What Assets Did Greece Just Hand Over To Europe: "Airports, Airplanes, Infrastructure And Most Certainly Banks"

Tyler Durden's picture

The Simpsons had it right all along:


With the provocative and dramatic Greek "time out" language pulled from the final finmin and summit draft language, the two most humiliating aspects of the latest extend and pretend "deal" for the Greek people will be the return of the Troika's (surely we can call it the Troika again as part of the Greek capitulation) IMF mission to Athens, and the escrowing of some €50 billion in  Greek assets in a liquidation fund.

Granted said fund will not be domiciled in Luxembourg as was originally envisioned, but Europe will still have control and first refusal rights over what are technically Greek properties, in the process Athens handing over about 25% of Greek GDP (and sovereignty) over the Brussels.

What are these assets? For the answer we go to the horse's mouth, Jeroen Dijsselbloem, who laid out the holdings of the proposed Greek privatization that would be sold off as follows: "it still is going to be an independent fund, valued at €50 billion which can be airplanes, airports, infrastructure and most certainly banks.”

Bloomberg quotes the Eurogroup finmin president:

They will be brought in with the target to privatize those in the coming years, but we will take our time for that.


We then hope for proceeds of EU50 billion, but that will be clear later.


The banks first have to be refinanced from this aid program, but after that I take it that they’re worth money and then we can sell them.


The proceedings are aimed at lowering Greece’s national debt.

In other words, Greece will be liquidated piecemeal to repay creditors. In even other words, the proceeds from the Third Greek Bailout will not only not reach the Greek people, but Greece will have to sell itself in pieces to top off the creditors' funding needs.

Dijsselbloem concludes: "That is good for Greece, but also good for us. We are in the end the ones from whom the money is borrowed."

It was not exactly clear why this would be good for Greece.

So for all those curious, here are some of the "assets" that already have, or soon will hit Ebay.


The only caveat: when (not if) Greece defaults again, and it is time to collect on Europe's secured DIP loan (which is what the Third bailout really is) collateral because not even the French socialists can push for a fourth bailout, good luck trying to repossess Aegean islands or the Santorini ferry terminal.

Oh, and for those struck by a case of deja vu, the €50 billion privatization "plan" is nothing new: it was first proposed by the IMF in 2011. This is what happened next:

What does the IMF say now about this latest privatization proposal? "Not realistic."

Which may be a problem for Greek banks since as the summit deal envisions, half of the privatization "proceeds" will go to recapitalize Greece's insolvent banks. Proceeds which the IMF projects will be about €2 billion until 2018!

 This is a problem because with this implicit admission that the Greek financial sector will effectively never receive the needed funds to remain stable, any ELA increase by the ECB will be promptly used by Greek depositors to yank as much money as they can, awaiting the next weekly dose of monetary generosity from Mario Draghi, as both capital controls and the Greek bank run remain a permanent fixture of Greek daily life.

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PrayingMantis's picture




... What Ass Did Greece Just Hand Over To Europe ...

skistroni's picture

Believe me, they NEVER want to collect. This term was only put inside the deal to make it more palatable for the local parliaments all over Europe. When push comes to shove, expect nothing of this to happen. 

And if anyone actually thinks that they will collect, they NEVER want to know what will happen to them when they come to do so. 

VinceFostersGhost's picture



They also gave them their children......hardly worth mentioning.

greenskeeper carl's picture

What about their gold? Or is that already gone?

large_wooden_badger's picture

Corzine stopped in Greece earlier this year on vacation. Mysteriously, no gold was found after his departure...

Captain Debtcrash's picture
Captain Debtcrash (not verified) large_wooden_badger Jul 13, 2015 8:13 AM

So this is how they want to repay the debt instruments held by the old, islands and national parks? That’s not what they need, they need services provided by the young, but if you leave the young on the hook to attempt to pay back the debt not covered by the land they will not have any incentive to provide those services.

They can pretend that they won’t restructure the debt but at some point they are going to have to overhaul the system. They will likely choose a path that will make the banks and government more powerful, but there are ways to do it while moving back toward sound money.

UndergroundPost's picture

International Socialism must be destroyed

tmosley's picture

"This is a problem because with this implicit admission that the Greek financial sector will effectively never receive the needed funds to remain stable, any ELA increase by the ECB will be promptly used by Greek depositors to yank as much money as they can, awaiting the next weekly dose of monetary generosity from Mario Draghi, as both capital controls and the Greek bank run remain a permanent fixture of Greek daily life."

I suspect that this is exactly Tsipiras' plan. Either that or he is just doing whatever he is told with a nearly literal gun to his head.

BTFDemocracy's picture

Maybe Tsipiras just wants to buy the Greek people some time by keeping (ELA funded) banks open for greeks to yank their money out, then exit Euro. Maybe that's why he capitulated; he either knows that Greece can't pay back and is politically maneuvering or he is just a stupid man with no backbone.

