The growing privatization of many publicly owned Greek companies may encourage these corporate entitities to turn to securitization as a means of diversifying their funding base, thereby expanding Greece's securitization repertoire beyond just the public sectors, says Moody's Investors Service.

According to the rating agency, long awaited changes to the Greek securitization law have to date only benefited public sector entities. The Hellenic government has been at the forefront of Greek securitization and has also pioneered issues within the government-related asset classes. In fact, such activity was largely expected to continue into 2002, with volumes reaching similar levels to those seen last year.

However, a venue for private sector securitization is about to take shape, analysts say, as there is increased pressure on banks to enhance shareholders' returns. Banks have historically funded through the form of deposits, but this may no longer be an adequate method of financing.

Therefore, Moody's expects Greece to offer more than just public-sector transactions this year.

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