From: OVERSEAS BUSINESS REPORTS (GREECE)
University of Missouri-St. Louis
Match 7 DB Rec# - 23,383 Dataset-MARKET
Source : USDOC, International Trade Administration
Source key :IT
Program key :IT MARKET
Program :Market Research Reports
Update sched. :Monthly
ID number :IT MARKET 111104954
Title :GREECE - OVERSEAS BUSINESS REPORT - OBR9208
Data type :TEXT
End year :1993
Date of record:04/14/1993
Keywords 1 :
| 9208
| CC484
| ECONOMY
| FINANCE
| GREECE
| INVESTMENT
| MARKET|ASSESMENT
| OBR
| OBR9208
| STATISTICS
| ZEC
Country :
| GREECE
| EC
| EEC
| EUROPE
| EUROPEAN COMM.
| EUROPEAN COMMUNITY
| EUROPEAN ECONOMIC COMMUNITY
| OECD
| ORGANIZATION FOR ECONOMIC COOPERATION & DEVELOPMENT
| ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMET
| WEST EUROPE
| WESTERN EUROPE
| WESTERN EUROPEAN COUNTRIES
Text :
GREECE - OVERSEAS BUSINESS REPORT - OBR9208
SUMMARY
This article is derived from a report dated August 1992, prepared at the
U.S. Government - U.S. Department of Commerce, Washington, DC. The article
consists of 56 pages and discusses the economic and commercial climate in
Greece, with emphasis on information useful for potential U.S. sellers and
investors. It includes the following sections:
FOREIGN TRADE OUTLOOK
ECONOMY
DISTRIBUTION AND SALES CHANNELS
TRANSPORTATION, COMMUNICATIONS, AND POWER
CREDIT AND BANKING
FOREIGN INVESTMENT IN GREECE
INDUSTRIAL PROPERTY PROTECTION
BUSINESS ORGANIZATIONS
TAXATION
EMPLOYMENT
GUIDANCE FOR BUSINESS TRAVELERS
SOURCES OF ECONOMIC AND COMMERCIAL INFORMATION
MARKET PROFILE
TABLES
OVERSEAS BUSINESS REPORT
MARKETING IN GREECE
Prepared by Ann Corro
Office of Western Europe
with assistance from the
Foreign Commercial Service
American Embassy, Athens
TABLE OF CONTENTS
FOREIGN TRADE OUTLOOK
Trade with the World--Trade with the United States--
EC Single Internal Market--Best Export Prospects
ECONOMY
Manufacturing--Agriculture--Forestry--Fishing--Mining
Construction--Tourism--Development Plans--Major Projects
TRADE REGULATIONS
Trade Policy--Import Control System--Tariff Structure--
Quotation and Terms of Payment--Shipping Documents--Import
Regulations--Free Ports and Zones--Warehousing--Technical Standards
DISTRIBUTION AND SALES CHANNELS
Importers--Wholesale and Retail Channels--Price Controls Government
Procurement--Business Associations--Advertising
TRANSPORTATION, COMMUNICATIONS, AND POWER
Transportation--Communications--Power
CREDIT AND BANKING
Foreign Exchange Regulations--Consumer Financing--
Financing--Leasing--Banking System
FOREIGN INVESTMENT IN GREECE
Investment Climate--Foreign Investment Laws
INDUSTRIAL PROPERTY PROTECTION
BUSINESS ORGANIZATIONS
Type of Organization--Organization of Foreign Firms--
Foreign Branch Office
TAXATION
Taxation of Legal Entities--Taxes on Imports and Other
Indirect Taxes
EMPLOYMENT
Labor Force--Greek Labor Unions--Minimum Daily Wages--
Work Hours--Social Security--Termination and Severance Pay
--Employment of Aliens
GUIDANCE FOR BUSINESS TRAVELERS
Entrance Requirements--Personal Effects of Travelers--
Accommodations--Business Customs
SOURCES OF ECONOMIC AND COMMERCIAL INFORMATION
Greek Commercial Representation in the United States--
U.S. Commercial Representation in Greece--Publications
MARKET PROFILE
TABLES
FOREIGN TRADE OUTLOOK
Greece became the tenth member of the European Community (EC) in 1981. EC
membership has further shifted Greece's trade towards its EEC partners.
With the advent of the EC Single Internal Market set for 1993, Greece is
proceeding with transforming its economy to participate fully in an expanded
and more competitive EC market.
Trade with the World
Historically, Greece has been an import-dependent nation, importing more
than it exports, roughly in a ratio of 3 to 1, thus creating trade deficits
in its balance of payments. The Greek export sector, at l0 percent of gross
domestic product (GDP), is low for a developed country. Other EC member
states are traditionally Greece's largest suppliers and customers, about 64
percent. Greek imports from the Middle East and North Africa comprise only
5 percent of Greece's import market. Imports from Eastern European and the
former USSR account for 5 percent. In 1991, imports from the United States
accounted for 4.4 percent. Greek export markets are heavily directed
towards Europe at 78 percent. The EC accounts for 64 percent of total
exports, followed by Eastern Europe and the former USSR at 5 percent of that
total, and European Free Trade Agreement (EFTA) at 6 percent of that total,
the United States accounts for 6 percent, and the Middle East for 5
percent. (See Table 1 for a further geographic breakdown.)
The composition of Greek exports is dominated by (1) manufactured
goods--textiles, iron and steel, aluminium, and cement; (2) foods and
beverages--tobacco, fruits and vegetables, olives, and (3) miscellaneous
manufactures--clothing and footwear; petroleum products, and crude
materials. For imports, chief commodities are machinery and transport
equipment, food products--meat, dairy products, and coffee; manufactured
goods--iron and steel, plastic materials, paper and paperboard, and textile
yarns; crude petroleum; chemicals; and crude materials--pulp, wood, wool,
and synthetic fibers. (See Tables 2 and 3 for further details.)
Trade with the United States
Since Greece's initial association with the EC in 1962, but especially since
full EC accession in 1981, competition for the Greek import market has been
fierce. From a high of 8.4 percent in 1980, the U.S. share of the Greek
market has declined gradually to under 4 percent in 1991. However, total
U.S. exports to Greece have hit a peak of over $1 billion in 1991, up from
$482 million in 1980 and $765 million in 1990. The U.S. import share would
be higher if U.S. imports from wholly owned American subsidiaries in Europe
were included.
Major U.S. exports to Greece over the past few years, ranked in order of
magnitude, include the following: aircraft and parts, soybeans,
telecommunications equipment, boats, pharmaceuticals, instruments (for
measuring, checking, and analyzing), wood, wood pulp, and cotton textile
fibers. (See Table 4.) The government's ambitious plans for development of
its communications, transportation, energy,metals/minerals, agricultural and
health care sectors also offer major opportunities for U.S. firms marketing
telecommunications services and equipment; computers, peripherals, and
software; medical instruments and equipment; construction services; food
processing and packaging equipment; analytical and scientific instruments;
drugs; and wood products.
U.S. imports from Greece are dominated by four major groups --tobacco,
petroleum products, cement, apparel, and iron and steel tubes and pipes.
(See Table 5.)
Greece is a mid-range market for U.S. exports and a minor source of U.S.
imports. In 1991, Greece was the 42nd largest export market for the United
States, up from 62nd place in 1987. On the import side, Greece is one of
the smallest Western European suppliers to the U.S. market.
Although Greece is a relatively small market with a population of 10.3
million, the Greek market should not be overlooked by U.S. exporters.
American suppliers willing to make persistent and aggressive marketing
efforts in Greece will continue to find a preference for American products
and American technology in many product categories. Greece's need to
modernize its industrial base to meet the stiff competition within the
unified EC market should lead to increased demand for imported
high-technology products, processes, and consulting services; areas in which
U.S. firms offer a distinct advantage.
While Greece's importance as a regional base for American firms' Middle East
and North African marketing operations has diminished in the last 5 years,
nearly 80 U.S. regional offices are still located in Greece under a special
Greek Law 89 introduced in l967. (See "Investment Laws"). The U.S.
Department of Commerce, through its Foreign Commercial Service at the U.S.
Embassy in Athens, assists U.S. regional offices located in Greece.
EC Single Internal Market
The European Community has embarked on an ambitious program to develop a
more united and barrier-free internal market for trade among the 12-member
countries by the end of 1992. As an EC member, Greece is fully
participating in this program. The Single Internal Market will create an
internal market of 380 million consumers with freedom of movement for goods,
services, labor, and capital as well as greater competition and lower prices
for the consumer.
The EC Single Internal Market program involves the adoption of some 279
directives that will establish new EC-wide requirements for a broad range of
business activities and result in the harmonization of standards for
thousands of products. This program is expected to create greater economic
growth, improve production and marketing efficiencies, increase
competitiveness, and lower costs to the consumer. It will also create new
EC product standards and regulations that will have to be adhered to by all
suppliers to the EC market.
The 1992 Internal Market program presents a challenge and an opportunity for
American firms doing business in the EC. American industry must be informed
and respond to changes and new competition in the commercial environment.
American firms seeking to sell products in Greece, or to establish a
business operation there, should review both Greek and EC regulations. In
many cases, the national product standards are being replaced with unified
EC-wide standards. These unified standards will make it easier for U.S.
suppliers to produce for export to the EC since one product will be accepted
for sale in all 12 countries. Steps are also being taken to harmonize
national procedures for product testing and certification and to establish
common EC trademark and copyright laws.
Best Export Prospects
Most export opportunities stem from Greece's need to modernize its
industrial base to compete in the EC Single Internal Market. The lower
dollar has made U.S. products more competitive. The government's ambitious
plans for development of its telecommunications, transportation, energy,
health care, metals/minerals, and agricultural sectors, financed mainly
through EC funds, offer major opportunities for U.S. firms in the following
categories:
Telecommunications Services and Equipment--The Greek Government has opened
up telecommunications value-added services to private firms. Cellular
telephony will be the first area open to foreign competition. Two cellular
telephone licenses will be awarded in 1992. Other value-added services will
follow soon. It is estimated that the cellular telephone market will be
$160 million by 1993. About 85 percent of the $640 million
telecommunications market is satisfied by imports. Beginning in 1989, the
Greek PTT started its modernization program, which included the
digitalization of Greece's communications system, the installation of fiber
optic networks, and the erection of earth-to-satellite stations. An
important subsector is radio and TV equipment with imports supplying 95
percent of the market.
Computers, Peripherals, and Software--The Greek market for computers,
peripherals, and software continues to be dominated by imports, with a $218
million import market in 1990. Over the next 4 years, computer sales are
expected to grow annually by 25 percent. In the public sector, the Greek
Government continues to expand its computer use. The EC has earmarked
significant funds for the development of computer technology or informatics
in both Greece's private and public sector. The new generation of powerful
PCs and easy-to-use communication link packages are in great demand in the
private sector, mainly in manufacturing, chemicals, plastics, trading,
transportation, banking, shipping, and petroleum. Demand for mini-and
micro-computers is steadily increasing at the expense of medium and larger
computer systems. The computer software industry is a rapidly growing
market. Locally produced software includes accounting, taxation, inventory
control, payroll, sales analysis, and personnel. All other software is
imported with a steadily increasing demand.
Medical Equipment--The Greek market for medical, hospital, and diagnostic
equipment presents good prospects for U.S. firms wishing to expand their
market share or actively seeking to penetrate a new market. U.S. products
still enjoy a qualitative and technological edge. About 90 percent of
market demand is satisfied by imports. Imports were approximately $225
million in 1990. Annual growth rate of imports is estimated at 7 to 10
percent. A greater growth is estimated in U.S. imports because U.S. medical
equipment is considered highly advanced and sophisticated. Projected high
demand is based on the Ministry of Health's ambitious program to erect many
new hospitals and modernize existing ones. Law 1892 of 1990 allows the
establishment of private clinics. This new law will lead to considerable
expansion of health care services in Greece.
Aircraft and Parts--Greece's military and civilian aircraft fleets are
predominantly of U.S. origin, and a constant supply of parts is required.
The present market is $275 million, satisfied by imports, with an annual
growth rate of 10-20 percent. The Greek Government signed agreements in
1987 for the purchase of military aircraft from the United States (F-16) and
from France (Mirage). Olympic Airways, the national airline, started taking
deliveries of six Boeing 747s. A new law passed in 1992 allows the creation
and operation of private air charter companies. A number of licenses have
already been issued. As the number of U.S. plane purchases rises, the
required number of aircraft parts is also expected to increase. Local
production is limited to components specified in contractural agreements and
joint production programs. The most promising subsectors will be jet
engines and parts, and aircraft and helicopters.
ECONOMY
The Greek economy began a long-overdue process of adjustment, triggered by a
package of stabilization measures in October 1990. The 3-year economic
stabilization program is designed to reduce severe imbalances in Greece's
public sector and external accounts, and to reduce inflation. Although
targets are ambitious, progress has been gradually chipping away at Greece's
structural weaknesses: high inflation, large budget deficits, and
balance-of-payments imbalances. EC inflows, which account for over 5
percent of GDP, are a significant contributor to Greece's economic
well-being.
