Privatisations In Cyprus: The Beginning Of A New Era

As one of the conditions of international support following the financial crisis of spring 2013, Cyprus was required to put in place a framework for the privatisation of state-owned entities and utilities. The memorandum of understanding concluded with the providers of finance anticipating the raising of €1.4 billion by 2018 by privatising the electricity authority, the state telecommunications utility and the Cyprus ports authority, which manages the ports of Larnaca and Limassol.

After an initial Bill failed to secure the necessary support, an amended Bill was passed by the Cyprus Parliament early in March 2014. It establishes a legal framework governing the procedure for restructuring the utilities as joint stock companies and for appointing competent bodies to carry out the procedure, with a view to obtaining strategic investment from overseas. The legislation, which the Government describes as a "road-map" for privatisation, provides for unions to be represented