Cabinet yesterday approved the issuing of six decrees to denationalise semi-governmental organisations, according to an official announcement.
“This is based on the decision taken by Cabinet on December 5,” it said. Organisations to be denationalised under the jurisdiction of the Finance Ministry include the Cyprus Telecommunications Authority, Cyprus Stock Exchange and Forestry Industries. Those under the jurisdiction of the Ministry of Energy, Commerce, Industry and Tourism are the Electricity Authority, State Fairs Authority and Pancyprian Bakeries.
“The method, extent and procedure of denationalisation of these organisations will be determined at a later stage,” the announcement said.
“Cabinet will also prepare an integrated adjustment framework that should be approved by the end of May. Relevant legislation should be drafted based on this framework and be tabled before parliament by end of December 2014,” it added.
The framework should be drafted in cooperation and coordination with the European Commission and International Monetary Fund. And then the European Central Bank and European Support Mechanism should be briefed on it. Earlier this month, parliament approved a controversial bill on privatisations that was rejected a week earlier putting the island’s international financial assistance in jeopardy.
Approval of the bill was necessary for the release of the next bailout tranche of €236 million by the Eurogroup. The bill had prompted strong protests outside parliament by semi-government unions over feared job losses. Protests were also accompanied by strikes at Cyta, the ports and electricity authority.
Ruling Disy leader Averof Neophytou has said that everyone should be able to take part in privatisation and acquire a stake in the organisations.