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Greece looks to state property assets to avoid third bailout

A dilapidated mansion stands for sale by the Hellenic Republic Asset Development Fund in central Athens, Greece. The government opted for online auctions as the best way to quickly and transparently move assets off its hands.
Kostas Tsironis | Bloomberg | Getty Images
A dilapidated mansion stands for sale by the Hellenic Republic Asset Development Fund in central Athens, Greece. The government opted for online auctions as the best way to quickly and transparently move assets off its hands.

The Greek finance ministry is looking at a plan that could see state-owned property assets used as collateral for loans that could help it avoid a third bailout by the EU and IMF.

According to a report in Greek newspaper Ekathimerini Greek finance minister Yannis Stournaras is reluctant to sign up to a third bailout because of the conditions it would likely impose on his government's spending and reform process.

(Read more: Tensions remain as lenders return to Greece)

In order to avoid the bailout a special purpose vehicle (SPV) is being considered that would be managed by both Greek and EU officials, according to Ekathimerini.

The SPV would allow Greece to issue bonds backed by state property assets. These bonds could according to the report then be used as collateral for further loans from the European Stability Mechanism.

Officials from the ECB, IMF and European Commission, known as the Troika, arrive in Athens for talks with the Greek finance minister on Sunday.

(Read more: Greece's problems are still Germany's problems)

—By CNBC's Patrick Allen

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