Tuesday, November 06, 2007

Selling public enterprises of Moldova

The minister of economy, Igor Dodon, made today a declaration about some huge, i would say enormous changes in the economy of Republic of Moldova. Starting from the 16th of November, on the local exchange sales are going to be sold the stocks of 83 state enterprises. Starting from 0,01% of stocks and till 100% of stocks. The ministry of economy is planning to sell the stocks in a week. This was probably the weirdest part of the news.

Anyway this decision was taking due to the influence of external experts and analytics, most of European Community. Because the situation with monopolization is really acute in Moldova, they were obliged to make such a reform. There is introduced a new law, which gave the possibility to the Government to sell some enterprises. There is also another law on the state enterprises which cannot be sold, there is a list of 300 enterprises, such as Termocom.

The problem is that why do they have to sell the stocks of all the state enterprises in such a short time? And why did they announce it only some days before the sales? It is not enough time for other investors, especially abroad, to analyze, to get to know the Moldovan market and enterprise itself. Some analytics consider that this was made intentionally in order to allow the local and previously informed investors to buy the enterprises, and create in such a way an unfair competition.

In general this is a healthy decision. Which was suggested by a lot of international bodies. In fact, as usual the procedure, the moldovan way of concluding affairs and organizing things in business and government is a typical one, and characteristic for this region. But I hope it will not ruin this wise initiative this time, but I'm not sure about it.