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SOE Division

Objectives of the Kosovo Trust Agency

A major objective of the KTA is to privatise SOEs. The Agency plans to carry out successfully the privatisation process through spin-off or voluntary liquidation. The KTA will use a transparent and fair process for the programme and to put into productive use the assets of the SOEs for the benefit of Kosovo and potential owners.

Methods for Privatisation of the SOEs (Socially Owned Enterprises)


Step 1: The KTA can create a new company ("newco") in the form of a Joint Stock Company or a Limited Liability Company and transfer to these new companies part or all of the assets of the old socially owned enterprise. Liabilities of the old enterprise would not be transferred but remain with the old enterprise.
Shares in the new corporation would temporarily be owned by the old enterprise that would thus turn into a holding company, fully administered by the KTA. The KTA also holds the shares in trust for the old enterprise while creditors of the old enterprise could bring their claim to an International Chamber of the Kosovo Supreme Court.
Step 2: The KTA sells the newco shares it holds in trust to private investors, both domestic and foreign. Proceeds would be held in trust by the KTA, without prejudice to ownership or creditor claims against the old enterprise.

In making these exchanges the KTA is committed to conduct its transactions in a transparent and competitive manner in order to ensure that a fair price is received. The KTA may in addition to the price also take into account proposed activities, investment and employment as foreseen by any prospective investor. Thus, the value of the old SOEs is preserved to satisfy possible creditors' and owners' claims.

Voluntary Liquidations

Voluntary Liquidations allow an expeditious exit from the market for those enterprises that clearly have no prospects of survival. The KTA can initiate such proceedings where it deems the proceedings are in the interests of preserving the remaining value of defunct enterprises, and of any ownership or creditor claimant's interest in those. The proceedings would be largely out of court and would primarily follow the procedures for liquidation found in the Regulation o­n Business Organisations. Again, proceeds of liquidations are kept in trust by the KTA.