The right path of investment-Project<\/strong><\/p>\n\n\n\nBut what could be the maximum return from the use of the\nformer airport of Hellinicon, with the best benefit to the Greek economy,\nwithout the sale\/loss of this so important real estate from the Greek state\nproperty portfolio and without to cause any burden in the annual budget of the Greek\ncentral government, while maximizing the benefits for the human resources of\nGreece?<\/p>\n\n\n\n
The real value of the former airport of Hellinicon is not located in its locality within the urban environment of the southern suburbs of the Athens capital. Location that irritates all constructors to appeal for building it up. The real value of the former airport of Hellinicon lies in its airfields. <\/p>\n\n\n\n
The most difficult part in the construction of an airport is its runways, especially when they should be made based on the strict European standards. I will explain, in my opinion, the optimal way of capitalizing on this so important real estate of the Greek state with concrete steps:<\/p>\n\n\n\n
1.<\/strong> The Greek government should primarily give the specific-currently investors the opportunity to offer direct funds to the Greek state, funds totaling \u20ac8bns, for the acquisition of the right to exploit it, and not \u20ac500m. <\/p>\n\n\n\nIf they fail to do so, the contract will have to be canceled and investors will have to return the property to the Hellenic Republic. Then the Greek government will must co-decide with the EU-Commission and by extension with EU’s permission that they will withdraw the former airport of Hellinicon from the portfolio of real estate assets of the Hellenic Republic Asset Development Fund (H.R.A.D.F.).<\/p>\n\n\n\n
2.<\/strong> Then the Greek government will seek from a group of European banks and always under the EU’s umbrella advisory the lending (or issuance of a bond) of an amount of \u20ac8b by putting a pledge (mortgage) in these banks\/mechanisms the total area of the former airport of Hellenicon. <\/p>\n\n\n\nThe repayment of the loan will last for fifty (50) years with a fixed annual interest rate of 1,5% (since 1,320% is the 10yr Greek bond yield, on 18\/10\/2019). The repayment of this loan will be made on an annual basis in equal and in equivalent installments (the annual installment with the loan’s top features is \u20ac183264437,24). <\/p>\n\n\n\n
Could the price of the mortgage loan be more than \u20ac8b without ignoring the financial difficulties of the member country which make its negotiating position difficult? Of course, it could. <\/p>\n\n\n\n
Because the area of \u200b\u200bthe former airport of Hellenicon is 5249873sqm (in the above size is not including the area of \u200b\u200bSt. Cosmas and the Olympic Sailing Center) and it is two and a half times the size of the Principality of Monaco (1950000sqm), with the Monaco Principality being valued close to \u20ac12b and in addition the former airport of Hellenicon is in a capital of EU which shows the highest number of days in sunshine per year than the other EU capitals. <\/p>\n\n\n\n
But \u20ac8b is a reasonable amount, given the economic conditions, which does not make the amount of borrowing excessive. It will be a success for the Greek government and the EU-Commission to obtain a mortgage loan amounting to \u20ac8b and could achieve this if and only if the reasons and purposes of the investment are understood and as they will be explained in detail in the following paragraphs.<\/p>\n\n\n\n
Belh@rra Frigade<\/strong>3.<\/strong> Before any agreement (signatures) of the above loan is made, the Greek government under the supervision and guidance of EU will must have proceeded to other types of agreements regarding the use and exploitation of the property. <\/p>\n\n\n\nParticularly, it should choose the long-term lease of the former airport of Hellenicon, with a long-term lease to have period (duration) equivalent to the repayment period (duration) of the mortgage loan, while they should address to a group of investors like a group of large European airlines and not only. <\/p>\n\n\n\n
The former airport of Hellinicon should be leased for a long time and for its only use to be the international European center of repair for all types of civil aviation aircraft which will include all kinds of internationally planned aircraft repairs. <\/p>\n\n\n\n
It will not be leased for use as a passenger airport or as a cargo transport airport. It will be an airport of any type of civil aircraft repairs (not an aircraft cemetery). The weather conditions prevailing at its former airport of Hellinicon are the best for an airport across the European continent. <\/p>\n\n\n\n
