Privatization in Cyprus

06.03.2014

Russian mass media reported that Cyprus is about to start a new wave of privatization. For example, news portal “Vesti Economika” informs that Cyprus lawmakers voted for privatization. Intention to determine the next stage of privatization before March 5 is tied with commitments to international joint creditors who insist on assets’ sale.

As Minister of finance said the privatization is a clear obligation Cyprus needs to encompass. It is expected that Cyprus’ budget will be increased by 1,4 billion euro until 2018 by means assets’ sale. The sale of important state assets can have negative influence on Cyprus’ economy. But the current governance has no choice because of bear brought by IMF, ECB and the European Commission. We all are waiting for official news from Cyprus.

Based on: http://www.vestifinance.ru/articles/40218

Expert’s opinion

Private company is always managed better and more effective than a state one. On this point, change of control over state companies to private owners seems to be attractive. Forexample, theCyprusseaports. A port in Limassol is estimated as staging area heading through Suez channel. It is expected that private owner will foster his efforts for attraction of freight traffic to Cyprus.

On the point of state the privatization is not only the clean cash to the budget but also the termination of expenditures for cumbersome and ineffective executive office.

The Cyprus actions of economy recovery undoubtedly are welcomed by businessmen of all post-Soviet region. Confirmation of this is steady increase of incorporation of new companies and opening Cyprus bank accounts

Yaroslav Lomakin ( Managing partner of Honest & Bright” company)