The proposed legislation would provide tax incentives for the operations connected with privatization; unlike earlier proposals, it sets no deadline for the sale of bank shares. The decision to encourage rather than order such disposals and to allow them to be spread out over time appears appropriate.
It is compatible with the objective of respecting the decision-making autonomy of the parties involved and improving the profitability of banks so as to enhance the attractiveness of their shares. And it creates scope for the stock market to be able to absorb the shares of the banks, without excess supply depressing the placement price.