Foreign Investors Making Comeback in Debt-Stricken Greece

World | February 26, 2013, Tuesday // 17:17| Views: | Comments: 5
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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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» To the forumComments (5)
Ivanko - 27 Feb 2013 // 02:32:19

And Seedy, that 10% of Great Wall .. It wasn't Djankov or Borisov who brought that in.

Ivanko - 26 Feb 2013 // 23:42:37

Seedy, not my imagination seeing Chinese investments where there aren't any... (plenty of talks about it though, would be intresting to know if that Chinese bus builder already invested a single leva)

Lots of talks form the gentlemen of Gerb, only thing they did was build the highways where all plans already were made by others.

Those defending Gerb, tell me about their results.

I do not prefer BSP, it is just that there isn't anybody else ... Which is a shame. But still I think BSP would even score better then Gerb and their financial professor Djankov who took the country 10 years back. Fact.

Philippe - 26 Feb 2013 // 20:28:02

seedy, the Chinese have a 10% stake in that company. You can hardly call this an investment... The goal is to deliver cars with an EU-origin certificate that they can easely bring to other EU countries.

Seedy - 26 Feb 2013 // 20:11:52

So the Great Wall factory outside Lovech is just a figment of our imagination?

Ivanko - 26 Feb 2013 // 19:28:46

In Bulgaria they talk about Chinese investors (Borisov, Djankov, etc)

In Greece, where you have impossible unions, higher taxes, etc etc ... Well in Greece the Chinese are investing.

Fail Gerb, big fail. Time for people in charge who can do more then talk.

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