The Electoral Victory of PASOK and the Collapse of the New Democracy Government Under the Weight of the Crisis and Scandals at T

EMBASSY OF INDIA ATHENS

No.ATH/COM/201/11/11 February 10, 2011

Economic and Commercial Report for November 2011

Executive Summary

 Greek Prime Minister George Papandreou announced on 1st November 2011 his decision to hold a referendum on the decisions of the Euro summit for the new loan agreement. A referendum to decide whether or not Greece was to accept the conditions under which the EU, the IMF and the ECB would allow a 50% haircut of Greek debt owed to private creditors, and suggested the referendum would be held on 4 December. At the time of the announcement of the referendum, polls in Greece suggested that up to 60% of Greeks were against the deal reached with the EU over Greek debt on 27 October 2011. The decision of Mr. Papandreou provoked strong reactions from the opposition parties, but also within the governmental party (PASOK) as well as EU leaders. On November 2, Mr. Papandreou met with the German Chancellor Angela Merkel and the French President Nicola Sarkozy, in Cannes at the 2011 G-20 Cannes summit, to explain why he announced a referendum. The two leaders stressed to the Greek PM that if was to proceed with his decision for a referendum, that would be a supposed questioning of whether Greece should remain in the eurozone and the European Union. After two days of intense pressure- foreign and domestic, the Greek PM finally called off the proposed referendum on 3 November.

 A vote of confidence for the government was held on 4 November. The Greek Prime Minister Mr. Papandreou said in the parliament, "I ask for the vote of confidence to avert the instability that would be caused if the country is dragged into elections. Now is the time for cooperation with good intentions and a feeling of national responsibility." He also said that he would seek a coalition government for four months in order to pass the new EU debt agreement. The government of Mr. Papandreou ensured the confidence vote with a vote of 153-145 in the 300 seat parliament, after PASOK's 152 MPs and MP Mrs. Louka Katseli formerly a member of PASOK (she was removed from PASOK party by Mr. Papandreou when she voted against on 20 October on the approval of a new austerity bill), supported the prime minister. She was then brought back into the party fold.

 A personal attack on PM George Papandreou was unleashed by ND party leader Mr. Antonis Samaras who accused Mr. Papandreou of “putting the country in the heart of a global storm for his own personal interest. He described the vote of confidence announced by Papandreou as “a cry of anguish of a PM who has lost all legitimacy in society” and described the referendum as proof of “a deadlock and a disclosure of extreme irresponsibility”. Mr. Samaras spoke extensively on the decision to create the ground for elections.

 Following the vote of confidence, Mr. Papandreou met the President of the Hellenc Republic Karolos Papoulias next day to begin talks on forming a new coalition government. Papandreou also said that he would resign and allow another interim prime minister.

1  On 7 November, the Deputy Prime Minister and Finance Minister of Greece, Mr. Evangelos Venizelos, met with the President of Eurogroup and Prime Minister of Luxembourg Mr. Jean-Claude Juncker and also with the Vice President of the European Commission and Commissioner competent for economic and monetary affairs Mr. Olli Rehn, during the preparations for the Eurogroup Summit the same day in Brussels. As announced by the Hellenic Finance Ministry, they discussed about the current political developments in Greece, the new political framework that was underway, the political conditions for the disbursement of the 6th installment, the preparation of the new loan agreement within the context of the new programme, and the progress in the participation of the private sector in the project for the long term viability of Greek sovereign debt (PSI).

 On 11th November 2011 Mr. George Papandreou was succeeded as prime minister by Mr. Loukas Papademos. The new Greek Prime Minister was sworn along with a cabinet made up of holdover ministers from the Panhellenic Socialist Movement party (PASOK), the New Democracy party (ND) and the Popular Orthodox Rally party (LAOS). The new interim coalition government, which was agreed on by the former Prime Minister Mr. George Papandreou, ND leader Mr. Antonis Samaras and LAOS leader Mr. George Karatzaferis, will be in place until elections, initially set for February 2012. The agenda for Mr. Papademos, is to push the terms of the second bailout package of 130 billion euros from the “troika” (EU-IMF-ECB) through parliament. European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso said that, Athens must move swiftly on the new agreement.

 The Ministry of Finance of the Hellenic Republic announced on 17 November that it has commenced a series of consultations with holders of Hellenic Republic bonds (through the IIF, other industry bodies, and directly). These consultations are being undertaken as part of the preparation for a transaction affecting those bonds consistent with paragraph 12 of the Euro Summit Statement of 26 October 2011. The October 26 Statement calls for an exchange of Hellenic Republic bonds in the hands of private sector creditors for new bonds of the Hellenic Republic in order to achieve a 50% nominal reduction in the outstanding stock of that debt.

 As announced by the Organization for Economic Cooperation and Development (OECD), during the unveiling of its regular interim report, released on 24 November, the recession in Greece will reach 6.1% in 2011 against a forecast of 5.5%, further shrinking of the Greek economy by 3% in 2012. In the OECD report, it is stated that the Greek economy fell deeper into recession in 2011, despite a recovery in exports, as the necessary fiscal adjustment was continued, leading demand to lower levels and raising unemployment. OECD says that the economy will continue to shrink in 2012, while GDP is projected to begin rising in 2013 driven by broad structural reforms, strengthening external demand, improvement of competitiveness and increase in investment. In its report, the organization calls upon the European Central Bank (ECB) to proceed with further relaxation of monetary policy and to design more radical emergency measures to rescue the Eurozone’s economy. The deficit next year is forecast at 7% of GDP.

