The Macedonian Gambit : Enterprise cum Bank Restructuring

Pernia, Joseph ; Ramachandran, S.

World Bank, Washington, DC

关键词: ASSETS;    BALANCE SHEETS;    BANK RESTRUCTURING;    BANKING REFORM;    BANKRUPTCY;   

RP-ID  :  16921

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The former Yugoslav Republic ofMacedonia, supported by a World Bank policy-based loan, istrying a new approach to reform its enterprises. Enterpriseswill still be privatized as soon as possible, but thegovernment frankly acknowledges that a few enterprises haveconsiderable clout and must be subsidized for political, noteconomic reasons. These politically powerful enterprises areisolated from vulnerable banks, but given a direct subsidyin exchange for undertaking monitorable reforms. In exchangefor the subsidies, the politically powerful enterprises haveto end value-subtracting activities, break off theirrelations with banks, and immediately take steps toliquidate or privatize constituent units at a pacedetermined by the cabinet, where political tradeoffs arebest made. Freezing the debts of the political enterprisesfrees banks from the pressure to make more bad loans. So farthis isolation technique shows signs of success, and itcould usefully be adapted by other transforming economies.