Cyprus will set up an authority to manage state land and property, Permanent Secretary of the Ministry of the Interior Andreas Assiotis said after meeting a team of Troika technocrats on the island for the second review of the €10 billion financial assistance programme granted to Cyprus.
Assiotis gave an update on the inventory of state-owned assets, including property, a condition provided in the Memorandum of Understanding containing the terms for the bailout agreement signed with its international lenders – EU Commission, European Central Bank and IMF.
“We provided clarifications regarding the valuation of real estate belonging to the state, to semi-governmental organisations and other authorities of the broader public sector,” he said, adding that Cyprus is on track with regard to its commitments.
The MoU stipulates that the Cypriot authorities will “establish an inventory of assets, owned by central government and local authorities, including real estate and land. The inventory will include all semi-government organisations, reflecting up-to-date valuations of those with the highest commercial value by Q3-2013.” The inventory will be part of a privatisation programme aiming to gather €1.4 billion by 2018.
“The management of public property is being modernised in way that would be beneficial to the state,” he said, pointing out the need for a full inventory of land assets belonging to the state as well as to semi-governmental organisations.
He noted that land assets that have commercial value could be utilised against state obligations, adding that the authorities should identify more real estate belonging to the state apart from the well-known plot at the entrance of Nicosia, that would yield revenue to the state.
“All real estate which has commercial value should be managed in a way that would be most beneficial to the public interest and the state (financial) needs,” Assiotis said.