The first privatization of the Greek government could be facing problems before it even gets off the ground.
German company Fraport, which was officially granted the 14 regional Greek airports Monday, is finding it hard to raise investment funding due to the high risk involved, while the contractor is pressing the Greek government for guarantees regarding the concession.
According to Kathimerini newspaper, there are concerns whether the 1.2bln Euro concession price stipulated in the Government gazette will actually be raised in 2015.
The leftist Greek government is expediting the process in order to have the contracts signed by the end of November.
Fraport spokesman said the decision by the Greek economic cabinet council was ‘a base for resuming negotiations between Fraport and TAIPED-the The Hellenic Republic Asset Development Fund’, adding that the German company was in no position to disclose the nature of these talks.
He also added that there was no timeframe for the outcome of talks. Greek market pundits believe the German company is stalling in order to get better concessions.