Ministry publishes draft of Privatization Law

The Ministry of Economy has published a draft of the Privatization Law, which implies the process will end by December 31, 2014.

Privatized companies will be considered those which sign an agreement on the sale of capital or property by that date, i.e., those which adopt a restructuring program prepared in advance.

If the privatization does not end by December 31, 2014, the Privatization Agency, as it is said in a release, will submit a proposal for initiating bankruptcy, that is, liquidation proceedings.

The only exception is made for the companies of special interest for the state where the government can, by December 31, 2014, at the proposal of the Ministry of Economy, make a decision to halt the privatization process. In that case, the Agency is obligated to initiate the procedure of setting up a managing body in line with the Corporate Law within 30 days.

Privatization will be based on creating conditions for economic development, ensuring full transparency, disabling corruption and money laundering, and forming prices in line with fair and market terms.

Appraisal of the value of capital and property is carried out in line with international accounting standards and the sales cannot be completed below the minimum acceptable capital price.

As it has been stated, capital sales and restructuring plan can be carried out through capital increase, mutual investments, capital acquisition and management control with profit division.

Significant changes are in the pipeline when it comes to the role of the Privatization Agency and capital representatives. The Agency sells capital, i.e., property and promotes, initiates, carries out and controls the privatization process.

The ministry supervises the implementation of the provisions of this Law and regulations made based on it. During the privatization process, the competent board of the National Parliament of Serbia is accountable for the control of the Government of Serbia and the Economy Ministry.