The privatisation of the Slovak CSD, Centralny Depozitar Cennych Papierov (CDCP), is likely to be postponed beyond the original target of the end of this year.
Although the CSD has filed its draft privatisation plans with the Ministry of Finance – which owns 100% of the CSD – the process of appointing advisers to ascertain the value of the CSD is likely to take a few months yet. The valuation is crucial because the sum will then be invested in equity of the Bratislava Stock Exchange, as the initial means of privatising the depository prior to the flotation of a minority stake. Privatisations are also controlled by the Ministry of the Economy rather than the Ministry of Finance.
“It is expected that the Ministry of the Economy will receive the project in September or October this year,” says Matej Letko, head of custody at HVB Slovakia Bank. “The project will still be subject to Cabinet approval. Once approved, the Ministry of Finances stake in the CSD will be transferred to the Fund of National Property – currently a 22% shareholder of the Stock Exchange – and used for an increase in the Stock Exchange’s equity. The FNM’s stake will then be offered for sale. A delay in the process is currently not seen as particularly dramatic, as it is the quality of the process rather than its speed which matters to market participants.”