The privatisation of the Cyprus Stock Exchange (CSE) is expected to go ahead in 2026, barring any unforeseen developments, CSE president Marinos Christodoulides told the House finance committee on Monday during discussion of the exchange’s 2026 budget.
In a brief presentation, Christodoulides said the CSE budget is in deficit mainly because it includes an exceptional expenditure of €1.7 million for a voluntary early retirement scheme for CSE staff in 2026, ahead of privatisation, as well as €400,000 for the exchange’s welfare fund, following agreement with the unions under the same process.
Activity, investments and performance
On the CSE’s strategic direction, he noted that in 2025 the exchange began operating in the energy sector through an agreement with the Transmission System Operator within the framework of the competitive electricity market.
He added that the CSE invested €500,000 in the Hellenic Energy Exchange in 2018, an investment which has so far generated €390,000 in dividends.
The exchange has also submitted proposals for the introduction of tax incentives in the draft tax reform, and participated in a consortium of the Federation of European Securities Exchanges on a single consolidated tape for market data. The listing of Eurobank on the CSE is also moving ahead, he said.
The CSE index recorded a 30 per cent increase in 2025, with average daily trading volumes of €750,000 and total market capitalisation reaching €23.5 billion.
Status of the privatisation process
On privatisation, Christodoulides said there had been adjustments to the legislation and the tender documents, and that consultations are currently under way between the Finance Ministry and the Commissioner for State Aid Control, with the aim of finalising the package for submission to Parliament.
DISY MP Savia Orphanidou said a revised bill is expected to attract a strategic investor to strengthen and modernise the CSE, and asked how quickly procedures could move after the law is passed. AKEL MP Andreas Kafkalias asked whether there had been replies from the EU competition authorities on the state-aid aspects.
Responding, Christodoulides said privatisation is expected to proceed in 2026, “barring unforeseen developments”. He added that no changes are foreseen in the CSE budget, but stressed it is important that the bill be approved within the term of the current House of Representatives.
He noted that there is ongoing communication with the European Commission’s Directorate-General for Competition, the Finance Ministry and the Commissioner for State Aid Control, that all necessary steps have been taken, and that the CSE is now awaiting their formal response.
Parliament’s role and next steps
Speaking after the committee meeting, DIKO MP Chryssis Pantelides said the CSE budget needs to be approved because the privatisation process has not yet been completed.
“It is a fact that the discussion on the stock exchange privatisation bill has not been concluded,” he said. “I am glad you ask this question because, although the bill is formally before the House of Representatives, the process is not being delayed by Parliament. It is delayed because further consultation is needed with the Commissioner for State Aid Control and the relevant directorate of the European Union.”
“All parties on the finance committee have expressed their readiness to continue and complete, as soon as possible, the adoption of this bill, which will allow the privatisation of the stock exchange at the earliest opportunity,” Pantelides added.
“In any case, it is unavoidable that a budget for 2026 is needed because privatisation will not be completed earlier. We hope it will be finalised under the current composition of the House,” he concluded.
Source: CNA