Реферат: Privatization process in Lithuania
HISTORICOVERVIEW OF PRIVATISATION PROCESS IN LITHUANIAprocess was launched in Lithuaniain September 1991 and since then it has constituted an integral part ofLithuania's economic reforms. The entire privatization process may be dividedinto three major stages:
.The first stage covers the privatization that took place from September
1991until July 1995. This phase may be called a mass privatization for voucherswith some elements of cash sales. The voucher method was chosen as the mosteffective way of transferring the ownership of the state- owned enterprises.The privatization of state assets in Lithuania during that phase has been basedon the Law on Initial Privatization of State
Propertypassed in late 1991 and amended in 1993. As a result of that phase, Lithuaniahas become a country with a majority of the GNP generated in the privatesector.
.The second phase of privatization started in July 1995 with the introduction ofa new Law on Privatization of State and Municipal
Property.A State Privatization Agency and a State Privatization
Commissionwere established in late 1995 to administer the process.
Accordingto the Law, the second phase will call for cash privatization of remainingstate and municipal property at market prices. Local and foreign investors willhave equal rights in purchasing the companies offered for the privatization inLithuania. During the second phase of privatization the government will have todecrease its control in the sectors of economy generally recognized as thestate monopoly through the cash sales. According to the Law on Privatizationall bidders have equal rights in the privatization process. Previously existingconcessions for the employees and management have been eliminated from the newLaw.
Duringthe second phase of privatization the amount of investment into
Lithuaniawas comparatively small. Investors had to lodge documents with many differentinstitutions, and therefore the privatization procedure took some time.Individual ministries were not interested in preparation of objects forprivatization. Besides, legally the former privatization institutions had noright to transfer obligations of enterprises to the purchasers because theywere not real managers of enterprises.
.New laws of privatization and State Property Fund (SPF) were passed in
November1997. According to the aforementioned Law restructuring
LithuanianPrivatization Agency established the SPF and other related to privatization andproperty management institutions. SPF holds in trust, uses, disposes andprivatizes securities and other state-owned property transferred to it by theGovernment of the Republic of Lithuania.
Thereare several possible methods of privatization:
.public subscription for shares;. public auction;. public tender;. directnegotiations;. lease with an option to purchase;. transfer of the state ormunicipal control of an enterprise controlled by the state ormunicipality.PHASE OF PRIVATISATION, 1998 TO DATE
Anew, amended privatisation law has been approved in the Seimas recently,November 1997. The law amends the current privatisation law. The proposedchanges into the law are following: i) to establish the State Property Fund(SPF) as the successor to the enterprise founder found in the current law; ii)to bring certain procedures of the current law into line with operation ofproposed SPF and; iii) to do technical changes (but not substantial) to thecurrent law.
Thekey policy change, proposed by the new law, is the replacement of the role ofenterprise founder and many of responsibilities of the Privatisation Agency bythe SPF. SPF holds in trust, uses, disposes and privatises state-ownedproperty. As time showed, the branch ministries had too many conflicting policyobjectives and wished to keep enterprises that the Government has decided tosell, so, in brief, privatisation process by new law is made less bureaucratic.The SPF co-ordinates the privatisation process in Lithuania and directlyorganizes privatisation of largest state- controlled entities in industry andinfrastructure. Privatisation of these enterprises is carried out throughtransparent competitive procedure of international tenders prepared andexecuted by internationally renowned advisors and arrangers. First of all,public tender is announced to prepare the privatisation program for the companyby retaining a leading adviser. During the tender, consultants having anextensive experience of privatisation in the relevant sector are selected toprepare an attractive privatisation program and provide financial, technicaland legal advice for the Government of Lithuania concerning the enterprise tobe privatised. When the program is to be approved by the PrivatisationCommission and the Cabinet of Ministers a tender is to be announced for theprivatisation of the company where the object shall be sold.
RecentlyPublic Limited Companies Lithuanian Telecom («Lietuvos Telekomas»)and Hotel Lietuva (Vie?butis «Lietuva») have been privatised.Privatisation of these enterprises is carried out through transparentcompetitive procedure of international tenders prepared and executed byinternationally renowned advisors and arrangers. For the enterprises which havea strategic importance to the Lithuanian economy, the Government has devised aspecial procedure of two stages for their privatisation and some of them arealready privatised. Public Limited Companies Lithuanian Telecom (LietuvosTelekomas) has been purchased by the strategic investor — Consortium«Amber Teleholding» of Sweden «Telia» and Finnish«Sonera». The Government accepted sale option of 60 per cent shares.In the energy sector, the oil refinery AB «Ma?eikiu Nafta» is alsobeing prepared to privatisation. Using the International tender, a consortiumof financial and other advisors, led by Banque Paribas, has been selected asthe winner of tender. At the moment it is under the negotiations with potentialinvestors. The Government of Lithuania is also privatising two airlines:«Lietuvos avialinijos» and «Aviakompanija Lietuva».Recently, the companies have been consolidated so that «AviakompanijaLietuva» became a subsidiary of a major airline. The privatisation of thecompany is foreseen in 1999.
Privatisationof these entities is expected to achieve the following goals:
)to increase the efficiency of management and operation by introducing newtechnologies, investing additional funds and exploiting the experience ofinvestors in the relevant area; 2) to promote the development of enterprisesand markets; 3) to liberalize monopolistic markets.
Institutionstaking part in the privatisation of strategic objects are as follows:
)the Property Fund, the role of coordinator; prepares companies forprivatisation and carries out the technical work, 2) the PrivatisationCommission is responsible for the approval of final decisions and control ofthe privatisation process. 3) International tenders for privatisation ofstrategic objects are carried out by specially appointed Public TenderCommissions for the sectors of energy, transport and telecommunications.
PublicTender Commissions determine the criteria for the preparation of privatisationprograms based on the Government policy as well as practice and experience ofother countries. The main priorities of privatisation include not justmaximising the revenue from the privatised objects, but also attractingpotential investors and their contribution to Lithuania. Privatisation of thelargest objects in Lithuania is carried out in an open, transparent, efficientand rapid manner.:
I.Lithuanian Development Agency. Website: http:\\www.lda.lt II. ''LietuvosRytas" Nr. 8 (360)/ 1999 m. sausio 30 d; " Valstyb?s turto fondoveiklos ap?valga". p.16; III. Republic Of Lithuania Law On The StateProperty Fund.
Website:http:\\www.lrs.lt