APAPS identifies stumbling blocks

The decline of investor interest in privatisation and the high level of taxation have been some of the main factors negatively influencing the privatisation of various companies in the last few years. This is one finding of the activity report of the former APAPS (Privatisation Authority). The document was presented in a Government meeting yesterday, and analyses the development of the privatisation process from October 1992 – April 2004. It also looks at the main problems affecting the sale of state-owned enterprises (SOE). The external factors that had a negative influence on privatisation include the decline of investor interest in SOEs due to the numerous times that investor incentives had been suspended. The legal provisions facilitating the payment of budgetary debts for SOEs undergoing privatisation were also blamed, for being enforced too late or ignored completely. Another factor was the low appeal of SOEs due to their extensive arrears and high applicable taxation levels. ZF