been some steps forward in regard to privatisa-
tion, there are still decisions to be made, which
cannot be delayed anymore.
“As estimated by the Bank of Greece, privatisa-
tions hold a huge potential, which could yield far
more than the quantitative revenue targets.”
This requires a comprehensive plan that will spec-
ify targets, set the uses and forms of the desired
investments, and lay down a stable and compre-
hensible framework for potential investors. This
plan will be assigned to the new public real estate
development fund, which, in accordance with the
agreement, must be set up within the first half of
2016. This commitment must be met, and the
objectives of the new fund, which will redraft the
privatisation and public real estate utilization pro-
gramme, must be clearly specified. More specifi-
cally, according to the Annual Report of the Bank
of Greece, the utilisation of public real estate is
justifiably one of the key pillars of the new loan
agreement. Apart from generating capital gains
and securing substantial returns from properties,
resources, and services that remain unexploited
A
ccording to articles by leading econo-
mists, privatisations have, among other
things, a positive impact on total national
output and the economy’s growth rates when they
go hand in hand with wide-ranging reforms, such
as the enhancement of competition, institutional
modernisation, the development of capital mar-
kets, and the reduction of state interventions in
the economy.
As stated by the Governor of the Bank of Greece,
in his speech at the Annual Meeting of the
Shareholders, “The scaling-up and successful
implementation of the privatisations and public
real estate utilisation programme are decisive to
economic growth, as they will have a multiplier
effect, with long-lasting gains for the domestic
economy. Privatisation proceeds can be used to
gradually pay off public debt, supporting fiscal
adjustment. Furthermore, when accompanied by
a strong commitment to future investment, privati-
sations enhance the inflow of funds for productive
investments that stimulate employment and
aggregate active demand.” Although there have
Trade with Greece
34
The progress
of the privatisation
programme
In Greece, privatisation sales began in early 1990,
as part of the wider aim of enhancing
the Greek economy’s competitiveness.
By Dimitris Christoulias
Utilising public property
plays a key role in restructuring
the Greek economy
