Tuesday, June 28, 2011
Debt-laden Greece finds no buyers in 'fire sale' of national assets
June 28, 2011
While Greece erupted in protest again, representatives of the country's government were at Claridge's hotel trying to drum up international investors' interest in a "fire sale" of its national assets.
Up for sale are 39 airports, 850 ports, railways, motorways, sewage works, a couple of energy companies, banks, defence groups, thousands of acres of land for development, casinos and Greece's national lottery. George Christodoulakis, Greece's special secretary for asset restructuring and privatisations, said the sell-off would raise €50bn (£44bn) to help pay back the country's €110bn bailout debt.
The private equity bosses gathered in the hotel's ballroom for the parade of Greece's national treasures showed little interest in buying anything.
Nikos Stathopoulous, managing partner of BC Partners, which has invested more than €3.5bn in Greece, said investors are put off by bureaucracy, strong unions, corruption and a lack of transparency. "Even in the good times Greece is not a country that attracts investment. Foreign investors don't want to invest in a country where there is no flexibility in hiring and firing people," he said. "You don't want to invest in a country in which you wake up and a new law has been passed which totally undermines and destroys the value of the investment you've just made."
Posted by Yulie Foka-Kavalieraki at 8:51 PM