Privatisation -- Greek style

Or, how to raise money even when the crisis is hitting you hard and you have no money: recruit a crony as a contractor to make sure the money does not go astray!
God forbid that we waste money on education, pensions, improving public facilities, or public health...

Incredulous?
See below:

The Greek Socialist government has announced its decision to embark upon an extensive privatisation and assets sell-out programme, expected (by said government) to raise Euro: 50 billion by 2015. The figure was revised to "between 15-50" billion later.

Two ministries (Finance & Commerce) contracted out this job to NBG Group and CC&C advisors.
While NBG is Greece's largest banking concern and has been around for a while, CC&C advisors has the obvious advantage of not having been around for any while; it is a 1 GBP, same day on-line formation, company formed 14th December 2010. CC&C does not exist in fact.

CC&C is a 1 pound company formed by one Christopher Uregian, researcher at the World Bank. Chris exists, of course! Presumably one of the Cs in CC&C is for Christopher; the jury is still out on the remaining two.
This is a relatively recent photo of Chris:
Christopher has 4 years working experience. Christopher entered a quickie company in London and signed on with the Greek State as a contractor.
He will receive Euro 50k as consieration for his services, as well as a "bonus" from any success based on his services... not bad for a young researcher at the World Bank.
One of Campion's more successful graduates, to be sure!

Of course, it is useful if your family lives in Greece and owns an investment and estate development firm, ARIS UREGIAN... and a financial broker's license.

The point ιs, of course, that Chris is NOT at fault in any way. On the contrary he has an excellent assignment to show on his resume, following which he may negoatiate a better position at WB or back home.

The same cannot be said of the inane dignitaries that plague the country.-


This is a photo of Christopher's firm's (CC&C) declared headquarters in London England:Of course, no company of that name is known to inhabitants of that building -- let alone the first floor of that building where the company offices are declared to be.

Leather Lane, a well-known and busy business abode is seen below:
Just the place to set up office if you are to consult a country on privatising its assets.
Obviously, Christopher, entered a quickie company in London and signed on with the Greek State as a contractor.

Isn't it good to know that Greek politics have turned over... the same leaf!

Many Greeks deserve better -- not Greece...

Most, in fact.

Until recently, Greece was a country that was doing OK on borrowed money and little real income. A pretend country, Greece operated as a facsimile of a real country -- i.e. as if it actually had infrastructure, national consensus, a sense of national identity, communal values, etc...

Greece was very much a large corporation with its major shareholders (a score of business families) & Board (politicians and sundry, around 10,000 strong) which played at being a country...

Then the going got tough and the Greek government and Administration fell apart -- because it never was there for tough times in the first place. It was never, nor was intended ever to be, tough "enough".

The crisis blew the pretence sky-high.

The crisis also left 9.5 million odd Greeks in the middle of a wasteland.
These are the normal people, little people, who thought they lived in a normal country, who had their doubts, aspirations, hopes, etc...

• who saw their property prices rise and smiled at the easy way they made money out of gran's old piece of in the village;
• who did their best to avoid tax;
• some of whom also evaded tax (apart from the country's quasi owners: lawyers and doctors).

Now, the burden of paying for other peoples' money has fallen on those Greeks who cannot -- or know not how to avoid tax. So they pay more. Even retirees saw their pensions cut.

Greek politicians increased their income.

Really Greeks deserve better -- even if their official State does not.

Thems Greeks must be crazy!

Greece's present socialist government never ceases to surprise:
instead of clamping down on corruption or, at least, focusing on tax EVASION, it continues to attack the disposable income of those people who are taxed -- i.e. people who actually declare their income!
In other words, Greece's socialists are sinking the socialist state's hand deeper into the same pockets and not at all in any other pockets!

I don't get it: why don't they ask Greece's rich to contribute -- rather than bandy hooh-ha and hot air about getting "the bad guys", which they never will. There are probably only a few really bad guys in Greece... i.e. open, large-scale tax evaders. Excepting (allegedly) corrupt civil servants and Greek politicians of course.

In its latest recipe geared at pouring income into the state coffers, further taxation is planned for people earning over Euro 60k...
...Which means that people actually declare their earnings are called upon to carry more weight!

With less disposable money,and in many cases lower salaries, it should come as no surprise to Greece's Socialists that state income from indirect taxation, consumer spending, as well as direct taxes is going downhill: 22% lower in 2011 than the same period in 2010.

So what is the savings recipe for executives?

Simple:
a) make sure your declared income falls below 60k -- it makes no sense to waste corporate added-value (i.e. money your sorp will give you to hand over to Greek authorities) on Greek socialists playing at statesmen;
b) pack your bags, leave family in Greece for the time being and get a job less than 2hrs plane ride away (Bulgaria, Cyprus, Turkey, Albania, MEast),
c) pack your family bags and move your family to a normal country.

Here is a link to an on-line ticket office to reserve your aeroplane seats: aeroplanes

Modern Greece: the big heist!

Let's simplify, curt many corners, and reach an immediate conclusion: modern Greece seems very much like a country set up as a vehicle for making money for nothing. There is a song money for nothing -- but I do not think its composer was thinking of Greece.
However, as there is no free lunch, the unsuspecting inhabitants of the country are the ones to foot the bill.

Consider the following:
* out of of the very first two loans subscribed in the name of the new State, less than 10% actually reached the country coffers and this was spent on rifles and ammunition. The rest was siphoned away at the source and neighbouring pockets.

* Since the beginning, the country always lived on loans that overwhelm its capability to service them; indeed the actual terms of the loans up until the late '70s are so injurious they seem to have been generally indifferent to the receivers. As if the objective was, get the money and run!
Or, just as credibly, "who cares, we're not going to pay it back anyway!".

This plan seems to have counted on the indigenous population's having an infinite capacity for paying back loans. Not very kind to the people who actually justified the declaration of modern Greece as an independent state -- and made the heist possible.
The people have not had an infinite capacity for apying back loans and the country has been bankrupt 5 times (including the present grey bankruptcy). Greece has declared bankruptcy 4 times in the past. As a result, the inhabitants of Greece have been impoverished by loans servicing for most of their history since the creation of modern Greek state following the revolution of 1821.

No surprise, there is not much of a middle class to speak of in Greece. Greece is a neo-feudal society.

Following a short honeymoon, the result of Greece's joining the EU, the country is now facing a major crisis again. Politicians are openly ridiculed, yet they all stick to their guns. Moral fibre is very weak. Corruption is rampant and the gross indifference of Public administration to anyone and everything is overwhelmingly obvious whenever you speak to any Greek civil servant.

In a similar vein: public services operate at scientific minima.

This is a pity. Europeans and, to an extent, many Americans, heralded the return of Greece to independence. Lots of money and even lives were lost to the cause of Greek independence.

Yet, still now, the heist lives on.
At the wake of raising an alleged Euro 50 bill through the sale of State owned property, a man named K. Nikolopoulos and his Lamda SA, are the primary consulting contractors. He has been around since the late '80s, just as active during the summer Olympics (2004) as during the negotiations and the construction of Athens new airport.

What a coincidence: The man is member of the Sultan's privy council! Only that in Greece, there are 2-3 Sultans who alternate in power. Let's make the above statement: the "Sultans' privy council".

Of course, the object of his trade -- real estate -- is what warrants his choice; R-E is the only real value in Greece and lots of money can be made while Publicly owned property changes hands...
The man is a very respectable executive and, of course, he is not alone in this story.

If only Dashiel Hammett were here to provide us with a happy ending!

Greece's CFO changes

There is to be a replacement, it seems.
This is the current Minister of Finance, and this is the replacement.

Alleged replacement.

"Not that it will make any difference", claimed a top executive at the Greek ministry of finance, yesterday.
"Just that George (the current) is presentable while the other makes you cringe -- the way he acts & the things he says".
He added, "It's time I pull out my other passport!"

The alleged replacement is credited with having discredited Greece's national security service, "EYP", when he was interior minister, to a US ambassador in Athens:
“Chrysochoidis said bluntly, “EYP is nothing.” It does not serve its mission of protecting Greece and in fact is dangerous to national security because of its many shortcomings, not the least of which is a unionize d labor force. As a result, Chrysochoidis declared, he intends to “collapse and rebuild it” via a draft law that is in the process of being drawn up.”

The draft law is still in the works.

What Chryso probably meant and means by "shortcomings" is that many EYP employees do not vote for the Greek Socialist party.

Ultimately, the top functionary's idea to use his other passport may be very wise!

