Greece is considering repaying its national debt by selling state-owned properties with an estimated value of as much as EUR 300 bn, according to a news report by Bloomberg. The European Union and International Monetary Fund, as well as German politicians who oppose bailing out Greece and local lawmakers, have urged Greece to sell or lease casinos, golf courses, airports and even islands to pay down debt and avoid a default.
Greece is considering repaying its national debt by selling state-owned properties with an estimated value of as much as EUR 300 bn, according to a news report by Bloomberg. The European Union and International Monetary Fund, as well as German politicians who oppose bailing out Greece and local lawmakers, have urged Greece to sell or lease casinos, golf courses, airports and even islands to pay down debt and avoid a default.
The EU, which led a EUR 110 bn rescue of the country in May, said in a December report that 'sizable' proceeds could be generated this way, the news agency reported. The assets earmarked for sale range from a golf course on the island of Rhodes to the former Athens airport of Hellenikon. The government is due to publish an inventory by June.
Greece will face competition from debt-burdened governments across Europe, particularly in the south, to find investors for its real estate in the face of ballooning public deficits and debt in the wake of the financial crisis. Falling property values and tougher borrowing conditions cut proceeds from state-owned property sales in the 27-member EU to EUR 3 bn in 2008 and 2009, from EUR 13 bn in the two years through 2007, according to a July report by CBRE.
In November, Italy failed to attract bidders for three military barracks. The country plans to transfer more than 11,000 state-owned properties to its regional governments who can then lease or sell them onto third parties to reduce municipal debt.
