Poles to Share in Massive Privatization of State Industry

The government announced Thursday that it plans to transfer one-quarter of all state industry to private hands within six months by giving stock to every Polish adult citizen.

The plan must be approved by Parliament. Under it, five to 20 stock funds will be created and run under the auspices of foreign investment management companies, and Poles will be a granted a share in every fund.

Majority ownership of 400 large- and medium-sized state enterprises will be transferred to the stock funds by the beginning of 1992, the government said.

After the funds have reported their financial results for the first year, the shares will be freely tradable in the spring of 1993. At that time, Poles can sell their shares for cash or hold onto them as investments.

The plan is an attempt by Poland to quicken the pace of the revolutionary economic reforms it began after pro-democracy forces assumed power in August, 1989.

The government of Prime Minister Jan Krzysztof Bielecki has made speeding up privatization one of its main goals since taking office.

Government officials worked on the plan with the World Bank, the European Bank for Reconstruction and Development and international financial experts.

The first 400 companies to be transferred to the stock funds represent 25% of Poland’s industrial production and 12% of industrial employment.