Due to the austerity program, economic growth was 1.5 percent in 1991 and
probably will be 1.4 percent in 1992. Because of strong valuation effects,
however, caused by the decline of the dollar against major world currencies,
GDP expressed in dollar terms appears to have risen, reaching $69 billion in
1991. Greece's economy shows the profile of an "advanced middle-income"
country with 58 percent of GDP (at factor cost) and 48 percent of the work
force accounted for by services; 24 percent of GDP and 22 percent of the
work force in industry (predominantly light manufactures) and mining; and 13
percent of GDP and 24 percent of the work force accounted for by a
relatively large and inefficient agricultural sector; and an important
construction sector accounting for 5 percent of GDP and 6 percent of the
work force. (See Tables 6 and 7.)
The government's stabilization program included implementation of a tight
incomes policy in the public sector. In 1991, tight pay policy forced real
pay cut of 5 percent for civil servants and above 4 percent in the economy
as a whole. The tight incomes policy in the public sector continued in 1992.
Manufacturing
Since 1960, industry has been growing more rapidly than agriculture.
Manufacturing, the major component of the industrial sector, accounted for
18.4 percent of GDP in 1991. The traditional manufactured product groups of
food, beverages, tobacco, and textiles still account for 35 percent of gross
income from manufacturing, followed by the nonmetallic minerals (cement) and
chemicals sector at 9.9 percent, and machinery and transport equipment
sectors at 6.2 and 7.7 percent respectively.
Manufacturing is concentrated in the greater Athens area and in
Thessaloniki, with smaller industrial areas in the port cities of Patras,
Volos, and Heraklion (on Crete), and in the Thrace area. This concentration
has been recognized as an economic disadvantage, and concerted effort is
under way to disperse the industrial base more evenly throughout the
country. Most manufacturing also is carried out by small-scale operators.
For example, out of an estimated 140,000 manufacturing firms only 3,500
firms employ 10 or more people. The few large industrial firms are in the
mineral processing, oil refining, textiles, chemicals, engineering, and
shipbuilding and repair sector. Even these establishments, however, are to
a large extent characterized by closely knit, family-dominated ownerships.
Agriculture
The agricultural sector, which includes hunting, forestry, and fishing,
occupies an important but declining role in the economy, with a 13 percent
share of GDP in 1991, down from 25 percent in the 1950s.
One of the major problems in this sector is a continuing high percentage of
the active population (22 percent) dependent upon agriculture for its
livelihood in comparison to its contribution to the national economy.
Another adverse structural characteristic is the small size of farms and the
fragmentation of holdings into widely separated plots.
With only 30 percent of Greece's land considered arable, the low rate of
agricultural productivity is another persistent problem. However, with the
exception of meat, dairy products, and animal feedstuffs, Greece is
self-sufficient in foods.
Major crops include wheat, barley, corn, fruits, vegetables, oilseeds
(primarily olives), tobacco, cotton, and sugar beets. Of these, all provide
a surplus for export, except corn, barley, and sugar beets. Traditional
crops still grown are olives, citrus, and raisins. Although livestock
production is increasing, consumption has been rising at a higher rate,
resulting in a growing trade gap.
Progress has been made toward modernization in machinery, animal husbandry
(particularly in poultry and hog operations), and cultivation techniques.
In addition, agricultural products, including processed foods, beverages,
and tobacco, account for one-third of total exports. Further improvements
in processing and marketing are needed, however, to enhance the
international competitiveness of Greek agricultural exports.
The processing, packaging, and marketing of agricultural products have
become increasingly important as consumers become more discriminating.
Greek agriculture faces serious deficiencies in this area, affecting costs
and productivity. These problems arise from the low level of processing
technology and the small scale of the processing industry, as well as poor
coordination between production in the field and processing at the plant
site.
Forestry
Forestry contributes only about 2 percent to agricultural GDP and consists
mainly of firewood production. Forests cover nearly 3 million hectares, or
about 19 percent of the total Greek land area. At least two-thirds of the
forest area is owned by the state but is being transferred to local
authorities, and the balance is owned by private interests and monasteries.
The degree of self-sufficiency in timber is only 30 percent, with annual
timber production estimated to be only one-third of its potential.
To make up for forest fire damage, excessive lumbering, and overgrazing,
Greece pursued very conservative forest management policies between 1955 and
1980. By the mid-1970s, Greek forests were generally over mature and could
produce two to three times more wood than was being exploited. Certain
constraints existed, however; namely, inadequate access roads, a shortage of
trained manpower caused largely by poor living conditions in the mountain
areas, insufficient mechanization in logging, and an underdeveloped pulp and
paper industry. As a result, Greece had to import increasing quantities of
wood for construction and industrial purposes.
To alleviate these problems, successive governments sought to implement
comprehensive forestry development projects, including reforestation and
infrastructural development in rural villages. The World Bank loaned Greece
$25 million in 1979 for a 6-year integrated development program, including
infrastructural projects for mountain villages. The EC's Integrated
Mediterranean Program may also be another potential funding source for
forestry development. In the long term, Greece has the potential for
achieving self-sufficiency in forest products.
Fishing
Despite Greece's maritime character, fishing is much less important to the
economy than one would expect. Fishing contributes 2.2 percent to
agricultural GDP but less than 1 percent to national employment. The sector
has encountered serious problems because of reduced fish stocks due to
overfishing and pollution of some major gulfs and coastal waters, and rising
costs of production from an insufficiently modernized fishing fleet.
Because the coastal catch has decreased in recent years, high seas fishing
off Mauritania and South Africa has been increasing.
The three largest ports for fish landings are Piraeus, Thessaloniki, and
Kavala. Greece is a net importer of fish products, with domestic fish
production covering only l5 percent of consumption, but a traditional
exporter of sponges, for which there is shrinking demand since the
development of synthetic sponges. The government's major objectives in the
fishing sector are protection of the fish stock, modernization of the
fishing fleet, development of fish farming, and improvement of marketing and
distribution. Funds from the EC are made available to fishermen for
replacement or refitting of fishing boats and for the development of
aquaculture.
Mining
Although the mining and quarrying sector represents only 2 percent of GDP
and 0.7 percent of employment, Greece has considerable mineral wealth. With
the inclusion of processing and manufacturing metal and nonmetallic
products, it increases to about 5 percent of GDP. Greece produces bauxite,
magnesite, mixed sulfides, nickel laterites, lignite, iron pyrites,
chromite, manganese, barite, bentonite, perlite, kaolin, emery, gypsum,
pumice, talc, santorin earth, asbestos, and marble. Production and
processing tends to be concentrated among a few large firms.
The government retains a major role in the rapid development of mineral
wealth and mineral-related industries. Large government-sponsored projects
are under review to upgrade processing of raw and semiprocessed minerals,
and to contribute to economic growth as Greece becomes fully integrated into
the EC. Projects of priority interest to foreign investors are asbestos,
ferrochrome, alumina, and mineral-related chemical industries. The minerals
sector is open to foreign capital, and, in the case of large projects, to
majority Greek participation.
Using its own agencies and government-controlled companies, Greece also has
stepped up its research activities to identify new mineral reserves for use
by the government-planned integrated basic minerals and metals industry.
Greece is endowed with minerals which are not available, or available only
in limited supply in the EC, such as bauxite, magnesite, nickel, chrome,
bentonite, and perlite; its entry into the EC has given it the availability
of funds to upgrade local ores and become a major supplier of primary
industrial materials within the EC.
The five major Greek Government agencies involved in the minerals sector are
the Institute of Geological and Mining Research (IGME) for mineral research,
the Public Petroleum Company (DEP) for petroleum research and development,
the Hellenic Industrial Development Bank (ETBA) for development, and the
Hellenic Industrial and Mining Company (HIMIC). Another government agency,
the Public Power Corporation (PPC), is responsible for electricity
production.
Construction
Construction is an important industrial activity in Greece, which accounted
for 5.1 percent of GDP and employed 6.3 percent of the work force in 1991.
In terms of dwellings under construction or completed per 1,000 inhabitants,
Greece has consistently been among the leaders of the nations of the
Organization for Economic Cooperation and Development (OECD).
Housing loans are available at negotiable but in practice relatively high
interest rates. There is a small category of housing loans, such as for
first-time home buyers, which may enjoy a lower subsidized interest rate.
Construction has been affected by a drop in economic activity in the 1980s
and the beginning of the 1990s. Residential construction, however,
continues to account for a large part of fixed asset formation.
Construction, unlike other industrial activities, places a relatively small
demand on imported material. Greece has an abundance of building materials
for masonry and is an important producer and exporter of cement. Greek
construction companies and engineering contractors earn substantial foreign
exchange abroad, principally for housing developments and infrastructural
projects in North Africa and the Middle East.
Tourism
Tourism earnings in the 1970s ranked third in importance in invisible
receipts, with shipping and emigrant remittances ranking first and second
place (See Table 8.) However, since the mid-1980s, tourism has gained first
place. Tourism earnings reached $2.6 billion in 1991, with 8 million
arrivals.
Within the Ministry of National Economy, the Department of Tourism Policy
and Development was established to focus on the formulation of tourist
policy and supervise the National Tourist Organization of Greece (EOT).
Some problems confronting Greek tourism are its seasonal demand and its
heavy concentration of tourist activity in certain areas of the country, EOT
will implement a series of measures aimed at creating more facilities for
high income tourists such as luxury hotels, marinas, and casinos. Attention
is also being given to attracting business-related tourism (conferences,
etc.); expanding tourist earnings by increasing off-season tourism,
including winter tourism in northern Greece; restraining development in
overdeveloped areas (such as Rhodes); and encouraging development in new or
underutilized areas.
In the latest government reshuffle in 1992, the Prime Minister announced the
creation of a new ministry that will handle tourism and air transport
issues. Until this materializes, tourism remains under the jurisdiction of
the Ministry of National Economy. Other proposals include the establishment
of a new consultative agency, the National Tourism Council, which will
submit recommendations on tourism to the Ministry of National Economy; the
establishment of local tourism organizations throughout the country; changes
in the existing Hotel Chamber of Greece; a reorganization of the EOT; and
the privatization of hotels, restaurants, and other facilities that now
belong to EOT.
Development Plans
Starting in 1990, the Greek Government redirected economic policy towards
fiscal consolidation and structural reform to enable Greece to fully
participate in the EC Economic and Monetary Union by the end of 1999.
Instead of the traditional 5-year development plans, the government promotes
market deregulation, gradual liberalization of the financial markets, and
reduction of the role and size of the public sector. The government has
commissioned a study for a 1992-96 economic convergence plan with EC member
countries. The plan recommends fiscal consolidation measures to include
reduction of the number of public sector employees and in real pay, measures
to promote investment such as lower taxation and tax breaks, social
insurance reforms, liberalization of competition, changes in the labor
market, and denationalization. The plan aims at stabilizing the economy
while promoting development and growth.
Major Projects
Over the next decade, Greece will be pursuing several major projects which
will require significant foreign technology and equipment. These represent
excellent export opportunities for U.S. firms. Additional information on
the status of major projects listed below can be obtained from the
Department of Commerce, Office of International Major Projects (tel.:
202-377-5225) and from the Commercial Office of the American Embassy in
Athens.
Transportation Projects
Athens Subway (Metro) Expansion--A $1.3 billion project to add two new lines
to Athens' subway is scheduled to be completed by 1997. The contract has
been awarded to a consortium of 24 companies. Bechtel is the overall
project manager. Opportunities exist for U.S. firms in subcontracting, as
specialty consultants, and equipment manufacturers.
Thessaloniki Subway--The Ministry of Public Works has announced an
international tender for the construction of a subway in Thessaloniki, the
second largest city of Greece. The $340 million project will be based on a
partial self-financing basis and will cover a 9.3-kilometer line to carry an
estimated 20 million passengers per year. Construction is scheduled to
begin in 1993 and completion is planned for 1998.
Rion-Antirrion Bridge--The financial advisory contract for construction of a
four-lane, 2.5 kilometer suspension bridge to link the Peloponnese and
mainland Greece near Patras was awarded to the U.S. firm, Kidder Peabody.
Six international consortia have been selected to submit offers to build,
operate, and own the bridge at an estimated cost of $1 billion. Completion
is scheduled for 1997.
Spata Airport--Spata Airport, an international airport to be built near
Athens, is to become a major hub when completed in 1997. In 1991,
specifications were delivered to four short-listed consortia for submission
of proposals to build, operate, and own the airport. The U.S. firm, Salomon
Brothers, is the financial advisor. The project's estimated cost is $1.5
billion. The winning consortium will have the right to manage and operate
the airport for 50 years and own 65 percent. The selection will take place
by March 1993 or earlier. Supply of equipment and services will be also be
needed.
Railway Modernization--Although the 5-year development plan (1990-94) for
the Hellenic Railways Organization was announced in 1990, the bulk of the
work and purchase of equipment will be completed in 1992-94. Total
investment for the plan is approximately $510 million. The
Athens-Thessaloniki-Idomeni line, and the Athens-Corinth-Patras line will be
modernized by 1994. Fifty-five percent of the funds for the two lines will
be provided jointly by the EC Regional Development Fund, the European
Investment Bank, and the Greek State from its public investment program.
Port Handling Equipment--The Ministries of Merchant Marine and Public Works
have prepared a priority program for the upgrade and expansion of 15
international ports and 17 smaller ones. Among affected ports are Piraeus
and Thessaloniki. Some tenders have already been issued and others are
expected.
