The new 50bln Euro Assets Fund will operate as a state-owned investment fund, according to sources within the Greek government. According to the same sources, revenues generated from the exploitation of possible mineral wealth will flow into the new Asset fund, while it will not operate on the principles of the current Hellenic Republic Asset Development Fund (TAIPED). Government sources point out that the 30-year period for raising the 50bln in the new Fund will offer ‘breathing space’ for the Greek government to take full advantage of state property. The operation of the new fund is one of the thorny issues between the Greek negotiating team and the institutions’ representatives. It should be noted that even the institutions have eased the pressure on the Greek government to raise 50bln Euros through privatizations given the sharp downturn of conditions in the Greek economy. The IMF predicts a mere 1.5bln Euros will be generated by 2018, while the European Commission is slightly more optimistic raising the bar to 2.5bln Euros. it should be stressed that the current TAIPED Fund was projected to raise 6bln Euros by 2018! Assets transferred to the new fund will include:
-State owned assets
The Fund will possibly include all future profits derived from oil and natural gas exploration. Despite the inclusion of public property in the new fund, this does not necessarily mean their sell-off, as was the case with the current TAIPED fund. Some state assets could be sold, while long-term concessions could be made to private companies for other public properties.