CSE to seek other resources
The Cyprus Stock Exchange (CSE) aims to reach agreements with other bourses to compensate for the loss of revenue due to the lack of liquidity in Cyprus and the economic crisis in Greece.
Briefing members of the House Committee on Finances about the CSE’s budget, Director General Nontas Metaxas said that the economic crisis in Greece had a negative impact on the Exchange’s revenue in the second half of 2015 and as a result the CSE recorded a deficit of EUR 600,000 in the year.
Metaxas said that the CSE is in advanced consultations with two foreign stock exchanges for agreements that would allow to institutionalise the introduction of Cypriot companies on foreign exchanges.
The CSE, he added, will be earning a share from the transactions in the titles of these Cypriot companies, a move expected to increase the liquidity in the Cyprus stock market.
Total revenue of the CSE for 2016 are estimated to reach EUR 5.8 mln, down 0.2% compared to 2015, while total expenditure is estimated at EUR 6.68 mln. The CSE budget is funded by own resources, which could reach EUR 8.9 mln at the end of the year.
Director of the Budget Directorate of the Finance Ministry, Stavros Michael, told MPs that the plans on the privatisation of the CSE is one of the government’s intentions, adding that some steps need to be taken before that.