Hellenic Republic Asset Development Fund S.A. which is the state owned asset development fund of Greece. Founded in 2011 it is a key initiative in attracting direct investments in infrastructure, energy, real estate and other industries and a key player in helping Greece recover from its debt. EBM gives you the lowdown.
T he Hellenic Republic As- set Development Fund (HRADF) was established in 2011 with the purpose to grow the private assets transferred to the Fund by the Greek State, in accordance with the internationally undertaken commitments and the provisions stated in the Midterm Frameworks of Fiscal Strategy.
In close co-operation with the Greek Government, HRADF promotes the country’s privatization plan, holding full responsibility to comply with existing policies. HRADF is executing a particularly optimistic plan for the exploitation of the State’s private assets, in a way that – firstly, it will largely contribute to the reduction of the public debt and, secondly, it will establish the foundation for restarting the development process in our country with multiple benefits for the economy.
The Fund’s basic aim is to attract substantial flow of international capital. The opening-up of particular market sectors accomplished through privatizations, contributes to the creation of new jobs, while at the same time communicating the privatization plan generally creates the appropriate environment for re-establishing the country’s credibility abroad. For this reason, the HRADF in accordance to market conditions and based on the rules of transparency and the public interest, operates with the necessary flexibility in order to attain the best possible terms and maximize benefits for the State.
The Fund’s management has the sole responsibility for its operation and recommends each privatization to be decided upon by the Board of Directors. In addition, two representatives appointed by the member states of the Eurozone and the European Commission are entitled to participate to the BoD meetings as observers, without the right to vote.
The Fund is also supported by a Council of Experts – comprised of 7 members, who submit an opinion on every privatization. Its members are widely accepted professionals, distinguished for their scientific qualifications and professional experience from the technical, economics, or law sectors. The BoD appoints four persons and the Institutions three.
The BoD meets regularly to approve of the basic steps of the tenders’ procedure – the pre-selection, the main terms of the agreement and the selection of the preferred bidder. Decisions are taken by sim- ple majority of the Board and the opinion submitted by the Council of Experts represents the majority. At the end of the procedure, there is also an independent Auditor whose opinion is also taken into consideration by the BoD.
After the BoD decides to proceed with any privatization, the agreement is submitted to the Court of Audit for a pre conditioned audit. On average the privatization process lasts from 9 to 15 months, from the beginning of the preparation stage till the deposit of the amount to the Fund’s accounts.
To comply with the highest transparency standards, the HRADF publishes quarterly reports, operates on internal procedures and policies, and on a publicized Assignments Regulation, and also employs internal and external Auditors. Finally, all announcements about the HRADF are uploaded to the Fund’s website in order to provide explicit information and transparency.