ted for 70% of GDP and 60% of employment by the end of 1995.Forecast for 1996Financial assets will be the main instrument of privatization in 1996. The share of facilities sold at auctions and commercial and investment tenders and privatized by the redemption of leased property and sale of immovables and land will grow.The development of the stock market will be based lagerly on demand from strategic investors interested in high profitability for their investments and the gaining of control over enterprises.The sale of land and immovables to enterprises will be a new feature of privatization.According to estimates, the number of enterprises which will have changed their form of ownership will be 124,600 in 1996. Their aggregate output is estimated at 844 trillion rubles (accounted for 31% of GDP) and their combined personnel at 21 million (31.6% of employment).The creation of an effective bankruptcy mechanism and work with insolvent enterprises will be a major factor in enhancing economic efficiency. The legal base of bankruptcy is to be improved and effective bankruptcy procedures to be elaborated in 1996. This presumably is to facilitate the reduction of inter-enterprise debts. Adoption of international bookkeeping principles and audit standards can help solve many problems related to enterprise insolvency, restructuring, improvement and support.Next year's privatization process will be determined, to a considerable degree, by the state of the market. In 1996 it should acquire all the basic characteristics of the capital market, and its main task will be an effective inter-industry and inter-regional re-distribution of investment resources....
