Harris Georgiades, Cyprus’ Minister of Finance, has revealed that a new state telecommunication company will be established in due course, set to operate alongside Cyprus Telecommunications Authority (Cyta), GoldNews.com.cy reports. The majority of the semi-governmental organisation’s operations will be transferred to the new state company, he explained, with a view to attracting a strategic investor or investors. According to Georgiades, Cyta employees will have the right to leave Cyta and become part of the new organisation, an option which will include an attractive incentives package.
According to TeleGeography’s GlobalComms Database, under the terms set out by the country’s final assistance package worth EUR10 billion (USD13.7 billion), struck by the government and international lenders in March 2013, Cyta and other government-owned organisations must be privatised. However, in December 2013 Cyta stated that the current business environment was not suitable for a sell-off, and instead outlined plans to ‘immediately proceed with restructuring, aimed at reducing costs’, so that the state ‘will continue to have an asset of increasing value, which can be used in the best possible way without pressure and timeframes.’ Despite that, state spokesperson Christos Stylianides revealed in the same month that the Cypriot government had approved a roadmap for the privatisation of the company, which is slated to take place in 2016.