Bilous: the value of Ukraine state property to be privatised, overpriced

The value of the state property of Ukraine, subject to privatization, greatly overstated, and the level of its attractiveness to investors is greatly overvalued. This was stated by Chairman of the state property Fund of Ukraine Igor Bilous in an interview DT.UA.

According to him, these circumstances seriously hamper the privatization process.

«We are too overestimate the value of state property and the level of its appeal. We have more than 90% of state assets commissioned 50-150 years ago, their separate parts stolen or illegally sold, and if we talk about state-owned enterprises — the majority has considerable debts. All this has an impact on their attractiveness,» — said the official.

According to him, today, many of the objects subject to privatization, have to sell for 8-10 times, lowering their price.

«Here are some examples: in 2016 we sold 40 of the enterprises at auctions, some of them were put up for sale for 3-4 times, for some have reduced the price 2-3 times, and was able to sell only 11, and only two of them the price during the bidding rose. We also tried to sell more than 280 small-scale privatization, but has been realized at auction only 21 objects (about one hundred went or «Dutch» auctions, or purchased one application). And this despite the fact that many items we put up for sale in 8-10 times,» — said Bilous.

Head of the SPF said that the independent appraisers, without which the SPF can’t put a price called too high prices for the objects of the Fund, subject to sale.

«Their assessment is almost always very high, pegged to the dollar, analogs of any sales or, even worse, advertisements for the sale of similar property on the market. But we know one thing — the price in the announcement of the sale and does another — the price of the transaction. It to you, usually no one will say,» he concluded.

Earlier the President of Ukraine Petro Poroshenko urged Western companies to participate in privatization in Ukraine.

Bilous: the value of Ukraine state property to be privatised, overpriced 21.01.2017

Январь 21st, 2017 by
36 queries