Cyprus Stock Exchange Chairman outlines growth strategies
07:46 - 22 January 2024
The Chairman of the Cyprus Stock Exchange (CSE), Marinos Christodoulides, has highlighted two key pillars for the development of the financial institution in Cyprus.
In an interview with the Cyprus News Agency, Christodoulides stressed the importance of privatising the Stock Exchange through the attraction of renowned foreign stock exchanges as major stakeholders. Additionally, he pointed out the significance of offering tax incentives to companies to join CSE and encourage investors to engage in the market.
More specifically he said that CSE need new companies to attract the interest of the investment community, saying that tax incentives are essential for achieving this goal. He said that the CSE has submitted proposals to the Ministry of Finance and the relevant committee at the University of Cyprus, currently working on tax reform on behalf of the Ministry.
Referring to recent discussions with the Minister of Finance and the Director-General of the Ministry, Christodoulides expressed his belief that privatisation efforts and the initiation of new major projects by the state should encourage companies to introduce their shares to the stock exchange of the country.
He added that for a listed company, transparent procedures must be followed, and the move to encourage the CSE listing was a step towards achieving this goal. Additionally, he said, the initiative aimed to provide Cypriot investors with easy access to these significant investments.
Christodoulides also stressed the CSE Council's pursuit of introducing international government bonds (EMTN) to the CSE, which are currently listed solely on the London Stock Exchange, with a total value exceeding €10 billion. He further expressed the Council's aim for the Ministry of Finance to initiate the first domestic issuance of government bonds exclusively listed on the Cyprus Stock Exchange.
Christodoulides announced the completion of the implementation of the agreement reached in 2021 with the Swiss Central Securities Depository (SIX SIS) to facilitate cross-border transactions. He noted that the primary objective of this agreement was to introduce, in the initial stage, the EMTN valued at over €10 billion, currently listed on the London Stock Exchange, simultaneously to the CSE.
"When this simultaneous introduction occurs, it will significantly ease the opportunity for Cypriot investors to trade in government bonds. This is a crucial step for both increasing the capitalisation of the CSE and enhancing its marketability," Christodoulides pointed out.
Moreover, he highlighted the CSE's infrastructure readiness to assume full operation of the competitive electricity market, especially following Cyprus' electrical interconnection with other markets.
Christodoulides stressed that these strategic moves aim to establish a robust stock exchange in Cyprus, attracting quality companies and facilitating their growth, thus contributing to the broader economy.
"The state must understand that a financially robust country cannot thrive without a robust stock exchange, which is widely acknowledged as a reflection of a country's economy," Christodoulides noted.
In conclusion, the Chairman highlighted the CSE's infrastructure readiness, alongside its partners, to serve future developments, including the PCR algorithm and Cyprus' electricity interconnection with other European markets.