The aircrafts that will make the specific use of the airport will not follow the frequent schedules of commercial transportation airports to cause a huge noise pollution problem in the surrounding airport-populated areas.<\/p>\n\n\n\n
Greece is a member of the Eurozone and EU and needs,\nespecially in its today economic situation, to produce high value-added\nproducts and services and in general it needs the creation of a heavy industry\nof high technology. The Greek government together with the EU Commission should\nput this request at the top level of the EU while requesting its help. <\/p>\n\n\n\n
The EU should decide and announce this investment event at the highest level and designate the former airport of Hellinicon as the international European center for all types of civil aircraft repairs. <\/p>\n\n\n\n
Only in this way will major European airlines and not only them be persuaded to move on to this endeavor. Any infrastructure and facilities at the former airport of Hellinicon that will have to be rebuilt or maintained will be financed solely by the National Strategic Reference Framework (N.S.R.F.) funds of which are attributable to Greece for the period (2014-2020).<\/p>\n\n\n\n
4.<\/strong> The Greek state, in addition to avoiding a loss of property for (99) years from the Greek state Property Portfolio, will benefit in many ways by the following ways:<\/p>\n\n\n\n a) <\/strong>More\nthan three thousand (3,000) direct full-time jobs (plus 10,000 indirect\nfull-time jobs) will be created, with most of these jobs being university-level\nfor Greek engineers and mechanics and not only.<\/p>\n\n\n\n b) <\/strong>The\nPolytechnics of Greece, in cooperation with the administration of the\ninternational European center of all types of repairs for civil aircraft at the\nformer airport of Hellinicon, will create scholarships and will steadily absorb\ntheir graduates’ in practical and future work.<\/p>\n\n\n\n c)<\/strong> The unemployment among young people,\nparticularly graduates, will begin to decline as the airlines that will\nparticipate in this venture as investors will rely on cheap workforce of higher\neducation, a very important and advantageous parameter for the positive outcome\nof an investment decision.<\/p>\n\n\n\n d)<\/strong>\nAdditionally, the airlines will benefit from the fact that the Greek engineers\nare, if not the best, among the best in the world. This is evidenced by the\nfact that Olympic Airways for decades was one of the safest in the world.<\/p>\n\n\n\n e) <\/strong>Engineers\nand senior administrative staff from European airlines and not only, will move\npermanently to Athens with their families by increasing demand in real estate\nand focusing on areas near the former airport of Hellinicon. It should not be\nforgotten that the areas around the former airport of Hellinicon were developed\nand widened after 1952 (the year of establishment of the former airport\nHellinicon), due to the increasing demand for services to airport employees.<\/p>\n\n\n\n f)<\/strong> The state revenues which will\noriginated from the direct and indirect taxes on such an investment will be\nsteadily filled for decades the State funds while adding certain social\nsecurity contributions to the current social security funds.<\/p>\n\n\n\n g) <\/strong>The\ncreation of an international European center of all types of civil aircraft\nrepairs next to Athens International Airport “Eleutherius Venizelos”\nwill force all airlines of the world to reposition Athens once and for all on\ntheir international routes. This will have major benefits for the country’s\nheavy tourism industry, thus helping to further increase of the Greek GDP. The\nlocation is ideal and is located between three continents. Investors will\ncertainly attract airlines from Europe, the Middle East and Africa for their\nservices. Additionally, from all over the globe. This parameter increases the\nattractiveness of the investment.<\/p>\n\n\n\n h)<\/strong> The\nuse of National Strategic Reference Framework (N.S.R.F.) funds for the reconstruction and\nmaintenance of existing infrastructure at the former airport of Hellinicon will\nmake it more attractive to invest in the prospective investors.<\/p>\n\n\n\n i)<\/strong>\nSmall innovative high-tech companies and not only, will appear in the Greek\nterritory to claim a sub-project for the construction and maintenance of\naircraft electronic systems, further reducing unemployment for young graduates.