Greece Announces Sovereign Wealth Fund, Public Service Reforms

Athens, June 18 (Reuters) – Greece unveiled a multi-faceted plan on Tuesday that includes establishing its first sovereign wealth fund and revamping key public services.

Building Wealth for the Future:

• The government will create a sovereign wealth fund to manage and sell remaining state assets, including property, ports, and public utilities that weren’t offloaded during the debt crisis.
• With an initial investment of €300 million, the fund will channel proceeds towards environmentally friendly projects, infrastructure development, and cutting-edge technologies.
• Financial giant BlackRock will lend its expertise in shaping the fund’s structure.

Streamlining Public Agencies:

• Greece plans to consolidate its privatization agency (HRADF) and bank bailout fund (HFSF) with the existing Hellenic Corporation of Assets and Participations (HCAP).
• This merger aims to streamline the management of state assets and privatization efforts.

Modernizing Services for the Public:

• To enhance efficiency and attract a broader talent pool, Greece will modernize its bus and postal services.
• This will involve permitting state-run operators to hire private sector employees and offer them flexible pay structures.

These reforms represent a multi-pronged approach to utilizing un-privatized assets for economic growth, boosting public service efficiency, and attracting skilled professionals.