The privatisation of Nordica (ND, Tallinn Lennart Meri) parent Nordic Aviation Group may go ahead, with Minister of Economic Affairs and Industry Erkki Keldo saying Estonia's new government plans to continue with its predecessor's efforts to privatise state-owned companies.
"The previous government conducted a review of state-owned companies. The intention is to privatise those companies that are not essential or necessary for the primary activities of the state. A detailed discussion in the government is still ahead to decide which companies and to what extent to privatise," he told Estonian broadcaster ERR (Eesti Rahvusringhääling).
He said the new government under Prime Minister Kristen Michal had not yet discussed whether it will change the list of companies slated for privatisation. "There hasn't been a discussion on this yet, as the new government has only been in office for a little over two weeks," he said.
Estonia's new government, formed on July 22, has promised to address the nation's financial headaches, including tax reforms and increased defence spending, in light of regional security concerns concerning Russia and Belarus.
The former administration under Kaja Kallas halted the privatisation of Nordic Aviation Group, citing offers from two potential buyers that later did not meet the government's financial expectations. Additionally, one of the bidders failed to provide adequate information regarding the source of its funding. As former minister of climate, Michal had suggested the Kallas government suspend the sale of the group pending a review of the terms of sale and the need for restructuring.
