The Greek government has said it wants to issue bonds some time this year if market conditions allow, although the 110 billion euro EU/IMF bailout enables it not to do so before 2012.
"The prospects for Greece returning to the markets in 2011 are rather bleak. Even going in 2012 is with a question mark because it will depend also on the global environment," Servaas Deroose told Reuters during an inspection visit to Athens.
"The acid test of the programme is if Greece can return to the markets ... It should be done on a sound basis," he added.
Deroose said markets were keen to see Greece cut its debt through privatisations, adding that restructuring banks was also key to a successful return to markets as the spillover to the euro zone periphery has driven Greek spreads higher again.
"The banks, both private and public, will have to be restructured. They are short on liquidity, they need to deleverage and to restructure," he said.
Greek banks have been spared the problems of their EU peers because they had little exposure to toxic assets, but they are heavy on government bonds and have taken a beating from an austerity-induced recession.
They have lost access to wholesale funding markets in the wake of the country's debt crisis and have increasingly relied on the ECB for their liquidity needs.
The EU and IMF inspectors said on Friday that Greece had agreed on a new target of 50 billion euros in privatisation in 2011-2015, with a first 15 billion euros coming in in 2011-2012.
"Fifteen billion for 2011-2012 is well-estimated, I have no doubt about this figure, the question will be: 'Can we do it in two years'," Deroose said.
He said Greece could target proceeds of at least 35 billion euros from commercial real estate, 10 billion from listed and unlisted public companies and 5 billion from the former Athens international airport, Hellenikon.
"I hope the government is now ready to do something with their shares in telecoms, in (power utility) PPC (Dei) with the gas company," Deroose said.
source: Reuters
