Port Vila, Vanuatu (PressExposure) June 08, 2010 -- The cash poor Greek government is ready to getting ready to sell off stakes in a string of state-owned companies, including two water companies, a rail operator, the Post Office and several casinos.
Finance Minister George Papaconstantinou said the rail company is losing around 1 billion ($1.47 billion) a year. Routes that are causing the principal financial losses will be scrapped.
After European countries and the International Monetary Fund scrambled together a 110 billion ($161.99 billion) rescue package, Greece still narrowly missed defaulting on its huge debt burden last month.
The centre-left Government concurred on extensive pension and salary cuts, combined with consumer tax hikes. It is meant to cut the budget deficit from 13.9% of annual output to 2.6% by 2014.
Under the terms of collecting the rescue loans, the Greek government aims to create 1 billion annually from 2011-13, through privatization projects.
"Proper management of state assets,"said Papaconstantinou, "Including extensive but largely uncatalogued real estate holdings - would save 'tens of billions' in reductions of the public debt and budget deficit." State assets that have never before been calculated.
Greece will sell a 49% stake in rail operator Trenose and surrender management control, under the planned sell-off announced by the government. It will also restructure the broader Hellenic Railways group, which has accumulated debts of some 10 billion ($14.73 billion) and runs at daily losses of close to 3 million ($4.42 million).
Dimitris Reppas, Transport Minister, said the Government would reassess Hellenic Railways workers' skills, transfer some to various public sector employments and keep those who were needed. Greek law bans the dismissal of civil servants.
Another possibility for Greece would be to sell off some of its 'Greek islands', just as Napoleon Bonaparte sold the Louisiana Territory, of more than 2m sq mi, in 1803, to the United States for $20m to finance his war against England. He did however, oft to hold onto France.
President Jefferson concluded that the practical benefits to the nation far outweighed the possible violation of the Constitution, even though the Constitution did not specifically empower the federal government to acquire new territory by treaty.
The Spanish had never relinquished physical possession of Louisiana to the French. They did so in a ceremony at New Orleans on Nov. 30, 1803. This was quickly followed by a second ceremony, on Dec. 20, 1803, when the French handed Louisiana over to the United States.
About Greek Government Selling Assets For more information: http://www.tropicpost.com/greek-government-sells-off-assets/