Greece. A. Definitions and sources of data

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1 Greece A. Definitions and sources of data The Bank of Greece introduced a new balance of payments-data compilation system in 1999, basically in line with international standards as recommended in the International Monetary Fund s Balance of Payments Manual, 5 th edition. Under the new system, foreign direct investment (FDI) flow data are compiled monthly, based on an international transaction reporting system (ITRS). FDI flow data prior to 1999 refer to foreign exchange transactions of domestic firms, regardless whether such transactions were conducted between residents or non-residents, as the previous data collection system was based on exchange controls and the monitoring of foreign exchange flows. In order to compile FDI stock data, annual enterprises surveys were introduced, using a business register of enterprises involved in direct investment. Prior to 1999, estimates for the stock of FDI presented in this country profile were derived by accumulating flows. In the past, the Ministry of National Economy provided approval data; since 1986, FDI in Greece has been liberalized and is subject to authenticity and legality controls only. Approval data ceased to be reported in The International Monetary Fund reports data on the inward flow of FDI into Greece, since Data on the operations of foreign affiliates in Greece and of affiliates abroad of Greek TNCs were compiled for the first time for the reporting year 2000, by the Bank of Greece. Posting date: 19 September 2005

2 B. Statistics on FDI and the operations of TNCs

3 UNCTAD WID Country Profile: GREECE Page 3 of 15 Table 1. Summary of FDI (Millions of dollars) Variable Inward Outward 1. FDI flows, (annual average) FDI flows as a percentage of GFCF, (annual average) FDI stock, FDI stock as a percentage of GDP, Sources : Based on tables 3a and 4 and UNCTAD, FDI/TNC database. Table 2. Summary of international production (Number and millions of dollars) Variable Home-based TNCs Affiliates of foreign TNCs in Greece Foreign affiliates of home-based TNCs abroad 1. Number, 2003* a 407 a 2. Employment, 2003* a a 3. Sales, 2003* a a Source: Bank of Greece, unpublished data. *Provisional data a Refers to majority-owned foreign affiliates.

4 UNCTAD WID Country Profile: GREECE Page 4 of 15 Year Equity Table 3a. FDI flows, by type of investment, (Millions of dollars) Inward investment Reinvested earnings Other Total Equity Outward investment Reinvested earnings Other Total Source: Bank of Greece, unpublished data.

5 UNCTAD WID Country Profile: GREECE Page 5 of 15 Year Equity Table 3b. FDI flows, by type of investment, (Millions of dollars) Inward investment Reinvested earnings Intracompany loans Total Equity Outward investment Intracompany Reinvested earnings loans Source : International Monetary Fund, Balance of Payments CD ROM, March Total

6 UNCTAD WID Country Profile: GREECE Page 6 of 15 Year Equity Table 4. FDI stocks, by type of investment, (Millions of dollars) Inward investment Reinvested earnings Other Total Equity Outward investment Reinvested earnings Other Total Sources: Data from 1999 to 2004: Bank of Greece. Stock data from 1990 to 1998 are estimated by subtracting flows from the stock of 1999.

7 UNCTAD WID Country Profile: GREECE Page 7 of 15 Company Industry Sales Employees A. Industrial Hellenic Petroleum Petroleum Coca-Cola Hellenic Bottling Company Food and beverages Motor Oil SA Petroleum Viohalco (CB) Metal products Titan Cement Property Non-metallic mineral products A-B Vassilopoulos Food Heracles Non-metallic mineral products Elval Metal products Delta Holding SA Food Aluminium Company Greece Metal products Frigoglass Machinery equipment MJ Mailis SA Non-metallic mineral products S & B Industrial Minerals SA Metal products Hellenic Sugar Industry Food Crown Hellas Can Metal products Mytilineos Hldgs Mining B. Tertiary Table 86. Largest home-based TNCs, 2003 (Millions of Euros and number) OTE-Hellenic Telecommunications Organisa Telecommunications Public Power Corporation Electricity gas and water Opap Entertainment Technical Olympic Construction Cosmote Mobile Telecommunications Telecommunications Vodafone Panafon Hellenic Telecommunications TIM Hellas Telecommunications Telecommunications Germanos Telecommunications Intracom Property Telecommunications Atlantic Supermarket SA Trade Info Quest CR Computer and related activities Attica Holdings SA Transport and storage Athens Water Supply & Electricity gas and water Lavipharm CR Trade Intralot SA Computer and related activities C. Finance and Insurance Assets Employees National Bank Of Greece Finance Bank Of Greece Finance Alpha Bank SA Finance EFG Eurobank Ergasias SA Finance Emporiki Bank Of Greece SA Finance Bank Of Piraeus Finance Aspis Housing Bank Finance Ethniki Greek GEN In Co Insurance Sources: Thomson Financial Piranhaweb ( Who Owns Whom, 2003 (London, Dun and Bradstreet Ltd., 2003), various company websites.