 According to the data available for the ten months January – October 2011, the State Budget deficit amounted to €20,092 million compared to the new target of €20,362 million set in the Budget 2012 submitted to the Hellenic Parliament. During the same period in 2010, the State Budget deficit was €18,081 million. For the period January – October 2011, net revenues (€39,271 million) of the ordinary budget declined by 4.0%

2 as compared to the same period of 2010, while ordinary budget expenditures increased by 5.8% as compared to the same period of 2010.

 From January to October 2011, revenues from the Public Investment Budget (P.I.B.) increased by 38.1% (€521 million) vis-à-vis the ten months of 2010, while P.I.B. expenditures declined by 37.4% (€2,260 million).

 According to the 2012 Budget as discussed in the Hellenic Parliament, the General Government budget deficit in 2011 is projected to be 9% of GDP.

 According to quarterly data (flash estimates) by the Hellenic Statistical Authority, in the 4th quarter of 2011 in comparison to the 4th quarter of 2010, Gross Domestic Product (at base prices 2005) decreased by 7.0%.

 The Consumer Price Index (CPI) increased by 3.0% in October 2011, as compared to October 2010. Similarly, the Harmonized Index of Consumer Prices (HICP) increased by 2.9% in October 2011 as compared to October 2010.

 Greek unemployment rate in October 2011 was 18.2% (903,525 unemployed) compared to 13.5% in October 2010 and 17.5% in September 2011. In October 2011, the number of employed decreased by 303,768 persons compared with October 2010 (a 7.0% rate of decrease) and increased by 14,666 persons compared with September 2011 (a 0.4% rate of increase). In the age groups, the highest unemployment rate was recorded among young people in the age of 15-24 years (45.5%) and the age of 25-34 years (25.3%). A year earlier, in October 2010, for the same age groups, unemployment was 34.6% for the group of 15-24 years, and, 18.3% for the group of 25-34 years. The highest unemployment rates by region were recorded at Sterea Ellas with 23.3%, Kentriki Makedonia (Central Macedonia) with 19.7% and Attiki (Attica) with 19.2%. Also, unemployment amongst women reached 21.3% in October 2011 while for men unemployment rate was 15.9%.

 According to data announced by the Hellenic Statistical Authority (EL.STAT.) and processed by Export Research Centre (KEEM), Greek exports to India in the period January-October 2011 decreased by 5.3% amounting to 43.0 million euro compared to 45.4 million euro for the corresponding period of 2010. Greek imports from India in the same period increased by 31.9% amounting to 491.7 million euro compared to 372.7 million euro for the corresponding period of 2010.

 According to estimates announced by the Hellenic Statistical Authority (EL.STAT.), the total value of imports, excluding oil products, in October 2011 was 2,429.8 million euro against 3,045.5 million euro in October 2010, recording a decrease of 20.2%. The total value of exports, excluding oil products, in October 2011 was 1,316.2 million euro against 1,463.1 million euro in October 2010 recording a decrease of 10.0%. The deficit of the trade balance, excluding oil products, in October 2011 (1,113.6 million euro) recorded a decrease of 29.6%. The total value of imports, excluding oil products, in the 10-month period from January to October 2011 was 26,903.7 million euro against 30,711.4 million euro in the corresponding period of 2010, recording a decrease of 12.4%. The total value of exports, excluding oil products, in the 10-month period from January to October 2011 was 13,092.8 million euro against 11,716.9 million euro in the corresponding period of 2010, recording an increase of 11.7%. The deficit of the trade balance, excluding oil products, in January-October 2011 (13,810.9 million euro) recorded a drop of 27.3%.

3  According to the Bank of Greece, from January to October 2011 arrivals of non- resident travelers grew at an average annual rate of 10.2%. Greece experienced a 10% increase in travel spending by non-residents during the first ten months of 2011, reaching 10.168 billion euro against 9.246 billion euro for the previous year. There is also a significant increase of 15% in travel spending recorded in Greece by non-residents in October, and this year reached 854.9 million euro, compared with 743.5 million euro in 2010.

 The European Commission’s Task Force for Greece that started its work on September 1, 2011, has published its first quarterly report in November. It is available on the following link: http://ec.europa.eu/commission_2010- 2014/president/news/documents/2011/11/20111117_documents_1_en.htm

4 I. GDP and its growth during the most recent quarter and previous years

Gross Domestic Product (Non-seasonally adjusted figures) In million euros At constant % (*) At current % (*) prices prices 2007 I 49107 5.2 51148 6.8 II 52647 3.0 55552 6.6 III 54980 3.7 58606 7.6 IV 53121 0.4 57465 5.6 2008 I 49188 0.2 54250 6.1 II 52928 0.5 58785 5.8 III 54972 0.0 61533 5.0 IV 52438 -1.3 58353 1.5 2009 I 47024 -4.4 51638 -4.8 II 50605 -4.4 58611 -0.3 III 53063 -3.5 60247 -2.1 IV 52022 -0.8 61145 4.8 2010 I 47202 0.4 53841 4.3 II 50228 -0.7 58099 -0.9 III 50605 -4.6 59559 -1.1 IV 47549 -8.6 55820 -8.7 2011 I 43448 -8.0 50386 -6.4 II 46575 -7.3 55156 -5.1 III 48062 -5.0 57214 -3.9 IV 44225 -7.0 52493 -6.0

*Percent change against the same quarter of the preceding year

Source: Hellenic Statistical Authority (EL.STAT.)

