Overview Of New Legislation
The Cyprus Parliament unanimously approved legislation that opens the way for the privatization of CHAK. Under the new framework, investor selection will no longer rely solely on the highest financial offer. Evaluation criteria now include qualitative factors, such as the investor’s business plan and its potential contribution to developing the stock market.
Emphasizing Strategic Investment Over Price
Christiana Erotokritou, President of the Parliamentary Economic Committee and member of DIKO, said the reform is important for both Cyprus’ economy and the future of CHAK. She noted that the exchange has not reached its full potential and stressed that the goal is to attract a strategic investor from a regulated market rather than simply sell a state asset. She also welcomed the Ministry of Finance’s decision to incorporate proposals submitted by DIKO during the legislative process.
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Ensuring Sustainable Market Growth
Haris Georgiadis, a DISY parliamentarian, added that the inclusion of qualitative parameters in the evaluation process is designed to secure the sustainable and positive growth of CHAK. This strategic outlook reflects a broader commitment to strengthening the competitiveness and credibility of Cyprus’ financial sector.
Institutional Reforms And Employee Protections
According to the Ministry of Finance, the legislation forms part of a broader capital market modernization plan. The law provides a framework for the gradual transfer of responsibilities related to the Central Securities Depository and the Central Register of Securities to a strategic investor, while maintaining operational continuity and safeguarding public interest.
Protection Of Employee Rights
Another critical aspect of the legislation is its provision for defending the labor rights of CHAK’s workforce. The bill ensures a smooth transfer of employees to the Ministry of Finance, or alternatively, facilitates compensation based on a defined early voluntary retirement plan, which further underscores the commitment to social responsibility during this transition.
Looking Ahead
The Ministry of Finance has expressed its gratitude towards Parliament members and, in particular, the Parliamentary Committee on Economic and Budgetary Affairs, for their collaboration in finalizing this important reform. The commitment to effectively implement the law underscores the government’s dedication to fostering an environment that supports long-term economic growth and stability in Cyprus.
