Serbia is preparing to launch a comprehensive privatisation programme as part of economic reforms introduced following the overthrow of former president Slobodan Milosevic.
Later this month ministers will present to parliament a privatisation law, which could pave the way for the sale of some 4,500 companies by tender and auction to strategic investors.
Controlling stakes of up to 70 per cent of a company's equity will be on offer, to Serb and foreign investors. The remainder will go to workers or be distributed through vouchers to citizens.
Ministers hope that selling a majority stake will help solve a perennial problem of companies in Serbia - the lack of a clear ownership structure.
Under communism, Yugoslavia prided itself on a system of "social ownership" under which equity was shared by different owners, including the workers and the state.
Most companies are now controlled by employee and management committees, which have spawned myriad competing sub-committees.
The new law will encourage employees to opt for early privatisation because workers will be eligible for a larger percentage of equity the sooner a business is sold.
Money raised from the sales will be used to help repay companies' foreign debts, and fund development of smaller businesses. Some will go towards compensating former owners of companies before nationalisation, shortly after 1945.
First to go are two cement plants, Novi Popovac and Kosjeric, Serbia's second-and third-largest cement factories, producing 1.2m and 500,000 tonnes of cement per year respectively.
The government will launch their tender early next week and hopes to complete the sales by the end of June.
Ministers hope the prospect of internationally-financed reconstruction will generate interest.
Serbia's largest cement producer, Beocin, in the north-east, has already been promised to Lafarge, after the French producer of construction materials signed an agreement with the previous government in September, shortly before Mr Milosevic's regime fell.
The greatest challenge will be to establish what to do with Serbia's industrial complexes, such as Zastava, the car and weapons factory. Ministers hope to sell off potentially profitable parts.
* The European Bank for Reconstruction and Development (EBRD) yesterday opened its office in Belgrade, from where it has agreed to help fund the Microfinance Bank Yugoslavia, an institution which aims to kick-start the economy by lending to small businesses.
The bank is similar to EBRD-backed banks in Bosnia, Kosovo and former Soviet states. For regional reports, www.ft.com/europe