TahoeBilly2012's picture

Solution: Sell Greece and her people to Princess Cruise lines and then have them contract with the German Government to be the sole holiday source for Germans needing state paid vacation. Just make it one big cruise ship for German's!!

Stanley Kubrick's picture

Some call it wealth transfer.

Others just call it treason.

A few call it 'Doing God's Work'.

Handful of Dust's picture

Captain above is correct, I think. Any entity needs to generate revenue to pay its debts; producing something people will buy, services they can sell, etc. So far Greece [as well as many many other nations] are not doing that. Simply printing more paper/digital to increase worldwide debts.


A GDP is not going up in real terms by increasing debt and producing nothing new. True, consumption [and thsu GDP] may still rise because they have more debt money to use. It's only more debt. Nothing else.


That's why my financial person says long term gold will rise in response to the printing....i.e., inflation.

MonetaryApostate's picture

I'm afraid it's all going on eBay, Amazon, or Alibaba for that matter...

Fish Gone Bad's picture

This is pretty much what happened in Hawai'i.  Bunch of bankers sold off all kinds of stuff from the royal family.

Scarlett's picture





In exchange they'll give the Greeks banknotes that they print out of thin air, at zero cost!  Hmmm...  good deal when you think about it.

Herd Redirection Committee's picture

Stanley, just wanted to say I loved your work on the Apollo program.  Fantastic stuff.

TheAnswerIs42's picture

Nah, they already tried that during WWII.


itsallgreektome's picture

I think he capitulated because he realised 1.where he was heading into 2.there was no better option after the referendum only worse 3.A violent&unplanned fall back to drachma would lead to a lot of deaths.Simply by the lack of state's funds.No PM wants to be held responsible for that no matter how brave,visionary or else.
My two bits? He is waiting for the tides in E.U. to change, e.g. other parties coming to power in European Countries. But after yesterday's emphatic defeat ,tough luck. 

Grumbleduke's picture

There was a moment when the President of the Eurogroup decided to move against us and effectively shut us out, and made it known that Greece was essentially on its way out of the Eurozone. … There is a convention that communiqués must be unanimous, and the President can’t just convene a meeting of the Eurozone and exclude a member state. And he said, “Oh I’m sure I can do that.” So I asked for a legal opinion. It created a bit of a kerfuffle. For about 5-10 minutes the meeting stopped, clerks, officials were talking to one another, on their phone, and eventually some official, some legal expert addressed me, and said the following words, that “Well, the Eurogroup does not exist in law, there is no treaty which has convened this group.”


So at that point I had to get up and say “Well perhaps we should simply not hold elections anymore for indebted countries”, and there was no answer. The only interpretation I can give [of their view] is “Yes, that would be a good idea, but it would be difficult to do. So you either sign on the dotted line or you are out.”



Memedada's picture

Sure thing. Forced privatization of national assets = socialism.

Totentänzerlied's picture

The inevitable result of spending more than you make and borrowing more than you can pay, in a socialist framework or not - it makes no difference.

The Delicate Genius's picture
The Delicate Genius (not verified) UndergroundPost Jul 13, 2015 11:09 AM

you think
"international socialism" is the problem?

Are you a fucking idiot?

TheReplacement's picture

No.  He isn't one of those morons that successfully navigated public school.  He knows that international socialism is a system of control from the ultra rich and connected to control the masses and suck more wealth from them.

Here's your EBT.  Don't go and spend it all in one place now.  Oh, and don't forget to vote for the parties that promise you more of the same.


What?  That doesn't make sense to you?  Then Mr. Genius, please explain why wealth disparity is always greatest when governments are most socialist.  Does that make any fucking sense now? 


Genius my ass.

Oldwood's picture

Can we at least agree that if they call themselves socialists, and they claim they are implementing socialist policies, that it is NOT idiocy to agree with them?

For the vast percentage of our population, socialism is taken to infer wealth redistribution through the hands, not of any market place, but by the government sworn to act in OUR best interests. Now I realize that it may be inaccurate to call what we are experiencing socialism, but the socialist redistributive notions are the premise being used to do what is being done. Many of us brace at the association of capitalism to our demise as well, and there is no doubt that these same people seeking to dominate us will promote the worse parts of our perceptions of capitalism to our demise. Regardless of your preferred theme, the one thing that has NEVER been tried by government is freedom, as that is contrary to their interests of control.

There are no pure examples of any ideology, because they all fail. The only common theme that is universal and predictable is corruption, and every fucking ideologue ultimately finds it to be their greatest achievement. Even Marx was a corrupt and far from perfect ideologue....and he wrote the fucking book.

We need to stop idealizing ANY "ism" and simply demand transparency and accountability.

We have people in powerful positions that will use "isms", religion or saving the earth as a means and excuse to oppress the world, while people such as yourself want to argue the strict definition of the means of our demise rather than the intent.Can we at least agree that no "ism", regardless of how completely perfect is sounds to our hearts and ears, will provide us freedom as long as its primary goal is to amass concentrated power? Can we agree that power IS the problem? That no person on this earth can possess such power without becoming corrupt and eventually seeking dominion over all life on this planet...and beyond, if there is one?

