Bulgaria Bolsters Mass Sell-Off

xSOFIA -- Bulgarian President Zhelyu Zhelev has given the go-ahead for mass privatization by signing legal amendments which lay the foundations for the selling off of some 500 state firms."We are forced to study from the experience of the Czech republic in the field of mass privatization," Zhelev told reporters last week at a joint press conference with visiting Czech President Vaclav Havel.A mass privatization scheme is well advanced in the Czech republic, and Bulgaria hopes to use elements of the plan to boost the sluggish sell-off of its own state firms. Privatization in Bulgaria has been mired in political and economic struggles for four years.Zhelev consulted political parties, business communities and trade unions for 14 days before signing the amendments after some groups announced their opposition to the plans.The plans stipulate that each Bulgarian over 18 years of age will get a privatization certificate worth 25,000 levs ($464.7) on the payment of 500 levs.The certificates may be exchanged for shares in some 500 state-owned firms with long-term assets totaling 110.8 billion levs, 36 percent of the total for state industry.John Wilton, the Sofia representative of the World Bank, which is advising the government on the scheme, said that if all went well, the first wave of privatizations could start in nine months time.But he said the scheme would first have to be amended to stop it becoming too complicated."Some aspects of the law need to be revised, in particular the part that allows coupon-holders to use their shares as cash," said Wilton. "Otherwise the scheme may be undermined."The bank has drafted a separate law for the rules governing investment funds which would manage the certificates."If you do mass privatization properly it is very quick and very equitable," said Wilton, adding that a major early benefit of the Czech system was the development of a secondary stock market.