Amendment for splitting of EAS is tabled

The government tabled a law amendment in Parliament on Wednesday that implements the restructuring plan for Hellenic Defense Systems (EAS), one of the prior actions Athens must fulfill in order to get its next bailout installment.

The amendment provides the terms for the abolition, merging or splitting of companies, and for the extraction of assets from them to be given to other companies. This is the framework required for EAS, which will be split into two new companies.

One of those companies will have the exclusive purpose of producing and selling arms, ammunition and defense materials, while EAS assets will be passed on to the two companies without the need for an administrative act or property transfer tax payment. Both companies will be able to enter the resolution procedure provided for state corporations regardless of whether the conditions needed for that purpose in other cases are fulfilled.

The same amendment dictates the granting of 10 million euros to EAS from the state budget for the period before the completion of its split, while for the period after it has split into two, the funding will be increased by 25 million euros.