KOSOVO: U.N. Prepares For Asset Sell-Off Despite Serbian Complaints (10 March)
The U.N. Mission in Kosovo is planning the first privatization of socially owned enterprises in the province, BBC Online reported yesterday.
UNMIK spokeswoman Sarah Hackaj said about 50 of Kosovo's 350 socially owned enterprises -- a setup that dates back to communist-era Yugoslavia -- will be sold, and the rest shut down. Hackaj said UNMIK does not know the value of the assets involved and that they will be "left up to the market."
Trade unions and the government of Serbia and Montenegro, of which the U.N.-administered province is still a part, have opposed the sales. Serbia last year appealed to the U.N. Security Council to suspend the program because of what it called a lack of consultation with Belgrade. In particular, Serbia is reportedly concerned about $1.4 billion in international debt that it has guaranteed but which is owed by Kosovar enterprises.
UNMIK has said the privatization is crucial for reviving the Kosovar economy. BBC Online reports that Kosovo is one of Europe's poorest regions, most working-age Kosovars are unemployed, outside donor support has dwindled and economic revitalization is needed after years of neglect under Serbia and Montenegro's predecessor state, Yugoslavia.
Six companies were to have been put up for sale this week, but advertisements of the sale were delayed because the United Nations has not yet passed land use regulations on disputed and unclear titles. "Once the [land use] regulation has been approved, it will be full-steam ahead with the advertisements," Hackaj said.
Wonder if Djindjic's replacement will oppose the sales.