5 II) Total trade in Euros and its growth during the most recent quarter and the previous years (overall)

At constant prices 2005 (In million €) Goods and Services Exports Imports Quarterly Exports % (*) Quarterly Imports % (*) 2009 2009 III 13237 -21.7 III 16081 -22.0 IV 9029 -16.0 IV 16735 -10.2 2010 2010 I 8405 2.1 I 15416 -1.6 II 10671 1.9 II 14340 -8.7 III 13403 1.3 III 14894 -7.4 IV 10215 13.1 IV 14881 -11.1 2011 2011 I 8096 -3.7 I 13740 -10.9 II 10620 -0.5 II 13634 -4.9 III 13830 3.2 III 14256 -4.3 *Percent change against the same quarter of the preceding year Source: Hellenic Statistical Authority (EL.STAT.)

Inflation

NBG Inflation Projections y-o-y change CPI Core Average 2009 1.2 2.5 Q1:2010 (p.a) 3.0 1.7 Q2:2010 (p.a) 5.2 3.2 Q3:2010f(p.a) 5.5 3.6 Q4:2010f (p.a) 4.8 3.4 Average 2010 (1) 4.6 3.0 Average 2011 (2) 2.1 1.6 1) Assuming oil prices at 79$/brl and $/€ of 1.30 for 2010 2) Assuming oil prices at 88$/brl and $/€ of 1.34 for 2011 Source: National Bank of Greece (NBG)

6 III) Trade balance in Euros & US$

January-September 2011 (In million €) Merchandise Trade Balance (preliminary data) % change 2010 2011 2011/2010 A. Imports I. Ship imports included 36,129.3 32,566.6 -9.9% II. Ship imports excluded 33,715.3 31,580.7 -6.3% III. Petroleum products excluded and ship imports included 27,665.9 24,469.0 -11.6% B. Exports I. Ship imports included 11,228.1 16,571.0 47.6% II. Ship imports excluded 11,157.0 16,517.4 48.0% III. Petroleum products excluded and ship imports included 10,254.3 11,757.1 14.7% C. Trade Balance Ship imports included (=B.I-A.I) -24,901.2 -15,995.6 -35.8% D. Trade Balance Ship imports excluded (=B.II-A.II) -22,558.3 -15,063.3 -33.2% E. Trade Balance Petroleum products excluded and ship -17,411.6 -12,711.9 -27.0% imports included (=B.III-A.III)

January-September 2011 (In million US$*) Merchandise Trade Balance (preliminary data) % change 2010 2011 2011/2010 A. Imports I. Ship imports included 47,447.2 45,765.8 -3.5% II. Ship imports excluded 44,277.0 44,380.3 0.2% III. Petroleum products excluded and ship imports included 36,332.6 34,386.2 -5.4% B. Exports I. Ship imports included 14,745.4 23,287.2 57.9% II. Ship imports excluded 14,652.1 23,211.9 58.4% III. Petroleum products excluded and ship imports included 13,466.6 16,522.2 22.7% C. Trade Balance Ship imports included (=B.I-A.I) -32,701.8 -22,478.6 -31.3% D. Trade Balance Ship imports excluded (=B.II-A.II) -29,624.9 -21,168.4 -28.5% E. Trade Balance Petroleum products excluded and ship -22,866.0 -17,864.0 -21.9% imports included (=B.III-A.III)

Source: Hellenic Statistical Authority (EL.STAT.) Data processed by Export Research Centre (KEEM)

