Greece outlines plans for asset sale

Greece has outlined plans to sell stakes in state-owned railway, water and real estate companies as part of a drive to raise …

Greece has outlined plans to sell stakes in state-owned railway, water and real estate companies as part of a drive to raise billions of euro to help restore its ailing public finances.

However, it will maintain its 34 per cent stake in betting monopoly OPAP, its 20 per cent stake in the Balkans' largest telecoms company OTE, and its 51 per cent stake in profitable power utilities PPC.

The EU/IMF bailout for the heavily indebted country projects revenue of €1 billion per year from privatisations for the 2011-13 period.

"Our estimates are definitely higher than this," finance minister George Papaconstantinou told reporters after a cabinet meeting.

"Our objective is to have a state which guarantees public services but at the same time taps the dynamism of Greece's economy," he added.

As part of the plan, the cash-strapped government will sell 49 per cent of loss-making railway company OSE, 39 per cent of Hellenic Post, 23 per cent of Thessaloniki water EYATH and 10 percent in Athens water EYDAP.

Greece also seeks to tap the betting market further, by extending OPAP's monopoly, which was due to end in 2020, granting licences for low-price gaming machines and selling its stake in casinos as well as regulating online betting.

The country's regulated betting market, which includes all OPAP games, along with the casino, horse racing betting and state lotteries, was worth about €8.7 million last year.

Illegal online betting is estimated between €3.5 and €5 billion, meaning huge losses in taxes for the state.

Reuters