[box] The sale of EYDAP will not only result in the loss of control of one of the principal resources of the country. The outstanding debts towards EYDAP from the public sector and municipalities are much more than the current market value which will be the sale price in the best case scenario. Reading thus the financial data for the first quarter of 2012 in conjunction with Mr Šemeta’s confirmation that these debts can become payable to the new owner, if he legally claims them, then we are talking about a pure colonial concession of a natural monopoly with some extra million euros bonus, a devastating deal, that has nothing to do with”free economy” and everything to do with an act against public interest [/box]
The current capitalization of the company in respect of the fixed assets is (473/324 million euros) are at 39%, compared with the company’s equity (473/857 million euros) at. 55%.This image indicates that the value of the stock and the overall market capitalization is not responding to the real value of the company. From the financial statements of the first quarter of 2012 the net profitability of 5 million euros after removing taxes of 2 million euros approximately. The company, through its policy on requirements, lends indirectly regional organizations and the Greek public values of about 388 million euros. From the company’s investment plans the eight years 2000-2008 the Greek Government dues to the company grants worth 322 million euros. In EYDAP the Public owns 61,33% and capitalization reaching 475 million euros, which means that the value of public involvement is in 290 million. This picture without further analysis shows the massive devaluation of the current value of the company. If someone bought it on the current value he would have bought it for free and would also receive a grant of 32 million euros (difference value caps and related grants).P.S. 10% of EYDAP’s share capital owned by ATE Bank SA has already been given for free to Piraeus Bank.
The above economic sata are based on the condensed published financial reports of EYDAP group on 31 March 2012
Here follows the translation in english of the alterthess relative article
If EYDAP is sold, the purchaser should receive within 90 days the huge uncontested debts of the State and of the municipalities that were created decades ago. This will happen if the new owner simply proceeds in “legal proceedings against the debtor,” according to EU legislation”, mentioned in a statement from the press office of SYRIZA.
“These are derived from the response to the relevant Commissioner for taxation and opposition against fraud,” claimed Mr. A. Šemeta, when he was asked by a member of EEC Parliament of SYRIZA Mr. Chountis in relation to the State’s debts and municipalities to “EYDAP”. Later the press office of SYRIZA added: “This reply is a bomb on the economics of government and the municipalities, which both owe 522 million euro (without supplements) to EYDAP. Simultaneously we can see the grotesque situation created by the sale of EYDAP that while they want to sell it for about 250 million euro, the new buyer from the first day can easily demand 522 million euro and surcharges that are confirmed debt. ”
On the question of Mr. N. Chountis which he notes that “the Greek government and municipalities are in debt to EYDAP (Corporate Body) hundreds of millions of unpaid invoices … and yet there are huge debts of the state to the company from grants for capital expenditures “, he asks the Commission to clarify whether the Directives 2000/35/EC and 2011/7 / EU can be applied to these debts. These Directives provided in case of late payment in commercial transactions between businesses and public authorities, the payments are demandable directly by the company and its shareholders.
In his reply Mr. Šemeta, emphasizes clearly that “The Directive 2000/35/EC Is abolished beginning from the 16 March 2013, by the Directive 2011/7/EU. Both Directives provide for the procedure of making out a practicable title to the creditor for the recovery of uncontested debts in case the creditor has commenced legal proceedings against the debtor. “
Here is the full question and answer:
Question N. Chountis
State’s debts to EYDAP (Corporation Body)
According to information the Greek State and Municipalities are in debt to EYDAP (Corporation Body) hundreds of millions of unpaid invoices.
Moreover, according to the same sources, there are huge debts of the State to the company from grants for capital expenditure in the period 2000-2010 and from the contractual obligation of the State to pay 60% of the capital costs related to the conservation, operation and expansion of water and sewerage system.
In view of the fact that in my question 008870/2011, the Commission responded that it had been given “detailed analysis of institutional characteristics and financial accounts of public corporations, as provided by the rules set out in the European System of Accounts (ESA-95) “, and given the Directive 2000/35/EC as reworded by the Directive 2011/7/EE taking into consideration the opposition against late payments in commercial transactions.
The Commission requests
Is it possible to inform us about the amount of debt the State has and the municipalities relating to outstanding invoices to EYDAP, for the outstanding grants and the amount of commitments for capital expenditure on water and the sewerage system?
For debts on unpaid services, the current legal framework provides, according to the Directive 2000/35/EC in addition to the reworded Directive 2011/7/EE considering the opposition against the late payment in commercial transactions, if the debts are due from the company and its shareholders.
Reply by Mr. Šemeta
The data for due debts of the Greek state and municipalities have been submitted to the Commission (Eurostat) by the Greek Statistical Authority at a mass level. This data has been submitted to Greek Statistical Authority by the Greek authorities and therefore should include any arrears of the state and municipalities in EYDAP (Water Supply and Sewerage of Capital). The Commission (Eurostat) does not collect data on arrears in individual companies.
The Directive 2000/35/EC is being abolished from the beginning of 16 March 2013, by the Directive 2011/7/EU. Both Directives provide for the procedure of making out a practicable title to the creditor for the recovery of uncontested debts in the case which the creditor has commenced legal proceedings against the debtor.