Privatization & Restructuring of Banks & Enterprises Technical Assistance Project

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The Privatization and Restructuring of Banks and Enterprises Technical Assistance Project aims to facilitate private sector-led economic growth in the Federal Republic of Yugoslavia (FRY) and the Republic of Serbia. There are two project components. The first launches and implements restructuring and privatization of large problematic socially-owned enteprises (SOEs); and the second component implements a comprehensive banking sector restructuring strategy aimed at creating a more viable financial sector. Specifically, the project establishes a consistent approach and methodology for the restructuring and subsequent privatization of large problematic SOEs; supports the restructuring and subsequent privatization of large loss-making enterprises by funding expert "restructuring agents" to prepare and implement "restructuring programs," privatize the saleable business units using internationally accepted transparent sales techniques, and put the unsaleable business units into bankruptcy; increase the capacity of the Privatization Agency to work with the restructuring agents to carry out the above-mentioned restructuring programs; and support the restructuring or liquidation of insolvent banks under the control of the Bank Rehabilitation Agency (BRA) and the privatization of most majority state-owned banks.