ECONOMY

In Brief

Exporters see mixed impact of EU enlargement EU enlargement with six new member states next year is expected to have a mixed impact on Greek exports, the Association of Exporters of Northern Greece (SEVE) said in a study. The positive effects are seen in terms of greater volume as a result of the country’s relatively cost-competitive production structure, although the study cautions that the new entrants may face fiscal problems which could dampen consumption. It also points out that the gradual rise in their standard of living – Cyprus’s and Slovenia’s are already higher than Greece’s – will turn consumers to more expensive, higher-quality and better-marketed products. Moreover, the total competitiveness of Greek products in these countries is rather limited compared to other EU partners, and it is also likely that enlargement will increase trade between member countries that have geographical proximity with each other, SEVE said. The study points to the need for a strategy to develop competitive products based on quality, price and marketing, and repeats a call for implementing a National Export Strategy (http://www.seve.gr). Listed company fined for misleading investors The Capital Market Commission imposed fines of 685,000 euros on listed company Dionic, its board of governors, and on National Securities – a subsidiary of the National Bank of Greece which acted as adviser in Dionic’s share capital increase of February 8, 2001 – for misleading investors. Dionic was found to have said in its issue prospectus on that date that it expected profits of 336 million drachmas (986,000 euros) for 2000, but reported only 153.4 million (450,000 euros) in its financial statements 20 days later. Dionic was fined 90,000 euros, each member of the board of directors 60,000 euros and National Securities 175,000 euros. Olympic Catering Olympic Catering, a subsidiary of Olympic Airways, said the 2004 Olympic Games will help attract bidders to a government tender for a majority stake in the company. Greece launched an international tender to sell 51 to 68 percent of Olympic Catering as part of its plans to strip ailing state carrier Olympic Airways of non-core businesses. Olympic Catering’s managing director, Haris Vasilopoulos, told shareholders yesterday the company will seek to secure catering contracts for Olympic Games-related events. The closing date for the submission of non-binding bids is July 11, while binding bids are expected to be handed in at the beginning of August. (Reuters) 2004 project The GEK-Terna construction group announced it has undertaken the 16.1-million-euro project for general refurbishment and improvements in the Peace and Friendship indoor stadium in Piraeus, which is to be used for the volleyball events of the Olympic and Paralympic Games of 2004. The project is estimated to be completed in 540 days. Nigeria investment Athens bourse-listed Frigoglass group said it has completed investments totaling 18 million euros in two glass factories in the towns of Agbara and Ughelli, Nigeria. Diversify Greek investors have to diversify their choices to include other selected, promising European stocks, speakers at a presentation organized by Eurocorp-Avax Securities group said.