The Privatization Agency, currently a state administration body, is suggested to be turned into a trade company wholly-owned by the state. The transformation is provided by the proposed amendments to the Privatization and Post-Privatization Control Act, presented by Deputy Prime Minister and Economy Minister Lidiya Shuleva. The main reasons for such a decision are that the Privatization Agency who is currently in charge of both preparations for sell-off and the actual divestiture lack the capacity to handle the two tasks equally well and the preparation for privatization will be better performed by the respective ministers.
According to the proposed amendments, some of the duties assigned to the respective ministry will include determining the share to be privatized, the method for privatization and the requirements towards the potential buyers. The Privatization Agency itself will operate as a trade agent and will rake in a percentage of the revenues from finalized deals.
The suggestions concerning the Post-Privatization Control Agency provide for it to be authorized to outsource its supervising functions to private advisory or legal firms. The latter will be entitled to control the proper implementation of the privatization deals and collect receivables arising from contractual defaults. Among the proposals is the Post-Privatization Control Agency to pay them a percentage of the penalties and dues collected.