Euro zone technocrats recommend EU/IMF mission chiefs return to Greece for bailout talks (updated)

Thessaloniki Water Supply and Sewarage SA

31/03/2017 14:54

(Adds call to hire advisers for privatisations) 
    ATHENS, March 31 (Reuters) - Euro zone deputy finance 
ministers have recommended that Greek bailout review talks 
continue in Athens, a government official said on Friday, as 
Athens and its creditors seek a deal on reforms to unlock 
further aid. 
    The recommendation, after a teleconference late on Thursday, 
is a sign of progress in the drawn-out talks between Greece and 
its international lenders on the country's fiscal progress and 
on labour and energy reforms. The delays have rekindled fears of 
a new crisis in Europe. 
    The technical teams of the lenders, the European Union and 
the International Monetary Fund, are expected to make a final 
decision later on Friday on their return to Athens to wrap up 
talks on a technical agreement ahead of a meeting of euro zone 
finance ministers in Malta on April 7, the official said. 
    It was not yet clear how much progress had been achieved. 
    Sources told Reuters this week that Greece and its creditors 
had reached a broad outline of agreement on some key labour 
issues. 
    Athens had also agreed to cut pension spending and to lower 
the current tax-free threshold to about 6,000 euros, after its 
current, 86-billion euro bailout expires in 2018. 
    Slashing the market share of state-controlled Public Power 
Corp (PPC)  DEHr.AT  through the sale of coal-fired units was 
also under discussion. 
    These measures were aimed at convincing the IMF to 
participate financially in the bailout. EU countries, including 
Germany, want the Washington-based fund on board, to add 
credibility to a programme which has been a difficult test for 
European governments. 
    Greece also said on Friday it was starting the process to 
hire advisers for the privatisation of seven major companies in 
an effort to show that it is determined to stick to its bailout 
commitments and speed up the conclusion of the review.  
    The companies included PPC, in which the privatisation 
agency holds a 17 percent stake, and the Athens International 
Airport, which it owns 30 percent of. A 27 percent stake in 
water utility EYDAP  EYDr.AT  and a 74 percent stake in 
Thessaloniki Water  TWSr.AT  were also included in the process.  
    Advisers will be hired also for a 65 percent stake in 
natural gas company DEPA, a 35.5 percent stake in the country's 
biggest oil refiner Hellenic Petroleum  HEPr.AT  and a 5 percent 
share in telecoms operator OTE  OTEr.AT .  
    Privatisations have been a key term of the country's three 
international bailouts but have reaped poor revenues so far. 
 
 (Reporting by Renee Maltezou and Angeliki Koutantou; Editing by 
Alison Williams and Hugh Lawson) 
 ((renee.maltezou@thomsonreuters.com; +30 210 3376439; Reuters 
Messaging: renee.maltezou.reuters.com@reuters.net)) 
 
Keywords: EUROZONE GREECE/BAILOUT