Highways Modernization--A highway modernization project involves the
conversion of the national road network to major motor highways. It
includes around 150 subprojects to improve the Athens-Lamia and
Athens-Tripolis roads. Over 60 percent of financing will be provided by the
EC.
Telecommunications Projects
Cellular Telephony--Two operating licenses will be awarded for cellular
telephony before the end of 1992. Cost of infrastructure equipment is
estimated at $140 million. The awarding of the licenses is the first step
toward the deregulation of value-added telecommunication services in
Greece. The project will require 2 to 3 years to be completed.
Digitalization Project--The PTT started a $4-5 billion program to
digitalize Greece's communications system in 1989. The program consists of
three phases for the installation of over 2.7 million digital lines. The
first two phases were awarded to a German-Swedish-Greek consortium.
A $500 million tender for one million new digital telephone lines was
announced in May 1992. The Hellenic Telecommunications Organization (OTE)
also plans to invite bids in the near future for 1.2 million more lines.
Fiber Optic Networks--The government has a priority program to install fiber
optic networks and erect earth-to-satellite stations mainly around Athens.
The estimated cost is $200 million, more than 50 percent EC funded, and
includes networks around Athens, on the island of Rhodes, and other eastern
Aegean islands.
PTT (OTE) Privatization--The Greek Government has been seriously considering
the privatization of the Hellenic Telecommunications Organization (OTE). Up
to 49 percent of OTE shares is being considered for sale to the private
sector.
Private Radio and Television--In 1990, the government permitted the
operation of private radio and TV stations, which have proliferated
rapidly. There are major opportunities for U.S. broadcasting and studio
equipment manufacturers, as well as programmers.
Irrigation/Water Supply Project
Acheloos River Diversion--The Acheloos River diversion project is long term
and involves the design, engineering, construction, and financing of the
diverting of the Acheloos River to the valley of Larissa; the construction
of the Sykia dam; the Pefkofyto water tunnel, as well as additional
projects. It is projected to be completed by the year 2000 at an estimated
cost of $1.4 billion. The EC will provide up to 30 percent of the total
financing.
Power Projects--A 10-year development plan by the Public Power Corporation
(PPC) calls for an investment of $7 billion for the construction of new
lignite, coal, hydro, and gas-fuel (combined cycle) power stations, as well
as units using renewable energy. Fifty percent of the funds will come from
the PPC; the remainder from the EC Regional Development Fund and the
European Investment Bank. The plan includes pollution control devices. Ten
international consortia, of which five are U.S.-led, have been selected to
bid on the $1.3 billion Aliveri coal-fired power station. Seven companies,
including three U.S. firms, will compete for the $1.2 billion Lavrion
combined cycle plant. Both will be on a build, own, operate, and transfer
basis.
Hospital Project
Hospital Modernization--The Ministry of Health and Welfare plans to
construct and equip many new hospitals throughout Greece and to expand
existing ones. In June 1990, Law 1892/90 was passed which permits private
clinics which will considerably expand health care services. Average real
growth for the near term is estimated at 15-20 percent annually. Demand for
sophisticated, advanced equipment offers major sales opportunities.
Industrial Projects
Alumina Project--A new agreement was signed in 1992 with Russia to build a
600,000 ton-per-year alumina plant at a cost of $350 million to be completed
by 1994-95. Russia will provide technology and some machinery. The U.S.
firm Kaiser Engineering will provide construction management services.
Goods and services beyond those coming from Russia may total $163 million.
Significant opportunities to provide goods and services will arise,
especially in consulting, engineering, assembly, erection and operational
services, transfer of technology and know-how, and direct supply of some of
the machinery and equipment for the alumina plant and other infrastructure
facilities The government is considering inclusion of a third party to
help finance the project.
Natural Gas Project--Two major contracts have been concluded with Russia and
Algeria to build a gas pipeline and to buy liquified natural gas
respectively. Total cost is $1.3 billion, which includes pipeline
construction ($175 million), and equipment and systems for regional and town
distribution networks. Foreign companies can participate in oil exploration
and drilling. Excellent market opportunities are expected over the next 2
to 3 years. Local manufacturers will be seeking licensing and joint
ventures to produce equipment and devices.
Construction Machinery and Equipment--Major infrastructure projects will
generate strong demand for earthmoving equipment, excavators, bulldozers,
scrapers, etc. to complete them. U.S. manufacturers are well known, and
there is high demand for advanced equipment.
Tourism Projects--Greece has recently modified its tourism policy to attract
higher income tourists. This modification will require the construction of
more luxury class hotels, casinos, marinas, golf courses, and ski centers.
Many existing units will also be upgraded. Legislation offering financial
grants and tax incentives has just been passed. Significant opportunities
in construction and the supply of goods and services will result.
TRADE REGULATIONS
Trade Policy
Greece is a member of the European Community (EC), the General Agreement on
Tariffs and Trade (GATT), the International Monetary Fund (IMF), the
Organization for Economic Cooperation and Development (OECD), and the
International Bank for Reconstruction and Development (IBRD).
Other members of the European Community are France, Federal Republic of
Germany, Italy, Denmark, the Netherlands, the United Kingdom, Ireland,
Belgium, Luxembourg, Spain, and Portugal. The EC is composed of the
European Coal and Steel Community (ECSC), the European Atomic Energy
Community (Euratom), and the European Economic Community (EEC), popularly
known as the Common Market.
Unlike the ECSC and Euratom, the EC was established to create a free,
unified market among the member countries. The EC provides for a common
external tariff, a common agricultural policy, a joint transportation
policy, and the free movement of goods, labor, and capital. Greece is a
participant in the European Monetary System Agreement (EMS), but does not
participate in the EMS exchange rate mechanism. The drachma is included in
the European Currency Unit (ECU) basket.
Import Control System
With certain exceptions, commodity imports into Greece are generally free of
quantitative, qualitative, or foreign exchange restrictions. However, to
maintain records of imports, certain products such as textiles, are subject
to monitoring, a procedure carried out by the List A-B Committee.
Import approval on commodities originating in any country is granted by
commercial banks upon application by the local importer. The application
must be accompanied by the original and five copies of the foreign
supplier's invoice describing in detail the commodity to be imported. In
order to control the outflow of foreign exchange, importers are required to
submit an official price list of the foreign supplier, validated by the
exporter's chamber of commerce and industry.
In the case of pharmaceuticals, cosmetics, and dietetic foods, a license
from the Ministry of Health and Welfare is required. Such licenses,
obtained by the resident representatives and distributors of foreign
manufacturers of these products, shall be issued following the advice of the
State Laboratory of the Control of Medicines (K.E.E.F.) and the National
Pharmaceuticals Organization (E.O.F).
Similarly, importers of electrical household appliances (that is, cooking
ranges, water heaters, as well as electrical medical instruments and
apparatus, etc.) are required to obtain special approval from the Ministry
of Industry. Approval is based on the foreign supplier's technical
specifications, the product's conformity to EC standards, and the safe
performance of the equipment.
Tariff Structure
The Common Customs Tariff (CCT) levies import duty rates on all dutiable
products imported from non-EC countries, except those governed by the Common
Agricultural Policy (CAP) of the Community. The CAP is a single consistent
policy governing production, prices, protection levels, and marketing
arrangements on agricultural products for the entire Community as well as
trade with non-EC countries. Import duties on agricultural products covered
by the CAP have been supplemented by a system of variable levies, the
purpose of which is to equalize the prices of imported commodities with
those of commodities produced in the Community. Trade among the EC member
states is duty-free except with Spain and Portugal, which receive
significant duty reductions as they are aligning their tariff structure with
the EC effective January 1, 1993. The Greek customs tariff is based on the
Harmonized System and is applicable to all areas of Greece. The Greek
customs tariff schedule is now fully aligned with the EC's CCT. Greek
duties applicable to EC imports were completely abolished on January 1,
1986. Most items entering Greece are assessed on a commodity, insurance,
and freight (c.i.f.), ad valorem basis.
Third-country duty rates listed in the Community's CCT are in two columns,
autonomous and conventional. The latter are lower rates and are applied to
more than 80 GATT member states, including the United States, and to
countries that have concluded agreements with the EC incorporating
most-favored-nation (MFN) treatment. The higher autonomous rates are
applied only when no conventional rates are listed. Most raw materials
enter duty free or at low rates of duty, while rates on most manufactured
goods fall within a range of 5 to 7 percent (textiles are up to 15 percent;
some electronic products up to 14 percent); and some food products have
higher rates. The metric system of weights and measures is used in customs
transactions.
The EC members extend preferential tariff treatment, under EC agreements, to
imports from members of the African, Caribbean, and Pacific Convention of
Lome, as well as from Turkey, Morocco, Tunisia, Algeria, Israel, Malta,
Lebanon, Cyprus, Egypt, Jordan, Syria, and their overseas territories. The
EC also grants tariff preferences to more than 100 developing countries and
about 40 overseas territories under the EC's Generalized System of
Preferences. Imports of nearly all semimanufactured and manufactured goods
considered to originate in these countries and territories enter the
Community duty free. Annual duty-free quotas are established for those
products considered sensitive. Certain agricultural products enter duty
free or at reduced rates. Free trade agreements have been concluded between
the EC and the European Free Trade Association (EFTA), which includes
Finland, Austria, Norway, Iceland, Sweden, and Switzerland. Under the terms
of these agreements, the EC exempts most EFTA industrial products and
certain processed agricultural products from import duties.
Information regarding Greek import duties applicable to specific products
may be obtained from the Office of European Community Affairs, International
Trade Administration, Room H-3036, U.S. Department of Commerce, Washington,
DC 20230, tel.: (202) 377-2905. Inquiries should contain a complete
product description, including harmonized number, if known. For information
on various taxes related to imports, see the section on taxation appearing
later in this publication.
Quotation and Terms of Payment
Greek importers generally expect c.i.f. quotation, except when the
purchasing company does a large amount of direct buying and provides its own
insurance. American firms should be prepared to quote prices on any basis
preferred by the prospective buyer. The terms of the offer should be
presented in a clear and detailed manner. The government has recently
liberalized the import payment process. Banks are now virtually free to
finance imports and make payment in foreign exchange without authorization
from the Bank of Greece. Greek banks have extensive correspondent
relationships with U.S. banks.
U.S. exporters should bear in mind that letters of credit and drafts are
very expensive in Greece. Banks require that the cash equivalent be
deposited before issuing any guarantees. Working capital loans now cost
more than 34 percent in interest. To get around this, Greek firms often
seek cash against documents or extended credit terms of 30-60 days or longer
from their suppliers. An additional problem concerns the size of the Greek
importing firm. Importers are normally small firms representing a number of
different product lines. Orders are usually small because importers cannot
afford to keep large stocks on hand. Therefore, U.S. supplier demands for
large orders or inventories are often met with requests for special
consideration. European suppliers understand its pecularities and are able
to supply stock more quickly than their American counterparts. Thus, they
are willing to provide easier credit terms to Greek importers than American
suppliers.
U.S. banks and U.S. firms should exercise caution in extending credit to
Greek businesses. It is important to obtain full credit background
information on any prospective recipient of liberal financing terms. Greek
firms with an unhealthy debt/equity ratio are vulnerable to changing
interest rates. Therefore, it is a good idea to run periodic credit checks,
even on businesses which have good payment records.
Drafts and letters of credit should clearly spell out all requirements for
the release of goods, specify all currencies, payment terms, and details of
quality/quantity of goods.
The settlement of the value of goods imported may be effected by:
(1) Letter of credit (L/C)--permitted for all imports. A variation of the
L/C is the "irrevocable documentary payment order." Under this system, the
foreign supplier and the Greek importer agree to have a percentage of value
of the order paid against delivery of shipping documents at point of
shipment or in advance of shipment. The balance is payable at destination
against documents with or without a sight draft attached. The Greek
importer is required to put up a cash margin equal to the amount the foreign
supplier will be paid against delivery of shipping documents, which makes
the cost of financing lower than if payment were effected by L/C, requiring
a margin equal to the full value of the order.
(2) Cash against documents (sight draft)
(3) Acceptance of time draft--Whenever possible, Greek importers usually
prefer to pay by means of sight draft rather than letter of credit, thus
relieving them of the higher cost and administrative banking fee. The
maximum time limit on a time draft is 5 months. This restriction however
does not apply when the goods imported are capital goods, raw materials, or
when the end-user is a government agency. Contacts at the Bank of Greece
state that this 5-month restriction will probably be withdrawn in the future.
The decision as to whether to request payment by sight draft or letter of
credit depends, of course, on the supplier's experience with the individual
Greek firms. Information on specific Greek firms is available from the U.S.
Department of Commerce through its World Traders Data Reports service.
Greek and American banks and private agencies also provide credit
information services.
There are no bill collection agencies in Greece. If a case proves
troublesome, the debt can be collected only through the courts, and such a
legal process is usually long and expensive. A list of Greek attorneys is
available from the Office of Citizens Consular Services for Europe, Room
4811, U.S. Department of State, Washington, DC 20520.
