"A new page opens for the Greek navy, Skaramanga Shipyards and the entire Greek shipbuilding and ship repair sector," a statement by the Greek Defense Ministry said.

Under the agreement the German group will transfer its stake of 75.1 percent of the shipyards, the largest in the eastern Mediterranean, to MAR.

ThyssenKrupp picked up Hellenic shipyards, also known as Skaramanga, in 2005. Last year, though, the German steelmaker moved to shed the shipyards, accusing the Greek government of breaching a contract and missing payments on a deal to build four submarines for the Greek navy.

The first submarine, named Papanikolis, was commissioned for development by Howaldtswerke-Deutche Werft in Kiel, Germany, with the remaining three scheduled for construction at Greece's Hellenic Shipyards, west of Athens.

Yet shortly after the Papanikolis was built in 2001 and launched three years later, Greek navy experts determined a host of technical problems with the T-214 diesel-electric submarine. The most severe: excessive rolling in bad weather conditions when the submarine surfaced for sea keeping in high seas.

The hydraulic system was also flawed and the AIP system that supplements the submarine's diesel engines for long underwater operations faced defects.

The vessel's manufacturer accused Greece of intentionally dragging out its dispute in a bid to renegotiate the initial purchase price.

Since coming to power last October, the socialist PASOK government suggested that improvements made to the Papanikolis would allow the project to proceed.

"Papanikolis is a particularly important property item of the Greek navy," Defense Minister Evangelos Venizelos said at the time."It will be used in the most advantageous way for the Greek navy and the state budget."

Months later, though, and as Greece sunk into its worst recession in 16 years and faced a devastating debt crisis, Venizelos said recently that the country could ill-afford arms purchases and that it would instead proceed with revamping two older 209-class submarines with an order for two new 214-class submarines.

The shipyard deal will require approval from Greece's parliament. It remains unclear when the vote will be set.

The agreement will add to ADM's existing shipyards in France, Germany and the United Arab Emirates. It is also expected to take effect by the end of September.

Earlier this month, the European Commission approved the Abu Dhabi purchase of Hellenic Shipyards. It is understood that the Abu Dhabi shipbuilder and ThyssenKrupp would cooperate in naval and civilian ship-building projects.

earlier related report
IMF taps eight billion dollars for low-income countries
Washington (AFP) Sept 17, 2010 - The International Monetary Fund announced Friday it had reached a deal with four economic powers to provide eight billion dollars worth of funding to low-income countries.

"The agreements... expand the IMF's capacity to help low-income countries hit hard by the current global crisis," the Washington-based body said.

The deals were reached with authorities in Japan, Britain, France and China.

Japan was the biggest contributor to the package, pledging 2.7 billion dollars via purchase agreements that give the fund leverage for lending. Britain pledged two billion dollars and the Bank of China pledged 1.2 billion.

The Bank of France entered a loan agreement for two billion dollars.

The announcement came days before a United Nations summit expected to highlight the lack of progress toward the so-called Millennium Development Goals.

The goals -- which have been further hampered by the financial crisis -- include cutting abject poverty by half, cutting the number suffering from hunger by half, securing universal primary education and reducing child mortality by two thirds by the year 2015.

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