Govt, Troika Discuss Future of Defence Industries, Larco
Friday, 27 September 2013
The Greek government and the Troika of lenders are holding talks on the future of the country’s defence industries, focusing on the viability of the military arm of the Hellenic Defense Systems and the Hellenic Vehicle Industry (ELVO), the Athens News Agency-Macedonian Press Agency reported.
An agreement for the restructuring and privatization of the two defence industries and Larco is among the prior actions necessary for the disbursement of a one-billion-euro loan by the country’s creditors.
“We have hopes for preserving part of the factories,” a senior finance ministry official told the news agency.
He stressed that if the government could manage to convince the Troika over the viability of the Greek plan, then the European Commission could be more flexible in its demand for the return of state subsidies offered to the two enterprises, worth around 1.2 billion euros.
The competition authority of the European Commission has said the state subsidies were illegal, demanding their return.