site.btaGovernment to End Privatization of State-owned Companies

Government to End Privatization of State-owned Companies

Sofia, May 10 (BTA) - The government on Wednesday tasked the Finance Ministry with drafting a bill to ban the privatization of state-owned companies and their subsidiaries. Any auction of autonomous parts will be endorsed by the National Assembly on a proposal by the government.

Speaking after Wednesday's cabinet meeting, Economy Mnister Emil Karanikolov said that all ongoing privatization procedures for state-owned companies will be terminated immediately. He specified that privatization also refers to the sale of private public properties by regional governors. The transactions will be agreed with the Finance Minister which is spelled out in the current legislation and the privatization of autonomous parts will be banned.

Karanikolov said that analyses of the Privatization and Post-privatization Control Agency have shown that 98 per cent of the companies outside the no-privatization list have been privatized. There has been no investor interest in remaining companies, while the companies in the no-privatization list are strategic to the country.

Karanikolov recalled that the privatization process began in 1994-95 as the only means of denationalization. In 1996-97 legislation introduced concessions and other forms of private public partnerships. The Ministers said that Bulgaria's privatization potential has been exhausted. The companies which have survived for more than 20 years will continue to develop with some even posting profits.