7 IV. Total trade in Euros by regions, 10 major countries (in descending order) and India January-October 2011* (In million €) 2011 2010 11/10 Regions Exports Imports Exports Imports Total Exports Imports Total % Change % Change TOTAL 18,456.8 36,370.3 54,827.1 12,832.9 40,116.0 52,948.9 43.8% -9.3% OECD (29) 9,547.5 20,478.2 30,025.7 7,429.2 23,808.8 31,238.0 28.5% -14.0% Ε. U. (25) 7,879.4 17,712.4 25,591.8 6,994.0 19,273.5 26,267.5 12.7% -8.1% Ε. U. (15) 6,117.0 16,232.3 22,349.3 5,522.2 17,893.8 23,416.0 10.8% -9.3% NORTH AMERICA 1,192.5 760.1 1,952.6 571.4 1,119.7 1,691.1 108.7% -32.1% OTHER DEVELOPED COUNTRIES 117.5 307.2 424.7 103.8 570.7 674.5 13.2% -46.2% OTHER OECD (exc. S. Korea) 1,593.6 1,514.5 3,108.1 789.2 1,760.7 2,549.9 101.9% -14.0% BALKAN COUNTRIES 2,716.2 1,733.0 4,449.2 2,236.2 1,615.3 2,351.5 21.5% 7.3% COMMON. OF IND. STATES (CIS) 557.0 4,529.5 5,086.5 374.1 5,028.5 5,402.6 48.9% -9.9% N. AFRICA & MIDDLE EAST 1,677.3 4,765.3 6,442.6 862.9 4,444.4 5,307.3 94.4% 7.2% AFRICAN COUNTRIES(exc. S.Africa) 114.9 114.0 228.9 90.4 75.7 166.1 27.1% 50.6% SOUTH EAST ASIA 695.1 1,320.6 2,015.7 167.9 2,162.6 2,330.5 314.0% -38.9% LATIN AMERICA 67.0 314.9 381.9 44.0 571.5 615.5 52.3% -44.9% OTHER COUNTRIES 1,846.3 3,298.8 5,145.1 599.0 3,493.5 4,092.5 208.2% -5.6% Major Import Countries (GREEK EXPORTS) 1. Italy 1,757.9 1,379.8 27.4% 2. Germany 1,463.5 1,503.2 -2.6% 3. Turkey 1,453.5 631.9 130.0% 4. Cyprus 1,142.8 926.8 23.3% 5. Ship (onboard): various flags 1,080.5 270.7 299.2% 6. USA 1,045.7 449.2 132.8% 7. Bulgaria 1,018.6 857.5 18.8% 8. United Kingdom 742.2 738.4 0.5% 9. France 537.2 505.5 6.3% 10. Singapore 519.4 34.5 1407.2% Major Export Countries (GREEK IMPORTS) 1. Germany 3,871.9 4,224.9 -8.4% 2. Russian Federation 3,467.9 3,917.3 -11.5% 3. Italy 3,382.3 3,899.6 -13.3% 4. China 2,168.9 2,464.2 -12.0% 5. Netherlands 1,954.2 2,096.4 -6.8% 6. France 1,870.9 1,962.8 -4.7% 7. Iran (Islamic Republic of) 1,362.5 1,060.6 28.5% 8. Belgium (and Luxbg- >1998) 1,351.0 1,402.4 -3.7% 9. Saudi Arabia 1,282.0 877.5 46.1% 10. Spain 1,146.9 1,214.6 -5.6% INDIA 43.0 491.7 534.7 45.4 372.7 418.1 -5.3% 31.9% Source: Export Research Centre (KEEM) *Data for both years are preliminary

8 January-October 2011* (In million €) % Structure % Structure % Structure % Structure Regions Exp.2011 Imp.2011 Exp.2010 Imp.2010 OECD (29) 51.7% 56.3% 57.9% 59.3% Ε. U. (25) 42.7% 48.7% 54.5% 48.0% Ε. U. (15) 33.1% 44.6% 43.0% 44.6% NORTH AMERICA 6.5% 2.1% 4.5% 2.8% OTHER DEVELOPED COUNTRIES 0.6% 0.8% 0.8% 1.4% OTHER OECD (exc. S. Korea) 8.6% 4.2% 6.1% 4.4% BALKAN COUNTRIES 14.7% 4.8% 17.4% 4.0% COMMON. OF IND. STATES (CIS) 3.0% 12.5% 2.9% 12.5% N. AFRICA & MIDDLE EAST 9.1% 13.1% 6.7% 11.1% AFRICAN COUNTRIES (exc. S. Africa) 0.6% 0.3% 0.7% 0.2% SOUTH EAST ASIA 3.8% 3.6% 1.3% 5.4% LATIN AMERICA 0.4% 0.9% 0.3% 1.4% OTHER COUNTRIES 10.0% 9.1% 4.7% 8.7% Major Import Countries (Greek Exports) 1. Italy 9.5% 10.8% 2. Germany 7.9% 11.7% 3. Turkey 7.9% 4.9% 4. Cyprus 6.2% 7.2% 5. Ship (onboard): various flags 5.9% 2.1% 6. USA 5.7% 3.5% 7. Bulgaria 5.5% 6.7% 8. United Kingdom 4.0% 5.8% 9. France 2.9% 3.9% 10. Singapore 2.8% 0.3% Major Export Countries (Greek Imports) 1. Germany 10.6% 10.5% 2. Russian Federation 9.5% 9.8% 3. Italy 9.3% 9.7% 4. China 6.0% 6.1% 5. Netherlands 5.4% 5.2% 6. France 5.1% 4.9% 7. Iran (Islamic Republic of) 3.7% 2.6% 8. Belgium (and Luxbg- >1998) 3.7% 3.5% 9. Saudi Arabia 3.5% 2.2% 10. Spain 3.2% 3.0% INDIA 0.2% 1.4% 0.4% 0.9% Source: Export Research Centre (KEEM) *Data for both years are preliminary

