Trade with Greece
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or have not been utilised to the maximum possible
degree, the successful launching and realisation of
new private investments on public property will
also signal the reversal of negative investor senti-
ment and mistrust towards the Greek economy.
Both in theory and in practice, it has been demon-
strated that privatisations are not only conducive
to sustainable fiscal adjustment but, moreover, if
they are accompanied by a strong commitment to
future investment, can enhance the flow of pro-
ductive investment resources, create new mar-
kets, develop existing ones, and help boost
aggregate demand. In Greece’s case, in particu-
lar, they can also help utilise certain capabilities
and growth prospects of the Greek economy that
have been unexploited up to date. Furthermore,
the utilisation of public property through the new
fund that will replace the Hellenic Republic Asset
Development Fund (HRADF), as stipulated in the
new Memorandum of Understanding, will lend
new dynamism to the privatisation programme,
since its targets and schedule will be redefined on
the basis of the experience accumulated in recent
years, as well as updated data on the market and
the economy.
The greatest “thorns”
The plans for the utilisation of public real estate
have, over time, been hindered by a host of legal,
technical and procedural issues, the involvement
of agencies with different and quite often compet-
ing interests, as well as the scarcity of resources.
In 2011, the formation of the HRADF signalled the
beginning of a concerted effort to attract direct
investment in infrastructure, energy, and real
estate. Public properties that attracted lots of
investor interest and showed a high degree of
legal and technical maturity were bundled under
the Fund, in order to be marketed through tenders
aimed at their long-term concession, lease, sale,
or securitisation. The flagship of this effort was the
development of the site of the former international
airport at Hellenikon, the tender for which was
launched in late 2011. However, the beginning of
actual work on the project is still pending, despite
the fact that an operator has been assigned since
