Greece’s Bold Move: Introducing Its First Sovereign Wealth Fund
In a groundbreaking announcement, Greece revealed plans to establish its inaugural sovereign wealth fund aimed at selling state assets that remained unsold during the country’s debt crisis. Finance Minister Kostis Hatzidakis shared that the fund would kickstart with an initial capital of 300 million euros, channeling proceeds from multiple asset sales into green initiatives, infrastructure, and cutting-edge technology.
Partnering with globally renowned investment firm BlackRock, Greece is determined to revolutionize its financial landscape. The nation’s privatisation agency HRADF and bank bailout fund HFSF are slated to be amalgamated into the Hellenic Corporation of Assets and Participations (HCAP) to oversee a diversified portfolio of state-owned enterprises and investments.
The fruitful collaboration between these entities has already generated over 10 billion euros through asset sales and bank stake dispositions during Greece’s tumultuous period from 2010 to 2018. Hatzidakis acknowledged their pivotal role in steering the country towards fiscal stability and prosperity.
Looking ahead, HFSF aims to divest its remaining shares in Greek lenders, including a significant stake in National Bank and Attica Bank by the year-end, ensuring a more streamlined and efficient financial sector. Furthermore, Greece is committed to modernizing its public transportation and postal services by introducing greater flexibility in hiring practices and compensation structures.