<\/p>\n\n\n\n j)<\/strong> The\ncash flow that will result from this investment will continuously improve the\ncurrent account balance of Greece.<\/p>\n\n\n\n k)<\/strong> The\nGreek state will be able to use differently the areas of Saint Cosmas (426011sqm) and the former Olympic\nSailing Center (529792sqm) for the benefit of the residents of the surrounding areas\nas a counterpart to the use of the property. In addition, a green\/forest area\ncan be created in specific areas of the property and attributed to the\ninhabitants of the surrounding areas.<\/p>\n\n\n\n l) <\/strong>The\nway this investment will be funded and explained below will not burden the\ngeneral\u2019s government public debt and the central government budget at all\nduring the whole repayment of the loan (fifty-50 years).<\/p>\n\n\n\n m)<\/strong>\nInvesting in this size with the participation of large European airlines\n(investors) and not only, will once again strengthen Greece’s position in the Eurozone,\nwhile eliminating any doubts about its continued existence in it from the\ninternational capital markets (political benefits).<\/p>\n\n\n\n5<\/strong>. Also, the Greek state, the EU and the selected investors will co-finance the creation of an International European Research and Development Center (R&D) of Aeronautical and Mechanical of Civil Aviation with the participation of European Polytechnics and Universities and not only. <\/p>\n\n\n\nThe headquarters of the Center for Aeronautics and Mechanical of Civil Aviation will of course be located at the former airport of Hellinicon. In turn, the Greek state will buy a European fighter aircraft and finance the construction of a factory for its future production in Greece. <\/p>\n\n\n\n
This European fighter aircraft will be selected for purchase by the Hellenic Air Force with an open competition and will be its main fighter aircraft for the next decades (how will be financed this project by the Greek state, I will show it in later paragraphs). <\/p>\n\n\n\n
The choice to build a fighter aircraft is preferable to the choice of civil aircraft with aim to meet the needs of the country, but also because in the second case it would operate competitively with other eurozone and EU members equally which already have civil aircraft manufacturing factories in their countries. <\/p>\n\n\n\n
The Hellenic Aerospace Industry (H.A.I.) already cooperates with a large foreign group in the co-production of shaft parts of a transport aircraft, as well as in the assembling of sub-assemblies of combat aircraft of the Hellenic Air Force. <\/p>\n\n\n\n
The H.A.I., in cooperation with the selected fighter aircraft company, will be responsible to produce the European fighter aircraft (5th<\/sup>-6th<\/sup> generations) in Greece, operating independently of the company’s existing productions. Such a decision will gauge the company’s turnover in the future by creating thousands of new full-time jobs in its production plants. <\/p>\n\n\n\nMoreover, the annual size of armaments expenditure will be further reduced to the central government budget, as the future acquisition of 100% production aircraft in Greece, solely for the needs of Greece, will be a more advantageous solution due to the low Labor costs and not only. <\/p>\n\n\n\n
The H.A.I.’s financial position will be greatly improved and if the Greek state decides either to sell it or to give a majority shareholding together with its management to a strategic investor, the financial benefits will be maximized compared to today. <\/p>\n\n\n\n
The choice of the location of the new European fighter aircraft manufacturing factories should be outside of Athens, in another city of Greece, to make the most benefits of the local economies of the periphery of the country. <\/p>\n\n\n\n
6<\/strong>. Greece, as a member country of EU and the euro zone, is entitled and needs to participate in the research, design, improvement and production of high-tech services and products of the EU. <\/p>\n\n\n\nHowever, I believe that, given the economic conditions prevailing today, it is a unique opportunity for the country and with the help of the EU to enter this high-value technology sector by creating the basis for a future competitive high-tech industry, giving work for decades to thousands of Greek and European citizens. The Greek economy must not and cannot rely only on agricultural production and tourism, as Greek governments want to present over time.<\/p>\n\n\n\n