8 UNCTAD WID Country Profile: GREECE Page 8 of 15 Table 87. Largest foreign affiliates of home-based TNCs, 2000 (Millions of dollars and number) Company Name Host Economy Industry Sales Employees A. Industry Don & Low Ltd United Kingdom Textiles Metal Agencies Ltd United Kingdom Metals Steelmet A D Bulgaria Metals Titan Atlantic Cement Industrial & Commercial Company SA United States Non-metallic mineral products Belovo Paper Mill SA Bulgaria Paper Payne Strapping Systems Ltd United Kingdom Plastic products Heliflex Petzetakis Tubos Lda Portugal Plastic products Cerbere Agrifvit France Machinery and equipment 8 33 Delvi - POOD Bulgaria Food Eurodrip Inc United States Plastic products 8 40 Teita Estate Ltd Kenya Textiles 7 50 A. Petzetakis Gmbh Germany Plastic products 5 11 Ideal Grafico Limited Cyprus Electrical and electronic equipment 4 47 Jumbo Investments Ltd Cyprus Other manufactring 4 25 M.J. Maillis España SA Spain Plastic products 4 26 B. Tertiary Newmark Home Corporation United States Construction Candia Shipping USA Inc United States Transport and storage Europe Technic, Spol. SRO Czech Republic Trade Intrasoft International SA Luxembourg Computer and related activities 16 Neoset Canada Inc Canada Trade 5 50 Mediterranean Convention & Incentive Travel Inc United States Tourism 4 14 Sit Kyros (Cyprus) Ltd Cyprus Trade 3 56 Michail A Karageorgis of NY Inc United States Transport and storage 1 3 Pollux Marine Agencies Inc United States Transport and storage 1 3 Sarantis UK Ltd United Kingdom Other services.. 4 Candia Shipping (U K) Ltd United Kingdom Transport and storage.. 1 Aimclock Ltd United Kingdom Real estate.... C. Finance and Insurance Assets Employees Atlantic Bank of New York Inc United States Finance Alpha Bank Limited Cyprus Finance United Bulgarian Bank A D Bulgaria Finance Banque Nationale de Grece (Canada) Canada Finance Commercial Bank Of Greece (Germany) GmbH Germany Finance NBG International Ltd United Kingdom Finance 6 14 France Banque Nationale De Grèce France Finance.. 52 Sources: The Banker's Almanac, 2001 (London, Reed Information Services Ltd, 2001); City Guide to Hungary (Budapest Business Journal/ITD Hungary, 1999); Classic Ratings Database, 2001 (New York, McGraw-Hill Companies, 2001); Foreign Investment in Latin America & the Caribbean (ECLAC, United Nations 2000); Thomson Financial Piranhaweb ( Who Owns Whom, 2001 (London, Dun and Bradstreet Ltd, 2001); Worldscope Database, June 2001; World Investment Directory Asia and the Pacific (Geneva, United Nations, 2000); World Investment Directory Central & Eastern Europe (Geneva, United Nations, forthcoming); Wright Company Analysis ( various company websites.

