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UPDATE 1-Greece to conclude 1.2 bln euro airport deal with Fraport this month
April 4, 2017 / 1:36 PM / 8 months ago

UPDATE 1-Greece to conclude 1.2 bln euro airport deal with Fraport this month

(adds detail, Greek government statement)

ATHENS, April 4 (Reuters) - Greece will conclude a 1.2 billion euro ($1.3 billion) airport deal with a Fraport-led consortium later this month, signalling the country’s biggest privatisation venture so far under its international bailouts.

Privatisations have been a key pillar of Greece’s three international rescue programmes since 2010 but have reaped only 4 billion euros so far, due to bureaucracy and political and union resistance.

“We are in a position to inform Greek people that within 15 days ... the deal will be wrapped up and the Greek state will collect 1.2 billion euros,” the government said in a statement.

Fraport Greece, a joint venture between German airport operator Fraport and Greece’s Copelouzos Group, signed an agreement in 2015 to operate 14 regional airports on tourist islands, including Corfu and Santorini, for 40 years.

Wrapping up the agreement will help the cash-strapped nation meet this year’s target for privatisation receipts.

An EU official said last month that Greek privatisation proceeds were expected to reach 2.4 billion euros this year and 1.9 billion euros in 2018.

Last month, Fraport Greece secured a loan of about 1 billion euros from a consortium of lenders to help fund the deal and has said total investment in the project will top 1.4 billion euros. ($1 = 0.9383 euros) (Reporting by Angeliki Koutantou, editing by Pritha Sarkar)

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