The privatisation of the Cyprus Stock Exchange (CSE) will proceed, barring unforeseen circumstances, in 2026, CSE Chairman Marinos Christodoulides has said.
He was speaking before the House Finance Committee on Monday, 24 November in the context of a discussion on the CSE's budget for 2026.
In his brief presentation, Christodoulides stated that the stock exchange's budget is in deficit, mainly due to the inclusion of an extraordinary expenditure of €1.7 million for a voluntary early retirement plan for CSE staff within 2026 due to privatisation, and €400,000 regarding the stock exchange's welfare fund, as a result of the agreement with the unions in the same context.
Regarding the CSE's plans he said that, in 2025, its activity in the energy sector began, through an agreement with the Transmission System Operator within the framework of the competitive electricity market.
He added that the CSE has since 2018 been investing in Greece's EnExGroup Markets, which provides a single marketplace for Energy Commodities and Energy Derivatives, and had invested €500,000 which has yielded dividends of €390,000 to date.
The CSE also made suggestions for the introduction of tax incentives within the proposed tax reform, he said, adding that CSE participated in a consortium of the Federation of European Securtities Exchanges for unified stock market information in the markets and that the registration of Eurobank on the CSE is also progressing.
The CSE index recorded a 30% increase in 2025, with an average transaction volume of €750,000 per day and a total capitalisation of €23.5 billion, he also said.
On the issue of privatisation, Christodoulides said that some adjustments have been made to the legislation and the tender documents, and a discussion is currently taking place at the Ministry of Finance with the Commissioner of State Aid Control to finalise the issue in Parliament.
DISY MP Savia Orphanidou, said on the issue of privatisation that a revised bill is expected to attract investors to strengthen and modernise the CSE and how quickly the procedures can be run after the bill is passed, while AKEL MP Andreas Kafkalias asked whether answers have been given on the issue by the EU competition authority.
Responding, Christodoulides said that privatisation will proceed barring unforeseen circumstances in 2026, adding that no changes are expected in the budget, however it is important that the vote is completed within the term of the current Parliament.
He added that there is communication with the Directorate-General for Competition of the European Commission, the Ministry of Finance and the Commissioner of State Aid Control , all necessary actions have been taken and their response is awaited.
In statements after the end of the debate, and in response to a relevant question, DIKO MP Chrisis Pantelides said that the CSE budget must be approved because the privatisation process has not yet been completed.
"However, it is a fact that the completion of the discussion of the bill for the privatisation of the Stock Exchange is pending. I am glad that you are asking me the question because, while formally the bill is in the House of Representatives, the process is not delayed because of the House of Representatives. It is delayed because further consultation is needed with the Commissioner of State Aid Controland the competent European Union directorate," he explained further.
"All parties on the Finance Committee expressed our readiness to continue and complete as soon as possible the vote in favour of this specific bill that will allow the privatisation of the Stock Exchange as soon as possible."
"In any case, it is inevitable that the budget for 2026 will be needed because privatisation will not be completed sooner. We hope that it will be completed with the current composition of the Parliament," he concluded.
(Source: InBusinessNews)
