Greek CDS-Buying Villain Hellenic Postbank To Be First Casuality Of Hellenic "No Bid" Privatization Reality
A little over a year ago, when the Greek CDS scapegoating campaign was in full swing (you see, the reason why the first $1 trillion Greek bailout failed is because of those evil, evil CDS traders: it had nothing to do with Greece being, well, bankrupt), one of the most hilarious discoveries was that among the chief speculative villains was none other than the state-owned Hellenic Postbank. That's right: the government of Greece was profiting by betting on its own demise even as it was making a stink about others doing the same. Well, justice for the insolvent is short, swift and quite poetic. According to Reuters, the first entity to fall to Greece's privatization ambitions will be the very same bank. (Granted, this is not really news: Greek Reporter noted this some time ago, see below). What will be funny is when Greece puts up its insolvent banks on the block and discovers that nobody wants to come within 10 feet of them, unless, of course, it is JP Morgan buying it up with the assistance of Maiden Lane IV, also known as My Big Fat Greek Bailout Taxpayer Funded Conduit, for 2 drachmas per share.
As for what else will be hitting the Ebay docket, here is Greek Reporter with a complete list of assets that are about to hit the Blue Light special. Alas, not a single Cyclades Island is on the list yet.... give it a few weeks.
Government Finalizes Privatization List (via Greek Reporter)
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.
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
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
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)