PPC management is concerned over the course of its subsidiary EDS in Northern Macedonia.
According to information from ot.gr the financial performance of the electricity trading and supply company is not good at all, with its trading activity creating losses. In fact, as reported by ot.gr sources, PPC management has decided to suspend the relevant activity for this year in order to limit financial consequences.
As far as the supply of electricity is concerned, it does not bring large revenues to PPC and sources note that these are considered low. Its participation in supply is also limited.
For the time being, however, the public company has not taken any decisions. However, market players tell ot.gr that scenarios of its disengagement from the specific acquisition are also being considered.
EDS has been in the PPC portfolio for three years. The case of its acquisition in the summer of 2018 by the then management of the public enterprise, following the signing of the Prespa agreement, had caused a storm of political reactions. The purchase price, which was announced, may have been low (4.8 million euros) but the parties of the then opposition had raised a number of questions, during the SYRIZA-ANEL government. These were related on the one hand to the fact that EDS belonged to the then Deputy Prime Minister in the Zaev government, Kocho Angiusev and on the other hand to the loss-making balance sheet announced by the company for the years 2017 and 2016. In addition, to the criticism leveled against the SYRIZA- ANEL government at the time, the management of PPC was also slammed, for the very bad performance of the public enterprise. It should be noted that at that time its financial results were going from bad to worse, culminating in 2019, when it reached the brink of bankruptcy.
However, the negative course of EDS was reflected in the last PPC board meeting chaired by Manolis Panagiotakis . In July 2019, it had decided to cover the negative net position of the company in Northern Macedonia. More specifically, the Board of PPC, a few hours before resigning, had approved its corporate transformation from a sole proprietorship to a public limited company and at the same time had decided to pay an amount of 1.8 million euros which would be its initial capital (in the new corporate form), covering the negative position of 1.6 million euros.
The then management of PPC, was led to this decision as one of the cooperating banks of EDS in North Macedonia, NLB, threatened the termination of the credit line of 2.5 million euros if the electricity supply and trading company did not close the “black” hole, which had existed since 2017. At that time it was at 1.7 million euros. In fact, the same sources want the bank to have demanded at least 1.6 million euros to close the negative position of EDS.
Latest News
ELSTAT: Greek Health Expenditures Reach €5.89 Billion in 2022
Finally, healthcare financing as a percentage of GDP decreased to 8.5% in 2022 from 9.18% in 2021, as per the Health Accounts System report.
Sonoco Paper Mill Plants Close After 30 Years in Greece
The shut down of the two paper mills in northern Greece comes a week after a glass plant closed in Athens
BoG: Private Deposits Down by 1.068bln Euros in Feb. 2024
Corporate deposits decreased by 912 million euros, compared to a decrease of 3.167 billion euros in the previous month
Greeks’ Buying Power Second Lowest in the EU
Greeks’ purchasing power is under pressure, ranking 26th among 27 EU member states.
Greek FinMin Says Digital Work Card Tackling Undeclared Work
Greece's recently launched digital work card aimed at tackling undeclared labor has already started to produce results, said Economy and Finance Minister Kostis Hatzidakis
MSC Cruises: More than 400 Visits to Nine Greek Destinations
MSC Cruises, a subsidiary of international shipping line Mediterranean Shipping Company S.A, will be sailing to Greek ports as of this month, expanding operations in the region year-round
Eurostat: Greece Among Cheaper Hourly Labor Cost Zones
In contrast, the countries that posted the highest hourly labor costs are Luxembourg (53.9 euros), Norway (51.9 euros), Iceland
GSEVEE: Economic Sentiment Indicator in Greece Down in Q2 2023
The drop follows a significant uptick in the ESI in the second half of 2022 (69.5 units) and a slight decline in the first half of 2023 (66.7 units)
Manpower Report: Sectors in Greece that Have Achieved Full Gender Equality in the Workplace
Greece surpasses this with 45%, showcasing progress but also room for improvement. Sectors like Consumer Goods and Services lead with 69% reporting full equality globally
Bank of America (BofA): Three Reasons Greek Economy Outperforms EC Average
BofA projects growth of 1.1% in 2024 and 1.7% in 2025, compared to forecasts for eurozone growth at 0.4%/1.1%, respectively