Tags: Greek | Islands | for | Sale

Greek Islands for Sale

By    |   Friday, 25 Jun 2010 08:44 AM

If you've ever talked about wanting to own a Greek island, now is your chance.

The Greek government reportedly has decided to try and sell, or offer long-term leases on, some of its 6,000 islands in a desperate attempt to generate some cash and repay its debt.

Mykonos, one of Greece's top tourist destinations, is one of the sites for sale, the U.K. Guardian reported.

Mykonos is one-third owned by the government, which is looking for a buyer willing to inject capital and develop a luxury tourism complex, a source close to the negotiations told the Guardian.

Potential investors are mostly Russian and Chinese, the report said. Investors in both countries are looking for a little bit of the Mediterranean as holiday destinations for their increasingly affluent populations, the Guardian said.

Greece narrowly avoided bankruptcy in May, using the first installment of a 110 billion euros ($135 billion) bailout from the International Monetary Fund and the European Union, which saw its common currency, the euro, hammered by the Greek debt crisis.

In return, the center-left government agreed to slash its budget deficit from 13.6 percent of gross domestic product in 2009 to under 3 percent in 2014 — through a painful combination of tax hikes and cuts in pensions and civil servant pay. For this year, the deficit target is 8.1 percent of GDP.

The reports of Greek isles on the block come just a day after Greece's finance minister voiced confidence that the country, despite its crippling debt and gaping budget deficit, will meet or even surpass its ambitious targets to slash spending and boost revenues by the end of the year.

"Have we won the bet? No," George Papaconstantinou said, according to the Associated Press.

"But we have well-founded hopes and are optimistic that, for the first time in many years, at the end of the year the state budget will achieve or even exceed the targets we have set."

Papaconstantinou said his optimism was based on figures showing a 40 percent deficit reduction during the first five months of the year, as well an expected revenue boost from increased consumer taxes.

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If you've ever talked about wanting to own a Greek island, now is your chance. The Greek government reportedly has decided to try and sell, or offer long-term leases on, some of its 6,000 islands in a desperate attempt to generate some cash and repay its debt. Mykonos,...
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2010-44-25
Friday, 25 Jun 2010 08:44 AM
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