Press reports claim that the regulator RAE will issue a decision over PPC’s tariff reshuffling on September 8. The reports also say that the tariff increases will be around 5-10% in some categories, below the ones that PPC has requested. The government is reportedly planning to decide for higher tariff increases in 2012-13, also to include the CO2 costs. Note that the final decision rests upon the Minister of Development. Following the tariff restructuring, PPC will be able to reduce commercial client tariffs and increase the ones for all other categories. As such, the above will help PPC to contain the pace of market share losses in the retail segment. In other news, press reports claim that PPC has agreed to acquire three wind farms of 25MW in operation and a portfolio of production licenses from BCI Partners. The reports also say that the total investment is about €125m and includes capex for the development of the licensed projects. Note that PPC has already stated that is examining acquisitions of RES projects in operation or under development, calling for total investments of about €2bn by FY15. Overall, we favor any developments aiming to shift PPC’s production base towards lower cost and cleaner capacity.

Regarding the joint redevelopment plan in Votanikos, management said that expects the required changes in the articles of the relevant bill to be voted within September. After that, a Presidential Decree will be required, which will take no more than 2 months to be issued. BVIC expects to start construction by the end of the year. The company also said that will start the construction of a 2.3k sqm property in 338 Kiffisias avenue. BVIC has a 52% stake in the respective land plot and the project’s budget will be €6m. There are already two embassies and a private investor interested for the property, while construction is expected to commence in 1Q11. On rental income, management indicated that on a l-f-l basis the company expects a 5% increase in FY10. BVIC also said that the provisions for bad debt that were recorded in the opex line, came from 360 days overdue payments for utilities and should not be recurring.

According to press reports, the Ministry of Finance will announce privatization advisors within the next couple of months for DEPA. Sources claim that the government is willing to separate DESFA from the rest of the group and evaluate PPC’s option to acquire 30% of DEPA. Recall that Hellenic Petroleum already holds a 35% stake in the company.

Ruling PASOK party's national council convened on Thursday, chaired by Prime Minister George Papandreou, to focus on the upcoming November local and regional elections, given that the party will announce a series of candidates for municipalities and 13 recently created regional entities around the country by Sunday.

Greece will not back down from its territorial rights and expects Ankara to prove its good intentions with actions rather than just words, government spokesman George Petalotis stressed on Wednesday.

Police in Rethymno on Wednesday reported a further five arrests in connection with the abduction on the island of Crete of a 50-year-old lecturer from Manchester University in England. The five, all residents of Iraklio, have been charged as accomplices in the kidnapping.

Total credit expanded by 2% vs 2.4% a month ago, while the overall net flow was -€43m from €74m in June. Business loans growth fell to 2.8% from 3.1% before, while the retail loans growth decelerated to 1.1% from 1.6% a month earlier. In particular, mortgage loans growth fell to 1.9% from 2.3%, while the consumer segment lending contracted by 0.7% vs a 0.4% yo- y growth before. The net flow of retail loans settled at -€258m, while the business segment recorded net additions of €161m. Overall, the data reflect both the decreased demand and the banks’ lower appetite to lend. The declining consumer loans are indicative of the banks’ effort to decrease the risk of their books. We would expect the overall credit expansion to continue decelerating.

Alpha’s deposits base decreased by €1.4bn in Greece in 2Q. The bank though said that the withdrawals seem that have stopped in August. The depo spreads competition should ease going forward. The bank reiterates the guidance for NPL formation of 250-300bps and CoR of 160-170bps in FY10. Alpha expects opex to decline by 2% in FY10 vs flat before. It runs numerous initiatives that will address costs going forward, targeting €43m-€53m of savings pa. Alpha plans to participate in the new €25bn liquidity support package. Regarding M&A, management said that the bank seeks to improve any weaknesses at this point. Therefore, domestic M&A is not a priority. Should a large foreign bank invests in Greece this would make sense and add liquidity and capital into the system. However, it does not expect any such actions in the near future given the current uncertainties. In other news, Alpha Bank said that is in talks with Yannopoulos for the latter’s resignation. Note that Yannopoulos holds the positions of General Manager and CFO at Alpha.

Ellaktor’s management lowered the construction EBIT margin guidance (including quarries) to 2.5% - 3% (PBe at 3.4%). Management also said that it expects FY10 construction turnover of €1.3bn, (PBe €1.39bn). Ellaktor remains focused in refreshing backlog, however the current economic slowdown has negatively impacted the tenders in Greece. The company mainly targets government infrastructure projects in Middle East and the Balkans. Regarding Attica Road, management said that the traffic in the first seven months of the year is down 7% y-o-y.

During a conference call held yesterday, management said that is optimistic over the new gaming legislation in Greece, which seems that it will be in favor of the established vendors in the country. Regarding the new games that are included in the contract with OPAP, management expects them to be launched by the end of the year. Easter European counties such as Poland and Romania are facing problems due to the economic slowdown. Management also commented that the Jamaican subsidiary SVL contributed around €50m of revenues, in line with our estimate. Finally, management guided for €90-95m capex for FY10, slightly increased due to the OPAP contract and the projects in the US.