The Greek government has created the Hellenic Privatization Management Fund where all privatizations in Greece will proceed throught this fund.
The Troika has asked that this fund be created so that it can manage all privatizations needed so that Greece can receive the funding it needs as one of the prerequisites.
Since the creation of this fund Greece has managed to privatize only two public sector companies: the Greek ΔΕΣΦΑ, which is the company that manages the natural gas pipelines to the Azerbaijan, and just recently the Hellenic company that manages the State lotteries, ΟΠΑΠ.
However the stalemate that is apparent has delayed to put money in the public treasury in order to decrease the Greek Debt, and the Fund just yesterday changed president for the second time.
The appointed president was forced to resign by the Greek foreign minister of Treasury, when the former president accepted a trip to a Greek Island in the lear jet of one of the businessman, who purchased the state lottery, and holds a majority of the share capital, by 30%. The government held 34%.
It is also true that the Troika from the beginning of the creation of the Fund management company, wanted to have full control, but the Greek government objected to demand. The state lottery was a very profitable company with considerable contribution of funding to several organizations, and of course money to the public treasury.
In the beginning of the summer, the Greek governemnt was about to sign the biggest privatization of the Hellenic Natural Gas company, ΔΕΠΑ, to the Russians, but at the last minute the deal went sour. Many blamed the fired president of the Privatization Fund(the second since the Fund's creation), but also due to the apparent veto that was believed to be exercised by the European Competion Committee. The Russians sensed that the climate was against them, the price was just over 1 billion euros, and in addition, the European Union, did not want to be dependent on Russian Gas.
The Fund has many more public entities up for sale and one which in my view will be next is the independent subsiadry company of the Greek Railroad, TRAINOSE. This company actually span off in 2006 and operates independently from the Hellenic Railroad, and manages passenger and package transportation services. The Russians have shown a very strong interest in the company, with the number one man coming personally to Greece. He even gave an interview in a Greek televison channel. By buying 49% of the company, the Russians have the technical know how to rebuilt the railroad infrastructure.
The road to privatizations will not an easy one with turbulance on the horizon. The Greek government will set up a list of companies such as the Public Water company, the Hellenic Railroad, the ports, peripheral airports, even the Public power company. The government want to either decrease its shareholding stake in these public entities, or free itself completely. Below is a list of public entities and its shareholding. Of course the banking sector went well with the Greek government having sold state banks to private Greek banks. Some had to be split to good - bad banks.
First column from the table left(printed in Hemerisia daily financial newspaper) shows the Public power company with the state holding 51% to 34%. The state lottery was completed by selling all 34% of the shares. The public natural gas company where the state wants to decrease its shareholding from 65% to 34%. The public water company of Athens, having 61% of the shares, and the public water compnay of Thesaloniki, having 74% of share capital.
