Working Life Barometer in the Baltic Countries 2002 (pdf) - mol.fi

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The first phase of privatisation is called a mass privatisation for vouchers
with some elements of cash sales. The Lithuanian citizens were able to
participate in privatisation either directly by acquiring the shares of the
companies included in the privatisation program or indirectly by purchasing
the shares in various investment funds established during this phase. Foreign
investors had a possibility to participate in the privatisation process for cash.
The first phase of privatisation was a very dynamic process compared with
other Central and Eastern European countries. A significant part of the mass
privatisation was completed in the agricultural sector. More than 1 thousand
state companies formerly known as "kolchozes" were privatised and about 97
per cent of the property in the agricultural sector went in to the private hands.
High level of privatisation was achieved in different industries. 98 per cent of
the construction and 97 per cent of household service sectors was privatised.
This phase also comprised the sale of apartments to the tenants, the citizens of
Lithuania.
By the end of the first phase 88 per cent of the total assets offered for sale had
been privatised. Lithuania has become a country with a majority of the Gross
National Product (68 per cent in 1996) generated in the private sector. Some
well-known international companies came to Lithuania during the first stage
of privatisation. It is important to mention Phillip Morris S. A. and Kraft
General Foods International, Inc.
The second phase of privatisation started in July 1995. It differs from the first
stage in two respects: first, state-owned and municipal property is sold for
cash to natural and legal persons under market conditions following valuation
of objects; and second, local and foreign investors as well as legal and natural
persons have equal rights in privatisation of state-owned and municipal
property.
During 1995-1997 the amount of investment into Lithuania was comparatively
small. The key policy changed in November 1997 when a wide range of
privatisation methods was allowed. These are: public subscription for shares;
public auction; public tender; direct negotiations; lease with an option to
purchase; and combination of methods.