Privatization and Restructuring in Central and Eastern Europe

[摘要] One of the most important policyquestions in the transition economies is what governmentscan do to speed the restructuring of firms and thus hastenthe transition to a mature market economy. The authorsreport on a study that provides some answers. Privatizationencourages restructuring if it is rapid and comprehensiveand leads to concentrated ownership. Privatization alsopromotes restructuring because privatized firms are morelikely than state-owned enterprises to exercise wagerestraint--and wage restraint is vital to free up thenecessary internal finance. But policies that increase banklending to firms, such as debt forgiveness andrecapitalization, may do more harm than good. The safestcourse is to recapitalize banks only as part ofprivatization and to encourage negotiations for financialrestructuring only after the banks are privatized.

[发布机构] World Bank, Washington, DC

[学科分类] 社会科学、人文和艺术（综合）

[关键词] ACCOUNTING;ACCOUNTING STANDARDS;BANK RECAPITALIZATION;BANKING SECTOR;BANKS