Euro Exchange Rate News

Greek government makes itself homeless in effort to fill fiscal hole

Yesterday the latest data from Elstat revealed that in the last quarter of 2012 the Greek economy didn’t contract as rapidly as initially estimated, shrinking by 5.7 per cent on the year rather than the 6 per cent first estimated.

Over the whole of 2012 the Greek economy contracted by 6.4 per cent.

And with Greece’s rescue creditors piling on the pressure, the struggling nation is exploring every avenue when it comes to speeding up its privatisation program.

In the Greek government’s efforts to claw its country out of a gapping fiscal hole nothing is sacred, not even the governments own buildings.

According to the Hellenic Republic Asset Development Fund, the hard-up government intends to sell (on long-term lease) 28 state-owned buildings over the next month.

Buildings for the chop include the greater Athens police headquarters, a building which has seen more than its fair share of activity during the various anti-austerity riots which have rocked Greece in the past few years. The main buildings used by the ministries of culture, justice and education, as well as a dozen tax offices, are also up for grabs.

Anyone looking to invest in the buildings needs to make their interest known by the 19th of April.

The building sales are expected to make 30 million Euros per year for a government privatisation fund. The long-term lease agreements will last between twenty and twenty five years.

This latest scheme comes just as Greece’s creditors met with the Greek finance, development, interior and labour ministers yesterday. Inspectors will also be meeting with Greek Prime Minister Antonis Samaras on Tuesday.

Exit mobile version