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Athens News Agency: Daily News Bulletin in English, 15-05-28

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

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

Thursday, 28 May 2015 Issue No: 4966

CONTENTS

  • [01] PM Tsipras: 'We're on the final stretch; we're close to a deal'
  • [02] Brussels Group meeting starts with delay
  • [03] Negotiations with Brussels Group expected to resume on Wednesday
  • [04] Procedures to draw up a deal have started at Brussels Group - gov't sources
  • [05] 'Yes' to an agreement with the creditors, but 'no' to any agreement, SYRIZA parliamentary spokesman says
  • [06] The allegedly 1.8 bln euro fiscal gap is part of the effort to impose austerity, FinMin Varoufakis says
  • [07] Greece among the main issues to be discussed in G7 summit
  • [08] Berlin did not rule out the Greek issue to be discussed at Merkel, Hollande, Juncker meeting
  • [09] There has already been great flexibility in Greece's case, German finance ministry replies to Lew comment
  • [10] Creditors don't share government's optimism about deal, ND spokesman says
  • [11] Labour Minister: No cuts in supplementary pensions
  • [12] PM Tsipras to meet Iranian foreign minister in Athens on Thursday
  • [13] European Commission presents plan for relocation of 40,000 asylum seekers from Greece, Italy
  • [14] European Commission asks Belgium to receive 546 migrants from Greece, 818 from Italy
  • [15] The current situation is far beyond the capabilities of the Asylum Service, its head tells ANA-MPA
  • [16] President Pavlopoulos receives Foreign Minister Nikos Kotzias
  • [17] FM Kotzias to meet Iran's FM Zarif on May 28
  • [18] PM Tsipras and five European officials comment on 2014 European Elections in documentary
  • [19] Greek foreign ministry criticises Albanian PM for statements on hydrocarbon research
  • [20] Potami party says 'alarmists' are within the government camp
  • [21] IMF should stop attacking pension and worker rights in Greece, ITUC says
  • [22] ECB keeps Greek banks' ELA ceiling stable at 80.2 bln euros
  • [23] Outflow of deposits from Greek banks stabilising, sources say
  • [24] Greek betting firm OPAP reports 16.9 pct rise in net profit for Q1
  • [25] Piraeus Bank reports net profit of 23 mln euros in Q1?
  • [26] Mytilineos Group says turnover down 6.6 pct in Q1?
  • [27] Ionian Hotels reports lower Q1 results?
  • [28] Greek stocks end sharply higher
  • [29] Greek bond market closing report
  • [30] ADEX closing report
  • [31] Greece mulling flexible legal package, incentives to attract foreign movie productions
  • [32] UEFA vice president Lefkaritis over FIFA arrests
  • [33] Greek courts refuse extradition of Turkish national on warrant issued by Germany
  • [34] Intercity bus overturns, one woman slightly injured
  • [35] Rain on Thursday
  • [36] The Wednesday edition of Athens' dailies at a glance Politics

  • [01] PM Tsipras: 'We're on the final stretch; we're close to a deal'

    Prime Minister Alexis Tsipras on Wednesday expressed optimism that there will soon be positive results in the ongoing negotiations between Greece and its lenders adding that a deal is imminent and will benefit the economy.

    "We're on the final stretch; we're close to a deal. This agreement will be positive for the Greek economy...it will redistribute weights and I believe we will be able to present more details soon," he told journalists after a meeting of the political negotiation group at the finance ministry.

    He said there's no risk for wages, pensions, banks and bank deposits and called on Greeks to "shut their ears to alarmists" because, as he said, there might be pressures and people who will try to create a false sense of danger.

    "Today and tomorrow wages and pensions will be paid in time, while for the past four months, some people keep arguing through alarmist and fake reports that the Greek economy is collapsing."

    Commenting on the negotiations, the premier noted there are differences among the country's creditors and different policy considerations among the euro area countries.

    "I want to reassure the Greek people that we're negotiating by securing in advance conditions of security and stability for the Greek economy. I'm positive we will soon have positive results," he added.

    [02] Brussels Group meeting starts with delay

    BRUSSELS (ANA-MPA/M. Aroni)

    The Brussels Group meeting started with a delay in Brussels on Wednesday due to the technical failures at Belgian airports which delayed the landing of the aircraft carrying the Greek negotiating team.

    According to Greek sources, talks with the country's lenders are entering the phase of drafting the agreement which, if things go as planned, should be secured by the beginning of next week. The main responsibility for drafting the deal lies with the heads of the Greek negotiation team in Athens, the same sources said.

    EU sources have said progress has been achieved but a few issues remain open, the most important of which are the fiscal targets, the primary surplus and pensions, as the Vice-President of the European Commission Valdis Dombrovskis said in an interview.

    Asked on Wednesday whether the writing of a deal has started, Dombrovskis said intense negotiations are continuing to achieve a staff-level agreement, but "we're not there yet', according to a Reuters report.