9 V i) Total trade in Euros and its configuration by product- MAIN SITC DIVISION (1- digit level) EXPORTS January-October 2011* (In million €) SITC Value % Change % Structure Product Categories CODE 2011 2010 11/10 2011 2010 0+1+4 AGRICULTURAL PRODUCTS 3,390.3 3,213.2 5.5% 18.4% 25.0% 2 RAW MATERIALS 680.3 667.8 1.9% 3.7% 5.2% 3 FUELS 5,469.6 1,175.1 365.4% 29.6% 9.2% 5-8 INDUSTRIAL PRODUCTS 8,356.5 7,405.4 12.8% 45.3% 57.7% 9 OTHER 560.2 371.4 50.8% 3.0% 2.9% Products 0 Food and live animals 2,689.8 2,539.7 5.9% 14.6% 19.8% 1 Beverages and tobacco 461.6 451.8 2.2% 2.5% 3.5% 4 Animal and vegetable oils and fats 238.9 221.7 7.8% 1.3% 1.7% 2 Crude materials inedible, except fuels 680.3 667.8 1.9% 3.7% 5.2% 3 Mineral fuels, lubricants, etc. 5,469.6 1,175.1 365.4% 29.6% 9.2% 5 Chemicals and related products 1,930.8 1,931.5 0.0% 10.5% 15.1% 6 Manufactured goods classified chiefly 3,425.6 2,695.1 27.1% 18.6% 21.0% by raw material 7 Machinery and transport equipment 1,685.3 1,457.6 15.6% 9.1% 11.4% 8 Miscellaneous manufactured articles 1,314.7 1,321.2 -0.5% 7.1% 10.3% 9 Commodities and transactions not 560.2 371.4 50.8% 3.0% 2.9% classified by category 0-9 TOTAL EXPORTS 18,456.8 12,832.9 43.8% 100.0% 100.0% Source: KEEM calculations based on original preliminary data of EL.STAT.

IMPORTS January-October 2011* (In million €) SITC Value % Change % Structure Product Categories CODE 2011 2010 11/10 2011 2010 0+1+4 AGRICULTURAL PRODUCTS 4,869.1 4,746.2 2.6% 13.4% 11.8% 2 RAW MATERIALS 1,230.9 949.7 29.6% 3.4% 2.4% 3 FUELS 9,653.6 9,605.3 0.5% 26.5% 23.9% 5-8 INDUSTRIAL PRODUCTS 20,600.7 24,785.7 -16.9% 56.6% 61.8% 9 OTHER 16.0 29.2 -45.3% 0.0% 0.1% Products 0 Food and live animals 4,204.4 3,991.1 5.3% 11.6% 9.9% 1 Beverages and tobacco 457.7 576.2 -20.6% 1.3% 1.4% 4 Animal and vegetable oils and fats 207.0 178.9 15.7% 0.6% 0.4% 2 Crude materials inedible, except fuels 1,230.9 949.7 29.6% 3.4% 2.4% 3 Mineral fuels, lubricants, etc. 9,653.6 9,605.3 0.5% 26.5% 23.9% 5 Chemicals and related products 5,836.4 6,076.0 -3.9% 16.0% 15.1% 6 Manufactured goods classified chiefly 4,056.1 4,005.5 -4.0% 11.2% 10.5% by raw material 7 Machinery and transport equipment 6,766.0 9,679.8 -30.1% 18.6% 24.1% 8 Miscellaneous manufactured articles 3,942.2 4,804.5 -17.9% 10.8% 12.0% 9 Commodities and transactions not 16.0 29.2 -45.3% 0.0% 0.1% classified by category 0-9 TOTAL IMPORTS 36,370.3 40,116.0 -9.3% 100.0% 100.0% Source: KEEM calculations based on original preliminary data of EL.STAT. (Ship imports included)

10 V ii) Total trade in Euros and its growth in services (Three main categories)

January-October 2011 (In million €) Commercial Services’ Balance (preliminary data) 2009 2010 2011 Commercial Services’ Balance (I-II) 11,863.9 12,272.8 13,429.1 I. Exports 23,688.6 25,015.8 25,128.7 Transportation Services 9,994.5 9,246.4 10,167.7 Travel Services 11,268.8 13,011.4 11,701.8 Other Commercial Services 2,425.4 2,758.0 3,259.3 II. Imports 11,824.7 12,743.0 11,699.6 Transportation Services 2,017.7 1,835.4 1,904.2 Travel Services 5,818.8 6,816.3 6,077.2 Other Commercial Services 3,988.3 4,091.3 3,718.2 Source: Bank of Greece

January-October 2011 (In million €) Merchandise Trade Balance (preliminary data) % change % change 2009 2010 2011 10/09 11/10 I. Exports of goods 12,633.4 13,699.6 8.4% 16,849.5 23.0% II. Imports of goods 38,209.1 38,180.4 -0.1% 39,931.9 4.6% Trade Balance (I-II) -25,575.7 -24,480.8 -23,082.4 Source: Bank of Greece

