The International Investors’ View Of Risks and Opportunities in Greek Financial Assets Materials for Presentation November, 2000

Overview  Greek Economy – An Overview  Macroeconomic Development and Indicators  Credit Ratings and Rating history of the Hellenic Republic  Credit Developments and Implications  Bond Markets  Equity Markets  Macro-economic risks  Addressing the Changing Market Environments

Greek Economy – Overview of a positive development  1999E GPD US$ 128.9b. (2000E US$ 123.5bn.)  Real GDP Growth rate above EU average since 1996 – 3.5% in 1999  Large public sector in the economy  Steady economic improvements in recent years  Improving public deficit and tightened monetary policy  On-going low inflation - average of 2.6% in 1999  Privatisation for leading Government enterprises in progress  Convergence and integration in EMU well on track  Falling interest rates and improved credit profile Source: CIA World Fact book 2000

Greek Economy – Inflation Declined whilst Growth Increased Source: National Bank of Greece; CSFB Research

Greek Economy – Unemployment and Interest Rates Are Heading Down Source: National Bank of Greece; CSFB Research

Greek Economy – Deficit Control at Work Source: National Bank of Greece; CSFB Research

The Sovereign Credit Rating of Greece: Now Firmly Single-A Moody’s Foreign Currency: A2 Local Currency: A2 Outlook: “STABLE” Standard & Poor’s Foreign Currency: A- Local Currency: A- Outlook: “POSITIVE” Fitch Foreign Currency: A- Local Currency: A- Outlook: “STABLE”

Sovereign Rating History – LT Foreign Currency Debt Baa2 / BBB Ba2 / BB A2 / A Aa2 / AA Aaa / AAA A3 / A- Baa1 / BBB+ Baa3 / BBB- Ba1 / BB+ A1 / A+ Aa3 / AA- Aa1 / AA+

Credit Spread: Hellenic Republic $ Bond (2008) – US$ Swap

Hellenic Republic – Credit Development  Country Risk has declined  Greek Government has gained credibility  Foreign currency credit “ceiling” has been upgraded to Aaa by Moody’s  Convergence to EMU criteria is well on track  Entry in Euro-zone likely to result in:  Monetary Stability  Low interest rates  Reduced exchange rate risk  Financial markets denominated in Euro’s  Better level-playing field with other European countries  For the international investor these macro-economic developments may relatively increase the attraction of Greek investments

Greek Issuers are well Established in the Eurobond Markets US$ mil. Source: Bondware Bond Issuance by rating Bond Issuance by sector

Equity Markets – Market Capitalisation GRD bn. Data Source: National Bank of Greece  Correction and slow-down in 2000  Volatility in the Greek equity market  World-wide volatility in equity markets  Volatility due to limited size and liquidity  Volatility due to significant concentration  Consolidation in Banking sector  Large caps and telecom performance has retained strong performance

Equity Markets Source: Bloomberg. 02/01/1998=100 European Equity Indices

The Greek Stock Market – Concentration and Diversity Main Sectors in the Economy: Banks27.7% Telecom12.6% Metal industry7.3% *15 Largest Companies by Market Capitalisation

Modernizing the Economy and Reducing Public Debt through Privatizations “Privatisation Programme well on track”:  Increased market volume  Increased market liquidity

Macroeconomic Risks – Investors’ viewpoint Tight Financial and Monetary Policy likely to continue  High level of public debt will remain a constraint for years to come  EMU convergence well on track – but still incomplete  Unemployment still a major challenge Further Slowdown of EU growth  GDP growth slows down by 0.7% for each 1% reduction in EU growth  Current Account deficit to GDP increases and neutralises the devaluation effect Increase in import prices  Sustained high oil price may adversely affect economy  EUR/USD exchange rate affects GRD price of oil and commodities  Inflation increases by 0.20pp for every 1% increase in import prices Data Source: National Bank of Greece

Addressing the Changing Market Environments Move from EMI to MSCI in 2001 will impact the Greek business environment  Analytical focus will move from country base to sector base  Relevant peers will now be top performing worldwide corporates Recommended approach for Greek companies :  New beginning in communicating with investor community  Increased transparency  Improved financial reporting  Adoption of IAS in addition to Greek GAAP  Improved Investor Relations capabilities  Communication  Corporate information readily available > Value creation through analyst and investor “friendly” corporate structures and communication policies