    [03] Negotiations with Brussels Group expected to resume on Wednesday

    BRUSSELS (ANA-MPA/M. Spinthourakis)

    Greek government's deliberations with the representatives of the institutions within the framework of the Brussels Group will resume on Wednesday, even with a small delay. The delay is attributed to the fact that due to an electrical failure at Brussels airport the traffic over the Belgian airspace was interrupted and the Greek negotiatiors along with the other passengers of the early morning flight from Athens had to land at Dusseldorf airport in Germany.

    Greek diplomatic sources estimate that an agreement on principle can be reached within the next seven days in order the issue to be tabled for debate on eurozone ministers' level. The fiscal issues and particularly the average increase of VAT percentages are, according to information, on the focus of the deliberations. On its part the Greek side rejects whatever discussion regarding cuts on pensions and salaries in the public sector, starting from the armed forces.

    This picture was confirmed on Wednesday by European Commission Vice-President Valdis Dombrovskis who underlined that lots of time has been lost and the time limits for an agreement have been reduced significantly.

    [04] Procedures to draw up a deal have started at Brussels Group - gov't sources

    At the Brussels Group on Wednesday, procedures to draw up a staff-level agreement between the Greek government and the country's institutional partners are beginning, government sources said, adding that the prime minister is in continued contact with EU leaders to facilitate an agreement.

    The same sources said bank deposits and operations are secured, while the Bank of Greece did not ask the European Central Bank to increase in the Emergency Liquidity Assistance (ELA) lending cap for Greek banks above the current 80.2 billion euro limit.

    The framework of the deal will include:

  • Low primary surpluses for the first few years

  • Measures that do not aggravate recession and which will also have redistributive orientation. There will be not wage or pension cuts

  • Reforms of VAT rates which will make it redistributive character and collectability. There's no scenario for measures for 1.8 billion euros

  • Long-term solution for debt relief and a growth package

    The same sources said there will be reforms in pensions to limit early retirement without affecting those who have acquired rights as well as a unification of social security funds. The government pledges to start a dialog and conduct an actuarial study on the sustainability of the pension system without cutting pensions.

    A problem remains with the differing stance among the institutions, the sources said. If an agreement by the IMF was not required, the deal would have closed by now, they noted. While the European Commission and the ECB want a deal by the end of May, the IMF notes that "there has to be a comprehensive approach and not a quick and sketchy job."

    The government sources also said that the "government has done its duty, has shown in practice that it wants a realistic agreement and it's time for the institutions to assume their historic responsibilities towards Greece and the common European vision."

    [05] 'Yes' to an agreement with the creditors, but 'no' to any agreement, SYRIZA parliamentary spokesman says

    "Yes" to an agreement with the creditors, but "no" to any agreement, SYRIZA parliamentary spokesman Thanassis Petrakos said on Wednesday.

    Speaking to MEGA TV, Petrakos underlined that "we are working so that a mutually beneficial agreement is reached. We want an agreement because it is in the interest of all sides, but we are not willing to sign any agreement as it was said in SYRIZA''s central committee. We are in favour of a deal that would help the country exit the crisis, that will open the way for economic recovery. Therefore, we say 'yes' to an agreement, but 'no' to any agreement."

    Regarding the payment of June 5 installment to the IMF, he said that "only with the threat of non-payment did everyone start rushing."

    [06] The allegedly 1.8 bln euro fiscal gap is part of the effort to impose austerity, FinMin Varoufakis says

    European Commission president Jean-Claude Juncker's statement for a 1.8 billion euro VAT deviation between Greece and its partners is an effort from the creditors' side to impose further austerity on Greece, Finance Minister Yanis Varoufakis said on Wednesday.

    Upon its arrival at the Finance ministry, Varoufakis said that "speculations on a 1.8 billion euro fiscal gap is part of the troika's effort to impose further austerity. We have our doubts on that. We think there is no such fiscal gap."

    He also said that "the only reason why the issue of tax on bank transactions has not been raised is our strong opposition and my personal opposition."

    [07] Greece among the main issues to be discussed in G7 summit

    German Finance Minister Wolfgang Schaeuble and Bundes-bank President Jens Weidmann host their G7 counterparts - Britain, France, Germany, USA, Japan, Italy, Canada - in Dresden in May 27-29.

    Among the main issues to be discussed will be Greece although no decisions are expected to be taken. The main topic, however, is the global economic situation after seven years of crisis and the efforts for sustainable growth as well as the improvement of cooperation in tax issues.

    IMF chief Christine Lagarde, Workd Bank president Jim Yong Kim, ECB head Mario Draghi, OECD secretary general Angel Gurria, Eurogroup president Jeroen Dijsselbloem, EU Commissioner Pierre Moscovici are among the officials to attend the meeting.

    [08] Berlin did not rule out the Greek issue to be discussed at Merkel, Hollande, Juncker meeting

    BERLIN (ANA-MPA/ F. Karaviti)

    German government spokesman Steffen Seibert did not confirm or deny the possibility the Greek issue to be discussed on the sidelines of the meeting that will take place on Monday in Berlin between German Chancellor Angela Merkel, French President Francois Hollande and European Commission President Jean Claude Juncker. He clarified that in the meeting will also participate representatives of European multinational companies (European Roundtable of Industrialists) and will focus on the world competitiveness and the digital market underlining that Greece is negotiating the programme with the institutions.