11 VI (i) Top ten export items from Greece to India (product, 8-digit level)

January-October 2011

CN VALUE VI Top 10 export items from Greece to India (i) Code (EURO €) Aluminium waste and scrap : 1 5,408,385 76.02.00.90 – Scrap Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a 2 local or wide area network), other than transmission or reception apparatus of heading 5,355,510 8443, 8525, 8527 or 8528 : – Parts : 85.17.70.90 – – Other Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 6801; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of 3 natural stone (including slate) : 2,380,566 – Other monumental or building stone and articles thereof, simply cut or sawn, with a flat or even surface : 68.02.21.00 – – Marble, travertine and alabaster Aluminium waste and scrap : 4 – Waste : 1,614,046 76.02.00.19 – – Other (including factory rejects) Refractory cements, mortars, concretes and similar compositions, other than products 1,383,276 5 38.16.00.00 of heading 3801 Copper waste and scrap : 6 1,373,861 74.04.00.10 – Of refined copper Conveyor or transmission belts or belting, of vulcanised rubber : 7 – Conveyor belts or belting : 1,290,199 40.10.11.00 – – Reinforced only with metal Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 6801; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of 1,226,518 8 natural stone (including slate) : – Other : 68.02.91.00 – Marble, travertine and alabaster Copper waste and scrap : 9 – Of copper alloys : 1,085,793 74.04.00.99 – – Other Printing machinery used for printing by means of plates, cylinders and other printing components of heading 8442; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof : 10 – Printing machinery used for printing by means of plates, cylinders and other printing 1,050,000 components of heading 8442 : – – Other : 84.43.19.70 – – – Other TOTAL EXPORTS TO INDIA 42,982,592

Source: Hellenic Statistical Authority (EL.STAT.) / Provisional data

12 VI (ii) Top ten import items of Greece from India (product 8-digit level) January-October 2011 VI CN VALUE Top 10 import items of Greece from India (ii) Code (EURO €) – Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils : 1 – – Other : 178,960,664 – – – Heavy oils : – – – – Gas oils : – – – – – For other purposes : 27.10.19.41 – – – – – – With a sulphur content not exceeding 0,05 % by weight – Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils : 2 – – Other : 90,394,615 – – – Medium oils : – – – – For other purposes : – – – – – Kerosene : 27.10.19.21 – – – – – – Jet fuel Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars : 3 24,993,383 – – Of a cylinder capacity exceeding 1000 cm3 but not exceeding 1500 cm3 : 87.03.22.10 – – – New Other oil seeds and oleaginous fruits, whether or not broken : 4 – Sesamum seeds : 11,328,982 12.07.40.90 – – Other Electrical transformers, static converters (for example, rectifiers) and inductors : 5 – Liquid dielectric transformers : 9,210,166 85.04.21.00 – – Having a power handling capacity not exceeding 650 kVA Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting 6 7,886,670 23.04.00.00 from the extraction of soya–bean oil Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; aquatic invertebrates other than crustaceans and molluscs, live, fresh, chilled, frozen, dried, salted or in brine; flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption : – Cuttle fish (Sepia officinalis, Rossia macrosoma, Sepiola spp.) and squid (Ommastrephes 7 spp., Loligo spp., Nototodarus spp., Sepioteuthis spp.) : 5,805,428 – – Other : – – – Frozen : – – – – Squid (Ommastrephes spp., Loligo spp., Nototodarus spp., Sepioteuthis spp.) : – – – – – Loligo spp. : 03.07.49.38 – – – – – – Other Coconuts, Brazil nuts and cashew nuts, fresh or dried, whether or not shelled or peeled : 8 – Cashew nuts : 5,188,703 08.01.32.00 – – Shelled Nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds : 9 4,779,827 – – Other : 29.34.99.90 – – – Other Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars : 10 – Other vehicles, with spark–ignition internal combustion reciprocating piston engine : 4,327,305 – – Of a cylinder capacity not exceeding 1000 cm3 : 87.03.21.10 – – – New

13 TOTAL IMPORTS FROM INDIA 491,669,433 Source: Hellenic Statistical Authority (EL.STAT.) / Provisional data VII. Major investments within and outside the country

. The multinational Novartis has entered into a strategic alliance- for a period of 4 years- with the Greek pharmaceutical company ELPEN that will result in the co- promotion of six medicinal products, for high blood pressure, heart disease and diabetes.

. According to the press, in late November, the production of a new generation of “PONY” cars is expected to begin in 2012, aiming to win a market share not only in the Greek market, but also those in countries of Africa, such as Egypt and Angola, who have already shown an interest because of its durability and low price. Manufacturer’s goal is for the new “Pony 4” not to exceed the value of €7,000. It is also considered the possibility to build industrial units in concerned countries of Africa and Asia.The Greek-made legendary car is ready to be re-launched, almost after 30 years. The NAMCO Company is currently carrying out a new investment in Raidestos area in Thessaloniki, to produce a new Stalion 4X4 model and the CITY STAR, a pioneering electric car. "We want to offer simple cars, small, rational, non- polluting and above all, cheap. NAMCO has created its own school in the specific PONY-type cars, which may not satisfy the refined tastes or interests of the rich, but will appeal to the mass production of emerging countries, the only supporters of the real economy," says to daily news Mr. Petros Tzannetos- Kontogouris, Chairman of the Board of the company, appearing optimistic about the new beginning.

