Greece has announced the extension of a deadline for the sales of its railway operator and its rail maintenance company in an effort to give potential investors additional time to prepare offers. The country’s privatization agency made the announcement amidst accusations that the privatization process agreed during Greece’s bailout program have failed to bring in the level of revenues expected because of political resistance bureaucracy and capital controls. Uncertainty over the agreed pension, tax and other reforms agreed under the terms of the bailout have also lagged, increasing investor concern over the long-term prospects of the country.
The country’s leftist-led government halted the sale of the train operator (TRAINOSE) with other privatizations when it came to power early last year but relaunched it in January as part of an international bailout agreed last summer. The deadline for initial bids for TRAINOSE was due to end on Monday but the privatization agency has now extended this to April 15. As a result, the date for binding bids was also extended to May 31 (from April 26). Among the expected bidders for TRAINOSE are China’s Cosco, Italy’s state railways IPO-FERRO.MI and Russia’s RZD. Greece’s privatization agency also pushed back the deadline for the submission of binding bids for railway maintenance company ROSCO by two months to May 31 from March 28.
