Foreign Investors Making Comeback in Debt-Stricken Greece
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Foreign investors are reported to be returning to Greece as a result of the reduced labor costs, declining real estate prices, and the available industrial properties.
Foreign investors put a total of EUR 109 M in Greek bonds in H2 2012, and another EUR 27.6 M in January 2013, according to data from the Athens Stock Exchange cited by the Russian paper Izvestiya.
Investors are reported to be no longer concerned with a possible Grexit, i.e. Greece leaving the euro zone, and are now attracted by the reduced price of labor.
In 2012, the average hourly wage in Greece declined by 8.1%, and is expected to drop by another 6.1%, according to the European Commission.
Investor interest is said to be generated not only by Greek bonds but also by Greek industries and real estate, with a EUR 100 M investment of New York fund NCH Capital on the island of Corfu pointed out as an example.
Unilever is reported to be planning to transfer part of its production capacities from Eastern Europe to Greece, Rhone Capital is said to be negotiating for the purchase of S&B Industrials, and Philip Morris is said to plan to invest EUR 3 M in a Greek cigarette plant.
China is one of the largest foreign investors in Greece, mostly investing in maritime infrastructure and logistics.
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