Cyprus Parliament Begins Discussion on Stock Exchange Privatization Law

Today, the Parliament of the Republic of Cyprus began discussing a draft law providing for the privatization of the Cyprus Stock Exchange (CSE), the Central Securities Depository, and the Central Securities Registry. The document, approved by the cabinet on June 4, envisages a sale structure through a specially created company, followed by the search for a strategic investor via an open tender.

The draft law, developed after consultations with an independent advisor commissioned by the Ministry of Finance, introduces a detailed mechanism for transferring the exchange’s assets, functions, and personnel under private investor control. In particular, two alternatives are offered for employees: either transfer to the Ministry of Finance or compensation through a voluntary pension scheme.

The initiative aims to enhance the CSE’s competitiveness, restore investor confidence, and increase market liquidity. It is also a condition for Cyprus to submit its seventh funding request under the European Union Recovery Program — note that the corresponding application must be submitted by the end of 2025.

The draft law, resulting from a political decision, has already undergone public consultation and is now under legal review at the Attorney General’s office. According to CSE Chairman Marinos Christodoulidis, after parliamentary consideration, the Ministry of Finance will launch a public tender to attract a strategic partner.