<!-- Start of picture text --> Table AlA. European Bank for Reconstruction and Development<br>Transition Report, Transition Indicators<br>Score Definifion<br>1 Large Scale privatization<br>1 LitLe private ownership<br>2 Comprehensive scheme almost ready for implementation, some sales completed<br>3 More than 25% of large-scale enterprise assets in private hands or in the process of being privatized but<br>possible with major unresolved issues regarding corporate govemance<br>4 More than 50% of state-owned enterprise and form assets in private ownership and significant progress on<br>corporate govemance of these enterprises<br>5 Standards and performance tvpical<br>2 Small Scale privatization<br>1 Little Drogress<br>2 Substantal share privatized<br>3 Nearly comprehensive proaram implemented<br>4 Complete privatization of small comDanies with tradable ownershiD rights<br>5 Standards and performance typical of advance industial economies: no estate ownership of small enterprises<br>effective tradabilitv of land<br>3 Govemance and restructuring<br>1 Soft budget constraints (lax credit and subsidy policies weakening financial discipline at the enterprise level);<br>few other reforms to promote corporate govemance<br>2 Moderately tight credit and subsidy policy but weak enforcement of bankruptcy legislation and little action taken<br>to strengthen comDetition and corporate govemance<br>3 Significant and substanbal actions to harden budget constraints and to promote cooperate govemance<br>effectivelv<br>4 Standards and performance typical of advance d industrial economies: effective corporate control exercised<br>throuoh domestic financial institutions and markets, fosterina market-driven restructurina<br>4 Price liberalization<br>1 Most prices formally controlled by the govemment<br>2 Price controls for several important product categories, state procurement at non-market prices remains<br>substantal<br>3 Substantial progress on price liberalization: state Procurement at non-market prices largeiv phased out<br>4 Comprehensive price liberalization, utilitv pricng which reflects economic costs<br>5 Standards and performance typical of advance industrial economies, comprehensive price liberalization,<br>efficiency-enhancing regulation of ublity pricing<br>5 Trade and foreign exchange system<br><!-- End of picture text -->

- 1 Widespread import and /or export controls or very limited legitimate access to foreign exchange

<!-- Start of picture text --> 2 Some liberalization of import and/or export controls, almost full current account convertibility in principle but with<br>a foreign exchange regime that is not fully transparent<br>3 Removal of almost all quantitatve and administrative import and export restrictions, almost full current account<br>convertibility<br>4 Removal of all quantitative and administrative import and export restrictions and all significant export tariffs,<br>insignificant direct involvement in exports and imports by ministries and state owned trading companies no major<br>non-uniformity of customs dubtes for non-agricultural goods and services, full current account convertibility<br>5 Standards and performance norms of most advance d industrial economies: removal of most tariff barriers,<br>membership in WTO<br>6 Banking reform & interest rate liberalisaton<br>1 Little proaress beyond establishment of a tMo-ter svstem<br>2 Significant liberalisation of interest rates and credit allocation; limited use of directed credit or interest rate<br>liberalisabon ceilings<br>3 Substantial progress in establishment of bank solvency and of a framework for prudential supervision and<br>regulation; full interest rate liberalisation with litLe preferential access to cheap refinancing; significant lending to<br>private enterprises and significant presence of pDrivate banks<br>4 Significant movement of banking laws and regulation towards BIS standards; well-functioning banking<br>compeUtion and effective prudential supervision; significant term lending to private enterprises; substantial<br>financial deepening<br>5 Standards and performance norms of advanced industrial economies: full convergence of banking laws and<br>requlations with 815 standards; provision of full set of competitive bankina services<br>7 Securities markets & non-bank financial institutions<br>1 Little Progress<br>2 Formation of securities exchanges, market-makers and brokers; some trading in govemment paper and/or<br>securites: rudimentary legal and regulatorv framework for the issuance and tradina of securities<br>3 Substantial issuance of securities by prvate enterprises; establishment of independent share registries, secure<br>clearance and settlement procedures, and some protection of minority shareholders; emergence of non-bank<br>financial institutions (e.g. investment funds, private insurance and pension funds, leasing companies) and<br>associated reaulatory framework<br>4 Securifies laws and regulations approaching IOSCO standards; substantial market liquidity and capitalisation;<br>well-functioning non-bank financial insttutions and effective reaulation<br><!-- End of picture text --> 36