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State property sale at auction. Prices not to be reduced any more

The Ministry of Economy of Kyrgyzstan proposes to exclude from the Regulation on the privatization of state property through its sale at an auction the paragraph on price reduction due to a lack of bids. The document was submitted for public discussion.

The provision provides for the reduction of the initially approved starting price of the privatization object by not more than 25 percent in case the results of the auction are declared invalid because of a lack of applications.

The norm may create conditions for the sale of state property at prices different from market ones, including by preliminary collusion of bidders for repeated auctions with a reduced starting price, the Ministry of Economy noted.