Studies are underway at the Ministry of Finance for important pending decisions by the state, such as the future use of some legal entities under public law, the creation of Bad Bank, the use of Blockchain technology, as well as the long-term viability of public finances in relation to retirement. .
The ministry, in order to ensure the implementation of these studies, proceeded to the purchase of services by actuaries, legal, financial advisers, programmers, as well as by other experts, at a cost of around € 2 million. But funds which were committed during the approval of the state budget in January and now their release is requested by Parliament.
Based on the data submitted to Parliament to approve the release, a study will be conducted to utilize the space of the state exhibition, in order to be a growth lever for Nicosia. Last December, the Ministry of Finance announced a tender for the purchase of services for the preparation of a General Spatial Development Plan (Master Plan), for the best utilization of the facilities of the state exhibition. The possible scenarios for the utilization of the space are the creation of an innovation zone and the creation of a business zone. The selection will be finalized after the completion of the viability study.
At the same time, the state proceeded with the purchase of services by consultants for the preparation of a study aimed at the transformation and upgrading of the CSE. The Council of Ministers decided to privatize the Stock Exchange. A project implementation team has already been set up, which is in the process of announcing a tender for the recruitment of external consultants to implement the strategic privatization option.
The evolution of KEDIPES
Another € 180 thousand will be spent on the purchase of legal services to conduct a study on the transformation of KEDIPES into a National Asset Management Company, based on the strategy for reducing non-performing loans. The studies will cover the following topics:
– Changes / modifications that should be made in the context of the operation of KEDIPES and its relationship with the Management Company (Altamira Cyprus),
– Changes / modifications of the existing commitments of the Republic in relation to the operation of KEDIPES.
– Suggestions regarding the final configuration of the Mortgage to Rent Plan in a defined portfolio, which will be implemented by KEDIPES for its own portfolio, as well as for the portfolio that will be purchased by the banks and the credit repurchase companies.
The state will hold a tender, which will be awarded in June. Also, the contract for obtaining a legal opinion on the agreements for the acquisition of real estate by SEDIPES, the acquisition of real estate by CCSRE (100% subsidiary of SEDIPES) and the acquisition of projects for the repayment of debts of Social Welfare Consultants will be extended.
Moreover, most of the money – namely the amount of € 500 thousand – will be spent on the purchase of services by experts who will conduct a study to review the legal framework governing the establishment, operation and dissolution of companies. The revision of the legal framework will result in the simplification and modernization of the existing framework, based on international standards and best practices. The services will be provided under the law on public procurement, while the award is expected in the second half of the year.
Experts will also carry out an impact study, in preparation for the National Recovery and Resilience Plan, which is necessary to enable the European Recovery and Resilience Facility to raise funds.
At the same time, external legal advisers will prepare the draft legislation for the National Blockchain Technology Strategy, in order to evaluate and take advantage of the opportunities from its use, in order to promote and use the innovation for the benefit of the economy.
In the meantime, actuaries provide services to the Insurance Companies Audit Office in connection with the examination of insurance companies' accounts, life insurance, examination of applications for licenses to new life insurance companies and for the transfer of portfolios. Specialized legal services will also be provided to create a policy framework for the Insurance Companies Audit Office.
At the same time, experts will proceed with the risk assessment and the Safety and Health Plan for the establishment of policy, emergency management teams and safety committees.
Finally, the state will proceed with the purchase of legal services for the Judicial Action Unit.