Bourse slump could delay Greece privatisations

The head of Greece's new privatisation agency said on Thursday that plunging stock markets could be an obstacle to the country's privatisation plans and that the timetable might have to be delayed.
Greece, which is struggling to avoid defaulting on its debts, has committed to a timetable of asset sales, with the aim to raise 50 bln euros ($70 bln) by 2015 as part of an EU/IMF bailout. By the end of September it must meet an interim target of 1.7 bln euros.
But the Greek stock market has shed 30% since the beginning of the year, reducing the market value of several state-run companies slated for privatisation, such as gambling firm OPAP and electricity utility PPC .
Asked to comment on planned stake sales of Thessaloniki Port and Thessaloniki Water, scheduled for the third quarter of this year, the chairman of Greece's new privatisations agency Ioannis Koukiadis told Skai TV: "There is obviously a problem after the drop of the companies' stock market values."
"The question raised … is whether the government can change the timetable or its priorities … to avoid a sale at worthless prices," Koukiadis said.
Shares in Thessaloniki Water , the country's second-largest water utility, have fallen 26 percent in four months, cutting its market value to 136 mln euros.
Thessaloniki Port , the second-biggest port operator, has tumbled 37% since the beginning of April, slashing its market value to 112 mln euros.
"There must be an alternative solution, whether it will be a delay, or finding a way of exploitation which would yield maximum results for the government," Koukiadis said.
Finance Minister Evangelos Venizelos said last month it might not sell its full 34% stake in gambling monopoly OPAP , as stipulated in the country's 2011-2015 austerity plan.
But Venizelos insisted the country would meet its privatisation target of 1.7 bln euros by the end of September and 5 bln by the end of this year, possibly seeking ways other than a direct stake sale to raise money from OPAP, such as extending its monopoly licence .