Shipping Documents
In general, the following documents must accompany each shipment:
a signed commercial invoice in at least six copies; a full set of shipping
documents, that is, bill of lading or air waybill depending upon the method
of transport; certificate of origin; and an insurance policy. Additionally,
other documents may be required for special cases and are issued by
authorities in the country of origin, for example, sanitary or phytosanitary
certificate, packing list, weighing list, or inspection certificate.
Certificate-of-Origin Requirements
The certificate of origin can be requested by Greek Customs on a variety of
products, such as chinaware and toys. However, in reality it is requested
mainly for products on which Greece has import quotas, that is, textiles and
steel. The Greek importer of the product should be able to inform the
American exporter about the necessity of including a certificate of origin.
The certificate of origin is usually prepared separately containing the name
and the location of the natural or industrial producer of the goods; the
type of containers (cases, bags, boxes, cartons, etc.), their number and the
marks and number on them; the kind of goods and their weight (net or gross),
or their volume or their quantity; the full name of the consignee and
consignor; and the means of transport of the shipment.
The agencies that may issue certificates of origin are local U.S. chambers
of commerce.
In the case of a manufacturing firm exporting its products, a declaration
made on the firm's export invoice stating that the goods to be exported were
manufactured in its establishment may be accepted instead of a separate
certificate of origin. In this case, a local U.S. chamber of commerce or
other authority must certify that the signature is authentic, that the firm
is a manufacturing one, and that the goods listed in the invoice were
produced by the firm. A foreign product imported into the United States and
processed there for reexport may be treated by Greek Customs as a U.S.
product (that is, a product originating in the United States) only if a
functionally new product has resulted from the processing or if its value
was thereby increased by more than 25 percent.
If U.S. products are imported into Greece from stocks held in transit at a
foreign port, the certificate of origin may be issued by the customs
authorities located in the port, certifying that the goods originated in the
United States. This certificate must also be authenticated by a Greek
Consulate. If such a certificate cannot be obtained from the customs
authorities, it may be issued by the Greek Consulate on the basis of data
certifying the original country of production.
Import Regulations
Marking and Labeling--All products--with the exception of blankets and
fabrics, agricultural implements, all types of nails, wire, steel pipes,
steel sheets (galvanized or not), glass, glassware and spectacles, oils and
greases, and pens and pencils--are subject to labeling and marking
requirements. Blankets and fabrics produced locally for export are also
subject to such requirements. Moreover, there are special labeling
regulations for pharmaceuticals, cosmetics, foodstuffs, alcoholic beverages,
yarns, and thread. Labels on food product containers must identify in Greek
the nature of the content and indicate the weight in metric measurement, the
manufacturer, the country of origin, and, for certain products, the date of
expiration. If of foreign origin, the name and address of the Greek
representative is also required. The labels may be installed by the
importer after the products' importation but before they are placed on the
market.
Samples--Items of no commercial value may enter duty free. Samples with
commercial value, when consigned to accredited local agents or distributors
of foreign manufacturers and suppliers, are exempt from duties and taxes in
amounts not to exceed 4,000 drachmas per calendar year. Other samples are
subject to import charges, unless made unsaleable as merchandise. Valuable
samples brought in by commercial travelers or otherwise imported temporarily
may enter duty free under a deposit equivalent to duties and taxes payable,
refunded upon reexportation within 6 months.
As a result of various customs conventions in which both Greece and the
United States are parties, a simplified procedure in the form of a "carnet"
is available for importing commercial samples and advertising materials into
Greece for a limited time. The carnet is a customs document which
eliminates the payment of import duties and taxes for temporary imports. To
obtain a carnet, the U.S. firm should contact the U.S. Council of the
International Chamber of Commerce, 1212 Avenue of the Americas, New York, NY
11036, tel.: (212) 354-4480, fax: (212) 575-0327.
Temporary Duty Relief--Greece has no customs drawback. There is temporary
relief, however, from import duties on raw materials imported for processing
into products which are going to be exported to non-EC countries. Approval
for duty-free imports of raw material to be processed to finished product is
granted on an ad hoc basis. Relief from import duties is generally granted
if: (1) no like or substitute products are produced in the EC; (2)
considerable difference in price exists between domestically produced versus
imported raw material from non-EC countries; (3) a special quality raw
material is required and not available in the EC or is produced in
insufficient quantities; and, (4) the foreign purchaser requires a special
raw material, not available in the EC in order to purchase the finished
product.
At the time of reexport, the customs authorities determine whether all the
imported raw material has been used and collects import duties only for that
amount of raw material not accounted for in the finished goods being
exported. If the finished good is intended for distribution in the domestic
market or another EC member country, import duties on raw materials are
collected at the time of importation.
Free Ports and Zones
Greece has three free trade zones located at the Piraeus, Thessaloniki, and
Heraklion port areas. Goods of foreign origin may be brought into the free
trade zones without payment of customs duties or other taxes, and may remain
free of all duties and taxes while held in the zones or if subsequently
transshipped or reexported. Similarly, documents pertaining to the receipt,
storage, or transfer of goods within the zones are free of stamp taxes.
Handling operations should be carried out according to EC regulations
2504/88 and 2562/90. Transit goods may be held in the zones free of bond.
The zones may be used for repacking, sorting, and relabeling operations.
Assembly and manufacture of goods is carried out on a small scale only at
the Thessaloniki Free Zone. Time of storage is unlimited as long as the
warehousing charges are paid promptly every 6 months.
Warehousing
In addition to storage in the free zones of Piraeus and Thessaloniki, goods
may also be stored in government-owned bonded warehouses outside the
precincts of customs houses, in the warehouses of the Privileged General
Company (government warehouses) or in the company's annexes, if authorized
by the customs authorities.
The storage of goods in private warehouses is prohibited. Special laws to
permit private warehousing are expected to be issued by the end of 1993.
Currently, in exceptional cases, however, the storage of the following types
of goods in such warehouses may be permitted by the Customs authorities
provided adequate or suitable government-owned warehouses or warehouses
operated by the Privileged General Company are not available: alcohol,
molasses, perishable goods, lubricating oils and fuels (solid and liquid),
sponges, explosives, asphalt, and malt. In addition, gummed paper and paper
for playing cards also may be accepted, provided they are to be used by the
Greek Government. The merchandise to be stored is assessed, for duty, and a
guarantee is posted to cover the full amount of the duties and taxes payable.
The storage of liquid fuel and lubricating oils in barges or tankers is
subject to the approval of the Ministry of Finance. In-transit shipments
may be stored in bonded warehouses in Greece in the name of the foreign
supplier or of the local bank handling the shipping documents.
Technical Standards
Greece uses the metric system. It is recommended that the system be used,
if possible, in every quotation where measurement or weight is involved.
Electric current for domestic and commercial applications is generally 220
volts, 50 cycles, 1 and 3 phases. For industry, electric current is 380
volts, 50 cycles, 3 phases.
DISTRIBUTION AND SALES CHANNELS
Importers
It is estimated that 80 percent of Greece's import trade is handled either
through sales agents or through distributors. Sales agents operate on a
purchase basis without effecting imports for their own account. Agency
agreements are not required to be exclusive and can be signed for a limited
period of time, for example, 1 or 2 years. Distributors operate on a
wholesale basis (and, in some cases, retail) with exclusive sales rights for
certain districts or for the entire country. Importers usually maintain
their offices in Athens, Piraeus, or Thessaloniki with branch offices,
subagents, and traveling sales staffs covering the rest of the country.
Lately there have been instances of smaller importers joining to form
cooperatives.
Sales agents of foreign nationality are required to obtain an operating
license from a special committee of the Athens Chamber of Commerce. The
issuance of the license is subject to the requirement that Greek nationals
are accorded similar treatment in the applicant's country of residence.
According to Law 2765/1941, reciprocity must be proven by a certificate from
a Greek consular officer stationed in the applicant's country. Applications
for a sales agent's license are screened for reputation, experience, and
financial standing. Manufacturer's agents are required to sell any and all
amounts of foreign exchange earned in commissions to the Bank of Greece for
drachmas, at the current rate of exchange.
Wholesale and Retail Channels
Retail and wholesale trade is characterized by small, family-owned and
operated businesses, each of which deals in a narrow range of goods. There
are 300,000 trading establishments in Greece. There are 7,700 corporations
and limited liability companies engaged in wholesale trade and 3,200
corporations and limited liability companies handling retail trade.
There are a few department stores and supermarkets, but a considerable
volume of retail sales are still made by small shops and grocery stores.
There is practically no mail or telephone order service in Greece.
Door-to-door selling exists on a limited scale.
Price Controls
Although there has been increasing relaxation of price controls, Greece has
traditionally used a complex system of price controls administered by the
Ministry of Commerce to restrain inflation. Goods and services are
classified into three groups:
(1) With fixed prices or with controlled prices, previously called
essentials-in-short-supply. This category includes bread, flour,
coffee, meat, and agricultural equipment.
(2) Controlled for excess profits, previously called
essentials-in-adequate-supply. Goods in this category are subject
to price control only for excessive profit, and cases of alleged
excess profit are examined by a special committee on a case-by-case
basis. This category includes goods and services such as cars,
motorcycles, auto repairs, alcoholic beverages, snacks, etc.
(3) With no price controls (nonessentials). This category includes
luxury items.
Government Procurement
Foreign purchases by the Greek Government of capital equipment and supplies
play an important role in the country's commercial environment. Law
1797/1988 sets forth general policies governing Greek Government procurement
contracts. Presidential Decree 173/1990 gives detailed instructions on how
the Greek Government procurement system operates with each
government-controlled entity.
The Greek Government and its quasi-governmental agencies are required by law
to procure their purchases through international tenders. The bulk of
international government procurement is undertaken by two quasi-governmental
agencies, the Public Power Corporation (PPC) and the Hellenic
Telecommunications Organization (OTE). Law 2000/1991 permits major
government agencies to process their own supply and purchasing programs
without the supervision and control of the Ministry of Commerce.
It is a standard requirement that all bidders post a bond, usually
5 percent of the bid value, for all tenders issued by the Greek Government
and quasi-governmental agencies. Bids not accompanied by bonds are
invalid. This guarantee is returned to bidders whose bids have not been
accepted, within 5 days after the award of contract.
After a bid is approved, the successful bidder is invited to sign a contract
which incorporates the terms and conditions of the bid including any
additions or amendments. At that time, a performance bond, usually equal to
10 percent of the bid value, must be posted by the firm, which is retained
as a guaranty of its performance.
Bids for the construction of public works are governed by special
legislation. Normally, construction bids are open only to local firms.
However, when projects are complex, requiring a high degree of technical
expertise, or when externally financed, international bids are invited.
Special legislation also governs the construction of military projects.
If a particular commodity or service can be supplied by a local firm, the
tender may be limited to local firms. Another means of directing purchases
to local firms is to stipulate that foreign bidders must submit their offers
in joint ventures with local enterprises. In major projects, to the largest
extent possible, utilization of local resources (engineering services,
manpower supplies, manufacturing, or assembly) is an important factor in bid
evaluations. Another requirement is the bidder's willingness to receive
partial or full payment of the contract in Greek products or with specific
conditions, commonly known as countertrade or offsets. Foreign as well as
local bidders must quote and accept payment in Greek drachmas.
Up until May 31, 1992, all government procurement was centralized at the
Ministry of Commerce. Beginning June 1, 1992, it was decentralized and each
government agency is now conducting its own procurement.
Procurement for infrastructure projects sponsored by the North Atlantic
Treaty Organization (NATO) is open to international competitive bidding as
described in a brochure on the NATO international bidding program, Doing
Business with NATO. This brochure contains a list of Greek Government
agencies connected with NATO projects and also involved with ordinary
procurement outside of NATO. U.S. firms not already certified to
participate in NATO bidding should send a resume of their qualifications to
the Office of Telecommunications (Strategic Systems/NATO), Room H-1001A,
U.S. Department of Commerce, Washington, D.C. 20230.
In order to supplement the efforts of local agents of American firms in
Greece and inform those U.S. firms without agents in Greece, the American
Embassy in Athens reports significant tender announcements to the U.S.
Department of Commerce in Washington. The Department disseminates this
information in two publications: Business America and the Commerce Business
Daily. The time interval between the tender announcement and the bid
deadline varies but usually allows sufficient time for the American
suppliers to participate.