9 Company Home Economy Industry Sales Employees A. Industrial Shell Hellas S A Netherlands Petroleum Mobil Oil Hellas S A Netherlands Petroleum Kosmocar S.A. Switzerland Motor vehicles Athenian Brewery S.A. Switzerland Beverages Aluminium of Greece S.A. Canada Metal products Siemens S.A. Germany Electrical and electronic equipment Imperial Tobacco Hellas S.A. England Tobacco Toyota Hellas S.A. England Motor vehicles Sony Hellas S.A. Japan Electrical and electronic equipment Unilever Hellas S.A. Netherlands Chemicals Fiat Auto Hellas S.A. Italy Motor vehicles Lever Hellas S.A. Netherlands Chemicals Philips Hellas S.A. Netherlands Electrical and electronic equipment Hellenic Steel CO. S.A. Italy Metal products Boehringer Ingelheim Hellas S.A. Germany Pharmaceutical B. Tertiary UNCTAD WID Country Profile: GREECE Page 9 of 15 Table 88. Largest affiliates of foreign TNCs in the host economy, 2003 (Millions of United States Dollars and number) Vassilopoulos Alfa-Beta S.A. Netherlands Trade Stet Hellas Telecommunications S.A. Italy Telecommunications Vodafone-Panafon S.A. England Telecommunications Lion Hellas S.A. Ireland Automotive trade and repair Dia Hellas S.A. France Trade Praktiker Hellas S.A. Germany Trade Pfizer Hellas S.A. USA Trade Trofo S.A. Netherlands Trade Hyatt Regency S.A. India Trade Roche Hellas S.A. Switzerland Hotels and restaurants Astrazeneca Pharmaceutical S.A. England Trade Siemens Teleindustrial S.A. Germany Electrical and electronic equipment L'Oréal Hellas S.A. France Trade Multichoice Hellas S.A. Netherlands Publishind printing and media C. Finance and Insurance Assets Employees Interamerican Hellenic Life Insurance Co S A Netherlands Insurance Allianz General Insurance company S.A. Germany Insurance.. Generali Life S.A. Italy Insurance.. 40 Generali Hellas S.A. Italy Insurance Sources: The Banker's Almanac, 2003 (London, Reed Information Services Ltd., 2003); Classic Ratings Database, 2003 (New York, McGraw-Hill Companies, 2003); Thomson Financial Piranhaweb ( Who Owns Whom, 2003 (London, Dun and Bradstreet Ltd., 2003); Global Researcher - Worldscope Database (CD-Rom) June 2003;

10 UNCTAD WID Country Profile: GREECE Page 10 of 15 C. Legal framework for FDI 1. National policy framework Greece s policy aims at providing an encouraging environment for FDI. As of December 2004, the main features of the FDI regime include the following, Entry and establishment: Most industries are open to foreign investors. The Government recently opened the telecommunications market and planned to gradually liberalise the energy industry. The Hellenic Centre for Investments (ELKE) established in 1996 functions as a one-stop shop for foreign investors. Ownership and control: Ownership restrictions apply in a few industries, including in television, ships, and mining. Operational conditions: There are no mandatory performance requirements. Some performance requirements are imposed as conditions for incentives but local content is no longer required. There are restrictions regarding purchases of land in border regions and certain islands. Foreign investors are granted national treatment with respect to business operations including licenses and supplies. Foreign exchange controls: Capital inflows are allowed freely into the country. Repatriation of investment is allowed and guaranteed. Profit and other remittances are also allowed freely subject to reporting requirements. Incentives: Investment incentives are offered to both foreign and domestic investors on an equal basis. These include tax exceptions, grants and subsidized loans to stimulate regional development, job creation, competitiveness, industrial restructuring, environmental protection and energy saving. The types of activity eligible to participate in these schemes include most manufacturing industries, mining, energy, research laboratories and software development. Foreign firms are also allowed to participate in government financed or subsidised research and development programmes. Sources: The Economist Intelligence Unit. Country Commerce Greece December 2004, Internet. Main legislations relating to FDI Law No of 24 September 1920 as amended and supplemented by Law No of 20 February 1980 on Patents; effective 26 February Law No of 1987 on Patents. Law No of 29 June 1920 on Intellectual Property; effective 3 July Amendment: Law No of 12 November 1962; effective 12 November Law No of 31 October 1953 on Investments and Protection of Capital; effective 10 November Amendment: Law No of 13 October 1962; effective 19 October Law No. 2,121 of 1993 on Copyrights. Amendment: Law 2819 of 2000 on Copyright Protection of for Information Held in Databases. Law No of 1994 on Trademarks.

