A Country Stripped Bare

bare tree

Assetstripping  nounthe practice of taking over a failing company country at a low price and then selling the assets piecemeal before closing the company country down.

Acting under orders, the Greek government has set up a “fund” which it uses to sell significant government real estate (such as Ministry buildings and even police stations). It then leases the buildings back at returns of 10% per annum with guaranteed tenancies for 20 years.

The Hellenic Republic Asset Development Fund (HRADF) announced on May 13th  (press release) that it has signed a deal selling off a portfolio of 14 state-owned properties to Eurobank Properties. The total amount paid for the properties comes to 145.81 million euros. According to Eurobank the 20-year leasing agreements will generate revenue for the bank of 14.05 million euros per year.The law requires that the 14.05 million euros income per year must go towards paying off Greece’s debt. Not a cent will go towards health or education or towards the benefit of Greek people.

Within ten years Eurobank will have recouped its initial investment and by the time the lease expires it will have doubled its money. 

Now, that is how you asset strip a country bare.

See full article from The Press Project here

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