The new Privatisation of State and Municipal Property Act was enacted on 4 July 1995 and came into force on 15 September 1995. The second stage of privatisation then started.
The main objectives of Lithuanian privatisation strategy are:
- to increase the share of private ownership in the overall Lithuanian economy.
- to attract foreign and Lithuanian investors.
- to create new jobs and improve employment.
- to improve the production structure.
- to create revenue for the state through privatisation.
- to restructure the overall Lithuanian economy.
Under the Act cash-based privatisation of the remaining state and municipal property is to take place at market prices. Local and foreign investors have equal rights in purchasing property and institutions to be privatised. To make the privatisation process more efficient, the Act provides for such methods as:
- public subscription for shares.
- public auction.
- open tender.
- sale of state and municipal property by direct negotiation.
- lease with the option to purchase.
State-owned shares can be sold through the National Stock Exchange to develop the capital market. According to the Privatisation Act, all citizens have equal rights in the privatisation process. There will be no concessions for employees or selected groups.
The Privatisation Act will have economical and social effects. In this stage, the ratio between state and private economic sectors will be set. A list of bodies to be privatised will be prepared annually and will be approved by the government.
While preparing for privatisation, enterprises will be restructured. It is expected that state property in the strategically important fields of energy, transport and communication will be privatised after the restructuring is completed.
Privatisation in Lithuania will be carried out by the following institutions:
- The Privatisation Commission.
- Lithuanian State Privatisation Agency under the Government of the Republic of Lithuania.
- Ministries and municipalities.
- Municipal privatisation commissions.
The Lithuanian State Privatisation Agency (LSPA) is a government institution and funded by the budget. It has been established to privatise enterprises and acts as an executive privatisation institution. Its main functions are:
- to form a list of the enterprises to be privatised and to submit it for confirmation to the government of the Republic of Lithuania.
- to prepare privatisation programs.
- on the recommendation of the founder of the enterprise, to determine the method of privatisation.
- to issue a Privatisation Information Bulletin, in which official announcements will be published.
- to look for potential investors in bodies to be privatised.
- to conclude the privatisation transactions.
The main task of ministries and municipalities as the founders of the enterprises to be privatised is to prepare them for privatisation. If the municipal council establishes municipal privatisation institutions, they shall have all the rights and perform all the functions of the Privatisation Commission and the Privatisation Agency established by the Act.
Lithuanian State Privatisation Agency
Gedimino avenue 38/2
LT-2600 Vilnius
Lithuania
Tel. 370 2 62 46 71
Fax 370 2 62 35 10