. Marfin Investment Group (“MIG”) announced in mid-November that it has reached a strategic understanding with the Abu Dhabi Mar / Privinvest Group of companies (“ADM”) in order to jointly pursue and exploit investment opportunities in Greece, Cyprus and the Balkans region. As per the announcement of MIG, (1) the ADM will become a shareholder of a to be determined amount of the share capital of MIG and/or a convertible bond investor in MIG as soon as practically possible. Concurrently Mr. Iskandar Safa, Chairman of ADM, will be elected as Vice Chairman of the Board of Directors of MIG. (2) MIG will eventually become an investor of a to be determined amount of the share capital of Hellenic Shipyards S.A. / Skaramangas (“HSY”) retaining one board seat of HSY, and will assist in the management of this company.

VIII. India’s investment interests

. An India Tourism Road Show was organized on 21st November 2011 in Athens, at the Hilton Hotel, by the Embassy of India in Athens in cooperation with the India Tourism Office, Milan. The Event was addressed by the Ambassador of India in Athens Mr. Tsewang Topden. A complete presentation about India tourism was given by Mr. Gobind Bhuyan, Director of India Tourism Office, Milan, following a workshop between Indian tourist offices and Greek travel agents/offices. Also, promotional material for tourism was distributed to the attendees.

. An article by the Ambassador of India in Athens Mr. Tsewang Topden was published in a large circulation Sundays newspaper “To Vima” on 6th November 2011 under the title “Tourism "passage" in India - "Building" the image of Greece through films that reach millions of people - Bollywood is being utilized

14 for our country’s debut in the Indian market. Article was accompanied with a photo with the comment Film crew during the shooting of an Indian film in October in Mykonos. "Bollywood has proven a great promotional tool for countries hoping to highlight themselves in the Indian traveler market," states the India's Ambassador. "Aimed at millions, not only in India but worldwide, where Bollywood is popular", since its films are "a very strong influence." Mr. Topden notes that two Bollywood films have shot in Mykonos, Nafplio, and some other parts of Greece. "To attract them you need to consider some issues, such as facilitation of visa and filming permit as well as special arrangements with local authorities to meet the prerequisites of the film crew," he explains and adds that the benefits are many. "Recently a Bollywood film that was shot in different cities of Spain had a magical effect, with travel agencies being swamped by requests from Indian travelers who wanted to follow the same schedule as in the movie. Indeed, some of them insisted in the repeat of the tomato festival! The "passage" to India is one of the strategic objectives of the tourism policy for 2012 in line with the expansion into new markets to offset the decline of traditional markets. The first exploratory visit to the promising market of India took place by the Secretary General of the Greek National Tourist Organization (EOT) Mr. Koletsos in early September, where he had meetings with the major tour operators Thomas Cook, Cox & Kings and Kuoni and five destination organising companies. He points out that in order for the tourism “passage” to India to be successful over the long term, the simplification of visa procedures, direct air link between the two countries and the implement of the program for "the building" of Greece’s image as a tourist destination in the Indian the market is necessary. He underlines the need to allocate funds for the branding of the country, cooperation with travel agencies and the realization of familiarization trips (fam trips) to Greece. "What is certain is that this is a good time, and a large number of Indian tourists are always seeking new destinations," says Mr. Topden. As noted "the grand opening could be achieved through direct flights, something which both sides are working on. Currently there are no direct flights between our countries, but both sides are considering the possibilities. "Similarly” he adds that "there are direct flights from some neighboring countries to India" suggesting the cooperation and association of travel agencies in Greece and India "in order to sell packages of these destination spots in Greece." At the same time he adds the efforts of «the Greek government agencies, the Indian tourism office and private enterprise" are on the right track. Under this framework Travel Plan organized a familiarization trip from 10 to 14 October in Athens and the Peloponnese, which included 17 representatives of major travel agencies in India specializing in outbound tourism and five journalists. The Indian Ambassador also referred to promoting further the trade relations between Greece and India “to keep pace with the political proximity of the two countries," said, as trade and exports are valued at "less than a billion Euros”'. Within this framework the 6th Indo-Greek Joint Economic Commission took place in March in Athens, which explored issues such as renewable energy, IT, shipping, power generation and distribution, food and dairy industry, heavy industry, "and also discussed our invitation to Greek construction companies to participate in infrastructure development activities in India," says Mr. Topden and added that the Indian delegation led by the Minister of Trade and Industry Mr. Jyotiraditya Scindia “was briefed on the privatization plans in Greece”. In early 2012 the visit of a Greek delegation to India led by the Greek Deputy Foreign Minister Mr. D. Dollis is expected, as well as a business delegation from Thessaloniki in February 2012.

. On 15 November 2011, the foundation of a Hellenic-Indian Chamber of Commerce was announced by its Executive Committee. Its President is a ship

15 owner Mr. Michael Bodouroglou, who stated at a press conference at the Athens Chamber of Commerce, on the dynamics of India’s economy as well as the investment opportunities. The President of the Athens Chamber of Commerce Mr. Konstantinos Michalos underlined the importance of the establishment of the Hellenic-Indian Chamber. The Executive Committee is comprised of: Mr. Michalis Bodouroglou (President), Mr. George Gerardos (A’ Vice-President), Mr. Manolis Aggelakas (B’ Vice-President), Mr. Patroklos Georgiadis (General Secretary), Mr. Christos Dimas (The Board Treasurer), Mr. Syridon Kouroupis (Executive Vice- President), Elias Kopanitsas (Member), Giannos Grammatidis (Member), Michalis Kyriakidis (Member), Petros Diplas (Member) and Vaggelis Antonatos (Member).

