Arab Today, arab today business defections hit greece amid recovery effort
Last Updated : GMT 07:47:21
Arab Today, arab today
Arab Today, arab today

Business defections hit Greece amid recovery effort

Arab Today, arab today

Arab Today, arab today Business defections hit Greece amid recovery effort

Athens - AFP

Efforts to restore investor confidence in Greece's struggling economy took a double blow this week when a major European bottler and a prominent dairy company announced relocation plans. Coca-Cola's second biggest bottler worldwide, Athens-based Coca-Cola Hellenic (CCHBC), on Thursday said it was moving its headquarters to Switzerland and looking to establish a listing on the London stock exchange. This followed an announcement by Fage, one of the country's main dairy producers and a major exporter, that it was moving its headquarters to Luxembourg "to better reflect the increasingly global nature" of its activities. Greek companies have been relocating to lower-cost neighbouring markets such as Bulgaria for years, a process accelerated by wave-upon-wave of austerity cuts and sales tax hikes over the past two years that have felled consumer demand. But in a week when German Chancellor Angela Merkel was in Athens pledging to support growth initiatives in return for further budget savings, the news wreaked havoc in Greece. "I cannot tell each and every company how to act, nor can I impose police measures to influence strategic decisions made by companies," Greece's normally mild-mannered Development Minister Costis Hatzidakis told reporters. "The climate has markedly changed compared to the past. I will not say it's all gardens of roses ahead of us...but if we can cover this final stretch, and with (EU) support, companies will not leave and others will start returning to the country," the minister argued. Hatzidakis has spearheaded efforts to get money pumping back into the country in the form of loans from the European Investment Bank. The EIB is to release some 1.44 billion euros ($1.86 billion) by 2015 to support projects that have ground to a halt such as highway construction. The money will partly cover debts owed by the Greek government to the private sector, now estimated at around eight billion euros. "In conjunction with austerity measures and structural reforms, which demand a great deal from the people, there must also be growth stimulus," Merkel told reporters this week after talks with Greek Prime Minister Antonis Samaras. "Therefore, we will support everything possible to provide Greece access to credit from the European Investment Bank," she said. With a sixth year of recession in sight and with little hope of winning a decades-long battle against red tape, Greece has laboured to attract investors even in the midst of an unprecedented privatisation drive. Under the terms of its EU-IMF loan rescue, the country is obliged to offload some 19 billion euros ($24.5 billion) in state assets by 2015 but has so far managed around a tenth of that total. Forced to take part in a state debt rollover, Greek banks have slowed business loans to a trickle. And there was speculation earlier this year, during a Greek political deadlock that took two elections to produce a workable government, that the country could even be forced to leave the euro. French supermarket giant Carrefour and banks Credit Agricole and Societe Generale have all recently taken steps to extricate themselves from Greece as well. These are precautions not unrelated to so-called 'Grexit' fears, concern that Greece may return to a devalued Drachma, rating agency Fitch said in a Friday note with respect to Coca-Cola's move. But it added that what CCHBC and Fage did were "limited precedents" for other eurozone corporates for now, "despite incentives to ... protect against the risk of a full-blown sovereign crisis." Both Coca-Cola Hellenic and Fage claimed they were not abandoning Greece. "We are a Greek multinational company having its headquarters in Switzerland," CCHBC chief executive Dimitris Lois said in a conference call. "Having a new headquarters in Switzerland will provide stability that will be evaluated by credit agencies...more stability, that's what we are looking forward to," he added. CCHBC said the move would also improve access to equity and debt capital markets and increase its flexibility in raising new funds.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today business defections hit greece amid recovery effort Arab Today, arab today business defections hit greece amid recovery effort

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today business defections hit greece amid recovery effort Arab Today, arab today business defections hit greece amid recovery effort

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday