The bank workers union (OTOE) yesterday walked out of their seventh meeting of negotiations with employers yesterday and canceled a further meeting scheduled for today after being offered 3.5- and 3-percent pay raises for 2002 and 2003 respectively. OTOE is asking for 6 percent for this year alone. Banks are also proposing a reduction in work hours from 38.3 to 37 weekly and an extension of business hours from 29.5 to 33.75 per week. The development came as a surprise as OTOE had earlier indicated optimism. A main stumbling block seems to be the banks' determination to cut operating costs. According to the Bank of Greece, the operating expenses of Greek banks amounted to 2.3 percent of their average assets in 2001, against 1 percent for similar bank groups elsewhere in Europe.

The sale of state-owned Hellenic Shipyards to the German consortium HDW-Ferrostaal is expected to be finalized on May 13, Development Minister Akis Tsochadzopoulos said after a meeting with buyers' representatives yesterday. Economy Minister Nikos Christodoulakis said he will provide extensive details on the date itself. The sale was approved by the European Union's competition authorities last week.

China's first Alternate Prime Minister Kou Li Langing is to visit Greece from May 17 to 22, with talks focusing on cooperation in tourism. He will be preceded by Deputy Tourism Minister Yu Guangzhou, who is to head a 15-member delegation from May 7 to 13. China is considering designating Greece as an official tourist destination.

The Consumer Protection Institute (INKA) is urging borrowers to conduct careful market research and check the small print before taking out so-called «Easter holiday loans» that carry an enticing but potentially misleading nominal rate of 9.25 percent - two percentage points below ordinary personal loans. INKA says complaints about problems with banks are on the rise this year.

Greece has the European Union's lowest consumption of plastic packaging and the industry is estimated to grow by 2-3 percent annually in the next two years after an average annual growth of 5.2 percent in the last 10 years, according to a study by business research firm ICAP. Greek firms, which meet most market requirements, are now turning abroad, particularly to Balkan neighbors, supplying mainly the more flexible varieties. Hellenic Petroleum's recently inaugurated polypropylene plant is soon expected to fully meet Greek market requirements, but polyethylene is still imported from abroad. The increasing turn by dairy industries to plastic packaging is seen as a positive factor for demand.