11 UNCTAD WID Country Profile: GREECE Page 11 of 15 Law No of 9 April 1955 on Closed Corporations (Limited Liability Companies); effective 16 April Law No of 26 February 1958 on Private Maritime Law; effective 28 February Law No. 187 of 29 September 1973 on Public Maritime Law; effective 3 October Law No. 959 of 18 August 1979 on Shipping Enterprises; effective 24 August Law No of 23 May 1961 on General Measures to assist the Development of the Country's Economy; effective 3 June Amendment: Law No of 23 May 1983; effective 24 May Laws No. 89 of 31 July 1967, effective I August 1967; No. 378 of 1968, No. 27 of 1975, No. 814 of 1978 on Incentives and Privileges for Foreign Enterprises. Law No. 468 of 1976 on Oil and Exploration and Development. Law No. 148 of 9 October 1967 on Incentives to Foster the Capital Market; effective 9 October Law No. 378 of 17 April 1968 on Establishment of Foreign Trading, Industrial and Shipping Enterprises, effective 17 April Law No of 7 January 1981 on Incentives for Regional and Economic Development; effective 14 January Presidential Decree No. 207 of 1987 on Unrestricted Capital Movement Between Greece and Other EEC Member States. Law No of 1995 for Promotion of Sources of Investment Capital for Small and Medium-Sized Enterprises. Codified Law 2190 of 1920 on Corporate Regimes. Amendments: Presidential Decrees 409 of 1986; 498 of 1987, 2,065 of 1992, 14 of 1993, 56 of 1993, 360 of 1993, 325of 1994, 326 of 1994, 367 of 1994, 882 of 1994.No., 2286 of 1995, 1339 of Law No of 1994 Designed to Encourage the Formation of Larger Companies. Law No of 1998 on Investment Incentives. Law No of 1994 Codifying Legislation and Amendment to Laws Governing Corporation and Personal Income Tax. Law No of 1997 Introducing Real Estate Tax for Large Properties. Law No of 1994; Law No of 1997; and Law No of 1998 on Auditing. Law No. 27 of 1975 (providing special benefits for offshore operations of foreign companies established in Greece).

12 UNCTAD WID Country Profile: GREECE Page 12 of 15 Amendment: Law No of Law 1297 of 1972, 2166 of 1993 on Merger of Small Enterprises. Law No of 1998 on Cross-Border and Mergers. Law No. 703 of 19 September 1977 on Control of Monopolies and Protection of Free Competition; effective 26 September Amendment: Acts No of 1991, No of 1991, Law No of 1995, No of 1999, 2837 of Law 2246 of 1994 on Telecommunications Market. Hydrocarbons Exploration Law No. 2,289 of Law No of 1999 on Energy Market. Law No of 2001 on Establishing a Corporation. Law No of 2004 on Corporate Income Tax. 2. International framework a. Multilateral instruments Paris Convention for the Protection of Industrial Property of 20 March 1883, as amended and revised. New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 10 June Convention on the Settlement of Investment Disputes between States and Nationals of Other States of 18 March 1965, signed on 16 March 1966, effective 21 May ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, adopted on 16 November The Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices, adopted on 5 December 1980 by the General Assembly of the United Nations (resolution 35/63). Convention Establishing the Multilateral Investment Guarantee Agency of 11 October 1985, signed on 18 July Agreement on Trade-Related Investment Measures, signed on 15 April 1994; in force on 1 January General Agreement on Trade in Services, signed on 15 April 1994; in force on 1 January Fourth Protocol to the General Agreement on Trade in Services of 15 February Fifth Protocol to the General Agreement on Trade in Services of 12 December Agreement on Trade-Related Aspects of Intellectual Property Rights, signed on 15 April 1994; in force on 1 January 1995.

