Cyta’s chairman hints at outside interest in loans to avoid privatisation

21 May 2013

A proposal from Cypriot semi-state companies (SGOs) to secure EUR1.4 billion (USD1.8 billion) in loans in order to avoid privatisation has caught the eye of three institutions from abroad, Cyprus Mail reported. Incumbent telco Cyta’s chairman Stathis Kittis told state broadcaster CyBC that three bodies, originating from the UK and US, were interested in the proposal, although he did not name them. According to a EUR10 billion bailout deal struck by Cyprus’ government with international lenders, the Republic should accumulate EUR1.4 billion from privatisations, with an estimated initial deposit of EUR1.0 billion, and a further EUR400 million to be secured by 2018. However, Stathis Kittis has previously stated that privatisation can be avoided, as Cyta, the Electricity Authority (EAC), and the Ports Authority (CPA) could mortgage the SGOs’ property and raise EUR1.2 billion, while funding the remainder via loans from international companies.

Cyprus, Cyprus Telecommunications Authority (Cyta)