A listing of the principal procurement agencies follows:
Ministry of Commerce
20 Kaningos St.
101 81 Athens
Tel.: 01/361-6240-54
Telex: 21 5282, 21-6735 DKG GR
Fax: 01/364-2642
Ministry of Public Works
182 Char. Trikoupi St.
101 78 Athens
Tel.: 01/644-9113, 644-7324
Telex: 21 5018, 22 5259 YDER GR
Fax: 01/642-6836
Ministry of Defense
Pentagono, Holargos
151 61 Athens
Tel.: 01/646-5201
Telex: 21 6780 RKQA GR
Fax: 01/644-3788
Ministry of Transportation & Communications
13 Xenofontos St.
105 57 Athens
Tel.: 01/325-1211-9
Telex: 21 6369 YSYG GR
Fax: 01/324-7400
Ministry of Industry, Energy, & Technology
80 Michalakopoulou St.
101 92 Athens
Tel: 01/770-8615-19
Fax: 01/777-2485
Civil Aviation Authority
1 Vassileos Georgiou St.
GR-166 04 Hellenikon
Athens
Tel.: 01/894-4263
Telex: 214444 LGAC GR
Fax: 01/894-7101
Public Power Corporation (PPC)
30 Chalkokondyli St.
GR-104 32 Athens
Tel.: 01/523-4301/523-0301
Telex: 216052 DEI GR
Fax: 01/523-9845
Public Petroleum Corp. (DEP-EKY)
357-359 Leoforos Messoghion
GR-152 31 Halandri, Athens
Tel.: 01/650-1357
Telex: 210897 DEP GR
Fax: 01/650-1383
Public Petroleum Corp. (DEP, SA)
199 Kifissias Ave.
GR-151 24 Amaroussion, Athens
Tel.: 01/806-9301/10
Telex: 2215-83
Fax: 01/806-9317
Hellenic Telecommunications Organization (OTE)
Sub-Directorate of Supplies
OTE Building
99 Kifissias Ave.
GR-151 24 Amaroussion, Athens
Tel.: 01/123-1 or 01/611-8256
Telex: 215487 DLK GR
Fax: 01/611-7456
Greek Atomic Energy Commission
Nuclear Research Center "Democritos"
Aghia Paraskevi Attikis
Athens
Tel.: 01/651-3111/19, 651-8919, 651-9219
Telex: 216199
Fax: 01/651-9180
Hellenic Railways Corporation (OSE)
1 Karolou St.
GR-104 37 Athens
Tel.: 01/524-1510
Telex: 215187 CEHA GR
Fax: 01/524-3290
Piraeus Port Authority
2 Defteras Merarchias St.
GR-185 35 Piraeus
Tel.: 452-0910/19
Telex: 212187 OLP GR
Fax: 01/452-0852
Thessaloniki Port Authority
Organisimos Limenos Thessalonikis (OLTH)
Purchasing Department
P.O. Box 10467
GR-541 10 Thessaloniki
Tel: 31/593-217
Telex: 41-2536 THPA GR
Fax: 31/530-729
Institute of Social Insurance (IKA)
Directorate of Supplies
8 Aghiou Constantinou St.
GR-104 31 Athens
Tel.: 01/522-2148, 523-6060
Fax: 01/522-9180
Agricultural Bank of Greece (ATE)
Supplies Service
23 Panepistimiou St.
Athens
Tel.: 01/323-0521/7 or 323-6253
Telex: 215810 AGROBANK
Fax: 01/329-8713
Hellenic Radio-Television (ERT-1)
432 Messogion Ave.
GR-153 42 Agia Parasevi
Athens
Tel.: 01/639-5970
Telex: 222635
Fax: 01/639-6504
Hellenic Radio-Television (ERT-2)
136 Messogion Ave.
GR-156 69 Athens
Tel.: 01/770-1911
Telex: 210886, 214439
Fax: 01/779-1917
Ministry of National Defense
Hellenic Air Force General Staff
Procurement Office
40 Soutsou St.
GR-115 21 Athens
Tel.: 01/644-4650/644-7738
Telex: 218809
Fax: 01/644-4650
Hellenic Navy Command
Logistics Supply Center
2 Paparigopoulou St.
GR-105 61 Athens
Tel./Fax: 01/323-0781
Hellenic Navy Command
Supply Center (KEFN)
Skaramangas, Attica
Tel./Fax: 01/557-2913
Telex: 216483
Customs Authority
Director General of Customs
Ministry of Finance
10 Karageorgi Servias
GR-101 84 Athens
Telex: (0601) 214001 YOIK gr
Fax: 01/323-2240
Business Associations
Various Greek local chambers of commerce and industry, located in the major
cities, are important commercial associations. These chambers are well
known and correspondence can be addressed to the individual chamber in the
Greek city of interest. A few of these chambers and other sources of
commercial information are included below.
American-Hellenic Chamber of Commerce
16 Kanari St.
GR-106 74 Athens, Greece
Tel:. (30-1) 363-6407
Telex: 223063 AMCH
Fax: (30-1) 361-0170
American-Hellenic Chamber of Commerce
16 Kanari Street
106 74 Athens, Greece
Tel.: (30-1) 01/363-6407
Telex: 223063 AMCH
Fax: (30-1) 01/361-0170
American-Hellenic Chamber of Commerce
Committee of Northern Greece
20 Venizelou Street
546 24 Thessaloniki
Tel: 31/225-162
Fax: 31/286-453
Union of Chambers of Commerce and Industry
7 Academias Street
GR-106 71 Athens
Tel.: 01/360-2411
Telex: 215707
Fax: 01/361-6464
Athens Chamber of Commerce and Industry
7 Academias St.
106 71 Athens
Tel.: 01/360-2411, 360-4815
Telex: 215707 EBEA GR
Fax: 01/360-7897
Pireaus Chamber of Commerce and Industry
1 Loudovikou St. Rousvelt Sq.
185 31 Piraeus
Tel.: 01/417-7241
Telex: 212170 EBEP GR
Fax: 01/417-8680
Thessaloniki Chamber of Commerce and Industry
29 Tsimiski St.
546 24 Thessaloniki
Tel.: 31/275-341, 276-016
Telex: 412115 CHCI GR
Fax: 31/230-237
Federation of Greek Industries
5 Xenofontos St.
105 58 Athens
Tel.: 01/323-7325-9
Telex: 21-6247 BIOM GR
Fax: 01/322-2929
Advertising
Except for prohibiting television ads on cigarettes, war game toys, and
pharmaceutical products, Greece has no other advertising restrictions. The
Greek Advertising Agencies Association has instituted a "gentlemen's
agreement" to maintain a certain level of quality and adopt an acceptable
code of ethics in advertising.
Advertising has progressed rapidly in recent years. The Athens-Piraeus area
and Thessaloniki are the principal advertising centers since they represent
the largest consumer markets in Greece. An advertiser can choose to
advertise by newspaper, magazine, motion picture theater, direct mail,
radio, and television.
With the rapid increase in TV set ownership and private TV stations, there
has been a dramatic shift to TV advertising. Advertising in motion picture
theaters has declined and is used mainly for cigarettes, while newspaper
advertising is still important but has decreased.
The major advertising firms in Greece belong to the Greek Association of
Advertising Agencies (EDEE) located at 12 Ravine Street, GR-115 21 Athens,
Greece.
TRANSPORTATION, COMMUNICATIONS, AND POWER
Transportation
Greece has 20 main ports. A 1986 port study calls for the modernization and
expansion of commercial ports from 1986-2010. The following ports will be
affected: Alexandroupolis, Piraeus, Thessaloniki, Patras, Volos,
Igoumenitsa, Lavrio, Chalkis, Syros, Rhodos, Kavala, Kalamata, and Mytilini,
Eleusis, and Heraklion (on the island of Crete). The bulk of Greek industry
is located around these ports. Shipping services from the United States are
provided by American Export Lines, Farrell Lines, Prudential, and Sea Land
Service on a regularly scheduled basis with port calls at Piraeus,
Thessaloniki, and Patras. Seaborne cargo shipped from the East Coast of the
United States reaches Greece within 11 to 12 days.
Inland surface transportation is composed of a road and railroad network.
In 1991, a program was announced to construct 1,500 kilometers of highways
at an estimated cost of $2.8 billion, over 50 percent financed by the EC.
The emphasis on new highways is to ameliorate congested infrastructure,
complete the network, decrease distances between major cities, upgrade
services, and facilitate traffic throughout the nation.
An ambitious expansion and modernization of the Hellenic Railways is planned
under the 5-year development plan (1990-94). The Hellenic Railways
Organization (OSE), a government-owned agency, operates the railroad
system. The bulk of the work and purchase of equipment will be completed in
the next 2 years, with a total investment estimated at $510 million. The
length of the railroad network is 2,500 kilometers composed of 1,500
kilometers of standard gauge lines connecting Greece with Yugoslavia and
Western Europe in the north and with Turkey and the Middle East in the
east. The remainder consists of narrow gauge tracks for international
connections.
American international air service to Greece is provided by Delta and United
Airlines. In 1991, a program was inaugurated to permit private but
Greek-owned companies to operate nonregular, charter flights (passenger and
cargo) domestically and internationally. Olympic Airways, the
government-owned national carrier, was also reorganized into three
self-sufficient divisions: Olympic Airways, Olympic Aviation, and Olympic
Charter. Privatization of 49 percent of Olympic's equity is planned.
Communications
Greece has 4.1 million telephones, a density of 40 per 100 inhabitants.
There are 1.05 million pending telephone applications, with a 4-year waiting
period for hook-up. Direct dial telephone service to 88 countries and
direct dial teletype service to 22 countries are available. Fax machines
have become a standard business tool in Greece.
The Hellenic Telecommunications Organization (OTE), a government agency,
exclusively operates all telephone and radio communications in Greece. It
is deregulating and privatizing all telephone services, except basic
telephone systems, especially value-added services. OTE is also responsible
for satellite communications. Coastal and transoceanic radio-telegraph,
telephone, and teletype communications are served through six coastal
stations.
A satellite station also links Greece with the Intelsat system. Submarine
coaxial cables link Greece with France, Cyprus, Lebanon, Italy, and Syria.
Radio-electric networks for TV transmission connect Greece with Yugoslavia,
Bulgaria, Italy, and Turkey while a tropospheric scatter links Greece with
Cyprus and Libya. ERT broadcasts nationwide over three channels and is
operated by the government agency Hellenic Radio-Television. There are
several Greek private television stations operating regionally, and three
cable TV networks which retransmit the national TV channels and some
satellite broadcasting. Nine hundred private and municipal radio stations
are in operation.
Power
Greek dependence on imported electricity is low but rising. A clear aim of
the Public Power Corporation (PPC), the state-owned electrical company, is
to minimize dependence on imports. Demand for electricity will grow, but
efforts to minimize oil consumption to generate electricity is also
continuing. In l990, Greece's extensive national grid produced 32 billion
kilowatt hours of electricity. The breakdown of electrical output was 73
percent from lignite, 21 percent from oil, 6 percent from hydropower, and 2
percent imported electrical current. There are no nuclear power plants in
Greece and none are planned.
The PPC's $7 billion 10-year development plan (1990-2000) calls for the
construction of 5 lignite-fired power stations, 1 coal-fired station, 2
natural gas stations, 34 hydroelectric plants, and solar, wind, and
geothermal units. For the first time, three combined-cycle power stations
will be constructed capable of burning natural gas, oil, or lignite. PPC
reorganized into three self-sufficient divisions in 1992: mining; energy
production-transmission-transport; and distribution.
There are no indigenous hard coal reserves in Greece. PPC started importing
bituminous coal in 1985 for electrical generation in order to burn it in a
mixture with locally mined low calorific value lignite. The main consumers
of imported coal are the four cement companies. Greece is the leading
European country in solar energy applications, especially solar collectors
for water heating installations. Pilot projects for geothermal energy are
in various stages of completion, especially on the islands of Milos and
Nissyros. Wind parks are in place on the islands of Kythnos, Mykonos, and
Karpathos. Photovoltaic energy is expected to play a role in the future
electrification of remote areas.
There are four oil refineries in operation: the two state-owned refineries:
Aspropyrgos, near Athens, with an annual crude refining capacity of 5.8
million metric ton capacity; and the Greek Fuels & Mineral Oils (EKO)
formerly ESSO Pappas, in Thessaloniki at 3.5 million metric tons; and the
two privately owned oil refineries: Petrola Hellas at Eleusis and the Motor
Oil Vardinoyannis refinery at Aghii Theodori with a combined capacity of 9
million tons. The two state-owned refineries hold international tenders for
the procurement of their crude oil needs, while the privately owned
refineries buy directly. Domestic production of petroleum products is
distributed through established marketers.
CREDIT AND BANKING
Foreign Exchange Regulations
The unit of currency used in Greece is the drachma. Greek coins are issued
in 1, 2, 5, 10, 20, 50, and 100 drachmas denominations. The drachma is not
yet fully convertible; its exchange value is determined daily by an
interbank committee with the participation of the central bank (Bank of
Greece). Exchange rate policy is aimed at maintaining the competitiveness
of Greek exports while minimizing inflationary pressures from abroad. For
U.S. currency conversion approximately 180-190 drachmas equal US$1. Greece
is a member of the European Monetary System (EMS). The drachma is included
in the European Curency Unit (ECU) basket, but does not participate in the
exchange rate mechanism (ERM). The Bank of Greece plans to include the
drachma in the ERM in 1993 when inflation is expected to drop to a single
digit figure.
Consumer Financing
Installment selling has been practiced in Greece on an increasing scale.
The seller keeps the title to the article sold until the purchaser acquires
ownership with the final payment. Commercial banks may finance private
buyers directly, on terms mutually negotiated between the bank and the
purchaser. This practice, however, is gradually losing its importance and
use, due mainly to the increasing trend of credit card facilities in Greece.
Franchising
Franchising was practically unknown in Greece until the early eighties. It
is currently practiced by a number of foreign and domestic businesses,
mainly in fast foods and consumer goods.
Leasing
A leasing law introduced in l986 governs leasing of equipment. The law
provides for the operation in Greece of leasing companies, both Greek and
foreign, under a license issued by the Bank of Greece. The license to lease
equipment and machinery, to be used for business purposes only, is for a
minimum of 3 years. The minimum amount of paid-in-share capital to set up
the leasing company is the same as required to establish a bank branch if
the parent company is not a bank operating in Greece. For a new leasing
company affiliated with a bank operating in Greece, the minimum amount of
paid-in-share capital is half of that required to establish a bank branch.
