May 2, 1957

KARAMANLIS ANNOUNCES MEASURES: Prime Minister Constantine Karamanlis has announced the initial decisions he has made in the area of the economy. The measures announced by the prime minister are of considerable importance and are extremely radical. They are aimed at finding cash for current needs in the economy and funding large and small development projects. At the same time, the measures will reduce the dependence of commercial banks on the Bank of Greece and the Monetary Commission, so that the banking system can become more flexible and no sudden obstacles will arise which could impede the smooth funding of the economy. Interest rates on deposits will be raised to 10 percent, while loan interest will be upped by two percentage points. There is to be an increase in the overall amount of loans made available for commerce. Provision is made for gold convertibility and tax relief for bonds maturing at 18 months or over. CHEAP MONEY: At a general meeting of National Bank shareholders yesterday, the board recommended doing away with the free money market and providing long-term capital at low interest rates so Greek industry can better compete with foreign products.