7<\/strong>. The EU could construct at the specific point of the former Greek airport a state-of-the-art and powerful terrestrial radar that monitors the entire eastern Mediterranean area from the Black Sea to Syria and Iraq. <\/p>\n\n\n\nWe must not forget that until the beginning of the decade of 1980 in this area it functioned a military base of the United States. This modern radar will be the first basis for electronic monitoring of the common European defence and always within the framework of NATO, which will be operated mainly by European military with the base commander being a Greek officer.<\/p>\n\n\n\n
Rafale<\/strong>The funding of the investment<\/strong><\/p>\n\n\n\nThe handling of the financial situation resulting from the above proposed use of the former airport of Hellinicon should be done in close cooperation and always under the supervision of EU- Commission. <\/p>\n\n\n\n
Below I will show how the Greek government will not charge with the interest rates and the interest repayments of \u20ac8b collateral loan, i.e. the annual cash outflows of mortgage repayment funds will not burden the central government’s annual state budget and the general\u2019s government debt. <\/p>\n\n\n\n
Mortgage loan (m.l.) with a capital of \u20ac8b and a repayment term of fifty (50) years with a fixed annual interest rate of 1,5%. The annual equivalent repayment installments, with the top features of the loan, are worth \u20ac183264437,24. These figures are used as an ideal example to understand the methodology without implying that it cannot be borrowed with other data-elements.<\/li><\/ul>\n\n\n\nThe long-term lease (l.l.) of the former airport of Hellenicon should be on an annual payment basis and with a long-term lease equivalent to the duration of the mortgage loan, i.e. fifty (50) years. In addition, the long-term lease should yield an annual price equivalent to the annual repayment installment of the mortgage loan, i.e. (m.s.=l.l.=\u20ac183264437,24). <\/li><\/ul>\n\n\n\nThe annual payment of the long-term lease should be made on the same date or better on an earlier date from the date when the annual installment of the mortgage loan is paid. In other words,<\/p>\n\n\n\n
-Duration of the Long-term\nlease = Duration of the Collateral loan<\/p>\n\n\n\n
-Payment frequency of the\nlong-term lease = Repayment frequency of the Collateral loan<\/p>\n\n\n\n
-Payment date of the\nlong-term lease \u2264 Repayment-deposit date of the Collateral loan<\/p>\n\n\n\n
-Annual value of the lease\ninstallment =Annual value of the loan repayment installment<\/p>\n\n\n\n
The reader must understand that due to the publicity of the project and the internationalization of the former airport of Hellinicon utilization in this way, the details of the agreements cannot be concealed. <\/p>\n\n\n\n
For this reason, the EU and the Greek government should in advance inform their fellow-conversers, creditors and investors that their purpose is not the profit nor the deficit from the annual inflows and outflows resulting from these double agreements. <\/p>\n\n\n\n
In fact, with the above description of the financial way of using this property, with these double agreements we have a cash-flow matching for the duration of both the loan and the long-term lease. <\/p>\n\n\n\n
With this financial strategy, the government budget of the Greek central government is not burdened on a yearly basis with the repayment of the mortgage loan throughout the loan repayment agreement (50 years).<\/p>\n\n\n\n
If the EU and the Greek government agree with prospective investors and creditors to exploit the former airport of Hellinicon in this way, then it can then come to an agreement so that investors deposit the annual equivalent of the long-term lease directly to banks or to financing mechanisms at the pre-agreed date and for repayment of the mortgage loan. Both the creditors and investors will know this venture in advance, so to be able to help and being helped. <\/li><\/ul>\n\n\n\nThe more airlines are from EU and more generally from all\nover the world, who will participate as investors in the leasing of their\nformer airport of Hellinicon for the purpose and use described above, the\nsmaller will be the annual amount with which each airline will contribute-it\nparticipates in the repayment of its annual repayment installment of the\nlong-term lease. <\/p>\n\n\n\n
