Breaking news

Ensuring Transparent And Fair Value In Privatisation

State Aid Commissioner Stella Michaelidou has reiterated that the bidding process in all privatisations must be conducted in an open, transparent manner that ensures equal access to information and avoids any conditions that might depress the final sale price. This principle is especially critical in the forthcoming privatisation of the Cyprus Stock Exchange.

Open And Transparent Bidding Process

Commissioner Michaelidou emphasized that competitive tenders should be free from restrictions that could lower the ultimate valuation of the asset. Speaking with the Cyprus News Agency, she clarified that the tender process for the Cyprus Stock Exchange must be rigorously assessed under EU state aid rules. This assessment will be carried out by her office and, if necessary, by the European Commission, ensuring that market standards are maintained.

Independent Valuation And Fair Pricing

The Commissioner stressed the necessity of an independent valuation conducted by a certified firm to ascertain fair market value. “The sale must be conducted at a price that reflects fair value, without being undervalued,” she stated. This insistence on an unbiased valuation prevents any mispricing that could arise from state-imposed conditions or undisclosed arrangements.

Safeguarding The Market Economy Principle

Michaelidou made it clear that the privatisation process must avoid incorporating elements that represent state intervention post-sale, such as special privileges or exclusive rights. She noted that retaining a state stake allows the government to monitor and influence the new owner’s management, contrary to the market economy investor principle where conditions that could lead to state aid should be avoided.

Mitigating State Aid And Ensuring Legal Certainty

Highlighting the broader framework of EU state aid rules, the Commissioner advised that each privatisation case be examined based on its specific data. Conditions imposed in the tender documents must be assessed to ensure they do not translate into state aid. Michaelidou referred to legal precedents where private investors would not impose such conditions, thereby reinforcing the necessity for market-compliant processes.

Ensuring Competitive And Unbiased Tenders

In addition to rigorous evaluations, potential conditions such as tax benefits, guarantees, or debt conversions must be scrupulously examined to ensure they do not provide undue advantages. The assessment should consider realistic market behaviors, risk profiles, and expected returns. The Finance Ministry has been advised to subject any tender conditions to this evaluative process, with the option of using the European Commission’s preliminary notification process to secure legal certainty.

In summary, Commissioner Michaelidou’s guidance underlines the importance of adhering to market standards. By ensuring that bids are invited in an open, transparent manner and that the sale is underpinned by an independent valuation and free of state intervention, the privatisation process can maximise revenues while maintaining fair competition and legal clarity for all parties involved.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

Uol
eCredo
Aretilaw firm
The Future Forbes Realty Global Properties

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter