Greece Accelerates Privatizations To Placate Angered Troika
The Ministry of Finance has pledged on Thursday to accelerate privatizations and development of real estate assets, as Greece faces the anger of international lenders and the risk of not receiving the fifth instalment of aid loan. However, these commitments are subject to political developments and the country’s failure to implement its fiscal program.
The developments were launched by the inability to take bold measures in order to cover the gaps of €6.4b in 2011. The problem was reflected in Thursday’s extraordinary meeting of the cabinet under the FinMin Giorgos Papakonstantinou. Sources note that the ministers were asked to propose new measures, provoking the anger of many of them.
Earlier, a meeting between Papakonstantinou and troika officials had been held on the same issue. The failure to convince them along the aggressive statements of international officials (IMF, Dutch government) about a possible non-disbursement of the fifth tranche have narrowed the margins even more.
Thus, in an effort to convince the troika of its intentions, the ministry announced a meeting with Deutsche Telekom, possibly over the weekend, on the sale of at least 10% stake of OTE.
Moreover, the government promotes to announce the tenders for the entire privatization program of 2011 within the summer. The agenda includes Hellenic Postbank, Piraeus and Thessaloniki Port, State Lotteries, gas company DEPA, metallurgical company LARKO, Hellenic Defence Systems, Monte Parnes Casino, Horse Racing Organization and TRAINOSE. The package is expected to be enriched with more companies. Regarding real estate assets, Elliniko is considered the landmark of property.
A major issue consists the guarantee for the Public Asset Fund, whether the German model will be followed or the government’s position will prevail, asking for a state body with the “technical support” of troika. An alternative proposal would be the supervision of EU, ECB or IMF.
(capital.gr)