Greece plans to freeze rents for theaters and cinemas and cut them for state-owned hotels to provide relief as the economic crisis curtails profits, Economy and Competitiveness Minister Michalis Chrisochoides said.
“The crisis and recession are trying on the real economy,” Chrisochoides said at a presentation in Athens yesterday, according to an e-mailed transcript of his remarks. “We are implementing policies that can give immediate practical solutions to small and medium-sized businesses.”
The government plans to extend leases by 12 years, cut rents paid by 204 hotels by as much as 20 percent and freeze rents for 500 theaters and cinemas for five years, he said.
Greek businesses have come under pressure as a result of austerity measures imposed by Prime Minister George Papandreou in exchange for a European Union led 110 billion-euro ($157.5 billion) bailout. The economy, which contracted 4.5 percent last year, may shrink 3.5 percent in 2011, according to European Commission estimates released on May 13.
About 70 percent of Greek businesses occupy rented space, the cost of which amounts to 20 percent to 30 percent of operating expenses, Chrisochoides said. Legislation being drafted may be expanded to include all leases from the state, he said.
Bloomberg
