The foundations of the
privatization process were laid in 1990, together with the issuance of Law no. 15,
according to which the state economic sectors were re-organized under autonomous
state-owned companies and trade companies. At that time, the share capital held by state
in trade companies amounted to 44.3%, the remaining one representing capital held IN
autonomous state-owned companies.
From the legal proceedings point of view, both the privatization
process and the re-organization process started in 1992, on the basis of Law 58/1991
regarding the privatization of the trade companies. First, that law referred to the
institutions that acted in specific fields. Thus, there were established the following
institutions: The National Agency for Privatization, the Private Ownership Funds and State
Ownership Fund.
The National
Agency for Privatization was the first institution established for the purpose
of carrying out privatization activities. The main task that was incumbent upon the said
agency was to accomplish the sale of the state-owned trade companies’ shares.
The Private
Ownership Funds – 5- were set up as joint stock companies that initially
held 30% from the share capital of the state-owned trade companies. These companies had to
give out bonus shares on the basis of ownership certificates.
The State
Ownership Fund - public institution, subordinated to the Parliament,
which initially held 70% from the share capital of the trade companies. They had to
prepare and gradually accomplish the trade companies’ privatization.
Subsequently, both the institutions and the privatization law, on the grounds
of the accumulated experience, underwent numerous modifications.
By law no. 99/1999 it was amended the privatization institutional system, as
the control of the State Ownership Fund over the privatization process was “broken”.
That normative act brought in the notion of “involved public institution”,
representing the seller of the state shares, the State Ownership Fund, the economic
ministries or the institutions of the local public administration. It was then when there
was regulated the privatization by way of territorial branches which, in this respect,
acquired attributions.
In December 2000, The State Ownership Fund was dissolved. The new institution
created, The Authority for
Privatization and Management of State Ownership
(APAPS), tasked with new attributions concerning the control over the compliance
with the contractual clauses and monitorization of the trade companies regarding the
accomplishment of the economic- financial performances assumed under the privatization
contracts, the re-organization of the trade companies and granting financial support.
On May 1, 2004, the institution underwent a new re-organization. Thus, it was
established The Authority
for State Assets Recovery (AVAS), public institution subordinated to the
Government of Romania, by the merger through absorption of former Authority for Banking
Assets Recovery (AVAB) with APAPS.
Legislation:
The legislative framework also underwent several changes:
- Trade
companies’ privatization Law no. 58/1991 established the privatization process
co-ordinates and, for the first time, it introduced the direct privatization
method;
- The first
amendments of this law were made by GEO 15/1997, of which methodological norms had
appeared in august 1997.
- As many of the
provisions of the re-organization law were not clear, in 1999 it was adopted Law 99
regarding some measures taken for the economic reform acceleration. For the first time the
privatization legislation was comprised into a single normative act.
- Another major
change made in the legislation was accomplished by Law no. 137/2002 regarding some
measures taken for privatization acceleration. It brought completions concerning the
possibility to sale for a symbolic price the shares held by state in non-attractive trade
companies, the re-organization of the trade companies’ debts by either a total or a
partial payment relief of the budgetary obligations, accelerating the merger operations,
the dissolution operations and trade companies’ liquidation.
- Also in 2002
it was regulated the post-privatization field, by GEO no. 25 regarding some measures for
monitoring the fulfillment of the obligations assumed under the trade companies’
privatization contracts. Subsequently, it was issued the Government Decision no. 40/2003
on the modification and completion of GEO no. 25/2002.
Privatization Process:
- At the end of 1992, FPS had a number of
companies of which share capital rose to ROL 45,212 bn During 1993- June 1, 2005, there
were concluded almost 10,800 sale-purchase agreements for over 7,640 companies.
- Among the most important privatizations:
SIDEX SA Galati, ALPROM SA Slatina, COST SA Targoviste, DACIA SA Pitesti, CIMUS SA
Campulung etc.
The main clauses included in the currently monitorized sale
– purchase agreements are:
- Clauses concerning the compliance by the buyers
with the technological investment agreements.
- Clauses regarding the accomplishment of the
assumed investment commitments.
- Clauses regarding the compulsoriness to raise the
share capital in AVAS’ favour, after the property right certificate over the
land has been acquired.
- Clauses regarding the compliance with the
obligations regarding the restricted sale of the assets and companies’ lands.
- Clauses regarding the compliance with the
obligation to keep the street – name share (until the conclusion of the additional
documents for the sale-purchase agreements), in accordance with GD no. 31/30.03.2003
- Specific clauses regarding the social
protection , maintaining the main line of activity, maintaining the number of the
employees, preserving the archive etc.
Currently, AVAS has in
post-privatization monitoring 7,340 sale-purchase agreements.
There were also cases when the buyers
failed to comply with the assumed commitments. In these cases the contracts were cancelled
and the companies returned to the state portfolio. Since 1993 and up to the end of May
2006, there were terminated over 1,450 sale-purchase agreements.
Some of these companies, such as
PETROTUB SA Roman, TEPRO SA Iasi, CSR SA Resita, were privatized once more, and other are
subject to privatization (LAMINORUL SA Braila, NITRAMONIA SA Fagaras).
At the beginning of June 2006, AVAS had
left in its portfolio 441 companies, of which 64 are state-owned. Of these, only 22 are
large companies – ANTIBIOTICE IASI, TRACTORUL SA, RULMENTUL SA Brasov, ELECTROPUTERE
SA Craiova, LAMINORUL SA Braila, NITRAMONIA SA Fagaras.
In AVAS’ portfolio there are also
57 companies with special status (banks, national and strategic institutes etc).
A series of companies subject to
privatization are already in different stages of privatization (offer submission,
negotiations) and for other companies privatization announcements are about to be made
public.
When the privatization process is not
possible, AVAS decides on the trade companies’ liquidation. Thus, these companies are
sold as whole or in productive flows, so that the viable core be preserved.
Authority for State Assets Recovery (AVAS)
Address:
50, Cpt. Av. Alex. Serbanescu St.,
District 2, Code: 014294, BUCHAREST
Phone: +40- 21- 303.61.22, 303.65.10, 303.64.01, 303.63.17; 303.66.70, 303.63.51,
303.66.56
Fax: +40- 21- 303.64.65, 303.65.21; 303.64.57, 303.65.47
E-mail: presa@avas.gov.ro / infopublic@avas.gov.ro
Internet Address:INTERNET Address: http://www.avas.gov.ro
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