Parliament approves law on privatization

Parliament approves law on privatization

603
Ukrinform
The Verkhovna Rada, Ukraine's parliament, has adopted the law on the privatization of state property.

A total of 266 lawmakers supported the respective bill, No. 7066, at second reading and as a whole on Thursday, an Ukrinform correspondent reports.

The goal of the document is to significantly improve, simplify and reduce privatization procedures in order to achieve high pace of privatization, transparency and openness of the privatization process, and attract a wide range of investors to purchase state property.

According to the document, the list of large privatization facilities subject to sale is approved by the Cabinet of Ministers of Ukraine upon a motion from the State Property Fund of Ukraine. The lists of small-sized privatization facilities subject to sale are approved by the State Property Fund of Ukraine.

The document establishes requirements for holding auctions on the sale of small and large privatization facilities. For the sale of a privatization object at an auction the state authorities will create an auction commission that will draw up the terms of sale.

Social and cultural facilities are privatized on the condition of maintaining a sphere of activity; whereas social and cultural facilities, which have not functioned for more than three years or are in a state of emergency, may have their sphere of activity changed.

The sale of objects at the auction is carried out in the presence of not less than two participants in the auction and is considered to be complete if at least one step of the auction is made. If only one bidder applies for participation in the auction on the sale of a privatization facility, the auction is deemed to have not taken place. In the event that the object offered for sale at the auction is not sold, the state privatization body decides on the privatization of such an object at an auction without conditions or at an auction with a lower starting price.

If an object of privatization is put up at an auction with a decrease in the starting price for the first time, the starting price is reduced by the auction commission by 25%. If the object of privatization is put up for sale at an auction with a decrease in the starting price for the second time, the starting selling price is reduced by the auction commission by 50%.

The document was adopted at first reading on November 9, 2017. The adoption of the privatization law is one of the main requirements from the IMF to grant Ukraine the next tranche.

op


Let’s get started read our news at facebook messenger > > > Click here for subscribe
Extended searchHide extended search
By period:
-
*/ ?>