridaia NAFTEMPORIKI: "Final negotiations on the Greek haircut".
post office chief as he was taking 56,000 euro to deposit in the
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Thursday, 27 October 2011
RIZOSPASTIS: "State and plutocracy should pay for the loss".
TA NEA: "Dramatic bargaining over the haircut".
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