The Slovakian CSD will be privatised by the end of this year. The Ministry of Finance has urged the board of the CSD to outline a plan for privatisation by the end of March, after which the Ministry of Economy will put plans forward for governmental approval in May-June. Once approved, the privatisation of the CSD is expected to proceed in three stages.
First, the shares owned by the Ministry of Finance will be transferred to the portfolio of the privatisation agency, the Fund of National Property (FNP). Secondly, FNP will use the shares as an investment-in-kind in the Bratislava Stock Exchange (BSE), thereby increasing its stake in the exchange considerably. Lastly, the majority stake held by the FNP in the BSE will be offered for sale.
“Should the privatisation be completed as planned, indirect ownership of the CSD by market participants will make for more efficient control of the local market infrastructure, more intensive product development and other advantages, ” says Matej Letko of HVB Bank in Bratislava. ” Privatisation will increase the quality of the services provided by both the CSD and its members to foreign and domestic investors.”