Agreement for sale of Greek railways operator TRAINOSE to Italian railways signed

The agreement for the sale of 100 percent stake in Greek railways operator TRAINOSE to Italian railways Ferrovie Dello Stato Italiane for 45 million euros (48 million U.S. dollars) was signed here on Wednesday, Greece's privatization fund announced.

"The share purchase agreement was signed following the approval of the transaction by Greece's Audit Court, its completion is subject to the competent EU authorities' approvals," according to a press release by the Hellenic Republic Asset Development Fund (HRADF).

"The closure of the European Commission's State Aid dossier on TRAINOSE's debt to Greek railways organization OSE is pending, amounting to more than 700 million euros," the fund said.

Should the sale not be concluded, TRAINOSE would have to return the 700 million euros in state aid to the EU, which would most likely lead to its collapse, according to financial experts in Athens.

Addressing the signing ceremony, HRADF chief Antonis Leousis welcomed the completion of the privatization of TRAINOSE four years after the launch of the relevant international tender process, expressing confidence that the Italian railways "will help create a major provider of railway services".

The sale of the loss making TRAINOSE was part of the Greek privatization program launched in 2010 which has suffered many delays.

Greece aims to raise some two billion euros from privatizations during 2017, according to the state budget ratified by Greek MPs in December.

In 2016 Athens raised only 500 million euros out of the initial target of 2.5 billion euros. (1 euro= 1.06 U.S. dollars) Enditem