The bill for the privatisation of the Cyprus Stock Exchange (CSE) is undergoing legal review and is expected to reach the House for a vote in February, it emerged on Monday.
CSE chairman Marinos Christodoulides informed the House Finance Committee that the privatisation process is set to be completed by the end of 2025. Following legislative approval, an investor search will be launched, with offers expected within six months. Christodoulides said that the legal review, which started in July 2024, should conclude by February, paving the way for legislative approval. “This timeline ensures a smooth transition to private management,” he said.
Under the proposed timeline, the winning bidder is expected to be selected within three months, with all procedures completed by October 2025. “The process requires careful execution to prevent disruptions and ensure the exchange operates efficiently under private management,” the CSE chairman stated. The privatisation effort, in planning for over four years, involves multiple steps to ensure a seamless transition.
Meanwhile, Disy MP Harris Georgiades expressed concerns about potential delays, warning that prolonged procedures could necessitate state support to sustain the CSE. Other MPs echoed these sentiments. They also reaffirmed their commitment to expediting the privatisation process.
It should be noted that the CSE faces financial challenges, with a projected €1.9 million deficit for 2025. While revenues are expected to reached a total of €5 million, expenses are forecast at €6.9 million, marking a 3.4 per cent drop in income compared to 2024.
The exchange plans to cover deficits using cash reserves, estimated at €2.5 million by year-end 2024. Additional reserves include €2.5 million invested in securities and €0.6 million held as loan guarantees. Despite this, deficits of €1.5 million and €1.4 million are anticipated for 2026 and 2027, respectively, as operational costs remain a concern.
Source: Cyprus Mail