By NIKI KITSANTONIS
JUNE 7, 2016
The New York Times
ATHENS — Greece on Tuesday signed a major privatization deal that will fulfill a key condition for the release of further bailout funding, but it will also displace thousands of refugees.
The deal, for a huge luxury real estate project on the site of the capital’s former international airport, was made in a memorandum of understanding between the state privatization agency, Taiped, and a consortium of Greek, Arab and Chinese companies. The land sits on a prime piece of coastline in Elliniko in southern Athens.
Elliniko is part of an ambitious privatization program by Greece’s leftist-led government and the country’s international creditors. Apart from Greece’s power board and other state companies, the portfolio of Greek assets for sale includes former government buildings, beaches and hotels.
The deal, which was frozen for a year and a half because of protests, was hailed as a breakthrough. Taiped’s chairman, Stergios Pitsiorlas, said the site, which covers four square kilometers, or 1.5 square miles, would accommodate “the largest urban regeneration project in Europe,” and create thousands of jobs for the debt-ridden nation. The site will also have the largest metropolitan park in Europe, he said. The office of Prime Minister Alexis Tsipras said the investment would help “restart the economy.”
Currently, however, the site is home to some 3,000 refugees who live in a makeshift settlement in the former airport building. The structure also houses several small companies, chiefly shipping and advertising firms. It had served as sports venues for the 2004 Olympics in Athens.
The government has promised to clear the site and relocate the refugees to a yet-to-be-determined location by November.
The deal was one of the few loose ends needed for creditors to sign off on 7.5 billion euros, about $8.5 billion, in bailout money after the approval of fresh austerity measures in recent weeks.
Addressing the European Parliament in Strasbourg, France, on Monday, Pierre Moscovici, the European commissioner for economic and financial affairs, said Greek authorities had done “95 percent of the changes necessary” to unlock the money.
First signed by the previous conservative-led coalition in November 2014, the privatization deal was held up after protests by local residents and authorities.
It was clinched after locals “came around to the idea,” Mr. Pitsiorlas said in an interview. The developers also agreed to demands by the Greek state for the site to include more green spaces, and to pay maintenance costs. The site will also have malls, golf courses and luxury homes.
The consortium of Lamda Development, the Abu Dhabi-based real estate firm Al Maabar and the Chinese conglomerate Fosun International has pledged 915 million euros, about $1 billion, to lease the plot for 99 years. Another 7 billion euros, about $7.9 billion, will go toward the creation of parks, luxury homes, golf courses and the extension of the public transportation and drainage network over 15 years. According to Mr. Pitsiorlas, the project would create more than 40,000 jobs.
The “new living standard” envisioned for Elliniko in a video on Lamda Development’s website is a far cry from the current state of the site, described as a “mass ghetto” by a local mayor, Yiannis Konstantatos.
Despite pressure from creditors to sell off state assets, a succession of governments have raised just over 2.5 billion euros from privatizations, including the leasing out of Greek regional airports and the Greek horse race betting organization, compared to an initial target of 50 billion euros.
"Ό,τι η ψυχή επιθυμεί, αυτό και πιστεύει." Δημοσθένης (Whatever the soul wishes, thats what it believes, Demosthenes)
Showing posts with label Privatizations. Show all posts
Showing posts with label Privatizations. Show all posts
Wednesday, June 8, 2016
Wednesday, December 23, 2015
Fed and Greece Could Defy the 2016 Bears
18 DEC 22, 2015 2:00 AM EST
By Mark Gilbert
Bloomberg
One of the
pitfalls of market-watching, whether for professional strategists or
journalistic scribblers, is a tendency to accentuate the negative. (I'm
ignoring sell-side equity analysts, whose preordained bullishness is largely
indifferent to the economic backdrop.) Gloom, doom and misfortune are more
interesting than cheerful optimism. And I'm as guilty as the next financial
soothsayer.
