Реферат: Privatization process in Lithuania
HISTORIC OVERVIEW OF PRIVATISATION PROCESS IN LITHUANIA
Privatization process was launched in Lithuania in September 1991 and since
then it has constituted an integral part of Lithuania's economic reforms. The
entire privatization process may be divided into three major stages:
· The first stage covers the privatization that took place from
September 1991 until July 1995. This phase may be called a mass privatization
for vouchers with some elements of cash sales. The voucher method was chosen
as the most effective way of transferring the ownership of the state-owned
enterprises. The privatization of state assets in Lithuania during that phase
has been based on the Law on Initial Privatization of State Property passed
in late 1991 and amended in 1993. As a result of that phase, Lithuania has
become a country with a majority of the GNP generated in the private sector.
· The second phase of privatization started in July 1995 with the
introduction of a new Law on Privatization of State and Municipal Property.
A State Privatization Agency and a State Privatization Commission were
established in late 1995 to administer the process. According to the Law, the
second phase will call for cash privatization of remaining state and
municipal property at market prices. Local and foreign investors will have
equal rights in purchasing the companies offered for the privatization in
Lithuania. During the second phase of privatization the government will have
to decrease its control in the sectors of economy generally recognized as the
state monopoly through the cash sales. According to the Law on Privatization
all bidders have equal rights in the privatization process. Previously
existing concessions for the employees and management have been eliminated
from the new Law. During the second phase of privatization the amount of
investment into Lithuania was comparatively small. Investors had to lodge
documents with many different institutions, and therefore the privatization
procedure took some time. Individual ministries were not interested in
preparation of objects for privatization. Besides, legally the former
privatization institutions had no right to transfer obligations of
enterprises to the purchasers because they were not real managers of
· New laws of privatization and State Property Fund (SPF) were passed
in November 1997. According to the aforementioned Law restructuring
Lithuanian Privatization Agency established the SPF and other related to
privatization and property management institutions. SPF holds in trust, uses,
disposes and privatizes securities and other state-owned property transferred
to it by the Government of the Republic of Lithuania.
There are several possible methods of privatization:
· public subscription for shares;
· public auction;
· public tender;
· direct negotiations;
· lease with an option to purchase;
· transfer of the state or municipal control of an enterprise
controlled by the
state or municipality.
THIRD PHASE OF PRIVATISATION, 1998 TO DATE
A new, amended privatisation law has been approved in the Seimas recently,
November 1997. The law amends the current privatisation law. The proposed
changes 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 of proposed SPF and;
iii) to do technical changes (but not substantial) to the
The key policy change, proposed by the new law, is the replacement of the
role of enterprise founder and many of responsibilities of the Privatisation
Agency by the SPF. SPF holds in trust, uses, disposes and privatises state-
owned property. As time showed, the branch ministries had too many
conflicting policy objectives and wished to keep enterprises that the
Government has decided to sell, so, in brief, privatisation process by new
law is made less bureaucratic. The SPF co-ordinates the privatisation process
in Lithuania and directly organizes privatisation of largest state-controlled
entities in industry and infrastructure. Privatisation of these enterprises
is carried out through transparent competitive procedure of international
tenders prepared and executed by internationally renowned advisors and
arrangers. First of all, public tender is announced to prepare the
privatisation program for the company by retaining a leading adviser. During
the tender, consultants having an extensive experience of privatisation in
the relevant sector are selected to prepare an attractive privatisation
program and provide financial, technical and legal advice for the Government
of Lithuania concerning the enterprise to be privatised. When the program is
to be approved by the Privatisation Commission and the Cabinet of Ministers a
tender is to be announced for the privatisation of the company where the
object shall be sold.
Recently Public Limited Companies Lithuanian Telecom ("Lietuvos Telekomas")
and Hotel Lietuva (Viešbutis "Lietuva") have been privatised.
Privatisation of these enterprises is carried out through transparent
competitive procedure of international tenders prepared and executed by
internationally renowned advisors and arrangers. For the enterprises which
have a strategic importance to the Lithuanian economy, the Government has
devised a special procedure of two stages for their privatisation and some of
them are already privatised. Public Limited Companies Lithuanian Telecom
(Lietuvos Telekomas) 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 "Mažeikiu Nafta" is also being prepared to
privatisation. Using the International tender, a consortium of financial and
other advisors, led by Banque Paribas, has been selected as the winner of
tender. At the moment it is under the negotiations with potential investors.
The Government of Lithuania is also privatising two airlines: "Lietuvos
avialinijos" and "Aviakompanija Lietuva". Recently, the companies have been
consolidated so that "Aviakompanija Lietuva" became a subsidiary of a major
airline. The privatisation of the company is foreseen in 1999.
Privatisation of these entities is expected to achieve the following goals:
1) to increase the efficiency of management and operation by introducing
new technologies, investing additional funds and exploiting the experience of
investors in the relevant area;
2) to promote the development of enterprises and markets;
3) to liberalize monopolistic markets.
Institutions taking part in the privatisation of strategic objects are as
1) the Property Fund, the role of coordinator; prepares companies for
privatisation and carries out the technical work,
2) the Privatisation Commission is responsible for the approval of final
decisions and control of the privatisation process.
3) International tenders for privatisation of strategic objects are
carried out by specially appointed Public Tender Commissions for the
sectors of energy, transport and telecommunications.
Public Tender Commissions determine the criteria for the preparation of
privatisation programs based on the Government policy as well as practice and
experience of other countries. The main priorities of privatisation include
not just maximising the revenue from the privatised objects, but also
attracting potential investors and their contribution to Lithuania.
Privatisation of the largest objects in Lithuania is carried out in an open,
transparent, efficient and rapid manner.
I. Lithuanian Development Agency. Website: http:\\www.lda.lt
II. ''Lietuvos Rytas" Nr. 8 (360)/ 1999 m. sausio 30 d; "
Valstybės turto fondo veiklos apžvalga". p.16;
III. Republic Of Lithuania Law On The State Property Fund.