Tall Tom's picture

International Socialism must be destroyed



In due time. It is self destructing as we write. Patience is a virtue.


You can help out to speed the demise and it is perfectly legal.


Stop financially supporting it.


Stop spending and sticking others with those worthless Debt Instruments that are used as your National Currency.


Governments cannot garner taxes on dead currency.

Corporations cannot garner profits on dead currency.


What keeps the system alive is your active participation.


When the masses refuse to participate then the Fraud ends.


Oh I know you need to pay for that which is necessary. I am not suggesting that you become homeless or starve.


In fact just slow your spending down to that of bare necessities. That is practical after all.


All that needs to be impacted is the Bottom Lines of the profits. When Corporations and Governments are bleeding red on their Balance Sheets due to the lack of revenue then they will become solvent and capititulate.. If their budgets exceed revenues..yeah...I know...the Fed will just print and feed it to them as they are "Too Big To Fail".


But there are even limits as Investors will get out of their issued Bonds and sell off unprofitable Stocks.


Thus the whole house of cards will collapse.


Stop spending. Stop supporting it. Financial support is SUPPORT. Stop participating in the fraudulent Ponzi Scheme. Pyramid schemes only work until they run out of suckers. You...Well you reading this...You are the SUCKER. The word, SUCKER, is printed in LARGE LETTERS right on your own forehead and you are too fucking blind to see it.


Stop participating in the promotion of the fraud.


You can do it. We all can do it. Do your part by accelerating the collapse. You are not violating any laws by doing so.


Fuck the FED...


AND FUCK YOU NSA. Ideas are infectious.

Meat Hammer's picture


"If the people understood how money is created there would be a revolution tomorrow." -Ron Paul

Ignorance is death.

The Big Ching-aso's picture

I think Putin would've entirely bailed out Greece in exchange for the island of Lesbos but got out-licked by Germany.

BLOTTO's picture

I'm also interested to know what the lying fag Satan, tweeted about...

toxic8's picture

.....aaaaaaaad it's gone, its gone its all gone

invisible touch's picture
invisible touch (not verified) Meat Hammer Jul 13, 2015 10:27 AM

you obiously a fucking idiot deserving to die since this sentence is from henry ford.



Excursionist's picture

Pretty sure no one under 35 gets that reference (one of my personal favorites), so I thought I'd include the YouTube link:



I used the term "B Side" recently with a 20-something on my team - as in, "That work you just put together should go on a B side," - and he looked at me blankly.  Only after my asking did he fess up that he'd never heard of a "B side".  <sigh>

Charming Anarchist's picture

Try explaining album filler to them.

Shitters_Full's picture

His name was francis_sawyer...

Meat Hammer's picture

Maybe Chuck E. Cheese said it. Who the fuck cares? The message is still the same, bitch.

Jstanley011's picture

The only problem is, Ron Paul has no idea how money is created, nor does anyone else in the "out of thin air" "backed by nothing" school, which includes just about everybody at ZH including the hosts.

Jstanley011's picture

I will summarize my previous post or two on the subject of the assets that back fiat currencies:

ME: Do you have a mortgage?

DORK: Yes.

ME: Did you know the bank "created" the money it loaned to you?


ME: Do you know what the bank will do if you quit paying on your mortgage?

DORK: It will foreclose on my house.

ME: Do you realize that means that it is your house that backs the money the bank created for you?

DORK: *crickets*

Totentänzerlied's picture

Are you willfully and intentionally misunderstanding the plain meaning of "out of thin air" and "backed by nothing" or are you really that stupid (public school perhaps)?

Having read your next post, I suspect it's the latter.

J Jason Djfmam's picture

These loans were made of dreamed up fiat currency, and

should only have be paid back in dreamed up fiat currency.

VinceFostersGhost's picture



What about their gold? Or is that already gone?


Good luck with that.


Might be able to scrub up some bitcoins or something....they're mostly air.

VinceFostersGhost's picture



I'm not klm....but we have a Go Fund Me account set up.


klm will be back across the border before you know it.

To Hell In A Handbasket's picture

Greek gold? lol. Gone the same way as Libya's 350 tonnes, after they allowed the Jihadists to place a few thrusts of a sword up Gaddaffi's rectum.  Just ask Iraq about its now lost gold reserves. Probably in some New York vault, belonging to the banksters, being rehypothecated to the moon and back.

disabledvet's picture

First off 200,000 views is VERY impressive.



"He'll say yes to that" I would imagine.

Yen, euro, Yaun...gold, silver...who knows what's in those "hi yiellding instruments"....

Just sayin'...

Brazen Heist's picture

Greek gold holdings are about USD 5 billion.

Its nothing.

greatbeard's picture

Nothing?  They've got the makings for a decent market open slam down.  Oh, we're talking real gold aren't we?  Never mind.