Greece Sold its Biggest Port to Chinese

Greece carry on with privatization of its state companies

April 09th, 2016

Greece on Friday 8th of April 2016 signed an agreement selling one of its biggest ports of Piraeus to the Chinese company COSCO. For roughly two thirds of the port, Chinese will pay around 368.5 million Euros. However, to fulfill the privatization plans of Athens it is not enough.

The agreement was signed in Athens between the Greek Prime Minister Alexis Tsipras and Chairman of COSCO Company Xu Li Rongji. First of all, COSCO will, according to the agreement buy a 51 percent share of the port for 280.5 million euros. After completing the first required investment, additional 16 percent shares of the port will be bought for 88 million euros.  Piraeus is a major maritime gateway to Asia, Eastern Europe and North Africa. COSCO already has an authorization in the port of Piraeus to manage two of the three container terminals.

Privatization of state assets is one of the key conditions of the third rescue program for heavily indebted Greece. Under an agreement with European creditors Athens has to gain around 50 billion euros by selling national assets. However, the Greek Economy Minister George Statchakis said on Tuesday during the German-Greek economic forum in Berlin that Greece may obtain from the privatization of state property only 6 to 7 billion Euros. The German Finance Ministry said in response that as per the original agreement, nothing changes.

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Cultural Diplomacy News
Adam Slezak, CD News