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Home > Privatization Alert - October 2009
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Privatization Alert - October 2009
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Focus: Privatization to the rescue?
Eastern Europe was badly hit by the financial crisis, with sharp economic contractions leaving government coffers stranded for funds as countries tried to stimulate their economies by running fiscal deficits. With budget forecasts not likely to return to surplus anytime soon and a wobbly global economic recovery afoot, governments in some Eastern European countries are turning to privatization to boost revenues. Poland’s Ministry of Treasury, for example, has unveiled new privatization guidelines that seek to expedite the privatization process. Poland has augmented the list of companies slated for privatization this year and next, and expects the proceeds to support state budgets over time. This is expected to help bridge the budget gap without having to resort to unpopular tax increases or spending cuts.
With similar intends Russia is proceeding with the sale of state-owned companies to help reduce the size of its fiscal deficit. Facing significant fiscal shortfalls, Russia has announced its intentions to re-engage in privatization and reduce the share of state ownership in the economy. The new privatization drive could begin as early as this year. It has been reported in the press that altogether some 5,500 companies will be put up for sale, some of them this year, but most are expected to be offered for sale in the second half of next year. Countries in other region may also be looking to reap similar benefits through privatization. India, for example, is in the process of launching a new round of privatizations, whose proceeds would also help reduce its fiscal deficit.
Status and upcoming transactions
Europe and Central Asia: Belarus has included Beltelecom in its privatization plan for 2009. Croatia is proceeding with the sale of several state-owned companies, including in its shipbuilding industry, during the last quarter of 2009. Russia has announced its plans to privatize one of Moscow’s international airports next year.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
Middle East and North Africa: Tunisia has posted a list of companies slated for sale (updated at end August 2009). Egypt is planning the next phase of divestment from public enterprises in the second half of next year.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
Sub-Saharan Africa: Kenya is proceeding with the privatization of sections of the port of Mombasa. Zambia is proceeding with the sale of a 75 percent stake in ZAMTEL (deadline for prequalification is October 16, 2009).
>> Complete list of regional project opportunities
>> Detailed country analysis by region
East and South East Asia: Korea has announced its intention to speed up divestment of its shares in the remaining 38 public sector firms, which are expected to be offered for sale in the course of next year.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
South Asia: India is preparing a list of companies slated for divestment for the next round of privatizations.
>> Complete list of regional project opportunities
>> Detailed country analysis by region
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