The first privatization of the SYRIZA-ANEL coalition government is not finalized yet as German company Fraport, which has agreed to take over operations of 14 regional airports, now asks for guarantees, claiming political instability concerns.
Fraport claims it has difficulty raising investment funding due to the high risk involved. Therefore, raising the agreed 1.23 billion euros before the end of 2015 is improbable.
The Greek government is trying to expedite the deal since the airports’ privatization is one of the prior actions required for Greece’s bailout agreement.
A Fraport spokesperson said the decision by the Greek authorities was “a base for resuming negotiations between Fraport and the Hellenic Republic Asset Development Fund (HRADF).” He also added that there was no timeframe for the outcome of talks.
Fraport has offered 1.234 billion euros as well as a 22.9-million-euro annual payment, adjusted for inflation.
The 14 airports are those of Aktion, Chania, Corfu, Kavala, Kefalonia, Kos, Mytilene, Mykonos, Rhodes, Samos, Santorini, Skiathos, Thessaloniki and Zakynthos.
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