Greece continues the struggle to contain its fiscal crisis and a week after their pledged to extend the austerity measures and asset sales the government endorsed new measures to win the EU and IMF support for more aid.
The government adopted an accelerated asset-sale plan and a new round of 6 billion euros budget cuts to avoid a seemingly inevitable re-profiling or what is to be soft restructuring.
The Prime Minister George Papandreou addressed the Cabinet yesterday and agreed to sell stakes in Hellenic Telecommunications Organization SA by the end of next month and also Public Power Corp SA and Hellenic Postbank SA, the nation's ports.
The Cabinet also announced additional budget cuts of around 2.8% of the GDP in more steps to reach the 2011 budget deficit target of 7.5% of the GDP. The EU before those new measures said that deficit will be 9.5% of the GDP.
The government will create a sovereign wealth fund of the assets to accelerate the sales which intend to raise 50 billion euros by 2015. The market value of the three companies mentioned is valued at 2.1 billion euros.
The government plans to complete the sale of Postbank by the end of this year and sell 75% of its stakes in Piraeus Port Authority and Thessaloniki Port Authority SA.