Athens puts islands up for sale

In a bid to avert default on its sovereign debt, the Greek government is to sell off portions of its islands to Turkey, reports Athens daily Ta Nea. This comes after revelations on 31 March that the Greek public deficit, previously estimated at €300 billion, is in excess of €500 billion. Minister of Finance Giorgos Papakonstantinou claimed “accounting errors” before making the surprise offer, estimated in the region of €40 billion for 49% ownership of the Dodecanese islands of Patmos and Agathonissi, close to the Turkish coast. Markets have reacted favourably to the offer with the yield on Greek 10-year bonds down 1.16% to 5.13%, reports the Financial Times. Meanwhile, the Turkish ministry of Foreign Affairs has expressed caution. According to a spokesman, the purchase of “waterless, non-touristic parts of these islands is excluded.” In a further development, Ta Nea reports, 200 Orthodox priests demonstrated this morning in the town of Chora, Patmos, against the move.