After Hitting 1,100bps In Spread, Greece Finally Relents And Puts (Parts of) Itself Up For Sale

Tyler Durden's picture

Today, Greek CDS hit an all time wide in spread. For the first time, this unpleasant phenomenon seems to have registered in the minds of Greek oligarchs, as finally, after months of dithering, the country is taking serious steps to moderate its bankruptcy. The steps in question are asset sales, and the assets in question are islands including portions of Mykonos, and all of Nafsika. So if you work in Goldman and need a nice place (with a non extradition treaty in place very soon) to stash the several hundred gold bar collection amassed over the past two years of record bonuses, here is your chance for a nice, cheap offshore vault, ironically in the very country whose finances you overrepresetned for years.

Guardian reports:

Greece is making it easier for the rich and famous to fulfill their dreams by preparing to sell, or offering long-term leases on, some of its 6,000 sun-kissed islands in a desperate attempt to repay its mountainous debts.

The Guardian has learned that an area in Mykonos, one of Greece's top tourist destinations, is one of the sites for sale. The area is one-third owned by the government, which is looking for a buyer willing to inject capital and develop a luxury tourism complex, according to a source close to the negotiations.

Greece has embarked on the desperate measures after being pushed into a €110bn bailout by the European Union and the International Monetary Fund last month, following a decade of overspending and after jittery investors raised borrowing costs to unbearable levels.

The sale of an island – or convincing a member of the international executive jet-set to take on a long-term lease – would help to boost its coffers. The Private Islands website lists 1,235-acre Nafsika, in the Ionian sea, on the market for €15m. But others are up for grabs for less than €2m – less than a town house in Mayfair or Chelsea. Some of the country's numerous islands are tiny rocky islets which could barely fit a single sunbed.

Only 227 Greek islands are populated and the decision to press ahead with potential sales has also been driven by the inability of the state to find funds to develop basic utility infrastructure, or police most of its islands. The hope is that the sale or long-term lease of some islands will attract investment that will generate jobs and taxable income.

"I am sad – selling off your islands or areas that belong to the people of Greece should be used as the last resort," said Makis Perdikaris, director of Greek Island Properties. "But the first thing is to develop the economy and attract foreign domestic investment to create the necessary infrastructure. The point is to get money."

As strikes almost paralysed the country and hedge funds bet against the economy, German politicians called for Greece to start selling islands, historic buildings and artworks. It now appears that the Greek government has heeded their demands.

The City, where investors are increasingly shunning Greek investments, welcomed any island sales. "It's a shame if it has come to this but it does at least demonstrate that Greece is prepared to take all actions necessary to try and meet its obligations," said Gary Jenkins, a credit analyst at Evolution Securities.

At the end of the day, Germany once again gets its way. And since in 2-3 years America will be in the same sad state, we should already be sending out Goldman's crack asset disposition team (the same guys pitching BP's various holdings), to France, Spain and Russia: we hear the two countries may be interested in some nice (if slightly soiled) parts of the continental US. And, on an inflation-adjusted basis, the US may just come out on top of these particular trades.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Rusty_Shackleford's picture

I call dibs on the national parks.

Mr Lennon Hendrix's picture

The women?

go ahead and junk me, that one was for Leo ;)

nmewn's picture

I'll take my chances with the Greek half of Cyprus.

knukles's picture

Employing the old PanAM model.
Sell the Hotels and keep the Airline.
Worked just fine back then.  Repeat after me. 

carbonmutant's picture

It's probaby as overpriced as their hotel rooms...

Freebird's picture

Damn, that photo brings back some fond heterosexual memories. Another thing to thank TD for.

Mr Lennon Hendrix's picture

It must have been Paris Hilton who junked you.

arnoldsimage's picture


Careless Whisper's picture

oh bay bay, i think the men of mykonos aren't your idea of sparta.


Hephasteus's picture

Oracle of Delphi. The love of gold and nothing else will be your undoing.

Sparta. Iron currency bitches.

