Privatization Of Greek Assets Runs Behind Schedule The sweeping fire sale is a requirement for multibillion-euro bailouts. And the Chinese, Russian and Arab companies lining up to take advantage of the steep discounts are making Greeks and other Europeans nervous.
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Privatization Of Greek Assets Runs Behind Schedule

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Privatization Of Greek Assets Runs Behind Schedule

Privatization Of Greek Assets Runs Behind Schedule

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Greece is in the process of selling off state-owned assets, ranging from property to the national lottery. The country agreed to do this in exchange for billions of dollars in bailout funds. So the rest of Europe forced Greece to do this, but the rest of Europe is not so sure about what happens now. European officials worry about all the Chinese, Russian and Arab companies that are lining up to take advantage of the Greek fire sale.

NPR's Sylvia Poggioli reports.

SYLVIA POGGIOLI, BYLINE: The Hellenic Republic Asset Development Fund is the agency handling privatization.


POGGIOLI: Its website is filled with cheery slogans promoting Greece as an El Dorado for investors, rich in natural resources - bauxite, marble and gold - as well as gourmet food.

But in its latest Greece report, the IMF was disappointed, warning Athens it might have to replace the asset development fund's managers with foreign experts. In 2012, the agency completed only two sales worth $260 million compared with a target of 4.16 billion.

Numerous independent analysts share the IMF's gloomy view.

PHILIP AMMERMAN: The projects are simply not well prepared,.

POGGIOLI: Philip Ammerman is an investment consultant.

AMMERMAN: What we see coming out of the various government ministries or the office prime minister, very often directly, is simply not up to par on any international standard, so the project concepts don't exist, the numbers don't stand up, there are no numbers supporting the project concept, and there's just too much ideology.

POGGIOLI: Greece has a long tradition of political party interference in state-owned companies, and there is still an entrenched reluctance to give up control over the state's assets. But Prime Minister Antonis Samaras is urging the privatization agency to hurry up.

Adonis Georgiades, an MP in Samaras's Conservative Party, believes the state should not own anything.

ADONIS GEORGIADES: I would sell everything. This is the private economy. This is the 21st century. Communism is dead.

POGGIOLI: The list of what's up for sale is long: banks, utilities, the national lottery, ports, airports, motorways, and other infrastructure. But the vast bulk is real estate, including prime beachfront land.

There are many interested buyers, but obstacles to closing deals have been daunting. There are hardly any property registries, so land ownership is difficult to determine. In many places public land is filled with illegal buildings, which will require a long legal process to remove.

Most of all, Greek citizens - already paying a high price for draconian austerity measures - don't like privatization.

This is one of the many branches of OPAP, the Greek national lottery, perhaps the most profitable state asset, bringing in nearly a billion dollars a year.

Dimetra Columbani has managed this branch for 30 years.

DIMETRA COLUMBANI: (Through translator) I'm very worried. I have no idea what's going to happen, who's going to buy the lottery company, how it will be operated. I can't risk losing everything I've invested here if a new company comes and takes over.

POGGIOLI: Polls show that a majority of Greeks fear the country's assets are being sold off for too little, and many see privatization as an international takeover. Geopolitical issues are also causing delays.

European governments, as well as Washington, are reportedly concerned over Russia's possible expansion into Europe. Russia's Gazprom has made a very high bid for the Greek gas utility company. Media reports suggest the privatization agency has delayed choosing a buyer under international pressure.

And there are other strategic concerns.

GEORGE STATHAKIS, ECONOMIST: The conflict with China has to do with the Greek ports.

POGGIOLI: George Stathakis is an economist and MP for the opposition leftist party, Syriza. He says China wants to expand its current control of a part of the Port of Piraeus and also buy the south-north railway link, raising fears that China will flood the European markets with its inexpensive products.

ECONOMIST: German and Dutch interests are opposing the idea of using Greece as the primary source of Chinese trade with Europe.

POGGIOLI: The original IMF privatization target had been 50 billion euro by 2015, but it has already been sharply reduced to 10 billion. Stathakis believes it will be cut back even more.

Sylvia Poggioli, NPR News.

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