Showing posts with label Privatizations. Show all posts
Showing posts with label Privatizations. Show all posts

Wednesday, June 8, 2016

Greece Secures Bailout Money With Airport Real Estate Deal

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.

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:

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

Greece's leftist government on Monday signed its first big privatisation deal with German airport operator Fraport (FRAG.DE), awarding it a 1.2 billion euro (£868 million)contract to lease and manage 14 regional airports.

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.

Piraeus, now the 11th-largest container-shipping port in the European Union, is expanding as China-based Cosco Pacific Ltd. (1199) operates one of two piers, builds a third and prepares to offer cargo-train shipping to multinational companies including Hewlett-Packard Co. (HPQ) and Huawei Technologies Co.

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

ATHENS | Sat Sep 28, 2013 9:36am EDT
(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.

Greece last week adopted the last piece of legislation its international lenders required to release the next batch of rescue loans, after two months of wrangling over unpopular measures to overhaul the economy. The total funds from the IMF, the European Commission and the European Central Bank comprise 5.8 billion euros.

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


Greece has performed better than expected, but still has much to do
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.

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


ATHENS, March 9 | Sat Mar 9, 2013 1:00pm EST
(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
Greece has held talks with Qatar over the sale of the Astir Palace in a deal that would mark the first outright sale of a property in the country through the government’s 50 billion-euro ($67 billion) asset disposal program, according to three people with knowledge of the matter.

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.