"The issue of the new privatizations fund to replace the existing one, TAIPED, is evolving into a major stumbling block in the ongoing talks between Athens and the representatives of its creditors. Nonperforming corporate loans are proving to be another bone of contention. According to the prime minister?s aides, the government foresees changes to the duties of the new sell-off fund which had been agreed in Brussels in July. Athens cites the reduction in banks? requirements for their recapitalization in its request for a similar drop in the value of state assets to go on sale. It will also request a change in the terms of use of the revenues, as it wishes to use a share of the takings for purposes other than the servicing of the state debt, the as yet undetermined obligations to stem from the bank recap and any fresh investment. Late on Thursday government sources appeared reservedly optimistic that most of the issues on the table would close on Friday, with the biggest problem concerning bad loans, particularly the quota to be released for sale to distressed-debt funds. The sources did not rule out an extension of a few days regarding that matter. The government is hoping to see this issue dissociated from the payment of the 1-billion-euro sub-tranche, although that would require the creditors? approval.
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