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ThyssenKrupp Terminates Greek Submarine Contract

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Germanys ThyssenKrupp AG has canceled two multi-billion-euro orders for the delivery of four submarines and the modernization of three other submarines to the navy of Greece since the Greek Ministry of Defence has accumulated arrears exceeding 520 mil. euro, news agencies report.

As ThyssenKrupp summed it up on Monday, “the Greek state has long ceased to honour its contractual obligations,” according to defpro (www.defpro.com). The defence related website  says that although the submarines have been completed and are ready for delivery to the Greek Navy, the state refused to pay for the submarines due to technical shortcomings which have allegedly been discovered by the Greek Navy during sea trials in 2006.

The website says that the refusal to meet its contract obligations may also be due to the fact that Greece is facing a huge budget deficit and may have decided to enter a sort of a complex “waiting game” in order to not have to meet all of the current payment obligations at the same time.

It also stresses the fact that a high ranking Greek navy official said last May that the technical problems had been solved and Greece could soon be in a position to accept the rest of the vessels.
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