ABSTRACT
The privatization programme announced in 1991 (effective 1 July) aimed to privatize 344 large enterprises and 1,601 small enterprises by the end of 1992. Each citizen was entitled to three red vouchers (tradable on secondary markets) and one blue one (non-tradable). Red vouchers, with a face value of 1,000 tugriks, were for the privatization of small enterprises and agricultural assets (except land and livestock). The total book value of small assets was 9.4 billion tugriks. Blue vouchers, with a face value of 7,000 tugriks, were for the privatization of the 344 large enterprises with a book value of 10.8 billion tugriks. Small assets were to be privatized at auctions, but workers employed in the small enterprises had the first right to acquire them at a value determined by the Privatization Commission. By the beginning of February 1992 around 80 per cent of all small enterprises were in private hands. Large enterprises were also to be privatized by voucher auction after having their plans approved by the Privatization Commission. Ten per cent of their shares would be granted to employees. Investment funds would not be able to control more than 20 per cent of the shares of a given enterprise. Foreigners would be able to buy shares only when secondary trading began (Denizer and Gelb 1992: 9-13).
