ECONOMY

EAS survival plan provides for split in two

The road map for the streamlining of Hellenic Defense Systems (EAS), as agreed between the government and its creditors, will include 12 points, while creditor representatives will be monitoring the implementation of the plan at every step. Athens is supposed to turn EAS into a sustainable company within 2014 and save 500 jobs, or face having to shut the company down in 2015.

Among the steps required, the government will have to implement the separation of EAS into two, a civil and a military part, within the first three or four months following the approval of the restructuring plan. Right after that, Greece will have to liquidate the civil section, otherwise 115 employees will have to be sacked by the end of August.

Up to nine months after the approval of the plan, the military part will start being subject to strict periodic checks (every four months) so that Greece’s creditors are kept fully up to date. By the end of June, 318 staff must be laid off so that the military EAS has just 500 employees left.

By end-September the military EAS must show the creditors deals adding up to at least 13.5 million euros for the period from April to December 2014, plus another 20 million for 2015. At end-December it should have also secured orders for 20 million euros for 2016, too.