Greek Government To Sell Assets



The cash-lacking Greek Government is proposing selling stakes in a string of state-owned companies. These will include a Post Office, several casinos two water companies and a rail operator.

The rail company is losing 1 billion ($1.47 billion) a year, said Finance Minister George Papaconstantinou. Routes that are creating the foremost financial losses will be scrubbed.

After European countries and the International Monetary Fund scrambled together a 110 billion ($161.99 billion) rescue package, Greece still narrowly missed defaulting on its huge debt burden last month.

Combined with consumer tax hikes, the centre-left Government agreed on extensive pension and salary cuts. This was meant to cut the budget deficit from 13.9 per cent of yearly output to 2.6 per cent in 2014.

Greece has asserted it wants to raise 1 billion annually between 2011-13, through privatization projects. This was part of the commitment in obtaining the rescue loans.

"Proper management of state assets," said Papaconstantinou, "Including extensive but largely uncatalogued real estate holdings - would save 'tens of billions' in reductions of the public debt and budget deficit." State assets that have never before been calculated.

Under the planned sell-off published by the Greek government, it will sell a 49% stake in rail operator Trenose, as well as yield management control. It will also restructure the broader Hellenic Railways group, which has accumulated debts of some 10 billion ($14.73 billion) and gathers daily losses of close to 3 million ($4.42 million).

Greek law prohibits the expulsion of civil servant, said Transport Minister Dimitris Reppas. The Government would reevaluate Hellenic Railways workers' skills, move others to different public sector jobs and hold on to those who were needed.

Another possibility for Greece would be to sell off some of its 'Greek islands', just as Napoleon Bonaparte sold the Louisiana Territory, of more than 2m sq mi, in 1803, to the United States for $20m to finance his war against England. He did however, oft to hold onto France.

Although the Constitution did not specifically empower the federal government to acquire new territory by treaty, President Jefferson decided that the practical benefits to the nation far outweighed any possible violation of the Constitution.

The Spanish, who had never physically quit possession of Louisiana to the French, did so in a ceremony at New Orleans on Nov. 30, 1803. On Dec. 20, 1803, in a second ceremony, the French passed Louisiana over to the United States.

About:Greek Government To Sell Assets
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