Printer Friendly

THE END IN SIGHT: GERMANY'S TREUHAND AIMS TO FINISH PRIVATIZATION IN 1993

 THE END IN SIGHT:
 GERMANY'S TREUHAND AIMS TO FINISH PRIVATIZATION IN 1993
 FRANKFURT, Germany, Aug. 11 /PRNewswire/ -- Germany's Treuhandanstalt has sold 8,200 firms in eastern Germany, with 4,340 firms still available to investors, writes Deutsche Bank Research in its latest issue of "Focus: Germany." The agency is now working to accelerate its work and finish its mandate to privatize formerly state-owned enterprises by the end of 1993.
 After that date, the Treuhand's mandate will shift to dealing primarily with company closures, real estate management and private sector compliance with contractual obligations of pledged investments and job retention. If privatization continues at its current pace, the Treuhand projects that -- by the end of 1992 -- 90 percent of east Germans in paid employment will be working in non-Treuhand companies. DB Research notes that the number of east German employees working for Treuhand-owned companies has fallen from an original 4.1 million to 1 million in June 1992.
 To further speed privatization of 800 large enterprises and thereby generate more revenue, the Treuhand has called upon more than 100 investment banks to find investors throughout the world. Other enterprises are now being sold to banks, insurance companies and equity investment companies, the
institute notes. The Treuhand is also promoting management buyouts as another method of privatization. With roughly 1,500 MBOs since mid-1991, such investments totalled DM 1 billion and should save 60,000 jobs, writes DB Research.
 As of June 30, 1992, the Treuhand reported investment pledges totalling DM 144 billion, but only 20 percent of all pledged funds have been spent so far. Foreign investors account for DM 12 billion in commitments and 111,000 of the jobs maintained after restructuring. This role may grow since current reports indicate that every third investment offer comes from abroad.
 For a copy of the complete text, please contact Ute DeFarlo, TransAtlantic Futures, Inc., Washington, D.C. Tel: 202-462-1222; fax: 202-462-1229.
 -0- 8/11/92
 /CONTACT: Ingelies Buhl of Deutsche Bank Research, in Frankfurt, 011-49-69-71007-209/ CO: Deutsche Bank Research ST: IN: FIN SU:


MH -- DC005 -- 8906 08/11/92 11:04 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 11, 1992
Words:350
Previous Article:UPJOHN TO MARKET VERSATILE NEW ORAL ANTIBIOTIC
Next Article:NOEL GROUP AGREES TO ACQUIRE LINCOLN SNACK COMPANY FROM SANDOZ


Related Articles
DEUTSCHE BANK SUGGESTS SMOOTHING THE WAY FOR VENTURE CAPITAL IN THE NEW FEDERAL STATES
TREUHAND LAUNCHES WORLDWIDE ADVERTISING CAMPAIGN FOR THE SALE OF EAST GERMAN BUSINESS
The new Germany.
DEUTSCHE BANK RESEARCH CALLS REFORM OF EUROPE'S IMMIGRATION AND AGRICULTURAL POLICIES CENTRAL TO ECONOMIC VITALITY OF EUROPE, GERMANY
FIRST GERMAN-AMERICAN MBO/MBI TO TAKE PLACE IN EASTERN GERMANY
GENERAL ATOMICS PURCHASES SPEZIALTECHNIK DRESDEN FROM GERMAN PRIVATIZATION AGENCY
BERLIN FILM PLANT RETURNED TO KODAK
MAGNA INTERNATIONAL REACHES TENTATIVE AGREEMENT WITH TREUHAND AGENCY
Jumpstart: The Economic Reunification of Germany.
Policy and management requirements for privatization.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters