Greece resists efforts to renegotiate regional airports deal

Airport operator Fraport, which is controlled by the German state of Hesse and the Frankfurt city utility, is paying 1.2 billion euros ($1.3 billion) for a 40-year concession to manage 14 regional Greek airports. The airport deal is the first major transaction under the privatization program.

In response a Greek government official was cited by Kathimerini as saying that any renegotiation of the deal must be comprehensive and not focus exclusively on the issues raised by Fraport.

The rescue loan is crucial for the country as without it, Greece is likely default on its debts.

But the ratings agency warned that the risks to the bailout’s success remain high. (SOUNDBITE) (English) SENIOR FX STRATEGIST AT RABOBANK, JANE FOLEY, SAYING: “Certainly patience with Greece has run dry…It is a very hard situation, very hard to know yet if is irreparable, but the fact that we have a third bailout here suggests that relations could improve”.

This came as German MPs gave their approval for a third bailout, with 454 voting in favor and 113 against, along with 18 abstentions.

Separately, the government slightly relaxed its restrictions on banking transactions, allowing small amounts to be sent overseas for the first time in about two months.

The finance ministry’s amendments include allowing Greeks to send up to €500 overseas per person per month, and allowing up to €8,000 per quarter to be sent to students studying overseas to cover accommodation costs.

It is the first privatization announced since eurozone ministers approved on Friday a massive new bailout for debt-laden Greece.

The German-Greek consortium was named preferred bidder for the suite of concessions in November last year, but the deal was frozen after the leftist Syriza party won snap elections in January on an anti-austerity programme.

Tsipras was meeting with members of his financial team on Tuesday, but the government has said any announcements on political developments will be made after today, when Greece must repay a debt for which it needs new loans.

Greek Prime Minister Alexis Tsipras is also expected to call a vote of confidence this week.

Decisions would be made in coming days, she said.