The effectiveness of state-owned enterprises is currently being discussed at a meeting in the Palace of Independence. The discussion is focusing on a draft decree initiated by the Government, related to the new management of enterprises - the so-called Institute of Trust Management. The purpose of the innovation is to make unprofitable enterprises operate efficiently by handing them over for trust management on a competition basis for five years with control to be exercised by the state. In case contract terms and conditions are fulfilled properly, the temporary manager has the right to become the owner. The decree provides for exemptions from the land tax, rent for the land plots and the real estate tax. A thorough calculation and feasibility of the proposed innovations is the President’s constant requirement.
The proposed draft decree may apply to over 2,000 state organisations, including over 350 agricultural enterprises.
