Greece says progress in asset sales by June will decide if 2018 target feasible

Thessaloniki Water Supply and Sewarage SA

04/04/2018 11:38

By Angeliki Koutantou
    ATHENS, April 4 (Reuters) - Progress in key privatisations
by June will determine whether Greece will meet its bailout
target to raise 2 billion euros ($2.45 billion) from state asset
sales this year, the head of the country's privatisation agency
(HRADF) said on Wednesday.
    Asset sales have been a key pillar of the country's three
international bailouts since 2010 but because sales have been
slow proceeds of about 5 billion euros since 2011 are small
compared to the initial 50 billion euro target.
    The main obstacles have been a national debt crisis, a
strongly unionised public sector and a massive bureaucracy.
    "The period until June is a quite critical one, which will
essentially show whether the 2 billion euro target is feasible,"
HRADF'S executive chairman Aris Xenofos told Reuters. 
    Under its latest rescue programme, the agency has to launch
the sale of a 30 percent stake in Athens International Airport
and divest a stake in its biggest oil refiner, Hellenic
Petroleum  HEPr.AT .
    He said a long permit process from the EU's competition
watchdog has delayed a 480 million euro deal to extend the
airport concession for 20 years until 2046, a condition for the
sale of the stake in the country's largest airport.  urn:newsml:reuters.com:*:nL8N1IX5FO
    Discussions should conclude this month allowing the launch
of the stake sale, he said.
    Hellenic Petroleum announced on Wednesday that its major
shareholders, Greece and Paneuropean Oil and Industrial Holdings
agreed to divest a combined stake of at least 50.1 percent in
the refiner via an international tender. urn:newsml:reuters.com:*:nL5N1RH1FS
    
    "A NIGHTMARE"
    The leftist-led government was elected in 2015 on a platform
of strongly resisting privatisations but was forced to implement
an ambitious asset sales programme to sign up to its third
international bailout.
    Another big ticket is the 99-year lease of a vast seaside
property at the disused former Hellenikon airport to a
consortium of Arab and Chinese investors led by property
developer Lamda  LMDr.AT .  urn:newsml:reuters.com:*:nL5N1KH3CK  urn:newsml:reuters.com:*:nA8N1KH008
    Action by a plethora of players was needed for the
conclusion of the lease, Xenofos said. Greece has agreed with
its lenders to wrap up the process by June but Xenofos said that
"the most realistic scenario is around the end of the year."
    "All this effort must be intensified on the investors' side,
the involved parties and ministries and us ... so that we can
manage and complete all these issues which are an operational
nightmare," he said.
    A 17 percent stake in power utility Public Power Corp. (PPC)
 DEHr.AT  and minority stakes in Athens and Thessaloniki water
utilities EYDAP  EYDr.AT  and ΕΥΑΤΗ  TWSr.ΑΤ  will be tendered
in the second half of the year, he said.
($1 = 0.8153 euros)

 (Editing by Matthew Mpoke Bigg)
 ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436;
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))