IX. Other news items of interest (Any other factor impacting on trade and economic relations)

. As it was announced on 3 November 2011, the three European Supervisory Authorities (ESAs), ESMA, EBA and EIOPA respectively, appointed members and alternates of their joint Board of Appeal. The joint Board of the ESAs is independent from their administrative and regulatory structures and will hear appeals from certain decisions taken by the ESAs. The decisions of the Board itself are subject to appeal before the Court of Justice of the European Union. The joint Board of Appeal comprises six members and six alternates appointed for a term of five years, extendable once. The appointed members forming the body are senior experts in the fields of banking, insurance, occupational pensions, securities markets or other financial services. Mrs. Anna Konstantinou (Alternate, GR), Legal Adviser and General Director of the Motor Insurers’ Bureau of Greece, was selected amongst the members.

. Greek Environment, Energy and Climate Change Minister, Mr. George Papaconstantinou, had meetings with China Investment Corporation (CIC) officials on November 8, 2011. This is the first time CIC has held a meeting with the Greek government. The focus of the discussion was on Greece’s programme aimed at encouraging investment by simplifying the bureaucratic procedures currently in place. One such programme discussed was Helios alternative energy programme. Another point of discussion was the opportunities in the waste management infrastructure in Greece.

. According to the figures announced by the Greek Wind Energy Association (ELETAEN), aeolic parks in operation in October 2011 recorded an increase of 18.5% since the beginning of the year, surpassing 1,600 MW, Specifically, wind generators reached 1621.27 MW (1340.25 in mainland Greece and 281.02 in non- interconnected islands) and another 155.1 MW are under construction and expected to be operational by the end of the year or early 2012. Central Greece remains at the top of installations, with 537 MW, followed by the Peloponnese (267) and Eastern Macedonia-Thrace (241 MW). According to ELETAEN, businesses with the most wind megawatts in Greece are the French EDF (298.2 MW), the Spanish Iberdrola Rokas (246.9 MW), the Greek TERNA (211.5 MW), the Italian ENEL (171.4 MW) and the Greek Ellaktor (127.05 MW). The manufacturers of wind generators installed in the country are the Danish Vestas (market share 51%), the German Enercon (27.7%), the Spanish Gamesa (25.2%) and the Danish Nordex (4.7%).

16 . The European Medical Research Institute (EMRI) of Greek pharmaceutical company PharmServe Lilly was shortlisted among five candidates from a global pool by SCRIP magazine for best Clinical Research Team of the Year, 2011. According to the Invest in Greece Agency, It is the first time a Greek company has achieved such a notable distinction in the area of clinical research. The SCRIP AWARDS is an annual event that recognises excellence in the medical field. One of the award categories is clinical research, a complex process vital to the development of new medicines. The EMRI of PharmServe Lilly, founded 15 years ago, is manned by 30 distinguished scientists, has invested more than 25 million euro, and has succeeded in the creative cooperation with more than 1600 Greek doctors- researchers from at least 1000 research centers, in the framework of 100 clinical research programmes that have led to the collection of data from 14000 patients.

. Invest in Greece Agency had an active presence at the 3rd China Overseas Investment Forum held November 8-9, 2011 in Beijing. Invest in Greece Agency held an investment seminar to outline the economic trends in Greece and present investment opportunities, including the Greek privatisation agenda and the priority sectors of Renewable Energy, Tourism, ICT and Life Sciences.

. According to the Globe Shopper City Index-Europe, a new research programme developed by the British Economist Intelligence Unit (EIU), Athens is one of the leading European destinations of «global shoppers»- those who travel abroad to make purchases of consumer goods. In particular, Athens distinguished in the 'affordable prices' category, mainly due to the prices of two star hotels in the city, where it ranked 1st, together with two other cities. For the Globe Shopper City Index - Europe programme, the attractiveness of the image of 33 major European cities, regarding the shopping of international travelers, was investigated. Each city was rated on the basis of 38 criteria which fall into five different categories: shopping, affordability, comfort and service, hotels and transport, culture and climate. The findings show that the right balance between comfort and service, availability and price, plays a key role in the shopping of those traveling in international destinations. Overall results for the 33 cities that have been included in the survey (the rating was based on a scale of 0-100, where 100 = excellent shopping environment): Athens scored 56.2

. The Hellenic Ministry of Finance - General Accounting Office announced on 24/11/2011 that as of 2/1/2012 the new 2€ commemorative circulation coins with year mark 2012 celebrating 10 years of euro banknotes and coins, will circulate. The issuing volume is 1.000.000 coins. The design to center of the coin will symbolise the way in which the euro has become a true global player in the last ten years and its importance in ordinary people's lives (represented by the people in the design), trade (the ship), industry (the factory) and energy (wind power stations). Around the image will be written the “2002 2012” as well as the issuing country ΕΛΛΗΝΙΚΗ ΔΗΜΟΚΡΑΤΙΑ (HELLENIC REPUBLIC). The design of the common side and the edge lettering will be the same with the 2€ circulation coins with the normal design.

17 Somnath Halder First Secretary (HOC) Distribution: As per the standard list