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Greek Asset Sales Fall Short, As We Virtually Guaranteed They Would In Spring 2010
Here's a surprise that many may not have expected, Bloomberg reports Greece May Not Complete All Asset Sales
Greece’s deputy finance minister, Pantelis Economou, said the country won’t manage to sell everything on its list of planned state-asset sales and real- estate developments. “We will sell a lot less than planned,” he told lawmakers yesterday, according to a transcript posted on the Parliament’s website.
Greece aims to raise 50 billion euros ($69 billion) through asset sales and property developments by the end of 2015, part of a package of fiscal measures demanded by the European Union and the International Monetary Fund in exchange for financial support. Parliament approved the measures in two votes at the end of last month...
“Selling state holdings to reduce Greece’s debt is a necessary condition to get what we are entitled to,” Economou told lawmakers. He added that eliminating tax evasion can “buy time” for Greece and help to meet revenue targets through 2015, according to the transcript.
The Finance Ministry announced the board of the agency that’s been set up to supervise the asset sales. The program includes plans to sell stakes in Public Power Corp SA (PPC) and gambling company Opap SA (OPAP), as well as Greece’s two biggest port operators and banks.
Now, here's the kicker...
Economou said there isn’t enough investor interest in the assets for sale as “credit default swaps and spreads are the kinds of thing they have their eyes on.” Concrete assets are “riskier,” he said.
Methinks Mr. Economou (what irony is there in an name???) may be missing the forest due to tree bark irritants in his corneas.There will be plenty of investor interest in hard asset sales if said hard asset sales were priced realisitically and with true price discovery enabled. The problem is that that's just not the case. The proforma asset sales numbers proffered by the Greek government were ridiculously optimistic, and that was before said asset's market prices tumbled off of a cliff the 2nd and 3rd times. As it stands now, CDS and are easier to price than Greek assets with cooked books. How cooked? Refrerence
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Once You Catch a Few EU Countries “Stretching the Truth”, Why Should You Trust the Rest?
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Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse!
Now, let's reference the biting piece that directly addressed and forecasted todays Greek asset sale problems over a year ago, Greece's Circular Reasoning Challenge Moves From BoomBustBlog to the Mainstream
We initially broached this topic in the spring of 2010 after illuminating the abject fallacy of Greece forecasting asset sale prices that were greater than the prices of the assets current market price - despite the fact that Greece is widely known to be a distressed seller. Last month, I revisited the topic in Greece Reports: "Circular Reasoning Works Because Circular Reasoning Works" - Or - Here Comes That Default!!!
Greek Reporter (hat tip to ZeroHedge) reports: Government Finalizes Privatization List
The Greek government will proceed with the acceleration of the privatization of state property and companies, setting a target of at least €15bn by 2015. [Reference the highlights of the BoomBustBlog subscription document below.]
The decisions are expected during the week, probably on Wednesday, at the meeting of the Biministerial Committee on Privatization. The government will finalize a list of companies and property for utilization, which will be presented by Prime Minister George Papandreou to the European leaders in Brussels.
Special Secretary for Privatization G. Christodoulakis and bank representatives have been preparing the content of the list at a meeting yesterday.
National Bank and London-based CC&C Advisors LTD have been assigned the task of financial servicing related to planning, monitoring, coordination and implementation of the restructuring and privatization program.
The Committee will have to approve the award of the of the utilization program to the qualified Greek banks, but also to the consultants who will carry each project.
Sources note that consultants for Athens International Airport have already appointed, while the proposed list includes:
• The concession of ports and airports with long-term contracts
• The extension of concession period for Athens International Airport
• The sale of a stake of Public Gas Corporation
• The sale of a 49% stake of Casino Mont Parnes
• The privatization of state lotteries through concessions
• Finding a strategic investor in Hellenic Post
• The sale of a stake of OTE, Hellenic Defense Systems and Larko
• Renewal of OPAP’s licenses
• Licenses for online betting and “slots”
• The concession of Egnatia Odos
• The sale of TRAINOSE
• The sale of state stakes in banks (Hellenic Postbank, ATEbank, Consignment and Loans Fund)
• The privatization of water supply companies (EYDAP, EYATH)
This is a tragic Greek comedy. Professional/institutional subscribers should reference the 
Greece Public Finances Projections 2010-03-15 11:33:27 694.35 Kb in its entirety. For those who chose not to subscribe, I am posting excerpts from pages 5 and 6 from said document, don't read this while eating or drinking for fear of spitting up your lunch!
Any subscribers who would have went heavily bearish into these banks when I first commented on the would have done quite well:
Why does all of this matter? Because LGD can see 100+, LGD 100+: What's the Possibility of Certain European Banks Having a Loss Given Default Approaching 100%?
