Tuesday, 15 Decemberr 2009
BETA SECURITIES SA
Member of the Athens Stock Exchange

Market Comment
Greek market posted 2.6% on Monday, having registered a volatile session ahead of
PMs statement later in the afternoon. Banks soared 4.85% driven by NBG (+5.73%)
and Bank of Cyprus (+7.11%). PPC (+6.24%), Alpha Bank (+4.11%), Eurobank
(+4.04%) Bank of Piraeus (+3.16%). We expect the market’s reaction on Greek PM
fiscal measures. Also announcement of PPI and Industrial production today in US.

Greek Macro
Greek Prime Minister George Papandreou on Monday announced a series of fiscal
measures to cut huge deficits, including social security spending cuts and a 90
percent tax on banker's bonuses.

* PUBLIC SECTOR:
- A freeze for public sector wages above 2,000 euros a month and a 10 percent cut
in additional, supplemental wages, which often account for a substantial part of
public workers' overall salaries.
- Hiring freeze for permanent public sector jobs in 2010, excluding health and
education, and hiring of one new civil servant for every five retiring from 2011
onwards.
- One-third reduction of all short-term employment contracts in the public sector in
2010.
- Shutdown of a third of all National Tourism Organization offices abroad and
reduction of Greek embassy press offices.

* MANAGER PAY
- For 2010, board member pay at public enterprises will be cut by 50 percent.
Managers' compensation in state-run companies will be capped and cut by at least 10
percent.
- No bonuses to managers of state-controlled banks. Bonuses for private bank
managers will be taxed at a rate of 90 percent.

* SOCIAL SECURITY
- 10 percent reduction in social security expenditure in 2010. He did not spell out
specifics.

* RAISING TAXES AND REVENUES:
- Introduction of a single progressive tax scale for all sources of income. The
question remains, whether the 45 percent taxation bracket for revenues over 75,000
euros will be extended to revenues above 50,000 euros or lower.
- Reintroduction of progressive tax on large property, inheritances and bequests.
- Abolition of tax exemptions and a current, flat-rate tax regime for certain
professional groups.
Introduction of capital gains tax and effective taxation of offshore companies.
- Tax evasion is a top priority.
- Privatizations
- Debt will start coming down in 2012 at the latest

Corporate News
Ellaktor / will team up with French peer Vinci) to bid for a major airport project in
the country, Ellaktor said on Monday. A Greek senior infrastructure ministry official
told Reuters last month the government planned to re-launch by the middle of next
year a tender to build a 1 billion euro.

Emporiki Bank / EGM decided the capital raise of €1 billion at €5.5 per share. The
capital raise is expected to take place in mid February 2010.

World Economy
European Monetary Union
Industrial Production s.a. (MoM) (Oct) –0.6% in line with estimates (Sept: +0.3%)