Fresh target for sell-off revenues at 1.5 bln euros

By Vangelis Mandravelis

The target set for revenues from privatizations for this year has dropped further, as following the recent negotiations between the government and its creditors, it has reduced to 1.5 billion from 2.8 billion euros.

Originally the creditors had put pressure on Athens to set the target at 3.56 billion euros, which was seen making up for the 2013 shortfall. However, such a target was then deemed to be unattainable, given that in the three years that state sell-off fund TAIPED has been operating with the completion of the so-called easy privatizations, its revenues have not exceeded 2.6 billion euros in total.

Therefore, according to the European Commission’s fourth assessment of the country’s second economic adjustment program, the target for this year has been reduced to 1.5 billion euros and to 2.2 billion for 2015. Total revenues from privatizations are expected to come to 22.6 billion euros up to the end of 2020.

Even after the revision of the revenue targets, the European Commission has been speaking of additional revisions, depending on whether there is increased investor interest – for an upward revision – or more problems in the sell-off procedures – for a further decline.