13 UNCTAD WID Country Profile: GREECE Page 13 of 15 a. Regional instruments Treaty Establishing the European Community (Treaty of Rome), adopted on 25 March 1957 and in force on 1 January It was subsequently amended by the Single European Act (singed on 17 and 28 February 1986) and by the Treaty on European Union (Treaty of Maastricht) (signed on 7 February 1992). Code of Liberalisation of Capital Movements, adopted by the Council of the Organization for Economic Cooperation and Development on 12 December The Code was amended on several occasions. Code of Liberalisation of Current Invisible Operations, adopted by the Council of the Organisation for Economic Cooperation and Development on 12 December The Code has been amended on several occasions. Declaration on International Investment and Multilateral Enterprises, adopted by the Council of the Organisation for Economic Cooperation and Development on 21 June The Declaration and the Guidelines for Multinational Enterprises attached to the Declaration were revised on several occasions (1979, 1984, 1991 and 2000). Agreement on the European Economic Area of 2 May 1992; entered into force on 1 January Energy Charter Treaty of 17 December 1994; effective since 16 April b. Bilateral treaties 1. Bilateral investment treaty for the protection and promotion of investments with Albania 01 Aug 1991; Algeria 20 Feb 2000; Argentina 26 Oct 1999; Armenia 25 May 1993; Bosnia and Herzegovina 12 Dec 2000; Bulgaria 12 March 1993; Chile 10 July 1996; and 25 June 1992; Congo, Democratic Republic of the 26 April 1991; Croatia 18 Oct 1996; Cuba 18 June 1996; Cyprus 30 March 1992; Czech Republic 03 June 1991; Egypt 16 July 1993; Estonia 17 April 1997; Georgia 09 Nov 1994; Germany 27 March 1961; Hungary 26 May 1989; Iran, Islamic Republic of 13 March 2002; Kazakhstan 26 June 2002; Korea, Republic of 25 Jan 1995; Latvia 20 July 1995; Lebanon 24 July 1997; Lithuania 19 July 1996; Mexico 30 Nov 2000; Moldova, Republic of 23 March 1998; Morocco 16 Feb 1994; Poland 14 Oct 1992; Romania 23 May 1997; Russian Federation 30 June 1993; Serbia and Montenegro 25 June 1997; Slovakia 03 June 1991; Slovenia 29 May 1997; South Africa 19 Nov 1998; Tunisia 31 Oct 1992; Turkey 20 Jan 2000; Ukraine 01 Sept 1994; Uzbekistan 01 April Bilateral treaties for the avoidance of double taxation with Albania 14 July 1995; Armenia 12 May 1999; Austria 22 Sept 1970; Belgium 24 May 1968; Bulgaria 15 Feb 1991; Canada 24 Nov 2003; China 05 June 2002; Croatia 18 Oct 1996; Cyprus 30 March 1968; Czech Republic 23 Oct 1986; Denmark 18 May 1989; Finland 21 Jan 1980; and 15 Nov 1995; France 21 Aug 1963; Georgia 10 May 1999; Germany 18 April 1966; Hungary 25 May 1983; India 11 Feb 1965; Israel 24 Oct 1995; Italy 19 March 1965; Italy 03 Sept 1987; Korea, Republic of 20 March 1995; Latvia 23 July 2002; Luxembourg 22 Nov 1991; Morocco 28 July 1980; Netherlands 16 July 1981; Norway 27 April 1988; Poland 20 Nov 1987; Portugal 02 Dec 1999; Romania 17 Sept 1991; Slovakia 23 Oct 1986; Slovenia 23 June 2001; Sweden 06 Oct 1961; Switzerland 16 June 1983; Tunisia 31 Oct 1992; United Kingdom 25 June 1953; United States 10 June 1988; United States 20 Feb 1950; United States 20 Feb 1950; Yugoslavia (former) 25 June 1997.

