Banks may force PPC to part with power network operator DEDDIE

Public Power Corporation's tough challenge of refinancing its loan obligations of 2.2 billion euros by the end of 2019 is forcing the company to contemplate the sale of assets such as DEDDIE, its 100 percent subsidiary that operates the country's power network.

The issue of debt refinancing has re-emerged as the creditor banks are setting strict terms due to close monitoring by the European Central Bank's Single Supervisory Mechanism (SSM). The lenders have no margin for any flexible handling of such a sizable loan.

A senior banking source has told Kathimerini that "we will see what price PPC will get from selling its lignite units. However, there are also some other assets that would be of interest to investors, such as DEDDIE," making clear the banks' intention to associate the refinancing process with the reduction of their exposure to PPC loans through the sale of...