    [09] There has already been great flexibility in Greece's case, German finance ministry replies to Lew comment

    BERLIN (ANA-MPA/ F. Karaviti)

    Responding to a statement by U.S. Treasury Secretary Jack Lew earlier on Wednesday in London, German finance ministry spokesman Martin Jaeger noted that "the greatest flexibility" has already been shown regarding Greece's programme.

    Jaeger noted that the information reaching Berlin concerning the progress in the ongoing negotiations was not compatible with that emerging from Athens. He also stressed that the issue of Greece might well be discussed at the G7 meeting in Dresden but was not on the official agenda and no decisions will be made, since the negotiations are taking place in the Eurogroup.

    While there had been some progress in the negotiations in recent weeks, especially in the atmosphere of the talks, a comprehensive solution that was necessary in order to successfully complete the programme had yet to be reached, the spokesman added in response to questions about the meesages emerging from Athens.

    "With all my heart, I would welcome it, if it were so - if we were very close to a solution," he said, noting that Berlin "has a sincere and serious interest in successfully concluding the negotations."

    Responding to Lew's warning not the "miscalculate" in the efforts to negotiate an agreement and that it would be a "mistake" to think that the failure would have no consequence outside of Greece, calling on foreign negotiations to be flexible, Jaeger said that great flexibility had already been shown, both in the extension of Greece's programme and in giving the option to not implement all the agreed reforms but present its own proposals.

    Regarding a statement by Finance Minister Wolfgang Schaeuble on the possibility that capital controls will be imposed in Greece, the spokesman said that Schaeuble had referred exclusively to the powers of national governments and urged reporters to closely read the minister's interview in "Die Zeit" on Thursday.

    Greece cannot exit recession without writing-off a significant part of its debt, coordinator of the initiative Year for debt forgiveness tells ANA-MPA

    "Greece cannot exit recession without writing-off a significant part of its debt," Juergen Kaiser, coordinator of the initiative Year for debt forgiveness, said.

    "What is important is for the Greek government to make appealing proposals to its creditors so that a step-by-step approach is made," Kaiser noted and added: "I think that Greece should have more fantasy and become more flexible in order to achieve something."

    "We have organised many campaigns in Germany with the occasion of the anniversary of the 1953 London agreement on German external debts. Until 2013 few people were aware of that. Thanks to Mr Tsipras things have changed. More and more people want to get informed and we are grateful to Mr Tsipras for that. Since Greeks started talking about the debt write-off more and more people want to learn more on that," Kaiser underlined.

    He estimated that "Greece from a technical point of view is a special case. What is important is to have an independent decision-making authority. That's the key. The technical details will probably be different in the case of Greece, but the issue concerns every sovereign state."

    The full interview is available for subscribers at ANA-MPA website.

    [10] Creditors don't share government's optimism about deal, ND spokesman says

    New Democracy spokesman Costas Karagounis on Wednesday noted that European officials did not appear to share the government's optimism that Greece and its creditors were very close to a deal.

    "The money has run out, as government ministers assure us. Uncertainty continues to paralyse the country. And amid all this they are exulting that they can pay wages and pensions this month. Let this torture for the country finally end," Karagounis said.

    [11] Labour Minister: No cuts in supplementary pensions

    "My information say that the discussion is still open on the collective negotiations and the minimum wage. This does not mean that the Greek government in any case will not proceed with the implementation of this particular commitment" stated Labour Minister Panos Skourletis to private STAR TV.

    On the possibility to be made through a unilateral action, the minister said "even in this way".

    Moreover, he noted that the implementation of the engangement for the Christmas bonus is "a parameter of the real potential of the economy". He also said that "if the financials at the end of the year allow it then, yes it will be given this year. If not, we can give part of the Christmas bonus".

    The Labour minister reiterated that there will be no cuts in main and supplementary pensions and the zero deficit clause for supplementary funds will not implemented and underlined the need for an overall reform in insurance aiming at securing the system's sustainability.

    Regarding the course of the negotiations, he stated that "we are at the final stage....there are still open issues".

    Skourletis clarified that "because it is a very difficult agreement, every small detail matters".

    Referring to the payment or not of the installment to the IMF on June 5, he said that "it depends on the agreement".

    [12] PM Tsipras to meet Iranian foreign minister in Athens on Thursday

    Prime Minister Alexis Tsipras is to have a meeting on Thursday with Iran's Foreign Minister Mohammad Zavad Zarif, at the prime minister's office in Athens at 18:00.

    [13] European Commission presents plan for relocation of 40,000 asylum seekers from Greece, Italy

    BRUSSELS (ANA-MPA/ M. Aroni)

    The European Commission on Wednesday proposed the relocation of 16,000 asylum seekers in Greece and 24,000 in Italy to other EU member-states within two years, presenting the actions under the European Agenda for Migration.

    The Commission's proposal calls for the relocation of 40,000 asylum seekers that reached Greece and Italy after April 15 2015, of which 40 percent are Syrians and Eritreans. The Commission said that the relocation will be carried out over a period of two years, while Italy and Greece must promise to improve procedures for examining asylum applications.

