Economist: Selling state companies is the worst thing to do
04.05.2009, 15:34 Currently possible sale of state-owned
companies to fill the budget gap would be the worst thing to do, Heido Vitsur,
the economy expert at Estonian Development Fund said.
“Selling state-owned companies would be the worst of all possible choices.
Raising taxes, cutting costs and borrowing is better than that,” Vitsur said.
He said that the sale of Estonian Railways and Tallinna Vesi come to mind. In
both cases the buyer decreased share capital or took money out of the company in
that way.
“Whether it’s the Port of Tallinn or Eesti Energia, it’s a well-capitalized
company where one may take capital out enough and then some,” Vitsur said.
He said that monopolies aren’t sold in situation in which we can’t regulate
their activities. We have no positive example in this field.
In addition it’s currently bad time to sell a company.
“Bringing 25 pct holding to the market would be thinkable, but only is the
market and we are ready,” Vitsur said.