Reference the latest Greek exposure research released this week for subscribers European Bank's Greece exposure and stay tuned for a traipse through select French bank exposures in the very near future.
European Bank's Greece exposure and stay tuned for a traipse through select French bank exposures in the very near future.As usual, yours truly,
The wielder of the Fiery Sword of Economic Truth, cutting through investment related Bullshit in a country near you!
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I am not so sure our reserve currency status helps much if as you say "but continually erode our middle class' standard of living." When our standard of living degrades too much we will react just like the Greeks. Yes this is the NWO. Global engineering for the unwashed. Pretty sad....
Greece's woes are a prelude to what will happen throughout Europe. They are all doomed to failure because none of them have the "reserve currency" status of the U.S. with the military might to back it up. However, what happens in the rest of the world will not stay there but continually erode our middle class' standard of living. THIS is The New World Order.
Greece is a microcosm of the U.S. is truer than most of us want to admit.
Most Americans feel entitled whether it be SS, Medicare, Medicaid,
pensions, food stamps, etc., and are very protective of their "fair share".
although it is more difficult for the average U.S. taxpayer to cheat, that
privilege is reserved for the rich.
According to lat gallups, 80% of the greek people are against the bailout and selling greek assets.
For those so inclined: Marla's latest http://www.finemrespice.com/node/96
Not the first time Greek monetary policy has caused headaches for the Germans...
germans looted the Greek gold from the CBG and wanted to annex Greece in order to obtain the "exodus" to the Aegaeis, they never gave up this target,
the Russians wanted an "exodus" to the Aegaeis, thus they created the "macedonian" issue, they never gave up this target,
and the USA/Saxons and Allies wanted to maintain their crucial Mediterarrean bases, they never of course gave up this target
If U want to help your people (the american people) raise your voice loud and demand that the US citizens are not willing to pay any bailout to the greek banksters in exchange for the country's assets (land, companies, infrastructure, etc).
The majority of the greek people are against the 2nd bailout.
If they knew all the details, they would be against the 1st bailout too.
But, it's never too late.
Let Greece default, return to a national currency, starve for a while, and restart again from scratch, instead of transforming Greece into a new Nigeria...
I agree... all of us worldwide should agree to what you say as truth.
It will be painful no matter how it plays out. It really is a question of how long we wish to drag out the pain. A reset like Iceland will turn out to be a better solution for the majority of people. It is just hard to see that now.
Peace.
Overpriced assets to be sure. But, there is some truth in this statement which still undermines the foundation of our economies. Those controlling all the power and wealth prefer paper assets to real ones. They prefer liquidity over long term investment and commitment. They only want to own the things which they totally control and manipulate. It’s all great for Wall Street, and does very little for Main Street.
Reggie... I love your work.
This article includes Greece's assets going on the block to satisfy the banksters. You should do a piece that suggests what assets the US would have to put up for sale. I believe this exercise will put into perspective the ramifications of austerity in the US and help wake up some folks.
I watch Greece as a mini US to project what may happen here. Yes I know we have the reserve currency but even with hyperinflation future asset sales and privatization will have to occur. Some of which will be real shockers. What is your take on this?
We will refuse. Foreigners will curtail trade, foment internal strife, and possibly attack us with troops for not being "green" enough. We will tell them to talk to our B-2s and Tridents. South Africa lacked the latter.
It's not the foreigners which will come to call in the debt, it will be the 1% ... the UK wants to sell of nature reserves to private interest for instance. Nice places for a new home, once the riff raff can be kept out.
“Selling state holdings to reduce Greece’s debt is a necessary condition to get what we are entitled to,” Economou told lawmakers.
You mean so the usury clan/central bankers can get what they feel they are entitled to.
And I thought only politicians in the US were such blatant traitors.
>“Selling state holdings to reduce Greece’s debt is a necessary condition to get what we are entitled to,” Economou told lawmakers.
Perfect example of the Greek mindset, "get what we are entitled to". Assholes. Anyone loaning these people money deserve what they are going to get..stiffed.
That was my first thought when I read that as well.
Ah, the wondrous entitlement mentality. We owe all that we are to it.
I'll bet you and I are loaning them money, since our politicians have decided to do so on our behalf. You're right though, we're going to get stiffed.
me, i would buy a goat. they eat grass, no lawn cutting required. they eat garbage, and you can milk them. heard the male ones are harder to milk, but i'm not a quitter. and they'll boot your mother in-law right in the keyster!
Mr. 'Economou' the Finance Minister? Really?
Nominative determinism bitchez!