ECONOMY

Defense industries set for change

The government is determined to move ahead with the restructuring and reorganization of Greece’s ailing defense industries, Alternate Finance Minister Christos Staikouras said on Thursday in Parliament while detailing the sector’s finances.

According to Staikouras, the current state of Greece’s defense industries constitutes “a reality that dictates, beyond and above any memorandums and financial policy programs, the immediate, adequate and viable management of the problems, instead of sweeping them under the carpet or leaving them for a later date.”

“The government’s intention is clear: Indeed, we cannot tackle the problems in a fragmentary manner. The National Defense Ministry is leading the procedure for the restructuring and tidying up of our defense industries so that the public interest is safeguarded on the one hand and a important sector for national defense and the Greek economy can emerge from its slump on the other,” said Staikouras.

The data he presented showed that Hellenic Defense Systems (EAS) has shown a 38 percent drop in turnover in recent years, with total debts at 1.1 billion euros and constant loss-making activity.

The Hellenic Vehicle Industry (ELVO) posted pretax losses of 23 million euros in 2011 and a drop in turnover amounting to 91 percent in recent years. Its total debts stand at 11 million euros.

Finally, the Hellenic Defense Industry (EAV) showed pretax losses of 27 million euros in 2011, an 11 percent drop in turnover in recent years, and short- and long-term obligations totaling 1.2 billion euros.