Azerbaijani officials privatized objects in German style

Despite the legal framework in Azerbaijan, the method of selling state enterprises by declaring them bankrupt is not practiced. German experts held a regional workshop in Jalilabad last week, which gave a detailed account of the European experience in sales of bankrupt state-owned enterprises.

During the workshop organized by the German Society for International Cooperation (GIZ) the project manager for cooperation with the State Committee on Property Wolf Schmieder spoke on concrete examples regarding companies in Germany and other EU countries and reported on the mechanism of the preparation and implementation of the restructuring plan, the organization of the liquidation process and evaluation of residual cost of the bankrupt enterprise. Experts shared experiences in appropriate choice in the privatization of one of the methods (collapse and liquidation).

Enterprises jusually not able to fulfill obligations to the creditors in Azerbaijan are privatized by public auction. Buyers in these cases are interested not in the financial position of the object, but in its specific location. - 08D-