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Eurozone financial crisis: Winners and losers | Eurozone financial crisis: Winners and losers |
(4 months later) | |
By Michael Robinson File on 4, BBC Radio 4 | By Michael Robinson File on 4, BBC Radio 4 |
The crisis in the eurozone may threaten the livelihoods and living standards of many, but for some it presents a golden opportunity. | The crisis in the eurozone may threaten the livelihoods and living standards of many, but for some it presents a golden opportunity. |
In cash-starved Greece, Yannis Perrotis, the managing director of leading commercial estate agent CBRE, says while local businesses are facing significant problems, large international companies with greater financial strength are able to seize opportunities. | In cash-starved Greece, Yannis Perrotis, the managing director of leading commercial estate agent CBRE, says while local businesses are facing significant problems, large international companies with greater financial strength are able to seize opportunities. |
"They are in a better position to benefit," Mr Perrotis says, "and in most cases, they take advantage of it." | "They are in a better position to benefit," Mr Perrotis says, "and in most cases, they take advantage of it." |
Mr Perrotis has recently secured a prime retail location in central Athens for the sportswear giant Nike. Formerly occupied by a Greek bank, the rent Nike will have to pay is barely half what it used to be. | Mr Perrotis has recently secured a prime retail location in central Athens for the sportswear giant Nike. Formerly occupied by a Greek bank, the rent Nike will have to pay is barely half what it used to be. |
Top international clothing brands H&M and Mango have also secured prime premises for knock-down rentals, Mr Perrotis says. | Top international clothing brands H&M and Mango have also secured prime premises for knock-down rentals, Mr Perrotis says. |
The owners of the buildings were initially reluctant to accept so large a drop in rent, he says. "But now they have come to grips with reality." | The owners of the buildings were initially reluctant to accept so large a drop in rent, he says. "But now they have come to grips with reality." |
Companies in financial distress present opportunities as well. | Companies in financial distress present opportunities as well. |
Restructuring specialist Haris Stamoulis, the chief executive of Athens-based LEADfinance, says Greece has many good companies which are saddled with bank debts they cannot pay. | Restructuring specialist Haris Stamoulis, the chief executive of Athens-based LEADfinance, says Greece has many good companies which are saddled with bank debts they cannot pay. |
Because Greek banks have been forced to write down such debts, Mr Stamoulis says, investors can gain control of companies through buying their debts from the banks. | Because Greek banks have been forced to write down such debts, Mr Stamoulis says, investors can gain control of companies through buying their debts from the banks. |
'Trophy assets' | 'Trophy assets' |
"If a company owes €100m (£87m) to a bank and they cannot service it," he says, "and banks have been forced to provide for those losses, if somebody comes and offer cash for the remaining, that would be music to their ears." | "If a company owes €100m (£87m) to a bank and they cannot service it," he says, "and banks have been forced to provide for those losses, if somebody comes and offer cash for the remaining, that would be music to their ears." |
Mr Stamoulis has already attracted $150m (£94m) of American backing for such deals. Plenty more, he says, is poised to follow, if and when Europe's policymakers manage to stabilise Europe's financial system. | Mr Stamoulis has already attracted $150m (£94m) of American backing for such deals. Plenty more, he says, is poised to follow, if and when Europe's policymakers manage to stabilise Europe's financial system. |
"There's going to be a lot of people like vulture funds circling around," Mr Stamoulis says. "Many people in the US and Europe have been interested in this." | "There's going to be a lot of people like vulture funds circling around," Mr Stamoulis says. "Many people in the US and Europe have been interested in this." |
Other investment opportunities are in the offing in the shape of Greece's vast array of state-owned assets - valued at up to €125bn (£109bn). | Other investment opportunities are in the offing in the shape of Greece's vast array of state-owned assets - valued at up to €125bn (£109bn). |
These include the Greek national lottery - among the biggest and most profitable in the world, and a disused airport built for the 2004 Athens Olympic Games. | These include the Greek national lottery - among the biggest and most profitable in the world, and a disused airport built for the 2004 Athens Olympic Games. |
In the currently depressed economic conditions, Greece has been reluctant to put such trophy assets onto the market. | In the currently depressed economic conditions, Greece has been reluctant to put such trophy assets onto the market. |
But with the European Commission, the IMF and the European Central Bank - collectively known as the troika - putting Greece under increasing pressure to sell state assets to help reduce its debts, new bargains are likely to appear. | But with the European Commission, the IMF and the European Central Bank - collectively known as the troika - putting Greece under increasing pressure to sell state assets to help reduce its debts, new bargains are likely to appear. |
But perhaps the most surprising investment opportunity of all it is to be found in the chief cause of the present crisis: Greece's €350bn (£304bn) plus pile of unpayable debt. | But perhaps the most surprising investment opportunity of all it is to be found in the chief cause of the present crisis: Greece's €350bn (£304bn) plus pile of unpayable debt. |
Crippling debt burden | Crippling debt burden |
BBC Radio 4's File on 4 has discovered that some hedge funds are planning to cash in on the crisis by buying Greek debt in the form of Greek government bonds. | BBC Radio 4's File on 4 has discovered that some hedge funds are planning to cash in on the crisis by buying Greek debt in the form of Greek government bonds. |
Their strategy depends on the troika persuading banks to agree to what is called a "haircut" in the value of their holdings of such bonds. | Their strategy depends on the troika persuading banks to agree to what is called a "haircut" in the value of their holdings of such bonds. |
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class="dslideshow-header">What went wrong in Greece? |