MAIN PRIVATISATION PROBLEM IN TRANSITION COUNTRIES LACK OF STRATEGY

DUBROVNIK, Oct 27 (Hina) - Countries in transition attending an international conference on privatisation in the southern Croatian port of Dubrovnik on Tuesday presented their privatisation models. Most countries in transition have completed mass coupon privatisation, which is now to be followed by the privatisation of public enterprise. The problems these countries encountered in the process were the non-existence of a privatisation law, slow-going privatisation in general and especially that of state companies and banks, the currently difficult situation of loan-purchased companies, and the lack of a privatisation strategy. The state often undertook the financial restructuring of companies and banks instead of privatising them, which proved as a poor choice in most countries. Countries in transition ventured into mass privatisation as in the contrary most ownership would have stayed with the state, which was unable to manage so many companies. Mass privatisation in the Croat-Muslim Federation of Bosnia- Herzegovina (BH), one of BH's two entities, has not yet begun due to the recent war, but according to the federal law the process should be completed in the next two years, said Adnan Mujagic, head of the Federation's Agency for Privatisation. Taking part in mass privatisation will be all adult citizens who will be given coupons. Coupons will also be given for all foreign currency savings and unpaid soldier salaries. A representative of the Czech State Property Fund, Roman Ceska, called on colleagues from other countries to use the experience of others since, he said, certain mistakes his country had made in privatisation were now being highly paid. (hina) ha jn