Sparta. Conquest bitches.

Sparta. Send the gold and silver money from those we conquer back home.

Sparta. Oh shit!!

AnAnonymous's picture

Actually, the Spartan policy on slaves, how they wreaked terror on them to initiate their warriors and stuff, ensured they were never big conquerers.

You know, a bit like Southerners in the US who were busy preventing men from freeing themselves and didnt participate to the war against the British crown.

But hey, people love their myths, so let them keep them.

Circumspice's picture

Are you stupid or something? Have you never seen a map of the campaigns in the Revolutionary War? The South did plenty to defend the US's independence, and certainly enough to push it to declare that independence (cf. the Halifax Resolves).

The British's initial strategy was to attack the North (they captured NYC easily, of course), but from 1778 onward the focus shifted to the South, because it was still largely rural and they figured they had more Tory support (which turned out to be true only for Georgia). The British defeated Georgia, the southernmost state at the time, but then got stuck in the Carolinas, where many of the last major battles were fought. Hell, after losing a quarter of his men in one battle in NC, Cornwallis had to retreat to Virginia for reinforcements, and there he was defeated. (Anything from Maryland and below should count if we're talking Civil War battlelines.)

Never mind that most Southerners weren't slaveowners.

Quantum Noise's picture

We were Sparta! From now on we're Spartburg!

Apostate's picture

Can we sell Louisiana back to France? Nothing against it the people down there, but it's kind of a troubled asset these days. 

DoChenRollingBearing's picture

Can we have the Brits come back and burn down Washington, DC?

They did it once before.

But, DC is also a troubled asset.

BobWatNorCal's picture


That actually sounds pretty good.

Could they burn it down with the politicians inside?

Nikki's picture

I'll pay in gold for tickets to see that show.

digalert's picture

Being a tax paying USA citizen, don't I already have a stake?

Apostate's picture

No, sorry, slaves have no stake. 

Shameful's picture

Sure you do.  We serfs will probably be packaged up with the land.

tmosley's picture

Governments should never be able to own property.

Rainman's picture

Governments should never have been allowed to be overrun by public sector unions either. And Congressional Ethnic Caucuses are discriminatory and against the law.

But you get my point I hope.

Kurtieboy's picture

I'll take one of the Mykonos islands!

Tartarus's picture

Can't wait tell they start breaking up the country and selling it off altogether at rock-bottom prices. I would like Thrace please!

Apostate's picture

Brief prediction:

Greece goes off the Euro.

Says "fuck you" to idiotic Euro-Fabians who demand an "efficient bureaucracy."

Sells off state assets.

Issues some lame third world currency.

Communists complain. Maybe burn something down.

Then they do pretty damn well. Shipping might suffer due to declines in global trade, but otherwise, they'll make out much better than the US.

Fenrisulfr's picture

I would bet on a debt default as they owe much of their debt to other European countries.  Load up the CDSs...

cougar_w's picture

I just thought of a great movie script, of a guy who buys an island off Greece and rides out 10 years of global upheaval then goes to the mainland one day when he senses things are quiet to find the place a blasted war zone with nobody left except wild dogs.

Um ... gold bitches. Or something. I dunno.

Apostate's picture

Reminds me of World War Z. 

resipsaloquacious's picture

Yes.  If I remember correctly, Cuba comes out on top after a Zombie apoc.

Arius's picture might be into something.  after all there just too many people.

Shameful's picture

To many people?  So when are you going to pull the trigger and do your part to save the Earth?  Save the planet, kill yourself.

DosZap's picture


I have posted this before, but your comment makes it neccessary for a repeat.

I am so sick of there are too many people.........Population control!!

The state of Texas,has enough land mass to build a 1200 sq ft house, w/a small yard for 6+ Billion people.

That would leave a hell of a lot of room for the animals,livestock, and food the left over land mass.

Spread them out to 50% of the USA, and the rest of the globe could be without any population..So, for all the Euthanists, Fku ......(that includes you Geo Bernard Shaw, and Ms.Sinclair).