Eight banks have established leasing subsidiaries: Citibank, Credit Bank,
Hellenic Industrial Development Bank (ETVA), the Agricultural Bank of
Greece, Ergobank, ABN-AMRO, BNP with Commercial Bank, and National Bank with
Credit Lyonnais.
Banking System
Greece is in the process of liberalizing and modernizing its banking system
in line with EC banking directives. The seven state-controlled banks
account for 80 percent of the banking system. Banks constitute the main
source of finance in the absence of a developed money market. Bond and
equity markets are still underdeveloped, but the Greek Government has
initiated legislation to encourage their growth, including a venture capital
market. Capital market growth has been hampered by the predominance of
small, family-owned firms, and the tendency to invest in real estate and
government bonds, or hold savings in bank deposits.
In June 1992, the Greek Government submitted to Parliament legislation which
would harmonize Greek banking laws with the EC second banking directive.
Until such new legislation enters in force, laws governing establishment of
banks in Greece continue to be quite restrictive.
The establishment of a foreign bank in Greece must be approved by the
central bank. Foreign participation in the capital of a Greek bank cannot
exceed 40 percent. This limitation does not apply to banks of EC
countries. State-controlled banks do not lend themselves to foreign
participation. Therefore, Greece's three leading banks (the National Bank
of Greece, the Commercial Bank of Greece, and the Ionian Bank) are ruled out
as possible partners of foreign banks. Foreign participation in local
banking is still concentrated in the major cities of Athens, Piraeus, and
Thessaloniki.
The Bank of Greece, which is the central bank, has the exclusive right to
issue paper currency; it acts as the depository for government accounts and
for mandatory deposits by commercial banks and legal entities. The bank
acts as a financial and fiduciary agent for the government's monetary policy
decisions. It also supervises the commercial banks and establishes ceilings
on specific types of credit and investment.
As part of a major program of bank-system reform, the role played by the
Bank of Greece is expected to be modified over time. This modification
would limit the bank's regulatory mechanisms to those more commonly used by
developed economies' central banks (for example, regulation of liquidity
through manipulation of the discount rate, rather than through the complex
administrative controls currently in use).
Interest rates are freely determined by credit institutions except for the
minimum interest rate on savings deposits which is still determined by the
Bank of Greece. In fact, the government influences interest rates through
the minimum interest rate on savings deposits, the issuance and selling of
treasury bills and bonds on the open market, and by changes in reserve
requirements. The government is gradually phasing out restrictions
pertaining to reserve requirements.
Checks are used for commercial transactions, but usage is still limited.
Credit cards are available. Greece and most of the liabilities of the
commercial banks are in the form of savings deposits. Approximately
one-fourth of bank loans are long term, with the rest extended under
short-to-medium terms.
The Greek banking system consists of the following: a central bank, 40
commercial banks, 3 investment banks, 3 specialized banks, the Postal
Savings Bank, and the Consignments and Loans Bank. Twenty-one of the
commercial banks are foreign, five of which are American. Of the Greek
commercial banks, the largest is the National Bank of Greece, which accounts
for about 55 percent of the country's banking business, followed by the
Commercial Bank of Greece and the Ionian Bank of Greece, which together
handle another 20 percent of banking activities. Following is a list of
these banks:
The Central Bank
Bank of Greece
Greek Commercial Banks
National Bank of Greece
Commercial Bank of Greece
Ionian Bank
Bank of Crete
Bank of Attica
Bank of Piraeus
General Hellenic Bank
Traders' Credit Bank
Ergobank
Macedonia-Thrace Bank
Arab-Hellenic Bank
Bank of Central Greece
Franco-Hellenique de Commerce Int'l et Maritime
Credit Bank
Dorian Bank
Egnatia Bank
Euromerchant Bank
Xiosbank
Specialized Banking Institutions
Agricultural Bank of Greece
National Mortgage Bank of Greece
National Housing Bank
Investment Banks
Hellenic Industrial Development Bank (ETBA)
National Investment Bank for Industrial Development (ETEBA)
(under the National Bank of Greece)
Investment Bank S.A.( under the Commercial Bank of Greece)
Postal Savings Banks
Consignments/Loans Fund
U.S. Commercial Banks
American Express International Banking Corporation
Bank of America
Chase Manhattan Bank
Citibank, N.A.
Citibank Shipping Bank S.A.
Other Foreign Banks
Algemene Bank Nederland N.V (ABN AMRO Bank)
Arab Bank
Bank of Nova Scotia
Bank Saderat Iran
Banque Paribas
Barclays Bank International Ltd.
Credit Commercial de France
ANZ Grindley's Bank Ltd
Midland Bank Ltd.
National Westminster Bank
Royal Bank of Scotland
Societe Generale
Scotia Bank
Bank of Cyprus
Bayerische Vereinsbank
Banqu Nationale de Paris
Interbank of Greece
Representative Offices
Banca Commerciale Italiana (Italy)
Credit Industriel et Commercial (France)
Credit Lyonnais (France)
Dresdner Bank S.A. (Germany)
European Investment Bank-EIB (EEC)
Morgan Grenfell and Co. Ltd. (England)
National Australia Bank Ltd. (Australia)
Instituto Bancario San Paolo di Torino (Italy)
AWT Int'l Trade and Finance Corp. (Austria)
Banca D'Italia (Italy)
Banca Popolare di Milano (Italy)
Banque Indo-Suez (France)
FOREIGN INVESTMENT IN GREECE
Investment Climate
Greece welcomes foreign investment provided it contributes to the economic
development in Greece by means of export expansion, import substitution,
supply of modern technology and know-how, or job creation. In line with
this policy, instruments of approval, depending upon the nature of the
project, include one or more performance requirements, which are not
introduced unilaterally but are negotiated with the investor. Local content
and export requirements are taken into consideration by the Greek
authorities but are not mandatory prerequisites for the approval of an
investment.
Foreign investment as well as private investment has been excluded from
sectors of the economy under government administration or control such as
rail and air transport, telecommunications, broadcasting, and armaments.
With the introduction of privatization of the state sector, the number of
sectors under government control is expected to diminish. In general,
however, there is no statutory restriction on the percentage of foreign
ownership of any local enterprise or joint venture.
The Greek Government has attempted to stimulate the Greek economy through
attracting foreign capital. Greece's proximity to Middle Eastern and Balkan
markets, the availability of relatively inexpensive and trained labor, and
its membership in the European Community offer advantages to foreign
investors.
As of 1991, U.S. investment in Greece was estimated at $900 million,
distributed in banking, oil distribution, pharmaceuticals, insurance, foods,
franchises, and other services.
Foreign Investment Laws
To attract foreign investment, several investment laws have been
promulgated. They are briefly highlighted below.
Law 2687/l953--The most important law governing foreign investment in Greece
is Law 2687/1953, which relates to capital inflows for "productive
investments." The rights of investors who import capital into Greece under
this law are constitutionally protected. Productive investment is defined
as all projects designed to promote national production or tourism.
Enterprises under Law 2687 may now repatriate net profits immediately.
Law 1892/1990--This law supersedes Law 1262/1982 and broadens the definition
of sectors considered productive investment. It changes the investment
incentives regime from a grant-based to a tax-based one. Other provisions
relax labor market rigidities, reduce the role of the public sector,
establish procedures for selling state-controlled companies, and improve
public administration. Overall, the law reflects a more market-oriented
philosophy.
Incentives are provided to productive investments in support of Greek
economic and regional development. To serve this purpose, Greece is divided
into four development areas: A, B, C, and D with special incentives for
Thrace. The incentives are provided on a rising scale from Area A to Area
D, and Thrace. The area designations differ for manufacturing and tourism.
Incentives are more advantageous in Area D, gradually diminishing as
development increases. Incentives are in the form of: (1) investment
grants, (2) interest rate subsidies, (3) tax allowances, (4) reduced tax
rates, and (5) accelerated depreciation.
Legislative Decree 1297/1972--Decree 1297/1972 governs mergers between Greek
business firms. Its aim is to encourage the creation of stronger economic
units to meet increasing competition in domestic and international trade.
To encourage mergers, where appropriate, the law provides various tax
incentives. Decree 1297 does not cover mergers between Greece and foreign
firms nor the acquisition of a Greek firm by a foreign resident. The
procedures governing such practice are complex.
Laws 89/l967, 378/l968, and 814/1978--These laws provide special benefits to
branches established in Greece of foreign commercial, industrial, and
shipping companies exclusively for conducting business outside of Greece,
primarily in the Middle East and North Africa. Offices operating under this
legislation enjoy significant privileges in particular with regard to having
no fiscal or tax liability for the business which they conduct outside
Greece. They are not permitted to earn drachma income nor conduct
commercial activity within the Greek State. Foreign personnel are granted
the necessary work and residence permits as well as certain duty-free
privileges.
A special license must be obtained from the appropriate directorate of the
Ministry of National Economy for the commercial and industrial companies and
from the Ministry of Merchant Marine for the shipping companies. Within 2
months after the approval of the establishment of the branch office, the
commercial/industrial companies must provide a bank guarantee for $50,000 in
favor of the Greek State issued by a recognized Greek or foreign bank
operating in Greece. For the shipping companies, the amount of the bank
guarantee is $5,000. However, their license must be renewed every 5 years.
Approximately, 900 companies are currently operating under this legislation,
of which 300 are commercial/industrial firms and the remaining 600 are
shipping companies, employing a total of some 10,000 employees of whom 25
percent are estimated to be foreign nationals.
Law 468/1976--This law governs oil exploration and development in Greece.
Under the provisions of this law, the Greek Government or the Public
Petroleum Corporation may negotiate oil exploration and development
contracts, on a production sharing or lease basis, and award contracts to
foreign firms either through international tenders or by direct invitation
to selected firms. A new draft bill submitted in June 1992 will amend
previous legislation to allow the government to decide on private
participation in oil exploration and development on a case-by-case basis.
The draft bill also provides for longer concession rights and harmonizes
existing legislation with EC standards.
Real Property in Greece--Foreigners with real property in Greece can now
repatriate rental income in foreign exchange. However, foreigners may not
freely repatriate proceeds from the sale of real property. Bank of Greece
decisions in 1986 and 1988 allow repatriation of the proceeds of the sale of
real property after 5 years, but only in amounts equal to the foreign
exchange imported to buy the property. EC residents are not subject to
these restrictions.
INDUSTRIAL PROPERTY PROTECTION
Greek laws extend equal protection on patents and trademarks to both foreign
and Greek nationals. Greece is a member of the Paris Convention for the
Protection of International Property, the European Patent Convention, the
World Industrial Property Organization, and the Berne Copyright Convention.
As a member of the EC, Greece had to harmonize Greek legislation in
accordance to EC rules and regulations.
Patents--On January 1, 1988, a new law (1733/87) concerning the transfer of
technology, inventions, and technological innovation came into force thus
abolishing all the previous general or particular laws or agreements. Law
1733/87 harmonizes Greek laws on patents with the articles of the European
Patent Convention and provides for the protection of patents for 20 years.
Copyrights--National and conventional treatment of copyrights is accorded
American nationals and companies under an agreement signed between the
Governments of Greece and the United States on March 1, 1932. In addition,
protection is provided by both domestic legislation and the 1948 Brussels
text of the Berne Convention on Copyrights of September 9, 1886. Greece
became a party to the Geneva Universal Copyright Convention of 1952 on
October 6, 1962. A new copyright law which will provide increased protection
and enforcement for intellectual property rights should be enacted in late
1992.
Under a licensing agreement, a nonresident owner is entitled to use any of
the above forms of protection. Licensing agreements enjoy the same
protection as other approved investments of foreign capital, and prospective
licensors must follow the same procedures for obtaining approval as other
prospective investors.
Trademarks--Greek trademark legislation is fully harmonized with that of the
EC. Foreign trademarks, whether registered in the country of origin or
protected as common law trademarks, can be registered in Greece without
submission of a home registration certificate or other evidence of
ownership. Thus, foreign trademarks can be registered in Greece as Greek
trademarks, quite independently of any prior registration abroad. Under
current legislation, trademarks are protected for 10 years and may be
renewed for an unlimited number of 10-year periods. There is no equivalent
of trademarks for services in Greece.
Licensing--Law 1733/87 stipulates a new procedure for the granting of the
license of exploitation and the granting of patents on an invention or a
certain know-how. Under the terms of this law, approvals of licensing
agreements rests with the Industrial Property Organization (Greek initials
OBI), under the auspices of the Ministry of Industry, Energy and
Technology. The setting of royalty rates rests with the Ministry of
National Economy, which acts at the recommendation of the Central Advisory
Committee of the ministry. Approvals are communicated to the Bank of
Greece, which is solely responsible for checking the validity of supporting
documents governing transfer of foreign exchange abroad, and releasing the
necessary amount required for the royalty fee.
