
Before TRAINOSE (now Hellenic Train) get in September 2017 for 45 million euros under the control of an Italian company Ferrovie dello Stato Italiane – whose added value for its management Greek railway network ignored – it was a black hole that swallowed tens of billions of euros.
From its inception until 2005, OSE was the infrastructure manager and sole provider of rail passenger and freight transport in Greece. TRAINOSE was founded in December 2005 following the incorporation into Greek law of the European directive for the complete separation of the infrastructure remaining in OSE from operation.
TRAINOSE, which was “endowed” with an annual grant of 50 million euros until 2019, is a typical case of failed public administration.
In 2008, a year after the start of activity (the separation from the OSE was completed on 01.01.2007), he managed to show equity capital below 1/2 of the authorized capital, as a result of which there were grounds for its liquidation (based on Law 2019/1920 ).
And in just five years of operation, from 2007 to 2011, it has accumulated a debt of 800 million euros, which represents the largest part of the obligations of 1.079 billion euros written off by the Greek state under Law 3891/2010 on the consolidation of railways.
OSE obligations in the amount of 14.6 billion euros were regulated on the basis of the same legislative framework. Therefore, the state paid 15.7 billion euros just for writing off the debts of the Greek railways.
However, the account is increasing because the state, through the Ministry of Finance, also participated in the increase in the share capital of OSE and its subsidiary TRAINOSE, which is worth 4.6 billion euros in the period 2000-2011 alone.
Investment plan
The sums that the Greek state has spent on Greek railways become unthinkable, if we take into account that in the period 1994-2000. OSE implemented the largest investment program at that time in the amount of 1.2 billion euros.
The aim, among other things, was to convert the Patras-Athens-Thessaloniki line into a high-speed axis with parallel electrification of the Athens-Thessaloniki line, as stated in an interview in 1995 by then OSE President G., Petsos.
While modernization projects remained at zero, OSE – at least until 2011, when it first showed an operating profit (25 million euros) – increased the monthly deficit by 2 million euros.
The OSE black hole arose from its exorbitant borrowing under the guarantee of the Greek state.
This practice was common in order to be able to finance ever-increasing operating costs and pay ever-increasing high interest rates.
Significantly, in 2007, interest accounted for 34% of total operating expenses, while at least since the late 1990s, operating income has only represented 20% of operating expenses. The last loan in the amount of 800 million euros under the guarantee of the Greek state OSE received in 2010.
Source: Kathimerini

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