But it's
often a good idea to try to take an opposing view, no matter how compelling the
evidence for pessimism is (here's an excellent roundup of worries from Dave
Collum, who combines a passion for markets with his day job as professor of
organic chemistry at Cornell
University ). So here are
my two outside bets on what could go right on the biggest financial issues that
we're carrying into 2016:
Labels:
Bank Recapitalization,
Grexit,
Privatizations,
SYRIZA,
Third Memorandum
Tuesday, December 15, 2015
14 Airports in Greece to Be Privatized in $1.3 Billion Deal
By NIKI KITSANTONIS
DEC. 14, 2015
The New
York Times
ATHENS —
Greece’s leftist-led government on Monday signed its first major privatization
deal, granting a German company the right to lease and manage more than a dozen
regional airports.
The
contract, worth 1.2 billion euros, or $1.3 billion, is part of an effort to
privatize state assets and adopt economic changes demanded by international
creditors under Greece ’s
€86 billion bailout program. Some other measures are under debate in the Greek
Parliament and are scheduled for a vote Tuesday night.
Monday, December 14, 2015
Greece signs major privatisation deal with Germany's Fraport
Mon Dec 14,
2015 11:15am GMT Related: BUSINESS
ATHENS/BERLIN
Reuters
Privatisations
have been a key condition of Greece 's
international bailouts since 2010. But Athens
has raised only about 3.5 billion euros from state asset sales so far versus an
original target of 50 billion euros due to bureaucratic delays and lack of
political will.
Tuesday, February 25, 2014
Piraeus Port Becomes Hub in Greek Logistics-Industry Push
By Jonathan
Stearns Feb 25, 2014 2:01 AM GMT+0200
Bloomberg
The Greek port of Piraeus
could become one of Europe ’s top five
container-shipping hubs as the government spurs logistics activities in a bid
to kick-start economic growth, said Development Minister Kostis Hatzidakis.
Sunday, January 19, 2014
Can Privatization Save the Treasures of Ancient Greece?
Greece
TIME
By
Charlotte McDonald-Gibson/Ancient Nemea Jan.
18, 2014
In the wake
of government austerity, some closest to Greece 's treasures are advocating
turning them over to private companies
Many
objects dug from the earth or drawn from the legends of Nemea could be used to
promote the ancient Greek site: the mythological Nemean Lion slain by Hercules
in the first of his seven feats; weights lifted by competitors during its
ancient athletics; the bronze statue of the baby Opheltes, whose death is said
to have inspired the games which rivaled those at Olympia further west.
Saturday, September 28, 2013
Greece nominates new privatization agency chief, third in seven months
(Reuters) -
Greece
has nominated a new chairman to take over at its privatization agency after the
dismissal of its previous head last month, the finance ministry said on
Saturday.
Constantine
Maniatopoulos was named to head privatization agency HRADF, where asset sale
delays and shortfalls in targeted revenues have been a source of headaches for Greece 's
international lenders overseeing the country's 240 billion euro bailout
program.
Monday, August 12, 2013
Greece Needs a 21st Century Marshall Plan
By Dimitri
B. Papadimitriou Aug 12, 2013 1:00 AM GMT+0300
At their
White House meeting last week, U.S. President Barack Obama assured Greek Prime
Minister Antonis Samaras of his support as Greece prepares for talks with
creditors on additional debt relief amid record-high unemployment.
Friday, August 2, 2013
The IMF's blunt assessment
Aug 1st
2013, 14:09 by K.H. | ATHENS
Charlemagne
European
politics
The
Economist
WITH Greece
enjoying the best year for tourism since its six-year recession began, it has
become easier to believe in official forecasts of a mild recovery next year.
But the green shoots of optimism may soon fade if European leaders are
unwilling to plug a widening gap in bailout funding for Athens over the next two years and help make
its debt burden sustainable by writing off a chunk of bail-out loans.
