3 Jun 2010

Public sector sale announced in Greece

7:20 pm on 3 June 2010

Greece has outlined plans to part-privatise a number of publicly-owned companies in an effort to raise funds to boost government finances.

The government plans to sell minority stakes in its state-owned rail company, the postal service and in two water companies.

The plans form part of the Greece's austerity measures, designed to cut borrowing and reduce its debts.

The BBC reports the plan is expected to raise at least 1 billion euros ($US1.2 billion) per year.

Further revenue will be raised through extending the monopoly of the state gambling agency and extending the regulation of online betting.

Finance minister George Papaconstantinou says the aim is to protect public services, but in a more sustainable manner.

Part privatisation of parts of the Greek public sector was agreed as part of a 110 billion euro bail-out by the EU and the International Monetary Fund, which was announced on 2 May.