Negotiations between the Greek government and creditors’ representatives will continue on Wednesday over the four primary draft texts that have been given to the former before talks resumed this week, as well as on Athens’ observations on the texts’ points.
The Tsipras government sent its observations late Tuesday evening, confirming the development via a “non paper”.
Essentially, the four draft texts are an updated version of the current memorandum (third bailout), another two agreements that must be agreed to with European creditors and the Memorandum of Economic and Financial Policies (MEFP) with the IMF, assuming that the latter’s participation in bailout is finalized.
A government source this week said the five-page MEFP text gives more weight to “certain issues”, without citing the “issues” over which the Fund has focused its attention.
One disagreement, as confirmed by the government side, is Athens’ demand for modified language describing a mechanism by which the state will monitor major public sector enterprises’ (i.e. utilities) policy, as well as the exclusion of certain state-run enterprises from a relevant supra-privatization fund.
Another issue that arose on the first day of resumed negotiations is the delay-fraught Helleniko real estate redevelopment project in coastal southeast Athens, another landmark privatization that serves as a “barometer” of the leftist-rightist coalition government’s adherence to memorandum-mandated obligations and its investor-friendly attitude. The Greek side reportedly assured creditors’ top auditors that whatever obstacles will soon be resolved.
The massive property redevelopment project, which is worth billions of euros and cited as the biggest such investment in Europe at the moment, is currently entangled in ubiquitous modern Greek “red tape”. Investors are still waiting for the relevant forestry and archaeological services to provide necessary documentation that forestland and antiquities aren’t found or threatened on the tract of land that over recent decades hosted Athens’ only commercial airport, a military airbase and assorted other buildings, including Athens 2004 Olympic facilities. Practically all of the buildings, tarmacs, runways etc are abandoned today, excluding a one-time airport terminal that hosts hundreds of Mideast war refugees and other third country nationals that illegally entered Greece over the past two years.
Energy issues
In terms of energy-related issues, the Greek side, as expressed by relevant minister Giorgos Stathakis on Monday, said that whatever differences are expected to be overcome this week. A standing demand by creditors is for up to 40 percent of state-run PPC’s power generation capacity to be sold to the private sector, primarily lignite-fired units in northern Greece.
Creditors, especially the IMF, want an increase in future electricity production blocs auctioned off by PPC – via the NOME mechanism – along with the future full liberalization of the natgas sector in the country.