14 UNCTAD WID Country Profile: GREECE Page 14 of 15 D. Sources of information Official Bank of Greece. Federation of Greek Industries. Hellenic Bank of Industrial Development. Ministry of National Economy. National Statistical Service of Greece. Secondary 1. Apergis, Nicholas, D. Kyrkilis and A. Rezitis, "Exchange Rate Volatility and Inward Foreign Direct Investment in Greece: The Prospect of EMU Membership", International Review of Economics and Business, 49(4), Dec 2002, pp Avgoustidis, Nestor G. The legal environment of direct foreign investment in Greece, dissertation, Department of Management Studies (University of Glasgow, 1994). 3. Bourlakis, Constantine A., "Multinational corporations and domestic market structure : the case of Greek manufacturing industries", Weltwirtschaftliches Archiv, 123(4), 1987, pp Buckley, Peter J. and P. Artisien, Policy issues of intra-ec direct investment: British, French and German multinationals in Greece, Portugal and Spain, with special reference to employment effects, Journal of Common Market Studies, 26(2), 1987, pp Buckley, Peter J. and Patrick F. R., Artisien, North-South Direct Investment in the European Communities: The Impact of Direct Investment by British, French and German Multinationals in Greece, Portugal and Spain (Basingstoke, United Kingdom, Macmillan Press, 1987), 194 p. 6. Buckley, Peter J. and Socrates I. Papadopoulos, "Foreign direct investment in the tourism sector of the Greek economy", The Services Industries Journal, 8 (3), July 1988, pp Enders, Walter and Todd Sandler, Terrorism and foreign direct investment in Spain and Greece, Kyklos, 1996, 49, pp Euromoney, The 1995 Guide to Greece, September 1995, 24 p. 9. ILO, The Employment Impact of Multinational Enterprises in Greece, Portugal & Spain (Geneva: ILO, 1987). 10. Kamargiannis, Dimitrios, Die regionalpolitische Bedeutung der internationalen Wettbewerbsfahigkeit Griechenlands und der europaische Binnenmarkt (Marburg/Lahn, 1993). 11. Koronakis, Nikolaos I., Defining the crucial factors of investment level determination in an open economy: the case of Greece, a dissertation submitted for the degree of M. Phil in International Finance (University of Glasgow, June 1997). 12. Mardas, Dimitri and Nikos Varsakelis, Foreign direct investment in a small open economy: the case of Greece, Economia Internazionale,49, August 1996, pp Mauwet-Hunt, Christiane, Practical Guide to Foreign Direct Investment in the European Union: Austria, Belgium, Britain, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden (Genval: Euroconfidentiel S.A., 1997), 385 p. 14. Medrisch, Raimund, Industrielle Direktinvestitionen, Standortorientierung und Regionalpolitik: Theorie und Empirie des Standortverhaltens multinationaler Unternehmen und seine politische Beeinflussung : der Fall Griechenland (Munich, GHI-Verlag, 1985), 259 p. 15. OECD, OECD Reviews of Foreign Direct Investment: Greece (Paris: OECD, 1994). 16. Pantelidis, Pantelis and Dimitrios Kyrkilis, Market orientation of foreign direct investment in Greek manufacturing, Economia Internazionale, 47, May/August 1994, pp Petrochilos, George A., "Foreign banks in Greece", National Westminister Bank Quarterly Review, February 1985, pp Petrochilos, George A., "Foreign direct investment and concentration in Greek manufacturing", British Review of Economic Issues, 10(22), Spring 1988, pp Petrochilos, George A., Foreign direct investment and the Development Process : the Case of Greece (London, Gower Publishing Co., 1989). 20. Pitelis, Christos N., Roger Sugden and Lena Tsipouri, Outward investment, international competitiveness and industrial development: the case of Greece, Occasional Papers in Industrial Strategy, No. 23 (Birmingham: Research Centre for Industrial Strategy, 1994).

15 UNCTAD WID Country Profile: GREECE Page 15 of Ramakrishnan, Jessica, The southern border of the eurozone, Corporate Location, IV/2000, pp Yacoumatos, Constantine Ernest, The determinants of international direct investment: a critical evaluation of foreign investment theory and foreign investments in Greek manufacturing, Spoudai, 28, April/June 1978, pp