STATE PROPERTY FUND CANCELS ORDERS RESTRICTING CORPORATE PARTICIPATION IN NONCOMMERCIAL TENDERS

On March 25, Ukraine’s state property fund canceled as contradicting current legislation two of its earlier orders, dated February 20, 1998, on holding non-commercial tenders and on additional terms for non-commercial tenders.

The first order provided that participants in noncommercial tenders for the sale of corporate stock in exchange for investment commitments could be only legal persons having the right to execute investment on their own behalf. The order also banned trust companies (commercial banks involved in proxy operations with privatization documents) from being final winners in the already begun noncommercial tenders for the sale of stock for privatization certificates.

The other order imposed additional conditions for participants in noncommercial tenders. Commercial banks had to submit, in addition to the other required documents, a National Bank of Ukraine certificate confirming the size of commercial bank’s own assets, and the size of the investment could not exceed 50% of the bank’s own assets. Other companies were to submit a certificate issued by its bank confirming the availability of the funds required for the investment or a bank loan agreement.