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Privatization of regional airports questionable

19 August 2015 / 13:08:20  GRReporter
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The Greek government may approve the concession contract for the 14 regional airports with a several months delay but the completion of the privatization deal that will bring 1.234 billion euro in revenue is still questionable, however this time due to obstacles on the part of the concessionaire.

The German company Fraport wants to obtain indisputable guarantees of the concession on the one hand but finds it difficult to secure the required financing because of the risk situation in Greece on the other, as indicated by reliable sources.
The concession contract for the airports has not yet been signed, although sources familiar with the case assure the newspaper Kathimerini that special efforts will be made to do so by the end of November, adding that this will require an extension of the validity of the bank guarantee. Even so, however, competent factors express reservations about how the sum of 1.234 billion euro will be paid in 2015 as stipulated in the new memorandum.

Sources familiar with the negotiations between Athens and Fraport during the past six months disclose to the newspaper Kathimerini that, due to the political and economic uncertainty in Greece, the Germans have gone so far as to argue that their offer is not binding and to consider their withdrawal from the deal.

Tags: AirportsPrivatizationObstaclesConcessionaireFraportBinding offer
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