    European Commissioner for Migration Dimitris Avramopoulos, presenting the Commission's proposals, stressed that the target was to ensure a "minimum degree of solidarity" while at the same time "securing European borders and saving lives."

    [14] European Commission asks Belgium to receive 546 migrants from Greece, 818 from Italy

    BRUSSELS (ANA-MPA/M. Spinthourakis)

    The European Commission asked Belgium to receive 1,364 migrants from Syria and Eritrea who are now in Greece and Italy, in the name of European solidarity among member-states, Belgian news agency Belga reported on Wednesday.

    The country will have to welcome 818 asylum seekers from Italy and 546 from Greece.

    According to the report, Germany will bear the brunt of the EU's migration policy agreements, as the country has been asked to host 8,763 out of 40,000 migrants who will "relocate" within the EU (24,000 from Italy and 16,000 from Greece). The number amounts to 21.91 pct of migrants. France follows with 16.8 pct and Spain with 10.72 pct.

    [15] The current situation is far beyond the capabilities of the Asylum Service, its head tells ANA-MPA

    "The current situation is far beyond the capabilities of the Asylum Service," Maria Stavropoulou, head of the Service on Wednesday said in an interview with ANA-MPA.

    More specifically, she referred to staff shortages that have led the Regional Asylum Office Attica to close its doors to those who wish to submit an asylum request.

    As she said, the Office currently operates with 200 employees throughout Greece, while due to the increasing applications for asylum, twice that staff should have been employed. Lack of staff has led to a 35 percent reduction in the number of people whose applications are processed at the Regional Office of Attica, a figure that translates into only 25 asylum applications daily.

    Stavropoulou expects that the problem will be limited after the transfer of municipal police officers as soon as bureaucratic procedures are completed, while she proposed offering, at European level, temporary asylum to a large number of applicants.

    The full interview is available for subscribers at ANA-MPA website.

    [16] President Pavlopoulos receives Foreign Minister Nikos Kotzias

    President of the Hellenic Republic Prokopis Pavlopoulos on Wednesday received Foreign Minister Nikos Kotzias at the presidential mansion, noting that he had taken over leadership of the foreign ministry at a time "that was anything but usual."

    "As your multi-faceted initiatives have shown, the activity of the foreign ministry extends well beyond the confines of traditional diplomacy and the long-standing defence of our national foreign policy issues, and touches on aspects of this crucial negotiation, which is taking place in order to reach an agreement with our partners," Pavlopoulos said.

    [17] FM Kotzias to meet Iran's FM Zarif on May 28

    Foreign Minister Nikos Kotzias will meet the Foreign Minister of the Islamic Republic of Iran, Mohammad Javad Zarif, at 11:30, on Thursday, 28 May, at the Foreign Ministry.

    After the talks, at approximately 12:30, the two Ministers will make joint statements to representatives of the news media, followed by a working luncheon, according to a Foreign ministry's announcement.

    [18] PM Tsipras and five European officials comment on 2014 European Elections in documentary

    Prime Minister Alexis Tsipras is among the officials who comment in a documentary on the 2014 European Elections, during which European parties were called for the first time to propose their candidate for the position of the president of the European Commission.

    The documentary, produced by EuroparlTV, hosts statements by EU officials and protagonists who describe the process which was followed and which aimed at making procedures more democratic. Six personalities, among whom the Greek premier, comment on political forces, shed light on the background of the process, present the political parameters and the emotions created from these events.

    Among the officials is the winner of the election, Commission head Jean-Claude Juncker, the President of the European Parliament Martin Schulz, Greens MEP Ska Keller, the General Secretary of the European Parliament Klaus Welle and the Parliament's spokesman Jaume Duch Guillot.

    The documentary is available in all languages on this link: http://europarltv.europa.eu/en/player.aspx?pid=39f3a116-e84a-4014-a182-a49f010746ec

    [19] Greek foreign ministry criticises Albanian PM for statements on hydrocarbon research

    Greek Foreign Ministry spokesman criticized Albanian Prime Minister Edi Rama on Wednesday for saying his country should be briefed on Greece's hydrocarbon research in the Ionian Sea.

    Speaking during a joint press conference with Serbian Prime Minister Aleksandar Vucic in Tirana on Wednesday, Edi Rama said his country "will not relinquish its national interest for the sake of good neighbouring relations."

    "The political leadership of our friendly neighbouring country is lapsing, in word and deed, every day," Konstantinos Koutras said.

    "A return to the logic of, and to respect for, legality and international law is the surest path for Albania's European perspective. No further comment," he added.

    [20] Potami party says 'alarmists' are within the government camp

    Opposition party To Potami called on the government on Wednesday to abandon its tactics and provide responsible answers on the ongoing negotiations and the imminent deal it is announcing.

    "When Mr. Tsipras asks us to ignore alarmists, obviously he has in mind those in the government camp who speak of disasters and herald a rupture and exit from the Eurozone," Potami said in a press release.

    The party said the announcement that Greece is close to a deal is positive, though political parties continue to be in the dark as to what that deal may include.

