Vouchers - Life after Four Years of Death

President Ilham Aliyev signed on December 22 a decree "On Amendments to the Regulation" On the specialized check investment funds ". The document provides for the improvement of reporting of these structures.

However, he made confusion in the heads, as the maturity period of the state privatization shares (checks) according to the law "On privatization of state property" expired on 31 December 2010, and in Azerbaijan there are no such funds.

The regulation "On the specialized check investment funds" was approved on May 14, 1997. Since that time, there was an attempt to create only one such investment structure (Sigma), which later broke up without investing in vouchers collected from citizens.

Advisor to the President for Economic Affairs, Vahid Akhundov told Turan that he is not yet familiar with the text of the decree and will be able to comment on the situation on 25 December.

At the same time, it should be noted that in the information database of the State Committee for Securities, including, other outstanding Central Bank indicated and vouchers (http://scs.gov.az/new/?sec=faq&mid=66&sid=93&lang=1).

Recall that the State Committee for Property Affairs of 9 December 2010 officially warned citizens about the expiration of circulation of state privatization shares (checks) from 1 January 2011. From that date, the privatization of state property will be carried out only for money, the Committee said.

It is noteworthy that today started the next specialized cash auction for the sale of shares of privatized state-owned enterprises (http://emdk.gov.az/auksion/index.php/az/elanlar/518-s-hml-ri-2014-c-il-24-28-dekabr-tarixl-rind-ixtisasla-d-r-lm-pul-h-rrac-na-xar-lacaq-s-hmdar-c-miyy-tl-ri-haqq-nda-m-lumat).  These auctions are held since 2011, after specialized voucher auctions were discontinued.

Privatization shares (1 share = 4 checks) were issued in Azerbaijan since 1 March 1997. The country's population was distributed 31.9 million of the 32 million vouchers provided for the distribution.

Every citizen born before January 1, 1997 was donated 1 voucher share. Several privileged categories of citizens received several shares. According to of the State Property Committee, up to December 1, 2010, there were used and withdrawn from circulation 25.5 million vouchers, which represents approximately 80% of the distributed shares.

In compliance with the law, checks were also used in the process of small privatization (15% share in objects) and as a tool for the acquisition of 15% of preferential shares by members of labor collectives of joint-stock companies.

The initial term of the vouchers in Azerbaijan limit the validity of the first state privatization program - until the end of 1998. However, it has been extended several times: until January 1, 2002, until July 1, 2004, until January 1, 2008, until January 1, 2010 and until January 1, 2011.

Methods of privatization of state property in the post-voucher period were determined by the decree of President Ilham Aliyev on June 22, 2010, "On amendments and additions to the State program of privatization." According to these changes, shares provided for sale through voucher privatization and cash auctions will be sold at specialized cash auctions from 1 January 2011. The auctions will be held for five days. Members of the personnel of small enterprises and joint stock companies will also get their shares for money. --08D--