Turkmenistan to begin privatisation of state property in July

Photo: Turkmenistan to begin privatisation of state property in July / Turkmenistan

Ashgabat, Turkmenistan, Jan. 6
By Huseyn Hasanov - Trend:

The process of de-nationalisation and privatisation of state property will begin in Turkmenistan from July 1, 2014 in accordance with the law adopted in December 2013, the Turkmen Parliament said today in a statement.

'The non-state sector has been formed in the economy of the country', the statement said. 'Market institutions and such a new sector as the market of securities, joint stock companies, banks, a system of institutional investors and insurance companies are being developed. Moreover, the shortage of goods was overcome and an internal conversion of the national currency, the manat was ensured'.

According to the report, for the first time the relevant law defined the main principles of de-nationalisation and privatisation including the equality of rights of citizens, ensuring the social protection of employees and state and public control while implementing measures for the state property's privatisation.

"The new feature of the law is that such forms of de-nationalisation and privatisation as the sale of the state-owned shares, those on the stock exchanges, the direct sale of privatisation sites and sale of state-owned facilities used on lease terms were additionally introduced into the relevant articles," Parliament said.

Moreover, the law envisages the transformation of a state enterprise into a joint stock company or a company of another legal form established by the state or the state being one of the founders.

According to the report, the fourth part of Article 18 of the new law envisages that the term of making the funds for the privatisation of state property specified in the purchase-sale contract may be postponed by the authorised body for up to three years and by the Turkmen Cabinet of Ministers up to five years in certain cases upon the proposal of the interdepartmental central committee.

'This situation will solve a number of problems relating to the possible instability in the operation of privatised enterprises and the need for updating and re-engineering', the statement said.

translated by NH
edited by SM

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