For example, if all airlines participating as investors\nin the lease of the former airport of Hellinicon with the above use are in\nnumber, for example, twenty (20), then the annual leasehold will be \u20ac9,1m for\neach of them, if the participating companies are e.g. thirty-six (36), then the\nannual leasehold interest in the property will be \u20ac5m for each of them (for the\nsake of understanding the example, I assume an equivalent investment\ncontribution to the investment scheme for all the participant investors\nrespectively). It constitutes EU’s top priority to request participation in the\ngroup of investors for the lease, if not all, of at least most European\nairlines and not only.<\/p>\n\n\n\n
Receiving a \u20ac8bn capital from the Greek state due to the mortgage loan.<\/li><\/ul>\n\n\n\nThe funding of the modernization of\nthe Greek Armed Forces<\/strong><\/p>\n\n\n\nGiven that with the installments of the support programs\nwill have paid off the past due debts both of the hospitals and social security\nfunds to pharmaceutical companies and pharmacies, then from the \u20ac8 billion of\nthe mortgage loan we can have the following allocation,<\/p>\n\n\n\n
\u20ac2,5b will be used to initially finance the purchase of a certain number of aircraft by the selected European fighter (5th<\/sup>-6th<\/sup> generation) directly from the selected company (i.e. a number of 36 fighter aircraft with price \u20ac71m each aircraft) and then the Greek state will finance the construction of factory facilities for the 100% future production of the European fighter aircraft on a Greek ground and for specific aircraft numbers and for its own needs (more about the full way of financing on an annual basis by the Greek state I will refer to a later paragraph). <\/li>\u20ac4b will be used by the Greek state in order to buy 4 European high-tech Frigates (i.e. Belh@rra) for the Greek navy.<\/li> \u20ac1b will be used by the Greek state to buy long-range and high precision weapons against flying, terrestrial and surface targets equally, sensors and modern systems of command and control.<\/li> \u20ac0,5b will be used by the Greek state to modernize existing weapon systems of the Greek Armed Forces.<\/li><\/ul>\n\n\n\nThe financing method for the\ncreation of a state-of-of the art high-tech industry from the Greek State <\/strong><\/p>\n\n\n\nFinancing the construction of the plant and mainly the\nfinancing of the future production of the selected European fighter aircraft (5th<\/sup>-6th<\/sup>\ngeneration) in Greece, will take place over a decade. In addition to the\ninitial direct purchase of a certain number of aircraft by the selected\ncompany, the manufacturer must allow the future production of the aircraft in\nGreece for the needs of Greece alone. <\/p>\n\n\n\nThe facilities will include all the necessary and up-to-date technological infrastructures for the successful production of the fighter with the high levels of the selected company, including the creation of a Research and Development Center for Aeronautics Development (R&D) aiming at integrating with research programs the Polytechnics of EU and not only. <\/p>\n\n\n\n
Funding the purchase of the first number of selected fighter aircraft from the base of the chosen producer company and the financing of setting up the factory for the future production of the European fighter aircraft on the Greek ground will come from the following resources:<\/p>\n\n\n\n
\u20ac0,5b of the \u20ac8b of the mortgage loan of the former airport of Hellenicon<\/li> \u20ac400m annually for ten consecutive years, will be given to produce the European fighter in Greece and will be financed solely by the Public Investment Program (PIP) of the central government’s annual budget.<\/li><\/ul>\n\n\n\nClosing this section, regarding the optimal way of\nexploiting an extraordinary element of the real estate of the Greek State\n(formerly airport of Hellinicon) that I presented in this analysis and without\nhaving to burden with one euro the state budget of the central and general government\nequally, while the Greek government receives a total of \u20ac8bns which will direct\nthis amount next in the European defense industry, the reader can understand\nthe magnitude of the terrible loss suffered the Greek state with the\nproposed particular privatization scheme which initially took place in this particular way\n(28\/2\/2014) and was almost completed on (8\/6\/2016) and always under the good\ncooperation of the Greek governments (2012-2019), the administration of the Hellenic\nRepublic Asset Development Fund (H.R.A.D.F.) and the successful investors. <\/p>\n","protected":false},"excerpt":{"rendered":"
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