Athens’ list to EZ creditors may put privatizations back on track

The commitment not to block privatizations was included in a list sent by the government to eurozone creditors on Mon.

The new Greek government’s pledge not to reverse ongoing privatization tenders or past deals has recast light on a handful of projects deemed “dormant” after leftist SYRIZA won the Jan. 25 election.

The commitment not to block privatizations was included in a list sent by the government to eurozone creditors on Monday, after the information was mandated at a Eurogroup meeting last Friday. The list of reforms and commitments was more-or-less a prerequisite for a four-month extension of a loan agreement requested by Athens last week. The extension was deemed necessary as the current bailout agreement expires on Feb. 28.

The list was sent by Greek FinMin Yanis Varoufakis to his Eurgroup counterparts via email late Monday evening.

One privatization on the horizon was the Independent Power Transmission Operator (IPTO or ADMIE), Greece’s electricity transmission system operator, and even the state-controlled and listed Public Power Corp. (PPC). The power utility enjoys a near monopoly in residential and retail service. Another candidate for privatization was DESFA, the national natgas system operator.

Varoufakis’ text leaves a “loophole” open for re-examining privatizations that had not been tendered.

According to more recent statements by the Greek government, the goal is to maximize benefits for the state from any future deal.

Conversely, new minister Panagiotis Lafazanis, who hails from SYRIZA’s anti-capitalist “Left Platform” wing and who holds the energy portfolio, told “Proto Thema” that the government’s “red lines”, against privatizations, remain.