    "Instead of responsible briefing, the government chooses to leak information without a face and signature," Potami said adding that the party wants to know which fiscal measures are on the negotiating table and what kind of an end-deal the government will secure.

    Financial News

    [21] IMF should stop attacking pension and worker rights in Greece, ITUC says

    Attacking the the International Monetary Fund's (IMF) hardline stance on Greece, the International Trade Union Confederation (ITUC) on Wednesday called on the fund "to desist in its mindless attack on workers' wages, rights and pensions."

    It said the IMF should stop demanding that the government dismantle workers' rights and cut pensions to "below subsistence levels".

    The global union body, representing 176 million workers in 162 countries, also expressed strong support for its affiliated organisation in Greece, the General Confederation of Employees of Greece (GSEE), at a moment when "unreasonable austerity and deregulatory reform demands could force the country to default to the IMF as early as next month."

    "The ITUC finds unacceptable that the IMF has taken a hard-line stance within the Troika, or 'Brussels Group', and is pressuring EU lenders not to make loan disbursements unless Greece cuts pensions such that the basic level will be ?360 per month, below the subsistence level. With more than a quarter of the labour force out of work, a large share of households have come to rely on pensions as their only stable source of income and will be pushed into poverty if pensions are further reduced," ITUC general secretary Sharan Burrow said.

    The IMF was also pushing for a greater rolling back of labour rights - by fully liberalising collective dismissals, abolishing laws protecting trade union activities and placing new restrictions on the right to strike - at a time when most Greek workers have already lost collective bargaining coverage.

    "Greece's labour laws are consistent with EU norms," said Burrow. "The IMF's apparent intent to eliminate workers' collective voice in Greece will do nothing to achieve recovery but may succeed in ensuring that inequality will grow by leaps and bounds. The IMF should show some consistency with its own research on the negative impacts of inequality. It should respect workers' rights and support an equitable tax reform in Greece," the ITUC said.

    The ITUC pointed out that when the IMF concluded its first loan agreement with Greece in May 2010, it predicted that its programme would restore economic growth within two years, with unemployment peaking at less than 15 per cent and public debt at less than 150 per cent of GDP. In reality, unemployment has exceeded 25 per cent since 2012, and the debt-GDP ratio currently stands at 180 per cent, despite a partial debt write-down three years ago.

    Given the IMF's "utterly inept performance" in predicting the impact of its programme, ITUC added, "after five years of destructive austerity and structural adjustment," the IMF and other international lenders should "stop their obstructionism, make loan disbursements and support the Greek people's efforts to rebuild their economy through policies that give priority to employment creation."

    [22] ECB keeps Greek banks' ELA ceiling stable at 80.2 bln euros

    The European Central Bank (ECB) on Wednesday decided to keep the lending cap for Greek banks via the Emergency Liquidity Assistance (ELA) mechanism stable at 80.2 billion euros, according to sources.

    More specifically, the ECB estimated that there is no reason to change the lending cap for Greek banks via ELA. The same sources said that deposit outflows remained stable in the previous week.

    This means that Greek banks will once again have a buffer of around 3.0 billion euros, and the situation will be reviewed again next week.

    [23] Outflow of deposits from Greek banks stabilising, sources say

    Domestic bank deposits are stabilising, with their outflow considerably slowed since the start of the week, sources said on Wednesday. As a result, the Bank of Greece did not ask the European Central Bank to increase in the Emergency Liquidity Assistance (ELA) lending cap for Greek banks above the current 80.2 billion euro limit.

    However, the situation in the banking system remains critical as deposits have fallen by around 25 billion euros in the period from November 2014 to end-April, from 164.4 billion to 138.5 billion euros at the end of last month.

    Greek banks have significantly raised their dependence from European Central Bank's lending mechanisms in that period, with borrowing through the ELA mechanism rising to 74.3 billion euros at the end of April, additionally to 38.4 billion euros borrowed directly from ECB, raising their dependence from the Eurosystem to 112.7 billion euros.

    Greek banks are offering collaterals to borrow from the ECB. Lately, several ECB board members are pressing for a more austere framework covering Greek banks' collaterals, but the ECB's board has rebuffed such demands - which are mostly directed from Germany. However, the danger that this resistance will be overcome is visible in the future, although bank sources said that even with a change in the collateral framework, Greek banks have adequate liquidity. At the end of April, Greek banks had collateral deposits of a nominal value of 145 billion euros to be used for ELA and another 40 billion euros (EFSF bonds) to be used for ECB.

    [24] Greek betting firm OPAP reports 16.9 pct rise in net profit for Q1

    Greek betting company OPAP announced a 16.9 pct rise in net profit for the first quarter of the year on Tuesday.

    The company reported a net profit of 58.1 million euros versus 49.7 million euros in the same period a year ago.

    Sales rose 16 pct to 1.11 billion euros in the same period compared with 965.5 million euros in Q1 of 2014, with the launch of a new scratch card game last year boosting the figure by 112.6 million euros. Revenues from its two flagship games Stihima and Kino reached 406.3 and 506.3 million euros respectively.

    The Group's EBITDA increased to 93.2 million euros in Q1 from 76.3 million euros during the same period last year - an increase of 22.2 pct year-on-year.

