At its regular session on Thursday, the cabinet approved with some remarks a draft amendment to the law on the terms of the transfer of state property to other persons. The revised wording will enable completing privatization of „strategic companies“ which was prevented by the present text of the law. Minister of Economy Robert Nemcsics informed SITA that the comments of the cabinet were only of legislative and technical character. The amendment from the Ministry of Economy proposes to cancel as of December 1, 2003, the blocking regulations that the government must keep a 51-percent stake in companies deemed strategic.

The bill does not dictate what portion of strategic companies the government should keep but it leaves it up to the cabinet to decide in each case individually. The accurate timetable of the procedure of privatization does not exist yet, Mr. Nemcsics said. „The cabinet will decide which of the companies will be privatized as first,“ said the minister. Moreover, it is now difficult to estimate what proceeds from the privatization should be expected.

For cases of violations of legal regulations in privatization, the draft amendment suggests prolonging the period for filing a motion demanding cancellation of transfer of a privatized stake from three to ten years.

The necessity to complete large-scale privatization is connected with the introduction of the new social security system, which requires significant funds to cover the costs of transition.

According to the draft bill, the railway network, railway reloading stations in Cierna nad Tisou and Matovce, surface and ground waters, forest fund and property destined for providing postal services should remain excluded from privatization.

The list of natural monopolies features gas utility Slovensky Plynarensky Priemysel, power producer Slovenske Elektrarne, electricity transmission company SEPS, regional power distribution companies VSE, ZSE, and SSE, crude oil pipeline operator Transpetrol , water management company Slovensky Vodpohospodarsky Podnik, national railway company Zeleznice SR, and forest management company Lesy SR.

The valid large-scale privatization law limits privatization up to 49-percent stakes in strategic companies and thus prevents the government from selling the remaining stakes.