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Serbian Parliament Adopts Privatization Laws

BELGRADE, Jun 28, 2001 -- (dpa) The Serbian parliament
on Wednesday adopted a package of reform laws
regulating privatization and providing for full
ownership transformation within four years.

The transformation of the so-called socially-owned
enterprises to state or private capital would be led
by the privatization agency, established by a separate
law.

An invention of the late Yugoslav president Tito's
version of socialism, the socially-owned capital - and
its unclear status as "everybody's and nobody's" - was
seen as a major deterrent to foreign investors and
also created broad grounds for abuse.

Some of socially-owned companies, including those of
strategic interest or those unable to draw buyers,
would presumably be transformed to state ownership
before their future status is determined.

The package also includes laws establishing a shares
fund and the central registry of shares.

The new privatization law retains the distribution of
a stake to employees, but it reduces it to between 10
and 30 percent, depending on the speed and the type of
the transformation.

Quick sale of capital directly to a buyer increases
the stake of employees, while slow transformation and
sale through a tender reduces it.

The legal package also establishes free trade of
securities on the financial market.

Serbia is one of two republics remaining in the rump
Yugoslavia, which has disintegrated during conflict
over the past decade.

(C)2001. dpa Deutsche Presse-Agentur GmbH. 


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