In examining the merits of a manufacturing license and determining the
royalty to be paid, the Ministry of National Economy considers certain
criteria, such as (1) the increase of local value-added of the products to
be produced through the use of foreign know-how; (2) the contribution of
foreign know-how to increased productivity and reduced production costs for
the local licensee; (3) foreign exchange savings or earnings through import
substitution or exports; (4) the improved competitiveness of the local
licensee; and (5) the contribution to technological advancement of Greek
industry as a whole.
The ministry does not in principle authorize royalties exceeding a maximum
of 2 to 3 percent of total annual gross sales. However, at times, there
have been exceptions in which a slightly higher royalty is granted. The
Ministry of National Economy may, at its discretion, authorize a higher
rate, if the prospective licensee can furnish complete justification in
support of his application.
Royalty payments are limited to 1-year agreements, renewable only for
another 2-year period. Royalty payments can be remitted entirely upon
receipt of an annual certification which attests that the licensor pays
taxes in a foreign country with which Greece has a bilateral tax treaty.
BUSINESS ORGANIZATIONS
Type of Organization
All traditional types of business organizations exist in Greece along with
some more clearly defined subtypes. These include the following:
o Corporation (Anonymos Etairia)
o Limited liability company (Etairaia Periorismenis Efthymis)
o General or common partnership (Omorythmos Etairia)
o Limited partnership (Eterorrythmos Etairia)
o Sole proprietorship or individual enterprise
(Atomiki Epicherisis)
o Cooperative (Synetairismos)
o Joint venture, consortium (Koinopraxia)
Corporation (A.E.)--A corporation is a stock company in which the
stockholder's liability is represented in paid-up shares of stock. All of
the shares may be owned by foreigners. The name of a corporation organized
under the laws of Greece must be followed by the letters "A.E." and must be
indicative of its type of business, such as commercial, manufacturing, or
mining.
The basic corporation law, Law 2190, was enacted in 1920 and has been
amended and supplemented by Legislative Decree 4237/1962 and Presidential
Decrees 409/1986 and 498/1927. The former decree requires a minimum fully
paid-in-capital stock of 5 million drachmas for all corporations organized
after the effective date of the law. In order to organize a corporation,
the articles of incorporation must be executed before a notary public and
approved by Prefect Offices of Commerce. The Prefect Office, located in the
corporate headquarters area, issues the necessary decree authorizing the
operation of the corporation. A summary of the articles and the decree must
be published in the Official Gazette.
The board of directors may consist of three to nine members, all of whom may
be foreign nationals not necessarily residing in Greece. However, at the
meeting of the board of directors, a quorum (half of the board members plus
one but not less than three) is required with the physical presence of a
sufficient number of directors. Board meetings must be held in Greece at
least once a month. By special permission of the Ministry of Commerce,
board meetings may also be held abroad. The manager of a corporation may be
a foreign national, but he must first obtain a permit to work in Greece from
the Ministry of Labor and Public Order.
Corporations are required to keep books in Greek. Annual meetings of
stockholders must be held to consider the balance sheet of the preceding
year's operation and, if approved, relieve the board of further
responsibility for its conduct of business in the preceding year.
Corporations are required to publish annual balance sheets and profit-loss
statements in at least two newspapers (one financial/trade and one daily
political) and in the Official Gazette.
Limited Liability Company (EPE)--Legislation governing the EPE was enacted
in 1955. The owners are known as participation certificate holders and
responsible only to the extent of their invested capital. No stock is
unused and participation in the capital is represented by certificates of
not less than 10,000 drachmas each, issued in the name of each partner.
Capitalization may not be less than 200,000 drachmas which must be fully
paid in at the time of association. At least 50 percent of the capital must
be paid in cash.
General or Common Partnership--The general or common partnership is a legal
entity and has a specific procedure for organization which must be
followed. To be recognized, a partnership agreement must be drawn up and a
copy registered with the Court of First Instance of the District. All
partners are jointly and severally liable for the financial obligations of
the company.
Limited Partnership--A limited commercial partnership is formed with at
least one general partner and other limited partners. A limited partner is
liable only up to the amount of his participation in the capital of the
company. In a limited partnership, the names of limited partners may never
be included in the firm name and limited partners may not manage the
partnership.
Sole Proprietorship or Individual Enterprise--A sole proprietorship or
individual enterprise is the most commonly used business form in Greece,
conducted by single entrepreneurs in business for themselves. Individual
enterprises may utilize a family name or any other title for a firm name. .
Joint Venture--Under Greek law joint ventures and consortia (kinopraxies)
are not recognized as separate legal entities. The law governing joint
ventures has been developed through decisions of the courts and directives
issued by the Ministry of Finance. In general, each participant in a joint
venture is liable for his share of the total debts, including taxes. Tax
law recognizes the existence and special nature of joint ventures and
provides specific rules as to how their accounting records should be
maintained. For a joint venture to be recognized, certain conditions must
be met. These include the existence of a written agreement between the
parties. A copy of this agreement must be filed with the tax authorities
prior to the commencement of operations.
Organization of Foreign Firms
Foreign enterprises may establish operations in Greece under any of the
above-mentioned forms of business organization. In the case of industrial
projects, the foreign investor is generally required to organize a Greek
corporation in order to enjoy all the benefits of Law 2687 covering foreign
investment and of all other inducements provided by pertinent legislation.
If none of the above forms is desirable, foreign firms may establish branch
offices.
Foreign Branch Office
Foreign corporations may establish branch offices in Greece subject to the
written approval of the Ministry of Commerce. Such approvals are issued on
the basis of a power of attorney designating a person who has permanent
residence in Greece to act as the foreign corporation's legal representative
in the country.
The power of attorney must be authenticated by a Greek consular officer in
the corporation's home country and must be translated into Greek, preferably
through the Greek Ministry of Foreign Affairs. The designated
representative must be empowered to accept all communications and documents
addressed to or served upon the corporation and to represent the company in
all legal relations with third parties.
To establish a branch office of a foreign corporation under the provisions
of Law 2190/1920, the interested foreign corporation must file an
application with the appropriate prefecture (Department of Commerce)
requesting that a permit be granted for the establishment of the branch.
The application must be accompanied by the following documents translated
into Greek:
(1) A certified true copy of the Articles of Incorporation.
(2) A certificate from the supervising authority of the corporation's
registered offices stating that the corporation is currently
operating and indicating the amount of its paid-in capital and year
of formation.
(3) A certified true copy of the minutes of the board of directors
which establishes the branch, identifies the representation of the
corporation in Greece, and authorizes one or more directors to
grant a power of attorney to the representative of the corporation
in Greece.
(4) A power of attorney for the representative of the corporation in
Greece, including the power to process legal documents.
All these documents should be ratified, for valid use in Greece, by the
Greek Consul of the U.S. state in which the corporation is registered and be
translated into Greek by the Ministry of Foreign Affairs in Athens. The
branch is legally established in Greece as of the date of publication of the
approval of the appropriate Prefect in the Official Gazette. For a foreign
corporation to set up a Greek branch, the foreign corporation must have
paid-up capital of at least the minimum capital required under Greek law,
that is, 5 million drachmas.
The foregoing documents are also required for the establishment of a branch
office in Greece under the provisions of Law 3190/1955 (pertaining to
limited liability companies). Until all formalities are accomplished,
persons acting on behalf of the company (for example, concluding contracts
in the name of the company) are jointly and severally liable.
The foreign limited liability company must have a paid-up capital equal to
the minimum, capital required under Greek law, that is, 200,000 drachmas.
A branch office has no capital stock of its own, nor does it have a local
board of directors. Business is transacted by a manager who may be a
foreign national. A branch office is required to keep its own account books
in Greek and, in general, is subject to the same taxes and all the rules and
regulations governing the operation of Greek corporations.
TAXATION
Income tax in Greece is basically imposed on two categories of tax payers:
companies and individuals. Major tax revisions took place as a result of
new legislation passed by Parliament on June 18, 1992.
The new tax law introduces significant fiscal reforms as part of the ongoing
adjustment process. The main aim is to broaden the tax base, clamp down on
tax evasion, simplify and make the system more equal and ease the tax burden
on businesses and individuals, especially those who pay more in the higher
and middle incomes brackets. Following is a summary of the bill's major
provisions.
Taxation of Legal Entities
Corporations (A.E.)--The new corporate tax rate is 35 percent (previous
rates ranged from 35-46 percent). The 35 percent rate applies to taxable
profits before distribution of dividends. That means that dividends are
paid free of any tax withholding/obligation. Under the previous regime,
corporations were taxed on undistributed profits only. A withholding tax
was imposed (a certain amount of dividends was exempted) at the time of
distribution, but dividends were finally subject to tax in the hands of the
shareholders. The new tax law abolishes all tax exemptions on dividends.
The change in the way distributed and undistributed profits are taxed would
solve the problem that the Greek tax authorities were going to face when
implementing the EC directive that prohibits withholding taxes on dividends
paid to shareholders resident in another member state. The minimum share
capital requirement was increased to 10 million drachmas from 5 million
drachmas.
Limited Liability Companies (EPE) (smaller corporations) and Personal
Companies (sole proprietorships and partnerships)--The profits of EPE and
personal companies (partnerships) are subject to a 35 percent tax rate under
the new law. Before, partners were taxed after distribution of profits.
The law provides, however, that up to three administrators of the EPE or
three of the partners of personal companies are entitled to a business
remuneration deductible from the company's profits which amounts to 50
percent of their share in profits. Such remuneration is taxed in the hands
of the administrators/partners. If a personal company has only one partner,
all profits are taxed in the hands of the partner according to the tax rates
for the taxation of individuals. The original draft bill provided for the
application of a 35 percent tax rate on the profit of personal companies
with one partner, but following strong reaction by thousands of small
businesses the government changed that clause. The minimum share requiremnt
for limited liability companies was increased to 3 million drachmas from
200,000 drachmas. Capital increases should be executed within 2 years for
exisitng companies.
Tax Withholding - Foreign Entities
Tax is withheld, in certain cases, on income earned by foreign entities not
resident in Greece. However, U.S. companies are exempt from these
provisions of the tax law since the United States and Greece have a double
taxation treaty in effect.
Tax is withheld:
o On securities and interest -- 35 percent;
o On royalties, patents, rental of equipment, and services --
20 percent;
o On studies, designs, and supervision and consulting services on
technical projects -- 17.5 percent;
o Films, reproduction of videotapes royalties (copyrights) --10
percent; and
o On construction projects -- public sector projects: 3.5 percent;
private sector projects: 4.2 percent; private sector projects
without use of own material: 8.75 percent.
Revaluation of Land and Buildings--Revaluation becomes mandatory every 4
years starting in 1992, for all businesses keeping double entry books. Book
value is multiplied by rates set by the tax authorities. Present rates go
up to 2.3 times for land acquired up to the end of 1987. The revaluation
gain is taxed at a 1 percent rate and after deducting any accumulated losses
can be capitalized within 2 years.
Taxation of individuals--Personal tax rates are as follows (in 1,000's of
drachmas):
Income Tax Tax in Total Total
Bracket Rate Bracket Income Tax
First 1,000 0 0 1,000 0
Next 1,500 5 75 2,500 75
Next 1,500 15 225 4,000 300
Next 3,000 30 900 7,000 1,200
Excess 40
(current exchange rate: US$1 = 190 Drachmas)
The top rate in the previous tax scale was 50 percent, and the income
brackets were much narrower. The result is lower taxation especially for
the middle and the higher income brackets. The pre-1989 system was
reinstated. This allows deductions from income as opposed to subtracting
imputed tax on "deductions plus certain expenses" from the tax on income.
Consequently, many deductions pertaining to expenses were abolished.
Deductions still applicable are percentages/ceilings on rent paid, insurance
premiums, tuition fees, legal fees, interest on mortgages, plus any medical
expenses.
In the new tax law, imputed income criteria based on imputed living
expenditures were increased substantially in the case of ownership of
private cars, pleasure boats, motorcycles, etc. to increase the tax base.
Real Estate and Inheritance Taxes--The real estate tax was abolished. A
real estate tax to be imposed by the local authorities is now being
discussed.
Taxes on Imports and Other Indirect Taxes
For the calculation of import taxes, the dutiable value is based on the
transaction value, that is, the price actually paid for the imported goods
by the buyer to or for the benefit of the seller. The following taxes are
applicable to imported goods in addition to the import duty rates levied on
Non-EC imports.
Value Added Tax (VAT)--The value added tax (VAT) introduced in 1987 by Law
1642 replaced the former turnover tax and stamp tax. There are three VAT
rates: 8 percent applies to basic commodities and services such as food and
dairy products, hotel accommodations, professional services (except doctors
and lawyers fees are exempt), transportation and agricultural services,
(books and printed material are subject to the 8 percent rate, but a special
provision reduces the VAT rate to 3 percent); 36 percent rate applies to
luxury products and services, including perfumes, clocks and watches,
television sets, audio-visual equipment, photographic equipment, tobacco
products, alcoholic beverages, leather goods, and entertainment and bar
services in first class establishments; and 18 percent rate applies to all
other categories not included under the 8 or 36 percent rates. The VAT is
levied on the c.i.f. value plus import duty and is applicable to all imports
as well as domestically produced goods.
University/Bank Charge--A charge of 0.65 percent of the c.i.f. value is
collected by Greek customs for the University of Thrace and the Bank of
Greece. It is levied only on nonagricultural non-EC imports.
