The House Finance Committee is set to begin deliberations on Monday on a bill aimed at the privatisation of the Cyprus Stock Exchange (CSE), a key milestone in the country’s Recovery and Resilience Plan.

The bill, approved by the Council of Ministers on June 4, outlines the framework for selecting a strategic investor, transferring staff and responsibilities to the Ministry of Finance, and gradually handing over the exchange’s operations and assets.

According to the finance ministry, the privatisation is intended to revitalise the local stock market, attract investment and enhance Cyprus’ role as a regional financial hub.

The proposed legislation also includes the Central Depository and the Central Securities Registry as part of the privatisation process. It sets out the stages of the procedure, the selection method for the strategic investor, and the bodies responsible for implementation.

Staff currently employed on indefinite contracts at the CSE are expected to be either transferred to the finance ministry or compensated through a voluntary retirement scheme.

The government has described the privatisation as a long-standing political decision aimed at ensuring the stock exchange’s viability. A study commissioned by the finance ministry and conducted by an independent consultant concluded that privatisation was the most viable and beneficial path forward.

Following the study, a public tender was launched to hire specialist advisers to prepare the legislation. A public consultation took place earlier this year and included input from key state bodies such as the Cyprus Securities and Exchange Commission and the Tax Department.

The government has committed to securing a strategic investor by the end of 2025, a requirement for triggering the country’s seventh payment request under the EU’s Recovery and Resilience Facility. The move is expected to improve market liquidity, restore investor confidence, and boost competitiveness.