What Assets Did Greece Just Hand Over To Europe: "Airports, Airplanes, Infrastructure ...

Zero Hedge ^ | 07/13/2015 | Tyler Durden

[SeekAndFind]

The Simpsons had it right all along:

 

With the provocative and dramatic Greek "time out" language pulled from the final finmin and summit draft language, the two most humiliating aspects of the latest extend and pretend "deal" for the Greek people will be the return of the Troika's (surely we can call it the Troika again as part of the Greek capitulation) IMF mission to Athens, and the escrowing of some €50 billion in  Greek assets in a liquidation fund.

Granted said fund will not be domiciled in Luxembourg as was originally envisioned, but Europe will still have control and first refusal rights over what are technically Greek properties, in the process Athens handing over about 25% of Greek GDP (and sovereignty) over the Brussels.

What are these assets? For the answer we go to the horse's mouth, Jeroen Dijsselbloem, who laid out the holdings of the proposed Greek privatization that would be sold off as follows: "it still is going to be an independent fund, valued at €50 billion which can be airplanes, airports, infrastructure and most certainly banks.”

Bloomberg quotes the Eurogroup finmin president:

They will be brought in with the target to privatize those in the coming years, but we will take our time for that.

 

We then hope for proceeds of EU50 billion, but that will be clear later.

 

The banks first have to be refinanced from this aid program, but after that I take it that they’re worth money and then we can sell them.

 

The proceedings are aimed at lowering Greece’s national debt.

In other words, Greece will be liquidated piecemeal to repay creditors. In even other words, the proceeds from the Third Greek Bailout will not only not reach the Greek people, but Greece will have to sell itself in pieces to top off the creditors' funding needs.

Dijsselbloem concludes: "That is good for Greece, but also good for us. We are in the end the ones from whom the money is borrowed."

It was not exactly clear why this would be good for Greece.

So for all those curious, here are some of the "assets" that already have, or soon will hit Ebay.

 

The only caveat: when (not if) Greece defaults again, and it is time to collect on Europe's secured DIP loan (which is what the Third bailout really is) collateral because not even the French socialists can push for a fourth bailout, good luck trying to repossess Aegean islands or the Santorini ferry terminal.

Oh, and for those struck by a case of deja vu, the €50 billion privatization "plan" is nothing new: it was first proposed by the IMF in 2011. This is what happened next:

What does the IMF say now about this latest privatization proposal? "Not realistic."

#EuroSummit has doubts over 50 bn€ privatization target. IMF don't think it's realistic. - EU source

— Jarno Hartikainen (@JarnoHa) July 12, 2015

Which may be a problem for Greek banks since as the summit deal envisions, half of the privatization "proceeds" will go to recapitalize Greece's insolvent banks. Proceeds which the IMF projects will be about €2 billion until 2018!

 This is a problem because with this implicit admission that the Greek financial sector will effectively never receive the needed funds to remain stable, any ELA increase by the ECB will be promptly used by Greek depositors to yank as much money as they can, awaiting the next weekly dose of monetary generosity from Mario Draghi, as both capital controls and the Greek bank run remain a permanent fixture of Greek daily life.

[SkyDancer]

[G Larry]

Was it the olives?

...or just the pits?

[ErnBatavia]

We have friends who attended a wedding on one of the islands last year...the hubby referred to Greece as “Tijuana with a view”.

[Red Badger]

For Sale:
One Used Up Socialist country.
No reasonable offers refused.
Cash only.
No dealers, please.................

[Red Badger]

Tijuana without the smell..................

[Oldeconomybuyer]

Cluster.

[hanamizu]

I recall that early in the 20th century, Europeans had a problem collecting debts from certain Central American/Carribean nations. They sent warships to collect the debt. We construed this to be a violation of the Monroe Doctrine and said we’d collect the debt for them. We sent the Marines in to seize the custom houses and used their customs duties to pay off their debt. (I assume the debts were paid). At some point will Europe seize that tax-collecting power of Greece to force payment of Greek debt?

[The Antiyuppie]

That socialist leader’s negotiating skills are right up there with the skills demonstrated by the Obama Administration. The only people Obama’s negotiators can get the jump on are Republicans, which, of course, isn’t saying much.

[Wolfie]

It’s an old fashioned Mob bust-out.

[omega4412]

To add a bit to that from I think one of Max Boot's books... The US took over the customs houses and sent half the duties to the creditors and half to the local government. Local government revenues went UP because the customs duties weren't being evaded or diverted into someone's pocket.

Has anything changed in the last 100 years? See Guzman, Mexico.

[MeganC]

I’d say that the European invasion and occupation of Greece is an inevitability.

[DesertRhino]

There won’t be an invasion. That’s beyond retarded. To do what? Stand there? To shoot retirees?
And who would invade? The Germans? The Gremans are horrified beyond the capacity for rational thought at anything that looks like a Nazi reenactment.
They’ll huff and puff, and well never invade Greece, or send their forces to Ukraine, or ANY such adventure.

Despite the fantasies of some, Germany as a military power is basically over.

[MeganC]

You forget that a European military force is still present in Kosovo about fifty miles from the Greek border. And to argue that the prospect of such an invasion is “beyond retarded” is to deny the fact that NATO invaded and occupied significant parts of the Balkans and in particular the strategic tin mine in Kosovo.

Also, there are currently 697 Bundeswehr forces deployed to the KFOR with a Bundestag mandated limit of 1850.

So much for that German horror at sending their troops into the Balkans.

[grumpygresh]

Just ask yourself. What would the mob do? They would take over water and sewer treatment facilities, electrical grid, transpiration, petrol storage and delivery ability to control internet/IT systems (they probably have that already). The EU probably also has control over police and military via appointments.

This makes Greece an EU colony and impervious to Russian support. All EU has to say is that it will pull the plug if you don’t cooperate. The Russians couldn’t come in and replace EU systems before Greece would collapse.

This should serve as a wake up call for the US. Globalists are doing the same thing here and if the peasants don’t comply, the globalist landlords will pull the plug and turn off the faucet.

A few islands would be nice.

[Redbob]

What absolute garbage, especially this:

" the proceeds from the Third Greek Bailout will not only not reach the Greek people, but..."

There ARE no "proceeds" from this, just a hoped-for payback of a small portion of the handouts the lazy losers in Greece have gotten from the rest of Europe over the years!

[Redbob]

"At some point will Europe seize that tax-collecting power of Greece to force payment of Greek debt?"

The dirty little secret is the averaage Greek has found he can pay bribes to local officials instead of paying his taxes.

[Redbob]

New Jersey on the Mediterranean...

[minnesota_bound]

Kinda like going to a pawn shop. Greece is selling itself like Chicago and Los Angeles and I guess other liberal cities bit by bit. They have already been selling politicians for quite awhile.

[madconservative]

“horrified beyond the capacity for rational thought”?

Please don’t take offense, because none is meant, but have you recently watched Ghostbusters? Isn’t that what Egon says to Venkman regarding the marshmallow man (if I recall correctly he may have said “terrified” instead of “horrified”, but the phrasing is very similar). I sometimes catch myself sneaking in phrases from my favorite movies subconsciously; perhaps I am just projecting.