© Reuters. Greek Finance Minister Kostis Hatzidakis speaks throughout an interview with Reuters on the ministry in Athens, Greece, March 19, 2024. REUTERS/Stelios Misinas
2/3
By Lefteris Papadimas and Edward McAllister
ATHENS (Reuters) – Greece will this yr full the sale of its excellent stakes in 5 banks bailed out throughout final decade’s debt disaster and lift document revenues from state asset gross sales, its finance minister informed Reuters.
The information is an extra signal of Greece’s financial rebound following the 2010-18 disaster by which the financial system shrank by 1 / 4, unemployment soared, road protests raged and the nation almost fell out of the eurozone.
After years of relative stability, buyers have come again. The state just lately offered its stake in three main banks, elevating greater than 2 billion euros ($2.17 billion). The newest sale, of a 27% stake in Piraeus Financial institution, was oversubscribed eight instances.
“We had very vital curiosity expressed by many buyers and that is why we’re aiming at ending this course of by the top of this yr,” Finance Minister Kostis Hatzidakis stated in an interview.
Below an settlement with collectors, Greece has till the top of 2025 to finish the gross sales however determined to maneuver quicker. Its remaining 18.4% participation in Nationwide Financial institution, the nation’s largest lender, and 72% within the smaller Attica Financial institution, might be offered this yr, he stated.
“We discovered that there was no cause to delay, to pull our ft.”
RECORD SALES
Greece final yr regained funding grade standing after 13 years within the “junk” class attributable to its overwhelming debt load, and began the method of divesting from the bailed out banks.
It stays the eurozone’s most indebted nation, however Prime Minister Kyriakos Mitsotakis’ centre-right authorities, which received a second time period final yr, has overseen a interval of restoration.
The federal government expects to lift 7.1 billion euros from 10 privatisations which have been concluded or might be happening within the final 8 months, a document sum that Hatzidakis says will cowl its 2024 funds goal of 5.7 billion euros.
The federal government final month offered 30% of Athens Worldwide Airport in an preliminary public providing for 790 million euros. This yr it expects to lift about 4.6 billion euros from concession offers for 2 toll roads and plans to promote stakes in ports and marinas on the island of Crete and in central Greece.
“We’re decided to proceed kind of the identical approach, urgent forward with all mandatory structural reforms simply to transmit the message that this nation has grew to become a enterprise pleasant nation,” Hatzidakis stated.
Greece’s financial system expanded by 2% final yr, barely decrease than the Finance Ministry’s projection however nonetheless approach above the eurozone’s common of 0.4%.
It expects development of two.9% this yr, buoyed by tourism, elevated investments and home demand.
As buyers flock in, Greece will elevate the funding threshold for golden visas to foreigners who spend money on actual property in main cities and well-liked islands to 800,000 euros from 500,000 euros, Hatzidakis stated.
“An modification (on the problem) might be tabled to the parliament most likely this week,” he stated.
($1 = 0.9224 euros)