GREECE'S conservative-led government yesterday announced plans to break up the state-run Public Power Corp by 2016, as part of a privatization program demanded by the crisis-hit country's creditors.

Government spokesman Simos Kedikoglou said about 30 percent of PPC's resources would be spun off to create a rival company, while the company-owned transmission operator, Admie, would also be sold.

The government is planning to sell off a 17 percent stake of PPC after the breakup, leaving it with 34 percent of the company and powers to veto decisions, Kedikoglou said. It will also retain a minority stake in the transmission operator.

"Careful consideration will be made for staff. There will be no dismissals," Kedikoglou told state-run NET television, insisting the privatization plan had the full backing of the government's left-wing and center-left coalition partners.

PPC employs about 20,000 people.