date=1/13/95
type=correspondent report
number=2-172267
title=Hungary Privatization (l-only)
byline=Barry Wood
dateline=Prague
content=
voiced at:

Intro:  Some officials of Hungary's ruling coalition have sharply
criticized the government following the collapse of a major
privatization deal and the dismissal of the country's top
privatization official.  V-o-A's Barry Wood reports.

Text:  The socialist-led government in Budapest (Thursday night)
cancelled the previously-approved privatization of the
Hungarhotel chain.  The cancellation of the partial sale to an
American company and the dismissal of Ferenc Bartha as
privatization commissioner cast doubt over the government's
privatization policy.

Initially, the seven-month-old government headed by socialist
Gyula Horn had hoped to raise more than one-billion dollars this
year from an accelerated sell-off of state assets.

The ouster of the respected privatization chief has dismayed
bankers and foreign investors.  Mr. Bartha, a former central bank
chief, is regarded as a competent, highly professional manager.

Last month, he had overseen the auction of the hotel chain won by
the U-S based American General Hospitality Company.  Prime
minister Horn apparently thought the price was too low and
ordered the sell-off to be  reconsidered.  Experts say there is
now doubt about planned sell-offs  of Hungary's electricity, oil
and gas companies.  A new privatization law is soon to be
discussed in parliament.

The junior partner in the governing coalition is complaining
about the bungled privatization deal.  The Alliance of Free
Democrats says there are serious problems within the government
and  not  just between the two coalition parties.  (Signed)

neb/bdw/skh/jwh

13-Jan-95 1:26 pm est (1826 utc)
nnnn

source: Voice of America

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