The Slovak cabinet is expected to submit a draft revision to the large-scale privatization law, enabling the government to sell its remaining stakes in strategic companies, to parliament already in September. “I assume that deputies would approve it,” said Economy Minister Robert Nemcsics. Ruling coalition partners agreed on opening of the large-scale privatization law on Tuesday.

Mostly requirements of Finance Minister Ivan Miklos are behind reopening law. The Finance Minister has maintained that privatization proceeds are necessary for keeping reforms running as well as for patching holes in the state budget. Furthermore, proceeds of the National Property Fund (FNM) are lower than projected, said Mr. Nemcsics. Originally, the FNM counted on proceeds from the sale of a 49-percent stake in dominant power producer Slovenske Elektrarne this year. However, the sale is taking longer than expected. The cabinet will assess privatization of its stakes in strategic companies on a case by case basis. It will compare one-off privatization proceeds and long-term revenues from dividends.

After the session of the Coalition Council on Tuesday, Prime Minister Mikulas Dzurinda said that in case of sale of the remaining stake in lucrative gas utility Slovensky Plynarensky Priemysel (SPP) the government would not hurry.

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.