    Commenting on OPAP's results, the Chairman and CEO of the company, Kamil Ziegler said: "After one year since OPAP returned to profitability growth, we are pleased to report that 2015 started in the same way that 2014 ended...Overall, we managed to grow our revenue and profitability base amidst a volatile environment, while our actions towards the company's offering enhancement continued on all fronts."

    "For 2015 our focus remains the same: Reinforcing our core business is at the heart of everything we do. The successful VLTs introduction in the Greek market will generate additional revenues for the Greek state, create new jobs and boost the real estate market," he added.

    [25] Piraeus Bank reports net profit of 23 mln euros in Q1?

    Piraeus Bank on Wednesday reported net profits of 23 million euros in the first quarter of 2015, while net revenues rose 6.0 pct year-on-year to 589 million euros. Net interest income rose 4.0 pct to 500 million euros, but fell 2.0 pct compared with the fourth quarter of 2014, largely reflecting the use of the ELA mechanism in the first three months of the year.

    The Piraeus Bank Group, in an announcement, said that this development was offset by further containment of time deposits' average monthly cost which fell to 180 basis points from 195 bps in December 2014. Despite market developments in first quarter, which resulted in significant deposit outflows, the downward trend in time deposits' cost was not affected and therefore the rate of new time deposits at end April 2015 was set at 1.75 pct.

    Net interest margin stood at 273 basis points versus 255 bps in the first quarter of 2014, net fees and commission income was 83 million euros, up 4 pct from the same period last year and down 4 pct on a quarterly basis, mainly due to the economic developments that negatively influenced loan commissions. Commissions from banking activities comprised 86 pct of total, while investment banking and asset management accounted for 7 pct and 8 pct, respectively.

    The Group's operating expenses stood at 344 million euros in the January-March period, of which 51 pct were related to staff expenses, 40 pct to administrative expenses and 9 pct to depreciation and other expenses. Operating costs in Q1.2015, normalized for one-off items, were ?327 mn, down 9% qoq and marginally up 1% versus Q1.2014.

    The Group's recurring profit before tax and provisions was 266 million euros in the first quarter, compared to 252 million last year (+6 pct). The Group's net results from continuing operations attributable to shareholders amounted to a loss of 69 million in the first quarter. It is noted that the parent Piraeus Bank posted a net profit of 23 million.

    The Group's customer deposits amounted to 46.5 billion euros, recording a 15 pct reduction or approximately 8 bn compared to year end 2014. The decline was almost in line with the decrease, which was recorded for the entire deposit market in Greece (-14% pct). Following the agreement attained at the Eurogroup meeting on February 20, 2015, the impact from deposit outflows was contained. Nonetheless, the decline in time deposits' cost has not stopped, and continues at a milder pace during the first months of 2015. At the same time, it is worth noting that the bulk of outflows is channeled into banknotes and only a small portion is transferred abroad, a point that is important for the gradual return of deposits as soon as market conditions stabilize.

    Deposits related to international operations increased 7 pct year-on-year, totalling 5.1 billion euros (mainly from Egypt, Bulgaria and Cyprus).

    Gross loans before adjustments at the end of March 2015 amounted to 71.4 bln. Loans in Greece amounted to 64.5 bln and in international operations to 6.9 bln (10 pct of total loans). Business loans represented 65 pct of total Group loans, whereas retail loans made up 35 pct (25 pct mortgages and 10 pct consumer loans). Net loans amounted to 55.7 billion euros.

    Loans to deposits ratio at the end of March 2015 stood at 120 pct. Piraeus Bank's Eurosystem funding increased to 30.3 billion at end March 2015 from 14.1 bn in December.

    Group NPL formation, which almost zeroed in the fourth quarter of 2014 following a long deceleration, increased slightly in the first three months of 2015 caused by the heightened economic uncertainty, settling at 0.3 billion. Specifically, new loans in arrears as a percentage of loans was 0.38 pct in Q1.2015. The Group's NPLs ratio (post write-offs) stood at 38.9 pct at the end of March 2015. The coverage of loans in arrears over 90 days by cumulative provisions stood at 56.5 pct at the end March compared to 50.7 pct in March 2014.

    "The forthcoming agreement between Greece and the institutions is significant, as it will remove any uncertainties and restore confidence in the economy and the Greek market. This development will enable the return of deposits into the banking system, its access to cheaper funding sources and enhance liquidity in the economy.

    Restoring liquidity is imperative for stimulating business activity, creating jobs and enabling growth. The latter is the most appropriate way to address the economic and social crisis, as it allows for an increase in employment, as well as the implementation of a redistributive policy with the aim of improving the living standards of vulnerable social groups.

    Piraeus Bank is preparing itself to respond to its heightened responsibilities and its role in the Greek economy," Michalis Sallas, chairman of Piraeus Bank Group said.

    [26] Mytilineos Group says turnover down 6.6 pct in Q1?

    Mytilineos Group on Wednesday reported a 6.6 pct decline in its first quarter turnover to 320.6 million euros, from 343.3 million in the same period last year. EBITDA rose 10.4 pct to 74.7 million euros, while net after tax and minorities earnings grew 49.7 pct to 22.8 million euros.

