articles | 26 March 2014

Cabinet approves mechanism for decrees facilitating privatisations

The Cabinet approves a mechanism to issue executive decrees relating to the privatisation of semi-government organisations (SGOs), on the basis of a road map approved in December 2013.

Organisations to be privatised and fall within the remit of responsibility of the ministry of finance are; the Cyprus Telecommunications Authority (Cyta), the Cyprus Stock Exchange (CySE) and Cyprus Forest Industries, an official statement from the Cabinet said. It is further added that the Electricity Authority of Cyprus (EAC), the Cyprus State Fair Authority and the Pancyprian Company of Bakers falls within the remit of responsibility of the ministry of energy, commerce, industry and tourism. At the same time it noted that that “the method, extent and process of these organisations’ privatization would be determined at a later stage”.

The approval of a privatisation plan is a condition included in a Memorandum of Understanding (MoU) Cyprus signed with its international lenders in order to receive a bailout in late March 2013. On December 5, 2013 the Cabinet had approved privatisation road map aiming at securing €1.4 billion from the sell-off. The detailed programme provides for the privatisation of Cyta and the Cyprus Port Authority by the end of 2015 and the selling of the Electricity Authority by September 2017, as well as divestment in four other organisations. Workers unions are fiercely opposed to the plan.

Source: Cyprus Mail

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