Japan, off the north-east coast, 5.46 a.m. 11th March 2011

This is Sendai airport, 11th March 2011, at 5.45 am:And this is Sendai airport, 11th March 2011, a short tsunami later:Many thanks to ABC Australia for the images.

Just one moment in the life of....

I think I've Got It!

Greeks vote for their politicians according to who they know and what they need to be done.
Speculation on the chosen politician's ability to get things done also plays a role -- we mean of course, the politicians' efficiency once they actually accede to power.

Which means, politicians are chosen primarily and voted into office on the strength of their readiness to serve voters' individual /family /corporate and whatever purposes -- not the country's.

In other words, Greeks recruit their politicians to act as "fixers" -- i.e. in to help get the voters' job(s) done.


It should come as no surprise therefore, that when asked to actually govern a country and manage situations, these same politicians are clueless. Incompetent.


It's as simple as that!




Remember the cardinal rules of working / investing Greece:
Without connections to help you cut corners, doing anything in Greece other than holidaying is an exercise in patience and perseverance. For example, ("fast track") licensing for an energy-producing company can take years.
The simple task of registering with authorities and obtaining the obligatory social security papers, the medical cover, and the medication book (yes, a book) can be an ordeal requiring three half-day trips to as many different administrative offices -- as the (Greek - German nationality) Human Resources director of a major retailer discovered, 8 months ago.

Licensing a restaurant can take many months of waiting (in a operational venue!).

Think of what major investing is like -- and, worse, how vulnerable the investment can be if profits are at the mercy of administrative and political manipulations.

Whereas, if one is connected, these same tasks become plainer sailing. As to investments, what better guarantee against a hungry and hostile administration than a politician -- better still, the investor can hope for some public sector business as well.

Such gross incompetence is a statistical impossibility

Greece's socialist government leaves so much to be desired, is so much of a dunce, has displayed so much incompetence, the matter smacks of statistical improbability!

Apart from the Soviet communication tactics, that is, which are still going strong even if their effectiveness has weakened.

Unemployment is 15% (17% unofficial), income is down, retail T-O is -7%, latest GDP is -6.6% on annual basis, labour legislation continues to be restrictive, the Greek state is recruiting. None of the so-called scandals have been seriously investigated, so there is no retribution.

Euro 0.85 bill is to be distributed to the Labour Office for temporary respite. Positions in many state owned companies and organisations (e.g. hospitals) are now limited to only confirmed Socialist party "fighters" as activists of any self-professed left-wing inclination are called...

A new Environmental Protection bill falls short of its title -- but helps owners of land.
Protecting the environment Greek way means you can build anywhere, anything, as long as you have 4 "stremma" (1 hectare = 10 stremma). Real estate is still the only real value in Greece, producing until recently real added value, so any effort to curtail its reach can only be doomed.

Greece's Socialist Prime Minister, Mr Geoff Papandreou has stuck by his government chosen among his friends
and acquaintances who, one must admit, have made a mess of colossal proportions.

Presumably, these people are no more incompetent than other people -- so, what gives???

Greece's Sovereign Debt, season 4: Time to Pack it in?

Greece has a new tax & fiscal law every year. In other words, doing business in Greece is always full of surprises, with changes occurring at least once a year -- EVERY year.

The country's socialist government has finally passed a law proposing very strict rules against tax evasion, including incarceration with summary process (of law presumably). This applies to private individuals for personal income tax & VAT as well as CEOs, for corporate tax & VAT, etc.


This is surely to be lauded; stricter rules against tax evasion are long overdue in this country. Unless more things change however, it seems that it is time for expatriates and would-be investors to start packing their bags, pronto.


There are four reasons why this new law, welcome as it may be in principle, may be put the definitive and proverbial spanner in the works:

1) Trustworthiness
In a country where, by its representatives' admission, the rule of law often depends upon whom you know, the cost of, say, a mistake in ANY tax related issue, made by ANY of the stakeholders, can mean that on Friday night, CEO's kids will have to run to the closest gaol to see their dads until the whole thing "is sorted out". How confident are you that it will be?

What is the price of uncertainty?