    Mytilineos Group said its metals and mining sector recorded the strongest performance in the January-March period, with a turnover of 139.7 million euros, from 96.3 million in 2014, an increase of 45 pct and EBITDA soaring to 33.1 million euros, from 8.8 million in 2014, reflecting mostly a successful completion of a plan to drastically cut costs in Aluminium of Greece.

    The EPC project sector maintained its positive course, with METKA recording a turnover of 125.7 million euros, down form 189.1 million in the same period last year. EBITDA rose to 32.9 million euros, from 32.7 million in 2014, while net after tax and minorities earnings eased to 23 million euros from 25.4 million in 2014.

    The energy sector recorded a turnover of 57.1 million euros in the first quarter, down from 59.2 million in 2014, while EBITDA shrank to 7.7 million euros from 27.3 million euros last year.

    [27] Ionian Hotels reports lower Q1 results?

    Ionian Hotel Enterprises on Wednesday said its pre-tax, financial, investment and amortization earnings totaled 594,000 euros in the first quarter of 2015, from 666,000 euros in the same period in 2014. Turnover was 6.0 million euros, unchanged from the corresponding period last year, while net after tax results showed a loss of 617,000 euros, up from a loss of 586,000 euros last year.

    [28] Greek stocks end sharply higher

    Greek stocks ended sharply higher in the Athens Stock Exchange on Wednesday. Traders said market sentiment was boosted by news that the Greek government began drafting a final agreement with its creditors. Bank shares were at the focus of buying activity. The composite index of the market jumped 3.55 pct to end at 851.81 points, with the Large Cap index soaring 4.34 pct and the Mid Cap index ending 2.40 pct higher. Turnover rose to 97.78 million euros.

    PPC (11.37 pct), Eurobank (10.29 pct), Alpha Bank (9.21 pct), National Bank (8.70 pct) and Hellenic Exchanges (8.43 pct) were top gainers among blue chip stocks, while Titan (2.10 pct), Motor Oil (1.75 pct) and Aegean Airlines (1.08 pct) suffered the heaviest percentage losses of the day.

    Among market sectors, Banks (9.12 pct), Utilities (8.50 pct) and Financial Services (7.63 pct) scored big gains, while only the Health sectors suffered losses (-1.25 pct).

    Broadly, advancers led decliners by 88 to 36 with another 15 issues unchanged. Fieratex (30 pct), Galaxidi (29.73 pct) and Alpha Astika (20 pct) were top gainers, while Pairis (27.78 pct), Yalco (17.86 pct) and Dionic (14.55 pct) were top losers.

    Sector indices ended as follows:

    Banks: +9.12%

    Insurance: unchanged

    Financial Services : +7.63%

    Industrial Products: +1.60%

    Commercial: +3.27%

    Real Estate: +0.93%

    Personal & Household: +2.24%

    Food & Beverages: 7.241.13 +0.78%

    Raw Materials: 2.557.67 +1.43%

    Construction: +0.01%

    Oil: +1.20%

    Chemicals: +2.22%

    Media: unchanged

    Travel & Leisure: +4.00%

    Technology: +0.63%

    Telecoms: +5.07%

    Utilities: +8.50%

    Health: +1.25%

    The stocks with the highest turnover were National Bank, OTE, EuroBank, Alpha Bank and Piraeus Bank.

    Selected shares from the FTSE/ASE

    Large Cap index closed in euros as follows:

    Alpha Bank: 0.332

    Eurobank 0.150

    Public Power Corp (PPC): 5.29

    Coca Cola HBC: 20.76

    Hellenic Petroleum (ELPE): 4.91

    National Bank of Greece: 1.25

    OPAP: 9.00

    OTE: 8.50

    Piraeus Bank: 0.477

    Titan: 20.95

    Grivalia Properties: 7.93

    Aegean Airlines: 7.30

    [29] Greek bond market closing report

    The two-year state bond yield fell to 24.09 pct in the domestic electronic secondary bond market on Wednesday, from 25.5 pct the previous day. The yield spread between the 10-year Greek and German benchmark bonds, however, widened to 11.11 pct from 10.90 pct on Tuesday, with the Greek bond yielding 11.66 pct and the German Bund yielding 0.55 pct. There was no turnover in the market.

    In interbank markets, interest rates moved lower. The 12-month rate eased to 0.160 pct from 0.161 pct, the nine-month rate fell to 0.1 pct from 0.101 pct, the six-month rate eased to 0.050 pct from 0.052 pct, the three-month rate was -0.013 pct and the one-month rate was -0.054 pct.

    [30] ADEX closing report

    The June contract on the FTSE/ASE Large Cap index was trading at a premium of 2.33 pct in the Athens Derivatives Exchange on Wednesday. Volume on the Big Cap index totaled 8,621 contracts with 40,627 open positions in the market. Volume in futures contracts on equities totaled 80,573 contracts with investment interest focusing on Eurobank's contracts (27,325), followed by Alpha Bank (19,656), Piraeus Bank (13,224), National Bank (16,261), MIG (663), OTE (517), PPC (1,319), OPAP (158), Mytilineos (182), Hellenic Petroleum (421), Motor Oil (103), Frigoglass (144) and GEK (90).

