Plans to discuss the bill for the privatisation of the Cyprus Stock Exchange are scheduled to start

yprus Securities and Exchange Commission and the Tax Department.

The government has committed to securing a strategic investor by the end of 2025, a requirement for triggering the country’s seventh payment request under the EU’s Recovery and Resilience Facility. The move is expected to improve market liquidity, restore investor confidence, and boost competitiveness.

The bill paves the way for significant changes in the operation and ownership of the Cyprus Stock Exchange. By bringing in a strategic investor, the government aims to inject new life into the local stock market and attract more investments, ultimately establishing Cyprus as a prominent financial hub in the region. The framework outlined in the legislation lays down a comprehensive plan for selecting the investor, transferring responsibilities to the Ministry of Finance, and overseeing the gradual transfer of the exchange’s operations and assets.

Furthermore, the bill includes provisions for privatising the Central Depository and the Central Securities Registry, streamlining the process and ensuring a cohesive transition of ownership. Employees currently on indefinite contracts at the Cyprus Stock Exchange are earmarked for transfer to the finance ministry or eligible for voluntary retirement packages, ensuring a smooth transition during the privatisation process.

The government’s decision to privatise the stock exchange is not a spur-of-the-moment choice but a well-considered effort to safeguard the exchange’s sustainability. Backed by a study conducted by an independent consultant, the move towards privatisation was deemed the most viable option, with the potential to yield significant benefits for the financial sector in Cyprus.

The decision-making process has been inclusive, with a public tender launched to enlist expert advisers to shape the legislation and a public consultation involving key stakeholders like the Cyprus Securities and Exchange Commission and the Tax Department. This collaborative approach ensures that the interests of all parties involved are taken into account and that the privatisation process is transparent and well-informed.

The government’s timeline to secure a strategic investor by the end of 2025 aligns with the requirements set forth by the EU’s Recovery and Resilience Facility, underlining the government’s commitment to revitalising the stock market and bolstering its standing as a regional financial hub. With the potential to boost market liquidity, restore investor confidence, and enhance competitiveness, the privatisation of the Cyprus Stock Exchange signifies a significant step towards economic recovery and growth in Cyprus.