[A-List] Imperialism: another IMF success

["Keaney Michael" <Michael.Keaney@xxxxxx>]

Turkey to go private

 Banks, airlines, oil pipelines, utilities and raki distillers
 go on sale in a $10bn privatisation

 By Leo Lewis

 Independent on Sunday, 20 January 2002

 The cash-strapped Turkish government is planning a huge
 clearance sale that could place most state-run companies in
 private hands by the end of next year. The privatisation
 programme, which will be unveiled in full over the next few
 weeks, could raise an estimated $10bn (£6.9bn) for the
 country's troubled public purse, and is expected to attract
 much outside investment, particularly from emerging-market
 investors in the US and UK.

 The companies in line for privatisation include Turkish Airlines;
 Petrol Ofisi, the state petrol station chain; Tupras, the oil
 refiner; Tedas, the nationalised electricity company; Botas, the
 national oil and gas pipeline company; Vakifbank, the
 government-owned savings bank; and Tekel, the state spirits
 and tobacco monopoly. 

 Analysts inside and outside Turkey have said for many years
 that the government should sell. But political objections have
 always stood in the way. Now, after a devaluation crisis last
 year, economic necessity is sweeping all obstacles aside. 

 Merrill Lynch's Turkey analyst, Zek Ozturk, said: "It is now
 clear the country is ready to denationalise these companies.
 Last year a lone minister objected to the sell-off of Turk
 Telecom; the lira fell 10 per cent against the dollar, and he was
 forced to resign." 

 The government's plans have also been prompted by calls from
 the International Monetary Fund for the country to get its public
 finances in order and, specifically, address its critical
 debt-to-GDP ratio. 

 "This is a very healthy way for the state to gain some breathing
 space," Mr Ozturk said. "The background issues are being
 resolved more quickly because it is so important. Decisions
 that once took years now take hours." 

 Despite its many economic problems, Turkey has recently
 enjoyed favoured status among its emerging market peers. The
 sale of so much of the nation's basic industry is certain to
 enhance that, since many of the state companies are the best
 run in the country. 

 Particularly attractive will be Tekel, which dominates the
 market for raki, the national aniseed spirit. Some have
 speculated that eventually Tekel, Botas and the state's oil and
 gas interest could be bought outright by larger European
 companies.

Full article at:
http://news.independent.co.uk/business/news/story.jsp?story=115403

Michael Keaney
Mercuria Business School
Martinlaaksontie 36
01620 Vantaa
Finland

michael.keaney@xxxxxx