Greek lenders seek property asset sales

This file photo shows real estate sketched across the landscape in Greece.

Greeceâ„¢s international lenders have pressured Athens to transfer the management of state-owned properties to a eurozone-led company abroad, officials say.

The trio of lenders – the International Monetary Fund (IMF), the European Central Bank (ECB) and the European Commission – will present the plan to Greece in September, pressing Athens to allow a foreign agency to sell its assets.

The arrangement consists of creating a Greek-owned holding company outside Greece and run by foreign experts, in an effort to stimulate privatization efforts and reform the public sector.

Å“The benefit of privatization is to generate resources for Greece to help overall development and pay back its own debt faster,” said spokesperson for the euro zone’s bailout fund, the European Stability Mechanism (ESM).

Greece has made available 81,000 real estate properties for sale, with an approximate value of 28 billion euros.

The plan awaits further examination by eurozone finance ministers, the spokesperson added.

Critics said the move will not solve Greeceâ„¢s ongoing economic problems, amid talk of another bailout.

On August 24, Germany’s commissioner to the European Union, Guenther Oettinger said a fresh bailout package by the so-called troika for the recession-hit Greece will be a little over 10 billion euros (USD 13.36 billion).

Earlier this month, Greek officials said a new aid package is necessary in order to plug any funding shortfall over 2014-2016.

Greece has been dependent on bailout funds from international rescue loans approved by the troika of international creditors since May 2010.

The Greek economy is in its sixth year of recession due to fiscal mismanagement, resulting in tax rises and spending cuts.

Meanwhile, the countryâ„¢s unemployment rate stands at more than double the eurozone’s average reading of 12.1 percent, reflecting a deepening recession after years of austerity being imposed under the EU bailout plan.

Europe plunged into financial crisis in early 2008. The worsening debt crisis has forced the EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.


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Republished from: Press TV