OTE chasing down state debtors
OTE telecom has begun efforts to collect some 300 million euros of old debts owed to the company by ministries and other state services, according to company sources. Its efforts to tidy up its finances comes shortly after Germany’s Deutsche Telekom agreed to take a 25 percent stake in the phone company as part of plans to tap growth in the Balkan markets. The former state monopoly is sending letters to government-related debtors warning them that they will no longer be given any extra time to pay off outstanding debts. Sources said the largest chunk – some 100 million euros – owed to OTE is from the Education Ministry and state schools. Some telephone bills that have been run up by schools – partialy funded by the European Union’s Third Community Support Framework (CSFIII) – have not been paid for a number of years, said one source. A series of reforms, including staff cuts, has helped OTE return to profitability as the company moves to offset a loss of revenue from fixed line operations. The government and Deutsche Telekom will share management of the Greek phone company, with each side controlling five seats on OTE telecom’s 10-member board once the deal is concluded by the end of the year.
