The privatization of the 1400 designated enterprises is likely to be completed by the end of this year. A clear sign of success is that the number of shares on offer has already proven to be greatly below demand and therefore the Association of Investment Funds has asked the Government to add more companies to the offer list.

Under a scheme launched at the beginning of 1994, each Slovenian citizen was entitled to receive privatization coupons worth SIT 100,000 - 400,000, (approx. USD 790 - 3200 at current rate) depending on age. The coupons could be then be used for purchasing companies' shares or securities issued by any of the 24 investment funds. The total issue of such coupons amounted to SIT 563 billion (approx. USD 4.4 million). Slovenes have already spent 90 % of their coupons, half of which were exchanged for investment fund securities.

The privatization process has been completed in the case of more than 400 enterprises, and another 1000 are well on the way.

It is forecast that some strategic companies, including the public utilities, the national telecom company and two major commercial banks, will not be participating in the current scheme. It is understood, however, that the Government does not necessarily wish to retain ownership, but that a special privatization scheme is expected for them later on.

The content of this article is intended to provide general information on the subject matter. It is not a substitute for specialist advice.

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