2) Corruption:
According to Mr Geoff Papandreou, Greece's Socialist Prime Minister, "there is a lot of that around". And we believe him; and many people having built a house, filed for a license, cashed in a tax return, etc, can actually corroborate this through personal experience...
YET, the Greek government continues to protect the taker, and penalise the giver. Strict rules apply to abbetting Were we to attack corruption, it would make sense to exculpate the giver and penalise the taker, surely?

3) Uncertainty:
Doing business in Greece has just become more complex and more uncertain. We all like the rule of law and the new tax law is no doubt welcome in this respect. But it does not come with a loosening of rigid bureaucracy -- in fact, quite the opposite.

4) Justifying recruitment:
Despite the 7% fall in real GDP, Greece's socialists still bow to the country's restrictive labour regulations: flexible employment is so regulated that temporary, agency work is proscribed. One has to JUSTIFY recruitment in no uncertain terms upon the employment contract -- or the employer and the agency are subject to steep fines. Justifiable temporary or other wise flexible employment seems to be too complex a matter.
No-one but the most courageous employ temps any more in Greece! Most prefer to downsize.

With "real" (i.e. beyond "Greek statistics") unemployment running at 17.1% according to Ministry of Labour sources, one completely fails to understand:

Why???

Why, for goodness sake, do Greeks in power not liberate their employment market? What is there to gain by abetting grey & black labour -- which sidesteps regulations of course -- and aiding unemployment?

Understanding the reasons justifying this apparent paradox is beyond me.

Greece's sovereign debt. Season 4: the final season?

F O R S A L E --- S P E C I A L D E A L S, P L E A S E L O O K I N S I D E!

The Greek government's idea / promise / ad lib / to raise Euro 50 million by selling off real assets, constitutes a partial solution, short-term, to the country's cash flow imbalances. So we found a one-off source of working capital.

But the question still remains: what's the plan, longer term?

How is Greece's sovereign debt to reduce to workable levels? Where is the money to come from -- other than from friends and neighbours?

In 2010 Greece saw its economy reduce by 6.6% in (very) real terms.

The tangible added-value produced in Greece is not very high and 60% of the country's GDP is in the services sector with a ominous-looking 67% of that, accounted for by the Greek Public Sector.

Shipping is one sector where Greeks -- i.e. Greek individual shipowners -- are global leaders. But some companies are switching flags... following Louis Cruises move to Malta, no major cruise ship operator is left under the Greek flag.




It is time to say: time for global brainstorming!

Greece's sovereign debt, Act 4, Episode 1

In which Greek government officials inform the IMF-EU reps of its intent to market Public Assets to raise Euro 50 mill; said reps announce this inter alia in their customary press conference;
following the press conference, Mr Horseshoe, the Greek government spokesman (yes, there is one!), pretends to strongly resent this reference to a garden sale of Public Assets; the IMF-EU Rep Office agrees and normality is restored amidst cheering from Greek television buyers for the free Weekend content.

And all is well.

Meanwhile, a building belonging to the Greek state in Brussels, has been on the market for some time now; it has not attracted any firm interest -- for a very tangible reason: there is no interlocutor i.e. no physical person to speak to about buying the building!
Mr Geoff Papandreou, the US-Swedish prime minister of Greece is constantly changing the boss of the Greek Agency for the Exploitation of National Assets; no-one else is empowered to sell the building...

In case you were interested in it...

Siemens Greece, redux: should Greece have only paid lip service?

The (ill)famed Mr Christoforakos, so famed for allegedly having authorised, or failed to stop, kickbacks from the corporation he headed to Greek government officials, politicians and sundry, was not a king.

But, in his own way, he was important: he was, in the wake of the 2nd millenium, one of Siemens Corporation's Regional Directors. In this respect, he was also that Corporation's youngest Director.

This is no small deal. Mr Christoforakos' region was large indeed and comprised much of the old Soviet Union -- a promising (if troubled) market if there ever was one!

Add to this that the (ill)famed Mr Christoforakos is a Greek-German citizen of Greek origin.

In all cynicism: doesn't all of the above indicate that it's good to have one of our own at the head of one of the world's largest corporations? Or, that's what I have thought if I were in the Greek politicians' shoes, politicians worried more about their country's and countrymen's fate than about their personal finances...

Let's say... "you won government contracts on the strength of generous kickbacks -- how about you make a major investment in Greece? And we'll all extol your Corp's as well as your personal virtues!"

Isn't this delectably politically incorrect!!!