IMF/ECB/EU units will examine the deficits of previous years, as there is a high risk of further increase.
Greek government managed to reduce the deficit by almost 6% of GDP in 2010, but failed to limit it to 9.4% of GDP, due to the ongoing revision of budget deficit. Competent officials note that Hellenic Statistical Authority (ELSTAT) reviews the financial figures of public entities of all previous years. It is rumored that the revised deficit may reach a shocking rate that will cause enormous obstacles to the implementation of Memorandum of Understanding.
Troika won’t proceed with final decisions on the deficit and new measures. ELSTAT will be in contact with Eurostat until April 26, when the EU statistical agency will make official announcements. However, Troika wants to have a clearer view of the size of the medium-term package.
Finance Ministry officials have prepared proposals for alternative measures that exceed €22m. However, many of them encountered the opposition of the competent ministers.
Government officials propose a shift of the negotiations with troika to the privatization package, which shows signs of process. An extensive meeting was held on Monday, chaired by Prime Minister George Papandreou, for this very point, while a meeting of the Interministerial Committee for Strategic Investment is scheduled for Wednesday.
According to sources, the long delay in preparing a list of public enterprises and short-term movements has caused internal criticism. The appointment of consultants for privatization is pending for several months and time is running out, according to the Memorandum’s schedule.
The privatization of Casino Mont Parnes and the extension of the concession of Athens International Airport should be completed by June, while the privatization of Hellenic Defense Systems and Greek Lotteries has been scheduled for September. Public Gas Corp, LARKO, Hellenic Railways are set for December.
Finally, official state that the list will be enhanced, so that the government will raise €50b. However, consultants for LARKO and Casino have not been hired yet.
Greek government managed to reduce the deficit by almost 6% of GDP in 2010, but failed to limit it to 9.4% of GDP, due to the ongoing revision of budget deficit. Competent officials note that Hellenic Statistical Authority (ELSTAT) reviews the financial figures of public entities of all previous years. It is rumored that the revised deficit may reach a shocking rate that will cause enormous obstacles to the implementation of Memorandum of Understanding.
Troika won’t proceed with final decisions on the deficit and new measures. ELSTAT will be in contact with Eurostat until April 26, when the EU statistical agency will make official announcements. However, Troika wants to have a clearer view of the size of the medium-term package.
Finance Ministry officials have prepared proposals for alternative measures that exceed €22m. However, many of them encountered the opposition of the competent ministers.
Government officials propose a shift of the negotiations with troika to the privatization package, which shows signs of process. An extensive meeting was held on Monday, chaired by Prime Minister George Papandreou, for this very point, while a meeting of the Interministerial Committee for Strategic Investment is scheduled for Wednesday.
According to sources, the long delay in preparing a list of public enterprises and short-term movements has caused internal criticism. The appointment of consultants for privatization is pending for several months and time is running out, according to the Memorandum’s schedule.
The privatization of Casino Mont Parnes and the extension of the concession of Athens International Airport should be completed by June, while the privatization of Hellenic Defense Systems and Greek Lotteries has been scheduled for September. Public Gas Corp, LARKO, Hellenic Railways are set for December.
Finally, official state that the list will be enhanced, so that the government will raise €50b. However, consultants for LARKO and Casino have not been hired yet.
source: CAPITAL
