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Sale of Enterprises as Property Complexes

14.04.2017 | 10:51


In accordance with Article 1 of the Law of the Republic of Belarus “On privatization of state property and reorganization of state unitary enterprises into joint stock companies (No. 2103-XІІ, 19 January 1993, edited on 16 July 2010, hereinafter referred to as the Law on Privatization):

Privatization of state property shall mean the sale of objects of privatization to subjects of privatization in the manner and terms stipulated by the law.

Objects of privatization shall mean enterprises as property complexes of state unitary enterprises.

Major principles of privatization as stipulated by the Law on Privatization: 


Privatization plans shall be compiled for a period of three years and shall be approved: 


For an enterprise to be privatized as property complex at an auction (tender), a privatization authority shall set up a commission for privatization, which shall: 


After determining the assets of the enterprise to be privatized as property complex and before a decision on its privatization is made, the general manager of the state unitary enterprise shall formalize, in accordance with the law, state registration of the enterprise as property complex and the rights to it. 

In the event of sale of an enterprise as property complex through an auction (tender), its initial sale price shall equal its estimated value, unless otherwise decided by the President of the Republic of Belarus, provided that the enterprise employs no more than 100 people and it outstanding financial liabilities on the date of determining the estimated value of the enterprise as property complex equal or exceed the book value of the assets.
   
The estimated value of an enterprise as property complex shall be determined on the first day of the month and shall be valid for 12 months from the date on which it is determined.

The estimated value of an enterprise as property complex shall be established in the manner prescribed by the regulations on the procedure for determining the estimated value of an enterprise as property complex of a state unitary enterprise in case of privatization, the size of the authorized fund of the joint stock company established in the process of reorganization of a state unitary enterprise, and the value of the assets of the state unitary enterprise that becomes part of a joint stock company. The regulations were introduced by Resolution No.1 of the State Property Committee of the Republic of Belarus of 4 January 2011 “Concerning some measures for the implementation of Law of the Republic of Belarus of 16 July 2010 ‘On the introduction of amendments and additions to certain laws of the Republic of Belarus and invalidation of certain legislative acts of the Republic of Belarus and their individual provisions on the privatization of state property’.”

In the event of sale of an enterprise as property complex through an auction (tender), its initial sale price shall equal one base amount on the day of the auction established in accordance with the legislation, provided that the enterprise employs no more than 100 people and it outstanding financial liabilities on the date of determining the estimated value of the enterprise as property complex equal or exceed the book value of the assets.


Privatization decisions shall be made:

   
Decisions on privatization of enterprises as property complexes through an auction (tender) may contain the following conditions:


In the event of sale of an enterprise as a property complex through an auction (tender) with the initial sale price equal to one base amount, the owner of the enterprise to be privatized as property complex shall discharge the financial liabilities of the state unitary enterprise, the property complex of which he has acquired. The owner shall preserve a certain number of jobs, ensure proper production and economic operation of the enterprise, and meet other terms and conditions of the purchase and sale agreement.

The payment for the object of privatization shall be made no later than 30 days from the date of conclusion of the purchase and sale agreement, unless otherwise indicated in the privatization decision.

A loss-making state organization may be sold to a legal entity through an auction (tender) in the process of privatization in accordance with Decree No.113 of the President of the Republic of Belarus of 25 February 2008 “Concerning the procedure and conditions of sale to legal entities of enterprises as property complexes belonging to loss-making state organizations.”


Buyers shall fulfill the following mandatory terms:


The initial sale price of the enterprise shall be set at 20% of its estimated value. If the estimated value of the enterprise is equal to zero or below zero, the sale price shall make up one base amount.

Buyers shall be provided with: 


Those interested in privatization are invited to apply to the State Property Committee of the Republic of Belarus at: 12 Pereulok Krasnozvyozdny, Minsk
Phone:
+375 (17) 288-11-52,
+375 (17) 294-07-49,
+375 (17) 294-46-76  



This page is available at:
http://www.gki.gov.by/en/sale_of_enterprises_as_property_complexes/
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Republic of Belarus
12 Krasnozvyozdny Pereulok, Minsk, 220005
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