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Cyprus has taken a decisive step toward restructuring its capital markets, as parliament unanimously approved legislation enabling the privatization of the Cyprus Stock Exchange (CSE). The Ministry of Finance quickly welcomed the move, describing it as a major reform that is expected to enhance both the credibility and the competitive position of the country’s financial system.
The newly adopted law sets out the legal and operational framework for transferring the CSE into private hands. Its scope extends beyond the exchange itself, also covering the Central Depository and the Central Securities Register. In addition, the legislation addresses staffing matters, allowing employees to either transfer to the Ministry of Finance or opt for compensation through a voluntary early retirement program.
A key feature of the reform is the creation of a special purpose company that will act as the vehicle for the privatization process. The law also outlines how a strategic investor will be identified and selected, and it maps out the subsequent steps required to complete the sale of shares.
Officials view the initiative as part of a broader effort to modernize Cyprus’s financial infrastructure and attract stronger market participation.
