The Macedonian Gambit : Enterprise cum Bank Restructuring
The former Yugoslav Republic of Macedonia, supported by a World Bank policy-based loan, is trying a new approach to reform its enterprises. Enterprises will still be privatized as soon as possible, but the government frankly acknowledges that a few...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1995/11/696936/macedonian-gambit-enterprise-cum-bank-restructuring http://hdl.handle.net/10986/11643 |
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okr-10986-116432021-06-14T11:04:48Z The Macedonian Gambit : Enterprise cum Bank Restructuring Pernia, Joseph Ramachandran, S. ASSETS BALANCE SHEETS BANK RESTRUCTURING BANKING REFORM BANKRUPTCY BANKS CENTRAL BANK COMMERCIAL BANKS DEFICITS DEPOSIT INSURANCE DEPOSITORS DEPOSITS FOREIGN EXCHANGE INFLATION INNOVATIONS INSOLVENCY LENDING BEHAVIOR LIQUIDATION NONPERFORMING LOANS PORTFOLIOS PRIVATIZATION RECAPITALIZATION REGIONAL BANKS SAVINGS TRANSITION ECONOMIES TRANSPARENCY BANKS SUBSIDIES PUBLIC ENTERPRISES DENATIONALIZATION BANK REFORM POLITICAL SUBSIDY The former Yugoslav Republic of Macedonia, supported by a World Bank policy-based loan, is trying a new approach to reform its enterprises. Enterprises will still be privatized as soon as possible, but the government frankly acknowledges that a few enterprises have considerable clout and must be subsidized for political, not economic reasons. These politically powerful enterprises are isolated from vulnerable banks, but given a direct subsidy in exchange for undertaking monitorable reforms. In exchange for the subsidies, the politically powerful enterprises have to end value-subtracting activities, break off their relations with banks, and immediately take steps to liquidate or privatize constituent units at a pace determined by the cabinet, where political tradeoffs are best made. Freezing the debts of the political enterprises frees banks from the pressure to make more bad loans. So far this isolation technique shows signs of success, and it could usefully be adapted by other transforming economies. 2012-08-13T15:36:56Z 2012-08-13T15:36:56Z 1995-11 http://documents.worldbank.org/curated/en/1995/11/696936/macedonian-gambit-enterprise-cum-bank-restructuring Viewpoint. -- Note no. 62 (November 1995) http://hdl.handle.net/10986/11643 English Viewpoint CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research Europe and Central Asia Macedonia, former Yugoslav Republic of North Macedonia (Formerly the Former Yugoslav Republic of Macedonia) |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ASSETS BALANCE SHEETS BANK RESTRUCTURING BANKING REFORM BANKRUPTCY BANKS CENTRAL BANK COMMERCIAL BANKS DEFICITS DEPOSIT INSURANCE DEPOSITORS DEPOSITS FOREIGN EXCHANGE INFLATION INNOVATIONS INSOLVENCY LENDING BEHAVIOR LIQUIDATION NONPERFORMING LOANS PORTFOLIOS PRIVATIZATION RECAPITALIZATION REGIONAL BANKS SAVINGS TRANSITION ECONOMIES TRANSPARENCY BANKS SUBSIDIES PUBLIC ENTERPRISES DENATIONALIZATION BANK REFORM POLITICAL SUBSIDY |
| spellingShingle |
ASSETS BALANCE SHEETS BANK RESTRUCTURING BANKING REFORM BANKRUPTCY BANKS CENTRAL BANK COMMERCIAL BANKS DEFICITS DEPOSIT INSURANCE DEPOSITORS DEPOSITS FOREIGN EXCHANGE INFLATION INNOVATIONS INSOLVENCY LENDING BEHAVIOR LIQUIDATION NONPERFORMING LOANS PORTFOLIOS PRIVATIZATION RECAPITALIZATION REGIONAL BANKS SAVINGS TRANSITION ECONOMIES TRANSPARENCY BANKS SUBSIDIES PUBLIC ENTERPRISES DENATIONALIZATION BANK REFORM POLITICAL SUBSIDY Pernia, Joseph Ramachandran, S. The Macedonian Gambit : Enterprise cum Bank Restructuring |
| geographic_facet |
Europe and Central Asia Macedonia, former Yugoslav Republic of North Macedonia (Formerly the Former Yugoslav Republic of Macedonia) |
| relation |
Viewpoint |
| description |
The former Yugoslav Republic of
Macedonia, supported by a World Bank policy-based loan, is
trying a new approach to reform its enterprises. Enterprises
will still be privatized as soon as possible, but the
government frankly acknowledges that a few enterprises have
considerable clout and must be subsidized for political, not
economic reasons. These politically powerful enterprises are
isolated from vulnerable banks, but given a direct subsidy
in exchange for undertaking monitorable reforms. In exchange
for the subsidies, the politically powerful enterprises have
to end value-subtracting activities, break off their
relations with banks, and immediately take steps to
liquidate or privatize constituent units at a pace
determined by the cabinet, where political tradeoffs are
best made. Freezing the debts of the political enterprises
frees banks from the pressure to make more bad loans. So far
this isolation technique shows signs of success, and it
could usefully be adapted by other transforming economies. |
| format |
Publications & Research :: Viewpoint |
| author |
Pernia, Joseph Ramachandran, S. |
| author_facet |
Pernia, Joseph Ramachandran, S. |
| author_sort |
Pernia, Joseph |
| title |
The Macedonian Gambit : Enterprise cum Bank Restructuring |
| title_short |
The Macedonian Gambit : Enterprise cum Bank Restructuring |
| title_full |
The Macedonian Gambit : Enterprise cum Bank Restructuring |
| title_fullStr |
The Macedonian Gambit : Enterprise cum Bank Restructuring |
| title_full_unstemmed |
The Macedonian Gambit : Enterprise cum Bank Restructuring |
| title_sort |
macedonian gambit : enterprise cum bank restructuring |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/1995/11/696936/macedonian-gambit-enterprise-cum-bank-restructuring http://hdl.handle.net/10986/11643 |
| _version_ |
1764417479731314688 |