Greek Regime, Under Fire, Rejects Resignation Calls

Greece’s Socialist government, badly battered by its handling of a major bank scandal, today rejected calls by opposition parties to resign and hold elections.

Elections will be held on schedule next June, a government spokesman said, adding that those calling for elections--virtually every opposition party--were seeking to undermine the country.

“This is the message of those who want to lead Greece into a state of non-government and chaos,” Sotiris Kostopoulos told reporters.

The Socialists came under fierce attack on Monday when a young Greek-American newspaper and banking tycoon--the man at the center of the scandal--vanished.

George Koskotas, whose meteoric rise to chief of a financial empire had stunned the business community, was charged two weeks ago with embezzlement, forgery and obstructing state investigators.

The main opposition party charged that some government ministers may have been implicated in the affair.

After being charged, Koskotas sold his majority interest in the Bank of Crete, two of his newspapers and other assets. His wife, brother and other family members left the country.

Despite 24-hour-a-day police surveillance, Koskotas himself disappeared Monday and police say they do not know where he is. They do not even know if he is in Greece.

Koskotas’ vanishing act prompted the public order minister to resign.

Main opposition leader Constantine Mitsotakis said the suspicion of intrigue surrounding Koskotas’ disappearance fell clearly on the government.