Banks con­cerned over ADMIE spin-off plan

Kathimerini English - - Focus -

Greece’s four big­gest lenders are con­cerned about the spin-off of the coun­try’s power grid op­er­a­tor ADMIE, a key con­di­tion of a bailout agree­ment be­tween Athens and its of­fi­cial cred­i­tors, a banker and a govern­ment of­fi­cial said yes­ter­day. ADMIE is fully owned by Greece’s state-con­trolled elec­tric­ity util­ity Public Power Cor­po­ra­tion (PPC). Un­der a leg­is­lated scheme, PPC will sell a 24 per­cent stake in ADMIE to China’s State Grid for 320 mil­lion eu­ros and trans­fer an­other 51 per­cent stake to the state and its cur­rent pri­vate share­hold­ers for free. But banks which have ex­tended siz­able loans to PPC sent a let­ter to the Fi­nance Min­istry this week, ex­press­ing wor­ries over the plan. “In their let­ter, they point out their con­cerns on the sale of a large stake in power grid ADMIE with­out any pro­ceeds,” said a banker at one of the coun­try’s big­gest lenders, speak­ing on con­di­tion of anonymity. Banks say this weak­ens PPC’s fi­nances, which have been un­der pres­sure in re­cent years due to pro­vi­sions for bills left un­paid by cus­tomers hit by

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