Asset sales hampered by debt squabble, fund says

Greece?s effort to raise at least 50 billion euros by selling or renting state assets is stalling as investors await the outcome of talks over a debt exchange plan, according to the executive responsible for generating income from Greek real estate.

?Investors tell us they have two problems with Greece,? said Andreas Taprantzis, executive director for real estate at the Hellenic Republic Asset Development Fund (TAIPED). ?First they?re worried about Greece and if it?s bankrupt or will go back to the drachma. Then they are worried about Europe itself. Investors can deal with defaults and crisis, but they can?t deal with uncertainty,? Taprantzis said. ?In six months, investors will know either way if there is a PSI agreement and if we?re dead or alive.?

Investors from Argentina and Brazil have shown interest in Greek state assets, he said.

So far, Greece has only raised 1.8 billion euros from the assets, according to a spokeswoman for the fund. The 50 billion- euro target, set for 2017, may not be met until 2020, Taprantzis said. [Bloomberg]