Troika Asks For Privatizations Monitoring And Dismissals
The tough negotiations between the government and the troika continued on Wednesday, focusing on staff dismissals in public organizations under shutdown or merger and stricter guarantees of raising €50b through privatizations.
Despite government officials leaked recently that the troika would just provide “technical support” in both the –under establishment- privatization fund and key positions in ministries and organizations, the international lenders seem to have a different view. Sources reveal that these two points of friction concern seriously the Greek side, as they could cause vast social and political reactions.
*Dismissals: the troika proposes that the employees of public organisations that shutdown or merge and state-owned companies that are privatized should be sacked, if they are found redundant. This provision is already included in the rule of 1 recruitment for 10 dismissal, but troika asks for a clearer wording of the text.
*Privatizations: Despite the launch of negotiations for Hellenic Telecoms (OTE), the troika still doubts about government’s intentions. It requests written assurances and conditions to commit both current and future governments that Greece should raise €50b through privatizations by 2015 to reduce debt.
The institutional framework of the Public Asset Fund is considered a key point, as it should be independent. The troika asks for a strong presence and decision-making power in the fund, which would substantially guarantee the repayment of the new loan.
Greece’s property management companies will be incorporated in the new fund, contributing real estate assets such as Elliniko, Afantou and Prassonisi in Greece, the Faliro Delta, Olympic Properties, facilities next to Rio-Antirrio Bridge, while approximately 75,000 assets would be listed.
Regarding the sale of public enterprises, the Greek government attempts to promote the sale of a stake in gas company DEPA, with ENEL, Gasprom, Gas De France and Electricite De France being interested according to sources. It also plans to speed up procedures for the privatization of Hellenic Postbank, Hellenic Horse Racing Organisation, Piraeus and Thessaloniki ports, Thessaloniki water company etc.
(capital.gr)