Consumption Tax--The Consumption Tax is levied on a large variety of
imported and locally produced goods, including certain agricultural
products, washing machines, cameras, tobacco, petroleum products, boats,
motor cars, amplifiers, fabrics, alcohol, etc. The tax rates range from 10
to 150 percent and may be imposed on the product's c.i.f. price or retail
price.
Property Tax--A new additional property tax on homes and commercial premises
larger than 50 square meters has been introduced on a sliding scale. An
average size home of 80 square meters would be assessed 6,000 drachmas
($32). A place bigger than 1,000 square meters will be charged more than 1
million drachmas ($5,400).
Tax on Immovable Property--A tax on immovable property was imposed in 1982.
The tax is assessed on the market value of land and buildings as of January
1 each year. For natural persons, the tax applies to the value or property
in excess of 35 million drachmas and is levied at progressive rates ranging
from 0.5 to 2 percent. For legal entities, the tax applies to the value of
property in excess of 40 million drachmas and is levied at the rate of l.5
percent. Buildings used by their owners for industrial or commercial
purposes are exempt, and land used by hotels for their operational needs is
exempt to the extent of 50 percent.
Real Estate Transfer Tax--A real estate transfer tax is levied on the
transfer of title to immovable property. Separate tax rates are provided
for transfers as a result of a donation or inheritance. In respect to
sales, the tax is computed on the market value of the property transferred.
The rates normally are 9 percent for the first 4 million drachmas and 11
percent for the excess. A 2 percent surtax is added on to property in major
cities.
Penalties for inaccurate filing or failure to file a tax return can be as
high as 240 percent of the tax payable. In order to reduce the number of
disputes concerning the value of property transferred, tables of property
values applicable for transfer tax purposes have been introduced for
property located in the Athens/Piraeus, Thessaloniki, and other urban areas.
Special Tax on Banking Transactions-- A special tax on banking transactions
is imposed on:
(l) Contracts for loans and credits, except letters of credit
-- the applicable rate is 3 percent of the amount of any loan
irrespective of the duration thereof.
(2) Gross revenues of banks arising in Greece and derived from interest
commissions, brokerage, discounts, currency or exchange
differences, price differences and all other income or benefits
even if they are derived from ancillary activities -- the
applicable rate is 8 percent of gross revenues.
Although banks operating in Greece are liable to the authorities for this
tax, they may pass the charge on to their customers. Numerous exemptions
from this tax exist, which include any transactions which are subject to VAT
and loans, as well as interest thereon, which are concluded in foreign
currency that is not obligatorily assignable to the Bank of Greece.
Levy on Capital--As of January 1, 1987, a levy of 1 percent is imposed on
the accumulation of capital by business enterprises, including branches of
foreign companies. All laws and regulations pertaining to the imposition of
the stamp duty are not applicable in such cases.
Transactions subject to the levy include:
(l) Establishment, conversion, or merger of an entity and any increase
in its capital;
(2) Increase in the assets of an enterprise in exchange for rights
similar to those of a partner, for example, vote or profit
participation;
(3) Loan where the lender has the right to a portion of the
enterprise's profits;
(4) Loans to an entity by a partner or his immediate family as well as
loans guaranteed by a partner, provided that these loans have the
same effect as increasing the capital of the enterprise; and
(5) Provision of fixed or working capital to a Greek branch by the
foreign entity to which it belongs, except for branches of entities
resident in an EEC member state.
Exemptions from this levy are granted to agricultural cooperatives, shipping
companies, educational, and philanthropic organizations, and entities
providing social or communal services provided that half of their capital is
owned by the state or local authorities. Increases of capital by
capitalization of profits, retained earnings, or reserves are not subject to
the levy.
Stamp Duty--With the introduction of VAT, the Special Tax on Banking
Transactions, and the Levy on Capital replaced the stamp duty formerly
imposed on most business transactions and documents. Nevertheless, the
stamp duty continues to be payable on a number of transactions and
documents. The stamp duty may take the form of a nominal fixed amount for
each transaction or document or a proportional duty based on the value of
the transaction. The more commonly encountered transactions which continue
to be subject to a stamp duty include:
Property rentals 3.6 percent
Salaries 1.2 percent
Private loan agreements 3.6 percent
Bills of exchange 0.6 percent
EMPLOYMENT
Labor Force
Greece, roughly the size of Alabama, has a population of over 10 million.
Of a total labor force of 4 million in 1991, only 2 million or 50 percent of
the labor force were salary/wage earners. This relatively low figure
reflects the lingering strength of traditional sectors such as agriculture
and the large number of self-employed professionals and shopkeepers.
The principal sectors of employment are: primary sector (largely
agriculture)--28.5 percent; secondary sector--28.1 percent, of which
industry accounts for 19.9 percent and construction 6.5 percent; and
tertiary sector--43.7 percent, broken down by transport and
communications--6.6 percent; banking and insurance--3.9 percent; trade,
restaurants, and hotels--15.6 percent; and other services, including public
administration--17.3 percent.
During 1970-83, the labor force increased by 2 percent, and unemployment was
held to 4 percent or less. However, the 1980s economic downturn, coupled
with net immigration, brought increasing unemployment. Unemployment was 8.6
percent in 1991. It should be noted, however, that the underground economy,
which may account for 35-40 percent of GNP, is not taken into account in
these compilations.
Greek Labor Unions
The Greek trade union movement is historically characterized by
fragmentation and overlapping areas of organization. There are 5,000
locals, or primary unions, which include craft, industrial, enterprise, and
general unions. Most of these affiliate with national federations or
geographic labor centers. The federations and labor centers in turn
affiliate with the General Confederation of Greek Workers (GSEE), which
organizes all sectors with the exception of the permanent civil service.
The GSEE claims a membership of 618,498. The Civil Service Confederation
(ADEDY) claims a membership of 300,000. The GSEE is a member of the
European Trade Union Congress (ETUC) and the International Congress of Free
Trade Unions (ICFTU).
Minimum Daily Wages
The minimum daily wage on January 1, 1992 for adult (18 years and over)
unskilled workers regardless of previous experiences was 3,691 drachmas.
Work Hours
The normal workweek is 40 hours. All workers are entitled to a 4 week
annual vacation.
Social Security
Funds for the social security system are provided through contributions from
wage and salary earners, their employers, and by annual subsidies from the
government. Currently, the contribution is assessed at 38.6 percent of
salary: 14.25 percent paid by the employee and 24.35 percent by the
employer up to a maximum taxable salary level, currently about 346,000
drachmas (about $1,836 a month).
The Institute of Social Insurance (IKA), established in 1937, operates under
the general supervision of the Ministry of Health, Welfare and Social
Security. Its services cover industry, commerce, and related occupations in
the private sector, and other workers not covered by "special funds."
Benefits are provided for accidents, sickness, maternity, old age,
disability, and death.
In addition to IKA, which directly of indirectly insures about 48 percent of
the Greek population, there are 330 other social security funds active in
Greece. They are peculiar to certain wage earning and professional groups
(civil servants, military personnel, farmers, clergy, public enterprise
personnel, etc.).
Termination and Severance Pay
A worker may not be dismissed without severance pay except on serious
grounds while under a work contract. If the contract is terminated by the
employer, the worker is paid full compensation for the unexpired period of
the labor contract. Severance arrangements vary depending on whether one is
designated a "worker" or an "employee" and appropriate notice is given; it
also is determined by length of service.
Employment of Aliens
To be gainfully employed in Greece, a non-Greek is required to obtain a work
permit and a residence permit. For certain specialized professions and
occupations, a work permit is issued only upon the submission of
certificates and other qualifying documents. Resident permits are granted
for a limited period and are renewable, while work permits are issued for a
specific kind of work, for a specific employer, and for a specific length of
time and are renewable. In general, work permits are issued sparingly and
mostly for specialized work requiring skills not readily available in Greece.
Under Law 2687, the employment of foreign nationals in executive, technical,
and administrative positions is provided. The payment of part of their
salaries in transferable foreign exchange is also permitted as stated in the
instrument of approval for the investment.
GUIDANCE FOR BUSINESS TRAVELERS
Entrance Requirements
U.S. citizens may enter Greece with a valid U.S. passport and may stay for
up to 3 months. No visas or other formalities are required. Should
visitors wish to remain longer, they must submit an application to the
immigration authorities at least 20 days before expiration of the initial
3-month stay.
Personal Effects of Travelers
Used personal effects of foreigners residing permanently abroad may be
imported duty free. Included in the duty-free allowance are up to 200
cigarettes and 50 cigars. One each of the following articles also may be
brought in duty free, provided they are reexported: still and movie cameras,
with suitable film; binoculars, portable radios; portable record players
with up to 20 records; and portable typewriters. Firearms and ammunition
require special permission by local Greek police authorities. Flower bulbs,
plants, and fresh fruit may not be brought into the country by travelers.
Foreign currency in any amount can be imported freely into Greece.
Travelers staying in Greece less than 1 year can export foreign currency not
exceeding the sum of $1,000 or equivalent without having it declared upon
entry. Travelers may bring in a maximum of 100,000 drachmas in Greek bank
notes.
Those persons can freely export, upon their departure, foreign currency in
excess of $1,000 or equivalent per traveler in bank notes provided they have
declared those funds upon entry. Declaration of the foreign exchange must
be made to currency control officials at the point of entry, since it cannot
be accepted if made at a later date. Upon declaring foreign exchange in any
amount, travelers will be given a receipt by Greek currency officials.
Mailing abroad of Greek currency, foreign exchange, or checks is forbidden.
Travelers' checks and other checks, letters of credit, and unendorsed bank
drafts issued in the traveler's name need not be declared when entering
Greece, since they can be exported freely from Greece. (Travelers are
required to change their foreign money at regular bank offices. Further
information on currency regulations can be obtained from the Directorate for
the Protection of National Currency, Ministry of Public Order, 1 Katehaki
Street, GR-101 77 Athens, Greece, Tel.: 693-0701.)
Greek residents traveling in the EC can take up to 1,400 ECU (about $1,800)
per trip in foreign exchange, as well as to a non-EC country, which includes
the United States. The amount of foreign exchange received by a traveler is
no longer stamped on the passport, but only checked to make sure it does not
exceed the permitted levels.
Accommodations
With the impressive expansion of Greek hotel and tourist facilities in
recent years, modern and comfortable accommodations can be found in most
areas where a foreign traveler is likely to visit. Growing tourist travel
makes advance hotel reservations advisable, particularly during the late
spring and summer. Prices of accommodations compare favorably with those in
other Western European countries.
Cost-of-living data abroad are published by the United Nations in the
Monthly Bulletin of Statistics. The U.S. Department of Labor monthly
periodical Labor Developments Abroad contains information on wages and
living costs. This publication is available from the Information Office,
Bureau of Labor Statistics, U.S. Department of Labor, Washington, D.C. 20210.
Business Customs
Etiquette--Greek business people are astute bargainers. Success in business
dealings depends on a combination of patience and quick judgment. Greeks
are warm and cordial in their personal relationships, and business is
usually conducted over a cup of coffee, if not in a coffee house or Greek
taverna. A wealth of good restaurants and places of entertainment makes it
easy for a business visitor to reciprocate the courtesies shown.
Commercial Language--Greek is spoken by 96 percent of the people and is used
for all business and official purposes. Language is not a major barrier to
foreign business visitors, however, as a relatively high percentage of local
officials and business people are acquainted with English or French.
Business Hours--Athens time is 7 hours ahead of eastern standard time.
Government office hours are 8:00 a.m.-3:30 p.m. Monday through Friday from
October to May and 07:30 a.m.-3:00 p.m. Monday through Friday from May
through September. Private sector office hours are 8:00 a.m.-5:00 p.m.(with
one hour for lunch). Manufacturing establishments operate from 7:00 a.m. to
3:00 p.m. Monday through Friday. Banking business hours are 8:30 a.m.-2:00
p.m. Monday through Friday. Supermarkets and department stores open (summer
and winter) from 8:00 a.m. to 8:00 p.m. Monday, Tuesday, Wednesday and
Thursday; 8:00 a.m.-10:00 p.m. Friday; and 8:00 a.m.-3:00 p.m. on Saturday.
Most other shops open from October to May 8:30 a.m.-1:30 p.m. and 5:00
p.m.-8:00 p.m.on Tuesday, Thursday and Friday and 8:00 a.m.-2:30 p.m.on
Monday, Wednesday and Saturday; and May through September 8:30 a.m.-1:30
p.m.and 5:30 p.m.-8:30 p.m. on Tuesday, Thursday and Friday and 8:30
a.m.-2:30 p.m. Monday, Wednesday and Saturday.
Holidays--Greek holidays to take into account when planning a business
itinerary include the following:
New Year's Day, January 1
Epiphany, January 6
Kathara Deftera (49 days prior to Greek Easter Sunday)
Independence Day, March 25
Good Friday (movable holiday)
Holy Saturday (movable holiday)
(half day holiday for government, bank and business enterprises)
Easter Monday (movable holiday)
May Day, May 1
Whit Monday (50 days after Greek Easter Sunday)
Assumption Day, August 15
Holy Cross Day, September 14
(half day holiday, for shops only)
OXI Day, October 28
Christmas Eve, December 24
(half day holiday, only shops open all day long)
Christmas Day, December