And all you other self important genetic mutants..............bent on murdering innocents for the $.

And, using global enviromentalism for the reason/excuse  for Genocide.(it is what it is).

DoChenRollingBearing's picture

+ Texas DosZap

We have plenty of resources as long as we keep the .govs from getting their mitts on us.

The Hard Left sure does have a lot of weirdos with wildly totalitarian and genocidal views.

AnAnonymous's picture

Overpopulation is based on consumption.

People are still living in the past when gap between people were not as large as they are now.

They keep considering that pushing out people based on numbers would be a solution. It was a solution.

But this card is played now and cannot be played once again.

Fact is that at present times, if one billion of people kill the 5 others, it wont change big for the one billion (probably will degrade the situation actually) and if the 5 billion others killed the one billion, the five billion will get themselves a nice opportunity.

Issue: while the one billion can eliminate the 5 other billions, the 5 other billions can not. Hence a nice dead end.

CD's picture

Similar premise, from a historical writer: Robert Merle - Malevil

Dr. Sandi's picture

This really begs the question: "How soon before I can use some of my PM holdings to buy stuff I've always wanted that currently "belongs" to the U.S. government(s).

I realize I'd never be able to outbid Barrick Gold or the Chinese government for the national parks, but maybe a nice mountain top or two with choice communications sites?

Apostate's picture

Wait... wait a long time. Some are selling and leasing stuff quietly. There was even an article recently about how some public schools are being basically privatized.

I think most state assets will sell at over-valued rates... after those guys go bankrupt, and someone else buys them at a lower price, and they go bankrupt - then, you get in the game. 

cougar_w's picture

Sure, but every time it changes hands it degrades. The last one in buys a junk heap.

We'll be buying and trading ashes, ere the end.

Rainman's picture

Excellent plan. I want to buy a busy SoCal toll road on the cheap. Cali sold the rights off long ago with an upgrade premium. Not everyone can brag that they own a half priced toll road.

Apostate's picture

I would be careful on that.

For example, if you buy a public school, you could end up with an asbestos-infested prison-like structure that might be completely uneconomical in the future.

Why would I send my kid to be taught by an alcoholic child molester in a recently privatized school when I could hand my kid a phonetic literacy app or allow her to be tutored by an out-of-work Rhodes Scholar remotely for $20 an hour?

What if your toll road has no traffic because a community formerly made up of majority government workers becomes a ghost town? Or if the expense of water rights in the area makes the entire region into a wildland ruled by coyotes, huge rats, and travelling war-bands from Mexico?

I studied the privatization of Russia extensively both independently and at the graduate level, so I'm a bit extra-sensitive to these issues. Many ended up with totally worthless factories and equipment that they assumed would be extremely profitable. 

DosZap's picture


Why would you want your children taught by a Communist educated, indoctrinated teacher/Prof?.

Apostate's picture

Hey, depends on the topic. Even the commies can be sensible on some isolated subjects. 

The point is, "home-schooling" is easier and cheaper than ever before. There's no reason to send your kid to a re-education gulag or to a $30,000/year private school.

If you're outside of the US, you can even have your kid working a serious job from an early age.

Hell, you can even have your kid freelance as a programmer or whatever now, with no issues. 

GoinFawr's picture

Effing nice Apostate. Hat's off.


Mr Lennon Hendrix's picture

I say the US Gov leases an island and pays for the gulf coast residents to move there temporarily.  What else should we do with our FIAT?  Pave roads endlessly?  Building expressways until the end of cheap oil is about to look very foolish.

cougar_w's picture

Another great movie script. Sort of "Lost" meets "Swiss Family Robinson".

You know something is wrong when people say things that would not only make sense but would make a great movie.

Reality. Bitches.

knukles's picture


Rebuild America by Employing Americans.
No moah shiftin' them jobs ovah-sees
We already got Detriot can be repop-a-lated n' re-bilt with all them Southern' folk.