MPs on Monday wrapped up discussion of a bill to privatise the Cyprus Stock Exchange, aiming to pass the legislation by the end of the month.

Established in 1993, the CSE is a public corporate body. As a semi-governmental entity, it is accountable to the state. Its annual budget is submitted to the House for approval. The CSE is also subject to audit by the auditor-general.

Plans to denationalise the CSE have found consensus among the political parties. The current government tabled the privatisation bill to parliament in June.

At the House finance committee on Monday, MPs stressed that the sale of the CSE to a “strategic investor” should be governed by qualitative criteria, ensuring that the operation thrives once it is privatised.

Legislators are concerned about this point, as the text of the bill states that the selection of the investor is based on the criterion of the bidder submitting “the highest price per share”.

MPs want to revise the wording, so that it introduces qualitative criteria in the selection process. They are now waiting on the government to table a revised bill.

The bill also stipulates that the private investor will acquire anywhere from 75 to 100 per cent of the CSE – leaving a window open for the state to have a minority stake.

The CSE has seen declining turnover over the past years. Finding a strategic investor for it is also one of the ‘milestones’ set for Cyprus’ Recovery and Resilience plan.

Almost all parties support the privatisation move. That even includes Akel, staunchly opposed to privatisations in general.

But as Akel MP Andreas Kafkalias put it, the party has waived its objection, as “the financial market is a special case.”

Small matters remain to be regulated, such as the status of the provident fund for current CSE employees. The bill provides that the employees will get transferred to the finance ministry.