Greece’s international lenders will press Athens next month to transfer state-owned real estate to a holding company managed by the euro zone to spur flagging privatization efforts, officials said on Thursday.
The plan, to be put to the Greek government by the troika of lenders – the IMF, the European Central Bank and the European Commission – in September, will propose creating a Greek-owned holding company outside Greece and run by foreign experts.
The plan, first suggested two years ago, reflects growing frustration with Greece, which will probably need further aid and has made scant progress in reforming its public sector and selling assets.
Acting as a warehouse for property, it would seek to overcome Greek bureaucracy that has undermined the privatization program, agreed as part of a 240-billion-euro ($320-billion) rescue. It will also ensure that the money raised will help pay off Greece’s debt.