Privatization plans pored over
The government is expected to appoint advisers in September that will look into upcoming privatizations, so that the state can sell off assets, including state-owned defense companies, according to sources. It is unlikely that any sale will be completed this year. However, the government is expected to target 1 billion euros in privatization revenues for 2011. With changes likely to take place across an array of sectors, developments could be seen in banking, airports, ports, the Athens and Thessaloniki water companies, the energy sector and the government’s large real estate portfolio. According to sources, advisers are currently looking at ways to restructure the banking sector. In the next few days, their appointments will be formally announced. Three advising agencies will be chosen from HSBC, Lazard, Deutsche Bank, Credit Suisse and Morgan Stanley, along with two legal consultants. Changes on the banking landscape are expected to take place after September, while industry sources say that Greece’s larger lenders have already appointed advisers in a bid to determine their next moves. Initiatives from foreign banks in the consolidation process may arise but none have made any decisive steps on the local front yet. Government sources insist that the changes that will take place in the banking sector will serve the interests of the state and will not take place just for the sake of change. The restructuring of Hellenic Railways Organization (OSE) is also at the top of the government’s agenda. Additionally, the government wants to put the brakes on the massive deficits created by Athens Urban Transport Organization (OASA) and is planning to reorganize the group. This will include developing OASA’s property portfolio and possibly even linking the group up with a private investor, which could help implement ticket checks and boost revenues. The Finance Ministry has stressed that it is not considering privatizing the public transport company. Finance Ministry sources also indicated that the deregulation of the energy market will be among its top priorities, without this involving the reduction of its stake in power company PPC to below 51 percent.
