ECONOMY

PPC finances worse than initially thought, says chairman

ppc-finances-worse-than-initially-thought-says-chairman

The financial state of Greece’s power utility PPC is worse then initially thought, the company’s new president and CEO George Stassis said on Thursday during a general shareholders meeting.

Speaking to journalists on the sidelines of the meeting, Stassis said it is believed the company's liquidity needs will exceed 800 million euros by the end of the year, instead of the 750 million euros that have been reported in the media. These needs have to be met by 24 September, when auditor Ernst & Young will complete its report on PPC's finances.

“The situation is dramatic. We didn’t expect it, it is much worse than what we knew,” he was quoted as telling journalists on the sideline of the meeting.

“We must overcome this problem so that we do not have a comment on the balance sheet [by Ernst & Young] on September 24, and then [we can] discuss measures for the growth of PPC,” he added.

State-controlled PPC is saddled with more than 2.4 billion euros of arrears from unpaid bills. In June, it reported a net loss of 205 million euros for the first three months of the year versus a loss of 12.6 million euros for the same period last year.

Energy Minister Costis Hatzidakis said the government is working on a plan to shore up its finances.