Five "hot files" are called to be managed this summer by the Ministry of Economy and Finance, according to Athens News Agency. It is a "difficult summer" for Kostis Hatzidakis, sources from the Ministry say, but add that the minister has a reputation as a "politician for the tough stuff" who is not afraid of political costs. The files in question, which are in the minister's office, are as follows:

1. Modernization of eight public enterprises of the State Treasury under the "PPP model," with the aim of improving service to citizens.
2. Agreement on the increase in the share capital of the Bank of Attica and its merger with the Pancreta Bank, which creates the basis for the establishment of the fifth banking pillar. It is noted that the agreement was signed last Thursday, and the relevant legislation has already been submitted to Parliament.
3. LARCO.
4. Greek Defense System (Hellenic Defense System).
5. the Greek public sector (ETAD) dispute with the Mantonanakis Group over the Grand Resort Lagonisi.

In particular:

The public enterprises of the State Treasury. The model for the model of the public sector in the public companies of the Greek state-owned enterprises in the public sector is the following:

• Greek Post (and its wholly owned subsidiary: ELTA Courier)
• ETH-Helexpo
• Central Markets and Fisheries Organization (CSO)
• Central Market of Thessaloniki (KATH)
• Corinth Canal Company (AEDIK)
• OASA Athens Communications (OASA and its wholly owned subsidiaries: dikes S.S.T.S., OSI and Stable Communications, STASY)

As the Minister has indicated, following the model that led to the consolidation and modernisation of PPC, the existing draft law provides for:

• The possibility of recruiting executives from the private sector through a simple procedure based on decisions by the CEO of each company. Until now, the procedure provided was time-consuming, extremely bureaucratic and a deterrent for anyone seriously interested in applying for an executive position in one of the subsidiaries of the Treasury. the term of office of senior managers (general managers and directors) is increased from 3 years to 4 years, renewable once.
• Flexibility in the remuneration of the executives of ELTA and other entities outside the General Government, while in the subsidiaries within the General Government (public transport and GAIAOSE), the remuneration will be in line with the EFKA model.
• More flexible procedures for the recruitment of their staff, with a limited but substantial role for the ASEP: checking the legality of the notice within 10 days and involving its member in the examination of objections during the recruitment process.

More flexible procurement, always in line with EU law. A procurement regulation is submitted to the ESMA, which will be able to give its opinion within 60 days on its compatibility with European law. Establishment of independent disciplinary boards without the participation of trade unionists.

BANK OF ATTICA

According to the Ministry of Finance, the deal that is coming rescues two banks with a pile of red loans that are the result of unfortunate and controversial financing in the past and with an uncertain future.

Attica Bank and Pancreta Bank, the ministry said, with the inflow of capital from the public and private sectors, are being transformed into strong pillars of the banking system, with increased capital adequacy ratios, operating under fully transparent private financial criteria.

It is indicative that the red loan ratio of Bank of Attica is currently 61.5% and of Pancreta Bank 53.5%, while after the implementation of the agreement, the non-performing loans of the new bank will be less than 3%.

LARCO

As reported in a ministry briefing, the production process of LARCO has been interrupted since last August, while on August 12, the workers' contracts should have been terminated, but there was an extension due to an appeal by the unions. Finally, the court decision came out on Friday and vindicates the government's plan. So the contracts should be terminated immediately and the workers should be placed in the support programmes of the DYPA. The tender was delayed due to appeals. If the obstacles are overcome and there is a private investor in LARCO, it will take time and investment to reopen the company.

GREEK DEFENSE SYSTEMS

The company, with accumulated losses of EUR 1.8 billion, had a turnover of less than EUR 5 million and losses of almost EUR 30 million in 2023. The deal with Czechoslovak Group (CSG) is expected to be finalised this week. According to the ministry, the NAC and the Czechs have secured €33 million from the EU for missile production and it is only a matter of days before the deal with the Czechs is finalised to join the NAC.

MANTONANAKIS

This is the long-standing legal dispute between the Mantonanakis group and the EBRD over the Grand Resort Lagonisi. According to Ministry officials, the State is threatened with paying several million from arbitrations it has lost. Negotiations have begun, but the issue, they point out, is quite complex and will delay any solution, if any.