    General News

    [31] Greece mulling flexible legal package, incentives to attract foreign movie productions

    The Greek government is mulling a new, flexible legal framework to attract foreign movie productions to Greece, State Minister for Coordinating Government Operations said on Wednesday.

    "Greece has all the advantages which can render it a unique center of international productions," Alekos Flambouraris said, following a meeting with government ministers.

    During the two-hour meeting, ministers noted the need for a body which will handle licenses and resolve all bureaucratic problems facing foreign producers and Greek co-production companies. Measures would include providing tax reductions similar to those offered by other EU states.

    The meeting was attended, among others, by Economy, Infrastructure, Shipping and Tourism Minister George Stathakis, Alternate Tourism Minister Elena Kountoura, Alternate Minister for Culture Nikos Xydakis, Deputy State Minister Terence Quick. Officials agreed to meet again on June 5 (Friday).

    [32] UEFA vice president Lefkaritis over FIFA arrests

    Six soccer officials, including some high-ranking members of world governing-body FIFA, were arrested by Swiss police on Wednesday.

    Cyprus' UEFA vice-president Marios Lefkaritis, in statements to Sport FM 94.6 FM, expressed his astonishment and said he was not aware of the advanced stage of the investigation.

    "If you don't know the things, the people and the situation, you cannot express a view. We were aware of the fact that an investigation was underway. But we did not know who it aimed at," Lefkaritis noted.

    "Most of the names are Latin American. I have not heard of names from Africa, Europe and Asia. We, Europeans, were not aware of the advanced investigation that was underway. I have been astonished. We'd better wait for the details of the case. I cannot say who is responsible. Among the arrested ones, it only one member of FIFA's executive committee," he added.

    The Swiss police arrested six members of FIFA following an order of the US authorities and are investigating these individuals on suspicion of the acceptance of bribes and kickbacks, according to Swiss authorities.

    A FIFA representative in Zurich said that the federation is trying to clear out the situation. "We saw the news. We are trying to clear out the situation. We are not going to make any comment on that right now," the representative said.

    [33] Greek courts refuse extradition of Turkish national on warrant issued by Germany

    The Appeals Justices Council has refused to allow the execution of a European warrant for the arrest and extradition to Germany of Turkish national Erol Gultekin. The warrant was issued by the German supreme court over charges brought against Gultekin by Turkish authorities for "terrorist action in various countries." The ruling on Wednesday became irreversible, since it was not contested by the Greek Supreme Court Arheios Pagos within 24 hours.

    The Council did not allow the warrant to be executed and ordered the immediate release of the prisoner, despite the contrary proposal made by the public prosecutor.

    According to the defendant's counsel, Gultekin was a leftist militant that had faced eight years of imprisonment and torture in Turkey and had been vindicated by the European Court of Human Rights (ECHR) for the torture that he had been subjected to and for the violation of his rights to a defence in court, for which Turkish authorities were also condemned.

    [34] Intercity bus overturns, one woman slightly injured

    An Ioannina-based KTEL inter-city bus with 15 passengers on board veered off course and overturned at Platanakia, Terovo on Wednesday, about 30 kilometres from Ioannina. According to initial reports, only one young woman appears to have sustained slight injuries, while fire brigade, traffic police and ambulances are heading to the scene.

    The bus was travelling from Agrinio to Ioannina.

    Weather forecast

    [35] Rain on Thursday

    Clouds, rain and hailstorms and northerly winds are forecast for Thursday. Wind velocity will reach 6 on the Beaufort scale. Unstable weather in the northern parts of the country with rain and thunderstorms and temperatures ranging from 13C-22C. Clouds and heavy rain in the western parts and temperatures between 10C-23C. Rain and thunderstorms in the eastern parts and temperatures between 12C-25C. Rain over the Aegean islands and Crete, 16C-25C. Clouds and rain in Athens, 14C-24C; the same for Thessaloniki, 17C-23C.

    [36] The Wednesday edition of Athens' dailies at a glance

    AVGHI: Collective agreements and minimum salary are on a good track

    DIMOKRATIA: (Finance Minister Yanis) Varoufakis a "bomb" for Maximos Mansion

    EFIMERIDA TON SYNTAKTON: Turmoil over the media

    ELEFTHEROS TYPOS: They rushed to take back Varoufakis' statement regarding a tax on ATM transactions

    ESTIA: Great loss for tourism

    ETHNOS: This is how we can agree

    IMERISSIA: Plan to legalize undeclared deposits

    KATHIMERINI: Confusion in Athens while time is running out

    KONTRANEWS: (German Chancellor Angela) Merkel and (German Finance Minister Wolfgang) Schaeuble at loggerheads for (Prime Minister) Alexis (Tsipras)

    NAFTEMPORIKI: Entering the final stretch. Partners raise an issue on 2015 and 2016 fiscal gap

    RIZOSPASTIS: SYRIZA-ANEL ask for US intervention to close the anti-popular deal

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