The government is immediately promoting the transformation of the privatization fund into a new National Investment Fund, as well as the modernization of public enterprises and organizations operating under its umbrella.

The basic provisions – as well as critical details – of the new bill to be brought to Parliament, will be presented today by Economy and Finance Minister Kostis Hatzidakis at the Cabinet meeting under the Prime Minister.

The GrowthFund is assuming a new role and, instead of controlling state-owned companies to collect profits, from 2024 it will also turn to the search and promotion of start-up or innovative private sector companies in sectors and industries critical to the Greek economy.

The same bill also brings changes regarding the appointment of managers in state-owned enterprises by the market, based on formal and professional qualifications, without the lengthy procedures of the AΣEP. In addition, solutions suitable for each enterprise depending on its activity will be sought. The aim is to consolidate small energy companies into the larger company model but on a smaller scale.

National fund

The bill will set out the framework for the operation of the new National Investment Fund on the model of the corresponding European funds, with a developmental orientation. What does this mean in practice? According to the information:

– The new Investment Fund will be established under the auspices of the EESYP (Hyperfund)

– The fair value valuation will be determined by an international, independent and reputable valuer

– The Greek State will be the sole shareholder and will participate in the capital by contributing “hot money” from the “cushion” of the liquid assets of the state entities (amounting to almost 40 billion euros) without the expenditure burdening the public deficit since the Ypertha Fund itself belongs to the General Government entities

– Of the approximately €1 billion, 50% will be allocated as the initial capital of the New National Investment Fund to finance development actions

– The remaining 50% (i.e. half a billion euros) will be directed to ESM loan repayments through the EFSF. And thus reduce the existing public debt

In this way, instead of the Yperat Fund merely controlling state-owned enterprises as a deposit or until the Third Memorandum loans are repaid by 2070, it will be more actively involved in the growth of the Greek economy, contributing to the country’s GDP growth that will also allow for smooth loan repayments even in times of economic shocks.

Source: newmoney

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