Privatization progressing, minister says

Shipyard deal due on May 13

Prime Minister Costas Simitis met yesterday with his minister of economy and finance, Nikos Christodoulakis, for a wide-ranging discussion on the government's privatization program. This is part of the prime minister's efforts to meet with senior aides and to plan action so as to overcome the general feeling that the government is adrift - something for which it has been criticized not only by the opposition but also by members of the ruling party.

Christodoulakis presented Simitis with specific proposals for large corporations belonging to the state sector. Sources said that they discussed the possibility of looking for a strategic investor for the Public Power Corporation (PPC) or the flotation of more shares in the giant company, beyond the 15 percent already on the stock exchange. The minister also briefed the prime minister on developments in the privatization tender for Hellenic Petroleum and the Greek Postal Service (ELTA). Christodoulakis said that the privatization of Hellenic Shipyards at Skaramangas was going ahead, following the purchase by a US company of the German consortium that had agreed to buy the yard. (The group includes Howaldtswerke-Deutsche Werft AG and trading house Ferrostaal AG.)

«Today I met with Development Minister Akis Tsochadzopoulos and the Germans who are interested in the Skaramangas shipyards and we set May 13 as the date for completing all the necessary procedures,» Christodoulakis said after his meeting with Simitis.

«Also, this afternoon there was a meeting with the three Greek banks which have undertaken to explore the international market to look for finance and investors for the establishment of a new Olympic Airways,» Christodoulakis said. After failing to sell a majority stake in the debt-laden national carrier, the government wants to split the company in two and find investors to keep the healthy part flying.

«Also, we discussed other reform issues which are essential to make the Greek economy more competitive, and create conditions for more employment,» Christodoulakis said.