The main power utility PPC’s creditor banks will consider demanding additional guarantees if the corporation’s bailout-required sale of lignite units is seen endangering its ability to service loans, a source closely following the developments has informed.
This action could be taken early during the process, when the units to be sold are split from the corporation, or later on, towards the end of the international tender, the source added.
PPC’s creditor banks are expected to scrutanize the sale’s related draft bill, expected to be submitted to parliament this week, and then start exercising their rights once two utility subsidiaries are established to carry respective lignite unit sale packages representing the country’s north and south.
Last year, when IPTO, the power grid operator, split from parent company PPC, the banks had set additional terms for a joint 200 million-euro loan. Terms included a demand for a share of future revenues.
As part of their monitoring effort of PPC, Greece’s main banks and the European Investment Bank (EIB) will be informed of a new business plan currently being prepared for the power utility by international consulting firm McKinsey.
This business plan will need to be adjusted to strategic demands required by Greece’s new super privatization fund. PPC’s chief executive Manolis Panagiotakis has been informed of these demands.
In 2019, PPC will need to cover a 1.3 billion-euro loan extended by Greece’s main banks, a 350 million-euro bond payment, as well as a 200 million-euro loan payment to the EIB.