Bill to privatise Cyprus Stock Exchange in final stages of legal review

A key bill for the privatisation of the Cyprus Stock Exchange (CSE) is currently with the Law Office of the Republic and in the final stages of legislative review, with the final draft expected to be tabled at the House within the next month.

CSE Chairman Marinos Christodoulides told the House Finance Committee that once legal vetting is complete the bill will be approved by the Council of Ministers before being forwarded for parliamentary approval. He added that this initiative is a top priority for both the Presidency of the Republic and the Ministry of Finance.

In a bid to accelerate the process, Christodoulides said the documentation for the privatisation process – including the public tender – is being prepared simultaneously so that it commence immediately after the law is passed.

The Committee was reviewing the CSE’s 2025 budget, with the Chairman informing MPs that it foresees a deficit of €1.88 million.

He explained that the budget projects total revenues of €4.974m and total expenditures of €6.856m. Cash reserves at the end of 2025 are estimated at €1.3m, with an additional €1.5m in Cypriot government bonds.

Christodoulides also highlighted the CSE’s investment in the Greek Energy Exchange, launched at the end of 2018 with an initial amount of €500,000. This investment has since been independently valued at €3.5m as of 2024, he said.

Over the last three financial years, the CSE has received dividends totaling €215,000 from this investment, which Christodoulides described as having yielded a very positive return.

MPs warn: Time is running out

DISY MP Harris Georgiades expressed concerns that the CSE's liquidity could be depleted before its privatisation. "Time is truly running out," he remarked, adding that there is no more time to waste, and the necessary procedures must be completed.

Responding to these concerns, the CSE chairman acknowledged the urgency, stating that both the Board of Directors and the management are "pushing harder than you can imagine" to complete the privatisation process. But he said he was confident that if the bill reaches the Finance Committee soon, there would still be time to complete all privatisation procedures by the end of 2025.

AKEL MP Andreas Kafkalias cautioned that considerable time will pass from the approval of the legislation to its implementation under the new framework.