By F. Zois
Greece’s semi-autonomous privatization fund (TAIPED or HRADF) will demand a “sustainable” business plan for the restructuring of Greece’s state-run postal service (EL.TA) as a prerequisite for its inclusion in the portfolio in a soon-to-be-established “super fund”.
Otherwise, TAIPED warns, EL.TA will be put on the selling block.
The request, contained in a letter to EL.TA’s newly appointed board, will reportedly be delivered on Monday, and will emphasize that if “misguided” management decisions aren’t overturned and measures to restructure immediately taken, then EL.TA risks losing liquidity and sustainability.
The move, on the part of the privatization fund, brings to the forefront a clash between the fund’s chairman, Stergios Pitsiorlas, and the relevant transports and infrastructure minister, Christos Spirtizis, whose portfolio includes the postal service.
Spirtzis, a Cabinet member in the current leftist government known for his often high-profile opposition to certain privatizations, has also publicly supported the continued course of EL.TA as a state appendage.
The privatization fund’s focus turned to the previously loss-making Greek postal service after its new management rolled back expanded opening hours at 40 branches, posted unsatisfactory results in a partnership with Chinese shipping company Zhejiang, delays in its traditional postal services as well as foot-dragging in collecting debts owed by the Greek state.
For instance, EL.TA’s “traditional” postal services were estimated to cost 50 million euros per year, based on studies, yet the Greek state over the 2014-15 period alone owes EL.TA 100 million euros.
According to unconfirmed reports, the ministry’s leadership is not only uninterested in paying off the state’s debts to EL.TA, but also wants to eliminate the privatization fund’s involvement in the postal service and downgrade the 10-stake held by systemic lender Eurobank, which acquired the shares when it purchased the “healthy parts” of the EL.TA-affiliated Postbank.