Tuesday, July 30, 2013
UPDATE 1-IMF approves $2.3 billion aid for Greece
Mon Jul 29,
2013 4:40pm EDT
(Reuters) -
The International Monetary Fund on Monday approved a further 1.7 billion euros
($2.3 billion) in funds for Greece 's
bailout program after completing the fourth review of the cash-strapped euro
zone state.
Labels:
Greek Crisis,
IMF,
Privatizations,
Structural Reforms
Tuesday, July 16, 2013
Greece privatisation: Myth or reality?
BBC
15 July
2013 Last updated at 23:17 GMT
By Nigel
Cassidy
Business
correspondent, BBC News, Athens
Visit any
one of the Greek state's Opap betting shops and it's pretty hard to fathom
quite what is going on.
Groups of
mainly men who can probably ill afford the price of a lottery ticket sit around
staring at electronic screens showing grids of random figures, all hoping
against hope that their numbers will come up.
It's a fine
metaphor for Greece 's
wider - and so far wildly unsuccessful - drive to raise billions of euros to
help offset the country's punishing debt repayments.
Monday, July 15, 2013
UPDATE 2-Greece picks Eurobank to buy Postbank ahead of mid-July deadline
Sat Jul 13, 2013 7:29pm EDT
By George Georgiopoulos
(Reuters) - Greece 's
bank rescue fund picked Eurobank to buy New Hellenic Postbank as part of
consolidation in the sector and to meet a condition for the next tranche of Greece 's
bailout, it said after a board meeting on Saturday.
Friday, May 24, 2013
Greece’s government: Up, but not out
May 25th
2013 | ATHENS
The
Economist
WHAT a
difference a year makes. Last May Greece seemed to be heading out of
the euro. Lagging reforms, political in-fighting and violent protests had worn
out creditors’ patience. An election failed to produce a clear winner.
Athenians stashed euros in safety-deposit boxes and under mattresses amid fears
of instability and a chaotic return to the drachma.
Labels:
Austerity measures,
Greek Crisis,
Politics,
Privatizations,
Troika
Wednesday, May 22, 2013
UPDATE 1-Gazprom pushes for concessions in sale of Greece's DEPA
Tue May 21,
2013 2:28pm EDT
* Binding
bids for DEPA due May 29
* Sintez,
SOCAR to bid for DEPA's gas grid unit DESFA (Adds meeting between Gazprom chief
and Greek Prime Minister)
By Harry Papachristou
ATHENS, May
21 (Reuters) - Gazprom is squeezing Athens for better terms to buy DEPA,
Greece's sole retail gas distributor, a Greek official said, as the Russian gas
export monopoly leverages its position as the only major player in the running.
Friday, May 17, 2013
Samaras Seeks China Investment to Revive Battered Greek Economy
By
Bloomberg News - May 17, 2013
Greek Prime
Minister Antonis Samaras promised to give the “red-carpet treatment” to foreign
investors as he visited China
to help revive an economy that contracted for the 19th straight quarter.
Monday, March 11, 2013
Greek privatisation chief quits after graft charges filed
(Reuters) -
Greece 's
privatisation chief and a senior finance ministry official resigned on Saturday
after they were charged with breach of duty over their former role as board
members of a state utility.
Saturday, February 23, 2013
UPDATE 2-Greece's betting monopoly sees plunge in profit
Fri Feb 22,
2013 9:41am EST
* OPAP sees
2013 net profit down by more than two thirds
* Estimate
lower than analyst forecasts
* Greece seeking
to sell 33 percent stake in OPAP
* Shares
down 4 pct (Updates with analyst quote, background, shares)
By Angeliki
Koutantou
Friday, February 22, 2013
Qatar Said to Discuss Purchase of Resort From Greek State
By Sharon
Smyth on February 21, 2013
Bloomberg
business week
Tuesday, October 16, 2012
Greece prepares second wave of privatizations
(Reuters) -
Greece
plans to launch tenders to sell or lease a string of state assets, including
its biggest refiner and two largest ports, as it battles to pay down debt and
meet the terms of an international bailout.
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